12/05/2017 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, DECEMBER 5 , 2017
The Board of Directors of the Redevelopment Agency of Salt Lake City,
Utah, met on Tuesday, December 5, 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; Mike Reberg, Community and Neighborhoods Director;
Lara Fritts, Economic Development Director; Melissa Jensen, Housing and
Neighborhood Development Director; Benjamin Luedtke, Council Policy
Analyst; Crayola Berger, Accountant II; Katie Lewis, Senior City
Attorney; Mary Beth Thompson, Finance Director; and Cindi Mansell, City
Recorder.
Director Adams presided at and conducted the meeting.
The meeting was called to order at 2 : 15 p.m.
A. COMMENTS
#1. 2:15:18 PM General Comments to the Board. The Redevelopment Agency
(RDA) Board of Directors will receive public comments regarding
Redevelopment Agency business.
George Chapman said he had requested storage space for the homeless
for seven years . He said the Weigand Resource Center had 21 cubbies open
(with a two-week limit) so those without storage options were limited
when seeking employment . He said the Rio Grande Operation would not
succeed unless storage was provided for those that wanted to work. He
said it was time to enact the Neighborhood Beat Cops to advertise the
success of the Rio Grande Operation during the holiday season.
Nigel Swaby Fairpark resident, discussed the housing plan. His
comments included: objection for overpayment of hotels for the housing
plan, sending the wrong message to property owners and causing inflated
property pricing, the RDA being the most capable entity to handle funding
for affordable housing, and alternative housing options to address the
crisis and increase density (such as tiny homes/repurposing shipping or
other large containers) . He referenced the Accessory Dwelling Unit (ADU)
proposal and said creating boundaries and limits for some (not citywide)
would establish a horrible precedent.
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#2 . 2 :20:08 PM Public Hearing Continuance on RDA Affordable Housing
Funding Strategy - Received October 26, 2017 . The Board will continue to
accept public comment about a proposal received by the Administration on
October 26, 2017 relating to a strategy to spend RDA funds previously
set aside for affordable housing. View Attachments
Director Penfold moved and Director Mendenhall seconded to close
the public hearing and defer action, which motion carried, all directors
voted aye .
#3 . 2 :20 :59 PM Public Hearing Continuance on RDA Budget Amendment No.
2 for (FY) Fiscal Year 2017-2018 . The Board will continue to accept
public comments regarding a proposal to amend the final budget of the
Redevelopment Agency for Fiscal Year 2017-2018. View Attachments
Director Mendenhall moved and Director Johnston seconded to close
the public hearing and defer action, which motion carried, all directors
voted aye .
#4 . 2 :21:55 PM Public Hearing on RDA Budget Amendment No. 3 for (FY)
Fiscal Year 2017-2018 related to Housing Funding. The Board will accept
public comment on a resolution to amend the final budget of the
Redevelopment Agency for Fiscal Year 2017-2018. View Attachments
Director Penfold moved and Director Mendenhall seconded to close
the public hearing and defer action, which motion carried, all directors
voted aye .
B. REDEVELOPMENT AGENCY BUSINESS (RDA)
#1 . 2 :22 :22 PM Approval of Minutes
Director Rogers moved and Director Luke seconded to approve the
minutes of the Redevelopment Agency Board meeting held November 14 , 2017 ,
which motion carried, all directors voted aye . View Minutes
#2 . 2 :22 :49 PM RDA Budget Amendment No. 3 for (FY) Fiscal Year 2017-
2018 and Draft RDA Housing Funding Strategy. The Board will discuss the
proposal for RDA Budget Amendment No. 3 for Fiscal Year 2017-2018, which
would transfer $15. 6 million in RDA Housing Funds to the City's
Department of Housing and Neighborhood Development (HAND) to administer.
As a part of the discussion, the Board will also consider discussing the
previous proposal for spending the Housing Funds, titled the draft "RDA
Housing Funding Strategy". View Attachments
Cindy Gust-Jenson, Danny Walz, Melissa Jensen, Ben Luedtke and
Jennifer Bruno briefed the Board with attachments and a
spreadsheet/matrix of options for allocating RDA Affordable Housing
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Funds. Mr. Luedtke highlighted the options/tactics as proposed by the
RDA Chair and Vice Chair, ideas raised by Board Members, ideas raised by
Staff based on Board Member feedback, and the RDA and Housing and
Neighborhood Development (HAND) proposals .
Mr. Luedtke discussed the RDA Chair and Vice Chair proposed item #1
as being a new tool; the $8 million Notice Funding Availability
competitive process to be administered by the RDA. He said any
project/developer/community partner could apply including HAND and the
Housing Authority ($2 . 5 million for areas of high opportunity and
remaining $5 . 5 million eligible anywhere in the City) . He said item #2
in the amount of $3 . 2 million for Capitol Motel redevelopment was an
updated cost estimate from the Housing Authority. He said item #3 was
current year funding and item #7 would be future .
Ms . Bruno clarified items #2 thru #5 were specific development
components of the previously transmitted RDA housing funding strategies .
