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RESOLUTION NO. 37 OF 2016
AUTHORIZING A LOAN FROM
SALT LAKE CITY’S HOUSING TRUST FUND
TO NORTH 4TH LLC
WHEREAS, Salt Lake City Corporation (the City) has a Housing Trust Fund to encourage affordable and special needs housing development within the City; and
WHEREAS, North 4th, LLC has applied to the City for a loan to facilitate construction of Phase II of the North 4th Project, a multifamily development to be located at 529 West 400 North, Salt Lake City, Utah (the “Property”); and
WHEREAS, when complete, the North 4th Project will consist of 124 units, including an anticipated 80 affordable units available to persons with area median income (“AMI”) at or below 50%.
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
1. That the City Council hereby approves issuing a loan in the amount of one million five hundred twenty five thousand dollars ($1,525,000.00) to North 4th, LLC with the requirement that the loan proceeds shall be used to fund land acquisition and refinancing of debt associated with land acquisition for the North 4th Project located at 529 West 400 North, Salt Lake City, Utah. The loan documents that correspond to this loan shall include the following terms:
Loan Amount: $1,525,000.00
Loan Maturity: 3 years with a balloon payment due at loan maturity.
Interest Rate: 2.75% per annum
Amortization: Only interest will be paid during the 3-year term of the loan with a balloon payment for the remaining amount due at loan maturity.
Collateral: Trust deed on the Property in a first position
2. That Jacqueline M. Biskupski, Mayor of Salt Lake City, Utah, following approval of the City Attorney, is hereby authorized to execute the requisite loan documents on behalf of Salt Lake City Corporation and to act in accordance with their terms.
Passed by the City Council of Salt Lake City, Utah, this 6th day of December, 2016.