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HomeMy WebLinkAboutProposed Ordinance - 1/31/2025SALT LAKE CITY ORDINANCE No. _____ of 2025 (Ordinance approving a $75,000 loan for Policy Kings Brewery, LLC, a local business located at 79 W 900 S, Salt Lake City, Utah 84101from 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$75,000 loan for Policy Kings Brewery, LLC, a local business located at 79 W 900 S, 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 _____________________, 2025. Chris Wharton, 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 January 27, 2025 LOAN TERM SHEET Applicant: Policy Kings Brewery, LLC Address: 79 West 900 South Salt Lake City, Utah 84111 Proposed Loan Terms Loan Amount: $75,000 Monthly Payment: $1,168.97 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 8.0% (at the time of application fee and initiation of Part B of the application on September 23, 2024) Plus EDLF Charge: 4% Less Discount: 1% for each • Priority Area (State Street RDA Project Area) • Socially and Economically Disadvantaged Individual (SEDI) • Sustainability (e2 Business Program) • Low to Moderate Income Business Owner (LMI) Final Interest Rate: 8.0% Use of Funds: Building Renovation, Leasehold Improvements, Machinery & Equipment, Furniture and Fixtures, Working Capital, and Contingencies Loan Type: Expansion Collateral: Equipment and Inventory Personal Guarantees: Deandre Ridgel Conditions for Closing • 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.