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04/11/2017 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, April 11, 2017 at 2 : 11 p.m. in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Lisa Adams, Derek Kitchen, Erin Mendenhall, Stan Penfold, Charlie Luke, and Andrew Johnston. Absent: Director James Rogers Staff in Attendance: Jennifer Bruno, Council Executive Deputy Director; Jacqueline Biskupski, Redevelopment Agency Executive Director; Margaret Plane, City Attorney; David Litvack, Mayor' s Deputy Chief of Staff; Lara Fritts, Economic Development Director; Benjamin Luedtke, Council Office Policy Analyst; Ed Butterfield, Senior Project Manager; Crayola Berger, Accountant II; Kort Utley, Senior Project Manager; Benjamin Davis, Project Manager; Katie Lewis, Senior City Attorney; John Vuyk, Budget Director; and Cindi Mansell, City Recorder. Others in Attendance: Ashley Patterson, Wasatch Gardens Executive Director; and Camille Winnie, Downtown Alliance Director of Community Services . Director Adams presided at and conducted the meeting. 2: 11: 46 PM The meeting was called to order at 2 : 11 p.m. A. COMMENTS #1 . 2:11:55 PM Redevelopment Agency (RDA) Budget Amendment No. 4 for Fiscal Year 2017 Public Hearing. The Board will accept public comment regarding a resolution amending the final budget of the RDA for Fiscal Year 2016-2017. View Attachments 2:33:14 PM Director Luke moved and Director Kitchen seconded to close the public hearing, which motion carried, all directors present voted aye. #2 . 2:12:31 PM General Comments to the Board. The RDA Board of Directors will receive public comments regarding Redevelopment Agency business. George Chapman addressed the Board with the following concerns : long-term ownership not being allowed according to UCA 17-C; utility undergrounding and significant cost increases similar to the 900 East Street Car issue and tracks removal on 400 West; 900 South Form-Based Zoning rather than spending funds undergrounding; Budget Amendment No . 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 4 should include assistance relative to the Downtown Alliance Ambassador Program; selling properties and using funds for housing; spending should cease until all plans are finalized relative to homeless assistance; quiet zones; 400 West reconstruction should include wider sidewalks; 500 West park removal; wider bike lanes on 300 West; 300 West improvements would see influx in traffic on Capitol Hill; more information on when trains are scheduled and crossing; State Street and North Temple are more important than other areas; not spending all money looking at bonding on Depot/Gateway items; need for larger panhandling sign size; and funding for Airport Trax. B. REDEVELOPMENT AGENCY BUSINESS #1 . 2:15:13 PM Green Team Presentation. The Board will receive a presentation from the Green Team who will highlight the success of their job skills program and potential future partnerships. View Attachments Ashley Patterson and Camille Winnie briefed the Board with attachments and a PowerPoint presentation. Ms . Patterson referenced the program mission "to empower people of all ages and incomes to grow and eat healthy, organic, local food" . She discussed the Wasatch Community Gardens program and project progress report associated with six of the eight women who have completed the pilot project. The Board thanked the Green Team for this critical community partnership program. #2 . 2:33:48 PM RDA Budget Amendment No. 4 for Fiscal Year 2017 . The Board will continue to discuss and consider approval of all or pieces of the proposed fourth and final amendment to the FY 2017 RDA Budget (View FY16-17 RDA Budget Chronology) . View Attachments Jennifer Bruno, Ben Luedtke, Ed Butterfield, John Vuyk, Kort Utley, Benjamin Davis , and Crayola Berger briefed the Council with attachments . Ms . Bruno reviewed the proposed Administrative budget changes . She said the majority of the amendment was to reconcile the actual tax increment with the budget. Director Mendenhall questioned the Central Business District (CBD) project and inquired as to the remaining $158, 000 . Ms . Bruno said portions were allocated between the Eccles debt payment and payment for Administration. Director Adams requested additional discussion with Administration about Administrative funds and how they were distributed. Mr. Butterfield addressed the expected shortfall based on increased 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 Administrative charges . He explained in effort to be proactive, Staff prepared a projection of those additional expenses and had recognized potential for shortfall in the FY16-17 budget . He said if those funds were not used, they would be available for re-appropriation. He said that Administrative budget had been provided to Council Staff. Director Mendenhall requested calculations be separated out in detail and not just reflect a total amount . Director Johnston inquired as to cost savings realized from staff vacancies . Mr. Butterfield said vacancy funds typically went forward reimbursing other positions . Ms . Berger said the Personnel Budget was in good shape and the Administrative fee area was the concern. Director Johnston inquired if RDA Staff time was budgeted to specific project areas . Mr. Butterfield said there were two project