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RESOLUTION NO. 52 OF 2018
Authorizing a loan from Salt Lake City’s Housing Trust Fund
To Form Development and Cowboy Partners
(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 (“STH Magnolia”) has applied to the City for a loan to facilitate the development of permanent supportive housing located at 175 South 300 East, Salt Lake City, Utah (the “Property”); and
WHEREAS, when complete, the site is projected to include 65 units, with 65 considered permanent supportive housing units targeting those at 25% of area median income and below.
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 to STH Magnolia with the requirement that the loan proceeds shall be used to construct the Property for the development of a permanent supportive housing project. The loan documents that correspond to this loan shall include the following terms:
Loan Amount: $1,000,000 (to be reduced by the amount of the AHP grant if the AHP grant is awarded to the project)
Loan Maturity: 30 years
Interest Rate: 0%
Collateral: Trust Deed on the property – Third position behind Olene Walker Housing Loan Funds
Repayment: Contingent upon surplus cash flow after operations and supportive services
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 11th day of December, 2018.