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HomeMy WebLinkAboutProposed Ordinance - 7/18/2023SALT 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