03/15/2016 - Minutes (4) MINUTES FROM THE
767th MEETING OF THE
BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, March 15, 2016
451 South State Street, Room 326
Salt Lake City, Utah
1:00 p.m.
1. 1:11:31 PM 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, Director
Andrew Johnston, Director
Charlie Luke, Director
James Rogers, Director
Erin Mendenhall, Director
Also Present:
Jackie Biskupski, Chief Administrative Officer
Justin Belliveau, Interim Executive Director
Others Attending:
Ed Butterfield, Senior Project Manager
Jill Wilkerson-Smith, Project Manager
Kort Utley, Project Manager
Ben Davis, Project Manager
David Arteaga, Project Coordinator
Cara Lindsley, Project Coordinator
Tammy Hunsaker, Project Coordinator
Amanda Holty, Marketing and Communications Coordinator
Katie Lewes,Agency Legal Counsel
Crayola Berger, Accountant II
Jolynn Walz, Office Manager
Kalli Ruiz, Office Facilitator
Terrell Budge, Lo-ci
Soren Simonsen, Station Center Village LLC
George Chapman, Salt Lake City Resident
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Tuesday,March 15,2016
Page 2
Some items were considered in an order different than listed on the agenda, time stamps shown
indicate when items were considered.
2. Briefing by the Staff.
1:14:29 PM Gallivan Retail
Mr. Arteaga said that the improvements to the Gallivan Retail Spaces are underway. He
presented a rendering of what the final project will look like. He added that all the spaces are
now leased.
Director Penfold asked that additional tables and chairs be purchased for outdoor dining.
Director Rogers also requested that recycle bins be purchased to set along the street and up on
the plaza.
1:12:21 PM Paragon Lofts
Mr. Arteaga stated that this project, which involves the conversion of an office and warehouse
building to residential condominiums in the Central Business District, is 75% complete, and that
the first set of units will be available April 2016. A pre-sale event is scheduled to take place
around May 1, 2016. The developer would like to arrange a tour of the site for the RDA Board.
Staff will work with the developer to schedule the tour.
1:21:28 PM Arctic Court Design Competition& Renovation
Ms. Lundmark said that a design competition is underway for RDA-owned property at 524
Arctic Court in the West Capitol Hill project area. She explained that ten proposals were
submitted and each of those would be displayed at the Marmalade Library from March 7th
through the 21st. She stated that the proposals could also be viewed and voted for online.
Winners will be announced at a ceremony on March 31st.
Ms. Lundmark stated that staff held a pre-renovation open house for the RDA-owned property
located 528 Arctic Court on Saturday, March 12. The Utah Heritage Foundation selected Capitol
Hill Construction to perform the renovation of this residence, in partnership with the RDA. The
terms are being finalized and construction should begin by May 2016.
1:22:43 PM Howa Gardens Budget Update
Ms. Lundmark explained that the RDA Board directed staff to identify funds for the entire
startup cost for the garden as an interim use of RDA property at 622, 624, 628, 632, and 636
West 100 South Those funds have been identified and will be incorporated into the upcoming
budget amendment.
1:24:47 PM Project Area Creation
Mr. Utley stated that in order to gather input for the new 9-Line Project Area, the Agency is
partnering with Communities United in order to reach a larger portion of the Latino and Refugee
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Tuesday,March 15,2016
Page 3
communities. Staff is also continuing to meet with the neighborhood and school community
councils and also getting involved in community events such as "Get into the River".
Mr. Utley explained that staff has organized some open houses and the first one for the 9-line
Project Area will be held April 20th at the Glendale Library.
Ms. Lundmark announced that there will be an open house for the State Street Project Area on
March 30th at Horizante Instruction and Training.
3. 1:28:24 PM Approval of the Minutes from the Meeting held February 9, 2016.
Director Rogers made a motion to approve the minutes from the meeting held February 9, 2016.
Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion
unanimously approved. View Minutes
4. Report of the Chief Administrative Officer.
There was no report of the Chief Administrative Officer.
5. 1:28:53 PM Public Comments.
Mr. George Chapman expressed his concerned for the homeless population throughout the City.
He felt more needs to be done to get homeless individuals off the City sidewalks and suggested
that the RDA use one of its vacant buildings to house them.
Mr. Chapman also expressed his concern of the Agency encouraging UTA from focusing on its
daily services and going into the construction business.
6. Redevelopment Business Action Items.
A. 1:30:45 PM Cicero Group
1. Loan Request from Fielding Group,LLC do Cicero Group
Consideration and adoption of a resolution of the Board of Directors of the Redevelopment
Agency of Salt Lake City approving a$2,010,000 loan to Fielding Group, LLC c/o Cicero
Group. View Attachment
Mr. Butterfield indicated that the Cicero Group is applying for a$2,010,000 Loan for tenant
improvements at the 35 North Rio Grande Street. The total acquisition cost for the building is
approximately $10 million, and Cicero Group will be locating its corporate headquarters there.
