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Proposed Ordinance - 5/8/2023SALT LAKE CITY ORDINANCE No. _____ of 2023 (Ordinance approving a $10 0,000 loan for Salt Lake Sandwich Company, In c., at 1 408 W. Arapahoe Ave. 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, th e 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 Salt Lake Sandwich Company, Inc., a local business located at 1408 West Arapahoe Avenue. NOW, THEREFORE, b e it ordained b y th e City Co uncil of Salt Lake City, Utah, th at: SECTION 1 . Loan Approval. The City Council approves the loan outlined in the Term Sheet attached h ereto, subject to revisions th at do n ot materially a ffec t 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 of fice. SECTION 2 . Effective Date. This o rdinance shall become e ffective o n th e d ate o f 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: Sara Montoya, City Attorney April 27, 2023 LOAN TERM SHEET Applicant : Salt Lake Sandwich Company, LLC Address : 1408 W Arapahoe Ave. Proposed Loan Terms Loan Amount: $100,000 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 6.25% (at the time of application on October 25, 2022 EDLF Charge: 4% Less Discount: 1% for each •Socially and Economically Disadvantaged Individual (SEDI) •Priority area: Poplar Grove Interest Rate: 8.25% Use of Funds : Food Truck, Equipment, Working Capital Business Type: Start up. Collateral and Guarantees: Real Estate, Equipment Personal Guarantees: Michelle Drawn Conditions for Closing •Salt Lake City Business License, Commissary Kitchen Agreement in Poplar Grove, or other priority area. •Obtain all City approvals, execute all loan documents as deemed necessary by City legal counsel a nd DED staff, such other terms as recommended by City legal counsel and DED staff.