041 of 2011 - authorizing approving an interlocal agreement with the Redevelopment Agency of Salt Lake City and th R 11-1
• C 11-732
JOINT RESOLUTION NO. 41 OF 2011
(Utah Performing Arts Center)
A joint resolution of the City Council and the Mayor approving an Interlocal Agreement with the
Redevelopment Agency of Salt Lake City and the Board of Education of Salt Lake City School
District to authorize use of a portion of tax increment to support the Utah Performing Arts Center
and infrastructure and development activities related to the establishment of a cultural core.
WHEREAS,the Redevelopment Agency of Salt Lake City(the "RDA") proposes to create a
Community Development Project Area(the"CDA")to capture tax increment from Block 70 to
support the development of a regional performing arts theater and ancillary facilities(the
"Theater") on Block 70 and activities related to the establishment of a cultural core; and
WHEREAS,the CDA boundaries would include the area described on Exhibit A attached hereto
(the"Proposed Project Area"), that is generally all of Block 70 in downtown Salt Lake City from
Main Street to State Street and from 200 South to 100 South; and
WHEREAS,the Central Business District Project Area Plan adopted by the RDA does not allow
for the collection of tax increment from the properties in Block 70; and
WHEREAS, construction of the Theater will facilitate private development on Block 70 through
the construction of an office tower and other mixed-use projects; and
WHEREAS, in 2005, a feasibility study commissioned by the RDA,the Downtown Alliance,
and Salt Lake County identified the need and potential for a touring Broadway theater; and
WHEREAS, in 2011,the development team of GTS/Hamilton Partners issued a feasibility
report demonstrating the economic development benefits and financial viability of a touring
Broadway Theater on Block 70; and
WHEREAS,the creation of the CDA will capture increased property taxes from the proposed
private development and assist with the repayment of bonds issued to construct the Theater; and
WHEREAS,the Theater and private development will activate and revitalize Main Street
between First South and Second South and leverage the economic impact of City Creek Center,
the Gateway,222 South Main, and other recent developments; and
WHEREAS,the Theater will create educational opportunities and cultural enriclunent statewide,
and introduce and attract new and broader audiences to the downtown cultural core;and
WHEREAS,the Salt Lake City Downtown Master Plan calls for the expansion of downtown
arts, cultural,and entertaimnent activities and the creation of a theater district; and
WHEREAS,the anticipated cost of constructing the Theater,based on the preliminary program
and cost estimates, is approximately$100 million to $120 million depending on options;and
WHEREAS,the Theater and its associated facilities and infrastructure will help to activate
Regent Street as a vibrant, inviting mid-block retail street connecting City Creek Center to the
Gallivan Center; and
WHEREAS,the Theater, its associated facilities, and infrastructure improvements on the block
will promote the redevelopment of Block 70; and
WHEREAS,the City is considering issuing sales tax revenue bonds(the"City's Bond"),the
proceeds of which would be used to finance a portion of the costs associated with the Theater;
and
WHEREAS,pursuant to Chapter 4, Community Development, of Title 17C of the Utah Code
(the"Act"),the RDA may approve a Community Development Project Area Plan (the"Plan")
for the purpose of supporting community development within a designated project area; and
WHEREAS,the Proposed Project Area is generally ready for redevelopment and, if the Theater
is constructed, it is likely that commercial and other development will occur, which will benefit
the community by creating additional opportunities and by increasing the tax base; and
WHEREAS,the RDA's adoption of a community development project area plan for the
Proposed Project Area for the purpose of stimulating commercial development within the
Proposed Project Area, including without limitation by use of tax increment created within such
area as a result of the economic development stimulated by the construction of the Theater, and
for the other enumerated purposes,may satisfy a public purpose, provide public benefits, be
economically sound and feasible, conform to the City's General Plan, and promote the public
health, safety, and welfare of the City; and
WHEREAS,the Board of Education of Salt Lake City School District(the"District") has
approved the use of its tax increment from the Proposed Project Area to support the Theater and
development activities related to the establishment of a cultural core in accordance with the Act;
and
WHEREAS, in the event that the RDA approves the Plan,the RDA will desire to enter into an
interlocal agreement with the City and the District pursuant to which the City and the District
will each consent to the RDA being paid a portion of its share of the tax increment from the
Proposed Project Area; and
WHEREAS, in the event that the RDA and/or City do not approve the Plan, the Interlocal
Agreement with the City and District will be void.
NOW THEREFORE BE IT RESOLVED, by the City Council and the Mayor of Salt Lake City,
that:
I. The City Council hereby approves the use of a portion of the City's tax increment
fiom the Proposed Project Area to support the Theater and development activities
related to the establishment of a cultural core in accordance with the Act.
2. The City Council hereby authorizes and directs the Mayor to negotiate and
execute an interlocal agreement among the RDA,the City, and the District
substantially in accordance with the form of Interlocal Agreement attached hereto
as Exhibit A,with such modifications and additions as such officers shall approve
as necessary or appropriate.
DATED this '1st day of Nov. ,2011.
Passed by the City Council of Salt Lake City,Utah, this 1st day of, Nov. , 2011.
SALT LAKE CITY COUNCIL
By: ,k& (
CHAIRPERSON
ATTEST AND COUNTERSIGN:
C17-
a.r
I Y RECORDER
\ -R ATE
SALT LAK OR
By
ATTEST AND COUNTERSIGN:
C—j
RECORDE
APPROVED AS TO FORM
��p iCE CIT�� Salt Lake city Attorneys Office
1V G� Date
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��ORATE StiP
Exhibit A: Project Area Map
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