The Agency's loan will fund the transformation of a vacant retail store space in the building into
updated office space that will also include façade improvements to activate the ground floor of
the building facing 500 West and the added security that this provides.
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Tuesday,March 15,2016
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The Applicant plans to occupy approximately 30,000 square feet and move into the building
towards the end of this summer. The remaining space will be leased to existing tenants with the
long-term plan of the Applicant to eventually use all of the office space as the company expands.
Director Penfold asked if the RDA has been approached to provide financing for future tenant
improvements for other properties within the Gateway area. Interim Executive Director
Belliveau stated that the new owner of the Gateway Mall, Vestar Group, is seeking financial
support for its plans to update the remainder of the Gateway project. Director Penfold expressed
a strong desire to refrain from considering sales tax reimbursement, and encouraged staff to
investigate other options with Vestar, such as the RDA's loan program.
Director Rogers requested a synopsis of the RDA's loan funds and projected payoff dates. Mr.
Belliveau said staff provide an update on the status of RDA loan funds at the next meeting, and
that this information could also be included for the Board's reference in considering future loan
requests.
1:42:50 PM Director Penfold made a motion to approve the resolution(Resolution R-6-2016) of
the Board of Directors of the Redevelopment Agency of Salt Lake City approving a $2,010,000
loan to Fielding Group, LLC c/o Cicero Group. Director Rogers seconded the motion. Upon roll
call, Chairperson Adams declared the motion unanimously approved.
2. 1:46:22 PM Consideration and adoption of a resolution of the Board of
Directors approving a tax increment reimbursement agreement with
Fielding Group, LLC do Cicero Group.
The Board of Directors will consider providing a tax increment reimbursement to Cicero Group
in the approximate amount of$100,000, to be administered in conjunction with the loan that the
RDA will consider providing this applicant. View Attachment
1:46:27 PM Direct Penfold made a motion to adopt of a resolution(Resolution R-7-2016)
approving a tax increment reimbursement agreement with Fielding Group, LLC c/o Cicero
Group. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared
the motion unanimously approved.
B. 1:47:16 PM Station Center
1. Consideration and Approval of Design Development Plans for the
Station Center Infrastructure Improvements.
The Board will consider approval of the design development plans for infrastructure
improvements in the Station Center neighborhood. View Attachment
Ms. Lindsley invited Terrell Budge from Lo-ci to provide a presentation on the Design
Development Plans for the Station Center Infrastructure Improvements to the RDA Board of
Directors.
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Tuesday,March 15,2016
Page 5
Mr. Budge explained that an owners association will be created to handle the ongoing
maintenance and upkeep.
Director Mendenhall said she is concerned with the homeless population sleeping on the benches
and requested that additional steps be taken in the design of the benches to deter people from
sleeping on them.
Director Mendenhall stated that due to future housing that would be in the area, the design
should include materials in planters and green space for dogs to relieve themselves.
Director Penfold stated that he would like to see significant place-making at the intersection of
Woodbine Court and Market Street because future streetcar will be bringing people into the area
from that location.
Director Penfold stated that, due the festival street and plaza and summer temperatures in Utah,
the area should have trees planted that will provide a lot of shade. He explained that he is
convinced that Honey Locusts trees will provide enough shade and would like other trees
considered.
Director Luke made a motion to approve the Station Center design development plans. Director
Penfold seconded the motion. Upon roll call, Chairperson Adams declared the motion
unanimously approved.
2. 2:10:57 PM Consideration and Approval to Amend the Station Center
Design Standards & Guidelines
The RDA's consultant Lo-ci will present a requested change to the Station Center Design
Standards and Guidelines for the Board's consideration. View Attachment
Ms. Wilkerson-Smith stated that staff wishes to propose an amendment to the Station Center
Design Guidelines to allow developers to build stand-alone parking structures in lieu of podium-
parked structures with amenity decks. Terrall Budge presented an overview of the proposed
change to the Board with illustrations.
Director Penfold felt that the amended language should expressly require the developer install an
innovative and attractive parking structure wrap in areas where the parking structure is publicly
viewed. He indicated the proposed language stating that"Parking structures...be substantially
screened" does not hold the developer accountable to build something more than a blank
concrete wall.
Director Johnston asked Director Penfold if he prefers that the innovative parking structure wall
treatment only be viewable by residential users or by the general public. Director Penfold
responded that the amended language should require all parking structure walls viewable by the
general public be wrapped in an innovative fashion.
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Tuesday,March 15,2016
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2:12:17 PM Chairperson Adams suggested the Board direct staff to return with revised language
to the Design Guidelines for the Board's consideration at the April meeting.
