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Proposed Ordinance - 9/10/2024SALT LAKE CITY ORDINANCE No. _____ of 2024 (Ordinance approving a $100,000 loan for Botanika SLC, LLC, 353 West 200 South, Salt Lake City, Utah 84101 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 Botanika SLC, LLC, a local business located at 353 West 200 South, Salt Lake City, Utah 84101. 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 August 16, 2024 LOAN TERM SHEET Applicant: Botanika SLC, LLC Address: 353 West 200 South, Salt Lake City, UT 84101 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 20, 2024) Plus EDLF Charge: 4% Less Discount: 1% for each • Priority Area (CDBG low/moderate income census tract) • SEDI socially and economically disadvantaged individual • Sustainability (e2 Business Program) Final Interest Rate: 9.5% Use of Funds: Renovation, Equipment, Furniture and Fixtures, Working Capital Business Type: Start-up Collateral: Vehicle, Equipment, Inventory Personal Guarantees: Katherine Riser 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.