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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 RDA Board Meeting Minutes 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 RDA Board Meeting Minutes 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. RDA Board Meeting Minutes Tuesday,March 15,2016 Page 4 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. RDA Board Meeting Minutes 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. RDA Board Meeting Minutes Tuesday,March 15,2016 Page 6 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 RDA Board Meeting Minutes Tuesday,March 15,2016 Page 7 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 RDA Board Meeting Minutes 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 RDA Board Meeting Minutes 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. RDA Board Meeting Minutes 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