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HomeMy WebLinkAbout02/13/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, February 13, 2018 in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall, Chris Wharton, Amy Fowler, Charlie Luke, and Andrew Johnston. Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Jacqueline Biskupski, Mayor/Executive Director; Patrick Leary, Mayor' s Chief of Staff; 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 Public Policy Analyst; Katie Lewis, Senior City Attorney; Mary Beth Thompson, Finance Director; John Vuyk, Budget Director; Mike Reberg, Community and Neighborhoods Director; and Cindi Mansell, City Recorder. Director Kitchen presided at and conducted the meeting. 2 :07 :45 PM The meeting was called to order at 2 : 07 p.m. A. GENERAL COMMENTS TO THE BOARD 2:0 8:11 PM Anthon Stauffer, Romney Group, said in October 2017, they acquired the Gilmore property (89 acres/fronting John Cannon Road) . He said Romney Group then sold one of those parcels to RT Assets and one to Boyer Company; those were the two pieces not included in the Community Reinvestment Area (CRA) and only the piece retained by Romney was included. He said all parcels would be facing the same issues, and he felt it was only fair those two parcels also be included. He discussed Master Plan upgrades for the sewer system (and other upgrades) and voiced his support in changing the survey area boundaries . Dave Ward, Boyer Company Partner, said they had closed over two weeks ago on 32 acres . He expressed support for inclusion of this property within the new CRA area. He explained they were actively considering building a large speculative industrial building on this parcel and CRA inclusion would facilitate that decision and efforts to move forward at this time (they wanted to begin construction in May or June of 2018) . He thanked Staff for all of their professional efforts, including the CRA and in evaluating development in the area. Director Johnston inquired about changing the timeline if the parcels in question were not included in the CRA. Mr. Ward explained if there were not access or potential for additional funds for reimbursement of some infrastructure costs, they might have to take a step back to 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 consider costs of development with a speculative building. He discussed the intent of the purchase and said they wanted to buy the property but were evaluating next steps on a day-by-day basis by considering various factors (area market/what other buildings may be coming on line prior) . He said due to the sheer size of the facility, they would consider holding back development due to not wanting that amount of space sitting vacant on the market. Todd Jasper, RT Assets, said they had purchased 26 . 9 acres from the Romney Group . He said they discovered the parcel was outside the CRA, and wanted to request it be included. He said his group was in a similar circumstance in that they were looking to improve the land and build a facility but were in limbo until this could be resolved. B. PUBLIC HEARINGS Item not held. C. REDEVELOPMENT AGENCY BUSINESS (RDA) #1 . 2:15:22 PM Approval of Minutes . Director Rogers moved and Director Johnston seconded to approve the minutes of the Redevelopment Agency Board meetings held Tuesday, December 12, 2017; January 9, 2018; and January 16, 2018, which motion carried, all directors voted aye. View Minutes #2 . 2:15:42 PM Northwest Quadrant Community Reinvestment Area (CRA) Boundary Adjustment. The Board will discuss and consider approving a resolution initiating an amendment to the survey area boundaries. This would incorporate properties east of the current CRA boundaries. If approved, an amended CRA Plan would be presented at a future meeting to the Board and Council for a public comment period, public hearings, and potential adoption. The CRA Plan sets forth project area boundaries from which the RDA utilizes property tax increment funds for redevelopment activities. View Attachments Danny Walz and Tammy Hunsaker briefed the Board with attachments . Ms . Hunsaker said the CRA was adopted by the RDA and City Council on January 9, 2018 . She said those groups heard similar public comment at that time as they had heard today from property owners to the east who wanted to be incorporated into the CRA. She said adoption of the resolution today did not adopt the amendment, but would authorize Staff to move forward with updating the plan and posting an amended plan by the end of the week to meet timeline requirements for a 30-day public comment period to conduct the plan adoption hearing for both the RDA and City Council on March 20, 2018 . She said the Board could possibly provide input regarding options for parcels to include in the amended boundaries . 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 She said the resolution would incorporate the study area for all parcels, but Staff had broken down three different areas included. She said RDA Staff recommended including areas V1, V2, and V3 . She referenced the FedEx parcels that could be expanded in the future and said Staff also recommended inclusion of those parcels . She said none of this would interfere with current Airport expansion plans . Discussion followed regarding difficulty in splitting parcels, potential amendment timeline, amended boundaries, potential of other properties to come forward, and whether or not Staff had reached out to FedEx. Mr. Walz explained that being included in the survey area was not necessarily negative (previously misconstrued or identified with blight) and would provide additional opportunities . Ms . Hunsaker said she would not recommend inclusion east of the expansion boundary due to it being associated with the Airport expansion area. Inquiry was raised as to potential for property owners to the south in the International Center to be included. Mr. Walz said that area was already a project area