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Home My WebLink About08/21/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, August 21, 2018 in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Derek Kitchen, James Rogers, Chris Wharton, Erin Mendenhall, Amy Fowler, Charlie Luke, and Andrew Johnston. Staff in Attendance: Jennifer Bruno, Council Executive Deputy Director; Jacqueline Biskupski, Executive Director; Patrick Leary, Mayor' s Chief of Staff; David Litvack, Mayor' s Deputy Chief of Staff; Lynn Pace, Senior Advisor to the Mayor; Margaret Plane, City Attorney; Rusty Vetter, Deputy City Attorney; Lara Fritts, Economic Development Director; Danny Walz, RDA Chief Operating Officer; Tammy Hunsaker, RDA Project Manager; Susan Lundmark, RDA Project Manager; Jill Wilkerson-Smith, RDA Project Manager; Kort Utley, RDA Senior Project Manager; Cara Lindsley, RDA Project Manager; Allison Rowland, Council Public Policy Analyst; Lehua Weaver, Council Executive Assistant Deputy Director; Nick Tarbet, Council Senior Public Policy Analyst; John Vuyk, Budget Director; Mary Beth Thompson, Chief Financial Officer; Katherine Lewis, Senior City Attorney; and Cindi Mansell, City Recorder. Guests in Attendance: Clint Watson, Bicycle Collective; and Jesse Hulse, Bicycle Collective (Architect) ; and Peter Corroon, Corroon Company. Director Kitchen presided at and conducted the meeting. The meeting was called to order at 2 : 06 p .m. A. 2:06:51 PM GENERAL COMMENTS TO THE BOARD Director Kitchen said the Board received a letter from Justin Moran regarding the State Street Project Area creation and traffic considerations . View Letter Kyle LaMalfa addressed the Board to speak about the creation of the 9-Line Community Reinvestment Area (CRA) . He discussed the genesis of this 2014 concept and said the community reinvestment tool was perfect to serve as precipice for west side major change. He expressed appreciation for the project and said it would be the greatest investment in the west side since its 150 years of settlement. He said one thing missing from the CRA was seed money and he encouraged the Board to roll back the base year of establishment to 2014 when this idea was generated in order to build up increment to establish this change. Dan Potts spoke as a west side/Poplar Grove area resident. He said he reviewed the draft plan and felt it was a great start but would refer to an older plan (Blueprint Jordan River) that was indicative of what 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 citizens really wanted. He said people wanted nature and walking and although the CRA would be great to improve conditions, he wanted to see more nature included. Mr. Potts further discussed waste of culinary water, improvements to connections in nature, and overall City use of culinary water through conservation efforts . Carol Hovey spoke about 10th west, excitement about improvements, walking trails, bike paths, and said there were already a lot of families/people on bikes . Santiago Rodriguez did not speak but submitted a written comment card requesting approval by area resident majority/popular vote . Tracy Evans did not speak but submitted a written comment card regarding concerns about the 9-Line CRA Plan and potential impacts to community taxpayers . Michelle Doong and Morroy Yates did not speak but submitted written comment cards regarding RDA assistance to local property owners in redeveloping the neighborhood and incentives that could help small development with tax incentives . B. PUBLIC HEARINGS #1. 2:15:06 PM 9-Line and State Street Project Area Creation. The Board accepted public comment about the draft 9-Line and State Street Community Reinvestment Area Plans. View Attachments Director Luke moved and Director Fowler seconded to close the public hearing, which motion carried, all directors voted aye . 2:30:44 PM Director Mendenhall moved and Director Johnston seconded to reopen the public hearing to allow Tamra Wharton to address the Board. 2:31:14 PM Tamara Wharton referenced the West Valley City Code Enforcement Officer who was murdered and voiced the need for employee and citizen safety. She expressed concern regarding the State Street Project Area Plan and said she and 51 area residents did not want their taxes increased or homes demolished. She said she resided across from a designated CRA and the majority of area residents were not contacted by the Community Council and any public notice was too lengthy and not simple to read. She encouraged the Board to keep the community informed and incorporate comments and concerns . Director Mendenhall moved and Director Rogers seconded to close the public hearing, which motion carried, all director voted aye . 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 #2 . 2:15:23 PM Amending the Fiscal Year (FY) 2018-2019 RDA Budget. The Board accepted public comment and consider amending the Fiscal Year 2018-19 RDA annual budget (Budget Amendment No. 1) . View Attachments Director Luke moved and Director Fowler seconded to close the public hearing, which motion carried, all directors voted aye. C. REDEVELOPMENT AGENCY BUSINESS #1 . 3:33:31 PM Approval of Minutes. Director Mendenhall moved and Director Fowler seconded to approve the minutes of the Redevelopment Agency Board meetings held Tuesday, July 10, 2018 and August 14, 2018, which motion carried, all directors present voted aye. View Minutes (M 18-6) #2 . 