teams tied to areas and others broken up according to priority projects being worked on. Ms . Bruno said some project areas explicitly restrict collection of Administrative funds . Mr. Butterfield said Staff could break out costs per project area. Ms . Bruno said Staff would try and work through these and other policy questions during the budget process . Director Adams said the RDA needed to talk with its legal counsel about developing a policy to provide guidance on utilization of unexpected surplus or shortfalls and tax increment . The Board discussed the Regent Street and Eccles Theater Debt Account . Ms . Bruno said the Board could have a discussion and consider adopting a policy regarding use of these funds, the appropriate amount of the reserve fund, and what could/should happen to those funds if they were not needed for debt service . She said currently these funds were staff managed but it might be good to have a policy in writing. She said given the debt service shortfall, they were probably not at the point to use leftover funds, but should be in the future (the policy should also address that) . Ms . Bruno said the Board could discuss funding the five-year Eccles Theater Operating Agreement as well as Regent Street long-term maintenance . The Board discussed the idea of a Special Assessment Area (SAA) , whether it would be fair to impose after the fact, and the challenge in locating a method to fund maintenance . Ms . Bruno reviewed the North Temple Viaduct increment, its partnership between the RDA and General Fund, and the Community Development Area (CDA) established to collect tax increment in the area immediately to the north to help offset the debt service on the bonds . Director Penfold commented on potential to consider this a model for structuring debt to reimburse the General Fund for historic debt service. 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 Inquiry was raised as to the hiring status of the new full-time position within the Finance Department to be involved in the RDA budgeting. Mr. Vuyk discussed the timeline and hiring process; he said the position had been reposted. It was noted that Staff would be returning to the Board shortly with a draft scope of work and that might entail future policy conversations concerning the position. Ms . Bruno reviewed Pooled Resources versus Project Area resources and said the Board could discuss prioritization. She referenced the inventory of previous priority projects recommended for funding for many years that were not funded. Director Penfold inquired as to the property disposition proceeds policy. Ms . Bruno noted they were handled in various ways with limited restrictions on disbursement throughout multiple project areas . She said the Board could chose to have a valid policy discussion as to investment or re-investment of proceeds . Director Adams inquired as to the status of the parking study implementation. Ms . Bruno said funds had been reprioritized. Director Adams inquired as to the Plaza at State Street. Mr. Utley said the RDA did not own that property due to foreclosure and the bank was working through its disposition. Director Penfold referenced the Project Area expiration listing and said it would be helpful to include original date of creation, date of original expiration, and dates of any extension (s) . Director Adams asked for an update on the Utah Theater redevelopment. Mr. Davis said negotiations were ongoing with the developer and the RDA entered into a second agreement in January of this year . He said Staff was working with them to return to the Board to present a plan and seek feedback on what they would like to do on the East side . Director Kitchen inquired how the second agreement with this group was different than the first agreement . Mr . Davis explained the first agreement that had expired was specifically with the LaSalle Group with the option to add Hines Development; and the second agreement was with both jointly with no other substantial changes . Director Penfold moved and Director Kitchen seconded to approve Resolution R-3-2017 adopting Budget Amendment No. 4 to the FY 2017 RDA Budget including all items as proposed, which motion carried, all directors present voted aye. Director Mendenhall was absent for the vote. 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 #3. 3: 04:37 PM RDA Budget Amendment No. 3 for Fiscal Year 2017 . The Board will continue to discuss and consider approval of all or pieces of the proposed third amendment to the FY 2017 RDA Budget. View Attachments Jennifer Bruno, Benjamin Luedtke, Jacqueline Biskupski, Lara Fritts, Katie Lewis, and Ed Butterfield briefed the Board with attachments . Ms . Bruno referenced a memo received from Administration identifying the top five priority items to consider for adoption as part of this budget amendment as follows : Revolving Loan Fund; Program Income Fund; Grant Tower Debt Service (Depot District) ; Rio Grande Hotel Capital Reserve; and Fundraising Fulfillment. Director Penfold expressed concern relative to capital reserve criteria, and whether General Fund capital dollars expire or were carried forward. Ms . Bruno said this replicates the same formula and aligns the RDA with the City budget practices . Ms . Bruno said there was an additional item not included in the memo to clarify funding source adjustments to the $17 . 