RDA Resolution R-11-2016

 

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RESOLUTION NO. 767.06 / R-11-2016                                                      March 15, 2016

 

RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING AN EXTENSION OPTION TO THE BUILDING RENOVATION LOAN TO MC FELT, LLC TO FUND RENOVATIONS TO THE FELT BUILDING AT 341 SOUTH MAIN STREET IN THE CENTRAL BUSINESS DISTRICT PROJECT AREA.

 

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 Development and Renewal Agencies Act; and

 

WHEREAS, the RDA adopted the "C.B.D. Neighborhood Development Plan" on May 1, 1982; and

 

WHEREAS, the RDA has established a revolving loan fund to provide loans in its project areas; and

 

WHEREAS, the RDA adopted the Central Business District Project Area 2014-2019 Strategic Plan; and

 

WHEREAS, MC Felt, LLC ("Applicant") purchased the Felt Building at 341 South State Street ("Property") in the Central Business District in March 2015; and

 

WHEREAS, on November IO, 2015 the Board of Directors approved a $2,809,267 Building Renovation Loan ("Loan") to the Applicant for renovations to the Property; and

 

WHEREAS, the Board approved this Loan with a five (5) year term; and

 

WHEREAS, the Applicant has requested an option to extend the term of the Loan from five years to ten years, with an interest rate increase from 3% to 5% in years 6-10 pursuant to RDA policy, in the event that the Applicant is unable to refinance the Loan under reasonable methods and terms at the end of five years.

 

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that we do hereby approve the option to extend the term of the Loan as outlined herein.

 

BE IT FURTHER RESOLVED THAT we do hereby authorize the Chief Administrative Officer and the Interim Executive Director to negotiate and execute an option to extend the term of the Loan within a loan agreement and legal documents attendant thereto. The documents shall also incorporate such other terms as recommended by RDA legal counsel.

 

Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 15th day of March, 2016.