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Proposed Resolution - 7/16/2024 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 12024. 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:June 25, 2024 Ise Sara Montoya, City Xttorney 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 DIED staff, such other terms as recommended by City legal counsel and DIED staff.