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Home My WebLink About017 of 2020 - Diversion of Property Tax for a Community Reinvestment Project Area: State Street Interlocal with th1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. __________ of 2020 Interlocal Agreement Authorizing Use of a Portion of Tax Increment to Support the Implementation of the State Street Community Reinvestment Area Plan RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AUTHORIZING THE EXECUTION OF AN INTERLOCAL AGREEMENT AUTHORIZING USE OF A PORTION OF TAX INCREMENT TO SUPPORT THE IMPLEMENTATION OF THE STATE STREET COMMUNITY REINVESTMENT AREA PLAN WHEREAS, pursuant to Chapter 5, Community Reinvestment, of Title 17C of the Utah Code (the “Act”), the Redevelopment Agency of Salt Lake City (“Agency”) may approve a community reinvestment project area plan for the purpose of supporting community revitalization within a designated project area. WHEREAS, the Board of Directors of the Agency approved the State Street Project Area (“Project Area”) to facilitate the capture of tax increment within the boundaries of the Project Area which is further depicted in Exhibit A. WHEREAS, tax increment will be used 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. WHEREAS, Salt Lake City School District (the “District”) has approved the use of its tax increment from the Project Area to support the community revitalization activities in accordance with the Act, and doing so will require authorization of an interlocal agreement between the District and the Agency. WHEREAS, the parties desire to execute the interlocal agreement in which the District will consent to the Agency being paid its share of the tax increment from the Project Area and will detail the Agency’s collection period for the tax increment. The interlocal agreement does not create an interlocal entity. R 20-2 R-17-2020 2 NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1.It does hereby approve the execution and delivery of the following: INTERLOCAL COOPERATION AGREEMENT [STATE STREET COMMUNITY REINVESTMENT AREA TAX INCREMENT], EFFECTIVE ON THE DATE IT IS SIGNED BY ALL PARTIES. 2.Erin Mendenhall, Executive Director of the Redevelopment Agency of Salt Lake City or her designee is hereby authorized to approve, execute, and deliver said agreement on behalf of the Redevelopment Agency of Salt Lake City, in substantially the same form as now before the Redevelopment Agency of Salt Lake City Board of Directors and attached hereto as Exhibit B, subject to such minor changes that do not materially affect the rights and obligations of the Redevelopment Agency thereunder and as shall be approved by the Executive Director, her execution thereof to constitute conclusive evidence of such approval. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ________ day of __________, 2020. Amy Fowler, Chair Transmitted to the Executive Director on . The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting. Erin Mendenhall, Executive Director 29th September Amy Fowler (Oct 12, 2020 11:39 MDT) Erin Mendenhall (Oct 13, 2020 16:26 MDT) 10/13/2020 4 3 Approved as to form: Salt Lake City Attorney’s Office Attest: City Recorder Allison Parks, August 26, 2020 Cindy Trishman (Oct 13, 2020 17:03 MDT) 4 EXHIBIT A [Attach Depiction of Project Area] State Street CRA Plan 5 EXHIBIT B [Attach Form Interlocal Agreement] 1 INTERLOCAL COOPERATION AGREEMENT [State Street 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 Board of Education of Salt Lake City School District (the “District”) (collectively, the “Parties”). RECITALS A. Pursuant to Resolution No. R-25-2018 adopted by the Agency on August 21, 2018 and Ordinance 51-2018 adopted by the Salt Lake City Council on October 2, 2018, the State Street Community Reinvestment Area Plan (the “Project Area Plan”) has been approved, a copy of which is attached hereto as Exhibit A, which includes the legal description and a map of the State Street 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 District 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 § 17C-1-102(60)) (“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 § 17C-5-204 authorizes the District 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. NOW, THEREFORE, for good and valuable consideration, the Parties agree as follows: 1. District’s Consent. Pursuant to Utah Code § 17C-5-204, the District hereby agrees and consents that the Agency shall be entitled to retain seventy-five percent (75%) of the District’s 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 Lake County’s then current tax levy rate for the District, and (b) the 2016 base year taxable value of $889,305,536, which taxable value is subject to adjustment as required by law. The District shall be entitled to the remaining 25% its Tax Increment each year during the specified twenty (20) year period. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D 2 2. Budget. Pursuant to Utah Code § 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 § 11- 13, et seq. (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 imm ediately 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. 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. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D 3 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: Salt Lake City Attorney’s Office ___________________________________ Allison Parks Attest: ___________________________________ Salt Lake City Recorder BOARD OF EDUCATION OF SALT LAKE CITY SCHOOL DISTRICT Janet Roberts, Business Administrator DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D 3/5/2020 4 EXHIBIT A [Attach Project Area Plan] DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D REDEVELOPMENT AGENCY OF SALT LAKE CITY I DEPARTMENT OF ECONOMIC DEVELOPMENT FINAL STATE STREET COMMUNITY REINVESTMENT AREA PLAN DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street COMMUNITY REINVESTMENT AREA PLAN RDA BOARD OF DIRECTORS James Rogers, District 1 Andrew Johnston, District 2 Chris Wharton, District 3 Derek Kitchen, District 4 Erin Mendenhall, District 5 Charlie Luke, District 6 Amy Fowler, District 7 MAYOR RDA EXECUTIVE DIRECTOR Jacqueline M. Biskupski DEPARTMENT OF ECONOMIC DEVELOPMENT DIRECTOR RDA CHIEF EXECUTIVE OFFICER Lara Fritts RDA CHIEF OPERATING OFFICER Danny Walz ACKNOWLEDGEMENTS: FINAL DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D CONTENTS i) INTRODUCTION ........................................................................................................4 1) COMMUNITY REINVESTMENT ANALYSIS (17C-5-105) ................................................7 1(a): PROJECT AREA BOUNDARY DESCRIPTION .............................................................................7 1(b): EXISTING LAND USES AND NEIGHBORHOOD CONTEXT ...........................................................9 1(c): STANDARDS TO GUIDE PROJECT AREA DEVELOPMENT .........................................................12 1(d): FURTHERING PURPOSES OF UTAH TITLE 17C .....................................................................13 1(e): GENERAL PLAN CONSISTENCY ...........................................................................................17 1(f): ELIMINATION OR REDUCTION OF BLIGHT ............................................................................18 1(g): SPECIFIC PROJECT AREA DEVELOPMENT ............................................................................18 1(h): PROCESS OF SELECTING PARTICIPANTS .............................................................................19 1(i): REASON FOR SELECTING THE PROJECT AREA ......................................................................19 1(j): EXISTING PHYSICAL, SOCIAL, ECONOMIC CONDITIONS .........................................................20 1(k): FINANCIAL ASSISTANCE OFFERED TO PARTICIPANTS ...........................................................25 1(l): PUBLIC BENEFIT ANALYSIS SUMMARY ................................................................................26 1(m): HISTORIC PRESERVATION .................................................................................................30 1(n): INTERLOCAL AGREEMENT .................................................................................................30 1(o)(i): OTHER INFORMATION - GEOGRAPHIC FOCUS AREAS .........................................................31 1(o)(ii): OTHER INFORMATION - COMMUNITY OUTREACH ..............................................................32 2) PROJECT AREA BUDGET (17C-5-303) ......................................................................35 2.1(a): BASE TAXABLE VALUE ....................................................................................................36 2.1(b): PROJECTED AMOUNT OF TIF ...........................................................................................36 2.1(c): COLLECTION PERIOD .....................................................................................................36 2.1(d): TIF PAID TO OTHER TAXING ENTITIES ..............................................................................36 2.1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY ..................................................36 2.1(f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE .................................................................37 2.1(g): MAXIMUM CUMULATIVE DOLLAR AMOUNT ........................................................................37 2.2: SALES AND USE TAX REVENUE ...........................................................................................37 2.3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN ........................................................37 2.4: RDA’S COMBINED INCREMENTAL VALUE ..............................................................................38 2.5: PROJECT AREA FUNDS USED FOR ADMINISTRATION .............................................................38 2.6: EXPECTED SALES PRICE FOR PROPERTY THE RDA OWNS ......................................................38 EXHIBIT A: STATE STREET CRIME 6/1/14 TO 5/31/15 EXHIBIT B: POTENTIAL PROJECT AREA RESEARCH REPORT EXHIBIT C: PUBLIC BENEFIT ANALYSIS AND PROJECT AREA BUDGET DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 4 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 5 – State Street CRA Plan    DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 6 – State Street CRA Plan     DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 7 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 8 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 9 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 10 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 11 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 12 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 13 – State Street CRA Plan  DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 14 – State Street CRA Plan    o o       DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 15 – State Street CRA Plan           DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 16 – State Street CRA Plan          DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 17 – State Street CRA Plan             DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 18 – State Street CRA Plan            DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 19 – State Street CRA Plan     o o o o o o DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 20 – State Street CRA Plan       DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 21 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 22 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 23 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 24 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 25 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 26 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 27 – State Street CRA Plan      DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 28 – State Street CRA Plan    DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 29 – State Street CRA Plan       DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 30 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 31 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 32 – State Street CRA Plan   o o o o          DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 33 – State Street CRA Plan   DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 34 – State Street CRA Plan    DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 35 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 36 – State Street CRA Plan DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 37 – State Street CRA Plan  DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page 38 – State Street CRA Plan   DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Exhibit A State Street Crime in the Past Year (6/1/14-5/31/15) DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State St600 S 700 S 800 S 900 S 1300 S Harvard Ave Major StYale AveEdison StEdith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pton Pl Gregory Pl Foulger StStringfellow CtMajor StHerbert Ave Major StEdison St4 0 500 1,000250 Feet State Street Crime in the Past Year Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015 Type Count ALCOHOL IN VEH 2 ARSON 2 ASSAULT 253 BURGLARY 83 COMMERCIAL SEX 34 COUNTERFEITING 3 DAMAGED PROP 88 DRUGS 140 DUI - CLS A 1 DUI ALCOHOL 33 DUI DRUGS 4 EMBEZZLEMENT 2 ESCAPE 272 FAMILY OFFENSES 31 FLEEING 5 FORGERY 46 FRAUD 78 HIT AND RUN 41 INV OF PRIVACY 56 KIDNAP 4 LARCENY 560 LIQUOR 14 MORALS-DECENCY 6 OBST JUDICIAL 6 OBST POLICE 35 PUBLIC ORDER 70 PUBLIC PEACE 34 ROBBERY 38 SEX OFFENSES 1 SEXUAL ASSAULT 16 SEXUAL OFFENSE 11 STOLEN PROP 28 STOLEN VEHICLE 88 TA-INJ/ALCOHOL 1 TRAFFIC 8 WEAPON OFFENSE 10State StMajor St2100 S 1700 S 1300 S 200 ECleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Edison StGarfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Westmin ster Ave200EEdison StEdisonStEdison St500 S Main St200 EMain St200 EPrimary offenses recorded by SLC Police Department 6/1/14 - 5/31/15 Legend Crime Density High Low DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Exhibit B Potential Project Area Research Report: State Street DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street - 1 Potential Project Area Research Report: State Street Introduction: State Street is a major gateway into downtown, but it currently aesthetically misrepresents our city. The proposed State Street project area is located between 500 South and 2100 South from Main Street to 200 East. This project area will be a major tax increment generator focused on revitalizing underused structures and creating opportunities for redevelopment along the State Street corridor, while improving the overall look and feel of the corridor. The S-Line Streetcar crosses State Street just south of the project area, which is outside of Salt Lake City’s municipal boundary, but could possibly provide a starting point for activity generation and a major impetus for development of commercial and mixed-use including housing within the corridor. Relevant Data: Area Acreage: ~314 acres Zoning Designations/Area Percentage: Zoning Type Acreage % of Total Commercial 134.10 43% Downtown 81.58 26% Institutional and Public Land 35.25 11% Single Family Residential 53.05 17% Multi-Family Residential 10.14 3% TOTAL 314.12 100% As shown in the attached “State Street, Zoning” map, the majority of the parcels within the project area boundaries are designated for commercial and business uses, with a smaller number designated for residential uses. There are also two properties (Salt Lake Community College and the Salt Lake County Government Center) that are designated as institutional/public land. Crime Data: The attached map of “State Street, Crime in the Past Year” shows a list and hot spot map of all primary offenses recorded by the Salt Lake City Police Department during the time period of June 1, 2014 to May 31, 2015. As shown in the map, there are multiple areas with high density crime, with the highest areas near the northeast corner of State Street and 900 South, and on the east side of State Street, between 800 South and 700 South. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street - 2 Current Public Transit Availability: As shown in the attached map of “State Street, Employment and Mass Transit,” the proposed State Street project area has one main bus route, the 200, running north and south along State Street. In addition to this primary bus route, the 21, 17, 9, and 451 cross State Street within the project area boundaries at 2100 South, 1700 South, 900 South, and 600 South, respectively. In terms of weekday bus frequency, the 200 and 21 run every 15 minutes, the 9 and 17 run every 30 minutes, and the 451 is the Tooele Express, which runs three times in the morning and three times in the evening. The S-line streetcar crosses State Street just south of the project area, and outside of Salt Lake City’s municipal boundary, (between Wentworth Ave and Truman Ave, just south of 2100 S), and the 400 South light rail line is located one block north of the project area. Major Employment and Commercial Centers: The number of businesses within the proposed State Street project area, and the number of employees at each business, is shown in the attached map of “State Street, Employment and Mass Transit.” As shown in the map, there are many businesses located within the project area, the majority of which are relatively small (1-40 employees), and a few that are relatively large (111-304 employees, and 305-613 employees). Some types of existing businesses within the subject area include motels, pawn shops, small retail clothing/boutiques, ethnic grocers, restaurants, bars, and automobile dealerships. City/County/Institutional Plans Master Plan Goals: The proposed State Street project area falls within the Central Community Master Plan, as well as the neighborhood planning areas of Downtown, Liberty, and People’s Freeway. In general, the Central Community Master Plan emphasizes the need for livable communities and neighborhoods, vital and sustainable commerce, unique and active places, and pedestrian mobility and accessibility. This area is also included in the Draft Downtown Community Plan (May 2015). The following is a list of applicable elements of the Master Plan and Draft Downtown Community Plan goals and visions that could be accomplished through redevelopment of the State Street potential project area: • Create an enhanced built environment to encourage employees to work and live in the Central Community and support the creation of smaller locally owned businesses. • Maintain a variety of residential land uses, including preservation of housing stock that improves neighborhood character. • Appropriately transition between multi-family housing and mixed land uses in designated areas to support sustainable development. • Improve pedestrian movement along arterials and collectors to ensure pedestrian safety, and develop ways to address the isolation between major roadways and improve pedestrian orientation. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street - 3 • Locate higher density residential land uses are near commercial areas, light rail stations, and open space. • Eliminate problems associated with pawnshops, prostitution, and undesirable activities on State Street. • Preserve historic structures that contribute to the culture of the community, and use design guidelines and review processes to ensure that new construction is compatible with the surrounding areas and established land use patterns. • Maintain a variety of park sites and open spaces so residents can enjoy active and passive recreation space. • Increase pedestrian accessibility and cultural activities to encourage more housing that supports the employment center of the downtown area. Recent or Planned Changes to Zoning: The current Draft Downtown Community Plan (May 2015) includes a section on State Street and the zoning framework for the corridor. The Planning Division is considering rezoning the corridor along State Street to encourage midrise mixed-use development to help promote short-term redevelopment. Wasatch 2040: There are ten strategies for local governments to implement the Wasatch Choice for 2040 (WC2040) vision. Strategy I is the most applicable to the work of the RDA, and it includes seven characteristics to be used to identify priority reuse areas. The table below identifies which of these seven characteristics applies to the State Street project area. WC2040 states that reuse efforts should focus on areas that have at least three of the seven characteristics. Characteristics Identified for Priority Reuse Areas State Street The area has underutilized infrastructure. The location includes pedestrian-friendly physical characteristics or the potential for such. ● Reuse would further other neighborhood revitalization objectives. ● The area is located close to frequent transit service and has adequate automobile access. ● An analysis indicates raw financial potential for reuse. ● An unmet demand for workforce housing or compact housing develops in the community. ● The area has “character” – a strong identity or sense of place. ● Of the remaining nine strategies in WC2040, the following were identified as relevant to the State Street project area: • Strategy II: Provide Incentives for Contiguous Growth and Infill • Strategy IV: Create Walkable Commercial and Mixed-Use Districts • Strategy VII: Create a Plan for Workforce Housing DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street - 4 Plan Salt Lake: Plan Salt Lake comprises the following thirteen guiding principles: 1) Neighborhoods, 2) Growth, 3) Housing, 4) Transportation & Mobility, 5) Air Quality, 6) Natural Environment, 7) Parks & Recreation, 8) Beautiful City, 9) Preservation, 10) Arts & Culture, 11) Equity, 12) Economy, and 13) Government. Although all of these principles apply, in some way, to the work of the RDA, we focused on a subset of them (shown in bold and green text above) to highlight specific initiatives that could apply to Master Plan goals in the project area. The initiatives that apply most specifically to the State Street project area are listed below: • Create a safe and convenient place for people to carry out their daily lives. • Encourage and support local businesses and neighborhood business districts. • Provide opportunities for and promotion of social interaction. • Locate new development in areas with existing infrastructure and amenities, such as transit and transportation corridors. • Encourage a mix of land uses. • Ensure access to affordable citywide housing, including rental and very low income. • Enable moderate density increases within existing neighborhoods where appropriate. • Make walking and cycling viable, and safe and convenient transportation options in all areas of the City. • Incorporate pedestrian oriented elements… into our rights-of-way and transportation networks. • Reinforce downtown as the visually dominant center of the City through the use of design standards and guidelines. • Identify and establish standards for key gateways into the City. • Balance preservation with flexibility for change and growth. • Foster and support growth of the creative economy sector. Salt Lake County CDA Policy Conformance: The attached table of “State Street Potential Project Area – Salt Lake County CDA Project Considerations” shows that this project area would likely be considered a favorable project area. Project Area Strategies: Infrastructure Improvement: Both the UTA Transit Network Plan and Utah’s Unified Transit Plan identify a Bus Rapid Transit line on State Street. Safer east-west pedestrian crossings at State Street are needed. SLC Engineering identified the need to standardize the street beautification elements along State Street, as well as current drainage challenges. Note: The City is responsible for the sidewalk and park strip while UDOT is responsible for the street. Housing: The State Street corridor contains a mix of commercial interspersed with small single family residential neighborhoods. The RDA can assist by stabilizing existing neighborhoods while creating new quality mixed use and commercial developments. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street - 5 Economic Development: The SLC Economic Development Division strongly recommends State Street as a new project area, as well as including both sides of Main Street in the redevelopment area. The redevelopment of this portion of State Street provides significant opportunities to revitalize older buildings and create new leasable spaces to help establish more commercial and mixed use along the corridor. Blight Mitigation: If this project area is considered for an Urban Renewal Area, a blight study will need to be conducted as part of the project area creation process. RDA-City Financing/Program Tools RDA Tax Increment: Tax increment over a 25-year project area period was estimated for each potential project area, using 2014 tax revenue as the base value and an annual growth rate of 2%. The net present value of the total annual tax increment was calculated using a 5% discount rate. Estimated Tax Increment Projections, 2016-2041: Project Area 25-Year Projected Tax Increment* State Street $18,583,426 *Based on 100% TI Capture by RDA City Funding Objectives/Financing Tools: Below are RDA and City programs that may be utilized in this project area. The City has numerous programs to leverage Tax Increment Funding, however, consideration of specific programs beyond those listed below can be made in the next phase of the New Project Area Creation Process. RDA Loan Programs: The RDA can assist property owners with building renovation and new construction. It offers the following assistance programs: • New Construction Loan Program • Building Renovation Loan Program • Environmental Assessment and Remediation Loan Program • Property Acquisition Loan Program • Tax Increment Reimbursement Program City Assistance Programs: Salt Lake City can partner with the RDA and/or property owners in the project area using the following programs: • Capital Improvement Program • Community Improvement & Outreach Grants • Small Business Revolving Loan Fund • Community Development Block Grant (may only apply to certain parts of this area) • HAND Housing Programs (HOME, First Time Home Buyer, Housing Trust Fund) • Class C Road Funds DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street potential project area 2100 South 500 South 200 East200 EastMain StreetMain Street1300 South DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street potential project area 2100 South200 East200 EastMain StreetMain Street1300 South 1300 South 500 South - 1300 South 1300 South - 2100 South 500 South DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State St600 S 700 S 800 S 900 S 1300 S Harvard Ave Major StYale AveEdison StEdith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pto n Pl Gregory Pl Foulger StStringfellow CtMajor StHerbert Ave Major StEdison St4 0 500 1,000250 Feet State Street Building Value / Land Value Legend Non Residential BLDG / LAND 0 - 0.79 0.8 - 1.2 > 1.21 Residential BLDG / LAND 0 - 0.79 0.8 - 1.2 > 1.21 Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015State StMajor St2100 S 1700 S 1300 S 200 ECleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Edison StGarfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Westminster Ave200EEdison StEdisonStEdison St500 S Main St200 EMain St200 EDocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State St600 S 700 S 800 S 900 S 1300 S Harvard Ave Major StYale AveEdison StEdith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pton Pl Gregory Pl Foulger StStringfellow CtMajor StHerbert Ave Major StEdison St4 0 500 1,000250 Feet State Street Crime in the Past Year Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015 Type Count ALCOHOL IN VEH 2 ARSON 2 ASSAULT 253 BURGLARY 83 COMMERCIAL SEX 34 COUNTERFEITING 3 DAMAGED PROP 88 DRUGS 140 DUI - CLS A 1 DUI ALCOHOL 33 DUI DRUGS 4 EMBEZZLEMENT 2 ESCAPE 272 FAMILY OFFENSES 31 FLEEING 5 FORGERY 46 FRAUD 78 HIT AND RUN 41 INV OF PRIVACY 56 KIDNAP 4 LARCENY 560 LIQUOR 14 MORALS-DECENCY 6 OBST JUDICIAL 6 OBST POLICE 35 PUBLIC ORDER 70 PUBLIC PEACE 34 ROBBERY 38 SEX OFFENSES 1 SEXUAL ASSAULT 16 SEXUAL OFFENSE 11 STOLEN PROP 28 STOLEN VEHICLE 88 TA-INJ/ALCOHOL 1 TRAFFIC 8 WEAPON OFFENSE 10State StMajor St2100 S 1700 S 1300 S 200 ECleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Edison StGarfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Westmin ster Ave200EEdison StEdisonStEdison St500 S Main St200 EMain St200 EPrimary offenses recorded by SLC Police Department 6/1/14 - 5/31/15 Legend Crime Density High Low DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State St600 S 700 S 800 S 900 S 1300 S Harvard Ave Major StYale AveEdison StEdith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pt on Pl Gregory Pl Foulger StStringfellow CtMajor StHerbert Ave Major StEdison St4 0 500 1,000250 Feet State Street Parcel Value Change Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015State StMajor St2100 S 1700 S 1300 S 200 ECleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Edison StGarfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Wes tminster Ave200EEdison StEdisonStEdison St500 S Main St200 EMain St200 ELegend Parcel Value Percent Change 2009 - 2014 < -90% -90% to -11% -10% to 10% 11% to 200% >200% DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D B B B B B B B B B B B B B B B B B B B State St600 S 700 S 800 S 900 S 1300 S Harvard Ave Major StYale AveEdison StEdith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pt on Pl Gregory Pl Foulger StStringfellow CtMajor StHerbert Ave Major StEdison St4 0 500 1,000250 Feet State Street Employment & Mass Transit Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015 B B B B B B B B B B B B BBB B B B B B B B B B B B State StMajor St2100 S 1700 S 1300 S 200 ECleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Edison StGarfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Wes tmins ter Ave200EEdison StEdisonStEdison St500 S Main St200 EMain St200 E451 9 Legend Employee CountPer Business 1 - 11 12 - 40 41 - 110 111 - 304 305 - 613 B uta_bus_stops uta_bus_routes T uta_rail_stops uta_rail_lines 17 21 200 Bus Route Number DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State St600 S 700 S 800 S 900 S 1300 S Harvard Ave Major StYale AveEdison StEdith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pt on Pl Gregory Pl Foulger StStringfellow CtMajor StHerbert Ave Major StEdison StD-1 D-2 D-2 D-2 CC CC D-2 D-2 D-2 D-2 D-2 CC D-2 CND-2 D-1 CC CCCC CC CCCC CC CC CC CC RMF-35 CN R-1-5000 R-1-5000 R-1-5000 CC RMF-75 R-1-5000 R-1-5000 CC R-1-5000 CC CC CC CC CC CC SR-3 R-1-5000 SR-3 R-1-5000 R-1-5000 CC R-1-5000 CC RMF-45 D-2 R-1-5000 R-1-5000 D-1 D-2 D-2 D-2 CC CC D-2 D-2 D-2 D-2 D-2 CC D-2 CND-2 D-1 CC CCCC CC CC CC CC CC CC RMF-35 CC CN R-1-5000 R-1-5000 CC RMF-75 R-1-5000 CC SR-3 R-1-5000 R-1-5000 SR-3 CC CC CC CC CC CC CC D-2 4 0 500 1,000250 Feet State Street Zoning Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015State StMajor St2100 S 1700 S 1300 S 200 ECleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Edison StGarfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Westminster Ave200EEdison StEdisonStEdison StI BP PL CC CC CC CC CC CC CC CC CCCC CCCC CC CC CC CC CC CC CC CC R-1-5000 CC CC RMF-75 CC CC R-1-5000 CC CCCC CC CC R-1-5000 CC CCCC CC CCCC R-1-5000 CCCC R-1-5000 RMF-45 R-1-5000 R-1-5000 R-1-5000 R-1-5000 R-1-5000 R-1-5000 R-1-5000 CC R-1-5000 R-1-5000 R-1-5000 R-1-5000 R-1-5000 R-1-5000 R-1-5000 I BP PL CC CC CC CC CC CC CC CC CCCC CCCC CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC R-1-5000 R-1-5000 RMF-75 CC R-1-5000 RMF-45 R-1-5000 CC CCCC CC R-1-5000 R-1-5000 R-1-5000R-1-5000 CC CC R-1-5000 CC R-1-5000 CCCC R-1-5000R-1-5000 R-1-5000 LegendZoning Districts Organizedby Zoning Type Commercial Downtown Institutional and Public Land Single Family Residential Multi-Family Residential 500 S Main St200 EMain St200 EDocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D State Street Potential Project Area - Salt Lake County Community Development Area (CDA) Project Considerations1 1Table presents select CDA Project Considerations derived from Salt Lake County, Countywide Policy and Procedures on Community Development Areas: https://slco.org/economic-development/redevelopment-area-resources/. The criteria presented in the table are those that are general enough to apply at this stage of potential project area ranking; additional Salt Lake County Policy Criteria will apply to specific CDA terms that would be negotiated once the project areas are ranked; these are listed below. Other (favorable) Salt Lake County CDA Project Considerations – to be negotiated once project areas are ranked:  Project is one where County’s tax increment participation period is limited to 20 years or less.  Project is one where County’s tax increment participation rate is limited to 75% or less.  