3:39:01 PM Amending the Fiscal Year (FY) 2018-2019 RDA Budget. The Board considered adopting a Resolution amending the Fiscal Year 2018- 19 RDA Annual Budget (Budget Amendment No. 1) . View Attachments Director Fowler moved and Director Wharton seconded to adopt Resolution R-27-2018 amending the Fiscal Year 2018-19 RDA Annual Budget (Budget Amendment No. 1) as proposed and including items : Motion Sheet • I-1 Reimburse RDA Central Business District (CBD) for Pioneer Park Improvements Cost Increases ($90,000 - Capital Improvements Program (CIP) Cost Overrun Account) . On July 10, 2018, the RDA Board approved $90, 000 from the CBD' s unappropriated holding account for capital projects . The motion was made with the understanding the CIP Cost Overrun Account - which was intended to provide gap financing in these situations - would reimburse the RDA and that the Administration would review the project for parks impact fee eligibility. This approach was used because waiting for the next General Fund budget amendment would have required the project to be re-bid, thereby exposing the City to likely cost increases and construction delays; and • 1-2 Bad Dog Arts Teen Studio Project Mural Contribution ($2, 940 - Remaining Granary District Mural Account) . RDA Staff recommended using the $2, 940 as a contribution toward Bad Dog Arts' , a local youth and creativity non-profit, Teen Studio Program mural project. Fundraising was ongoing (60% of $88, 900 goal) . Mural would be located at Maud' s Café, an employment training program owned by the Volunteers of America Youth Resource Center, located within the Granary District. This recommendation was not included in the transmitted budget amendment. The Board could appropriate the remaining funds as a Board- added item to the currently open budget amendment; which motion carried, all directors voted aye, except Director Rogers, who voted nay. 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 #3. 3:34:53 PM Northwest Quadrant Tax Increment Policy. The Board was briefed and considered adopting a Resolution for the Northwest Quadrant Tax Increment Reimbursement Policy to support implementation of the Northwest Quadrant Community Reinvestment Area Plan. View Attachments Danny Walz and Tammy Hunsaker briefed the Board with attachments . Ms . Hunsaker provided background on the policy and said the draft policy was intended to facilitate tax increment reimbursements for projects that furthered the purposes of the CRA Plan. She said the draft was presented to the Redevelopment Advisory Committee (RAC) on June 6, 2018, who recommended approval of the Policy as presented. Director Fowler moved and Director Mendenhall seconded to adopt Resolution R-26-2018 adopting a Northwest Quadrant Tax Increment Reimbursement Program Policy, which motion carried, all directors voted aye . #4 . 2:16:46 PM 9-Line and State Street Community Reinvestment Area Plans Final Draft. The Board was briefed and considered adopting the 9- Line and State Street Community Reinvestment Area Plans. View Attachments Jennifer Bruno, Danny Walz, Tammy Hunsaker, and Susan Lundmark briefed the Board with attachments . Staff said early 2016 was the first time this project area concept was brought forward. Ms . Hunsaker discussed the timeline conducted to get to this point and provided a high-level summary. Ms . Lundmark discussed the timeline of community events, which included a majority of favorable comments . Director Mendenhall inquired as to potential to backdate project areas . Mr. Walz said such was not being considered at this time but could be done as part of interlocal negotiations with the community or entities . Director Mendenhall said it would be interesting to see how often that had or had not happened (i .e. consider context or historical precedence) . Ms . Hunsaker said State Code provided for the base year to be the last year the tax was equalized but there could be room for negotiation. Ms . Bruno requested guidance from Legal or Utah State Code in this regard and Director Mendenhall requested various scenarios be provided by staff in this regard. Director Mendenhall moved and Director Johnston seconded to adopt Resolution R-24-2018 adopting the 9-Line Community Reinvestment Area Plan and Resolution R-25-2018 adopting the State Street Community Reinvestment Area Plan as proposed, which motion carried, all directors voted aye . 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 #5. 3:40:10 PM Pricing Terms for Property Located at 901 Gale Street. The Board was briefed and considered adopting a resolution approving a discount of the sales price for 0. 26-acres of real property located at 901 Gale Street. The property would be used by The Bicycle Collective, a local nonprofit, to build a 15, 000 sq. ft . multi-use facility. View Attachments Danny Walz and Tammy Hunsaker briefed the Board with attachments and a PowerPoint presentation. Ms . Hunsaker said the request was for 1000 land write-down of the property purchase price ($280, 000) . She said the RDA Staff had analyzed the Project financials, development plan, and programming plan and recommended the full property write-down. Discussion followed regarding amenities, sidewalk/streetscape design, potential not to receive new-market tax credits, and other financing nuances . Mr. Hulse discussed the design elements and said although some elements were known, they were flexible . Mr. Watson discussed the financial letter of interest and development timeline . Director Johnston moved and Director Wharton seconded to approve Resolution R-28-2018 approving the sales price of RDA-owned property located at 901 Gale Street in the Granary District Project Area, which motion carried, all directors voted aye . 46 . 