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03/28/2017 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY, March 28, 2017 Some items may be discussed in an order different than listed on the agenda, time stamps shown indicate when items were discussed. 2:07:43 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 Erin Mendenhall Andrew Johnston James Rogers The following members of the Board of Directors of the Redevelopment Agency of Salt Lake City were absent: Charlie Luke Also present: Lara Fritts, Economic Development Director; David Litvack, Chief of Staff; Edward Butterfield, Interim Chief Operating Officer, Cara Lindsley, Project Manager; Katie Lewis, Salt Lake City Attorney's Office; Jennifer Bruno, Council Office; Cindy Gust-Jensen, Council Office; Elizabeth Reid, George Haybond&Co.; Blake Wade, George Haybond & Co.; Mary Beth Thompson, Finance Department. A. Comments: 1. 2:08:00 PM RDA Budget Amendment No.3 for Fiscal Year 2017 Public Hearing Mr. Chapman suggested that Board members use RDA funds that are appropriated for the Station Center Development towards the closure of the 500 West Park Blocks.He also suggested to use funds to implement public parking in that area. He stated his concern about the lack of funding for long-term maintenance and he feels that the City will not have enough funding for maintenance. Mr. Chapman requested a summarized version of the RDA budget that provides a simpler overview. 2. 2:13:16 PM General Comments to the Board Chris Zarik expressed concern regarding street improvements on and around 900 south and 200 west. He felt that street improvements are critical to provide an attractive and urban environment, in order to create an anchor for the community and surrounding businesses. James Alafondre stated that he felt that the above surface power lines inhibit growth and are inefficient in that area and is in favor of the 900 south street improvements. Mr. Alafondre urged the Board members to move forward on the project. Jesse Hills stated that he was in favor for funding of the 900 south street improvements.He advised that the local businesses in that area are in need of increased parking on the street, shade trees,and 1 MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY,March 28,2017 pedestrian safety in order for the neighborhood to flourish. He added that undergrounding the utilities is crucial to making any of these improvements happen. B. Redevelopment Agency Business 1. 2:19:40 PM Approval of Minutes Director Mendenhall made a motion to approve the minutes from the February 14,2017.Director Penfold seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. 2. 2:20:17 PM Bonding Update from City Financial Advisor Elizabeth Reid,Blake Wade,and Mary Beth Thompson explained that they were tasked to determine financing options for a list of RDA projects.Ms.Reid stated that after reviewing information provided by the RDA and the City,three memos were provided outlining the limitations of the funding and three potential options. Ms.Reid explained that the RDA can only issue tax increment revenue bonds and general revenue bonds. She said that the RDA's project area revenues are not enough to support the capital improvements identified by the City and that the tax increment is not portable from one project area to another.Due to the limitations of funding and the restrictions,the following three options were provided to the City and RDA: i. RDA could issue general revenue bonds in the amount of$9 Million towards in projects. 2.Salt Lake City could issue sales tax revenue bonds to fund$17.2 Million in projects. 3. Salt Lake City could issue sales tax revenue bonds to fund$20 Million in projects with the debt service paid back with tax increment from the RDA. Ms. Reid reviewed each of the options in further detail and answered questions by RDA Board members. 3. 3:01:17 PM RDA Budget Amendment No. 3 for Fiscal Year 2017 Ms.Bruno,Mr.Leitke,and Ms. Gust-Jensen reviewed the Council Offices' staff report concerning the RDA Budget Amendment No. 3 for fiscal year 2017.Ms. Gust-Jenson said that in looking at the RDA's budget,Council staff also weighed projects and funding against other tools such as CIP,Impact Fees,and City's funding,but noted that in order to utilize the funding a staff person on the Administrative side,tasked with the assignment to research the projects, funding,and the restrictions concerning CIP,Impact Fees, City and RDA funds,and City wide department prioritizes in order to find best practices and utilization. 2 MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY, March 28, 2017 Director Penfold and Director Mendenhall asked for policy discussion concerning RDA contract management,processes,and approval outlining any potential exclusions. Ms. Gust-Jenson stated that Council staff would create an outline and provide a draft to the Administration for comment and come up with a consolidated outline. Director Mendenhall asked RDA Board members to consider a policy regarding vetting cost estimates for projects and better evidence of cost and cost changes. Director Rogers proposed the RDA and the City work together and pay for a feasibility study creating a master plan for undergrounding powerlines throughout the City. Including finance options. Director Andrews stated although he would like to underground power lines he does not feel it is a priority for the City.Director Mendenhall agreed. Assistant Chief Clair Baldwin and Fire Captain Richard Boden, of the Salt Lake City Fire Department were invited to the table to provide insight to undergrounding power lines along 900 South.Assistant Chief Baldwin explained that although there can be exceptions, often times above ground powerlines can hinder development due to them restricting construction and limiting structures to no higher than 30 feet. Ms. Gust- Jensen suggested that the Administration help the City Council Office to have a better understanding to what those exceptions might be.Assistant Chief Baldwin stated that his team would be happy to help. Director Rogers recommended reaching out to Rocky Mountain Power and see if they have already done the research as on priorities in undergrounding power lines. 4:10:55 PM Chairperson Adams conducted a straw poll for the RDA and Council Staff to explore options for undergrounding power lines through a master plan process and collaboration with Rocky Mountain Power and specifically looking at the core of Salt Lake City,within the RDA's Central Business District.All Board members present supported the undergrounding power lines exploration. 