008 of 2021 - Loan to Colony B LLC for Affordable Housing Development at Approximately 228 West 1300 SouthREDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Loan to Colony B LLC
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO COLONY B
LLC FOR AN AFFORDABLE HOUSING DEVELOPMENT PROJECT LOCATED AT
APPROXIMATELY 228 WEST 1300 SOUTH
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to
transact the business and exercise the powers provided for in the Utah Community Reinvestment
Agency Act.
WHEREAS, in the FY 2020 budget, the Salt Lake City Council (“Council”) allocated
$2,590,000 in Funding Our Future revenues to the RDA to be provided as loans for the
development of affordable housing.
WHEREAS, pursuant to legislative intent provided by the Council when the FY 2020
budget was adopted, the Council established a housing trust fund within the RDA and any
application that comes to Salt Lake City will be handled by the RDA in a manner that is consistent
with the current rules and purposes guiding the Salt Lake City Housing Trust Fund and the Housing
Trust Fund Advisory Board as established by Salt Lake City code Chapter 2.80.
WHEREAS, Colony B LLC, whose majority member is Neighborhood Nonprofit Housing
Corporation, (the “Developer”) will construct an affordable housing development which consists
of the new construction of a five-story structure with approximately 140 residential units, 106 of
which are deed restricted as affordable housing for 50-years (the “Project”) on 0.5 acres of
property located at approximately 228 West 1300 South (the “Property”).
WHEREAS, the Developer has applied for a loan from the RDA to assist with construction
costs for development of the Project.
WHEREAS, on April 7, 2021, the Housing Trust Fund Advisory Board (“HTFAB”)
reviewed the loan application and approved the attached set of terms (the “Term Sheet”).
WHEREAS, the RDA staff recommends approval of the Term Sheet for a loan to the
Developer, as borrower, for the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City (the “Board”) that it approves the loan outlined in the
Term Sheet attached hereto, subject to revisions that do not materially affect the rights and
obligations of the RDA hereunder. The Board authorizes the Executive Director 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.
R-8-2021
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of May, 2021.
_________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Kimberly K. Chytraus
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
April 13, 2021
4th
Ana Valdemoros (May 17, 2021 13:30 MDT)
Erin Mendenhall (May 17, 2021 13:36 MDT)
4
Cindy Trishman (May 17, 2021 16:00 MDT)
EXHIBIT A: APPROVED LOAN TERM SHEET
Colony B LLC
BORROWER
Colony B LLC, a Utah limited liability company
PROPERTY
0.5 acres of land located at approximately 288 W. 1300 South
PROJECT DESCRIPTION & AFFORDABILITY
The project consists of the new construction of a five-story apartment building with one hundred and
forty (140) residential units total and one hundred and six units (106) that will be deed restricted for
50 years as follows:
•4 studios at 25% AMI
•1 one-bedroom at 25% AMI
•16 studios at 39% AMI
•1 one-bedroom at 39% AMI
•60 studios at 45% AMI
•3 one-bedrooms at 45% AMI
•19 studios at 50% AMI
•2 one-bedrooms at 50% AMI
PROPOSED LOAN TERMS
•Amount: $1,340,000
•Interest Rate: 1.2%
Base Rate 3%
Qualifying Interest Rate Reductions
Transit Proximity -0.25%
Additional Reduction to meet Senior
Lender Requirements -1.55%
Final Interest Rate 1.2%
•Term: 16 years
•Amortization Period: 40 years
•Repayment: Annual hard repayments, with principal and interest payments due the date of
project stabilization, estimated to be Q1 of 2023. Simple interest shall accrue on all loan
proceeds disbursed commencing on the date of disbursement at a rate of 1.2%. All
interest accrued through project stabilization shall be added to the principal of the loan as
capitalized interest, thereby triggering the capitalization date. Interest shall be amortized
from the date of capitalization over a 40-year period. The first payment shall be due 30
days after the capitalization date.
•Affordable Housing Covenant: A restriction shall be recorded against the property that
requires continued use of the 106 units as affordable housing for 50 years.
•Disbursement: Loan proceeds shall be disbursed through construction draws.
COLLATERAL AND GUARANTEES
•Security: A deed of trust on the property that may be subordinated to senior financing.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
•RDA approves all terms of the loan.
•Secure and provide evidence of sufficient sources of project financing. Sources of financing
must equal the total project cost.
•Obtain all required City approvals.
•Execute loan documents (e.g. promissory notes, loan agreements, security documents) as
deemed necessary by the RDA and its legal counsel.
•Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality
of the loan, and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
•Provide evidence of insurance in such amounts and with such coverage as deemed necessary
by the RDA for the Property.
•Procure and deliver to RDA at Closing a satisfactory binding commitment on ALTA
extended coverage form for a mortgagee’s (deed of trust) title insurance policy, or equivalent,
in the amount of the Loan.
•Such other terms as recommended by the RDA’s legal counsel and staff.
RDA Resolution R-8-2021 (Colony B LLC Loan)
adopted 05-04-21
Final Audit Report 2021-05-17
Created:2021-05-06
By:Kory Solorio (kory.solorio@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAAhNruBvYv1IXpNLorltmVzDjyFSGxZ5F
"RDA Resolution R-8-2021 (Colony B LLC Loan) adopted 05-04-
21" History
Document created by Kory Solorio (kory.solorio@slcgov.com)
2021-05-06 - 8:29:14 PM GMT- IP address: 204.124.13.151
Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2021-05-06 - 8:31:17 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2021-05-17 - 7:29:44 PM GMT- IP address: 136.60.130.16
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2021-05-17 - 7:30:11 PM GMT - Time Source: server- IP address: 136.60.130.16
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2021-05-17 - 7:30:13 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2021-05-17 - 7:35:58 PM GMT- IP address: 136.36.67.177
Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2021-05-17 - 7:36:21 PM GMT - Time Source: server- IP address: 136.36.67.177
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2021-05-17 - 7:36:23 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2021-05-17 - 10:00:25 PM GMT - Time Source: server- IP address: 204.124.13.151
Agreement completed.
2021-05-17 - 10:00:25 PM GMT