3. 2:21:46 PM Consideration and Adoption of a Resolution of the Board of Directors
of the Redevelopment Agency of Salt Lake City authorizing the RDA to execute an
Amendment to the existing Exclusive Negotiation Agreement with Boyer Cowboy
Station, LC, for the sale of RDA-owned property located between 200 South and 300
South, and 500 West and 600 West.
The RDA Board will consider adopting a resolution extending an Exclusive Negotiation
Agreement with Boyer Cowboy Station L.C. to May 12, 2016. View Attachment
Ms. Wilkerson-Smith stated that Boyer Cowboy Station, LC is requesting that the negotiation
period under its Exclusive Negotiation Agreement with the RDA be extended to May 12, 2016 to
allow additional time to amend the Station Center Design Guidelines & Standards.
Director Penfold made a motion to adopt the resolution (Resolution R-8-2016) approving the
amendment to the Exclusive Negotiation Agreement with Boyer Cowboy Station, LC to May 12,
2016. Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the
motion unanimously approved.
4. 2:23:32 PM Consideration and Adoption of a Resolution of the Board of
Directors of the Redevelopment Agency of Salt Lake City approving
the Basic Concept Drawings for the Renovation of the Serta Mattress
Building ("Parcel 2")
The RDA Board will consider adopting a resolution approving the basic concept drawings for
Parcel 2 of the Station Center Project. View Attachment
Soren Simonsen from Station Center Village, LLC gave a presentation of the basic concept
drawings for the proposed renovation of the Serta Mattress building.
2:32:04 PM Director Penfold made a motion to adopt the resolution (Resolution R-9-2016),
approving the Basic Concept Drawings for the renovation of the Serta Mattress Building.
Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion
unanimously approved.
5. 2:34:52 PM Consideration and Adoption of a Resolution Approving the Terms for
an Option to Purchase Agreement, Development Agreement, Schedule
Development, and Other Agreements with Station Center Village, LLC for the
Development of RDA Owned Property at 535 West 300 South
The RDA Board will consider adopting a resolution approving the terms of an Option to
Purchase Agreement, Development Agreement, Schedule of Development, and other agreements,
for the sale of Parcel 2 of the Station Center Project. View Attachment
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Tuesday,March 15,2016
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Ms. Wilkerson-Smith presented the term sheet for the sale of Parcel 2 of the Station Center
Project to Station Center Village, LLC. She explained that the Developer proposes to fully
restore the building and lease it to one or more commercial tenants. Ms. Wilkerson-Smith
highlighted items within the term sheet.
2:37:09 PM Director Mendenhall made a motion to adopt the resolution(Resolution R-10-2016)
approving the terms for an Option to Purchase Agreement, Development Agreement, Schedule
of Development, and Other Agreements with Station Center Village, LLC for the property at 535
West 300 South. Director Penfold seconded the motion. Upon roll call, Chairperson Adams
declared the motion unanimously approved.
C. 2:37:09 PM Public Market Site Selection
Consideration of approval for Parcel 5 of the Station Center project as the final site of the year-
round public market. View Attachment
Mr. Butterfield stated that RDA staff and the Downtown Alliance are proposing a final site for
the year-round public market following a mutual investigation of several sites. The final
proposed site is Parcel 5 of the Station Center project. Staff is requesting approval by the Board
to move forward with additional studies that will determine the market size, management and
financing structure, and to prepare a memorandum of understanding that will guide the
partnership between the RDA and Downtown Alliance on this project.
Mr. Butterfield provided a presentation on the final site selection.
Vice-Chairperson Kitchen stated he is concerned with demolishing historic structures and
requested that staff explore further whether the red brick building could be incorporated into the
development.
Director Rogers said he still felt that the public market is best suited to be located at the State
Fairgrounds and that the Board should spend as much time and focus on the North Temple
project area and it does in other areas. Director Andrews agreed and asked staff to provide him
with information on previous studies and history as to how this site was selected over other sites.
Mr. Butterfield stated that staff will work with the Downtown Alliance to assess the market
demand and conduct a fit-plan study for the market on Parcel 5.
2:48:49 PM Director Penfold made a motion approving the Station Center Parcel 5 for a year-
round public market. Vice-chairperson Kitchen seconded the motion. Upon roll call, Chairperson
Adams declared the motion unanimously approved.
D. Preliminary Review of RDA Housing Guidelines and Standards
Staff will present an overview of housing policy recommendations, with focus on property
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Tuesday,March 15,2016
Page 8
disposition and budget allocations, to inform a discussion on the RDA's Draft Housing
Guidelines and Standards. View Attachment
This items was postponed to the April 12, 2016 Board Meeting.
E. 2:54:40 PM Consideration and Approval of Modifications to Redevelopment
Agency Loan Program.
