HomeMy WebLinkAboutTransmittal - 7/16/2024SALT LAKE CITY TRANSMITTAL
To:
Salt Lake City Council Chair
Salt Lake City Redevelopment Agency Chair
Start Date:
07/02/2024
Date Sent to Council:
07/16/2024
From:
Employee Name:
Wright, William
E-mail
William.Wright@slcgov.com
Department
Economic Development
Department Director Signature Chief Administrator Officer's Signature *
Director Signed Date
07/15/2024
Chief Administrator Officer's Signed Date
07/16/2024
Subject:
Economic Development Revolving Loan Fund (EDLF) – Policy Kings Brewery, LLC
Additional Staff Contact:
Roberta Reichgelt - Roberta.Reichgelt@slcgov.com Will Wright- William.Wright@slcgov.com
Presenters/Staff Table
Roberta Reichgelt - Roberta.Reichgelt@slcgov.com Will Wright- William.Wright@slcgov.com
Document Type *
Ordinance
Budget Impact *
Yes
No
Budget Impact:
Recommendation:*
The EDLF Loan Committee recommends approval of a $75,000 loan to Policy Kings Brewery, LLC.
Background/Discussion (?)
On June 20, 2024, a loan request of $75,000 from Policy Kings Brewery, LLC, was presented to the EDLF Loan Committee for review and discussion. Policy Kings Brewery is Utah’s first black owned brewery and offers good vibes fermenting always! They aim to create that atmosphere for everyone.
Will the City Council need to hold a public hearing for this item?*
Yes
No
Public Process
A loan committee of nine members, five from City departments and 4 from community volunteers, have voted to recommend Policy Kings Brewery, LLC’s request for a $75,000 loan to City Council for approval. A vote from City Council is required for approval
Chief Administrator Officer's Comments
LOAN TERM SHEET
Applicant: Policy Kings Brewery, LLC
Address: 925 S Jefferson Street
Proposed Loan Terms
Loan Amount: $75,000
Loan Terms: 7 Years
Interest Rate Calculation Prime Interest Rate: 8.5% (at the time of application on March 1, 2024)
Plus EDLF Charge: 4%
Less Discount: 1% for each
• Priority Area (State Street RDA Project Area)
• Socially and Economically Disadvantaged Individual (SEDI)
• Sustainability (e2 Business Program)
• Low to Moderate Income Business Owner
Final Interest Rate: 8.5%
Use of Funds: Build Out, Working Capital
Business Type: Existing
Collateral: Machinery and Equipment
Personal Guarantees: Deandre Ridgel, Sara Ridgel
Conditions for Closing
• Signed lease on property in 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.
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SALT LAKE CITY ORDINANCE
No. _____ of 2024
(Ordinance approving a $75,000 loan for Policy Kings Brewery, LLC 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 $75,000 loan to Policy Kings Brewery, LLC, a local business
located at 925 S Jefferson 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
_____________________, 2024.
Victoria Petro, Council Chair
ATTEST AND COUNTERSIGN:
______________________________
CITY RECORDER
Transmitted to Mayor on _______________________.
Mayor's Action: _______Approved. _______Vetoed.
______________________________
MAYOR
______________________________
CITY RECORDER
(SEAL)
Bill No. ________ of 2024.
Published: ______________.
APPROVED AS TO FORM
Salt Lake City Attorney’s Office
Date:
Sara Montoya, City Attorney
June 25, 2024
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