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Proposed Ordinance - 12/19/2023SALT LAKE CITY ORDINANCE No. _____ of 2023 (Ordinance approving a $100,000 loan for Eats LLC, d/b/a Eats Bakery, at 159 West Broadway Suite #200 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 Eats LLC, d/b/a Eats Bakery, a local business located at 159 West Broadway Street Suite #200. 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: December 15, 2023 Sara Montoya, City Attorney LOAN TERM SHEET Applicant: Eats LLC, d/b/a Eats Bakery Address: 159 West Broadway Suite #200 Proposed Loan Terms Loan Amount: $100,000 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 7.75% (at the time of application on March 3, 2023) EDLF Charge: 4% Less 4% Discount: (1% for each) •SEDI Business Owner •E2 Business •Low/Moderate Income Business Owner •Priority Area Final Interest Rate: 7.75% Use of Funds: Food Trailer, Build Out, Equipment, Contingency, Working Capitol Business Type: Existing Collateral and Guarantees: Food Trailer, Equipment, Personal Vehicle Personal Guarantees: Kandi Tesen, Byron Tesen Conditions for Closing •Signed commissary agreement in priority area of Salt Lake City •Enrollment in SLC Green’s E2 Business Program •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.