Transmittal - 10/14/2022DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
LORENA RIFFO-JENSON
INTERIM DIRECTOR
CITY COUNCIL TRANSMITTAL
_______________________ Date Received: ___________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________
__________________________________________________________________
TO: Salt Lake City Council DATE: October 12, 2022
Dan D ugan, Chair
FROM: Lorena Riffo-Jenson, Interim Director, Department of Economic Development
SUB JECT: Economic Development Revolving Loan Fund (EDLF) – Core Image Investments,
LLC – Club Verse
STA FF CONTACTS:
Roberta Reichgelt, Business Development Director, Roberta.reichgelt@slcgov.com
William Wright Project Manager, William.wright@slcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION : The EDLF Loan Committee recommends approval of $250,000
loan to Core Image Investments, LLC – Club Verse.
BUD GET IMPACT: $250,000 from the Economic Development Loan Fund
BACKGROUND/DISCUSSION: On September 29, 2022, a loan request from Core Image
Investments, LLC – Club Verse was presented to the EDLF Loan Committee for review and
discussion. Core Image Investments, LLC – Club Verse is a welcoming and inclusive night club,
coffee shop, and meeting space for the queer and ally communities.
Although Club Verse is a start-up, the loan committee may approve exceptions to the $100,000
limit for start-ups if the personal guarantors, ownership, or equivalent, have experience in a
comparable industry that exceeds three years. Club Verse’ ownership and core management have
nearly 100 years of experience operating bars, night clubs, and similar businesses. The Loan
Committee voted unanimously to approve Club Verse as an existing business exception.
Basic Loan request
Business Name: Core Image Investments, LLC – Club Verse
Address: 609 S State Street
Loan Amount Requested: $250,000
Loan Term: 7 years
Lisa Shaffer (Oct 14, 2022 11:26 MDT)10/14/2022
10/14/2022
Interest Rate: 7.25%
Use of Funds: Building Renovation
Loan Type: Start up
Reasoning behind staff recommendation
Applicants of The Economic Development Loan Fund (EDLF) go through a thorough application
process consisting of a pre-screening, underwriting analysis and economic impact statement. Only
after the loan applicant goes through these processes is the application recommended to be
reviewed by the Loan Committee members. Upon the thorough review by the Loan Committee
members a recommendation is made before the loan is transmitted to the Mayor for Council to
receive the recommendation for final approval. Because the Loan Committee review process must
adhere to the Utah Open and Public Meetings Act, DED’s staff has worked closely with the City
Attorney’s Office to ensure that applicants’ information is protected and at the same time the
public process is followed.
In addition, the EDLF loans must meet the following goals of the Economic Development Loan
Fund as stated in the EDLF program guidelines. This loan meets the EDLF program guidelines in
the following areas.
•Increase employment opportunities
•Stimulate business development and expansion
•Encourage private investment
•Promote economic development
•Enhance neighborhood vitality
•Boost commercial enterprise
T his loan will assist in the creation of 45 new jobs in the next year and retention of 3 current jobs.
T his loan was recommended by the EDLF Committee to the City Council for approval.
EDLF Loan Balances
1.As reported from The Finance Department on August 31, 2022, the EDLF
available fund balance is $8,658,332.15
2.The amount of outstanding loans total is $3,775,135.90 as of September 30,
2022
EDLF Loan Committee
There is a total of nine (9) EDLF Committee members.
City Employees:
1.Community and Neighborhoods Finance
2.Mayor’s Office
3.Employee at large
4.Housing Stability
5.Economic Development
C ommunity Volunteers:
6.Business Advisory Board (BAB) member
7.Banker
8.Community lender
9.Business mentor
Attachments: Ordinance and Terms Sheet
LOAN TERM SHEET
Applicant : Core Image Investments, LLC - Club Verse
Address : 609 S State Street
Proposed Loan Terms
Loan Amount: $250,000
Loan Terms: 7 Years
Interest Rate Calculation Prime Interest Rate: 3.25% (at the time of application on January 1,
2022).
EDLF Charge: 8%
Less Discount: 4%
•Priority Area State Street corridor
Final Interest Rate: 7.25%
Use of Funds: Machinery, Equipment, Furniture a nd Fixtures
Bu sine ss T ype: Expan sion
Collateral: Residential Real Estate, Personal Property, Equipment, Inventory
Personal Guarantees: Riley Richter, Micheal Repp
Conditions for Closing : Obtain all Cit y approvals, execute a ll loan documents a s deemed necessary by
City legal counsel a nd DED staff, such other terms as recommended by City legal counsel a nd DED staff
SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving a $2 50,000 loan to Core Image Investments, LLC - Club Verse, at 609 S
State Street from the Economic Development Loan Fund)
WHEREAS, Salt Lake City Corporation’s (“City”) Economic Development Loan Fund
(“EDLF) is a program to stimulate local business development, encourage private investment,
enhance neighborhood vitality, and boost commercial enterprise in Salt Lake City.
WHEREAS, th e EDLF is administered by the Department of Economic Development
(“DED”) and loan applications are first prescreened by DED staff, and then reviewed by the
EDLF Loan Committee.
WHEREAS, the EDLF Loan Committee and DED staff recommend the approval of the
attached loan term sheet for a $2 50,000 loan to Core Image Investments, LLC - Club Verse, a
local business located at 609 S State Street.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah, that:
SECTION 1. Loan Approval. The City Council approves the loan outlined in the Term
Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations
of the City hereunder. The City Council authorizes the Mayor to negotiate and execute the loan
agreement and any other relevant documents consistent with the Term Sheet, and incorporating
such other terms and agreements as recommended by the City Attorney’s office.
SECTION 2. Effective Date. This ordinance shall become effective on the date of its first
publication.
Passed by the City Council of Salt Lake City, Utah, this ______ day of
_____________________, 2022.
Dan Dugan, Council Chair
ATTEST AND COUNTERSIGN:
______________________________
CITY RECORDER
Transmitted to Mayor on _______________________.
Mayor's Action: _______Approved. _______Vetoed.
______________________________
MAYOR
______________________________
CITY RECORDER
(SEAL)
Bill No. ________ of 2022.
Published: ______________.
APPROVED AS TO FORM
Salt Lake City Attorney’s Office
Date:
Sara Montoya, City Attorney
October 12, 2022