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HomeMy WebLinkAbout01/09/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, January 9, 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, and Andrew Johnston. Absent: Director Charlie Luke 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; Mike Reberg, Community and Neighborhood Director; and Cindi Mansell, City Recorder. Also in Attendance: Dan Nackerman, President of the Housing Assistance Management Enterprise and Executive Director of the Housing Authority of Salt Lake City. Director Kitchen presided at and conducted the meeting. 2:06:56 PM The meeting was called to order at 2 : 06 p .m. A. 2:07 :12 PM GENERAL COMMENTS TO THE BOARD George Chapman addressed the Board regarding the need for a place to expand storage for the homeless (24 hours) to enable them to work, finding a facility or outdoor area for the homeless to stay so they will not camp out across the City, concern with shopping carts, sidewalks, and Redevelopment Agency (RDA) owned properties needing to be liquidated. He further discussed development and the Salt Lake City (SLC) Complete- Streets Ordinance for pedestrians, bicycles and vehicles; he said SLC did not enforce these nor have a system to do so. B. 2:10:24 PM PUBLIC HEARINGS #1 . Public Hearing for Proposed Community Reinvestment Area Plan for the Northwest Quadrant. The Board will accept public comment about the proposed Community Reinvestment Area Plan for a new Northwest Quadrant project area. George Chapman said he was disappointed the passenger rail line was not included in the Northwest Quadrant Plan. He said this area was a 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 destination that could make rail successful and could be paid for with tax increment funding. He said the RDA needed to push for an extension to 5600 West and this was the best opportunity to do so. He said the Airport Board was already discussing this . Mr. Chapman said there were minimal amounts of hotels for thousands of employees and there was need for additional to supply future new businesses . He asked for more flexibility in the Northwest Quadrant development. David Ward, partner with Boyer Company based in Salt Lake City, said he wanted to follow-up on a letter submitted to the Economic Development Department regarding the Community Reinvestment Area (CRA) boundary. He said in particular, there was one parcel currently under contract which at the time the purchase contract was executed, was understood to be in the Northwest Quadrant Overlay District (view location map) . He said during the December consideration of the CRA plan, the boundary had omitted this very parcel that was under contract . He said the neighboring parcel was included in the project area and he expressed concern with being removed from the CRA. He said the parcel would require significant amounts of infrastructure upgrades . He said under the current scenario, other parcels would receive some tax increment support to help pay for improvements, where this parcel would be omitted and have to fund improvements on their own. Mr. Ward asked the RDA and Staff to review the project area boundaries to see if it were possible to include this parcel . John Birkinshaw, representing Rio Tinto, said they were major landowners in the area. He said the Northwest Quadrant was a community opportunity on the grandest scale that would require a great deal of coordination and collaboration. He said this area would have to reach across municipal boundaries to work together. He said there was need for a stable environment to work with Salt Lake City, Salt Lake County, the School District, the State of Utah, etc. in delivering the message of opportunity. He said Rio Tinto were big advocates of the opportunity and felt it should be a group effort and the cost of development would take a large investment to become the location of choice for business . Lance Bullen, CEO/President of Colmena Group, said they were representing the Northwest Quadrant parcel (Emerson property/approximately 1500 acres) adjacent to Mr. Birkinshaw' s referenced parcel . He said on behalf of the partnership and in reiterating what Mr. Birkinshaw had stated, they were excited for the opportunity to work with the City, RDA, Staff, Attorneys, and Council and be able to voice the magnitude of this project area and the impacts it could have on the State of Utah and City of Salt Lake. He said they were never going to see 2, 000 acres of land come into fruition in SLC again and were excited about the ability to work together on this serious opportunity. He said they cared about the overall environment and felt 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 that embracing rail as a mode of transit might cost money on the front end but the long-term payback would be better for the environment and commerce . He said moving items on truck versus rail would be so much more costly (not to mention detrimental to the environment) . He said this was a partnership that would require the City to have a working relationship with the State of Utah and Colmena Group would like to spend years working together with the City in a positive fashion in this area. Director Mendenhall moved and Director Rogers seconded to close the public hearing, which motion carried, all directors present voted aye . (View Motion Sheet) C. REDEVELOPMENT AGENCY BUSINESS (RDA) #1 . 