The Board will consider the approval of changes to the loan program concerning criteria to
incentivize projects that advance the RDA's goals and objectives. View Attachment
2:54:40 PM Director Penfold made a motion to approve the modifications to the RDA Loan
Program. Director Johnston seconded the motion. Upon roll call, Chairperson Adams declared
the motion unanimously approved. Vice Chairperson Kitchen was not present for the vote.
F. 2:49:24 PM Consideration and Adoption of a Resolution Approving an Extension
Option to the Building Renovation Loan to MC Felt, LLC to Fund Renovations to
the Felt Building at 341 South Main Street in the Central Business District Project
Area.
Staff is seeking approval of an extension option for the Building Renovation Loan to MC Felt,
LLC. View Attachment
Mr. Davis stated that the applicant requested an option to extend the five-year term of the
Building Renovation Loan to ten years, with an interest rate increase from 3%to 5% in years 6-
10 pursuant to RDA policy in the event that the loan is unable to be refinanced under reasonable
methods and terms at the end of five years. He added that this request is being dictated by the
primary lender on this project.
Director Mendenhall requested that staff include an evaluation of how a proposed loan would
impact RDA loan funds for the Board to take into consideration in evaluating future loan
requests.
Vice-Chairperson Kitchen made a motion to approve the extension option(Resolution R-11-
2016). Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared
the motion unanimously approved.
7. 2:55:10 PM Closed Meeting.
A. Consider Adopting A Motion To Enter Into A Closed Meeting In Keeping With
Utah Code To Discuss Pending Litigation and/or The Acquisition/Disposition Of
Real Property and/or Attorney-Client Matters That Are Privileged Pursuant To
Utah Code Ann. § 78b-1-137(2).
Director Penfold made a motion to enter into a closed meeting to discuss matters of pending
litigation and/or the acquisition/disposition of real property and/or attorney-client matters and
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Tuesday,March 15,2016
Page 9
that the Board meeting would stand adjourned at the conclusion of the closed meeting. Director
Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously
approved.
The closed meeting of the Board of Directors of the Redevelopment Agency of Salt Lake City
was held at the City and County Building, 451 South State Street, in Room 326 at 2:55 PM on
Tuesday, March 15, 2016.
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,
Director; Andrew Johnston, Director; James Rogers, Director; Charlie Luke, Director.
The following members of the staff of the Redevelopment Agency of Salt Lake City were
present: Justin Belliveau, Interim Executive Director; Jolynn Walz, Office Manager; Kalli Ruiz,
Office Facilitator.
Others present: Margaret Plane, Legal Counsel; Katie Lewis, Legal Counsel; Rusty Vetter ,
Legal Counsel; Cindy Gust-Jenson, City Council Office; David Litvack, Deputy Chief of Staff;
Patrick Leary, Chief of Staff; and Jackie Biskupski, Chief Administrative Officer.
The Board discussed the acquisition/disposition of real property and attorney client matters that
are privileged pursuant to Utah Code.
There being no further business, Chairperson Adams called for a motion to exit the closed
meeting. Director Mendenhall made a motion to exit the closed meeting and Director Penfold
seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously
approved and the closed meeting. The meeting was adjourned at 3:47 PM.
8. Redevelopment Business Updates.
A. 3:49:36 PM RDA Strategic Plans
Staff will present the 2015-2018 strategic plans for the RDA's project areas and request that the
Board consider a motion to approve them. View Attachment
Mr. Butterfield presented a brief overview of the Strategic Plans for each of the RDA Project
Areas. He stated that the Strategic Plans connect the RDA's goals and objectives with budget
priorities throughout the Implementation Schedule. Mr. Butterfield added that Staff would return
in April with an update on the Strategic Plan for each Project Area.
Mr. Butterfield said that North Temple Project Area will be included in the detailed update at the
April Board Meeting and that Staff recognizes the need for a large project to continue along that
corridor. He added that Staff will have the ability to look into different project options for the area
through a funding request.
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Tuesday,March 15,2016
Page 10
Vice-Chairperson Kitchen made a motion to approve the RDA Strategic Plans for Depot District,
West Capitol Hill,North Temple and Sugar House for 2016-2017. Director Mendenhall
seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously
approved.
Mr. Utley will return with a briefing on the remaining Project Area Strategic Plans at the April 12,
2016 Board Meeting.
B. Eccles Theater Update.
Staff will provide an update to the Board on Eccles Theater progress and be available to answer
questions at the Board meeting. View Attachment
This items was moved to the April 12, 2016 Board Meeting.
9. Redevelopment Business Written Briefings.
None.
10. Consent.
None.
11. Adjournment.
There being no further business, the meeting was adjourned.
Lisa R. Adams, Chairperson