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HomeMy WebLinkAboutTransmittal - 4/19/2023Yt ERINMENDENHALL MAYOR DEPARTMENT of ECONOMIC DEVELOPMENT CITY COUNCIL TRANSMITTAL *14 Lisa Shaffer, Chief Administrative Officer LORENA RIFFO JENSON DIRECTOR Date Received: 04/19/2023 Date sent to Council: 04/19/2023 TO: Salt Lake City Council DATE: April 18, 2023 Darin Mano, Chair FROM: Lorena Riffo-Jenson, Director, Department of Economic Development SUBJECT: Economic Development Revolving Loan Fund (EDLF) — Trackland, LLC STAFF CONTACTS: Roberta Reichgelt, Business Development Director, Roberta. reichgelt P slcgov. co m Will Wright, Project Manager, William.wrightpslcgov.ccom DOCUMENT TYPE: Loan Approval RECOMMENDATION: The EDLF Loan Committee recommends approval of a $350,000 loan to Trackland, LLC. BUDGET IMPACT: $350,000 from the Economic Development Loan Fund BACKGROUND/DISCUSSION: On April 13, 2023, a loan request from Trackland, LLC was presented to the EDLF Loan Committee for review and discussion. Trackland, LLC is a Sugar House based software as a service (SaaS) company that is an add on to Salesforce that improves its function. Basic Loan request Business Name: Trackland, LLC Address: 2117 Wilson Avenue Loan Amount Requested: $350,000 Loan Term: 7 years Interest Rate: 11.0 Use of Funds: Working Capital, Hiring Loan Type: Expansion 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, the loan is recommended to be reviewed by the Loan Committee members. Upon the thorough reviewof the Loan Committee members then 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 Open 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, and • Boost commercial enterprise, • While maintaining the corpus of the EDLF in a sufficient manner to perpetuate the goals of the program. This loan will assist in the creation of 20 new jobs in the next year and retention of 8 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 April 17, 2023, the EDLF available fund balance is: $8,706,947• 2. The amount of outstanding loans total as of March 31, 2023, is: $3,761,588.80. 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 Community Volunteers: 6. Business Advisory Board (BAB) member 7. Banker 8. Community lender 9. Business mentor Attachments: Terms Sheet and Resolution SALT LAKE CITY ORDINANCE No. of 2023 (Ordinance approving a $350,000loan for Trackland, LLC., at 2117 East Wilson 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 $350,000 loan to Trackland, LLC., a local business located at 2117 East Wilson 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 2023. Darin Mano, Council Chair ATTEST AND COUNTERSIGN: CITY RECORDER Transmitted to Mayor on Mayor's Action: Approved. _______Vetoed. MAYOR CITY RECORDER (SEAL) Bill No. of 2023. Published: APPROVED AS TO FORM Salt Lake City Attorney's Office Date: April 17, 2023 tea& Sara Montoya, City Xttorney LOAN TERM SHEET Applicant: Trackland, LLC Address: 2117 E Wilson Ave Proposed Loan Terms Loan Amount: $3S0,000 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 7.00% (at the time of application on December 6, 2022) EDLF Charge: 4% Less Discount: 0% Interest Rate: 11.00% Use of Funds: Working Capital, Hiring, Marketing Business Type: Expansion Collateral and Guarantees: Residential Real Estate, Personal Property Personal Guarantees: David Spencer Rose 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.