2:20:57 PM Election of Chair and Vice Chair for Calendar Year 2018 . The Board will nominate and elect members to serve as Chair and Vice Chair of the RDA. (See Ballots) Director Mendenhall nominated Director Kitchen to serve as RDA Chair. Director Kitchen stated he would be willing to serve as Chair. Director Kitchen asked Board Members to mark the ballots provided for Chair. The ballots were tallied with all directors present voting for Derek Kitchen as RDA Board Chair. Director Wharton nominated Director Fowler as RDA Vice-Chair. Director Fowler indicated she would be willing to serve as Vice-Chair. Director Kitchen asked Board Members to mark the ballots provided for Vice-Chair. The ballots were tallied with all directors present voting for Amy Fowler as RDA Board Vice-Chair. #2 . 2:27:55 PM Approval of Minutes . Director Mendenhall moved and Director Rogers seconded to approve the minutes of the Redevelopment Agency Board meeting held Tuesday, December 5, 2017, which motion carried, all directors present voted aye . View Minutes #3 . 2:28:18 PM Northwest Quadrant Project Area - Discussion and Consideration of various Resolutions related to adopting a Northwest Quadrant Community Reinvestment Area Plan and Interlocal Agreement authorizing use of a portion of tax increment to support the implementation. The Board will discuss and consider approval of the Community Reinvestment Area Plan and Interlocal Agreement for the Northwest Quadrant Project Area . This is the first in a series of steps that also includes City Council action to create a new Northwest Quadrant Project Area. The Board may also have initial discussion on proposed development agreements in the area . View Attachments 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 Danny Walz, Tammy Hunsaker, Mike Reberg, Ben Luedtke, and Jennifer Bruno briefed the Board with attachments . Mr. Walz referenced the basic overview, Staff report, steps necessary, and overall importance of the RDA role in developing the Northwest Quadrant . He said this was not a typical timeframe and was a condensed transmittal, ever mindful that the foundation was before the Board as a beginning to the process and Staff would continue to be doing a lot of work. He discussed efforts to get something in place in order to reach out to the Taxing Entity Committee (TEC) partners and get that process underway. He said there would be more information coming in forms of zoning, development agreements, and reimbursement spanning across the RDA and City Council . He said many of these issues would return within RDA as well as City Council capacity as information was collected, and there would be continued approval of those plans and agreements as the information came forward. Mr. Walz addressed the Public Benefits Analysis to justify the use of taxpayer funds for potentially private investment (or infrastructure benefitting private investment) . He discussed some highlights of the analysis . Inquiry was raised as to the public comment by David Ward (Boyer Company) regarding inclusion of that parcel and the adjacent parcel owned by Colmena Group; and whether those properties were both included in the initial survey. Mr. Walz said he believed the confusion was because the properties were not included in the original RDA survey area for the project area survey, but were included in the City' s Master Plan and overlay for the Northwest Quadrant. Ms . Bruno referenced Policy Question #2, CRA budget as proposed requests all taxing entities participate, and said if they do not participate (or participate at a lower level) that budget would be smaller. Mr. Walz said the plan anticipated project involvement; he said final participation would determine the final budget and come through approval of interlocal agreements that could change based on those final negotiations . Director Mendenhall inquired how the RDA would make it clear to developers that everything would be contingent based upon an assumed budget not determined by the City or RDA. Mr. Walz said that concept was typically inherent within a project area, and there was nothing entitled or vested. He said in terms of individual negotiations of development agreements (specifically, the stated amount of increment the Agency could pass on to developers) was only what was produced from the final interlocal agreements and they would not be vested or entitled to anything more than that . He said there was also the state limited obligation tied to increment through the project area and what the Agency received. He said once the Agency had the ability to receive increment, the next logical step would be to reach out to property owners and developers in terms of the development agreement or reimbursement 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 participation agreement as projects came on line . He explained the framework began with the project area, authorizing budget increment, and trickled down to increments . Mr. Walz added that part of the decision to create the project area included considerations of the cost benefit analysis included in the plan. He said that would be further refined as Staff continued to collect information on costs and consider different scenarios for tax increment generation; costs could then be refined and the budget adjusted accordingly. Discussion followed regarding clarification of the source of funds to build the "backbone system" and whether there would be sufficient tax increment to cover both the cost of the backbone as well as branch systems to developable sites . Mr. Walz said in looking at those both together, it was easily recognized that projected tax increment fell way short of anticipated costs of development in the Northwest Quadrant. He said that was one of the reasons to establish available financing tools such as a combination of impact fees, tax increment, and developer agreements . He said he hoped to be able