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12/12/2017 - Minutes (4) MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, December 12, 2017 in Room 326, Committee Room, City County Building, 451 South State. In Attendance: Directors Lisa Adams, Derek Kitchen, James Rogers, Erin Mendenhall, Stan Penfold, Charlie Luke, and Andrew Johnston. Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; David Litvack, Mayor' s Deputy Chief of Staff; Danny Walz, Redevelopment Agency Chief Operating Officer; Tammy Hunsaker, Project Manager; Susan Lundmark, Project Manager; Lara Fritts, Economic Development Director; Benjamin Luedtke, Council Policy Analyst; Ed Butterfield, Senior Project Manager; Crayola Berger, Accountant II; Katie Lewis, Senior City Attorney; Mary Beth Thompson, Finance Director; John Vuyk, Budget Director; and Cindi Mansell, City Recorder. Also in Attendance: Daniel Nackerman, Executive Director, Housing Authority of Salt Lake City; Michael Michaelson, Eide Bailly Partner; and Trent Bateman, Eide Bailly Audit Manager. Director Adams presided at and conducted the meeting. The meeting was called to order at 2 : 06 p .m. A. 2:0 7 :17 PM GENERAL COMMENTS TO THE BOARD George Chapman expressed concern that the Redevelopment Agency (RDA) owned $100, 000, 000 worth of properties that were not being used. He said owning the properties over 10 years did not make sense when considering the ongoing housing/homeless situation. He requested the RDA refocus on repurposing property versus continuing to retain them for years . He reiterated the need for homeless storage facilities for those working. He thanked the Board for listening; and specifically, Chair Adams for her tenure . B. REDEVELOPMENT AGENCY BUSINESS (RDA) #1 . 2:09:02 PM Approval of Minutes . Director Mendenhall moved and Director Johnston seconded to approve the minutes of the Redevelopment Agency Board meeting held Tuesday, November 28, 2017, which motion carried, all directors voted aye. View Minutes #2 . 2:09:20 PM RDA Budget Amendment No. 3 Addition for Fiscal Year 2017-2018 . The Board will have a follow-up discussion and consider closing the proposal for RDA Budget Amendment No. 3 for Fiscal Year 2017- 18. View Attachments 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 Danny Walz and Daniel Nackerman briefed the Board with attachments . Mr. Walz referenced RDA Budget Amendment No. 3 adopted at the December 5, 2017 meeting and discussed new information regarding status and potential options for the development of the Capitol Motel . He said Staff was in the process to identify the details of the project with the Housing Authority and would come back to the Board with a loan request per the adopted process . Mr. Nackerman said they were one of 3, 200 Housing Authorities in the country that spent time and effort acquiring and developing homeless response . He said they had been working on this with the Blue Ribbon Commission for many months and had great detail available as well as general policy direction. He said the income mixes were obviously of great interest to the Board, and they were working at either the 33 or 40o Area Median Income (AMI) threshold at this point (as well as project size) . He said there were some signage issues and direction would be requested from the RDA Board when necessary. Director Johnston expressed desire to adhere to clear policy directing equitable AMI ratios across the City. Mr. Nackerman said this project would meet 15 of the 22 Salt Lake City (SLC) housing strategies (some not being applicable) . He said they paid close attention to written direction from many entities; specifically, the SLC housing policies . Director Johnston said the ratio of affordable units to market units was important to him and he encouraged applicants to enable the Board to understand the rationale as projects came forward. Director Rogers moved and Director Luke seconded to approve amending previously adopted Resolution R-14-17 (Budget Amendment No. 3) to amend the FY 2017-18 RDA Budget to include setting aside $3 . 2 million in funds to facilitate the redevelopment of the Capitol Motel and the Board would consider an application for funding at the time it was received after the standard review and application process; and the Board encouraged the applicant to structure the project in a way that addressed the guiding principles as adopted, which motion carried, all directors voted aye except Director Penfold, who was absent for the vote. #3. 2:15:35 PM RDA 2016-2017 Audit Review. The Board will review and consider accepting the 2016-2017 RDA Audit, which shows the agency's financial conditions as of June 30, 2017. View Attachments Danny Walz, Trent Bateman, and Michael Michaelson briefed the Board with attachments . Mr. Michaelson briefly discussed the audit process and procedures undertaken. Director Mendenhall moved and Director Luke seconded to approve the Redevelopment Agency of Salt Lake City Annual Financial Report for the 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 year ended June 30, 2017 as presented, all directors voted aye except Director Penfold, who was absent for the vote. #4 . 