16 of 2024 - RDA Loan Program Library Corner Childcare Facility LoanREDEVELOPMENT AGENCY OF SALT LAKE CITY
RE SOLUTION NO. of 2024
LOAN TO LIBERTY CORNER ASSOCIATES, LLC
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING THE TERM SHEET OF A LOAN TO LIBERTY
CORNER AS SOCIA TES, LLC FOR CONSTRUCTION OF AN EXPANDED DAYCARE
WHEREAS, the Redevelopment Agency of Salt Lake City (RDA) was created to transact the
business and exercise the powers provided for in the Utah Community Reinvestment Agency
Act (the Act).
WHEREAS, the Act grants the RDA powers to use funds to provide for project area
development within project area boundaries.
WHEREAS, the RDA has an RDA Loan Program (Program), the purpose of which is to
promote economic development, encourage private investment, and enhance project area
vitality.
WHEREAS, on October 18, 2016, the RDA Board adopted Resolution No. R-37-2016,
establishing policy guidelines for the RDA Loan Program (the Policy).
WHEREAS, on March 8, 2022, the RDA Board adopted Resolution No. R-7-2021, which
established the RDA's Housing Development Loan Program (HDLP).
WHEREAS, on March 19, 2024, the RDA Board approved a $4,500,000 HDLP loan (Initial
Loan) to support the construction of a mixed-income affordable apartment community by
Liberty Comer Associates, LLC (the Borrower).
WHEREAS, pursuant to the Policy, in addition to the $4,500,000 HDLP loan, the Borrower
applied for a second loan to support the construction of an expanded daycare in Borrower's
planned mixed-income affordable apartment community located within the RDA's State Street
project area.
WHEREAS, the RDA staff propose a waiver of the loan amount, interest rate, and term ofloan
under the Policy, and propose that this loan follow the terms already approved via the Project's
Initial Loan, as set forth in more detail in the attached term sheet.
WHEREAS, the RDA Finance Committee reviewed the proposed loan application in a
meeting on September 18, 2024 and voted to recommend the loan to the RDA Board for
approval.
WHEREAS, in conjunction with the RDA Finance Committee's recommendations, the RDA
staff recommends the attached set of terms (the Term Sheet) for a second loan in the amount of
$1,600,000 to the Borrower specifically for the construction of a daycare in the Project, which
16
construction is to be expanded from the proposal the Borrower presented for the Initial Loan
(the Daycare Loan).
WHEREAS, RDA staff further requests the RDA Board approve the Policy waivers for the
Daycare Loan, as further described in the Term Sheet.
NOW, THEREFORE, BE IT RESOLVED by the Board that it approves the Policy waivers
for the Daycare Loan, and further approves the Daycare Loan as outlined in the Term Sheet
attached hereto, subject to revisions that do not materially affect the rights and obligations of
the RDA hereunder. The Board authorizes the Executive Director 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.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this __
day of ______ , 2024.
Alejandro Puy, Chair
F-
The Executive Director:
__ does not request reconsideration
__ requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
October 8
Sara Montoya Salt Lake City Attorney's Office
10/16/2024
Rachel Otto (Oct 17, 2024 11:36 MDT)
Rachel Otto
4
$) 4 T-$.h(a) (Oct 17, 2024 13:22 MDT)
Cindy Trishman
LOAN TERM SHEET
ATTACHMENT A: RDA TERM SHEET
BORROWER
Liberty Corner Associates, LLC
ADDRESS
1265 South 300 West, Salt Lake City, UT 84111
PROPOSED LOAN TERMS
•Amount: $1,600,000
•Interest Rate:
HDLP Base Rate
(U.S. Treasury Yield Curve Rate plus 2%,
with a maximum base interest rate of 4%)
4.0%
Public Benefit Interest Rate Reduction11:
•Family Housing12
•Target Housing13
•Transportation Opportunities14
•Neighborhood Safety15
•Architecture & Urban Design16
•Commercial Vitality17
-0.5%
-0.5%
-0.5%
-0.5%
-0.5%
-0.5%
Final Interest Rate18 2.0%
•Term: 40 years
•Amortization: 40 years
11 2% maximum total interest rate reduction; must continue to meet commitment after construction to keep reduction
12 At least 15% of residential units will have 3 or more bedrooms
13 At least 15% of residential units will be rented at affordable rents to households earning 40% AMI or less
14 The project will be located within 1/3 mile of a TRAX station and incorporates the majority of parking within a primary
structure to minimize the need for a surface parking lot.
15 The project will be built within a RDA project area and utilize CPTED design strategies
16 The project will feature active ground floor uses, significant ground floor glass, durable building materials, and engaging
building entrances
17 The project is mixed-use and establishes publicly-accessible commercial spaces within the development that are lacking
and desired.
18 2% maximum total interest rate reduction per HDLP policy
LOAN TERM SHEET
LIBERTY CORNER
• Repayment Terms: Cash flow
• Expenses: Borrower will pay all loan expenses and closing costs, including title insurance.
