Click here to view entire resolution
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-6-2020
Term Sheet Amendment for a Loan to
Housing Assistance Management Enterprise for Capitol Motel Properties
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING AN AMENDED TERM SHEET FOR A LOAN TO HOUSING ASSISTANCE MANAGEMENT ENTERPRISE FOR AN AFFORDABLE HOUSING PROJECT LOCATED AT 1749 SOUTH STATE STREET, 1767 SOUTH STATE STREET, AND 120 EAST WILSON AVENUE.
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, on January 9, 2018, the Board of Directors of the RDA (the “Board”) approved resolution R-3-2018 approving the terms of a loan to Housing Assistance Management Enterprise (the “Developer”) in connection with a mixed-income housing project to be known as “Capitol Homes Apartments” (the “Project”). When completed, the Project will include approximately 90 mixed-income residential units with 2,300 square feet of commercial space.
WHEREAS, the loan is structured in two phases. Phase I was executed in 2018 as a short-term loan in the amount of $2,750,000 for acquisition and predevelopment costs. Phase II will be provided as a construction-to-permanent financing loan in an amount of up to $3,200,000, which shall include the outstanding balance of the loan provided through Phase I and any additional funds up to $3,200,000.
WHEREAS, prior to entering Phase II of the loan, certain conditions must be achieved pursuant to the approved terms. One condition is the loan-to-appraised-value must meet a threshold of 95% or below.
WHEREAS, the Developer has applied to the RDA for an amendment to the Phase II term sheet to waive the 95% loan-to-appraised-value requirement to facilitate the long-term financing of the Project.
WHEREAS, the RDA staff recommends waiving the 95% loan-to-appraised-value requirement as provided in Attachment A: Phase II Loan Amended Term Sheet (the “Amended Term Sheet”). There are no other changes in the Amended Term Sheet from the original Phase II loan approval.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City that it approves the Phase II loan outlined in the Amended Term Sheet attached as Exhibit A, 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 Amended 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 14th day of April, 2020.