Project is one where County’s cumulative tax increment contribution to the agency is capped at a specified dollar amount.  Project is one where County’s tax increment dollars will be used primarily to pay for or reimburse the cost of “public infrastructure and improvements,” as defined by Utah Code 17C-1-102(41), environmental remediation, and/or site preparation.  Project is one where the local jurisdiction2 is participating in the proposed project at a rate of at least $1 for every $1 contributed by the County from all sources, inclusive of any County Library contributions, either upfront or over the life of the proposed County contribution. The local jurisdiction can demonstrate that it is contributing other resources in addition to CDA proceeds and infrastructure, the value of which is equal to or greater than the prescribed ratio of participation. 2“Local jurisdiction” includes a City’s CDA participation plus any contribution from all other taxing entities (i.e., mosquito abatement district, water district, fire service area, law enforcement area, etc.) except for the school district participation which is not included in the $1:$1 ratio calculation. CDA Project Criterion Yes No Maybe Favorable Considerations Project would not happen in a reasonable timeframe, or at proposed amenity level, but for the creation of the CDA and use of tax increment financing. ● Project is transit-supported, mixed-use development with significant employment potential. ● Project is located in strategic growth area as defined in the Wasatch Choice for 2040 and/or the regional transportation plan. ● Project will complement regionally significant community planning efforts. ● Project will create long-term, high-paying jobs. ● Unfavorable Considerations Project Area is predominantly market-rate housing. ● Project Area is predominantly retail (if yes, material justification for CDA will be evaluated on a case-by-case basis). ● Project Area is predominantly standalone single-family dwellings. ● Project will merely cause a relocation of jobs or retail sales from one area in the County to another area in the County. ● Project will involve development on sensitive land designated as open space, foothill, canyon, or other County-designated priority area. ● DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Exhibit C Public Benefit Analysis and Project Area Budget State Street Community Reinvestment Area (DRAFT) DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D PUBLIC BENEFIT ANALYSIS AND PROJECT AREA BUDGET STATE STREET COMMUNITY REINVESTMENT AREA (CRA) REDEVELOPMENT AGENCY OF SALT LAKE CITY, UTAH APRIL 2018 DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 2 Table of Contents TABLE OF CONTENTS ......................................................................................................................................... 2 SECTION 1: INTRODUCTION .............................................................................................................................. 3 SECTION 2: DESCRIPTION OF COMMUNITY DEVELOPMENT PROJECT AREA ................................................. 3 SECTION 3: GENERAL OVERVIEW OF PROJECT AREA BUDGET ....................................................................... 4 SECTION 4: PROPERTY TAX INCREMENT .......................................................................................................... 5 SECTION 5: COST/BENEFIT ANALYSIS ............................................................................................................... 8 EXHIBIT A: PROJECT AREA MAP ......................................................................................................................... 9 EXHIBIT B: MULTI-YEAR BUDGET .................................................................................................................. 11 DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 3 Section 1: Introduction The Redevelopment Agency of Salt Lake City (the “Agency”), following thorough consideration of the needs and desires of the City of Salt Lake (the “City”) and its residents, as well as understanding the City’s capacity for new development, has carefully crafted the Project Area Plan (the “Plan”) for the State Street Community Reinvestment Project Area (the “Project Area”). The Plan is the end result of a comprehensive evaluation of the types of appropriate land-uses and economic development opportunities for the land encompassed by the Project Area which lies south of 300 South, north of 2100 South, between Interstate-15 (I-15) and 300 East. The Plan is envisioned to define the method and means of development for the Project Area from its current state to a higher and better use. The City has determined it is in the best interest of its citizens to assist in the development of the Project Area. This Project Area Budget document (the “Budget”) is predicated upon certain elements, objectives and conditions outlined in the Plan and intended to be used as a financing tool to assist the Agency in meeting Plan objectives discussed herein and more specifically referenced and identified in the Plan. The creation of the Project Area is being undertaken as a community reinvestment project pursuant to certain provisions of Chapters 1 and 5 of the Utah Community Reinvestment Agency Act (the “Act”, Utah Code Annotated (“UCA”) Title 17C). The requirements of the Act, including notice and hearing obligations, have been observed at all times throughout the establishment of the Project Area. Section 2: Description of Community Development Project Area The Project Area lies south of 300 South, north of 2100 South, between I-15 and 300 East, and is located within the City’s south central boundaries. This area in particular serves as the main alternative transit corridor throughout the Salt Lake Valley. The Project Area has a long history as an economic and social center to the City and surrounding community. The property encompasses approximately 729 acres of land. A map of the Project Area is attached hereto in EXHIBIT A. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 4 Section 3: General Overview of Project Area Budget The purpose of the Project Area Budget is to provide the financial framework necessary to implement the Project Area Plan vision and objectives. The Project Area Plan has identified that tax increment financing is essential in order to meet the objectives of the CRA Project Area. The following information will detail the sources and uses of tax increment and other necessary details needed for public officials, interested parties, and the public in general to understand the mechanics of the Project Area Budget. Base Year Value The Agency has determined that the base year property tax value for the Project Area will be the total taxable value for the 2016 tax year which is estimated to be $889,305,536. Using the tax rates established within the Project Area the property taxes levied equate to $13,102,138 annually. Accordingly, this amount will continue to flow through to each taxing entity proportional to the amount of their respective tax rates being levied. Payment Trigger This Budget will have a twenty-five year (25) duration from the date of the first tax increment received by the Agency. The collection of tax increment will be triggered at the discretion of the Agency prior to March 1 of the tax year in which they intend to begin the collection of increment. The following year in which this increment will be remitted to the Agency will be Year 1, e.g., if requested prior to March 1, 2018, Year 1 of increment will be 2019. The Agency anticipates it will trigger the tax increment by March 1, 2020 but in no case will the Agency trigger the first tax increment collection after March 1, 2022. Projected Tax Increment Revenue – Total Generation Development within the Project Area will commence upon favorable market conditions which will include both horizontal and vertical infrastructure and development. The Agency anticipates that new development will begin in the Project Area in 2018 or 2019. The contemplated development will generate significant additional property tax revenue as well as incremental sales and use tax above what is currently generated within the Project Area. Property Tax Increment will begin to be generated in the tax year (ending Dec 1st) following construction completion and Tax Increment will actually be paid to the Agency in March or April after collection. It is projected that property Tax Increment generation within the Project Area could begin as early as 2020 or as late as 2022. It is currently estimated that during the 25-year life of the Project Area Budget, property Tax Increment could be generated within the Project Area in the approximate amount of $78.64 million or at a net present value (NPV)1 of $42.32 million. This amount is over and above the $327.55 million of base taxes that the property would generate over 25 years at the $13,102,138 annual amount it currently generates as shown in Table 4.1 below. 