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06/13/2017 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, June 13, 2017 at 1 : 09 p.m. 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; Jacqueline Biskupski, Redevelopment Agency Executive Director; Margaret Plane, City Attorney; Patrick Leary, Mayor' s Chief of Staff; David Litvack, Mayor' s Deputy Chief of Staff; Lara Fritts, Economic Development Director; Benjamin Luedtke, Council Office Policy Analyst; Ed Butterfield, Senior Project Manager; Crayola Berger, Accountant II; Kort Utley, Senior Project Manager; Jill Wilkerson-Smith, Project Manager; Benjamin Davis, Project Manager; Katie Lewis, Senior City Attorney; John Vuyk, Budget Director; Makayla Hardy, Deputy City Recorder; and Cindi Mansell, City Recorder. Director Adams presided at and conducted the meeting. 1:09:55 PM The meeting was called to order at 1 : 09 p.m. A. COMMENTS #1. 1:10:00 PM General Comments to the Board. The Redevelopment Agency (RDA) Board of Directors will receive public comments regarding Redevelopment Agency business. George Chapman said the Board had the ability to effect significant change in the Rio Grande area. He said there were properties available to provide a semi-controlled area to get campers off the sidewalk. He further requested providing campgrounds, access to water, and 24-hour storage for belongings . Jesse Hulse discussed proposed Central 9th Street improvements . He said the neighborhood was excited about the project and expressed continued support and appreciation. B. REDEVELOPMENT AGENCY BUSINESS #1 . 1:13:03 PM Approval of Minutes Director Penfold moved and Director Luke seconded to approve the joint minutes of the Redevelopment Agency Board meeting held Tuesday May 23, 2017, which motion carried, all directors voted aye. View Minutes #2 . 1:13:46 PM Mayor' s Recommended Annual RDA Budget for Fiscal Year 2017-2018 . The City Finance Department, Department of Economic 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 Development, RDA Staff, and Council Staff will discuss with the Board, the Mayor's recommended budget for Fiscal Year (FY) 2017-18. View Attachments Jennifer Bruno, Benjamin Luedtke, Ed Butterfield, and Kort Utley briefed the Board with attachments . Mr. Luedtke addressed new projects since the May 30, 2017 Board Meeting. He reviewed the Mural Pilot Project in the Granary District and said each mural was estimated to cost $15, 000 for this rejuvenation concept . Discussion followed regarding project specifics, number of murals, costs, and potential funding sources . Director Kitchen explained tax increment generated in the Granary District was minimal and he suggested opportunities to generate income or piggy-back on some of the people in the community already doing great things (who were looking to create more of an arts district) . Director Penfold inquired whether there were art funding categories in any other district or whether it was confined only to the Downtown Core . Ms . Bruno explained the Downtown Core did not have it anymore as previous cost centers were consolidated and reset last year. Discussion followed regarding whether intent for the murals was temporary or a more permanent project. Director Kitchen said he imagined these as temporary in attempt to create and drive energy to the neighborhoods . Discussion followed regarding funding and projects in the area. Director Mendenhall suggested consideration of mural installations on buildings which were part of the Adaptive Reuse Loan Fund Program (i .e. , making a double investment) . Director Kitchen discussed the 4th West project and said he wanted confirmation it was a priority for future bonding consideration. He said he wanted to see $150, 000 allocated for the mural project (up to 10 murals) . He said three already existed in the Granary District so adding 10 seemed like a good concentration. He said other cities had a concentration of murals and the price could attract local as well as big name artists . The suggestion was offered for a higher mural amount for buildings which were stable versus a temporary installation. Director Kitchen said he was open to $75, 000 for five murals on a trial basis if consideration was given to additional funding the following year (if the program was deemed successful) . Mr. Utley said he liked the idea of murals; however, the focus for tax increment in the Granary District was for the Adaptive Reuse Grant Program and 400 West reconstruction. He said although more thought could be given to potentially using the mural project in combination with Adaptive Reuse, the preference and recommendation would be to focus on the Adaptive Reuse Program and 400 West. Inquiry was raised as to the concept of creating murals on a moveable canvas . Director Penfold said an artist was commissioned to 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 design a graphic that was printed on vinyl and put on the Eccles Theatre garage doors . He said it was designed so that it could be reprinted if the graphic ever needed to be replaced and he was intrigued by the idea of portability and designs that were moveable to different locations . Director Rogers said there were also framed screens that could be mounted to buildings, with different vinyl designs inside that could be traded or changed out. The