to address that in the future but would prioritize on behalf of the City for the backbone or basic level of infrastructure and see what extent additional assistance could be offered at that time . He said Staff did not have preliminary cost estimates but would share those when they did. Mr. Reberg addressed the policy question on the status of the update on the City' s impact fee plan. He said Mayor Biskupski amended the Major Streets Plan last week to add a series of collector and arterials to the Transit Master Plan for the Northwest Quadrant . He said the road grid and draft plan were in place and the process had been launched; however, that would not go before the Council until March. He said Staff had met at least three different times with internal stakeholders and the City' s Impact Fee Consultant (Fred Philpot) . He discussed the necessary steps to perform the analysis necessary to return to the Board with an amendment to the Transportation Impact Fee Plan. He said that would begin with a Demand Analysis, Request-for-Proposal process, all adding to the Impact Fee Facilities Plan. He said after that, Staff could return with scenarios on what such an impact fee amendment might look like. Discussion followed regarding the use of impact fees, with Ms . Bruno stating a recent statement indicating impact fees were expressly prohibited from being used on rail . She said there might be cause to have the impact fee consultant include that with the assessment, as the City could still consider it but in terms of impact fee as a funding source . Discussion followed regarding the project area boundaries . Ms . Hunsaker said the natural cut off was 5600 West and 700 North (not into the International Area) . She said the approximate project area included 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 7400-7800 acres, with half being within an undevelopable area (and parcels could not be split) . She said the area was already quite large for the infrastructure needed (3, 000 acres of developable land) , and discussed policy consideration south of Interstate 80 (I-80) . Inquiry was raised regarding the different maps for the overlay versus the CRA. Ms . Bruno said the CRA map was different than the overlay map (which was a Planning action/not RDA) . Inquiry was raised as to why the referenced Boyer parcel was carved out in the CRA map . Mr. Walz stated the line had to be drawn somewhere and unfortunately, some parcels were not included. Director Kitchen requested thoughts from the Legal team regarding the CRA process and what could or could not be done. Discussion followed regarding the number of maps, master plan, rezone, CRA, development agreements, etc. Director Mendenhall said it was her understanding the CRA would include developable (not yet developed) properties north of I- 80 and west of the Airport. She said she thought there was limited amount of opportunity in the overlay areas, and expressed concern there were properties left out while others remained in the CRA. Mr. Walz said the Board adopted the CRA in July 2016 to start the process . He said that timing was significant because it drew the boundary to create the CRA boundary area. He said when the process got to the point to create the project area, anything could be done within the area, but it could not be expanded without starting the process over again. He said these properties were not included in that original boundary. He said as it related to the two properties, if it was desired to adjust the project area boundary to include them, the Board would need to start the process over, including a public hearing for Board consideration of amendments . He said amendments could be made after the fact, in that there could be an existing project area after which amendments could be considered to incorporate additional properties . He said that process would be as simple as making the request and taking action. He clarified the Board could not adjust the boundary with the plan and legal description as proposed and before them because the original survey area did not include those parcels . He said if the Board took action on everything this evening, they did not lose options and could still direct Staff to return with additional properties for inclusion. He said Staff could then return with a recommended timeline or what adjustment for the boundary line would entail . He said he would estimate a March return for action if this process were followed but clarified that adoption by the Board at this time would not limit options . Discussion followed regarding the Redevelopment Advisory Committee (RAC) recommendations . Director Kitchen said they recommended a 100 housing allocation; transportation access circulation; workforce 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 housing, or infill housing in transit or adjacent areas; and modes to preserve significant growth. He said those were acknowledged in the Transportation Master Plan but it might be worthwhile to incorporate the language into the CRA plan in moving forward. Director Johnston moved and Director Mendenhall seconded to approve Resolution R-1-2018 adopting the Northwest Quadrant Community Reinvestment Area Plan and Public Benefit Analysis, which motion carried, all directors present voted aye . Director Johnston moved and Director Mendenhall seconded to approve Resolution R-2-2018 authorizing approval of an Interlocal Agreement between Salt Lake City Corporation and the Redevelopment Agency authorizing use of a portion of tax increment to support the implementation of the Northwest Quadrant Community Reinvestment Area Plan, which motion carried, all directors present voted aye. #4 . 