1 Net Present Value of future cash flows assumes a 4% discount rate. The same 4% discount rate is used in all remaining NPV calculations. This total is prior to accounting for the flow-through of tax increment to the respective taxing entities. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 5 Section 4: Property Tax Increment Base Year Property Tax Revenue The taxing entities are currently receiving - and will continue to receive - property tax revenue from the current assessed value of the property within the Project Area (“Base Taxes”). The current assessed value is estimated to be $889,305,536. Based upon the tax rates in the area, the collective taxing entities are receiving $13,102,138 in property tax annually from this Project Area. This equates to approximately $327,553,462 over the twenty-five year life of the Project Area. Site and building demolition will need to occur in order to facilitate the envisioned development as outlined in the Plan. This demolition will initially lower the assessed value of the Project Area to a level below the base year value, however it is anticipated that the assessed value within the Project Area will be above the $889,305,536 base year value by year 1 of the Project Area life. T ABLE 4.1: T OTAL B ASE YEAR TO T AXING ENTITIES (OVER 25 Y EARS) Entity Total NPV at 4% Salt Lake County $52,713,586 $32,939,834 Salt Lake City School District 137,397,705 85,857,517 Salt Lake City 101,314,133 63,309,500 Salt Lake City Library 15,674,010 9,794,426 Salt Lake Metropolitan Water District 7,759,191 4,848,588 Salt Lake City Mosquito Abatement District 3,801,781 2,375,669 Central Utah Water Conservancy District 8,893,055 5,557,121 Total Revenue $327,553,462 $204,682,655 Property Tax Increment Shared with RDA (75% Participation Rate for 25 Years) All taxing entities that receive property tax generated within the Project Area, as detailed above, will share at least a portion of that increment generation with the Agency. All taxing entities will contribute 75% of their respective tax increment for 25 years. The County and the State will not contribute any portion of their incremental sales tax to implement the Project Area Plan. Table 4.2 shows the amount of Tax Increment shared with the Agency assuming the participation levels discussed above. T ABLE 4.2: SOURCES OF T AX INCREMENT FUNDS Entity Percentage Length Total NPV at 4% Salt Lake County 75% 25 Years $9,491,777 $5,107,450 Salt Lake City School District 75% 25 Years 24,740,271 13,312,544 Salt Lake City 75% 25 Years 18,242,948 9,816,386 Salt Lake City Library 75% 25 Years 2,822,312 1,518,664 Salt Lake Metropolitan Water District 75% 25 Years 1,397,145 751,793 Salt Lake City Mosquito Abatement District 75% 25 Years 684,561 368,357 Central Utah Water Conservancy District 75% 25 Years 1,601,312 861,653 Total Sources of Tax Increment Funds $58,980,326 $31,736,847 DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 6 Uses of Tax Increment The State Street corridor, has suffered from a lack of reinvestment over the previous decades. New commercial and entertainment districts opening around the valley have drawn businesses and consumers away from State Street. This has led to high vacancies, blighted properties, underutilized land uses, and low rent tenants. State Street and its surrounding area suffers from a lack of character and cohesiveness. The Life on State Study identified principles that should be followed to help State Street and its surrounding communities regain character and identity. These principles include improving the walkability of the corridor, and adding state trees, thematic lighting, and signature monuments/public art. “But-for” the creation of the CRA, and use of public funds, State Street and its surrounding community will continue to remain in its underutilized state. Improving walkability, adding thematic elements, site remediation, and small lot sizes are a few of the obstacles that are currently deterring redevelopment within the Project Area. The majority of the Tax Increment collected by the Agency (80%) will be used to overcome these obstacles. Including: enhancing the walkability of the corridor, assisting current ethnically diverse and culturally-rich business owners with improving their businesses, encouraging a mix of housing types along the State Street and Main Street corridors – including appropriately scaled multifamily rental and owner- occupied housing, preservation of historic buildings and the historic urban fabric of the corridor, offsetting certain on-site public infrastructure costs, land assemblage Agency requested improvements and upgrades, desirable Project Area improvements, and other redevelopment activities as approved by the Agency. 10% will go towards affordable housing, as outlined the Act. The remaining 10% will be used to offset the administration and operating costs of the Agency. T ABLE 4.3: USES OF T AX INCREMENT Uses Total NPV at 4% Redevelopment Activities @ 80% $47,184,261 $25,389,478 CRA Housing Requirement @ 10% 5,898,033 3,173,685 Project Area Administration @ 10% 5,898,033 3,173,685 Total Uses of Tax Increment Funds $58,980,326 $31,736,847 A multi-year projection of tax increment is including in EXHIBIT B. Total Annual Property Tax Revenue for Taxing Entities at Conclusion of Project As described above, the collective taxing entities are currently receiving approximately $13,102,138 in property taxes annually from this Project Area. At the end of the life of the project area, the taxing entities will receive all of their respective tax increment thereafter. At the end of 25 years an additional $4,756,144 in property taxes annually is anticipated, totaling approximately $17,858,283 in property taxes annually for the area. “But for” the assistance provided by the RDA through tax increment revenues, this increase of approximately 36 percent in property taxes generated for the taxing entities would not be possible. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 7 T ABLE 4.4: T OTAL B ASE YEAR AND END OF PROJECT LIFE ANNUAL PROPERTY TAXES Entity Annual Base Year Property Taxes Annual Property Tax Increment at Conclusion of Project Total Annual Property Taxes Salt Lake County $2,108,543 $765,412 $2,873,956 Salt Lake City School District 5,495,908 1,995,043 7,490,951 Salt Lake City 4,052,565 1,471,102 5,523,668 Salt Lake City Library 626,960 227,590 854,550 Salt Lake Metropolitan Water District 310,368 112,665 423,033 Salt Lake City Mosquito Abatement District 152,071 55,203 207,274 Central Utah Water Conservancy District 355,722 129,129 484,851 Total Revenue $13,102,138 $4,756,144 $17,858,283 DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 8 Section 5: Cost/Benefit Analysis Additional Revenues Other Tax Revenues The development within the Project Area will also generate sales taxes, energy sales and use taxes for natural gas and electric. Table 5.1 shows the total revenues generated by the Project Area. This total includes the anticipated property tax increment, sales tax, and energy sales and use tax. T ABLE 5.1: T OTAL REVENUES Entity Property Tax Sales Tax Franchise Tax Total Incremental Revenues Salt Lake County $12,655,703 $21,587,214 - $34,242,917 Salt Lake City School District 32,987,028 - - 32,987,028 Salt Lake City (including Library) 28,087,013 9,385,745 8,335,502 45,808,261 Salt Lake Metropolitan Water District 1,862,860 - - 1,862,860 Salt Lake City Mosquito Abatement District 912,748 - - 912,748 Central Utah Water Conservancy District 2,135,083 - - 2,135,083 Total Revenue $78,640,435 $30,972,959 $8,335,502 $117,948,896 Additional Costs The development anticipated within the Project Area will also likely result in additional general government, public works, and public safety costs. These costs, along with the estimated budget to implement the Project Area Plan, are identified below. T ABLE 5.2: T OTAL CITY EXPENDITURES Entity CRA Budget General Government Public Works Public Safety Total Incremental Expenditures Salt Lake County $9,491,777 $523,245 - - $10,015,022 Salt Lake City School District 24,740,271 6,277,495 - - 31,017,766 Salt Lake City (Including Library) 21,065,260 506,485 4,824,397 8,390,558 34,786,700 Salt Lake Metropolitan Water District 1,397,145 154,211 - - 1,551,356 Salt Lake City Mosquito Abatement District 684,561 17,063 - - 701,624 Central Utah Water Conservancy District 1,601,312 39,067 - - 1,640,379 Total Expenditures $58,980,326 $7,517,565 $4,824,397 $8,390,558 $79,712,847 The total net benefit to the taxing entities of participating in the Project Area is $38,236,049, with the City’s net benefit being $11,021,561. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 9 T ABLE 5.3: T OTAL CITY REVENUES (INCLUDING LIBRARY) Total NPV at 4% Property Tax Increment $28,087,013 $15,113,400 Sales Tax 9,385,745 5,092,482 Telecom Tax 1,377,127 737,507 Energy Sales & Use Tax (Natural Gas) 1,231,228 646,986 Energy Sales & Use Tax (Electricity) 5,727,147 3,009,503 Total City Revenue $45,808,261 $24,599,878 T ABLE 5.4: T OTAL CITY EXPENDITURES (INCLUDING LIBRARY) Total NPV at 4% CRA Budget $21,065,260 $11,335,050 General Government 506,485 266,221 Public Works 4,824,397 2,535,827 Public Safety 8,390,558 4,408,307 Total City Expenditures $34,786,700 $18,545,405 Total City Benefit $11,021,561 $6,054,473 DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 10 Exhibit A: Project Area M DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Page | 11 Exhibit B: Multi-Year Budget DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D Redevelopment Agency of Salt Lake City ASSUMPTIONS: State Street Project Area Discount Rate 4.0% Increment and Budget Analysis Growth Rate 1.0% Payment Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Tax Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 TOTALS NPV Cumulative Taxable Value Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Tax District 13 Commercial $1,765,985 $4,073,821 $6,954,715 $10,997,330 $15,008,737 $19,608,806 $24,193,271 $28,777,737 $33,362,202 $37,946,668 $43,708,457 $50,616,362 $57,493,060 $58,067,991 $58,648,671 $59,235,157 $59,827,509 $60,425,784 $61,030,042 $61,640,342 $62,256,746 $62,879,313 $63,508,106 $64,143,187 $64,784,619 Office $3,021,895 $6,957,326 $11,868,802 $18,763,621 $25,595,932 $33,435,542 $41,243,897 $49,052,253 $56,860,609 $64,668,965 $74,491,917 $86,266,958 $97,979,492 $98,959,286 $99,948,879 $100,948,368 $101,957,852 $102,977,430 $104,007,205 $105,047,277 $106,097,749 $107,158,727 $108,230,314 $109,312,617 $110,405,743 Industiral $405,716 $922,642 $1,566,797 $2,473,419 $3,364,022 $4,389,864 $5,407,696 $6,425,528 $7,443,359 $8,461,191 $9,749,501 $11,276,249 $12,802,997 $12,931,026 $13,060,337 $13,190,940 $13,322,850 $13,456,078 $13,590,639 $13,726,545 $13,863,811 $14,002,449 $14,142,473 $14,283,898 $14,426,737 Residential $3,671,726 $8,428,100 $14,361,963 $22,697,222 $30,939,641 $40,405,969 $49,825,876 $59,245,784 $68,665,691 $78,085,599 $89,953,324 $104,083,185 $118,213,046 $119,395,177 $120,589,128 $121,795,020 $123,012,970 $124,243,100 $125,485,531 $126,740,386 $128,007,790 $129,287,868 $130,580,746 $131,886,554 $133,205,419 Total Assessed Value:$8,865,322 $20,381,889 $34,752,277 $54,931,592 $74,908,333 $97,840,180 $120,670,741 $143,501,302 $166,331,862 $189,162,423 $217,903,198 $252,242,754 $286,488,594 $289,353,480 $292,247,015 $295,169,485 $298,121,180 $301,102,392 $304,113,416 $307,154,550 $310,226,096 $313,328,357 $316,461,640 $319,626,257 $322,822,519 Value of Current Property $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 Less Base Year Value (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ $8,865,322 $20,381,889 $34,752,277 $54,931,592 $74,908,333 $97,840,180 $120,670,741 $143,501,302 $166,331,862 $189,162,423 $217,903,198 $252,242,754 $286,488,594 $289,353,480 $292,247,015 $295,169,485 $298,121,180 $301,102,392 $304,113,416 $307,154,550 $310,226,096 $313,328,357 $316,461,640 $319,626,257 $322,822,519 TAX RATE & INCREMENT ANALYSIS:2016 Rates Salt Lake County 0.002371 21,020 48,325 82,398 130,243 177,608 231,979 286,110 340,242 394,373 448,504 516,648 598,068 679,264 686,057 692,918 699,847 706,845 713,914 721,053 728,263 735,546 742,902 750,331 757,834 765,412 12,655,703 6,809,934 Salt Lake City School District 0.006180 54,788 125,960 214,769 339,477 462,933 604,652 745,745 886,838 1,027,931 1,169,024 1,346,642 1,558,860 1,770,500 1,788,205 1,806,087 1,824,147 1,842,389 1,860,813 1,879,421 1,898,215 1,917,197 1,936,369 1,955,733 1,975,290 1,995,043 32,987,028 17,750,059 Salt Lake City 0.004557 40,399 92,880 158,366 250,323 341,357 445,858 549,897 653,935 757,974 862,013 992,985 1,149,470 1,305,529 1,318,584 1,331,770 1,345,087 1,358,538 1,372,124 1,385,845 1,399,703 1,413,700 1,427,837 1,442,116 1,456,537 1,471,102 24,323,930 13,088,515 Salt Lake City Library 0.000705 6,250 14,369 24,500 38,727 52,810 68,977 85,073 101,168 117,264 133,360 153,622 177,831 201,974 203,994 206,034 208,094 210,175 212,277 214,400 216,544 218,709 220,896 223,105 225,337 227,590 3,763,083 2,024,885 Salt Lake Metropolitan Water District 0.000349 3,094 7,113 12,129 19,171 26,143 34,146 42,114 50,082 58,050 66,018 76,048 88,033 99,985 100,984 101,994 103,014 104,044 105,085 106,136 107,197 108,269 109,352 110,445 111,550 112,665 1,862,860 1,002,390 Salt Lake City Mosquito Abatement District 0.000171 1,516 3,485 5,943 9,393 12,809 16,731 20,635 24,539 28,443 32,347 37,261 43,134 48,990 49,479 49,974 50,474 50,979 51,489 52,003 52,523 53,049 53,579 54,115 54,656 55,203 912,748 491,142 Central Utah Water Conservancy District 0.000400 3,546 8,153 13,901 21,973 29,963 39,136 48,268 57,401 66,533 75,665 87,161 100,897 114,595 115,741 116,899 118,068 119,248 120,441 121,645 122,862 124,090 125,331 126,585 127,851 129,129 2,135,083 1,148,871 Totals:0.014733 130,613 300,286 512,005 809,307 1,103,624 1,441,479 1,777,842 2,114,205 2,450,567 2,786,930 3,210,368 3,716,292 4,220,836 4,263,045 4,305,675 4,348,732 4,392,219 4,436,142 4,480,503 4,525,308 4,570,561 4,616,267 4,662,429 4,709,054 4,756,144 78,640,435 42,315,797 TOTAL INCREMENTAL REVENUE IN PROJECT AREA:$130,613 $300,286 $512,005 $809,307 $1,103,624 $1,441,479 $1,777,842 $2,114,205 $2,450,567 $2,786,930 $3,210,368 $3,716,292 $4,220,836 $4,263,045 $4,305,675 $4,348,732 $4,392,219 $4,436,142 $4,480,503 $4,525,308 $4,570,561 $4,616,267 $4,662,429 $4,709,054 $4,756,144 $78,640,435 $42,315,797 PROJECT AREA BUDGET 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Sources of Funds:2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 TOTALS NPV Property Tax Participation Rate for Budget Salt Lake County 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City School District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City Library 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake Metropolitan Water District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City Mosquito Abatement District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Central Utah Water Conservancy District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Property Tax Increment for Budget Salt Lake County $15,765 $36,244 $61,798 $97,682 $133,206 $173,984 $214,583 $255,181 $295,780 $336,378 $387,486 $448,551 $509,448 $514,543 $519,688 $524,885 $530,134 $535,435 $540,790 $546,198 $551,660 $557,176 $562,748 $568,375 $574,059 $9,491,777 $5,107,450 Salt Lake City School District $41,091 $94,470 $161,077 $254,608 $347,200 $453,489 $559,309 $665,129 $770,948 $876,768 $1,009,981 $1,169,145 $1,327,875 $1,341,153 $1,354,565 $1,368,111 $1,381,792 $1,395,610 $1,409,566 $1,423,661 $1,437,898 $1,452,277 $1,466,800 $1,481,468 $1,496,282 $24,740,271 $13,312,544 Salt Lake City $30,299 $69,660 $118,775 $187,742 $256,018 $334,393 $412,422 $490,452 $568,481 $646,510 $744,739 $862,103 $979,146 $988,938 $998,827 $1,008,816 $1,018,904 $1,029,093 $1,039,384 $1,049,777 $1,060,275 $1,070,878 $1,081,587 $1,092,403 $1,103,327 $18,242,948 $9,816,386 Salt Lake City Library $4,688 $10,777 $18,375 $29,045 $39,608 $51,733 $63,805 $75,876 $87,948 $100,020 $115,216 $133,373 $151,481 $152,996 $154,526 $156,071 $157,632 $159,208 $160,800 $162,408 $164,032 $165,672 $167,329 $169,002 $170,692 $2,822,312 $1,518,664 Salt Lake Metropolitan Water District $2,320 $5,335 $9,096 $14,378 $19,607 $25,610 $31,586 $37,561 $43,537 $49,513 $57,036 $66,025 $74,988 $75,738 $76,496 $77,261 $78,033 $78,814 $79,602 $80,398 $81,202 $82,014 $82,834 $83,662 $84,499 $1,397,145 $751,793 Salt Lake City Mosquito Abatement District $1,137 $2,614 $4,457 $7,045 $9,607 $12,548 $15,476 $18,404 $21,332 $24,260 $27,946 $32,350 $36,742 $37,110 $37,481 $37,855 $38,234 $38,616 $39,003 $39,393 $39,786 $40,184 $40,586 $40,992 $41,402 $684,561 $368,357 Central Utah Water Conservancy District $2,660 $6,115 $10,426 $16,479 $22,472 $29,352 $36,201 $43,050 $49,900 $56,749 $65,371 $75,673 $85,947 $86,806 $87,674 $88,551 $89,436 $90,331 $91,234 $92,146 $93,068 $93,999 $94,938 $95,888 $96,847 $1,601,312 $861,653 Total Property Tax Increment for Budget:$97,960 $225,215 $384,004 $606,980 $827,718 $1,081,110 $1,333,382 $1,585,654 $1,837,925 $2,090,197 $2,407,776 $2,787,219 $3,165,627 $3,197,284 $3,229,256 $3,261,549 $3,294,165 $3,327,106 $3,360,377 $3,393,981 $3,427,921 $3,462,200 $3,496,822 $3,531,790 $3,567,108 $58,980,326 $31,736,847 Uses of Tax Increment Funds:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 TOTALS NPV Redevelopment Activities (Infrastructure, Relocation, Incentives, etc.)80.0%$78,368 $180,172 $307,203 $485,584 $662,175 $864,888 $1,066,705 $1,268,523 $1,470,340 $1,672,158 $1,926,221 $2,229,775 $2,532,502 $2,557,827 $2,583,405 $2,609,239 $2,635,332 $2,661,685 $2,688,302 $2,715,185 $2,742,337 $2,769,760 $2,797,458 $2,825,432 $2,853,687 $47,184,261 $25,389,478 CRA Housing 10.0%$9,796 $22,521 $38,400 $60,698 $82,772 $108,111 $133,338 $158,565 $183,793 $209,020 $240,778 $278,722 $316,563 $319,728 $322,926 $326,155 $329,416 $332,711 $336,038 $339,398 $342,792 $346,220 $349,682 $353,179 $356,711 $5,898,033 $3,173,685 RDA Administration 10.0%$9,796 $22,521 $38,400 $60,698 $82,772 $108,111 $133,338 $158,565 $183,793 $209,020 $240,778 $278,722 $316,563 $319,728 $322,926 $326,155 $329,416 $332,711 $336,038 $339,398 $342,792 $346,220 $349,682 $353,179 $356,711 $5,898,033 $3,173,685 Total Uses $97,960 $225,215 $384,004 $606,980 $827,718 $1,081,110 $1,333,382 $1,585,654 $1,837,925 $2,090,197 $2,407,776 $2,787,219 $3,165,627 $3,197,284 $3,229,256 $3,261,549 $3,294,165 $3,327,106 $3,360,377 $3,393,981 $3,427,921 $3,462,200 $3,496,822 $3,531,790 $3,567,108 $58,980,326 $31,736,847 REMAINING TAX INCREMENT FOR TAXING ENTITIES 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 TOTALS NPV Salt Lake County $5,255 $12,081 $20,599 $32,561 $44,402 $57,995 $71,528 $85,060 $98,593 $112,126 $129,162 $149,517 $169,816 $171,514 $173,229 $174,962 $176,711 $178,478 $180,263 $182,066 $183,887 $185,725 $187,583 $189,458 $191,353 $3,163,926 $1,702,483 Salt Lake City School District $13,697 $31,490 $53,692 $84,869 $115,733 $151,163 $186,436 $221,710 $256,983 $292,256 $336,660 $389,715 $442,625 $447,051 $451,522 $456,037 $460,597 $465,203 $469,855 $474,554 $479,299 $484,092 $488,933 $493,823 $498,761 $8,246,757 $4,437,515 Salt Lake City $10,100 $23,220 $39,592 $62,581 $85,339 $111,464 $137,474 $163,484 $189,494 $215,503 $248,246 $287,368 $326,382 $329,646 $332,942 $336,272 $339,635 $343,031 $346,461 $349,926 $353,425 $356,959 $360,529 $364,134 $367,776 $6,080,983 $3,272,129 Salt Lake City Library $1,563 $3,592 $6,125 $9,682 $13,203 $17,244 $21,268 $25,292 $29,316 $33,340 $38,405 $44,458 $50,494 $50,999 $51,509 $52,024 $52,544 $53,069 $53,600 $54,136 $54,677 $55,224 $55,776 $56,334 $56,897 $940,771 $506,221 Salt Lake Metropolitan Water District $773 $1,778 $3,032 $4,793 $6,536 $8,537 $10,529 $12,520 $14,512 $16,504 $19,012 $22,008 $24,996 $25,246 $25,499 $25,754 $26,011 $26,271 $26,534 $26,799 $27,067 $27,338 $27,611 $27,887 $28,166 $465,715 $250,598 Salt Lake City Mosquito Abatement District $379 $871 $1,486 $2,348 $3,202 $4,183 $5,159 $6,135 $7,111 $8,087 $9,315 $10,783 $12,247 $12,370 $12,494 $12,618 $12,745 $12,872 $13,001 $13,131 $13,262 $13,395 $13,529 $13,664 $13,801 $228,187 $122,786 Central Utah Water Conservancy District $887 $2,038 $3,475 $5,493 $7,491 $9,784 $12,067 $14,350 $16,633 $18,916 $21,790 $25,224 $28,649 $28,935 $29,225 $29,517 $29,812 $30,110 $30,411 $30,715 $31,023 $31,333 $31,646 $31,963 $32,282 $533,771 $287,218 Total $32,653 $75,072 $128,001 $202,327 $275,906 $360,370 $444,461 $528,551 $612,642 $696,732 $802,592 $929,073 $1,055,209 $1,065,761 $1,076,419 $1,087,183 $1,098,055 $1,109,035 $1,120,126 $1,131,327 $1,142,640 $1,154,067 $1,165,607 $1,177,263 $1,189,036 $19,660,109 $10,578,949 TOTAL INCREMENTAL VALUE: INCREMENTAL TAX ANALYSIS: TaxInc Budget State Street CRA Analysis (4.16.18).xlsx DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D 5 EXHIBIT B Board of Education of Salt Lake City School District’s Portion of Tax Increment from the State Street Community Reinvestment Area The Redevelopment Agency of Salt Lake City (“RDA”) shall be entitled to retain seventy-five percent (75%) of Salt Lake City School District’s portion of the Tax Increment from the State Street Community Reinvestment Area (the “Project Area”) for twenty (20) years beginning with the 2021 tax year. The calculation of annual Tax Increment shall be made using (a) Salt Lake County’s then current tax levy rate for the District, and (b) the 2016 base year taxable value of $889,305,536, which taxable value is subject to adjustment as required by law. Tax increment (“TI”) shall be utilized to implement the State Street Community Reinvestment Area Plan (the “Project Area Plan”) as follows: I. BUDGET ALLOCATIONS Budget allocations from the 75% of TI collected from the District 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. 3. Administration and Operations: The tax increment expected to be used to cover the RDA’s operating costs of administering and implementing the Project Area Plan. II. BUDGET PRIORITIES Priorities for the allocation of TIF are as follows: 1. Housing: The RDA will prioritize the following housing activities: a. Affordable Family Housing: Development of new housing units that include 3+ bedrooms and are affordable to households at or below 80% of the area median income as defined by the U.S. Department of Housing and Urban Development. b. Workforce Housing: Development of new housing units affordable to low and middle-income workers, including teachers and school district employees. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D 6 2. Neighborhood Safety Improvements: The RDA will work with the Salt Lake City School District to identify and prioritize improvement projects to increase neighborhood safety. DocuSign Envelope ID: E5531EDB-B25F-4779-BD1F-89CFD33EAD9D R-17-2020 - RDA School District & ILA (State Street) - Approved 9/29/2020 Final Audit Report 2020-10-13 Created:2020-10-08 By:DeeDee Robinson (deedee.robinson@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAAzcD4EUMB0IxTE5XvuYPUnxB426e-bN6R "R-17-2020 - RDA School District & ILA (State Street) - Approve d 9/29/2020" History Document created by DeeDee Robinson (deedee.robinson@slcgov.com) 2020-10-08 - 10:55:17 PM GMT- IP address: 204.124.13.151 Document emailed to Amy Fowler (amy.fowler@slcgov.com) for signature 2020-10-08 - 10:57:48 PM GMT Email viewed by Amy Fowler (amy.fowler@slcgov.com) 2020-10-12 - 5:39:46 PM GMT- IP address: 136.36.122.143 Document e-signed by Amy Fowler (amy.fowler@slcgov.com) Signature Date: 2020-10-12 - 5:39:53 PM GMT - Time Source: server- IP address: 136.36.122.143 Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature 2020-10-12 - 5:39:57 PM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2020-10-13 - 10:26:14 PM GMT- IP address: 204.124.13.151 Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com) Signature Date: 2020-10-13 - 10:26:25 PM GMT - Time Source: server- IP address: 204.124.13.151 Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2020-10-13 - 10:26:29 PM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2020-10-13 - 11:03:02 PM GMT - Time Source: server- IP address: 204.124.13.151 Agreement completed. 2020-10-13 - 11:03:02 PM GMT