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RESOLUTION NO. 38 OF 2016
AUTHORIZING A LOAN FROM
SALT LAKE CITY’S HOUSING TRUST FUND
TO JF CAPITAL
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, JF Capital has applied to the City for a loan to facilitate the construction of the Granary Place apartment project, an affordable housing development to be located at 256 West 700 South, Salt Lake City Utah (the “Property”); and
WHEREAS, the City Council previously approved a resolution authorizing issuance of a loan to JF Capital in the amount of $500,000.00 for the purpose of funding construction of the Granary Place apartment project; and
WHEREAS, while the City and JF Capital were in the process of drafting the loan documents required to issue the $500,000.00 loan authorized by the City Council, JF Capital determined that it would need to borrow an additional $500,000.00 from the City and an additional $1,000,000.00 from the Olene Walker Housing Trust Fund in order to bridge an unanticipated financing gap and render the construction of the Granary Place apartments project fiscally viable; and
WHEREAS, JF Capital has now secured the additional $1,000,000.00 in financing from the Olene Walker Housing Trust Fund; and
WHEREAS, the City and JF Capital have not yet entered into a loan agreement with respect to the $500,000.00 loan amount previously contemplated by the City Council; and
WHEREAS, when complete, the Granary Place apartment project will consist of 134 units, all of which will be available to persons with area median incomes below 60%.
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
1. That the City Council hereby approves issuing a single loan in the total amount of $1,000,000.00 (consisting of the original $500,000.00 loan amount previously authorized by the City Council and an additional $500,000.00 to bridge JF Capital’s unanticipated funding gap) to JF Capital with the requirement that the loan proceeds shall be used to fund construction of the Granary Place apartments located at 256 West 700 South, Salt Lake City, Utah. The loan documents that correspond to this loan shall include the following terms:
Loan Amount: $ 1,000,000.00
Loan Maturity: 17 years
Interest Rate: 3% per annum
Amortization: 30-year amortization
Interest Only: Only interest will be paid during the 2-year construction period
Collateral: Trust Deed on the Property
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.