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HomeMy WebLinkAboutProposed Ordinance - 5/15/2025SALT LAKE CITY ORDINANCE No. of 2025 (Ordinance approving a $200,000 loan for Hruskas, LLC, at 1751 South 1100 East 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 a $200,000 loan as set forth in the loan term sheet attached hereto as Exhibit A (“Term Sheet”) to Hruskas, LLC, a local business located at 1751 South 1100 East, Salt Lake City, UT 84105. 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 as Exhibit A, 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 2025. Published: . APPROVED AS TO FORM Salt Lake City Attorney’s Office Date: Sara Montoya, City Attorney May 13, 2025 EXHIBIT A Loan Term Sheet Applicant: Hruskas, LLC Address: 1751 East 1100 South Salt Lake City, UT 84105 Proposed Loan Terms Loan Amount: $200,000 Monthly Payment: $3,424.49 Loan Terms: 7 Years Interest Rate Calculation Prime Interest Rate: 8% (at the time of application fee payment and initiation of Part B of the Application on June 24, 2024) Plus EDLF Charge: 4% Less Discount: 1% for each • Sustainability (e2 Business Program) Final Interest Rate: 11% Use of Funds: Building Renovation, Machinery & Equipment, Furniture & Fixtures, Working Capital, Contingencies Loan Type: Existing Collateral: Equipment Personal Guarantees: Ross Hruska 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.