• Recourse: full recourse until Stabilization
COLLATERAL AND GUARANTEES
• Lien on the properties included in this project, including those with parcel numbers 15-12-458-003, 15-
12-458-002, 15-12-458-011, and 15-12-458-007. Lien position will be determined before closing by
loan amounts and the number of lenders on this project.19
• Completion and repayment guaranty.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
• RDA and Borrower execute loan documents (e.g. promissory notes, loan agreements, security
documents, and guarantees) as deemed necessary by the RDA and its legal counsel.
• Borrower receives approval from the RDA and its legal counsel of all matters pertaining to title, legality
of the loan, and the legality, sufficiency, and the form and substance of all documents that are deemed
reasonably necessary for the loan transaction.
• Borrower provides evidence of insurance in such amounts and with such coverage as deemed necessary
by the RDA for the Property.
• The Project shall obtain all financial, legal, and regulatory approvals required for the construction,
completion, and operations of the Project.
• The Project will demonstrate compliance with the RDA’s Sustainable Development Policy.
• Such other terms as recommended by the RDA’s legal counsel and staff.
• RDA memorializes childcare use in a Restrictive Use Agreement. The 7,950 square foot retail space
identified in this application shall be leased to a childcare provider for 40 years or until the loan balance
is paid in full. The Restrictive Use Agreement shall also detail the requirement for the property owner to
charge a below-market lease rate to a childcare provider and for the provider to prioritize Project
residents in childcare enrollment.
• Borrower will provide letter of interest signed by a childcare provider that intends to lease the space.
OTHER CONDITIONS
• The Project shall remain in good financial and legal standing over the term.
• Final terms shall comply with the standard loan terms and conditions within the Housing Development
Loan Program Policy.
• If the Borrower no longer leases the retail space to a childcare provider, the loan’s interest rate will
default to the US Treasury Yield Curve Rate plus 3%. The Borrower will also be required to pay a
balloon payment for the balance of the loan at the end of the 15th year after receiving certificate of
occupancy, at the time the tax credit investor exits the deal.
19 This lien does not provide additional security since it is already given with the $4.5M HDLP loan.
• In the event of any conflict in this term sheet and the Housing Development Loan Program (“HDLP”)
requirements, the terms of the HDLP shall control.
Resolution 16 of 2024 - RDA Loan Program
Library Corner Childcare Facility Loan
Final Audit Report 2024-10-17
Created:2024-10-16
By:STEPHANIE ELLIOTT (STEPHANIE.ELLIOTT@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAqnFFRSnRFoPFdln5uaBc9Ti9Yufd1Ns1
"Resolution 16 of 2024 - RDA Loan Program Library Corner Chil
dcare Facility Loan" History
Document created by STEPHANIE ELLIOTT (STEPHANIE.ELLIOTT@slc.gov)
2024-10-16 - 4:30:21 PM GMT
Document emailed to Sara Montoya (sara.montoya@slc.gov) for signature
2024-10-16 - 4:34:03 PM GMT
Email viewed by Sara Montoya (sara.montoya@slc.gov)
2024-10-16 - 5:03:20 PM GMT
Document e-signed by Sara Montoya (sara.montoya@slc.gov)
Signature Date: 2024-10-16 - 9:51:03 PM GMT - Time Source: server
Document emailed to alejandro.puy@slc.gov for signature
2024-10-16 - 9:51:08 PM GMT
Email viewed by alejandro.puy@slc.gov
2024-10-16 - 10:58:28 PM GMT
Signer alejandro.puy@slc.gov entered name at signing as Alejandro Puy
2024-10-16 - 10:58:53 PM GMT
Document e-signed by Alejandro Puy (alejandro.puy@slc.gov)
Signature Date: 2024-10-16 - 10:58:55 PM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slc.gov) for signature
2024-10-16 - 10:58:57 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slc.gov)
2024-10-16 - 11:15:20 PM GMT
Document signing delegated to rachel.otto@slc.gov by Erin Mendenhall (erin.mendenhall@slc.gov)
2024-10-17 - 1:17:34 PM GMT
Document emailed to rachel.otto@slc.gov for signature
2024-10-17 - 1:17:34 PM GMT
Email viewed by rachel.otto@slc.gov
2024-10-17 - 5:36:14 PM GMT
Signer rachel.otto@slc.gov entered name at signing as Rachel Otto
2024-10-17 - 5:36:27 PM GMT
Document e-signed by Rachel Otto (rachel.otto@slc.gov)
Signature Date: 2024-10-17 - 5:36:30 PM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slc.gov) for signature
2024-10-17 - 5:36:32 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slc.gov)
Signature Date: 2024-10-17 - 7:22:38 PM GMT - Time Source: server
Agreement completed.
2024-10-17 - 7:22:38 PM GMT