3:13:14 PM Consideration of a Resolution approving terms to facilitate redevelopment of the Capitol Motel (located at 1729-1767 South State Street and 120 East Wilson Avenue) . The Board will discuss and consider approval of a proposed loan of $3. 2 million to the Salt Lake City Housing Authority to facilitate the redevelopment of the Capitol Motel (located at 1729-1767 South State Street and 120 East Wilson Avenue) . These funds would come from the allocation set aside by the Board in 2016 for affordable housing. View Attachments Danny Walz, Tammy Hunsaker, and Ben Luedtke briefed the Board with attachments . Ms . Hunsaker clarified that Housing Assistance Management Enterprise, a non-profit entity of the Housing Authority of Salt Lake City, was requesting a Citywide affordable housing loan in an amount up to $3, 200, 000 . She discussed the terms of the agreement and the project concept. Director Rogers addressed the potential commercial signage issue on the northern part of the property which could impede development. He said the City Attorney' s Office was familiar with the issue and offered their assistance in response to concerns which might be associated with property development. Dan Nackerman articulated the relationship between the Non-Profit Housing Assistance Management Enterprise Entity and the Housing Authority of Salt Lake City. Mr. Nackerman discussed the Staffing and Support Services Plans, including consistent area median income (AMI) . Director Mendenhall requested the Board be apprised of all activities along the development process . Inquiry was raised as to whether any of the existing clients using 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 the motel would be transitioned into the new program. Mr. Nackerman said any potential relocations would be handled on a case-by-case basis . He discussed several other sites and hundreds of other units that were permanent supportive housing for Veterans, including Licensed Clinical Support Workers (LCSW) , Masters of Social Work (MSW) , and connections to service providers in the medical field. He said the company had financial, human resource, and other extensive staff assisting with services and homeless property management. Director Johnston inquired about design, unit mix, ability to provide flex units for expansion, and adequate parking. Director Wharton inquired about the historic neon sign on this property. Mr. Nackerman said they thought about modifying the sign from Capitol Motel to Capitol Homes and developing a logo of the Capitol Building that fit the site vision. He said it might be renamed for tax credit purposes . Mr. Walz referenced the supplemental memo included in the Board packet, and said the project application went before the RDA Finance Committee and they recommended approval of the terms . He discussed reasoning to move forward with this loan based on track record and partnership with the Housing Authority. He said the focus on the State Street neighborhood and potential RDA area enabled a favorable structure for rolling the acquisition loan over into a permanent construction loan. He said overall, he felt very comfortable and supportive and Staff also recommended approval . Director Mendenhall moved and Director Johnston seconded to approve Resolution R-3-2018 approving the Term Sheet for a Loan to Housing Assistance Management Enterprise for a Citywide Affordable Housing Project located at 1749 South State Street, 1767 South State Street, and 120 East Wilson Avenue, which motion carried, all directors present voted aye . (View Motion Sheet) #5. 3:40:33 PM 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. (See Announcements/not discussed) Executive Director Biskupski thanked the Board and Staff team for the work being done . She offered congratulations to the 2018 Board Chair and Vice-Chair and said she looked forward to working with them. She extended invitations to meet regularly (or as necessary) , and said her door was always open. #6. 3:42:07 PM Report and Announcements from RDA Staff. The Board 18 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 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. Danny Walz welcomed new Board Members by inviting them to a tour of the Utah Theater or any other RDA-owned property (invitations would be forthcoming) . #7 . 3:43:18 PM 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 . Economic Development Strategy for the Northwest Quadrant Project Area. The Board will receive a written briefing about Jones Lang LaSalle (JLL) Consultant's Economic Development Strategy for the Northwest Quadrant, which consolidates phases I and II of their analysis. View Attachments Written Briefing Only. #2 . 3:44:07 PM Potential Exploratory Trips to inform the Proposed State Street Project Area. The Board will receive a written briefing from RDA Staff outlining options for locations to explore that are similar in scope to the proposed State Street Project Area . View Attachments Director Kitchen noted there were three potential field trips highlighted for Board consideration. He said he would defer to RDA Staff on which was best; however, a number of Board Members would be going to Minneapolis with The Downtown Alliance. He suggested reaching out to The Downtown Alliance for possible breakout sessions or opportunity to conduct exploration with RDA of similar State Streets in Minneapolis . E. CONSENT There were no items . 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 : 45 p .m. 18 - 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JANUARY 9, 2018 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 January 9, 2018 . clm 18 - 10