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Proposed Resolution - 9/16/20211 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Term Sheet Amendment No. 2 for Loan to Community Development Corporation of Utah RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING A SECOND AMENDED TERM SHEET FOR A LOAN TO COMMUNITY DEVELOPMENT CORPORATION OF UTAH FOR AN AFFORDABLE HOUSING PROJECT LOCATED AT 2960 SOUTH RICHMOND STREET, 2964 SOUTH RICHMOND STREET, AND 2970 SOUTH RICHMOND STREET. 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 (the “Act”). WHEREAS, on October 10, 2019, the Board of Directors of the RDA (the “Board”) approved resolution R-25-2019 allocating the funding and approving the preliminary terms of a loan to Community Development Corporation of Utah (“CDCU”) in connection with a mixed-income housing project to be known as “Richmond Flats” located at approximately 2960 S Richmond Street, 2964 Richmond Street, and 2970 Richmond Street (the “Project”). WHEREAS, on May 5, 2020, the Board approved resolution R-10-2020 amending the terms of the loan to CDCU for the Project that structures the loan into two phases. Phase I was executed and funded in 2020 as a short-term loan in the amount of $1,520,000 for land acquisition. Phase II was approved as a construction-to-permanent financing loan in an amount of up to $1,800,000, which would include the outstanding balance of the loan provided through Phase I and any additional funds up to $1,800,000. WHEREAS, prior to funding Phase II of the loan, certain conditions must be achieved pursuant to the approved terms. One condition is that the loan is secured with a lien on both the land and improvements. WHEREAS, CDCU has entered into a partnership with __________ as Richmond Flats, LLLP (the “Developer”). CDCU will continue to own the land and will lease the land to the Developer for development of the Project. CDCU has requested an amendment to the loan terms in order to facilitate the development of the Project. WHEREAS, on _________, the RDA’s Finance Committee reviewed the proposed second amendment to the loan terms previously approved by the Board. WHEREAS, based on the Finance Committee’s recommendations, the RDA staff recommends the attached set of amended terms (the “Term Sheet”) for the Phase II loan to CDCU. ATTACHMENT C: RESOLUTION (2021) 12 2 NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the loan to CDCU outlined in the Term Sheet attached hereto is approved, 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. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of _______________, 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 August 26, 2021 13