Ms . Gust-Jenson said an assumption included in the spreadsheet yet not
articulated (based on Board direction) was to enable and support
public/private partnerships .
Director Mendenhall discussed the Capitol Motel redevelopment and
cost decrease, and whether it was for the same number of parcels on the
same land. Council Staff said they felt it was the same but could verify.
Director Mendenhall inquired about the Sugarmont redevelopment and the
need to incentivize the project by $2 million in this area of super high
opportunity. Ms . Bruno said this was a new concept in that Staff
separated funding into two categories : one ready for adoption and the
other set aside funding not realized or appropriated but with clear
intent. She said this project fell into the category to set aside for
more information needed later. Mr. Walz said details would return to the
Board and may include opportunity for the S-line extension. Further
discussion followed regarding the Sugarmont timeline and the potential
to consider those funds elsewhere at this time .
A 4-2 Straw Poll was conducted in favor of moving $2 million from
the Sugarmont Redevelopment (item #4) and adding it to item #1 $8
million, for a total of $10 million towards the Notice of Funding
Availability concept, Directors Mendenhall, Adams, Johnston, and Luke
voted aye; Directors Penfold and Adams voted nay. Director Kitchen was
absent for the vote.
Director Adams said although she would love to see something happen
in Sugarhouse, she felt there was adequate flexibility to move funding
if necessary. Director Penfold expressed concern for impacts to
affordability, service, and transit . Mr. Walz explained housing funds
would go for housing but land proceeds could fund the S-line expansion.
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He said it would be worth having that conversation around that project;
otherwise, it could be a missed opportunity for providing additional
critical services .
Discussion followed regarding the Exchange/Barnes Bank
redevelopment. Ms . Jensen said the project was on City-owned land and
alternative funding was anticipated. She said Staff was not waiting on
tax credits and was working through the purchase and sale agreement.
Inquiry was raised as to why the Capitol Motel estimate was 400
Area Medium Income versus 60 or 70 . Mr. Walz said the project was
identified by the Blue Ribbon Commission and originally included in the
RDA Draft Housing Funding Strategy. He said the original intention was
400, but actual details would return to the Board for consideration.
Director Johnston expressed concern about fluctuations across the City
with different affordability built in and no adherence to consistency.
Ms . Bruno said this item was a placeholder on the motion sheet to provide
opportunity for the Board to put expectations or contingencies on the
project prior to appropriating funds .
Inquiry was raised about Item #6, $1 million - Renovation Pilot
Program administered by HAND. Ms . Jensen said this came directly from
Growing SLC, still under Board consideration for adoption. She said when
thinking about preservation and acquisition, Staff saw key
opportunities . She discussed properties that were currently affordable
but might be coming out of the program with no formal subsidy or deed
restriction. She said Staff might be able to entice developers to work
with HAND to assist in renovation to create habitable and livable
facilities and provide for long-term affordability. Director Mendenhall
inquired if the $1 million would be enough and whether the Board would
like to consider additional funding, with Ms . Jensen stating
approximately $15, 000 per unit would yield about 66 units .
Director Penfold said this might be an opportunity to expand the
program and suggested Staff explore site specific Community Development
Area (CDA) programming now allowed. He said there might be a programming
option opportunity to work with developers to fund enhancements and
affordability. He said this might be an interesting concept worth
exploring and suggested the language addition to the motion asking RDA
Staff to consider this as a new method for expending funds .
Discussion followed regarding policy requirements for affordable
housing and ensuring continuity. Mr. Walz said priority could be built
into selection and criteria in terms of ranking proposals . Concern was
expressed in the difficulty to provide continuity of housing, with Mr.
Walz stating Staff could require proof or auditing be tied to any
financial assistance .
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Ms . Gust-Jenson requested a break to allow Staff to work on the
Motion Sheet for adoption. She said HAND already had the capacity to do
monitoring and auditing and all projects today would return to the Board
with key items for funding allocation. She said the Administration seemed
willing to have ongoing conversations in case something was overlooked.
Discussion followed regarding a potential Straw Poll around the
idea of requiring continuity of housing strategic plans for proposed
developments that existed where affordable housing might renovate. Ms .
Bruno said this might fit under the section regarding goals and tracking
to outline compliance . Mr. Walz said part of the notice for funding
applications could include an outline of initial threshold for
eligibility, goals and objections, and selection criteria for specific
projects . He said Staff could build in adequate requirements for
submission and ultimate approval .
Director Mendenhall suggested integration with Police and Fire to
have access to living within the City. Ms . Bruno said Staff could check
with Legal to determine options . Director Luke said that was something
which had not been done in Salt Lake City, but certainly other
communities have similar programs and there must be a way to work through
surrounding legal issues . He said there was talk about looking out for
first responders and other City employees, seeing them fall within the
AMI, and perhaps adding this type of housing incentive. Ms . Gust-Jenson
said Staff would add that to the list of follow-up items .
