Transmittal - 3/25/2024DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
LORENA RIFFO-JENSON
DIRECTOR
CITY COUNCIL TRANSMITTAL
_______________________ Date Received: ___________
Rachel Otto, Chief of Staff Date sent to Council: ___________
__________________________________________________________________
TO: Salt Lake City Council DATE: March 21, 2024
Victoria Petro, Chair
FROM: Lorena Riffo-Jenson, Director, Department of Economic Development
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – (Parea LLC)
STAFF CONTACTS:
Roberta Reichgelt, Business Development Director, Roberta.reichgelt@slcgov.com
Project Manager, Brian Pantle, Brian.Pantle@slcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION: The EDLF Loan Committee recommends approval of $350,000
loan to Parea LLC.
BUDGET IMPACT: $350,000 from the Economic Development Loan Fund
BACKGROUND/DISCUSSION: On February 29th, 2024, a loan request from Parea LLC was
presented to the EDLF Loan Committee for review and discussion. A new quick style
restaurant/market along the 900 South that will sell Greek Food from award winning Chef Manoli
Katsanevas.
Basic Loan request
Business Name: Parea LLC
Address: 320 East 900 South
Loan Amount Requested: $350,000
Loan Term: 7 Years
Interest Rate: 11.50%
Use of Funds: Buildout of restaurant augmenting Manoli’s investment in the build out.
Loan Type: Startup – However an exemption was made given the experience and history Manoli
has as a restaurateur in Salt Lake City.
Council District: D5
Reasoning behind staff recommendation
rachel otto (Mar 25, 2024 16:30 MDT)
03/25/2024
03/25/2024
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, then the loan is recommended to be
reviewed by the Loan Committee members. Upon the thorough review of the Loan Committee
members then 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 following 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.
•Increasing employment opportunities.
•Stimulating business development.
•Encouraging private investment.
•Promote economic development.
•Enhancing neighborhood vitality.
•Boosting commercial enterprise.
This loan will assist in the creation of 15 new jobs in the next year and retention of 30 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 3/19/2024, the EDLF available
fund balance is: $8,700,000.
2.As of 3/19/2024 the amount of outstanding loans total is: $5,612,706.27
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
8.Community lender
9.Business mentor
Attachments: Terms Sheet and Ordinance