Transmittal - 12/8/2022
DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
LORENA RIFFO JENSON
DIRECTOR
CITY COUNCIL TRANSMITTAL
_______________________ Date Received: ___________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________
__________________________________________________________________
TO: Salt Lake City Council DATE: December 8, 2022
Dan Dugan, Chair
FROM: Lorena Riffo-Jenson, Director, Department of Economic Development
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Forty Three
Bakery/Streusel LLC
STAFF CONTACTS:
Roberta Reichgelt, Business Development Director, Roberta.reichgelt@slcgov.com
Peter Makowski, Project Manager, peter.makowski@slcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION: The EDLF Loan Committee recommends approval of $100,000
loan to Forty Three Bakery/Streusel LLC.
BUDGET IMPACT: $100,000 from the Economic Development Loan Fund
BACKGROUND/DISCUSSION: On November 10, 2022, a loan request from Forty Three
Bakery/Streusel LLC was presented to the EDLF Loan Committee for review and discussion. The
Loan Committee voted to recommend the loan for City Council consideration. Forty Three Bakery
is a retail and wholesale bakery and café.
Basic Loan request
Business Name: Forty Three Bakery/Streusel LLC
Address: 713 Genesee Ave, Salt Lake City, Utah 84104
Loan Amount Requested: $100,000
Loan Term: 7 years
Interest Rate: 8.75%
Use of Funds: Construction
Loan Type: Expansion
Reasoning behind staff recommendation
Lisa Shaffer (Dec 8, 2022 13:35 MST)
12/08/2022
12/08/2022
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. The
loan applicant goes through these processes, then the loan is reviewed by the Loan Committee
members. Upon the thorough review of the Loan Committee members, the Loan Committee votes
whether to make a recommendation to the City Council. If so, the loan is transmitted to the
Council for final approval. Because the Loan Committee review process must adhere to the Utah
Open and Public Meetings Act (OPMA), 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 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.
1. Increasing employment opportunities
2. Stimulating business development
3. Encouraging private investment
4. Enhancing neighborhood vitality and
5. Boosting commercial enterprise
This loan will assist in the creation of 20 new jobs in the next year and retention of 7 current jobs.
This loan was recommended by the EDLF Committee to the City Council for approval.
EDLF Loan Balances
1. As reported from The Finance Department on November 17, 2022, the EDLF
available fund balance: $7,342,260.20
2. The amount of outstanding loans total is: $3,684,186.81
EDLF Loan Committee
There are 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
Community Volunteers:
6. Business Advisory Board (BAB) member
7. Banker
8. Community lender
9. Business mentor
Attachments: Ordinance and Terms Sheet
SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving a $100,000 loan for Forty Three Bakery/Streusel LLC., at 713 Genesee
Avenue 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, the 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 $100,000 loan to Forty Three Bakery/Streusel LLC a local
business located at 713 Genesee Avenue.
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
December 6, 2022
LOAN TERM SHEET
Applicant: Forty Three Bakery/Streusel LLC
Address: 713 Genesee Avenue, Salt Lake City, Utah 84104
Proposed Loan Terms
Loan Amount: $100,000
Loan Term: 7 Years
Interest Rate Calculation Prime Interest Rate: 4.75% (at the time of application on 7/20/2022)
EDLF Charge: 8%
Less Discount: 4%
• Priority Area – 9th South from East Side to West Side
Final Interest Rate: 8.75%
Use of Funds : Construction
Business Type: Food and Beverage
Collateral and Guarantees: Equipment, Inventory, Personal Property, Vehicle
Personal Guarantees: Andrew Corrao - Owner
Conditions for Closing: Obtain all City approvals, execute all loan documents as deemed necessary by
City legal counsel and DED staff, such other terms as recommended by City legal counsel and DED staff