1 million Citywide Affordable Housing Initiative . She said Administration had proposed these adjustments to the funding sources previously approved by the RDA Board in October. She said the adjustments did not change the overall funding amount (only proposed sources) and this could be adopted as part of the budget amendment. She said this would allow Administration to set up and prepare for the Fiscal Year 2018 Budget. Mr. Butterfield addressed the funding shifts . Director Kitchen expressed concern as to the Depot District and said he wanted Board direction as to desire or appetite for bonding or other options before moving forward with this change and possibly others . Ms . Bruno said this essentially was cash that originated in the Depot District and because there would be future bonding conversations, this could serve as a placeholder going forward. She said the challenge in not adopting some sort of arrangement to come up with the $17 . 1 million was that it would be difficult for Administration to put together the annual budget. She clarified funds were not being spent and identifying sources would not limit options . Director Mendenhall inquired as to the Sugar House increase and whether the increment increase was reflected in Budget Amendment No. 4 . Mr. Butterfield explained the difference in increment and cash on hand; he said there was additional interest income identified and expenses removed from projects . Director Mendenhall referenced the tax increment budget change and how those dollars were reflected from housing allocation. Ms . Bruno clarified this would be the last year there would be traditional RDA funds in the Sugar House District and everything else would reflect a pass through in terms of increment. Director Mendenhall inquired as to whether funds were taken from 17 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 projects . Mr. Butterfield said when the Board appropriated the $17 . 1 million, Staff reprioritized items and some of those smaller amounts could have been in older or leftover accounts . Ms . Bruno said there were a couple of projects that appeared in Budget Amendment No. 2 and not in No. 3 for a variety of reasons . She said it was difficult to say those were directly related to housing or were not funded because of housing shifts but there were some differences when comparing the two. Director Johnson requested clarification as to the definition of "leveraging funds" . He said the intention of the Housing Fund was to ensure there was equitable housing across the City. He said there might have been unintended effects at the expense of project areas that needed investment up front (North Temple reduction example) . Ms . Bruno said funding for North Temple was augmented with the Program Income Fund. She said this type of enhancement was something the Board could consider in the future to address those concerns about project areas that needed a head start. She said this process would be more settled when the City adopted the Housing Plan to define how funds were deployed (how all of these policies were reconciled) . Director Penfold said perhaps the next step in discussion would be more about where funds were coming from versus where these funds were invested. He said it might involve a policy conversation about how to generate revenue for the affordable housing component. A unanimous 5-0 Straw Poll was taken in favor of discussion to explore bonding for these areas (All directors present were in favor, except director Luke who was absent) . Ms . Bruno said in many cases funds for studies would be bond eligible . She said because some of the projects were not far enough along in terms of project funding, the Board could consider funding the studies with cash to move forward. Discussion followed regarding the different types and methods for bonding (i .e . City versus RDA/taxable versus tax- exempt, type of bond) . Ms . Bruno said Staff would require time to conduct analysis on the entire spectrum of options . She reviewed the outlined 10 new programs and projects that might be bond eligible. Director Kitchen said he wanted the 500 West and Public Market Study analysis to consider foot traffic (ensure pedestrians could get easily to and from) . Director Adams said she wanted to see the Jordan River Parkway Trail Connection funded with Budget Amendment No. 3 . Director Johnston requested policy delineation to define issues up front and determine payment options . Ms . Bruno said the Board could consider how those flexible dollars were used versus an overall policy 17 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 in guiding them. Discussion followed regarding commitment to direct dollars as they became available and as projects were defined, and ensure using the most flexible dollars where they could go the distance . Director Penfold said he saw direction for Staff to research around potential project areas, what investment would kick off priority reinvestment in areas quickly, how to do that up front, whether that would be part of the creation process, did it include housing, infrastructure, transit, or what would most likely project a rapid return on investment. Ms . Bruno said the project would determine financing tool options . Director Mendenhall referenced the