suggestion was offered to consider owning the electronic image of the art to be able to reproduce saved images over time . Director Kitchen said he looked forward to seeing what Staff could come up with if the project was funded. A unanimous Straw Poll was conducted to allow Staff as much flexibility as possible for the Mural Pilot Project and for funding consideration of $150, 000 (funding could be tied to the Adaptive Reuse Grant Program/placed in micro-grants to artists that had private property for mural placement) ; and funding would be taken from the funds available for the 400 West reconstruction project. Mr. Luedtke pointed out a correction to the Staff Report relative to the State Fairpark Public Market Feasibility Study. He said it listed an approximate cost of $50, 000 (estimated placeholder) . He said costs were actually closer to $175, 000, which was what the Board approved for the Feasibility Study at the Inter-model Hub. He said it might be worth discussing with the Administration if there could be savings because one study had already been done or if it could be less expensive for other reasons . Lastly, he said there were four potential funding sources listed under this item. Director Rogers discussed the benefits of this study. He said it seemed like a great fit for a Catalytic Development Project and many more partners could be involved. He said he felt all options needed to be on the table and open to any sort of funding. Director Penfold suggested scheduling an update to review the status of all public market studies and ensure the appropriate research had been done/received before moving to an implementation study. He said he was not suggesting to "not" move forward with the feasibility study, but suggesting analysis on comparisons, locations, and costs at different locations . He said he wanted more access to the information already accumulated around the market location and feasibility. Director Adams said further discussion on the feasibility study was scheduled for July 25, 2017 . Director Penfold said Boston had the challenge of funding the deficit of the operation of their market and he did not want to be overly-optimistic in the projections . He said he wanted fact-based information when making decisions going forward. He said the RDA might 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 not have the ability to fund a deficit if there was one and inquired as to a proposed model for funding a deficit. Director Kitchen inquired about Parcel 5 in Station Center and said he was under the impression it would be a future public market . Mr. Butterfield explained the Board determined Parcel 5 was part of approving the feasibility study location. He said Staff was trying to provide direction and ensure the Mayor and Board were jointly committed. He said the Downtown Alliance might want to join the July meeting to provide more background information regarding various sites and why the final site was selected. Director Kitchen said he wanted the State to be on board with this project. He explained preliminary conversations were held with the Department of Heritage and Arts about potentially incorporating the State-owned property into the broader vision of Station Center. A unanimous Straw Poll was conducted to fund the State Fairpark Public Market Feasibility Study with $100, 000 from the North Temple Project Area (Catalytic Development Project Fund) and the remainder from the Program Income Fund. Mr. Luedtke continued to review changes to the Mayor' s Recommended Budget, including RDA Capital Improvements Program and two new projects (Volunteers of America Youth Homeless Resource Center/400 West Infrastructure Reimbursement and Neighborhoods of Opportunity Affordable Housing Initiative) . Director Johnston requested the Board consider the Quiet Zone Crossing concept in Poplar Grove ($2 . 6 million one-time cost plus ongoing maintenance) . He said he hoped some of the $21 million in RDA housing funds would be used to help stabilize the neighborhood for the crossing. Mr. Luedtke said the $2 . 6 million included a one-time lump sum of long- term maintenance and he would double check to see if that long-term was in perpetuity or not. Director Johnson expressed concern that in 20 years, this project still had not been done. Director Mendenhall clarified that $21 million was not yet committed to any area of the City but she would not support its use before anything with housing had been done with those funds . Director Kitchen suggested using proceeds from sold RDA properties or returning for discussion with more insight from Staff on potential funding sources . Mr. Butterfield said two properties were recently sold, but entailed less than $200, 000 in unreserved/unappropriated accounts until the Board established a Property Disposition Proceeds policy. Mr. Luedtke said Quiet Zones were included in the list of potentially bond-eligible projects when bonding scenarios came before 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 the Board to consider later this year. Ms . Bruno said there were components of the projects that were bond eligible and more work with Bond Counsel would have to be done. Director Penfold said he was interested in exploring the Quiet Zones more thoroughly, but if there were options related to bonding it was worth