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REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-32-2018
Citywide Affordable Housing – The Exchange - $3M Loan
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO DOWNTOWN SLC B LLC FOR A CITYWIDE AFFORDABLE HOUSING PROJECT LOCATED AT 340 EAST 400 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 (the “Act”).
WHEREAS, the Act provides that tax increment funds may be used outside of a project area for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City.
WHEREAS, pursuant to a motion adopted by the RDA Board of Directors (the “Board”) on December 5, 2017, the Board set aside $1,400,000 (“$1.4M Loan”), contingent upon an application and review process, to facilitate the redevelopment of the Barnes Bank assemblage located at 340 East 400 South.
WHEREAS, the RDA facilitated a loan application and review process pursuant to the RDA’s loan program policy for the $1.4M Loan for a proposed mixed-income housing development at 340 East 400 South (“Project”), to be constructed by Downtown SLC B LLC (“Borrower”).
WHEREAS, on September 12, 2018, the RDA’s Finance Committee reviewed Borrower’s $1.4M Loan application.
WHEREAS, Borrower sought an additional $1,600,000 loan for the Project (“$1.6M Loan”), and following a loan application and review process, the RDA’s Finance Committee and the RDA staff recommended that the $1.6M Loan to Borrower be funded through the Notice of Funding Availability (the “NOFA”) administered by the RDA.
WHEREAS, at the RDA Board of Directors’ meeting on October 9, 2018, the RDA Board of Directors (the “Board”) decided not to fund the $1.6M Loan from the NOFA and instead approved the $1.6M to Borrower from the RDA’s revolving loan fund.
WHEREAS, the $1.6M Loan and the $1.4M Loan will be provided to Borrower on the same terms and conditions, as described on the term sheet (“Term Sheet”) attached hereto as Exhibit A.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City 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.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 9th day of October, 2018.