HomeMy WebLinkAbout42 of 2025 - Public Benefits Analysis - Valley Behavioral Health
RESOLUTION NO. 42 OF 2025
(Authorizing the release of Salt Lake City’s reversionary interest in
a property located at 107 South 800 West, Salt Lake City)
WHEREAS, Salt Lake City Corporation (the “City”) previously conveyed certain real property
located at 107 South 800 West, Salt Lake City, Utah (the “Property”), to Valley Behavioral Health,
Incorporated, a Utah nonprofit corporation (“Valley”), through a Quit Claim Deed recorded in 1992 that
reserved a reversionary interest to the City; and
WHEREAS, Valley now intends to convey the Property to a new entity, Saltair Lofts, LLC, to
demolish the existing eight-unit structure and develop a new 68-unit permanent supportive housing
project known as “Saltair Lofts” to serve formerly homeless individuals, including those with disabilities;
and
WHEREAS, the City has determined that releasing the reversionary interest in the Property to
help enable the development of Saltair Lofts in exchange for a Restrictive Use Agreement recorded on the
Property preserving all 68 units as affordable permanent supportive housing is necessary and appropriate
to achieve the City’s housing and community development objectives; and
WHEREAS, the City has conducted a Public Benefits Analysis pursuant to Utah Code Section
10-8-2 and Salt Lake City Code Section 2.58, which demonstrates that the release of the reversionary
interest provides substantial public benefit through the creation of deeply affordable housing, housing for
individuals with disabilities, on-site behavioral health services, and sustainable design practices; and
WHEREAS, the City Council finds that such release is consistent with the City’s Housing SLC
(2023–2027) Plan and Thriving in Place anti-displacement strategy, and that it will enhance the safety,
health, and prosperity of City residents; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as
follows:
1. The City Council hereby approves the release of the City’s reversionary interest as set forth in the 1992
Quit Claim Deed for the Property located at 107 South 800 West on the condition that a Restrictive Use
Agreement be recorded on the Property memorializing the public benefits to be received by the City.
2. The City Council further authorizes the Mayor, or her designee, to execute the Release of Reversionary
Interest and the Restrictive Use Agreement consistent with the term sheet attached hereto as Exhibit C.
3. The City Council hereby adopts and incorporates the findings of the Public Benefits Analysis attached
hereto as Exhibit D.
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Passed by the City Council of Salt Lake City, Utah, on December 9, 2025.
SALT LAKE CITY COUNCIL
By:
CHAIRPERSON
ATTEST:
CITY RECORDER
APPROVED AS TO FORM:
Salt Lake City Attorney’s Office
__________
Allison Parks, Deputy City Attorney
Chris Wharton (Dec 23, 2025 11:09:47 MST)
EXHIBIT C TERM SHEET
At the time the Release of the Revisionary Interest is recorded, the Restrictive Use Agreement
shall be recorded against the Property and contain, at minimum, the following key terms and
obligations:
AFFORDABLE HOUSING
1. Unit Requirements: Saltair Lofts, LLC (“Saltair”) shall develop and maintain a minimum
of 68 units. The units shall be made available and affordable to individuals meeting the
U.S. Department of Housing and Urban Development (“HUD”) adopted definition of
chronically homeless.
2. Income Restrictions: Units shall be made available only to households that have an
aggregate annual income for all qualifying occupants that is at or below the following
area median income (“AMI”) for Salt Lake City Utah, Metro Fair Market Rent Area as
annually determined by HUD and adjusted for household size. The income restrictions
shall be:
a. 5 studio units at 30% AMI
b. 63 studio units at 40% AMI
3. Maximum Rents: The annualized rent (which includes all required housing costs such as
utilities and other charges uniformly assessed to all apartment units, other than charges
for optional services) per affordable unit shall be set forth in a written lease and shall not
exceed, for the term of the lease, the maximum monthly gross rental rate utilized by IRC
Section 42(g)(2) of the low-income housing tax credit (LIHTC) program for the
applicable AMI and unit type and as updated annually. Specifically:
a. 5 studio units at 25% AMI
b. 63 studio units at 35% AMI
HOUSING FOR INDIVIDUALS WITH DISABILITIES: Within the Project’s 68 units, a
minimum of nine units shall be made available to individuals with mobility impairments. Such
units shall be designed to ensure full usability by persons with mobility limitations.