Director Penfold inquired as to the current Housing Mitigation Fund
designed for commercial development that eliminated and replaced housing
and whether affordability criteria was applied. Ms . Jensen said there
was disagreement as to original intent which had not retained and
produced affordable housing. She said as part of the Growing SLC Housing
Plan, discussion entailed fee waivers and Staff working on a new
ordinance to come before the Council . Director Penfold discussed the
original intent to ensure preservation of the number of units (or adding
to units) when demolishing for new projects, and said he did not think
there was an affordability component tied in. He said that could help
ensure the concept of protecting affordability as new development came
on line .
3:38:17 PM Director Kitchen moved and Director Luke seconded to
approve Resolution R-14-17 (Budget Amendment No. 3) amending the FY 2017-
18 RDA Budget for the following items : See Motion Sheet
1 . Set aside $10 million for a "Notice of Funding Availability",
intended to be a competitive and transparent public process to be
administered by the RDA, for which any developer/community group
may apply with a project that meets the affordable housing goals
straw polled by the Council/Board in November. Funding will be
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appropriated when the RDA Staff returns to the Board with a draft
program or application process/notice (note : of these funds, $4 . 5
million would be dedicated towards areas of high opportunity) .
2 . Appropriate $3 million to the Housing Trust Fund, with the following
purposes :
a. $2 million toward the general purposes of the Housing Trust Fund,
to be administered by HAND; and
b. $1 million towards a new Renovation Pilot Program, aimed at
providing renovation funds to improve existing affordable housing
units in the City in exchange for a guaranteed period of continued
affordability.
3 . Set aside the following funds, in anticipation of loan requests in
the coming months for developments already in the pipeline
(appropriation of these funds will be considered at that time) :
b. $1 . 4 million towards gap financing for The Exchange/Barnes Bank
Redevelopment project.
4 . Hold Budget Amendment #3 Open to December 12 to further evaluate
conditions for appropriation of $3 . 2 million to facilitate
redevelopment of the Capitol Motel . The Board asked that the
Administration return for the December 12 meeting with recommended
conditions .
5 . Annual RDA Housing Allocation Policy - that the Board request RDA
Staff come back to the Board with a draft policy governing an annual
allocation to the Housing Trust Fund as a percentage of all tax
increment received (would memorialize past practice) and ask the
Administration to include in future budget years, a percentage
allocation from RDA tax increment to the Housing Trust Fund, based
on historical appropriation to the Housing Trust Fund.
6 . Inclusionary Zoning Policy - that the Board request the
Administration evaluate proposals for an incentive structure that
could be tied to an inclusionary zoning policy in the City based on
their initial analysis of the inclusionary zoning strategy, which
will be discussed by the Council in January.
7 . Tracking Outcomes - that the Board ask the Administration to track
the following created with these funds (whether they are
administered by HAND or RDA) , as well as funds appropriated for
affordable housing in the previous 6 months, and report back
annually:
a. Total number of units created;
b. Any units displaced, and the affordability of those units
displaced;
c. Units created at the varying levels of AMI (100% and below) ;
d. Any permanent supportive services provided as a part of those
funds; and
e . Longevity of affordability guaranteed (if applicable) .
8 . Single Property Community Reinvestment Area (CRA) - that the Board
request RDA staff coordinate with HAND and come back to the Board
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with a proposal to use single-property CRAs as an option to preserve
and improve existing affordable rentals, potentially provide rental
assistance as well as future funding options for new affordable
housing developments . Said motion carried, all directors voted aye .
#3. 3:43:49 PM RDA Budget Amendment No. 2 for (FY) Fiscal Year 2017-
2018 . The Board will discuss the Administration's proposal to amend the
final budget of the Redevelopment Agency for Fiscal Year 2017-2018. View
Attachments
Jennifer Bruno briefed the Board with attachments . She said the
Administration proposed $588, 808 from the Central Business District for
a new Downtown Placemaking Incentive Program. She said of that amount
$200, 000 would be appropriated to support the Gallivan Center; the
remaining would remain unallocated and available for other uses .
Director Mendenhall moved and Director Penfold seconded to approve
Resolution R-13-2017 (Budget Amendment No. 2) as proposed, with the
addition of $200,000 from the Central Business District to offset
operating expenses of the Gallivan Center, which motion carried, all
directors voted aye .
#4 . 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. Report and Announcements from the Staff. The Board may review
Board information and announcements. The Board may give feedback on any
item related to RDA business, including but not limited to scheduling
items.
Item not held.
#6. Report of the Chair and Vice-Chair. The Chair may review the
minutes of a previous Board meeting.
Item not held.
C. WRITTEN BRIEFINGS . The following briefings are informational in
nature and require no action of the Board. Additional information can be
provided to the Board upon request:
There were no written briefings .
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D. CONSENT
#1 . 3:45:25 PM Set Date for Northwest Quadrant Project Area Creation
Plan. The Board will set the date of Tuesday, January 9, 2018 at 2:00
p.m. to accept public comment on the proposed project area plan for the
Northwest Quadrant Project Area. View Attachments
Director Penfold moved and Director Mendenhall seconded to adopt
the Consent Agenda, which motion carried, all directors voted aye .
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.
The meeting adjourned at 3 : 45 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 5, 2017 .
clm
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