4:15:19 PM Chairperson Adams conducted a straw poll to have a future policy discussion concerning RDA contracts,commitments,routing, execution and how the RDA's process could utilize Ordinance 3.25.All Board members present supported the future policy discussion. 4:16:28 PM Chairperson Adams conducted a straw poll for the RDA Board to develop a policy that provides guidance around when conducting or hiring consultants for studies that they are to be used to inform the Administration and RDA Board of potential options and not financial or project commitments. All Board members present supported the development of the policy. 3 MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY, March 28, 2017 Director Adams asked RDA staff to come back to the RDA Board with potential funding options concerning the long-term maintenance for the 900 South Improvements and a breakdown of the costs.Director Adams also stated that the RDA Board and the City Council need information on project that requires long-term maintenance, in the beginning stages of the project and the information should include the overall cost and available funding sources. Ms.Fritts stated while looking into creative funding options for the long-term maintenance of projects,RDA staff could also approach property owners within the West Temple Gateway Project Area to determine the willingness of their participation of an SAA. 5:55:45 PM Recess. 7:26:30 PM Director Mendenhall made a motion that the Board adopt the some of the items related to Budget Amendment#3 for Fiscal Year 2017, and defer action on remaining items to a future meeting. The below funding is contingent upon final approval of the total project costs or options for delivering the project within the Board appropriated budget. 1. $2,290,000 for West Temple Gateway Utility Undergrounding from Program Income Fund contingent upon: a. Explore funding costs for a western extension of utility undergrounding beyond the current scope. 2. $3,660,998 for 900 South Street Improvements from: a. $1,813,038 from West Temple Gateway Project Area Funds b. $1,847 960 from Program Income Fund c. In addition, funds for the 900 South Street Improvements are contingent upon: i. The Administration recommending how to fund the ongoing maintenance costs of the improvements that would be reviewed at the time of a final project cost, and ii. This project design will go through standard City approval processes, and iii. The project will be reassessed for impact fee eligibility. d. This would go through standard City processes of Departmental review. Director Penfold made the following friendly amendment to the motion: e. The assessment and eligibility of impact fees to RDA projects. The friendly amendment was accepted. Chairperson Kitchen seconded the motion. Director Penfold made an additional friendly amendment to the motion as follows: 4 MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY, March 28, 2017 f. Explore funding costs for a western extension beyond current proposal. Director Rogers stated that although he liked the idea,he felt that there are too many variables and more information needs to be gathered concerning bonding, impact fees, and undergrounding. Upon roll call,the motion Chairperson Adams declared the motion approved and the resolution adopted with Chairperson Adams and Director Rogers voting nay. 7:38:16 PM Ms.Lewis and Ms.Lindsley provided an update concerning two Option to Purchase Agreements for Station Center with Boyer/Cowboy and Landforge.Each of the contracts are set to expire March 31,2017. At this time,neither of the contracts are in default,but certain if terms from the RDA cannot be met the RDA could renegotiate the contract(s)or allow the contracts to expire.Due to there being budget for the Boyer/Cowboy project no action is needed. However,the agreement with Landforge states that the RDA would provide temporary access,utilities, and parking by March 31, 2017.If those items are not constructed by the deadline the agreement would automatically terminate. Ms.Lewis explained that the City Attorney's Office directed staff not to renegotiate the terms of this agreement until a budget for this project is approved. The Administration could allow the contract to expire and negotiate new terms at a later date. After a brief conversation,Board members directed RDA staff to work with the Administration on renegotiating the contracts and to revise all future contracts with language stating the appropriation of budget come before contractual obligations. 4. Update on 9 Line and State Street Project Areas,Including support for neighborhoods around the Homeless Resource Centers This item was postponed. 5. Tax Increment Reimbursement Policy This item was postponed. 6. Report and Announcements from the Executive Director None. 7. Report and Announcements from the Staff None. 8. 2:47:25 PM Report of the Chair and Vice Chair Chairperson Adams invited Katie Lewis to the table to discuss RDA contractual 5 MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY,March 28,2017 obligations. Ms.Lewis provided an overview of the differences to RDA contractual obligations and use of negotiating tools,referencing documents,potential terms of an agreement,project commitment verses none commitment. She also provided a briefing on the City's Ordinance 3.25 concerning contracts,commitment,contact routing and execution. She added that the City Attorney's Office is working with RDA staff to in creating a policy similar to Ordinance 3.25. Director Penfold stated that he felt that it makes sense to have the RDA mimic ordinance 3.25 where possible, instead of creating to separate policies. Chairperson Adams asked Ms.Lewis to put together a flow chart explaining the RDA's process from RFP to contract execution.Director Penfold added that within that chart stating where the RDA does or could fall under existing City code and where the RDA should be exempt. 9. Report and Announcements from the Executive Director None. C. Written Briefings 10. Approval of a Loan to Central Ninth Place This is a written report and update for the Board of a $500,000 loan approval made by the RDA Finance Committee, pursuant to all applicable RDA policies and standards,for the completion of 13 townhomes in the West Temple Gateway Project Area. D. Consent 11. Amendment No. 4 to the FY 2017 Budget This item was not discussed. E. Closed Session None. F. 8:10:14 PM Adjournment There being no further business the meeting was adjourned. 6 MINUTES OF THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS TUESDAY, March 28, 2017 Lisa R. Adams, Chairpe on This document along with the digital recording constitute the official minutes of the Redevelopment Agency of Salt Lake City Board of Directors meeting held March 28, 2017. 7