Small Business Building Purchase Program and said there were some businesses she wanted to nurture. Director Penfold said there were ways to offer incentive to those businesses the City wanted to see (strategize those that were complimentary to goals) . Ms . Bruno said the City could structure a Request for Proposal (RFP) in a manner to incentivize the desired businesses and seek responses based on established criteria. Ms . Fritts discussed various ideas or methods to balance applicants or measure them against area strategic plans . Executive Director Biskupski said she wanted to learn more about how to ensure appropriated funding opened up for applicants that were helping businesses that serve area quality of life and assist in meeting that strategic plan. She said the key was utilization of accurate language in the search for community partners . Ms . Fritts said Staff would work to ensure they were crafting policies and programs that achieved specific objectives to enhance the retail mix with commercial business . Ms . Lewis discussed legal interpretation relative to existing business, enforcement, business license perspectives, etc. and said enforcement was key. Inquiry was raised relative to "claw back" provisions, with Ms . Lewis stating such could be included in the agreement terms . Discussion followed regarding program options or partnerships to make improvements to buildings . Ms . Bruno reviewed ongoing programs and projects . Director Adams referenced the Portable Garden Relocation and urged the Board to adopt the beneficial allocation of $40, 800 as part of the budget amendment. Director Johnston referenced the Quiet Zones not being recommended for funding. He said this would fit under the housing discussion he wanted to have at some point. Ms . Bruno said this would entail a large discussion and would not appear in the Annual Budget unless included by Administration. Director Johnston expressed frustration that big discussions typically went beyond budget cycles and the ongoing 20 years 17 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 of trying to get this done affected his view of the North Temple housing project. Inquiry was raised regarding the 10 Percent School Construction Fund. Mr. Butterfield reviewed the contractual funding obligation. Mr. Luedtke summarized the discussion and items for voting consideration. 4:48:01 PM Director Kitchen moved and Director Luke seconded to approve Resolution No. R-2-2017 to adopt the following items relating to Budget Amendment No. 3 for Fiscal Year 2017: 1. $16, 016, 058 - The Revolving Loan Fund; 2. $120, 000 - Project Area Creation from Project Income Fund; 3. $4,330 - Grant Tower Debt Service from Depot District; 4. $59,476 - Rio Grande Hotel Capital Reserve from Depot District; 5. $187,444 - Fundraising Fulfillment from Block 70; 6. Clarification of revenue sources for the $17, 138, 143 Affordable Housing Initiative (see Motion Sheet for chart) ; 7. $25, 000 - Jordan River Parkway Trail Connection from North Temple Project Area; 8. $267. 000 - Arctic Court Infill Home from Program Income Fund; 9. $40, 000 - Portable Garden Relocation from West Temple Gateway; 10. $32,354 - 10 Percent School Construction Fund from North Temple; and 11. $17,500 - from Central Business District to the Administrative Budget to Split 50/50 with the Council Office Board Member Travel Costs Related to the Downtown Alliance's 2017 Urban Exploration Trip; and to defer action on the remaining items, which motion carried, all directors present voting aye. #4 . 4:49:35 PM Report and Announcements from the Executive Director. Report of the Executive Director, including a review information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input. Item not held. #5. 4:49:47 PM Report and Announcements from the Staff. The Board may review Board information and announcements. The Board may give feedback on any item related to City business, including but not limited to scheduling items. Item not held. #6. 4:49:56 PM Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Item not held. 17 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, APRIL 11 , 2017 C. WRITTEN BRIEFING #1 . 4:50: 11 PM 901 South Gale Street Tier 1 Pre-Disposition Property Report. View Attachments Written Briefing Only. D . CONSENT #1. 4:50:21 PM Set dates for the FY 2018 Budget Public Hearings . The Board will set the dates of May 16, May 23, and June 6, 2017, at 7: 00 p.m. to accept public comment relating to the proposed RDA Budget for FY 2018. Director Pen fold moved and Director Luke seconded to approve the Consent item by setting the public hearing dates as proposed, which motion carried, all Directors present voted aye. (Note: This Budget will be sent to the Board in conjunction with the City' s Annual Budget, on May 2, 2017 and will be made public at that point. ) E. TENTATIVE CLOSED SESSION The Board will consider a motion to enter into Closed Session in keeping with Utah code §52-4-205 any allowed purpose. Item not held. The meeting adjourned at 4 : 50 p .m. Redevelopment Agency Chair Secretary This document is not intended to serve as a full transcript as additional discussion may have been held; please refer to the audio or video for entire content. This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held April 11, 2017 . clm 17 - 9