under development. Director Mendenhall expressed concern as to inclusion of the FedEx parcels because they were part of existing development in that area. She said she wanted to go on record against inclusion because of existing International Center development parcels . She said F-1 was the only parcel in the entire CRA that had development and expressed concern as to inquiries from additional developed parcels wanting to be included. The Board expressed concern that Staff ensure FedEx be made aware of the pending survey area amendments. Further discussion followed regarding the F-1 and F-2 parcels identified on the map, and whether or not that would be considered substantive change to the CRA. Ms . Hunsaker said she had included in her Staff memo that the F-1 parcel had existing development and the remainder was completely undeveloped. Mr. Walz said half of FedEx was developed and the other half not, and those separate parcels would be a consideration. He said Staff had given thought to straight lines, clean property lines, where the project ended, and natural deviation to prevent these issue from coming up again in the future (difficult to predict) . Director Mendenhall moved and Director Fowler seconded to approve Resolution R-6-2018 initiating the amendment of the Northwest Quadrant Community Reinvestment Area Plan by adopting amended Survey Area Boundaries, with inclusion of parcels F-1 and F-2, which motion carried, all directors voted aye . #3. 2:28:49 PM Real Property Disposition Proceeds Policy. The Board will discuss and consider approving a resolution approving a real property disposition proceeds policy which sets guiding principles for how to spend proceeds subject to the budget appropriation process. View Attachments 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 Danny Walz, Tammy Hunsaker, Jennifer Bruno, and Ben Luedtke briefed the Board with attachments . Ms . Hunsaker said Staff had brought a Real Property Disposition Proceeds Policy for discussion to the Board in October, 2017 . She said this was a follow-up wherein Staff was asked to consider other options with draft guidelines to establish a holding account for each project area fund and for the Citywide Housing Fund. She said proceeds from the sale of any RDA-owned property would be deposited to the applicable holding account based on the acquisition funding source . She provided a visual illustration of options or examples for a project area holding account, including consideration of acquisition funding source, development type, disposition account, and budget. She said Staff was open to any questions, feedback, or future direction. Mr. Luedtke reviewed policy considerations for Real Property Disposition Proceeds options . He said not all RDA dollars were the same and discussed pros and cons associated with options such as centralizing the "Surplus Land" Account; dedicating proceeds to the Citywide Housing Fund; or placing proceeds into the Program Income Fund (PIF) . He said any type of new account might need policies and process regarding expenditures . Ms . Bruno added that from a General Fund perspective, there tended to be emotional allegiance to reusing property funds on property; however, there was nothing that legally bind the City for using surplus land money on only land. She said it was more of an organizational momentum or historical practice . Discussion followed regarding the various options, along with pros and cons that included concepts like flexibility, one centralized account, ease of Administration, or how to budget proceeds under the three priorities . Ms . Hunsaker said these would be utilized in order of priority. She explained that project area funds generated in an area should be prioritized for that area; however, allocating funds other ways could be considered if other priorities were realized. She provided the example of allocating to a loan fund. Director Fowler said she appreciated attention to addressing inequities by budgeting proceeds but had concerns with how this proposal would address multiple accounts . Mr. Walz said there would be a reduced number of accounts . He clarified the statute was clear that once funds were spent on housing, they would always and forever be dedicated to housing. He said they needed to exercise caution in this regard because it could limit flexibility in the future if there was desire to utilize the funds for something else . Further discussion followed regarding the need to set up a holding account for each project area. Director Kitchen expressed concern as to 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 administrative time and effort to create multiple holding accounts . Ms . Bruno said there had been improvement as the Finance Department continued to work with RDA Staff to quickly create those accounts . She said it would be less of a concern and a more automated function. Director Rogers said wording indicated that proceeds might not be reinvested in an area if the area was taken from another area. He inquired about tracking to prevent the process from getting washed and broken down into different areas . Ms . Hunsaker said the Program Income Fund would keep track by acquisition source (which would be where the project disposition funds were deposited) . She said that process would not involve a significant amount of additional work for Staff. Director Rogers inquired where Staff wanted to see these funds go. Mr. Walz said the priority would always be in the project area from which the funds came in effort to target redevelopment and continue to build tax base . He said eventually, a project area would end and this policy would provide ability to consider options . Director Rogers said he felt it advantageous to have fluidity with the funds . He referenced the North Temple struggling Project Area and said he wanted to see a catalytic project start in the area and this would be a method to make change and facilitate that type of development. Ms . Bruno said if the Board wanted to make it priority to fund a catalytic project in the North Temple project area, they could look at other funding sources to determine how to best spend those dollars . Director Johnston said, from an accounting standpoint, he preferred a centralized approach because it would be easy to see where the money was, easy to track long-term, yet provide flexibility. Director Fowler said it still came down to the RDA for final determination, and such a guiding principle would just make it easier to create a budget for Board consideration. Discussion followed regarding the benefits of individually designated project area accounts (Citywide Housing or Program Income Fund) versus a centralized holding account. Director Kitchen suggested a shared surplus land account that created policy for property disposition. Director Fowler moved and Director Johnston seconded to approve Resolution R-7-2018 approving a Real Property Disposition Proceeds Policy as presented, which motion carried, all directors voted aye. #4 . 2:51:58 PM Project Area Creation Priorities . The Board will receive a briefing about potential new project areas, expiring project areas and possible amendments, expansions or extensions to existing project areas. View Attachments Danny Walz and Jennifer Bruno briefed the Board with attachments . 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 Mr. Walz said to ensure Staff resources were deployed in a manner consistent with Agency objectives, and to facilitate discussion of the potential new project areas with taxing entity partners, Staff wanted to have discussion with the Board regarding the prioritization of the new and extended project areas currently contemplated by the RDA. Mr. Walz briefly reviewed the three new project areas, including the Northwest Quadrant, State Street, and 9-Line. He said Staff had discussed possible extensions to the Depot District (Gateway redevelopment) and Granary District Project areas, and also contemplated the benefits of creating a project area aimed at improving the primary entrance into and exit from the City via 500 South and 600 South. He said there might also be merit in extending the North Temple Viaduct Project Area, as well as seeking an amendment to its Project Area plan to allow for greater flexibility in how tax increment generated there could be spent. Director Rogers inquired if there had been discussions with the Chamber or Downtown Alliance regarding consideration of Special Assessment Areas for the Grand Boulevard area. Mr. Walz said Staff had not reached out to stakeholders, but had identified the potential and advantage of that area and funding mechanism. Director Luke inquired if the RDA had worked with Streets and Public Services in relation to the new Streets Study. Mr. Walz said they had not looked at that level of detail in terms of dollar amount of streets conditions . Director Luke said he recommended that as RDA Staff considered each project area, they work with Streets to go through that list to determine and prioritize exactly what infrastructure was needed. He said perhaps RDA funds could assist the City with some of those overall infrastructure needs . A unanimous Straw Poll was conducted in support of directing the RDA Staff to consider the Streets Study, cross compare with the individual RDA existing and proposed project area needs, and return with a visual and prioritized listing of those for Board consideration. Director Mendenhall expressed concern with billboards in the Grand Boulevard area. She said it was difficult to make investments to improve the area without removing the billboards and that was part of what had kept previous Administrations from further consideration in this regard. She asked Staff for their priority recommendations . Mr. Walz said all were viable, but the three new areas would be priority, followed by Granary and Depot extensions . Inquiry was made as to whether or not Staff had spoken to existing taxing partners regarding potential extension of Granary or Depot areas . 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 Discussion followed regarding the goal of an extension, with Mr. Walz suggesting a shorter-term project area or increasing percentage of increment (maximize term and percentage) to appeal to partners . Director Kitchen inquired as to making the entire City a project area. Mr. Walz said the Board could consider that type of structure and benefits . Ms . Bruno said a concern would be the City and RDA would then be in competition with each other. Director Kitchen suggested one new project area that included elements of the Depot, Granary, and Grand Boulevard areas . Discussion followed regarding RDA Staffing, with Mr. Walz stating they had five open positions (16 total) . Director Johnston said his impression was that all of these could not be done effectively and he would be hesitant to endorse increasing project areas until there had been discussion as to areas of focus and staffing. Mr. Walz said certainly, his Staff had a great deal on their plates at the moment but hoped to be at full capacity in the near future . The Board requested Staff return with information relative to priorities (comparison/attention to special property, staffing/timing, and return on investment potential) for Depot, Granary, and North Temple Viaduct areas as well as cost comparisons with the Streets Study for infrastructure needs in all project areas. #5. 