Split Midvale redevelopment board puts its $250,000 Main Street loan behind a bank's

The Redevelopment Agency of Midvale City voted 3-2 on Sept. 1, 2026 to move its lien on a $250,000 business loan behind a bank's, according to minutes in the board's Sept. 15 meeting packet. ^[1]

Resolution 2026-22RDA authorizes the agency's chief administrative officer to sign an agreement subordinating the agency's deed of trust for Midvale Main Partners II LLC in favor of a deed of trust held by Zions Bank. ^[1]

The loan and the request

Staff member Kate Andrus told the board the agency signed a loan agreement with Midvale Main Partners II LLC on June 27, 2024, for a $250,000 adaptive reuse loan on a Main Street property, and holds a recorded first-lien deed of trust. ^[1]

Staff said the borrower sought a $1,290,000 commercial equity loan from Zions Bank, which required a first-lien position. Staff cited an assessed value of about $2,173,300 from the Salt Lake County assessor and said it exceeds the combined debt, including the proposed loan. ^[1]

The safeguards staff listed limit the subordination to that Zions loan, cap the senior debt at $1.29 million including renewals, extensions or refinancings, require the agency's prior written consent to material changes, require notice of borrower defaults with a right to cure, and keep two Main Street facade improvement program easements in effect. Staff said the agency's original $250,000 loan is unaffected. ^[1]

The vote

Board members Bryant Brown and Paul Glover asked what Midvale would gain from the change. According to the minutes, Andrus said she did not know what the bank money would be used for and that it would not go to a Midvale Main project. Glover said the request concerned him. ^[1]

Heidi Robinson moved to suspend the rules and adopt the resolution, and Bonnie Billings seconded. Robinson, Billings and Denece Mikolash voted aye; Brown and Glover voted no. ^[1]

The minutes were listed for approval on the consent agenda of the board's Sept. 15 meeting. The records reviewed do not include the signed subordination agreement or a recorded copy. ^[2][1]