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HomeMy WebLinkAboutTransmittal - 11/6/2023ERIN MENDENHALL MAYOR LORENA RIFFO JENSON DIRECTOR DEPARTMENT of ECONOMIC DEVELOPMENT Rachel Otto, Chief of Staff CITY COUNCIL TRANSMITTAL Date Received: ii-o6-2023 Date sent to Council: 11-o6-2023 TO: Salt Lake City Council DATE: October 31, 2023 Darin Mano, Chair FROM: Lorena Riffo-Jenson, Director, Department of Economic Development SUBJECT: Economic Development Loan Fund (EDLF) — Ocean City Seafood Market STAFF CONTACTS: Roberta Reichgelt, Business Development Director, Roberta. reichgeltpslcgov.com Will Wright, Project Manager, William.wright@slcgov.com DOCUMENT TYPE: Loan Approval RECOMMENDATION: The EDLF Loan Committee recommends approval of a $9o,000 loan to Ocean City Seafood Market. BUDGET IMPACT: $9o,000 from the Economic Development Loan Fund BACKGROUND/DISCUSSION: On October 26, 2023, aloan request from Ocean City Seafood Market was presented to the EDLF Loan Committee for review and discussion. Ocean City Seafood Market is a local grocer specializing in Asian foods, international foods, and seafood. Basic Loan request Business Name: Ocean Citv Seafood Market Address: 1701 South State Street Loan Amount Requested: $Ao,000 Loan Term: 7 years Interest Rate: A.25% Use of Funds: Solar array and working capital Loan Type: (start-up/expansion) Expansion Council District: District s 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. Only after the loan applicant goes through these processes, is the loan recommended to be reviewed by the Loan Committee members. Upon thorough review of the Loan Committee members a recommendation is made before the loan is transmitted to the Mayor for Council to receive the recommendation for final approval. Because the Loan Committee review process must adhere to the Open Meetings Act, 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. • Increase employment opportunities, • Stimulate business development and expansion, • Encourage private investment, • Promote economic development, • Enhance neighborhood vitality, and • Boost commercial enterprise. This loan will assist in the creation of 1 new job in the next year and retention of 3 current jobs. 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 is: $8,691,138 2. The amount of outstanding loans total is: $4,486,389.08. EDLF Loan Committee There is 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 Community lender Business mentor Attachments: Terms Sheet and Ordinance SALT LAKE CITY ORDINANCE No. of 2023 (Ordinance approving a $90,000 loan for Ocean City SeafoodMarket, at 1701 South State Street 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 $90,000 loan to Ocean City Seafood Market, a local business located at 1701 South State Street. 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: October 31, 2023 1�7a4,1_1 Sara Montoya, City Kttorney LOAN TERM SHEET Applicant: Ocean City Seafood Market Address: 1701 South State Street Proposed Loan Terms Loan Amount: $90,000 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 8.25% (at the time of application on June 12, 2023) EDLF Charge: 4% Less Discount: 1% for each • Priority Area (State Street RDA Project Area) • SEDI socioeconomically disadvantaged individual business owner • Sustainability Project 65% of loan funds for solar array Interest Rate: 9.25% Use of Funds: Solar Array and Working Capital Business Type: Existing Collateral and Guarantees: Solar Array Personal Guarantees: Hellen Chong 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.