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RESOLUTION NO. 5 OF 2018
Authorizing a Loan from Salt Lake City’s Housing Trust Fund
To Liberty Uptown
Associates, LLC
(Liberty Uptown)
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, Liberty Uptown Associates, LLC (“Liberty”) has applied to the City for a loan to facilitate the development of a mixed-income residential building located at 325 East 200 South, Salt Lake City, Utah (the “Property”); and
WHEREAS, when complete, the “Liberty Uptown” building is projected to consist of 46 affordable units, 63 market-rate units, and ground floor commercial space. Seven of the affordable units will serve those at 25% area median income or below, eight of the affordable units will serve those at 40% area median income or below, and 31 of the affordable units will serve those at 60% area median income or 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 Liberty with the requirement that the loan proceeds shall be used to fund development of an affordable housing project located at the Property. The loan documents that correspond to this loan shall include the following terms:
Loan Amount: $1,000,000
Loan Maturity: 42 years
Interest Rate: 2.5% per annum
Amortization: 35-year amortization after initial 2-year construction and lease up period, during which interest accrues and payments may be deferred
Collateral: Trust Deed on the Property – Shared Third position with Olene Walker Housing Trust Fund
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 16th day of January, 2018.