Transmittal - 7/18/2023DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
LORENA RIFFO JENSON
DIRECTOR
CITY COUNCIL TRANSMITTAL
_______________________ Date Received: 7/18/2023
Lisa Shaffer, Chief Administrative Officer Date sent to Council: 7/18/2023
__________________________________________________________________
TO:Salt Lake City Council DATE: July 14, 2023
Darin Mano, Chair
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.makowski@slcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION: The EDLF Loan Committee recommends approval of $100,000
loan to Leavity LLC.
BUDGET IMPACT:$100,000 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 Requested: $100,000
Loan Term: 7 years
Interest Rate: 10.5%
Use of Funds: Equipment
Loan Type: 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
Lisa Shaffer (Jul 18, 2023 15:28 MDT)
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)
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 1 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.
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
July 13, 2023
LOAN TERM SHEET
Applicant: Leavity LLC
Address: 47 S Orange St., #B1, 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