Proposed $250,000 zero-interest Midvale loan would release half before construction milestones
A term sheet before the Redevelopment Agency of Midvale City on Sept. 15, 2026 proposes a $250,000, seven-year, 0% loan to Post Exchange, LLC, doing business as The Vale. Half would be paid at signing, and the schedule says disbursements are not tied to construction or tenant improvement milestones.
Continuing story: Auditing Midvale
The Redevelopment Agency of Midvale City's Sept. 15, 2026 agenda included Resolution 2026-25RDA, approving the term sheet for a business loan to Post Exchange, LLC, doing business as The Vale. [2]
The staff report describes a $250,000 loan, the program maximum, for building improvements, with a seven-year term at 0% interest. Staff said the proposal met the program's minimum threshold and qualified for the 0% incentive. [1]
Staff said the program's fiscal 2027 budget is $1 million and that $750,000 would remain for other projects after this loan. Staff also said loan authorization depends on legal review of the term sheet, which returns to the board for final approval. [1]
How the money would be paid out
Exhibit A of the term sheet splits the loan into two $125,000 disbursements. The first would be paid on execution of the loan agreement and customary prefunding conditions, and the schedule says it is not tied to construction or tenant improvement milestones. [1]
The final $125,000 would be paid after the borrower submits evidence, acceptable to the agency, that prior funds were spent or committed for permitted uses and that the project is advancing according to the approved plan. The schedule says the agency may require evidence of expenditures and may withhold or reallocate funds if proceeds are misused or costs deviate materially from the budget. [1]
Other terms
The term sheet calls for equal monthly principal payments, with the first due on the sooner of the first day of the first full month after opening or Feb. 1, 2027. Permitted uses are tenant improvements to the bar and restaurant area, equipment, fixtures, furniture and soft-opening costs. [1]
It requires collateral equal to 100% of the loan amount with a first-position lien for the agency, personal guarantees from all owners holding more than 20% of the business, and monthly receipts, invoices or other evidence of permitted use after funding. [1]
If required loan conditions are not met, the rate would rise to the current prime rate. Sums in default would accrue 18% annual interest, and late payments would carry a 5% fee. Prepayment is allowed without penalty. [1]
These are proposed terms from a meeting packet. The records reviewed do not show that the loan was approved, signed or funded.
Sources
- Redevelopment Agency of Midvale City · Sept. 15, 2026 packet (Sept. 1 minutes; Resolution 2026-25RDA term sheet)
- Redevelopment Agency of Midvale City · Sept. 15, 2026 meeting notice and agenda
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.