2:28:20 PM RDA Bonding Scenarios Response. The Board will discuss the Administration 's response to funding strategies bonding scenarios for several RDA projects. View Attachments Danny Walz, Jennifer Bruno, Ben Luedtke, and Mary Beth Thompson briefed the Board with attachments . Mr. Walz discussed the general information provided by George K. Baum & Co. (City Financial Advisors) , relating to financing certain infrastructure projects with bonds, and repaying those bonds with RDA funds (Program Income Fund (PIF) and tax increment) . He said the recommendation was not for using financing tools like a bond at this time, but it could be considered a strategy for how those projects might be accomplished without debt financing as a tool . He suggested discussion about bonding early in the life of a project area or surrounding larger policy conversations to identify funding sources . He referred to the table summary for each bond-eligible project and said the Board might wish to discuss these items further. Director Mendenhall said funds that were earmarked for projects were not happening and many were in the current RDA Capital Improvement Project (CIP) allocations . Ms . Thompson addressed the previous information surrounding sources of cash on hand per project area, including projections and assuming a 2-3% increase on tax increment . She said Finance could work on updated amounts . Discussion followed regarding maintenance cost estimates for various projects, with the Board stating they appreciated having the ongoing maintenance costs defined up front before contemplating CIP project expenditures . Director Mendenhall requested consideration of special assessment areas or special improvement districts as a funding source for ongoing Station Center maintenance. She inquired as status of the 4th West reconstruction. Mr. Walz discussed plans for moving forward to go out to the market for developers and identify economic impact and questions up front . Director Mendenhall said the initial million dollars to do construction-level design (without additional commitment) seemed like a missed opportunity to get the area off the ground or as a leverage point for developers considering the area. Director Kitchen discussed cash on hand sources and the philosophy to consider bonding to achieve as many projects at the same time as possible . He said design expenses could be wasted if there were no funding to move forward and he was not comfortable with the 4th West answer. He inquired as to Board thoughts on the two project areas expiring within five years (Depot and Granary) and previous discussion as to potential of extending or redrawing the project area boundaries . 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 Mr. Walz said he did not feel bonding was the appropriate solution given the size and cost of some areas . He said in looking at project costs, there was no way to do them within their own project area and the solution should not be bonding against PIF. He said there was need for direction on how to proceed with funding and what had been provided was a viable solution for moving forward on identified projects now with the available funds . Director Mendenhall said dialogue should begin now about the Station Center Area instead of waiting until expiration. Director Kitchen said he would not support extending the Granary Area but preferred to find a way to complete the 4th West project. Discussion followed regarding financing options, with Director Kitchen stating he would have a hard time asking for additions from the taxing entity partners . He said he felt it was important to determine a way to finalize the vision for 4th West/catalytic project in the Granary District before the project area expired. He said there was need to be creative as to how to get there. Director Rogers said he was interested in a much more robust discussion about extension of project areas . He said he wanted pros and cons from Legal and RDA Staff on the process . Director Johnston discussed the need to figure out what would jump start the economic growth and this concept seemed like a backwards concept. He said he was wary of area extensions and more interested in identifying specific projects from Staff perspective to generate tax increment within a defined time period and then conduct further discussion. Mr. Walz requested Board direction on the Staff proposal of land write-down taxes to fund construction of the Station Center infrastructure improvements (using cash on hand to get the project started) . Ms . Bruno said the Board would have to approve the land write- down because it required budget action and allocation to define the specs and return the term sheet for Board approval of the specific amount. Director Mendenhall said in order to consider the term sheet with the land write-down, she wanted to see language in the contract that would make the developer agreeable to an assessment area or other mechanism to collect ongoing operation expenses from those land owners . A unanimous Straw Poll was taken in favor of consideration of "details only" on the land write down taxes from Staff at this time. Director Penfold joined the meeting at this time. #5 . 