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02/14/2017 - Minutes (2) MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 14 , 2017 Some items may be discussed in an order different than listed on the agenda, time stamps shown indicate when items were discussed. Roll Call. The following members of the Board of Directors of the Redevelopment Agency of Salt Lake City were present: Lisa Adams, Chairperson Derek Kitchen, Vice-Chairperson Stan Penfold Erin Mendenhall Charlie Luke The following members of the Board of Directors of the Redevelopment Agency of Salt Lake City were absent: Andrew Johnston James Rogers Also present: Justin Belliveau, Chief Operating Officer; Jackie Biskupski, Executive Director; Jill Wilkerson-Smith, Project Manager; Edward Butterfield, Senior Project Manager, Tammy Hunsaker, Project Coordinator; Cindy Gust-Jensen, Council Office; Susan Lundmark, Project Coordinator. A. Comments: 1. General Comments to the Board. 2:10:14 PM George Chapman stated that he apologizes for repeating himself, but explained that he was present today to oppose the proposed homeless resource site that is to be located on Simpson Avenue. He said that he felt that the high cost of that location could be better spent elsewhere, and the lawsuits that could be expected for this site are not worth the cost and trouble. He encouraged Board members to use the funds that are allocated for the Simpson Avenue site towards the homeless population, getting the kids off the street and out the homeless shelter downtown. B. Redevelopment Agency Business 1. Approval of Minutes 2:12:33 PM Chairperson Adams reviewed the minutes from the January 17, 2017 meeting reminding Board members and RDA staff of additional information requested in the last meeting by Board members. 2:14:32 PM Vice-Chairperson Kitchen made a motion to approve the minutes from the January 17 meeting. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. 2. Continued Policy Discussion. A. 2:21:23 PM Interim Use Policy of RDA Real Property Chairperson Adams invited Susan Lundmark and Jim Sirrine to the table. Ms. Lundmark explained that in its discussion at the January 2017 Board meeting, the Board requested that staff include additional language in the policy about making RDA properties available to other City departments/divisions for interim use, and consulting other City departments/divisions when considering options for interim use. To address the Board' s requests, staff has added the following to the Interim 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 14 , 2017 Use of RDA Real Property Policy and resolution: • The RDA will contact other Salt Lake City departments and divisions to notify them when RDA-owned properties are available for interim use. • As part of the process for determining interim use(s) , the RDA will discuss the interim use options with surrounding property owners and other City departments/divisions, and will then draft an RDA Interim Use Plan as part of the property acquisition process. 2:24:51 PM Director Penfold made a motion to approve the interim use of RDA real property policy. (Resolution R-1-2017) Vice-Chairperson Kitchen seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. B. 2:25:48 PM Tax Increment Reimbursement Ms. Wilkerson-Smith said that per the Board' s request, staff has returned with a modification to the policy document that guarantees the RDA' s control over assumption rights by new owners during the construction phase and defines the beneficiary of the tax increment reimbursement if the land and improvements are under separate ownership. Staff has also added a new section that allows the RDA to provide a tax increment reimbursement to a single property owner or business through the creation of a community reinvestment area ("CRA") . In regards to the new section allowing the RDA to create a CRA for a single property owner, Director Mendenhall stated she is concerned about construction practices. She was concerned that consistency for beneficiaries of this program might be held to different standards over the course of time. Executive Director Biskupski stated she agreed, and suggested adding language that the program uses a City standard that can evolve and change under the City's guidance. Director Penfold said one way to ensure this would be to use an outside evaluation tool. Ms. Fritts stated staff can explore the Green Building Standard with a point evaluation structure. Director Mendenhall also suggested that the Department of Sustainability could also be included in the evaluation process. Director Penfold noted that the policy allows staff to waive Finance Committee' s review and asked what tools staff will use to measure the project' s success during the application process. Ms. Wilkerson-Smith responded that staff feels these instances would typically occur in simple, straight forward deals that may require expeditious processing. Director Penfold suggested that the RDA has a measurable threshold, such as return on investment, and other financial and performance indicators to adequately appraise projects that do not go through the Finance Committee. Chairperson Adams asked staff to incorporate the Board's comments into the policy and return in March. 3. 2:40:31 PM Status Update on Fiscal Year 2017 RDA Budget Process. Ms. Bruno provided a status report on the 2017/2018 budget process. She explained that a transmittal from the Administration concerning the third Amendment to the 2016/2017 Budget was provided to the Council Office. The Council Office staff has begun its review and has requested some follow up and backup information. Once the review is complete the Amendment will be presented to the Board. Chairperson Adams said that she has suggested to Board members a supplement to 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 14 , 2017 the RDA' s financial audit. Executive Director Biskupski asked Chairperson Adams and Council staff who would be paying for the supplemental audit. Ms. Bruno stated that the Council Office has an auditing line item within its budget and the cost for the supplemental audit could be taken out of this account if the Council Office chooses to. Executive Director Biskupski stated that she was would like to be a participant and help in the way this audit is crafted. 