3:49:27 PM Pricing Terms for Property located at 912 and 916 Jefferson Street. The Board was briefed and considered adopting a resolution that approves the sale pricing terms of RDA-owned property located at 912 and 916 Jefferson Street. If approved, the property would be developed for a mixed-use project proposed by Central Ninth Development Partners in the second phase of the Central 9th Market Project. View Attachments Danny Walz, Susan Lundmark, Kort Utley, Jesse Hulse and Peter Corroon briefed the Board with attachments . Ms . Lundmark said the request was for approval of the full land write-down of the sales price ($385, 000) to allow the proposed mixed-use development project to proceed. She said RDA Staff supported the write-down request from C9 Partners and discussed its various justifications . Discussion followed regarding the 60o Area Median Income (AMI) , and inquired about ways to extend that affordability term beyond 30 years . Mr. Carroon said that was a traditional City term and for low-income tax credits, the Federal or State Government require 15-50 year affordability requirements . Director Fowler said this could be a broader policy discussion as the Board moved forward in constructing more affordable housing. 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 Mr. Hulse said the project was geared towards neighborhood specific work-force housing. He said it was a good fit for the work/live area concept and he did not see the concept of affording to live where working changing over the years . Director Kitchen inquired as to the change from the original proposal of four owner-occupied units to six bedrooms . Mr. Hulse said it was felt this design was a better fit for the neighborhood. He said this scale worked well and although townhouses would have been great (there were issues with financing) , this met the City' s goals better and was overall a long-term better fit for neighborhood. Inquiry was raised about the relationship between the RDA and developer regarding streetscape. Mr. Utley discussed the process of working with Rocky Mountain Power on getting a contract-ready estimate to bury the power lines . He said that burial would remove the artificial height cap for developments that wanted to build taller (fire access to buildings) and flexibility to lay out streetscape, on-street parking, aesthetic factors, urban forestry perspective, more comfortable pedestrian climate, more shade, and more conducive to area residents . Further discussion followed regarding timeline, finalized agreement, design, finalized financing, and breaking ground in fall if not sooner . Director Mendenhall moved and Director Luke seconded to adopt Resolution R-29-2018 approving the sales price of RDA-owned property located at 912 and 916 Jefferson Street in the West Temple Gateway Project Area, which motion carried, all directors voted aye . #7 . 4:01:48 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. Mr. Walz provided various project and staffing updates to the Board. He announced that Jill Wilkerson-Smith had accepted the position of RDA Deputy Director. He said the RDA had hired Robyn Smith for an Administrative position. #8 . Report and Announcements from RDA 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. #9. Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 Item not held. D. WRITTEN BRIEFINGS #1 . Granary District Mural Grant Program Update. The Board received a written update about the Granary District Mural Grant Program. The program would fund eleven art murals, each at a different property location in the Granary District Project Area, among other proposed art projects in the community. View Attachments Written Briefing Only. #2 . Utah Theater Redevelopment Update. The Board received a written update about the Utah Theater redevelopment and adjacent retail property. View Attachments Written Briefing Only. E. CONSENT #1 . 4:03:58 PM Board Appointment: Redevelopment Advisory Committee (RAC) - Brian Doughty. The Board interviewed and considered approving the appointment of Brian Doughty to the Redevelopment Advisory Committee for a term extending through August 21, 2022 . View Attachments Director Fowler moved and Director Luke seconded to approve the appointment as presented, which motion carried, all directors voted aye . F. 2:34:43 PM CLOSED EXECUTIVE SESSION. The Board considered a motion to enter into Closed Session, in keeping with Utah Code §52-4-205 for any allowed purpose . Director Fowler moved and Director Rogers seconded to enter into Closed Session to discuss the purchase, exchange, or lease of real property pursuant to Utah Code §52-4-205 (1) (d) , Utah Open and Public Meetings Law and for Attorney-Client matters that are privileged pursuant to Utah Code §78B-1-137 . A roll call vote was taken; Directors Fowler, Johnston, Kitchen, Luke, Mendenhall, Wharton, and Rogers voted aye. See File M 18-7 for Sworn Statement. In Attendance: Directors Mendenhall, Fowler, Johnston, Kitchen, Luke, Wharton, and Rogers . Others in Attendance: Jennifer Bruno, Margaret Plane, Jacqueline Biskupski, Patrick Leary, David Litvack, Lynn Pace, Rusty Vetter, Lara 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, AUGUST 21 , 2018 Fritts, Danny Walz, Lehua Weaver, Katherine Lewis, Nick Tarbet, John Vuyk, Mary Beth Thompson, and Cindi Mansell . The Closed Session adjourned at 3 : 26 p.m. The meeting adjourned at 4 : 04 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 pursuant to Utah Code §52-4-203 (2) (b) . This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held August 21, 2018 . clm 18 - 8