2:55:18 PM Project Area Creation Process and Update on 9-Line and State Street Community Reinvestment Areas . The Board will receive an 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12, 2017 update on the project area creation process, including plan components like goals, objectives, tactics, and geographic target areas for the proposed 9-Line and State Street community reinvestment area . View Attachments At this time, the Board recognized and congratulated Tammy Hunsaker for recently receiving the Utah Housing Coalition "Person of the Year" Award. Danny Walz, Jennifer Bruno, Tammy Hunsaker, and Susan Lundmark briefed the Board with attachments . Ms . Hunsaker discussed the 9-Line Project Area and the associated five outlined objectives . She said the draft goals were taken directly from the 9-Line Master Plan as adopted in 2014 and there was extensive public outreach done at that time . She highlighted neighborhood revitalization, commercial corridors, employment centers, housing, public spaces, and transportation. The Board discussed geographical target areas . Director Johnston questioned the area west of Redwood Road to Interstate 215 (I-215) and how much land the City owned. Ms . Hunsaker said Staff could return with specifics, but she understood approximately 25% of the land within the 9-Line Project Area was located in Salt Lake City. She said that particular area included the old landfill site and Staff could take a closer look and analyze redevelopment potential for that area. Director Johnson said he was interested in destinations west of the 9-line and redevelopment potential along the corridor by I-215 to analyze abilities for development for maximizing tax increment reimbursement back into the fund. Ms . Lundmark said there would be opportunity going forward to identify specific projects . Director Mendenhall said the map illustrating development south of 9th South was not there when contemplation of this project area began. She inquired as to backdating the tax increment collection. Ms . Hunsaker said Staff could investigate and return with information. Director Penfold suggested identification as employment centers or connections with items already happening (including corridors or connections) rather than titling them as industrial park to provide a range of options in that area. He said another piece he wanted to see incorporated was from the Transit Master Plan (TMP) which identified the 9th South corridor as one of those potential high-frequency connection corridors for transit and it would make sense in concept of moving people along the employment corridor as well as connecting residents out to corridors on either side . He said the Redwood Road component of the TMP would also be important for connectivity back into light rail on the North Temple corridor. 17 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 Director Kitchen said he was eager to see the RDA highlight the enormous opportunities for this formerly neglected part of town. He said he looked forward to growth coming and building a city of neighborhoods and mixed-uses, 9-Line, housing potential (infill opportunities, and connectivity for trails and outdoor recreation. He said he appreciated the Staff work conducted relative to public engagement and felt the information reflected community desires . Director Johnston said the TMP and 9th South was a great idea but not executable in short term. He said he felt 13th and 4th South could function similarly and be higher priority and implemented quicker to reflect access . He said he saw major barriers in trying to connect 9th South to Redwood Road at this time . Director Penfold said he hoped to see these goals identified as within short-term opportunities . He said the most exciting opportunity was connections from the downtown core to the west side, and Redwood Road seemed the most logical to provide services to a community lacking in public transit to achieve access to employment centers . Director Adams noted questions raised by the Redevelopment Advisory Committee (RAC) . She said when speaking about facilitating previously contaminated land and transitioning, she felt it was important to work directly with the legal team to ensure the City' s responsibility (or not) which could lead to future litigation. She said she wanted to see an example that could be utilized as a solution in many locations Citywide . Ms . Lundmark reviewed the State Street Project Area and said the objectives were similar to 9-Line. She said the goals were slightly different and focused on neighborhood revitalization to envision State Street as a vibrant destination well served by transit and comfortable for walking and shopping. She reviewed the objectives for neighborhood revitalization, commercial corridors, employment centers, housing, public spaces and transportation. Director Mendenhall spoke regarding furthering purposes and neighborhood revitalization. She said Staff was asked back in January to specifically put together priorities for areas surrounding the Homeless Resource Centers (HRC) . She said Director Kitchen