exploration. Director Kitchen inquired if there was a possible legal issue with programming for the one-time lump sum maintenance. Mr. Luedtke explained the one-time lump sum for maintenance was the result of policies from Union Pacific and Western Garfield Rail Road. He said the previous Quiet Zones did not require it, it was an additional cost which added to the cost increase for these three Quiet Zones . He said he was unsure of whether the long-term maintenance legal concern would fall under the programming prohibition given the changes of State law and said Staff would verify it with Legal . Director Johnston said he was open to other funding sources as it moved forward, but wanted to keep it on the Board' s radar. Ms . Bruno said the motion sheets (including Straw Polls (from today) would be prepared for consideration when adopting the budget during the formal meeting. #3. 2:04:10 PM Tax Increment Reimbursement Policy. The Board will receive a follow-up discussion and consider adoption of the Tax Increment Reimbursement Policy. View Attachments Jill Wilkerson-Smith briefed the Board with attachments . She highlighted the proposed policy revisions related to Finance Committee Review and Sustainable Building requirements . Director Kitchen moved and Director Johnston seconded to approve Resolution R-5-17 adopting an RDA Tax Increment Reimbursement Program Policy, which motion carried, all directors voted aye . #4 . 2:06:45 PM Amendment to Tax Increment (TI) Reimbursement between the RDA & Alta Gateway Owner. The Board will discuss an amendment to the Tax Increment Reimbursement Agreement between the RDA and Alta Gateway Owner, LLC for a housing development located at 108-136 South 500 West in the Depot District Project Area . View Attachments Jill Wilkerson-Smith and Katie Lewis briefed the Board with attachments . Ms . Wilkerson-Smith explained the developer was asking for a modification in the agreement to change the completion date from June 30, 2017 to December 31, 2017 due to a change in contractors . Inquiry was raised as to whether this was a realistic time for completion. Ms . Wilkerson-Smith said 186 of the units would receive their 17 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 temporary Certificate of Occupancy by the end of June or beginning of July. She said the developer anticipated the rest would be complete by late fall . Director Adams inquired if in the future (under Separation of Powers) , this type of issue would not come before the Board. Ms . Lewis said all tax increment reimbursement agreements must be approved by the Board under Utah Code 17C. Director Penfold moved and Director Kitchen seconded to approve Resolution R-6-17 authorizing Execution of an Amendment to a Participation and Tax Increment Reimbursement Agreement between the RDA and Alta Gateway Owner, LLC, which motion carried, all directors voted aye . #5. 2:09:39 PM Board Appointment: Redevelopment Advisory Committee (RAC) . The Board will interview and consider the proposed appointment of Mark Isaac to the Redevelopment Advisory Committee (RAC) to be appointed for a term extending through May 16, 2021 . View Attachments Director Luke moved and Director Penfold seconded to appoint Mark Isaac to the Redevelopment Advisory Committee (RAC) for a term extending through May 16, 2021, which motion carried, all directors voted aye . #6. Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Director Adams noted the July RDA meeting would be held July 25, 2017 (formerly scheduled for July 11, 2017) . C. WRITTEN BRIEFING #1. RDA Semi-Annual Report. Receive a written briefing of all Tier 1 and Tier 2 properties owned by the RDA, as per the Land Disposition Policy. View Attachments Written Briefing Only. This portion of the meeting recessed at 2 : 20 p .m. The meeting reconvened in Room 315, Council Chambers, at 7 : 11 p.m. to conduct additional business . In Attendance: Directors Lisa Adams, Derek Kitchen, James Rogers, Erin Mendenhall, Stan Penfold, Charlie Luke, and Andrew Johnston. 17 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; David Litvack, Mayor' s Deputy Chief of Staff; Margaret Plane, City Attorney; Cindi Mansell, City Recorder, and Makayla Hardy, Deputy City Recorder; were present. 7:11:00 PM Director Adams presided at and Director Mendenhall conducted the meeting. POTENTIAL ACTION ITEM #1 . 7:11:00 PM Approving a resolution adopting the final budget for the Redevelopment Agency of Salt Lake City, Utah for Fiscal Year 2017- 2018 . Director Adams moved and Director Kitchen seconded to approve Resolution R-4-2017 , adopting the FY 2018 RDA Budget reflected in the attached Key Changes spreadsheet with the clarifications and contingencies as shown on the motion sheet as follows : Changes to the Mayor' s Recommended Budget - for a complete listing of changes to the Mayor' s Recommended Budget, see the attached "Key Changes" sheet. The Board is adding the below CIP projects to the General Fund CIP discussion later this summer. Two new RDA projects are added to the Mayor' s Recommendation below. 