3:14:07 PM State Street Project Area Boundary Adjustment. The Board will discuss and consider adoption of a resolution authorizing the expansion of the Community Reinvestment Area boundary for the proposed State Street Project Area . View Attachments Danny Walz and Susan Lundmark briefed the Board with attachments . Ms . Lundmark said during the December meeting, the Board requested a discussion of whether to change the boundaries of the proposed State Street CRA to include the area in the vicinity of the current 900 South freeway off-ramp. She provided information regarding three potential scenarios for preserving the Board' s ability to use tax increment funds from the State Street CRA to make future infrastructure changes to the Interstate 15 (I-15) Freeway 900 South off-ramp area should the opportunity arise . Ms . Lundmark said as a first step, the Board could hire a consultant even if those parcels were not included in a project area. She said if the Board determined Options 2 or 3 (because they change the project area) , it would only extend the project area adoption by a month to be able to revise the maps associated with the project area plan and public benefit analysis . She said there were no impending projects that would be impacted as a result of the delay. Director Luke expressed concern with delaying the project area 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 further. Director Mendenhall discussed the removal of the off-ramp. She said this type of ramp through a neighborhood was not complimentary yet the Board should include language to continue that conversation toward its potential (and not necessarily related to the project area success) . Clarification was offered regarding the need to keep the conversation moving even if it were not completed/removed prior to expiration of the project area. Discussion followed regarding removal of the tax-exempt properties such as the Salt Lake County Complex. Ms . Bruno offered clarification that just because the City did not collect from those properties did not mean they could not spend on them. She said the Board could elect to spend money adjacent to project areas if it would benefit the project area. The Board discussed additional exempt properties in this area, including Housing Authority, Whittier Elementary, and Salt Lake Community College properties . The Board debated such a large project area and the ability to be able to effectively manage it. Further discussion followed regarding the project area boundaries and tax exempt parcels, with concern being expressed regarding the former Henry' s Dry Cleaning parcel not being included and being left unaddressed. Discussion followed regarding the need for environmental work to remediate area/block contamination. Director Kitchen said he would make the case for the larger boundary to be able to include the cleanup for this area. He offered clarification that the parcel was currently included in the West Temple Gateway project area, but it was set to expire this year. The Board requested Staff return with clarification on the residential block (2nd to 3rd East/8th to 9th South) , with Ms . Lundmark stating she was not sure this particular block was necessary for the project area but it was originally included to target older office buildings (that were actually further to the north) . Director Mendenhall requested inclusion of homes and businesses west of 2nd East adjacent to the school, while removing the tax exempt properties (Salt Lake Community College and Whittier Elementary) . Director Mendenhall moved and Director Fowler seconded to approve Resolution R-8-2018 amending the Survey Area Resolution for the Proposed State Street Project Area (Hybrid Option 3 - to include approximately three blocks of land near the 900 South off-ramp with the removal of tax exempt properties per Exhibit "A" map) , which motion carried, all directors voted aye . #6. 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 18 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 feedback or policy input. Item not held. #7 . 3:49:00 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. Mr. Walz reported on RDA staffing. He said they currently had five vacant (out of 16 total positions) which had been posted and were within the hiring process . Ms . Hunsaker said relative to the Board' s earlier actions, she wanted to request they take action to set a public hearing for both the Northwest Quadrant Survey Area boundary amendments and the Stadler Rail single property CRA plan. Director Fowler moved and Director Rogers seconded to schedule two individual public hearings for March 20, 2018 at 2 : 00 p.m. ; (1) to consider survey boundary area amendments to the Northwest Quadrant CRA; and (2) to consider the Stadler Rail single property CRA plan, which motion carried, all directors voted aye . #8 . Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Item not held. D. WRITTEN BRIEFINGS #1. Loan Portfolio Status as of February 2018 . The Board will receive a semi-annual written report about the current status of the RDA's loan portfolio, which identifies: View Attachment • New loans closed between July 1, 2017 and December 31, 2017; • Outstanding principal for each loan fund; • Any delinquencies; and • The remaining amount in the existing portfolio. #2 . Professional Services Quarterly Report (October - December 2017) . The Board will receive a written briefing on the status of expenditures from the "Professional Services" category of the RDA Budget, pursuant to the contingent appropriation made in the Fiscal Year 2017- 18 budget when these funds were approved. View Attachment 18 - 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 13 , 2018 E . CONSENT #1 . 3:54:46 PM Board Reappointment: Redevelopment Advisory Committee (RAC) - Claudia O' Grady. The Board will consider approving the proposed reappointment of Claudia O'Grady to the Redevelopment Advisory Committee for a term extending through February 13, 2022. View Attachment Director Luke moved and Director Mendenhall seconded to approve the reappointment of Claudia O' Grady to the Redevelopment Advisory Committee for a term extending through February 13, 2022, which motion carried, all directors voted aye. F. 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 : 56 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 pursuant to Utah Code §52-4-203 (2) (b) . This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held February 13, 2018 . clm 18 - 10