also requested Staff put together some neighborhood reinvestment strategies through the RDA as part of this particular project area. She said she was disappointed that information was not included. She requested Staff to return with a package of opportunities to address crime and such was not clearly or adequately represented in the document. She expressed the desire for a more strategic approach that could include items such as lighting infrastructure, specific prioritization of vacant/for sale properties, 17 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 reduction of criminal activity via connectivity or by reducing potential hiding places in developments, addressing alleyways, etc. She said the RDA developed strategies in other areas and the Board really wanted that package of ideas they requested almost a year ago. Director Mendenhall said she wanted to discuss key or priority properties and what that meant for this area. She referred to catalytic projects not defined and requested clarity around those for the public and/or developer sake . Discussion followed regarding this being a new area which included potential for bonding opportunities . Director Mendenhall referred to the 9th South off-ramp utilization study (previously funded) within this project area and said if the ramp could be shortened it could become an incredible catalytic project. Director Mendenhall addressed the objective encouraging street trees and requested clarity surrounding median versus park-strip trees . She said there was importance of timing and sensitivity associated with park-strip trees and she wanted to see language that better articulated the path to timing success and implementation. Director Mendenhall referenced employment centers and said O.C. Tanner, Salt Lake Community College (SLCC) , and the Salt Lake County Complex area were existing employment centers or potential partners within this project area. She encouraged Staff to return with language to recognize those . She referenced the housing objective to explore options for using a third-party consultant to conduct a gentrification and displacement risk assessment . She said she wanted to include a separate point that addressed continuity of housing as a priority and requested Staff return with phrasing ideas . She said there had been a lot of work and community momentum done on the 17th South Trax desire for the area and she wanted to see future exploration of 17th South Trax stop with the Utah Transit Authority (UTA) and SLCC. Director Mendenhall referenced the geographical target areas and the two HRC' s specifically included. Discussion followed regarding areas "2" and "4" and the reasoning for the break of a couple of blocks between them as illustrated. Discussion followed regarding benefit of a contiguous area, with Mr. Walz stating the geographic areas were not a required component of the plan and merely a discussion of Board priorities . Director Mendenhall recommended adding the two HRC' s and the 9th South off-ramp area into the plan. Director Johnston discussed the best method to invest money now to produce growth later. He inquired if that were different than focus on maintenance areas . Mr. Walz stated that depended on how specific the Board wanted to highlight properties . He discussed including the map and said Staff had proceeded broad versus property by property. He suggested 17 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 in the narrative, a project could be identified as potential for resulting benefits rather than try to define it geographically. He said Staff could return with language proposals in the final plan. Discussion followed regarding the timeline for plan adoption. Mr. Walz stated it would be in the spring. Director Johnston said the two HRC' s appeared to be a major priority to consider quickly relative to infrastructure upgrades . Further discussion followed regarding definition of the real property solutions and priorities . Director Mendenhall said she wanted to include a specific point under housing (or another area) to provide public infrastructure specific to social services as a category to address in the project area. She discussed the need to include social services specific to needs of human trafficking survivors associated with the area to provide the opportunity to work with the growing number of supporters such as the District Attorney, Domestic Violence Centers, Junior League, and other government agencies to create those services . Director Rogers discussed boundaries and the RAC recommendation to include the west side of Main Street. Ms . Lundmark said the issue was new development potential; however, it was not a question of whether it would be included in the project area but whether or not it would be included within the geographic target area. Discussion followed regarding why the concept was included. Ms . Lundmark stated Staff merely brought forward RAC recommendations for Board consideration regarding resources available throughout the project areas . Ms . Lundmark said Staff could take a closer look at Tier One properties . Ms . Bruno offered clarification, she said the