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HomeMy WebLinkAboutTransmittal - 05/13/2025SALT LAKE CITY TRANSMITTAL To:  Salt Lake City Council Chair Submission Date: 05/13/2025 Date Sent to Council: 05/15/2025 From: Department * Economic Development Employee Name: Feldman, Andie E-mail andrea.feldman@slc.gov Department Director Signature Director Signed Date 05/13/2025 Chief Administrator Officer's Signature Chief Administrator Officer's Signed Date 05/14/2025 Subject: Economic Development Revolving Loan Fund (EDLF) – Hruskas, LLC Additional Staff Contact: Peter Makowski, Business Development Deputy Director, Peter.Makowski@slc.gov William Wright, Project Manager, William.Wright@slc.gov Presenters/Staff Table Peter Makowski, Peter.Makowski@slc.gov William Wright, William.Wright@slc.gov Document Type Ordinance Budget Impact? Yes No Budget Impact: $200,000 from the Economic Development Loan Fund Recommendation: The EDLF Loan Committee recommends approval of $200,000 loan to Hruskas, LLC. Background/Discussion See attached documents. Will there need to be a public hearing for this item?* Yes No Public Process This page has intentionally been left blank DEPARTMENT of ECONOMIC DEVELOPMENT ERIN MENDENHALL MAYOR DIRECTOR CITY COUNCIL TRANSMITTAL ________________________________ Date Received: ___________________________ Jill Love, Chief Administrative Officer Date sent to Council: ______________________ ______________________________________________________________________________________ TO: Salt Lake City Council DATE: May 13, 2025 Chris Wharton, Chair FROM: Lorena Riffo-Jenson, Director, Department of Economic Development SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Hruskas, LLC STAFF CONTACTS: Peter Makowski, Business Development Deputy Director, Peter.Makowski@slc.gov Andie Feldman Project Manager, Andie.Feldman@slc.gov DOCUMENT TYPE: Ordinance RECOMMENDATION: The EDLF Loan Committee recommends approval of $200,000 loan to Hruskas, LLC. BUDGET IMPACT: $200,000 from the Economic Development Loan Fund BACKGROUND/DISCUSSION: On April 10, 2025, a $200,000 loan request from Hruskas, LLC, was presented to the EDLF Loan Committee for review and discussion. Hruskas, LLC, is a takeout restaurant offering sweet and savory kolaches stuffed pastries for everyone from college students to tech moguls to enjoy. They are moving from 2030 S 900 E to 1751 S 1100 E. Basic Loan request Business Name: Hruskas, LLC Address: 1751 S 1100 E, 84105 Loan Amount Requested: $200,000 Loan Term: 7 years Interest Rate: 11% Use of Funds: Renovation, Working Capital, Equipment, Furniture and Fixtures Loan Type: Existing Council District: District 7 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, is the loan recommended to be reviewed by the Loan Committee members. Upon thorough review by the Loan Committee members, 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, Department of Economic Development staff worked closely with the City Attorney’s Office to ensure that applicants’ information is protected while following public process. 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. • Increases employment opportunities, • Stimulate business development and expansion, • Enhances 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 9 current jobs. This loan was recommended by the EDLF Committee to the City Council for approval. EDLF Loan Balances 1. As reported from The Finance Department on April 22nd, 2025, the EDLF available fund balance is approximately $7,300,000. 2. As of April 22, 2025, the amount of outstanding loans total is: $5,651,017.20 EDLF Loan Committee There is a total of nine (9) EDLF Committee members. City Employees: 1. Community and Neighborhoods Finance 2. Mayor’s Office 3. Employee at large 4. Housing Stability 5. Economic Development Community Volunteers: 6. Business Advisory Board (BAB) member 7. Banker 8. Community lender 9. Business mentor