Transmittal - 6/25/2024 SALT
LAKE CITY
TRANSMITTAL
1 8*4 1
To: Start Date: Date Sent to Council:
Salt Lake City Council Chair 06/25/2024 06/26/2024
Salt Lake City Redevelopment Agency Chair
From:
Employee Name: E-mail
Brian Pantle Brian.Pantle@slcgov.com
Department
Economic Development
Department Director Signature Chief AdministratorOfficer's Signature*
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Director Signed Date Chief Administrator Officer's Signed Date
06/26/2024 06/26/2024
Subject:
EDLF Transmittal for Goat Head,LLC
Additional Staff Contact: Presenters/Staff Table
Roberta Reichgelt-Roberta.Reichgelt@slcgov.com Brian Pantle-Brian.pantle@slcgov.com
Jolynn Walz-jolynn.walz@slcgov.com Roberta Reichgelt-roberta.reichgelt@slcgov.com
Document Type* Budget Impact* Budget Impact:
Ordinance Yes
No
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
ERIN MENDENHALL °cn LORENA RIFFO-JENSON
MAYOR DIRECTOR
DEPARTMENT of ECONOMIC DEVELOPMENT
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: $100,00o 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 Soo 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 o6/14/2024,the EDLF available
fund balance is: $8,800,000.00.
2. As of o6/14/2024 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
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
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 18, 2024
.57
Sara Montoya, Ci Attorney
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.
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