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HomeMy WebLinkAbout024 of 2020 - Diversion of Property Tax for a Community Reinvestment Project Area: 9-Line Interlocal with the RedeRESOLUTION NO. 24 OF 2020 Authorizing approval of an Interlocal CooperationAgreement between Salt Lake City Corporation and the Redevelopment Agency of Salt Lake City Authorizing Use of a Portion of Tax Increment to Support the Implementation of the 9 Line Community Reinvestment Area Plan WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (the Agency 9 Line Community Project Area the capture of tax increment within the boundaries of the Project Area which is further depicted in Exhibit A. WHEREAS, tax increment will be utilized to support commercial corridors and employment hubs to support living-wage jobs; attract and expand neighborhood retail and services; provide an array of housing choices to meet the needs of current residents while attracting new residents including new families; and increase neighborhood livability and safety. City desires to approve the use of its tax increment from the Project Area to support the community revitalization activities in accordance with the Community Reinvestment Agency Act. WHEREAS, the City desires to execute an interlocal agreement with the Agency in which the City will consent to the Agency being paid its share of the tax increment from the Project Area. THEREFORE, BE IT RESOLVED, by the City Council of Salt Lake City, Utah as follows: 1. It does hereby approve the execution and delivery of the following: INTERLOCAL COOPERATION AGREEMENT BETWEEN SALT LAKE CITY CORPORATION AND THE REDEVELOPMENT AGENCY OF SALT LAKE CITY [9 LINE COMMUNITY REINVESTMENT AREA TAX INCREMENT], EFFECTIVE ON THE DATE IT IS SIGNED BY ALL PARTIES. 2. Erin Mendenhall, Mayor of Salt Lake City, Utah or her designee is hereby authorized to approve, execute, and deliver said agreement on behalf of Salt Lake City Corporation, in substantially the same form as now before the City Council and attached hereto as Exhibit B, subject to such minor changes that do not materially affect the rights and obligations of the City thereunder and as shall be approved by the Mayor, her execution thereof to constitute conclusive evidence of such approval. PASSED by the City Council of Salt Lake City this 15 th day of September, 2020. SALT LAKE CITY COUNCIL Chris Wharton, Chair Attest: City Recorder Approved as to form: Dated: Allison Parks EXHIBIT A [Attach Depiction of Project Area] EXHIBIT B [Attach Form Interlocal Agreement ] 1 INTERLOCAL COOPERATION AGREEMENT BETWEEN SALT LAKE CITY CORPORATION AND THE REDEVELOPMENT AGENCY OF SALT LAKE CITY [9 Line Community Reinvestment Area Tax Increment] THIS INTERLOCAL COOPERATION AGREEMENT Agreement is executed as of __________, 2020 Effective Date , by and between the Redevelopment Agency of Salt Lake City (the Agency and Salt Lake City Corporation City (collectively, the Parties RECITALS A. Pursuant to Resolution No. R-24-2018 adopted by the Agency on August 21, 2018 and Ordinance 50-2018 adopted by the Salt Lake City Council on October 2, 2018, the 9 Line Community Reinvestment Area Project Area Plan , a copy of which is attached hereto as Exhibit A, which includes the legal description and a map of the 9 Line Community Reinvestment Area (the Project Area ). B. Under the Project Area Plan, the Agency desires to support commercial corridors and employment hubs to support living-wage jobs; attract and expand neighborhood retail and services; provide an array of housing choices to meet the needs of current residents while attracting new residents including new families; and increase neighborhood livability and safety. C. The City has determined that it is in its best interests to provide certain financial assistance through the use of Tax Increment (as defined below) to Agency for development as set forth in the Project Area Plan. D. The Agency anticipates using tax increment (as defined in Utah Code Section17C-1- 102(61)) (Tax Increment ) created by development activities in the Project Area to assist in development as set forth in the Project Area Plan. E. Utah Code Section 17C-5-204 authorizes the City to consent to the payment to the Agency of a portion of its share of Tax Increment generated from the Project Area for the purposes set forth in the Project Area Plan. 1.City Pursuant to Utah Code Section 17C-5-204, the City hereby agrees and consents that the Agency shall be entitled to retain seventy-five percent (75%) of the City portion of the Tax Increment from the Project Area for a term of twenty (20) years beginning with the 2021 tax year. The calculation of annual Tax Increment shall be made using (a) Salt for the City, and (b) the 2016 base year taxable value of $228,048,136, which taxable value is subject to adjustment as required by law. The City shall be entitled to the remaining 25% its Tax Increment each year during the specified twenty (20) year 2 period. Pursuant to Utah Code Subsection 17C-5-204(6)(d), the City is prohibited from proportionately reducing the Tax Increment the City consents to pay to the Agency by the amount of any direct expenditures the City makes within the Project Area for the benefit of the Project Area or the Agency. 