HomeMy WebLinkAboutTransmittal - 7/18/2023ERIN MENDENHALL
MAYOR
DEPARTMENT of ECONOMIC DEVELOPMENT
CITY COUNCIL TRANSMITTAL
Lis r(Ju 118, 202315:28 MDT)
Lisa Shaffer, Chief Administrative Officer
TO: Salt Lake City Council
Darin Mano, Chair
LORENA RIFFO JENSON
DIRECTOR
Date Received: 7/18/2023
Date sent to Council: 7/18/2023
DATE: July 14, 2023
FROM: Jacob Maxwell, Deputy Director, Department of Economic Development
SUBJECT: Economic Development Revolving Loan Fund (EDLF) — Leavity LLC
STAFF CONTACTS:
Roberta Reichgelt, Business Development Director, Roberta.reichgelt(&slcgov.com
Peter Makowski, Project Manager, peter. makowskiPslcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION: The EDLF Loan Committee recommends approval of $1oo,000
loan to Leavity LLC.
BUDGET IMPACT: $1oo,000 from the Economic Development Loan Fund
BACKGROUND/DISCUSSION: On June 8, 2023, a loan request from Leavity LLC was
presented to the EDLF Loan Committee for review and discussion. The Loan Committee voted to
recommend the loan for City Council consideration. Leavity is a wholesale sourdough bread
bakery.
Basic Loan request
Business Name: Leavity LLC
Address: 47 S. Orange St, #B1, Salt Lake City, Utah 84116
Loan Amount Amount Requested: $1oo,000
Loan Term: 7 years
Interest Rate: 10.5%
Use of Funds: Equipment
Loan Tie: Start up
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. The
loan applicant goes through these processes, then the loan is reviewed by the Loan Committee
members. Upon the thorough review of the Loan Committee members, the Loan Committee votes
whether to make a recommendation to the City Council. If so, the loan is transmitted to the
Council for final approval. Because the Loan Committee review process must adhere to the Utah
Open and Public Meetings Act (OPMA), 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 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.
1. Increasing employment opportunities
2. Stimulating business development
3. Encouraging private investment
4. Enhancing neighborhood vitality and
5. Boosting commercial enterprise
This loan will assist in the creation of i new job in the next year and retention of 1 current job.
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 June 30, 2023, the EDLF
available fund balance: $8,691,138
2. The amount of outstanding loans total is: $2,256,763.51
EDLF Loan Committee
There are 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: Ordinance and Terms Sheet
SALT LAKE CITY ORDINANCE
No. of 2023
(Ordinance approving a $100,000 loan for Leavity LLC., at 47 S. Orange St., #131 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 Leavity LLC, a local business located at 47 S.
Orange St., #B 1.
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: July 13, 2023
1:ya4lal
Sara Montoya, City Attorney
LOAN TERM SHEET
Applicant: Leavity LLC
Address: 47 S Orange St., #131, Salt Lake City, Utah 84116
Proposed Loan Terms
Loan Amount: $100,000
Loan Term: 7 Years
Interest Rate Calculation Prime Interest Rate: 7.50% (at the time of application on 1/6/2023)
EDLF Charge: 4%
Less Discount: 1%
• Priority Area - West of I-15
Final Interest Rate: 10.50%
Use of Funds: Equipment, Working Capital
Business Type: Food and Beverage
Collateral and Guarantees: Equipment
Personal Guarantees: Todd Bradley - Owner
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