Proposed Resolution - 3/29/2023
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Amending and Restating Loan Terms and Extending a Limited Waiver of the Loan Policy
for a Loan to the Bicycle Collective
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDED AND RESTATED TERM SHEET
AND EXTENDING A LIMITED WAIVER 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), which 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
(Board) approved resolution R-6-2022 allocating the funding and approving terms of a loan in the
amount of $1,750,000 to the 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 in
the RDA’s Granary Project Area.
WHEREAS, on October 11, 2022, in accordance with the Policy, the Board approved
resolution R-14-2022 modifying the terms of the originally approved loan to increase the amount
of the loan to $2,250,000 and waive a portion of the Policy to lock in the base interest rate of 5.66%
for six months.
WHEREAS, due to Developer’s receipt of financing through New Markets Tax Credits,
the Developer has again requested modifications to the loan terms to modify how the loan is
distributed and extend the limited waiver of the Policy to lock in the base interest rate of 5.66%
for another three months as reflected in Exhibit A: Amended and Restated Term Sheet.
WHEREAS, the RDA Finance Committee (Committee) reviewed Developer’s requested
changes to the loan terms and interest rate waiver and had no concerns.
WHEREAS, based on the Committee’s input, the RDA staff recommends the Board
approve the attached amended and restated set of terms for the loan to the Developer, as borrower,
for the Project. Additionally, the RDA staff recommends approving a limited waiver of the Policy
20
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 Amended and
Restated 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 three
months from the date of this resolution. The Board authorizes the Executive Director to negotiate
and execute the loan agreement and any other relevant documents consistent with the Amended
and Restated 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 April, 2023.
_________________________________
Alejandro Puy, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
_______________________
City Recorder
March 29, 2023
21
EXHIBIT A: AMENDED AND RESTATED LOAN TERM SHEET
APPLICANT
Bicycle Collective (“Applicant”), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
• Amount
o With New Markets Tax Credit: loan amount will be sized up to $1,400,000
o Without New Markets Tax Credit: $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 3 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 rate minus eligible interest rate
reductions.
• Term: 5 years
• Amortization: 20 years
LOAN TERM SHEET
Bicycle Collective
22
• Payments: Hard repayments with balloon payment due at the end of the term.
• Security: A first position lien on the property.
• Disbursement: With New Market Tax Credits, Loan proceeds shall be disbursed at closing.
Without New Market Tax Credits, 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.
• 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.
23