CRA approves $2 million disaster-relief loan to rebuild two storefronts on Main Street

The Salt Lake City CRA board voted unanimously on July 14 to approve a $2,000,000 disaster-relief loan to Chenzo LLC to finance reconstruction at approximately 319–321 S. Main Street, a property the board said suffered a total loss in the Aug. 11, 2025 Main Street fire.

Daley, the CRA presenter, explained the disaster relief loan program allows up to $1,000,000 per eligible commercial storefront. Because the pre-fire building contained two separate eligible storefronts, staff recommended combining two $1,000,000 loans into a single $2,000,000 loan. Daley said the total project cost is about $7,500,000, with $4,050,000 that qualifies as eligible reconstruction costs under the program; after applying approximately $1,200,000 in insurance proceeds there remains an eligible funding gap of $2,850,000 and the requested $2,000,000 loan would close part of that gap.

On loan terms, staff recommended 0% interest for the first 24 months and 2% thereafter, a 3-year loan term with a 10-year amortization schedule, construction draw disbursements, and a lien position to be determined prior to closing. A board member asked whether the project had cleared planning or design review; staff said the applicant had applied for a building permit and would continue through the standard review process, and that planning or zoning waivers would bring the matter back to the council if required. "Because the fire was designated as a qualifying event under the disaster loan policy, this project is eligible for assistance through the program," Daley said during the presentation.

The board voted to adopt the resolution approving the loan; the transcript records the vote as unanimous. Staff noted the DRLP program has until Aug. 11 for eligible applicants to apply and that CRA staff had received two DRLP applications to date.