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05/14/2019 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, May 14, 2019 in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Erin Mendenhall, Amy Fowler, Charlie Luke, Chris Wharton, Analia Valdemoros, James Rogers, and Andrew Johnston. Staff in Attendance: Jennifer Bruno, Council Executive Deputy Director; David Litvack, Mayor' s Deputy Chief of Staff; Danny Walz, RDA Chief Operating Officer; Katherine Lewis, Senior City Attorney; Kort Utley, RDA Senior Project Manager; Tammy Hunsaker, RDA Project Manager; Susan Lundmark, RDA Project Manager; Tracy Tran, RDA Project Manager; Benjamin Luedtke, Council Public Policy Analyst; and DeeDee Robinson, Deputy City Recorder. Director Fowler presided at and conducted the meeting. The meeting was called to order at 2 : 08 p.m. A. GENERAL COMMENTS TO THE BOARD 2 :0 8 :3 6 PM None . B. PUBLIC HEARINGS 2 :08:38 PM None . C. REDEVELOPMENT AGENCY BUSINESS 2:08:40 PM #1 . 2:08:52 PM Approval of Minutes . Director Wharton moved and Director Mendenhall seconded to approve the minutes of the RDA Board meeting held Tuesday, April 23, 2019, which motion carried, all directors voted aye. View Minutes (M 19-6) #2 . 2:09:13 PM Guiding Framework and Project Evaluation Process. The Board will be briefed about RDA Staff's proposed guiding framework and evaluation process for prioritizing various redevelopment projects. The intent of the framework would be to clarify the organization's purpose and outline a methodology for prioritizing projects that align most closely with the RDA's goals. In addition, Staff is seeking input on a project evaluation process that would help determine a project's priority level based on the public benefits it creates. View Attachments Danny Walz and Kort Utley briefed the Board with attachments . Mr. Utley said this was done through a working group to formulate ideas . He said they did not recreate the wheel, but rather conducted discussion 19 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 regarding prioritizing. He said they reviewed an old RDA Mission Statement, and the Department of Economic Development Department Strategic Plan which called for the creation of strategic framework, and they looked at what other communities were doing. He said there were three categories : money/return on investment/finance; people/community impact/quality of life; and the build environment/neighborhoods . Mr. Utley addressed the RDA Mission + Values (economic growth, community impact, neighborhood vibrancy) . He reviewed threshold requirements including: City Policies & Plans; Project Area Work Plans; and Financial Viability. He reviewed livability benchmarks and program criteria. He reviewed the project evaluation process based on the mission and values criteria. Director Mendenhall discussed future project area considerations and how this framework might translate to that timeline (was it a worksheet/how would the applicant/community engage with these goals) . Mr. Utley said this would be information communicated via website with private sector partners . He said whether that was via loan application, tax increment reimbursement request, or debate over property purchase, he could see Staff utilizing this process . Mr. Walz said consideration of items was not limited to those listed on the project evaluation process . He said the purpose was to take these core values and then carry them down through everything they do. Director Fowler asked the Board to convey any missing elements they wanted to see benchmarked. She said this was a living and evolving document with key values and missions as guidance . Mr. Utley said the benchmarks would be something to evaluate a project against to identify how many could be achieved. He said that information could then be communicated to development partners . Director Mendenhall suggested changing under community impact to include transit opportunities should be new or enhanced transit opportunities . She said under community support, she wanted specifics as to what unique needs they were filling. She suggested a tiered or graded scoring process . She discussed sustainability and said the Board had no guarantees or teeth for enforcement . She said she wanted to see more clarity about unique assets being brought forth. Discussion followed that perhaps the project could have more clarity and not necessarily the framework process, or even building in more clarity into the process itself. Mr. Utley said the benchmarks were categorized and if they appeared accurate, Staff could return and flush out intent language and metrics that would trigger a decision. He said Staff first wanted to check in on process, categories, and topics before pressing forward. Director Mendenhall asked Staff to check with Sustainability Department about the sustainability component to see if they had insight or recommendations . 19 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 Mr. Utley continued with values building on the mission and categorized in the topics . He said the language was important and Staff was excited about this simplicity that really added clarity to the RDA work. He said project area work plans would be a new document created for each project area (simple/one page/1-3-year life span) . #3. 