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01/09/2018 - Work Session - Minutes MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 The City Council met in Work Session on Tuesday, January 9, 2018, in Room 326, Committee Room, City County Building, 451 South State Street. In Attendance: Council Members Erin Mendenhall, Derek Kitchen, Chris Wharton, James Rogers, Charlie Luke, Andrew Johnston, and Amy Fowler. Staff in Attendance : Cindy Gust-Jenson, Executive Council Director; Jennifer Bruno, Executive Council Deputy Director; Jacqueline Biskupski, Mayor; David Litvack, Mayor' s Deputy Chief of Staff; Lynn Pace, Mayor' s Senior Advisor; Sylvia Richards, Council Public Policy Analyst; Nick Tarbet, Council Senior Public Policy Analyst; Melissa Jensen, Housing and Neighborhood Development Director; Randy Hillier, Policy and Budget Analyst; Lily Gray, Housing and Neighborhood Development Deputy Director; Lia Summers, Mayor' s Senior Adviser for Arts and Culture; Danny Walz, Redevelopment Agency Chief Operating Officer; and Scott Crandall, Deputy City Recorder. Guests in Attendance: Chris Zarek, Form Development/Cowboy Partners and Sarah Pearce, County Center for Arts and Operators . Councilmember Mendenhall presided at and conducted the meeting. The meeting was called to order at 4 : 03 p.m. AGENDA ITEMS #1 . 4:04:03PM RECEIVE A BRIEFING A RESOLUTION AUTHORIZING A $1 MILLION LOAN FROM SALT LAKE CITY' S HOUSING TRUST FUND TO LIBERTY UPTOWN ASSOCIATES, LLC. The loan would facilitate the development of a 109-unit mixed-income project located at 325 East 200 South. The development will consist of 46 affordable units. View Attachments Nick Tarbet, Melissa Jensen, Lily Gray, and Chris Zarek briefed the Council with attachments . Comments included gap financing, tax credits, permanent supportive/market rate housing, mixed-income project, open space, ground floor active retail, inclusionary zoning, building rehabilitation, social enterprise component, restore neighborhood fabric, work-force housing, increase downtown residential, area median income (AMI) , and housing incentives . 18 - 1 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 Councilmember Mendenhall reiterated the Council' s desire to support projects in areas of high opportunity which had a higher ratio of affordability. Mr. Zarek provided background information about how various pieces of the project were being cohesively developed to provide a high level of affordable housing along with work-force and market rate housing. He said other components included open space, neighborhood retail/commercial space, parking, historic preservation, social enterprise space, and the Magnolia development (65 units of permanent supportive housing) . Ms . Jensen said the project would provide 111 affordable housing units and 137 market rate units . She said developers were targeting lower incomes than what the City traditional saw in typical tax credit projects . Mr. Tarbet said the proposal was scheduled for potential action on January 16, 2018 . #2 . 4:18:22 PM RECEIVE A BRIEFING REGARDING A RESOLUTION AUTHORIZING A $402,250 LOAN FROM SALT LAKE CITY' S HOUSING TRUST FUND TO FIRST STEP HOUSE. The loan would facilitate the development of a permanent supportive housing development located at 426 South 500 East. The development will consist of 40 one-bedroom units. View Attachments Nick Tarbet, Melissa Jensen, and Lily Gray briefed the Council with attachments . Comments included acquisition financing, 2019 construction start, short-term loan, future nine-percent tax credits, home development funds, no historic restrictions, and repayment terms . Councilmember Mendenhall said the proposal was scheduled for potential action on January 16, 2018 . #3. 4:23:44 PM RECEIVE A BRIEFING REGARDING A PROPOSAL TO PROVIDE BELOW MARKET FINANCING TO VIOLIN COMMONS, LLC, WHICH INTENDS TO PURCHASE THE NORTHWEST PIPELINE BUILDING LOCATED Al 315 EAST 200 SOUTH. The building served as the City's Public Safety Building for many years. The Council will hold a public hearing at a future date and consider adopting a resolution authorizing the below-market seller financing loan terms. The proposed development of the property will include 65 units dedicated to permanent supportive housing, along with other mixed-use buildings with various market-rate and mixed-income apartments. View Attachments 18 - 2 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 Nick Tarbet, Melissa Jensen, Lily Gray, Randy Hillier, and Chris Zarek briefed the Council with attachments . Comments included collaboration, payment structure/interest rate, below market terms, potential risks, affordability goals, assure timely delivery, develop Magnolia as initial phase, project complexity, shared parking structure, permanent supportive housing, leverage funds, gap financing, and nine-percent tax credits . Mr. Zarek provided information regarding the timeline for various phases of the project. He said when the Magnolia project was completed, Shelter the Homeless would be the owners and The Road Home would be the operator. Councilmember Johnston asked about how the plaza would operate between the three buildings . Mr. Zarek said there would be an agreement for maintenance and operating the open space. Further discussion was held on the status of Housing Trust Fund (HTF) activity including future projects . Ms . Gray said from 2000 to the present, approximately 50 loans were made . She said approximately $24 million was spent to fund over 3, 000 affordable housing units . Councilmember Mendenhall asked if historically, the City was loaning more often and where more loans were going to permanent supportive housing projects . Ms . Jensen said although there was increased demand, the City had not seen a lot of permanent supportive housing due to the lack of tax credit support. She said it would be interesting to see as those projects came forward if they would actually utilize the HTF. She said she thought the gap for permanent supportive housing projects was not in building, but in the operations and maintenance (entirely different) . Councilmember Mendenhall said the Administration/Council needed to give further consideration to whether adequate funding was available and if not, how could the revenue stream be increased (consider federal influence on local markets) . She said a public hearing would be scheduled for February 6th with potential action on February 20, 2018 . #4 . 4:43:22 PM RECEIVE A BRIEFING ABOUT THE ARTS FOR ALL PILOT PROGRAM WITH THE GEORGE S . AND DOLORES DORE ECCLES THEATRE. The program would make tickets to performances at the theater available on a discounted basis to income-qualified City and County residents that may not otherwise be able to afford tickets. The program is intended to further the mission and vision of the Eccles Theatre to engage broader audiences and enrich the lives of community 18 - 3 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 members. View Attachments Sylvia Richards, Lia Summers, Sarah Pearce, and Danny Walz briefed the Council with attachments . Comments included utilizing a third-party service provider, drawings/random selection process, eligibility structure, limit of four tickets per person per year, advertising campaign to notify residents about program, needs of underserved populations, and budget issues . Councilmember Kitchen requested information about the one- time Redevelopment Agency (RDA) contribution. Ms . Summers said the budget component would come to the RDA Board in a separate resolution. Councilmember Kitchen asked if it would be in a budget amendment or the 2019 fiscal budget. Mr. Walz said although the funds were already allocated (Block 70 funds) , there was a slight deviation so an amendment was appropriate. Councilmember Kitchen said he understood the Center for the Arts (CFA) planned to evaluate the program at the end of the Broadway season and asked how that would be accomplished. Ms . Pearce said software used to distribute tickets would provide data, so they would be able to look at the number of registrations and how the disbursement worked. She said they would also analyze feedback obtained from surveys and the Feedback Loop Tool . She said they wanted to ensure the program was easy, accessible, and explainable so tickets would get to the right people . She said after a few shows they could come back to Council with a report on how the program was working. She said they hoped to expand to every show in the future, not just Broadway shows . Councilmember Johnston expressed concern about the potential for identification (ID) requirements to hinder the ability for certain populations to attend performances . He said there were a number of undocumented residents in his district and he did not want to make it prohibitive or scary for them to participate. Ms . Pearce said they wanted to ensure this was a comfortable situation but they also had to deal with ticket scalpers . She said it would take some balancing and asked Council Members to provide feedback so they could continue to improve the process . Councilmember Johnston suggested working with local schools to share ideas about encouraging and facilitating participation. Councilmember Mendenhall said she hoped Staff would track ticket distribution on a map to determine where applications were coming from and then target extra outreach/marketing in the areas 18 - 4 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 not being heard from. Ms . Pearce said the software would allow them to track information by zip code easily so they could look at the data after a few shows and make necessary adjustments . Discussion was held about promoting/advertising the program. Ms . Pearce said they planned to work with schools, libraries, City/County Human Resource departments, distribute printed materials, and utilize newspaper and online/website advertising. She said they also wanted to work with both City and County Mayor and Council offices . Councilmember Mendenhall asked Ms . Pearce to provide the Council with a brief write-up that could be shared in Council Members' monthly newsletters . Councilmember Mendenhall said she felt it was important to have a strict policy about validating eligibility of participants (proper Supplemental Nutrition Assistance Program (SNAP) ID, etc. ) . She said on the other hand, she did not want to see tickets go to waste, and asked Ms . Pearce to consider some type of strategy where an extra five or ten people could be contacted/invited to come down to a show and wait for a potential opening in the event of no-shows or people with inadequate ID. #5 . 