08/06/1991 - Minutes RECEIVED
MIS 2 81991
Community Development Advisory Committee
�Minutes
August 6, 1991
In attendance: Curley Jones, Rawlins Young, Ranae Pierce,
Hermoine Jex, Diana Smoot, Kim Anderson, Marion Willey and
Russell Allred. New members included Addi YoSoy, Nancy
Harrison and Patrick Johnson. Staff: Stephanie Harpst,
Sherrie Hansen, Kathy Ricci and Bob Buchanan.
Excused: Nancy Saxton, Rosemarie Rendon, Rosemary Grim and new
member Wallace Goates .
Marion called the meeting to order at 5:45 p.m. He introduced
the new CDAC members and suggested that all members and staff
introduce themselves to the group.
Stephanie then presented retiring CDAC members with an
appreciation gift. Retiring members included Hermoine Jex,
Diana Smoot, Kim Anderson, Russell Allred and Rosemary Grim.
Bob Buchanan reported the possibility of the City purchasing
the Sugarhouse Post Office with a HUD Section 108 Loan. He
explained the City' s intent to lease the building using lease
revenues to payback the loan, however, payback of the loan
would be guaranteed with CDBG funds . He asked for CDAC' s
recommendation concerning this matter. (See Attachment A) .
Concerns were expressed as to whether rehab money would be
included in the loan or if additional dollars would be
requested from CDBG for rehab. Bob explained that the loan
would include initial rehab money.
Additional concerns were that this project may be like the
Canterbury Apartments . $300,000 of CDBG funding is used
annually for repayment of the 108 Loan obtained to purchase the
Canterbury Apartments . Bob explained those leasing the
building would be required to prove viability of their project
but it is possible that CDBG funds would be required to payback
the loan. He further explained that terms on the Canterbury
108 required the loan to be paid back in 6 years in contrast to
current 108 requirements where terms of repayment are 20 years .
Patrick wanted to know what obligation the City would have of
long term ownership in relation to CDBG. Bob explained that
this project would carry all of the CDBG stipulations . If the
building were sold, the money would flow back to the CDBG
program to satisfy the loan and/or to be reprogrammed.
Rawlins moved and Patrick 2nd that CDAC approve obtaining a
Section 108 Loan to purchase the Sugarhouse Post Office to be
paid back with revenues received through leasing the building.
4 voted in favor of this motion, 1 opposed, 1 abstained.
Motion passed.
Stephanie then distributed a memo to CDAC from Kathy Ricci
which contained information on two CD Project Budget Amendments
that would require CDAC action. (See attachment B) .
The 800 North, 300 to 400 West Street Improvements requires a
budget increase of $28,000 bringing the total amount of the
project to $168 ,000 .
Ranae moved and Addi 2nd to approve the increased budget of
$28 ,000 for the 800 North Street Improvements .
4 voted in favor of this motion, 1 opposed, 1 abstained.
Motion passed.
The Zoning Rewrite project requires a budget increase of
$12, 257 bringing the total amount of the project to $43,507 .
Rawlins moved and Patrick 2nd to approve the increased budget
of $12, 257 for the Zoning Rewrite project.
2 voted in favor of this motion, 3 opposed, 1 abstained.
Motion failed.
Stephanie reminded CDAC that CDBG Applications would be
available on August 19, 1991 .
Meeting adjourned at 8 :00 p.m.
At tachm t A
August 6 , 1991
TO: CDAC
FROM: Bob Buchanan
SUBJECT: City Acquisition of Sugar House Post Office
Over the past several months, staff from the Capital Planning and
Programming Divisions have been examining the role of the City in
preserving the old Sugar House Post Office. Because of its
historic significance and the potential for maintaining the
facility as a community amenity, the Mayor has proposed that the
City acquire the property. The following elements are being
explored as acquisition considerations:
1 . Acquisition using grant programs
. Department of Education
2 . Acquisition by purchase
. Financially self-sufficient
. HUD Section 108 Loan Guarantee
. CDBG eligibility
. Historic/blight criteria
. Loan for both acquisition and rehabilitation ($400,000 -
$500 , 000 )
. Loan to be repaid from lease to community-based
organization(s)
The Section 108 Loan requires the funding to be treated as an
infusion of CDBG monies . An vote of support is request of CDAC.
Attac' it B
gam r) fri my/09 °,41( f
COMMUNITY and ECONOMIC DEVELOPMENT PALMER DEPAULIS
KATHY RICCI
DIRECTOR
Capital Planningand Programming MAYOR
CITY AND COUNTY BUILDING
451 SOUTH STATE STREET, ROOM 406
SALT LAKE CITY, UTAH 84111
Date: August 6 , 1991 TELEPHONE 535-7902
TDD 535-6021
To: Members CDAC
From: Kathy Ricci, Director
Capital Planning
The following projects request additional funds .
800 North Street Project
The current budget is $ 140,000, the requested increase is $28, 000
making the new budget $168, 000 .
The project was originally bid providing for an asphalt tie in from
the new curb and gutter to the existing pavement at an estimated cost
of $33,000 . After construction is complete the street will still have
a high crown. The additional money will be used to completely
reconstruct the street. The resulting cross section will improve
access to and from private property. Since 700 North - 300 West to
400 West has been reconstructed to eliminate the high crown, it is
recommended that 800 North be reconstructed in the same manner.
Although this adjustment will take a large amount of available
contingency, it should be noted that the projected underrun on the 700
North budget will be approximately $10,000 . If additional funds are
still required to finish the 800 North project unused funds from 700
North can be used. The balance in contingency will be $32,000 after
this revision.
Zoning Rewrite Project
The current budget is $31, 250, the requested increase is 12,257 making
the new budget $43, 507 .
The additional funds requested will be to provide a workshop between
the consultant team and the Zoning Rewrite Committee prior to drafting
the table of contents . This meeting is important because the Zoning
Rewrite Committee and subcommittees were not in place in April when
the consultant team was in Salt Lake. The consultant will provide an
education program for the committee so they can gain an understanding
of zoning concepts and solutions . The total funding already approved
for this project is $265,000. The balance in the 17th year CDBG
operating contingency will be $28,093 .