SUPPORTIVE SERVICES: Saltair shall ensure the following supportive services are provided
to the residents: on-site case management, clinical services, and resident support programming
consistent with best practices for permanent supportive housing. The building will also include
resident amenities including a community kitchen, fitness area, computer room, and outdoor
courtyard.
SUSTAINABILITY: The Project shall be all-electric and certified under Energy Star MFNC and
Enterprise Green Communities standards.
MONITORING
1. Saltair will permit annual inspections at reasonable times by City or its designee to
determine compliance with these conditions and covenants.
2. Saltair will provide an initial report demonstrating compliance with the public benefits,
including the affordability requirements at full occupancy and, if requested by City,
provide annual compliance and affordability documentation each year, no later than thirty
(30) days after December 31.
3. If requested by the City, Saltair will recertify income annually with source documents or
written statements from the household indicating household size and annual income.
TERM: The term of this agreement shall extend until 50 consecutive years from the date the
agreement is executed.
EXHIBIT D PUBLIC BENEFIT ANALYSIS
MEMORANDUM
TO: City Council Members
SUBJECT: Public Benefits Analysis for the release of Salt Lake City’s reversionary interest on a
property owned by Valley Behavioral Health located at 107 South 800 West in exchange for a
restrictive use agreement recorded on the Property preserving public benefits.
INTRODUCTION
Salt Lake City (“City”) has a reversionary interest in property located at 107 South 800 West
(“Property”). The Property was originally conveyed by the City to Valley Behavioral Health
(“Valley”) in 1992. Valley proposes to redevelop the Property into a 68-unit permanent
supportive housing project serving formerly homeless individuals, including those with
disabilities. For the purposes of acquiring Low-Income Housing Tax Credits (“LIHTC”) Valley
must transfer ownership of the Property to a separate legal entity, Saltair Lofts, LLC (“Saltair”),
of which Valley is the managing partner. In exchange for the City’s release of its reversionary
interest, Saltair will record a Restrictive Use Agreement preserving certain public benefits,
including 68 units as affordable, supportive housing for 50 years.
The release of the City’s reversionary interest serves a significant public purpose by enabling
construction of a new deeply affordable housing development that addresses homelessness and
behavioral health challenges through the inclusion of supportive services. Saltair will replace an
aging eight-unit structure with a modern, sustainable building that will create 68 homes that will
allow residents to access on-site case management, behavioral health services, and community
amenities that promote housing stability and well-being.
This action directly advances Salt Lake City’s Housing SLC (2023–2027) plan and the Thriving
in Place anti-displacement strategy by utilizing City resources to expand permanent supportive
housing, improve neighborhood stability, and reduce homelessness. The project’s all-electric
design aligns with the City’s Climate Positive 2040 goals, while its proximity to public transit
promotes accessibility and sustainability.
Accordingly, the City finds that the release of its reversionary interest provides substantial and
measurable public benefit consistent with Utah Code §10-8-2. The Restrictive Use Agreement
that will be recorded on the Property ensures long-term affordability, supportive services, and
accountability, providing lasting value to the City and its residents.
LEGAL FRAMEWORK
Under Utah law, after first holding a public hearing, a municipal body may appropriate funds
“for any purpose that, in the judgment of the municipal legislative body, provides for the safety,
health, prosperity, moral well-being, peace, order, comfort, or convenience of the inhabitants of
the municipality.” The factors that must be considered by the City Council in determining the
propriety of making such an appropriation or waiver to any type of entity or individual other than
a nonprofit entity are set forth under Utah Code §10-8-2(3)(e). The factors include:
(1) The specific benefits (including intangible benefits) to be received by the City in
return for the arrangement;
(2) The City’s purpose in making the appropriation, including an analysis of how the
safety, health, prosperity, moral well-being, peace, order, comfort or convenience of the
residents of Salt Lake City will be enhanced; and
(3) Whether the appropriation is “necessary and appropriate” to accomplish the
reasonable goals and objectives of the City in the areas of economic development, job
creation, affordable housing, blight elimination, resource center development, job
preservation, the preservation of historic structures and property, and any other public
purpose.