2:32:31 PM Project Area Survey Discussion. The Board will receive a follow-up briefing about potential project area surveys. A primary function of the RDA Board is to create community reinvestment areas, otherwise known as CRAs or project areas. The Board will discuss some new and extended project area concepts, and receive an update on the 9-Line and State Street project areas. View Attachments Danny Walz and Susan Lundmark briefed the Board with attachments . Mr. Walz said the idea was to bring to the table the different directions Staff was working within to understand what was happening in the City and the degree of difficulty in prioritizing resources and time . He provided a status update on the State Street and 9-Line project areas, which were both actively being worked on and progressing. He said Staff spoke to other partners relative to tax increment. He said the School District was supportive of the 9-Line and good conversations were conducted regarding an interlocal agreement. He said the School District was supportive of the State Street Project Area. He said they understood the need for revitalization but had concerns with size/expansion of the area towards 300 West and the industrial area (they did not see how that benefitted the school district, families, and housing) . He said Staff appreciated the feedback and were working to return with options for consideration to address their goals . He said for Block 67, Staff was in final negotiations for the interlocal with the developer and Salt Lake County. He said Staff intended to follow-up with the School District and County in this regard. Director Wharton inquired how to address School District concerns relative to State Street. Mr. Walz discussed options such as : changing boundaries (not preferred choice) , meeting to convey City priorities and goals for the project area and illustrate how those could align (preference) , or looking at ways of reducing or changing the participation rate within the project area to be more in alignment with their desired target area. Ms . Lundmark said Staff was working to compile data for the School District and were hoping to include this topic with the Block 67 meeting scheduled for June . Director Mendenhall discussed the inclusion of 300 West, including the rebuild of 300 West and the new Homeless Resource Center. She said there had been shifts in this area investments that hoped to attract investors . She suggested consideration of goals (where this area started/where it was now/different) . Mr. Walz said it would be an 19 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 important concept to point out to the School District that area was an economic generator that could help feed development throughout the remaining project area. Director Fowler said there were 13 project areas and inquired about Staffing and workload. Mr. Walz said it would be short-sided not to be looking at additional project areas (Research Park, Granary/400 West/400 South, and Grand Boulevard Areas . He said they had one position vacant to be fully staffed and additional Staffing was requested as part of the FY19-20 budget (2 project managers/coordinator and 1 special project assistant) . Director Rogers discussed potential project areas blanketing the entire City. He inquired if individual boundaries were needed or whether the City could enlist some sort of project area overlay. Mr. Walz said when considering how long some areas took to be created, it would be worthy to consider whether there was a better or more efficient way. He said alternative models were under consideration and Staff wanted to return to the Board with information and discussion. #4 . 2:47:54 PM High-opportunity Notice of Funding Availability Update . The Board will receive an update about the Notice of Funding Availability (NOFA) for affordable housing in high-opportunity areas. In December 2017, the Board appropriated $4. 5 million to be dispersed through the transparent and competitive NOFA process. The briefing will include a review of challenges and alternative options to move forward with dispersing funds. View Attachments Tammy Hunsaker, Danny Walz, and Tracy Tran briefed the Board with attachments . Ms . Hunsaker provided background and said the NOFA had been on the street since 2018 without receipt of a viable funding request. She discussed what defined the high-opportunity areas; considering an assessment of why RDA Staff felt the funds had not been deployed in the community; and discussed options to get the funding out on the street. She said high-opportunity were typically areas that provided assets to further economic mobility. She referenced a 2014 map published as part of the Fair Housing Equity Assessment that was done at the regional level; it was updated with new indicators . She said the data was given to the RDA to be utilized in their NOFA and included variables such as household income, housing stability, adult educational attainment, and labor-market engagement . She said other opportunity areas included neighborhood factors such as elementary school performance, access to transit or open space, crime, and other indicators that related to opportunity. She said going forward, other data sources could be incorporated. Ms . Bruno said at the time, Staff was looking for an easy plug-and- 19 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 play starting point model that could be used to get that funding on the street (versus spending a great deal of time contemplating the indicators) . Ms . Tran said four factors or barriers potentially preventing use were identified as follows : land uses; small parcel sizes; land cost; and historic district designation. Ms . Hunsaker said options for moving forward included: continuing to offer the high-opportunity NOFA; reissuing the high-opportunity NOFA based on updated indicators; acquiring property and issuing a request for qualifications and/or proposal process for development of