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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 .