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Home My WebLink AboutTransmittal - 9/10/2024SALT LAKE CITY TRANSMITTAL To: Salt Lake City Council Chair Salt Lake City Redevelopment Agency Chair Start Date: 08/15/2024 Date Sent to Council: 09/10/2024 From: Employee Name: Ramazani, Ibrahim E-mail ibrahim.ramazani@slc.gov Department Economic Development Department Director Signature Chief Administrator Officer's Signature* Director Signed Date 09/09/2024 Chief Administrator Officer's Signed Date 09/10/2024 Subject: Economic Development Revolving Loan Fund (EDLF) – Exotic Fast Foods, LLC Additional Staff Contact: Roberta Reichgelt Presenters/Staff Table Ibrahim Ramazani: ibrahim.ramazani@slc.govRoberta Reichgelt: roberta.reichgelt@slc.gov Document Type* Ordinance Budget Impact* Yes No Budget Impact: $100,000 from the Economic Development Loan Fund Recommendation:* The EDLF Loan Committee recommends approval of $100,000 loan to Exotic Fast Foods, LLC Background/Discussion (?) Background/Overview Information: On June 20, 2024, a loan request from Exotic Fast Foods, LLC, was presented to the EDLF Loan Committee for review and discussion. Exotic Fast Foods, LLC, is a new restaurant specializing in Eurasian cuisine, aiming to fill a niche in the local market by offering authentic dishes that are not currently widely available. The strategic location near gas stations and highways ensures high visibility and accessibility, attracting a diverse customer base including travelers, truck drivers, and downtown visitors. Basic Loan request Business Name: Exotic Fast Foods, LLC. Address: 55 North Redwood Rd, Salt Lake City, UT 84116. Loan Amount Requested: $100,000 Loan Term: 7 years Interest Rate: 8.50% Use of Funds: Building renovations, Working Capital, and Equipment g g p q pLoan Type: Start up Council District: District 1 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 a thorough review by the Loan Committee members, a recommendation is made before the loan is transmitted to the Mayor who then will forward the loan to the City Council for final approval. Because the Loan Committee review process must adhere to the Open Meetings Act, Department of Economic Development staff worked closely with the City Attorney’s Office to ensure that applicants’ information is protected while following the public process. 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. • Increases employment opportunities. • Stimulate business development and expansion. • Enhances neighborhood vitality. • Promotes economic development. • Boost commercial enterprise. This loan will assist in the creation of 6 new jobs in the next year and retention of 3 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 August 7, 2024, the EDLF available fund balance is approximately $8,300,000. 2. As of July 30, 2024, the amount of outstanding loans total is: $3,205,765. 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 Will the City Council need to hold a public hearing for this item?* Yes No Public Process An OPMA compliant loan committee meeting was held to review the loan application. The loan committee recommended for Council approval. Next steps are review and approval by Council. Chief Administrator Officer's Comments LOAN TERM SHEET Applicant: Exotic Fast Foods, LLC Address: 55 North Redwood Road Salt Lake City, UT 84116 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 February 1, 2024) Plus EDLF Charge: 4% Less Discount: 1% for each • Priority Area (North Temple) • Socially and Economically Disadvantaged Individual (SEDI) • Sustainability (e2 Business Program) • Low to Moderate Income Business Owner Final Interest Rate: 8.5% Use of Funds: Building Renovations, Machinery and Equipment, Furniture, and Working Capital Business Type: Start up Collateral: Vehicle, Equipment and Machinery Personal Guarantees: Zhazira Begaly Conditions for Closing • 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. This page has intentionally been left blank SALT LAKE CITY ORDINANCE No. _____ of 2024 (Ordinance approving a $100,000 loan for Exotic Fast Foods, 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 $100,000 loan to Exotic Fast Foods, LLC, a local business located at 55 North Redwood Road. 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 July 23, 2024 This page has intentionally been left blank 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: June 25, 2024 Victoria Petro, Chair FROM: Lorena Riffo-Jenson, Director, Department of Economic Development SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Exotic Fast Foods, LLC. STAFF CONTACTS: Roberta Reichgelt, Business Development Director, Roberta.reichgelt@slcgov.com Ibrahim Ramazani, Project Coordinator, Ibrahim.Ramazani@slcgov.com DOCUMENT TYPE: Loan Approval RECOMMENDATION: The EDLF Loan Committee recommends approval of $100,000 loan to Exotic Fast Foods, LLC. BUDGET IMPACT: $100,000 from the Economic Development Loan Fund BACKGROUND/DISCUSSION: On June 20, 2024, a loan request from Exotic Fast Foods, LLC, was presented to the EDLF Loan Committee for review and discussion. Exotic Fast Foods is a new restaurant specializing in Eurasian cuisine, aiming to fill a niche in the local market by offering authentic dishes that are not currently widely available. The strategic location near gas stations and highways ensures high visibility and accessibility, attracting a diverse customer base including travelers, truck drivers, and downtown visitors. Basic Loan request Business Name: Exotic Fast Foods, LLC. Address: 55 North Redwood Rd. Loan Amount Requested: $100,000 Loan Term: 7 years Interest Rate: 8.50% Use of Funds: Building renovations, Working Capital, and Equipment Loan Type: Start up Council District: 1 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. 1. Increase employment opportunities, 2. Stimulate business development and expansion, 3. Encourage private investment, 4. Promote economic development, 5. Enhance neighborhood vitality, 6. Boost commercial enterprise. This loan will assist in the creation of 6 new jobs in the next year and retention of 3 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 June 2024, the EDLF available fund balance is approximately $8,800,000. 2. As of June 21,2024, the amount of outstanding loans total is: $3,240,998. 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 This page has intentionally been left blank