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RESOLUTION NO. 40 OF 2019
Authorizing a loan from Salt Lake City’s Housing Trust Fund
To STH Magnolia LLC
(The Magnolia)
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, STH Magnolia LLC (“Developer”) has applied to the City for a loan to facilitate the development of permanent supportive housing (the “Project”) located at 165 South 300 East, Salt Lake City, Utah (the “Property”); and
WHEREAS, when complete, the site is projected to include 65 units, with 100% considered permanent supportive housing units targeting those at 25% of area median income and below; and
WHEREAS, in October 2018 the Housing Trust Fund Advisory Board (the “Board”) recommended approval of a loan to Developer in the amount of $1,000,000, which loan was approved by the City Council in December 2018; and
WHEREAS, due to increases in construction costs and financing changes, the Developer made another loan application for a loan in the amount of $1,500,000; and
WHEREAS, on October 7, 2019, the Board reviewed and recommended approval of the loan application for a loan to Developer in the amount of $1,500,000, and other terms and conditions as set forth on the attached term sheet (the “Term Sheet”); and
WHEREAS, the City recommends the loan described on the attached Term Sheet based on its underwriting of the Project.
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
1. That the City Council hereby approves issuing the loan outlined in the Term Sheet attached hereto, subject to revisions that do not materially adversely affect the rights and obligations of the City hereunder.
2. That Jacqueline M. Biskupski, Mayor of Salt Lake City, Utah, on behalf of Salt Lake City Corporation is hereby authorized to negotiate and execute the requisite loan documents 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, and to act in accordance with their terms.
Passed by the City Council of Salt Lake City, Utah, this 3rd day of December, 2019.