Council Provided Information - 3/29/2023REDEVELOPMENT AGENCY OF SLC
BICYCLE COLLECTIVE –901 S GALE STREET
LOAN AMENDMENT
RDA BOARD OF DIRECTORS MEETING –APRIL 11, 2023
PROJECT OVERVIEW
APPLICANT
•Bicycle Collective
PROJECT DETAILS
•Located at approximately 901 S Gale Street
•RDA-owned land in Granary District
•15,000 square foot multi-use building that
will house headquarters of the organization
including retail, programming, and
operations space
•9 Line trail adjacent to site
PROJECT OVERVIEW
PROJECT OVERVIEW
BACKGROUND
•In 2017, through RFP, RDA selected Bicycle Collective to negotiate the
development of the property.
•In 2018, the RDA Board approved a land write down for the property in
exchange for public benefits.
•In May 2022, RDA Board approved $1,750,000 loan to Bicycle Collective.
•In October 2022, RDA Board approved an increased loan amount
totaling $2,250,000 and 6-month lock on base interest rate.
PROJECT OVERVIEW
SINCE OCTOBER BOARD MEETING
•Property conveyed to Bicycle Collective
•Construction began January 2023
•While working on closing on RDA loan, opportunity for the New Markets
Tax Credit became available
REQUEST (AMENDMENT TO LOAN TERMS)
•Disburse loan funds at closing
•Temporarily extend lock in base interest rate
TIMELINE
•Bicycle Collective must close on New Markets Tax Credit by May 2023
•Construction anticipated to be complete Q3 2023
PROPOSED TERMS
AMOUNT
• With New Markets Tax Credit, up to $1,400,000
INTEREST RATE
*The applicant is proposing to extend the lock in this base interest rate
TERM/AMORTIZATION
• 5 years/20 years
DISBURSEMENT
• With New Markets Tax Credit, loan proceeds shall be disbursed at closing
COLLATERAL
•First-position lien
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%
CONSIDERATIONS
•The addition of New Markets Tax Credit will provide ~$1,000,000 in equity
and will reduce amount needed through RDA loan (~$1,400,000)
•Bicycle Collective will carry less debt
•RDA will have a lien on the property if they are unable to pay back the loan
•Finance Committee reviewed the request and had no concerns