2:48:45 PM Chairperson Adams conducted a straw poll of performing a supplement audit to the RDA' s budget. All Board members present supported the Council Office performing a supplemental audit. Executive Director Biskupski asked how the Board would like RDA staff to proceed with loan request, since the budget has yet to be adopted. Ms. Gust-Jensen said that a public hearing would need to be posted ahead of time and a special meeting could be held to approve any loan request. Council Office could work with RDA staff if something comes up between now and when the budget is finalized. Director Penfold stated he liked that idea and reminded Board members, that in the past loan requests up to $500, 000 did not need to go to the RDA Board for approval. Ms. Gust-Jensen said one option that could be utilized during this time is to use the RDA' s Administrative funds to cover loan requests. The money could be paid back to account once the budget is approved. 3:04:15 PM Chairperson Adams conducted a straw poll to allow RDA staff to proceed with loan requests up to the $500, 000 threshold and meet the RDA Loan Policy criteria, existing RDA Administrative funds can be used. Any funds used will be repaid once the 2016/2017 Budget is approved. Staff will provide a written update once a loan is approved. All Board members were in favor. 4. 3:10:25 PM Project Area Creation Update. Mr. Butterfield, Ms. Hunsaker and Ms. Lundmark provided a presentation on the first set of project area plan components for the State Street and 9 Line Project Areas. Director Penfold asked staff to explore ways within the 9 Line Project Area to take public rights-of-way and lease or convert them to other uses, possibly to include linear parks or commercial. Director Mendenhall asked for better ways to broaden the statement of existing conditions to better contextualize what is truly currently happening within the area and incorporates more qualitative information. Director Mendenhall said that RDA staff does an amazing job with public outreach. She asked that RDA staff now look internally with other City departments to discuss opportunities and the needs within the areas, align resources, and City goals. Director Penfold requested that staff research ways to track changes to the neighborhood opportunity index through a variety of tools and data sources. Vice-Chairperson Kitchen asked to include the proposed homeless resource center at 275 West High Avenue within the State Street Project Area boundaries. Director Mendenhall said she agreed and asked to also extend the boundaries of the project area 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 14 , 2017 to include 1300 South to 1700 South, along 300 West. Director Mendenhall requested that staff work with legal counsel on options to use RDA funds on properties adjacent to RDA project areas, in hopes to not exclude properties that are in need, but fall outside project area boundaries. Mr. Butterfield explained that staff will bring an amended resolution to change the State Street Project Area boundaries at the March meeting for Board approval. Director Mendenhall asked for an update on people using motels within the State Street Project Area as permanent and/or long-term housing. Director Mendenhall requested that the existing conditions analysis for State Street include the human context reason we are creating this project area and to quantify social services data to capture more of the "human reason" for the project area. Director Mendenhall asked that discussions begin now with other City Department and to hold a brainstorming session as part of new project area creation process. 5. 3:51:09 PM Draft Report from Northwest Quadrant Project Area Consultants. Mr. Butterfield and Ms. Hunsaker presented the draft of the Northwest Quadrant Visioning Report by Jones Lang Lasalle (JLL) , which incorporates; 1) Stakeholder Outreach and Visioning, Industrial Market Assessment Overview, Implementation Framework that include the roundtable stakeholder meeting presentation, and market assessment. The finalized report will be completed March 2017. Chairperson Adams stated that funding is needed in order to move forward on Phase II of the Northwest Quadrant study. Chairperson Adams conducted a straw poll to repurpose up to $120, 000 of Administrative funds toward the Northwest Quadrant Project Area creation study. All Board members present supported the repurposing of funds. 6. Report and Announcements from the Staff. None. 7. Report of the Chair and Vice Chair. 2:16:53 PM Chairperson Adams noted that today is Justin Belliveau's last Board meeting and thanked him for all his efforts and leadership over the years with the RDA. Board members presented Chief Administrative Office Belliveau with a gift. Director Adams explained that due to conflicts with Board members schedules the March Board meeting has been moved to March 28, 2017 and the May Board meeting will be held May 16, 2017. 8. Report and Announcements from the Executive Director. Executive Director Biskupski encouraged the Board Chairperson and City Council Chairperson to participant is discussions with Taxing Entities concerning the new project area creation. 9. Amendment No. 3 to the FY 2017 Budget. 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, FEBRUARY 14 , 2017 3:55:25 PM Chairperson Adams said a Public Hearing will be scheduled for the Third Amendment to the 2016-2017 RDA Budget on March 28, 2017 at 2:00 P.M. and a resolution approving the budget will be considered at that time. C. Written Briefings 1. Semi-Annual RDA Owned Property Report. Staff provided a report outlining all RDA owned properties. D. Consent None. E. Closed Session None. F. 3:58:10 PM Adjournment There being no further business the meeting was adjourned. This document along with the digital recording constitute the official minutes of the Redevelopment Agency of Salt Lake City Board of Directors meeting held February 14, 2017. 17 - 5