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Home My WebLink AboutTransmittal - 6/25/2024SALT LAKE CITY TRANSMITTAL To: Salt Lake City Council Chair Salt Lake City Redevelopment Agency Chair Start Date: 06/25/2024 Date Sent to Council: 06/26/2024 From: Employee Name: Brian Pantle E-mail Brian.Pantle@slcgov.com Department Economic Development Department Director Signature Chief Administrator Officer's Signature * Director Signed Date 06/26/2024 Chief Administrator Officer's Signed Date 06/26/2024 Subject: EDLF Transmittal for Goat Head, LLC Additional Staff Contact: Roberta Reichgelt - Roberta.Reichgelt@slcgov.comJolynn Walz - Jolynn.walz@slcgov.com Presenters/Staff Table Brian Pantle - Brian.pantle@slcgov.comRoberta Reichgelt - roberta.reichgelt@slcgov.com Document Type * Ordinance Budget Impact * Yes No Budget Impact: Recommendation:* The EDLF Loan Committee recommends approval of $100,000.00 loan to Goat Head, LLC. Background/Discussion (?) On May 23, 2024, a loan request for Goat Head, LLC was presented to the Economic Development Loan Fund (EDLF) Loan Committee for review and discussion. Goat Head, LLC is a restaurant serving vegan, vegetarian food. Will the City Council need to hold a public hearing for this item?* Yes No Public Process Chief Administrator Officer's Comments DEPARTMENT of ECONOMIC DEVELOPMENT ERIN MENDENHALL MAYOR LORENA RIFFO-JENSON DIRECTOR CITY COUNCIL TRANSMITTAL __________________________ Date Received: ___________ Jill Love, Chief Administrative Officer Date sent to Council: ___________ __________________________________________________________________ TO: Salt Lake City Council DATE: 06/24/2024 Victoria Petro, Chair FROM: Lorena Riffo-Jenson, Director, Department of Economic Development SUBJECT: Economic Development Revolving Loan Fund (EDLF) – (Goat Head, 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 $100,000 loan to Goat Head LLC. BUDGET IMPACT: $100,000 from the Economic Development Loan Fund BACKGROUND/DISCUSSION: On May 23rd, 2024, a loan request from Goat Head, LLC was presented to the EDLF Loan Committee for review and discussion. Goat Head, LLC is a restaurant serving vegan, vegetarian food. Basic Loan request Business Name: Goat Head, LLC Address: 702 South 300 East Loan Amount Requested: $100,000 Loan Term: 7 Years Interest Rate: 10.5% Use of Funds: Kitchen and service equipment, buildout of new leased space, licenses working capital and owner’s wages. Loan Type: Start-up Council District: D4 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, 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. •Increase employment opportunities, •Stimulate business development and expansion, •Promote economic development, •Enhance neighborhood vitality, •Boost commercial enterprise. This loan will assist in the creation of 4 new jobs in the next year and retention of 2 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 06/14/2024, the EDLF available fund balance is: $8,800,000.00. 2.As of 06/14/2024 the amount of outstanding loans total is: $3,221,925.22 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 LOAN TERM SHEET Applicant: Goat Head, LLC Address: 702 South 300 East Proposed Loan Terms Loan Amount: $100,000 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 8.5% at the time of application on 11/13/2023 Plus, EDLF Charge: 4% Less Discount: 1% for each • SEDI • Sustainability Final Interest Rate: __10.5% Use of Funds: Kitchen and service equipment, buildout of new leased space, licenses working capital and owner’s wages. Business Type: Start-up Collateral: Two vehicles and Equipment Personal Guarantees: Sarah Boone-Witham Michael Boone-Witham Conditions for Closing •Complete enrollment in Sustainability’s E2 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. SALT LAKE CITY ORDINANCE No. _____ of 2024 (Ordinance approving a $100,000 loan for Goat Head LLC, at 702 S 300 E 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 $100,00 loan to Goat Head LLC, a local business located at 702 South 300 East. 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 18, 2024 This page has intentionally been left blank