difference was in reporting and inclusion considered whether the Board felt a particular property needed that level of oversight or not. Inquiry was raised as to whether the 9th South off ramp was necessary to call out. Director Mendenhall referenced the map and said the 9th South off ramp was not included (removed in previous boundary discussion) and she wanted to keep the 9th South ramp in the project area. Ms . Lundmark said it was already included in the Granary Project Area to Main Street with a 2018 West Temple Gateway project expiration. Director Mendenhall said it was a shame to lose the block due to expiration of the project area. Discussion followed regarding inclusion into a different project area. Mr. Walz said Staff would review the issue (9th South/from 3rd East) . Director Penfold said business nodes seemed like a challenge in this area in relation to the neighborhood concept and also the concept of State Street as a significant transportation corridor. Ms . Lundmark said she was not sure those specifics were included in the public process, but what Staff heard was people wanted places they could walk 17 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 to without having to drive (corner grocery) and access by transit made this plausible . Director Penfold inquired if there was desire to look at State Street as a corridor that needed to be emphasized or identified in a place making manner. He referenced the Marmalade and 300 West areas and similar consideration of the opportunity to give this entire area shared identity. He said he hoped not to lose opportunities of connectivity or identity along the corridor in the process of looking up specific target areas . Director Penfold suggested an interesting opportunity from Interstate 80 (I-80) into the core downtown to give personality and identify this corridor with somewhat of a neighborhood feel (medians, lampposts, banners, calling out neighborhood connectivity) . Mr. Walz said RAC would be conducting public outreach in January and that information would return to the Board. He said Staff would return with additional information/refined thoughts in February. #6 . 3:51:21 PM 1500 West North Temple Tier 1 Pre-disposition Property Report (Overniter Motel Property) . The Board will receive an update on the proposed disposition plan for the 1500 West North Temple property. View Attachments Danny Walz briefed the Board with attachments and reported on the estimated timeline of disposition. He said the Board had requested the Request for Proposal (RFP) process be completed by the end of the current calendar year; however, various community organizations requested ability to provide input prior to the release . A unanimous Straw Poll was conducted in approval of extending the time period to allow for the RDA to meet with organizations prior to finalizing and releasing the RFP in January of 2018. All directors were in favor, except Director Rogers, who was absent for the vote. #7 . 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. #8. 3:54:39 PM 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. 17 - 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 Lara Fritts thanked RDA Chair Adams and Vice Chair Penfold for their service to the community on behalf of the RDA Staff. She said the RDA had accomplished a great amount under their leadership and presented them both with a small token of appreciation for everything they had done and for their service and commitment to the RDA team. #9. 3:56:44 PM Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Director Adams then presented a small token of appreciation to Danny Walz and Lara Fritts . C. WRITTEN BRIEFINGS #1 . 3:58:09 PM Semi-Annual RDA Owned Property Report - As of December 2017 . The Board will receive a written briefing of all Tier 1 and Tier 2 properties owned by the RDA, as per the Land Disposition Policy. View Attachments Director Adams noted (and referenced George Chapman' s concerns) that Staff was aware the RDA owned more properties than necessary. Mr. Walz said discussions with the RDA Property Manager had identified several properties that should be disposed of for various reasons (purpose served, other properties in stages of marketing, planning or other negotiation/stages of disposition) . He said Staff would continue the conversation to find solutions to extend storage for the homeless . Director Adams thanked Staff for RDA assistance with the very successful "Place for your Stuff" program for the homeless; the "Candy Cane Corner"; and "Fill the Pot" projects . #2 . 901 South Gale Street Tier 1 Developer Selection Report. The Board will receive a written briefing on the proposed disposition plan for the 901 South Gale Street property. View Attachments Written Briefing Only. D. CONSENT There were no items . E. TENTATIVE CLOSED SESSION. The Board will consider a motion to enter into Closed Session, in keeping with Utah Code §52-4-205 for any allowed purpose . Item not held. 17 - 10 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 12 , 2017 The meeting adjourned at 4 : 00 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 December 12, 2017 . clm 17 - 11