2.Budget. Pursuant to Utah Code Subsection 17C-5-204(6)(c), a copy of the Project Area budget is attached hereto as Exhibit B. 3.Interlocal Cooperation Act. In satisfaction of the requirements of Utah Code Chapter 11-13 (the Interlocal Cooperation Act in connection with this Agreement, the Parties agree as follows: a. This Agreement shall be authorized and adopted by resolution of the legislative body of each Party pursuant to and in accordance with the provisions of Section 11-13-202.5 of the Interlocal Cooperation Act. b. This Agreement shall be reviewed as to proper form and compliance with applicable law by a duly authorized attorney on behalf of each Party pursuant to and in accordance with the Section 11-13-202.5(3) of the Interlocal Cooperation Act. c. Except as otherwise specifically provided herein, each Party shall be responsible for its own costs of any action taken pursuant to this Agreement, and for any financing of such costs. d. A duly executed original counterpart of this Agreement shall be filed immediately with the keeper of records of each Party pursuant to Section 11-13-209 of the Interlocal Cooperation Act. e. No separate legal entity is created by the terms of this Agreement. The Executive Director of the Agency is hereby designated the administrator for all purposes of the Interlocal Cooperation Act, pursuant to Section 11-13-207 of the Interlocal Cooperation Act. f. Following the execution of this Agreement by each of the Parties, each Party shall cause a notice regarding this Agreement to be published in accordance with Section 11-13-219 of the Interlocal Cooperation Act. g. No real or personal property shall be acquired jointly by the Parties as a result of this Agreement. To the extent a Party acquires, holds, or disposes of any real or personal property for use in the joint or cooperative undertaking contemplated by this Agreement, such Party shall do so in the same manner that it deals with other property of such Party. 4.Modification and Amendment. Any modification of or amendment to any provision of this Agreement shall be effective only if the modification or amendment is in writing and signed by each of the Parties. Any oral representation or modification concerning this Agreement shall be of no force or effect. 3 5.Further Assurance. Each of the Parties hereto agrees to cooperate in good faith with the other, to execute and deliver such further documents, to adopt any resolutions, to take any other official action, and to perform such other acts as may be reasonably necessary or appropriate to consummate and carry into effect the transactions contemplated under this Agreement. 6.Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Utah. 7.Authorization. Each of the Parties hereto represents and warrants to the other that the warranting Party has taken all steps, including the publication of public notice where necessary, in order to authorize the execution, delivery, and performance of this Agreement by each such Party. Executed to be effective as of the Effective Date. REDEVELOPMENT AGENCY OF SALT LAKE CITY Erin Mendenhall, Executive Director Approved as to form: ___________________________________ Allison Parks SALT LAKE CITY CORPORATION Mayor Erin Mendenhall Attest: ___________________________________ Salt Lake City Recorder Approved as to form: _____________________________ Katie Lewis 4 EXHIBIT A [Attach Project Area Plan] 5 EXHIBIT B Salt Lake City Corporation Portion of Tax Increment from the 9 Line Community Reinvestment Area Agency -five percent (75%) of Salt Lake City Corporation portion of the Tax Increment from the 9 Line Community Reinvestment Area (the Project Area with the 2021 tax year. The calculation of annual Tax Increment shall be made using (a) Salt City, and (b) the 2016 base year taxable value of $228,048,136, which taxable value is subject to adjustment as required by law. T TI Project Area Plan I. BUDGET ALLOCATIONS Budget allocations from the 75% of TI collected from the City shall be as follows: Activity Percentage 1. Redevelopment Activities 80% 2. Housing 10% 3. Administration and Operations 10% Total 100% Description of activities is as follows: 1.Redevelopment Activities:The TI expected to be used to carry out project development activities as further described in the Project Area Plan. Activities may include, but not be limited to, land acquisition, public improvements, infrastructure improvements, loans, grants, and other incentives to public and private entities. 2.Housing:The tax increment expected to be used for housing activities pursuant to Utah Code 17C. Housing funds generated from the City shall be geographically restricted for use within the Project Area. 3.Administration and Operations:The tax increment expected to be used to cover the Agency operating costs of administering and implementing the Project Area Plan.