014 of 2022 - Bicycle Collective LoanREDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. -------
Amending Loan Terms and Approving an Exception to the Loan Policy
for a Loan to Bicycle Collective
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDED TERM SHEET AND AN EXCEPTION
TO THE LOAN POLICY FOR A LOAN TO THE BICYCLE COLLECTIVE FOR A
COMMERCIAL DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 901
SOUTH GALE STREET
WHEREAS, the Redevelopment Agency of Salt Lake City ("RDA") was created to
transact the business and exercise the powers provided for in the Utah Community Reinvestment
Agency Act.
WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas that it manages in accordance with the RDA Loan Program Policy
("Policy").
WHEREAS, the Policy provides that the base interest rate for loans will be set at the
closing of the loan.
WHEREAS, on May 10, 2022, in accordance with the Policy, the RDA Board of Directors
(the "Board") approved resolution R-6-2022 allocating the funding and approving terms of a loan
in the amount of $1,750,000 to Bicycle Collective, a Utah nonprofit entity (the "Developer"), in
connection with the a commercial development to house its headquarters (the "Project") on the
property consisting of approximately 0.26 acres located at approximately 901 South Gale Street.
WHEREAS, the Developer has requested to increase the loan amount to $2,250,000 and
requested an exception to the Policy to set the base interest rate as the rate of 5.66% as reflected
in Exhibit A: Term Sheet.
WHEREAS, on September 21, 2022, the RDA Finance Committee ("Committee")
reviewed Developer's requested changes to the loan terms and interest rate exception.
WHEREAS, based on the Committee's recommendations, the RDA staff recommends the
Board approve the attached amended set of terms (the "Term Sheet") for the loan to the Developer,
as borrower, for the Project. Additionally, the RDA staff recommends approving an exception to
the Policy to set the base interest rate at the rate stated in the Term Sheet and such exception shall
be valid for six months from the date of this resolution.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City that it approves the loan outlined in the Term Sheet
attached hereto, subject to revisions that do not materially affect the rights and obligations of the
RDA hereunder. The Board authorizes the waiver of the Policy to set the base interest rate at the
rate stated on the Term Sheet, which waiver shall be valid for six months from the date of this
14 of 2022
resolution. The Board authorizes the Executive Director 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.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
__ day of October, 2022.
Ana Valdemoros, Chair
Approved as to form: --'�,,._=----_ ____,_,:::.._ _________ _Salt Lake City Attorney's Office
Allison Parks
Date: September 23, 2022
The Executive Director:
__ does not request reconsideration
__ requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
11th
Allison Parks (Oct 12, 2022 14:29 MDT)
Oct 12, 2022
Ana Valdemoros (Oct 15, 2022 14:42 MDT)
Erin Mendenhall (Oct 20, 2022 10:42 MDT)
4
EXHIBIT A: LOAN TERM SHEET
APPLICANT
Bicycle Collective (“Applicant”), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
Amount: $2,250,000
Eligible Uses: Construction costs
Interest Rate:
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
Public Amenities**
Transit Alternatives***
Architecture and Urban Design****
Sustainability*****
0.5%
0.5%
0.5%
0.5%
Final Interest Rate****** 3.66%
RDA staff will confirm the Project qualifies for the applicable interest rate reductions. Any changes to the
project could result in changes to the interest rate reductions:
Base interest rate shall be locked at this 5.66%, as opposed to the rate at closing. This rate is based on the
U.S. Treasury Yield Curve Rate, as determined by the term of the loan, and shall be valid for 6 months.
To be eligible for this interest rate reduction, the project will include a public art amenity
To be eligible for this interest rate reduction, the project will be required to provide employee shower,
locker, and bicycle facilities as part of their overall development.
The project participated and received approval through an RDA Design Review process.
The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
The final interest rate will be based on 5.66% base interest minus eligible interest rate reductions.
Term: 5 years
Amortization: 20 years
Payments: Hard repayments with balloon payment due at the end of the term.
Security: A first position lien on the property.
Disbursement: Loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
RDA approves all terms of the loan.
LOAN TERM SHEET
Bicycle Collective -RDA LOAN
RDA LOAN PROGRAM
Obtain all required City approvals.
Execute loan documents (e.g. promissory notes, loan agreements, security documents, and
guarantees) as deemed necessary by the RDA and its legal counsel.
Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of
the loan, and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property.
Such other terms as recommended by the RDA’s legal counsel and staff.
OTHER CONDITIONS
The Project shall operate as the intended use over the term.
The Project shall remain in good financial and legal standing over the term.
RDA Resolution 14 of 2022 Bicycle Collective
Loan
Final Audit Report 2022-10-21
Created:2022-10-12
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAtuIiNAmttHfZBArPEuzON5A1rUPddWBM
"RDA Resolution 14 of 2022 Bicycle Collective Loan" History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2022-10-12 - 8:00:03 PM GMT
Document emailed to Allison Parks (allison.parks@slcgov.com) for signature
2022-10-12 - 8:02:15 PM GMT
Email viewed by Allison Parks (allison.parks@slcgov.com)
2022-10-12 - 8:29:42 PM GMT
Document e-signed by Allison Parks (allison.parks@slcgov.com)
Signature Date: 2022-10-12 - 8:29:56 PM GMT - Time Source: server
Document emailed to ana.valdemoros@slcgov.com for signature
2022-10-12 - 8:29:58 PM GMT
Email viewed by ana.valdemoros@slcgov.com
2022-10-13 - 2:02:07 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 - 8:42:38 PM GMT
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2022-10-15 - 8:42:40 PM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2022-10-15 - 8:42:41 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-10-16 - 3:45:41 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-10-18 - 4:23:25 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-10-19 - 4:38:44 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 - 4:42:42 PM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2022-10-20 - 4:42:44 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2022-10-21 - 9:22:06 PM GMT - Time Source: server
Agreement completed.
2022-10-21 - 9:22:06 PM GMT