HomeMy WebLinkAboutTransmittal - 10/25/2024SALT LAKE CITY TRANSMITTAL
To:
Salt Lake City Council Chair
Start Date:
10/22/2024
Date Sent to Council:
10/25/2024
From:
Employee Name:
Wright, William
E-mail
william.wright@slc.gov
Department
Economic Development
Department Director Signature Chief Administrator Officer's Signature*
Director Signed Date
10/24/2024
Chief Administrator Officer's Signed Date
10/25/2024
Subject:
Economic Development Loan Fund (EDLF) - GK Folks Foundation
Additional Staff Contact:
Roberta Reichgelt; roberta.reichgelt@slc.gov
Presenters/Staff Table
William Wright; william.wright@slc.govRoberta Reichgelt; roberta.reichgelt@slc.gov
Document Type*
Ordinance
Budget Impact*
Yes
No
Budget Impact:
$250,000 from the Economic Development Loan Fund
Recommendation:*
The EDLF Loan Committee recommends approval of a $250,000 loan to GK Folks Foundation.
Background/Discussion (?)
See attachment
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
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: October 22, 2024 Victoria Petro, Chair
FROM: Lorena Riffo-Jenson, Director, Department of Economic Development
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – GK Folks Foundation
STAFF CONTACTS: Roberta Reichgelt, Business Development Director: Roberta.Reichgelt@slc.gov; Will Wright, Project Manager: William.Wright@slc.gov
DOCUMENT TYPE: Ordinance
RECOMMENDATION: The EDLF Loan Committee recommends approval of $250,000 loan to GK Folks Foundation.
BUDGET IMPACT: $250,000 from the Economic Development Loan Fund
BACKGROUND/DISCUSSION: On September 26, 2024, a loan request from GK Folks Foundation was presented to the EDLF Loan Committee for review and discussion. GK Folks Foundation is a non-profit organization for African immigrants and refugees that focuses on mental health awareness, educational and entrepreneurial resources, and will be using EDLF loan funds to create a community events center for the
African immigrant and refugee community.
Basic Loan request
Business Name: GK Folks Foundation Address: 1506 South Redwood Road, Salt Lake City, Utah 84104
Loan Amount Requested: $250,000 Loan Term: 7 years Interest Rate: 9.50% Use of Funds: Renovation, Working Capital, Equipment, Furniture and Fixtures Loan Type: Expansion Council District: District 2
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.
•Stimulate business development and expansion,
•Enhance neighborhood vitality,
•Promotes economic development,
•Boost commercial enterprise.
This loan will assist in the creation of 2 new jobs in the next year and retention of 1 current jobs.
This loan was recommended by the EDLF Committee to the City Council for approval.
EDLF Loan Balances
1.As of September 30, the EDLF available fund balance is approximately $8,200,000
2.As of October 1, the total amount of outstanding loans is: $3,932,436.60
EDLF Loan Committee
There is a total of nine (9) EDLF Committee members.
City Employees:
1.Community and Neighborhood's Finance2.Mayor’s Office3.Employee at large4.Housing Stability5.Economic Development
Community Volunteers:
6. Business Advisory Board (BAB)member7. Banker8.Community lender9.Business mentor
Attachments: EDLF Terms Sheet for GK Folks Foundation Ordinance
LOAN TERM SHEET
Applicant: GK Folks Foundation
Address: 1506 South Redwood Road
Salt Lake City, Utah 84104
Proposed Loan Terms
Loan Amount: $250,000
Loan Term: 7 Years
Interest Rate Calculation: Prime Interest Rate: 8.5% (at the time of application on March 1, 2024)
Plus EDLF Charge: 4%
Less Discount: 1% for each
• Socially and Economically Disadvantaged Individual (SEDI)
• Sustainability (e2 Business Program)
• Priority Area (West of I-15)
Final Interest Rate: 9.5%
Use of Funds: Working Capital, Buildout/Renovation, Equipment, Furniture and Fixtures
Loan Type: Expansion
Collateral: The Real Property at 7009 West 7895 South, West Jordan, Utah 84081
Vehicle: 2014 Chrysler 300C
Personal Guarantees: Gloria Mensah
Conditions for Closing
• Signed lease on the property at 1506 South Redwood Road, Salt Lake City, Utah 84104.
• Membership 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.
SALT LAKE CITY ORDINANCE No. _____ of 2024
(Ordinance approving a $250,000 loan for GK Folks Foundation, at 1506 South Redwood Road, Salt Lake City, Utah 84104, 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$250,000 loan for GK Folks Foundation, at 1506 South Redwood Road, Salt Lake
City, Utah 84104.
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
October 16, 2024
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