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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: Feldman, Andie E-mail andrea.feldman@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) – Ski Trucks, LLC Additional Staff Contact: Roberta Reichgelt, Roberta.Reichgelt@slc.gov Presenters/Staff Table Andie Feldman and Roberta Reichgelt Document Type* Ordinance Budget Impact* Yes No Budget Impact: $300,000 Recommendation:* The EDLF Loan Committee recommends approval of $300,000 loan to Ski Trucks, LLC Background/Discussion (?) On June 6 , 2024, a loan request from Ski Trucks, LLC was presented to the EDLF Loan Committee for review and discussion. Ski Trucks, LLC is a family-owned and operated full-service ski and snowboard shop located on North Temple. Basic Loan request Business Name: Ski Trucks, LLCAddress: 1260 W North Temple St, Salt Lake City, UT 84116Loan Amount Requested: $300,000Loan Term: 7 years Interest Rate: 6.75%Use of Funds: Working Capital Loan Type: ExpansionCouncil 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 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, Department of Economic Development staff worked closely with the City Attorney’s Office to ensure that applicants’ information is protected while following public process. th 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. This loan will assist in the creation of 2 new jobs in the next year and retention of 12 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 in June, 2024, the EDLF available fund balance is: $8,800,000. 2. As of July 1, 2024 the amount of outstanding loans total is: $3,233,641.53 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) member7. 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 the loan for Council approval. Next steps are review and approval by Council. Chief Administrator Officer's Comments LOAN TERM SHEET Applicant: Ski Trucks, LLC Address: 1260 North Temple, Salt Lake City, UT 84116 Proposed Loan Terms Loan Amount: $300,000 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 4.75% (at the time of application on July 17, 2022) Plus EDLF Charge: 4% Less Discount: 1% for each • Priority Area, North Temple Project Area • Low Income Final Interest Rate: 6.75% Use of Funds: Working Capital Business Type: Expansion Collateral: Residential Real Estate, Personal Property, and Equipment Personal Guarantees: Monte White and Zoe White Conditions for Closing • Guarantors will be required to register for an accounting class. • 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 $300,000 loan for Ski Trucks, LLC at 1260 North Temple 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 $300,000 loan to Ski Trucks, LLC, a local business located at 1260 North Temple, Salt Lake City, UT 84116, 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 8, 2024 This page has intentionally been left blank TRANSMITTAL Subject/Title: Economic Development Revolving Loan Fund (EDLF) – Ski Trucks, LLC Staff Contacts: Roberta Reichgelt, Business Development Director, Roberta.Reichgelt@slcgov.com; Andie Feldman, Project Manager, Andie.Feldman@slcgov.com Who Will Be at The Table: Roberta Reichgelt and Andie Feldman Document Type: Ordinance Budget Impact: Yes - $300,000 from the Economic Development Loan Fund Recommendation: The EDLF Loan Committee recommends approval of $300,000 loan to Ski Trucks, LLC Background/Overview Information: On June 6th, 2024, a loan request from Ski Trucks, LLC was presented to the EDLF Loan Committee for review and discussion. Ski Trucks, LLC is a family-owned and operated full-service ski and snowboard shop located on North Temple. Basic Loan request Business Name: Ski Trucks, LLC Address: 1260 W North Temple St, Salt Lake City, UT 84116 Loan Amount Requested: $300,000 Loan Term: 7 years Interest Rate: 6.75% Use of Funds: Working Capital Loan Type: Expansion 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 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, Department of Economic Development staff worked closely with the City Attorney’s Office to ensure that applicants’ information is protected while following 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. This loan will assist in the creation of 2 new jobs in the next year and retention of 12 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 in June, 2024, the EDLF available fund balance is: $8,800,000. 2. As of July 1, 2024 the amount of outstanding loans total is: $3,233,641.53 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 Public Hearing Needed: No. Public Process: An OPMA compliant loan committee meeting was held to review the loan application. The loan committee recommended the loan for Council approval. Next steps are review and approval by Council. Are Any of The Attachments Protected By Utah Code 63g-2-305: No List Attachments: 1. EDLF Terms Sheet for Ski Trucks, LLC 2. Ordinance This page has intentionally been left blank