HomeMy WebLinkAboutProposed Ordinance - 5/8/2023SALT LAKE CITY ORDINANCE
No. of 2023
(Ordinance approving a $100,000 loan for Salt Lake Sandwich Company, Inc., at 1408 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, 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 Salt Lake Sandwich Company, Inc., a
local business located at 1408 West Arapahoe 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 27, 2023
�'c�
Sara Montoya, City kttorney
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
and DED staff, such other terms as recommended by City legal counsel and DED staff.