BACKGROUND OF THE PROJECT AND CITY PROPERTY
The Property located at 107 South 800 West was originally conveyed by the City to Valley in
1992 for the purposes of developing and maintaining housing for homeless and disabled
individuals. The Quit Claim Deed included a reversionary interest in favor of the City. Valley
constructed an eight-unit affordable apartment complex on the site in 1993, which has since
served low-income individuals in need of stable housing.
The reversionary interest provides that in the event that Valley sells the property, upon City
approval, the appraised value at the time of sale of the land shall be repaid to the City. Valley
now proposes to redevelop the site into a 68-unit permanent supportive housing development
that will provide deeply affordable housing for formerly homeless individuals, including people
with disabilities and mobility impairments. The redevelopment will replace aging, inefficient
housing with a modern, sustainable facility that provides comprehensive on-site supportive
services (“Project”). Valley will convey the Property to Saltair, which triggers the reversionary
interest established in the deed.
The project site is half an acre in size and is zoned TSA-UN-T, located approximately .4 miles
from a TRAX station. The new building will feature ground-floor clinical and community
service space, including a resident clinic, case management offices, community kitchen, fitness
area, computer room, and outdoor courtyard.
Valley will serve as both developer and lead service provider, leveraging over three decades of
experience operating supportive housing and behavioral health programs. Housing Connect will
provide property management services through project-based vouchers, ensuring long-term
operational stability.
The City’s release of its reversionary interest is a necessary and appropriate action to enable the
development of the new Project. Further, requiring Saltair to record a Restrictive Use Agreement
on the Property will ensure long-term affordability, housing for individuals with mobility
impairments, and supportive services.
TERMS OF THE RESTRICTIVE USE AGREEMENT AND PUBLIC BENEFITS
PROVIDED
I. Terms of Restrictive Use Agreement; Costs to the City
The City’s release of its 1992 reversionary interest will be executed concurrently with the
recording of a Restrictive Use Agreement on the Property.
The Restrictive Use Agreement will:
• Ensure 5 studio units are preserved as permanent supportive housing for households
earning at or below 30% of the area median income (“AMI”), adjusted for household
size;
• Ensure 63 studio units are preserved as permanent supportive housing for households
earning at or below 40% of the area median income (“AMI”), adjusted for household
size;
• Require a minimum of nine units to be made available to individuals with mobility
impairments;
• Remain in effect for a minimum of 50 years, running with the land and binding all
successors and assigns.
• Require annual reporting to the City verifying compliance with affordability and tenant
selection.
• Ensure the Project is constructed as all-electric and certified under Energy Star MFNC
and Enterprise Green Communities standards.
Upon execution, the City’s reversionary interest will be fully released, and the Restrictive Use
Agreement will be recorded to ensure long-term enforceability and monitoring by the City.
II. Costs to the City
The appraised value of the Property as of June 2024, is $2,240,000. In accordance with the
reversionary interest, this amount would have been paid to the City upon approving the sale of
the property. The release of the reversionary interest makes the Project financially feasible by
offsetting the costs associated with supportive housing and on-site service space.
The City’s contribution of the release of its reversionary interest in exchange for long-term
affordability for homeless and disabled individuals and supportive housing commitments is
necessary and appropriate to accomplish the reasonable goals and objectives of the City through
the development of the public benefits in the Project.
II. Public Benefits Provided by the Project.
The Project delivers significant and quantifiable public benefits that justify the City’s release of
its reversionary interest under Utah Code §10-8-2, including:
Permanent Supportive Housing Creation: 68 new, service-enriched units targeted to formerly
homeless individuals and persons with disabilities.
Behavioral Health and Support Services: Comprehensive on-site services including case
management, clinical treatment, and life skills programs provided by Valley Behavioral Health’s
experienced team.
Sustainability and Design Excellence: All-electric, high-performance building design meeting
Energy Star MFNC and Enterprise Green Communities standards.
Transit-Oriented Development: Located within walking distance of TRAX and bus lines,
reducing car dependence and supporting the City’s goal of improving access to opportunity for
likely transit users who are underserved.
Economic and Social Value: Reduces City expenditures on emergency and crisis response
services through stable housing solutions.