1 . RDA CIP - $5, 356, 575 in CIP to be held in unappropriated holding accounts, to be included RDA capital projects in the larger CIP discussion later this summer, as follows : a. $3, 588, 808 from Central Business District b. $423, 421 from West Capitol Hill c. $435, 376 from Depot District d. $35, 033 from North Temple e. $602, 535 from Program Income Fund f. $271, 402 from Citywide Housing 2 . New Project: VOA 400 West Infrastructure Reimbursement - Add $135, 000 revenue from FY 2017 unappropriated funds in the Granary District to the FY 2018 RDA Granary District budget AND $135, 000 expenditure to reimburse the Volunteers of America Youth Homeless Resource Center for improvements to the 400 West public right-of- way. 3 . New Project: Neighborhoods of Opportunity Affordable Housing Initiative - (Note: This is the accounting step to further the concept that was first proposed and approved in concept by the Board in 2016) . Add $4 . 5 million revenue from FY 2017 unappropriated funds as shown on the attached key changes spreadsheet and $4 . 5 million expenditure to Citywide Housing Fund to be held in an unappropriated holding account. Funding Sources are: a. $3, 432, 008 from Citywide Housing Fund 17 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13 , 2017 b. $517, 992 from Program Income Fund c. $550, 000 from Sugar House Project Area 4 . New Project: Temporary and Permanent Mural Pilot Project - Add $150, 000 revenue from FY 2017 unappropriated funds in the Granary District for the 400 West reconstruction project to the FY 2018 Granary District budget, and $150, 000 expenditure for the mural pilot project. Furthermore, ask that the Administration with Board Member Kitchen return to the Board with a recommendation for how the pilot project should be coordinated with the adaptive reuse grant program, and that a lesser portion of the total be allocated to provide micro grants to artists with available exterior building space. 5 . New Project: State Fairpark Public Market Feasibility Study - Add $75, 000 revenue from FY 2017 unappropriated funds in Program Income Fund AND $75, 000 expenditure for the Fairpark public market feasibility study. Additional funding from shifting $100, 000 from the North Temple catalytic development project to this project for a total of $175, 000 . Contingencies 1 . Professional Services - $250, 000 from Program Income Fund for professional services contingent upon a quarterly report to the Board on actual expenditures and uses . 2 . 500 West Preliminary Design Study - $86, 000 from Depot District for a 500 West preliminary design study contingent upon the scope being adjusted to include consideration of recommendations and plans recently announced by Salt Lake County and the Collective Impact Steering Committee relating to homeless services in the area. 3 . Citywide Housing Funds - $271, 402 total from Depot District, Granary District, and North Temple for the Citywide Housing Fund contingent upon the RDA tracking which project areas and funds contribute to RDA housing funds and which project areas benefit from spending housing funds . 4 . Re-appropriate 900 South Utility Undergrounding - Reallocated the $2, 290, 000 from Program Income Fund for West Temple Gateway Utility Undergrounding contingent upon: a. Removing the contingency to "explore funding costs for a western extension of utility undergrounding beyond the current scope" . b. Adding contingency that RDA staff explore design alternatives to utility undergrounding with Rocky Mountain Power and report back to the Board on options and associated costs . Options include moving poles to the back of properties, extending poles over the street, using different types of poles and other options . 5 . Re-appropriate 900 South Streetscape Improvements - Re-appropriate the $3, 660, 998 ($1, 813, 038 from West Temple Gateway and $1, 847, 960 from Program Income Fund) with prior conditions contingent upon written confirmation from the Mayor that future General Fund budget 17 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 13, 2017 proposals will recognize and accommodate maintenance costs of the enhanced streetscape without a general tax increase or a decrease in other service levels provided by the Public Services Department . a. Note : Council stall will work with the Finance Department and Attorney' s Office to clarify logistics of the contingent appropriation . Director Adams moved and Director Luke seconded to amend and clarify the previous motion to adopt the FY 2018 RDA Budget reflected in the attached Key Changes spreadsheet with the clarifications and contingencies as shown on the motion sheet and to remove Item #6 - the Utah Theater Due Diligence - $100 ,000 from the Central Business District contingent upon the Administration providing the contract that has been awarded. It was noted the Board may wish to have further discussion about development intentions with the Utah Theater, and may wish to ask for briefings from the City' s consultant when their report is complete. Staff note: Even if the contract is terminated, the agreement states that the consultant/developer will be paid these funds, although staff was recently informed that the standard "subject to appropriation" clause is included in the contract. The Board may wish to ask the Administration what the impact would be of not appropriating these funds . Director Mendenhall called for the question, which motion carried, all directors voted aye . The Redevelopment Agency meeting adjourned at 7 : 13 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 June 13, 2017 . clm 17 - 9