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Proposed Resolution - 9/23/2022Attachment B: Fisher Brewing 2022 Term Sheet & Resolution REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Loan to Fisher Brewing Company, LLC RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO FISHER BREWING COMPANY, LLC FOR A GRANARY DISTRICT ADAPTIVE REUSE PROJECT LOCATED AT APPROXIMATELY 316 WEST 800 SOUTH WHEREAS, the Redevelopment Agency’s (RDA’s) Board of Directors (Board) adopted the Granary District Adaptive Reuse Program Policy, Resolution 8-2017, to encourage the adaptive reuse of existing buildings in the Granary District Project Area by reducing the economic impact of building code requirements. WHEREAS, Fisher Brewing Company, LLC, a local brewery located in the Granary District Project Area (the Developer), is repurposing two underutilized buildings located adjacent to their current facility. These repurposed spaces will be turned into new brewery and taproom space (the Project). WHEREAS, the Developer has applied for a loan under the Granary District Adaptive Reuse Program Policy to assist with the Project. WHEREAS, on July 20, 2022, the RDA Finance Committee reviewed the loan application and provided a positive recommendation for the attached set of terms (Term Sheet). WHEREAS, the RDA staff recommends approval of the loan to the Developer outlined in the Term Sheet for the Project. NOW, THEREFORE, BE IT RESOLVED by the Board that it approves the loan outlined in the Term Sheet attached to this resolution, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. The Board authorizes the Executive Director to negotiate and execute the loan agreement and any other relevant documents consistent with the Term Sheet, and incorporate such other terms and agreements as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day of , 2022. _________________________________ Ana Valdemoros, Chair The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Approved as to form: __________________________________ Salt Lake City Attorney’s Office Attest: ________________________ City Recorder EXHIBIT A: APPROVED LOAN TERM SHEET Fisher Brewing Company, LLC BORROWER Fisher Brewing Company, LLC PROPERTY Approximately 316 West 800 South PROJECT DESCRIPTION The Project is an expansion of the existing Fisher Brewing location into two underutilized buildings located adjacent to their current facility. The expansion will repurpose these adjacent buildings into approximately 3,740 square feet of new tavern space and approximately 2,600 square feet of new brewing area. The Project will also add 1,090 square feet of outdoor dining area. PROPOSED LOAN TERMS • Amount: $136,962 • Interest Rate: 0%, if all Conditions of the Loan (defined below) are met • Term: 5 years, commencing on execution of the loan documents • Amortization Period: N/A • Repayment: No payments if all Conditions of the Loan are met • Disbursement: Loan proceeds shall be disbursed in one lump sum at closing • Loan Forgiveness: Principal shall be forgiven in equal annual installments over the Term if all Conditions of the Loan are met • Default Rate: If the Project fails to meet Conditions of the Loan during the Term, Developer may be required to repay all or a portion of the loan as detailed in the loan agreement. Interest shall be due on the portion deemed to be repaid, accrued as of the date funds were dispersed, at a default interest rate of 14%. CONDITIONS OF THE LOAN • The loan funds shall be used for eligible costs only. Eligible costs are defined in Section 3.2 the Granary District Adaptive Reuse Loan Program Policy, R-8-2017. • The Project shall be completed as intended within the Term. • The Project shall operate as intended (neighborhood commercial) over the Term. • The Project shall remain in good financial and legal standing over the Term. COLLATERAL AND GUARANTEES • Security: the loan shall be secured by unconditional personal payment guarantees from the owners of Fisher Brewery Company, LLC: Tim Dwyer, Steven Brown, Thomas Riemondy, and Kevin Frazier. CONDITIONS FOR LOAN CLOSING Prior to loan closing, the Developer and RDA will complete the following: • Developer will secure and provide RDA evidence of sufficient sources of Project financing. Sources of financing must equal the total Project cost. • Developer will secure and provide RDA evidence of sufficient sources of matching Project financing by other investments at the ratio of 1:12, as required by Section 4.2 of the Granary District Adaptive Reuse Loan Program Policy, R-8-2017. • Developer must obtain all required City approvals. • Developer will provide evidence of insurance in such amounts and with such coverage as deemed necessary by the RDA for the Project. • Developer and RDA will execute loan documents (e.g. promissory notes, guarantees, loan agreements, security documents) as deemed necessary by the RDA and its legal counsel. • Such other terms as recommended by the RDA’s legal counsel and staff.