III. Salt Lake City’s Purposes and Enhancing the Quality of Life for Residents.
By releasing the reversionary interest, the City directly advances its purpose of improving safety,
health, prosperity, and moral well-being for residents. The project converts an aging and
underutilized property into a community asset that provides:
• A supportive, service-rich environment enabling residents to stabilize their lives.
• Integration of behavioral health care and housing, reducing strain on public safety and
healthcare systems.
The Project will also help reduce nuisance activity and blight in the area, promote community
cohesion, and enhance the comfort and convenience of residents citywide.
IV. Accomplishing Salt Lake City’s Goals.
By developing 68 units of permanent supportive housing, the Project supports the City’s Housing
Plan, Housing SLC (2023-2027), which outlines strategies to address Salt Lake City’s shortage
of approximately 5,500 units of affordable housing. Housing SLC heavily prioritizes individuals
and households who face the greatest risk of housing insecurity and displacement. To do this, the
City has developed the following goals:
1) Make progress toward closing the housing gap of 5,500 units of deeply affordable
housing by entitling a minimum of 2,000 deeply affordable (30% AMI or below) units
and a minimum of 2,000 affordable (31%-80% AMI) units throughout the city.
2) Increasing housing stability throughout the city.
The plan also provides guidance for evaluating and appropriating City funds for housing. The
priorities relevant to the Project are as follows:
1) Incentivizing new residential development where it will benefit the most people.
2) Support new housing at all income levels by making it easy and attractive to build
affordable housing.
3) Increase spending on rental assistance and affordable housing construction and
develop new funding sources to make it possible.
4) Create rental housing opportunities in every neighborhood.
Additionally, the Project helps further Strategic Priority 3e of Thriving in Place, the City’s anti-
displacement strategy plan, to produce more affordable housing, prioritizing long-term
affordability, supportive services, and transit access.
CONCLUSION
The development of the Project will provide significant benefit to residents of the City. The
City’s release of its reversionary interest in exchange for the Restrictive Use Agreement for the
Project represents an appropriate use of City resources to achieve the City’s reasonable goals
and objectives…in the area of economic development, job creation, affordable housing, blight
elimination, resource center development, job preservation, the preservation of historic
structures and property.
This contribution enables the creation of 68 new supportive housing units, ensures long-term
affordability, and provides vital on-site behavioral health services that improve resident
outcomes and reduce public costs.
Accordingly, Salt Lake City finds that the release of its reversionary interest provides substantial
public benefit consistent with Utah Code §10-8-2 and City Code §2.58, enhances the welfare of
residents, and is in the best interest of the City and its inhabitants.
*Adopted December 9, 2025* - Resolution
42 of 2025 - Public Benefits Analysis - Valley
Behavioral Health
Final Audit Report 2025-12-23
Created:2025-12-19
By:DeeDee Robinson (deedee.robinson@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAzaAtaWsM2PiRXtxHLLadnPGTeRcnNnab
"*Adopted December 9, 2025* - Resolution 42 of 2025 - Public B
enefits Analysis - Valley Behavioral Health" History
Document created by DeeDee Robinson (deedee.robinson@slc.gov)
2025-12-19 - 10:58:41 PM GMT
Document emailed to Allison Parks (allison.parks@slc.gov) for signature
2025-12-19 - 11:02:46 PM GMT
Email viewed by Allison Parks (allison.parks@slc.gov)
2025-12-22 - 4:11:22 PM GMT
Document e-signed by Allison Parks (allison.parks@slc.gov)
Signature Date: 2025-12-22 - 4:12:12 PM GMT - Time Source: server
Document emailed to Chris Wharton (chris.wharton@slc.gov) for signature
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Email viewed by Chris Wharton (chris.wharton@slc.gov)
2025-12-23 - 6:51:47 AM GMT
Document e-signed by Chris Wharton (chris.wharton@slc.gov)
Signature Date: 2025-12-23 - 6:09:47 PM GMT - Time Source: server
Document emailed to Keith Reynolds (Keith.Reynolds@slc.gov) for signature
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Email viewed by Keith Reynolds (Keith.Reynolds@slc.gov)
2025-12-23 - 6:35:26 PM GMT
Document e-signed by Keith Reynolds (Keith.Reynolds@slc.gov)
Signature Date: 2025-12-23 - 6:35:49 PM GMT - Time Source: server
Agreement completed.
2025-12-23 - 6:35:49 PM GMT