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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. 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5, 2017 #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 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5, 2017 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. 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5, 2017 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 . 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5, 2017 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 17 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5, 2017 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 17 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5 , 2017 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 . 17 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, DECEMBER 5 , 2017 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 17 - 8