Proposed Ordinance - 10/25/2024SALT 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
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.