affordable housing; or set-aside funding for the redevelopment of Sugarmont Plaza as affordable housing. She said one other update was presentation of this briefing to the Redevelopment Advisory Committee (RAC) and their recommendation to keep the NOFA out (as is) while allowing Staff to work to update those indicators (and include a time limit to ultimately deploy funds in Sugarmont or other project area) . Director Fowler inquired as to advantages associated with request- for-qualifications (RFQ/P) versus NOFA application. Ms . Hunsaker said if a site were purchased and RFQ/P were issued, the due diligence would be a burden on RDA Staff and included room for future potential participation of the RDA. Mr. Walz said this would mean essentially doing the due diligence for the developer. Concern was expressed as to whether a developer could apply for the NOFA as well as other funding. Director Mendenhall inquired about the need to approach criteria about what constituted participation and whether this should be looked at differently for expensive properties compared to other low-income City properties . She inquired as to adjusting criteria in terms of funding participation. Ms . Hunsaker said the NOFA had favorable funds attached to them (soft loans repaid through cash flow/low interest rate/long term) . She said often, the terms would not pencil for the developer. Discussion followed regarding how to increase single-family affordability across the City, how to create smaller property opportunities out of this funding, and how to consider creative ways to use this funding on small parcels or even combining City-owned and privately-owned properties . Director Mendenhall requested Staff work with Housing and Neighborhood Development and return with answers on what could be gained on the Sugarmont property if funds were contributed to increasing affordability (including sense of timeline) . Director Rogers inquired about usability within current projects . Further discussion followed regarding options for moving forward, with Director Johnston stating he would personally support use for Sugarmont to allow for a serious dent in volume for depth of affordability. He said consideration could be given to other single-family residences but 19 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 he wanted to proceed in this manner today. Mr. Walz said there were still steps to be taken that would take time and Sugarmont would be a good fallback while allowing the NOFA to remain open and accessible (per RAC recommendation) . Director Fowler inquired if there were anything to be changed now, with Staff stating existing criteria and terms would suffice and there was language included that anything which needed to be adjusted could go before the Board. Ms . Hunsaker said Staff could choose to open the NOFA up to moderate areas at this time. She provided a quick overview on the advertising process (banners, social media, etc. ) . 3:14:52 PM A Straw Poll was conducted to proceed with the approved RAC recommendation to continue to offer the high-opportunity NOFA while pursuing conversation with the Ken Gardner Policy Institute about indicators/updating the high opportunity index (thereby expanding the designated area) , and exploring affordability within the Sugarmont Plaza Redevelopment project or another RDA-led project. All Directors were in favor, except Director Rogers, who was absent for the vote . #5. 3:22:40 PM Board Appointment: Redevelopment Agency Committee - Mojdeh Sakaki. The Board will interview Mojdeh Sakaki prior to considering her appointment to the Redevelopment Agency Committee for a term ending January 16, 2023. View Attachment Director Fowler indicated Ms . Sakaki' s name would be on the consent agenda for formal appointment. #6. 3:17:18 PM Report and Announcements from the Executive Director. Report of the Executive Director, including a review of information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input. #7 . 3:17:27 PM Report and Announcements from RDA Staff. The Board may review Board information and announcements. The Board may give feedback on any item related to City business, including but not limited to: • RDA Staff Training; • Upcoming Events such as the RDA 50th-Year Anniversary celebration on Friday, June 21, from 3-5 p.m. at the Gallivan Center; and • Scheduling Items . #8 . 3:20:30 PM Report of the Chair and Vice Chair. D . WRITTEN BRIEFINGS None. 19 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 14 , 2019 E. 3:25:11 PM CONSENT Director Luke moved and Director Rogers seconded to approve the Consent Items as presented, which motion carried, all directors present voted aye . #1 . Set Date - Resolution: Budget Amendment No. 5 for Fiscal Year 2018-19 . The Board will set the dates of Tuesday, June 11 , 2019 at 2: 00 p.m. to accept public comment, discuss, and consider approving a resolution amending the final budget of the Redevelopment Agency of Salt Lake City, Utah for Fiscal Year 2018-19. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency's budget, including proposed project additions and modifications. View Attachments #2 . Board Appointment: Redevelopment Agency Committee - Mojdeh Sakaki . The Board will consider approving the appointment of Mojdeh Sakaki to the Redevelopment Agency Committee for a term ending January 16, 2023. F. (TENTATIVE) CLOSED EXECUTIVE SESSION. The Board will 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 3 : 25 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 pursuant to Utah Code §52-4-203 (2) (b) . This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held May 14, 2019 . clm 19 - 7