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015 of 2022 - Granary Adaptive Reuse Loan Request for Fisher BrewingREDEVELOPMENT 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 15 of 2022 11th October Ana Valdemoros (Oct 15, 2022 14:48 MDT) 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 Allison Parks (Oct 12, 2022 14:31 MDT) Oct 12, 2022 Erin Mendenhall (Oct 20, 2022 10:42 MDT) 4 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. RDA Resolution 15 of 2022 Granary Adaptive Reuse Loan Request for Fisher Brewing Final Audit Report 2022-10-21 Created:2022-10-12 By:Thais Stewart (thais.stewart@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAA-DqnwZ9s741SoQy6fySKqvqj_MirE3gi "RDA Resolution 15 of 2022 Granary Adaptive Reuse Loan Req uest for Fisher Brewing" History Document created by Thais Stewart (thais.stewart@slcgov.com) 2022-10-12 - 8:03:22 PM GMT Document emailed to Allison Parks (allison.parks@slcgov.com) for signature 2022-10-12 - 8:05:57 PM GMT Email viewed by Allison Parks (allison.parks@slcgov.com) 2022-10-12 - 8:30:38 PM GMT Document e-signed by Allison Parks (allison.parks@slcgov.com) Signature Date: 2022-10-12 - 8:31:04 PM GMT - Time Source: server Document emailed to ana.valdemoros@slcgov.com for signature 2022-10-12 - 8:31:06 PM GMT Email viewed by ana.valdemoros@slcgov.com 2022-10-13 - 2:02:08 AM GMT Email viewed by ana.valdemoros@slcgov.com 2022-10-15 - 0:17:57 AM GMT Signer ana.valdemoros@slcgov.com entered name at signing as Ana Valdemoros 2022-10-15 - 8:48:41 PM GMT Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com) Signature Date: 2022-10-15 - 8:48:43 PM GMT - Time Source: server Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature 2022-10-15 - 8:48:45 PM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2022-10-16 - 3:45:42 AM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2022-10-18 - 4:23:24 AM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2022-10-20 - 5:06:34 AM GMT Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com) Signature Date: 2022-10-20 - 4:42:27 PM GMT - Time Source: server Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2022-10-20 - 4:42:29 PM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2022-10-21 - 9:22:43 PM GMT - Time Source: server Agreement completed. 2022-10-21 - 9:22:43 PM GMT