5:00:30PM RECEIVE A BRIEFING FROM THE ADMINISTRATION ABOUT ISSUES AFFECTING THE CITY THAT MAY ARISE DURING THE UPCOMING 2018 STATE LEGISLATIVE SESSION. View Attachments Lynn Pace, Mayor Biskupski, and David Litvack briefed the Council with attachments . Mr. Pace said it would be helpful to have an agreed-upon list of priorities which the City could share as a unified message to the Legislature . Discussion was held on the following bills/issues : affordable housing, homelessness, Northwest Quadrant (NWQ) , implications of new federal tax code, extraterritorial water jurisdiction, surplus water contracts, reducing current water requirements, canal relocation, Central Wasatch Commission (CWC) , formula for allocation of the 1/ of a 1/ Salt Lake County fund, Transportation Task Force (TTF) funding proposals, State authorization for transportation utility fee, TTF recommendations for corridor area plans (land use) , and TTF recommendations for restructuring Utah Transit Authority (UTA) Board. Comments included tax increment, inclusionary zoning, property tax abatement, protect/provide clean drinking water, public safety risks, dedicated HTF revenue stream, negative impact of government regulation/fees on housing affordability, short-term 18 - 5 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 rentals, Statewide cost assessment to operate homeless resource centers (HRC) , shared definition for affordable housing, credit communities for hosting HRCs, homeless providers, Rio Grande issues, 400 South liquor store closure, air quality, solar, billboards, NWQ economic development (preserve land use/taxing authority) , and Airport issues (liquor licenses) . Mr. Pace said the homelessness bill was a high priority for the upcoming session. Councilmember Wharton requested follow-up information regarding ongoing Rio Grande operations . Mr. Litvack said he would verify information and get back to Council including information about whether there would be funding associated with the Fiscal Year 2019 budget . He said he thought the majority of the funding was discussed during the Special Legislative Session. Councilmember Luke requested the Administration work with the Metropolitan Water District, Jordan Valley Water Conservancy, and others to address proposed water regulations . Councilmember Mendenhall requested follow-up (written or otherwise) regarding a coordinated response to water issues . Councilmember Rogers said additional coordination was needed with other municipalities to work with the League of Cities and Towns to provide a united front at the Legislature. Councilmember Kitchen asked about the CWC. Mayor Biskupski said she asked the Attorney' s Office to review a new bill which prohibited local governments from advocating for any sort of Federal land designation. She said review was needed to determine if the bill would impact any work being done with the CWC. She said the results would be forwarded to the Council . Councilmember Mendenhall asked about adding this to the list . Mr. Pace said he understood no State legislation was needed but Federal legislation might be . He suggested only adding items to the list which the Council specifically wanted to draw attention to such as air quality. Mr. Pace said the tax issues listed in the attachment included everything the Administration was aware of (not necessarily the Administration' s priorities) . He said the Council needed to identify priority items . He said a lot of the tax information would change because no one understood the full impact of the Federal tax changes . He recommended opposing expansion of the Manufacturing Sales and Use Tax Exemption because the fiscal impact would be significant. 18 - 6 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 Councilmember Mendenhall asked which bills from the list given to the Legislative Subcommittee were a priority. Mr. Pace said he thought the main ones were truth-in-taxation newspaper ad changes and global sales tax on internet purchases . Councilmember Mendenhall asked Mr. Pace how he thought the overall list might change for the January 12, 2018 meeting with the Legislature. Mr. Pace said he thought a new category could be added entitled "Air Quality and Renewal Energy" . He asked Council Members to provide feedback on what they wanted to include or not include on tax issues . Councilmember Mendenhall asked for the Mayor' s vision of the upcoming Legislative Breakfast meeting. Mayor Biskupski said after working out further details she wanted to meet with the Council Chair prior to the meeting. She said she saw the meeting as more of a conversation with the Legislature rather than just telling them the City' s priorities (get input from them/allow for dialogue) . #6 . 6:04:33PM REPORT OF THE EXECUTIVE DIRECTOR, INCLUDING A REVIEW OF COUNCIL INFORMATION ITEMS AND ANNOUNCEMENTS. The Council may give feedback or staff direction on any item related to City Council business, including but not limited to scheduling items. See File M 18-5 for announcements . #7 . REPORT OF THE CHAIR AND VICE CHAIR. No discussion was held. #8 . 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 6 : 07 p.m. COUNCIL CHAIR CITY RECORDER 18 - 7 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JANUARY 9, 2018 This document is not intended to serve as a full transcript as other items may have been discussed; 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 City Council Work Session meeting held January 9, 2018 . sc 18 - 8