Loading...
05/30/2017 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, May 30, 2017 at 1 : 14 p.m. in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Lisa Adams, Erin Mendenhall, James Rogers, Stan Penfold, Charlie Luke, and Andrew Johnston. Absent: Director Derek Kitchen Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Patrick Leary, Mayor' s Chief of Staff; Margaret Plane, City Attorney; 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; Benjamin Davis, Project Manager; Mary Beth Thompson, Finance Director; John Vuyk, Budget Director; and Cindi Mansell, City Recorder. 1: 14 :21 PM Director Adams presided at and conducted the meeting. The meeting was called to order at 1 : 14 p .m. A. COMMENTS 1:15:47 PM Bernard Hart voiced comments about budget funding to the Health Department. He expressed concern with campers in the City, discussed measurement of success relative to the homeless, and the process to understand and address the homeless population. He asked for some way to open a new door to discuss homeless solutions and said the system to this point had been closed. B. REDEVELOPMENT AGENCY (RDA) BUSINESS #1. 1: 18:20 PM Director Mendenhall moved and Director Johnston seconded to approve the minutes of the March 28, 2017 Redevelopment Agency Board Meeting, all directors present voted aye. View Minutes 2:57 :43 PM Director Penfold moved and Director Luke seconded to approve the minutes of the May 2 and May 16, 2017 Redevelopment Agency Board Joint Meetings, all directors present voted aye . View Minutes #2 . 1:18:57 PM MAYOR' S RECOMMENDED ANNUAL RDA BUDGET FOR FISCAL YEAR 2017-2018. The City Finance Department, Department of Economic Development, RDA Staff and Council Staff will discuss with the Board, the Mayor's recommended budget for FY 2017-2018. View Attachments 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 The Board conducted a unanimous Straw Poll to set aside any Capital Improvement Project (CIP) related items at this time and to discuss them in combination with the General CIP discussion following the budget. Jennifer Bruno, Benjamin Luedtke, Mary Beth Thompson, Ed Butterfield, Ben Davis, Kort Utley and Lara Fritts briefed the Board with attachments . Ms . Bruno reviewed the Redevelopment Agency Key Changes and specific requests needing Board direction and discussion. The Board discussed the Hines Interests Limited Partnerships and 160 South Main, LLC Utah Theater Due Diligence Potential Reimbursement to the developer in the amount of $100, 000 . Mr. Butterfield and Mr. Davis offered explanation of the current process, scope, and agreement terms . Inquiry was raised as to ownership of resulting consultant studies related to the developer' s due diligence, with Mr. Butterfield stating they would be owned by the RDA. Mr. Davis said the due diligence is not an additional study, rather it is a part of standard development process and the funding was only if the project did not come to an Option to Purchase agreement for the potential reimbursement. Ms . Bruno clarified this might fall into the category of contracts written prior to separation of powers and typically, funding would have been approved by the Board prior to Administration entering into an exclusion negotiation with the developer. Director Luke said he was uncomfortable appropriating funds without having more in-depth discussion details of the project' s due diligence . The Board determined there was need for additional discussion on this item (and potential additional or new items included) or follow-up discussion once the developer's diligence was complete. Discussion followed regarding the $3, 588, 808 transfer to CIP expenditures . Ms . Bruno said CIP funds currently functioned by remaining in the budget until repurposed. She said the projects included Downtown Place Making and the Central Business District (CBD) Housing Fund. She said the Board could approve the concept of transferring the funds but would not allocate how they would be spent until later in the year when the Board had the full context of all CIP projects, different bonding/funding scenarios, and could consider all options (including opportunities to utilize Impact Fees) . Discussion followed regarding the Gallivan Roof Repair, with Mr. Utley providing a status update . He said the problem was being studied to determine what was causing the leakage and expectation was for improvements to be completed before the winter weather. 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 Ms . Bruno said the West Capitol Hill - 300 West streetscape improvements could involve infrastructure items that may be bond eligible . She said this item could be included in the potential financing conversation the Board could have at a later date . Ms . Bruno addressed the West Temple Gateway - 900 South Street improvements additional funding request of $518, 000 . Discussion followed regarding the 76% project cost increase within a year. Director Penfold said he understood the final design costs were not yet available and inquired as to conditions for costs associated with resolution of the Public Services and Fire program issues . Mr. Davis said relative to Public Services maintenance funding, Staff was working to provide an updated budget. He said many sources were considered but the best appeared to be the General Fund or a specific General Fund line item for maintenance of these four blocks . He said Staff continued to work with the Fire Department on outstanding items but they had signed off on the street width, bike lanes, etc. Director Penfold compared this project cost to the larger 9th & 9th East community area project wherein the neighborhood determined they did not want to participate and the project was scaled back. He said this project did not appear to have cost containment and expressed concern with the large funding amount for a four-block area and ongoing maintenance funds . Director Mendenhall agreed it was troublesome to make capital improvements involving ongoing expenses and suggested discussion around limits . Discussion followed regarding project area limits along with the 9th & 9th project area being different, it was not an RDA project area and did not involve undergrounding and street improvements . Inquiry was raised regarding the undergrounding expenses associated with the project. Director Penfold said he wanted to see conversation about changing the freeway approach. Discussion followed regarding a study to include the analysis was funded but had not been done yet. Ms . Gust-Jenson explained the Council voted to proceed with the project as planned to include the undergrounding. She said changing the project scope or looking at alternatives would not be something the Board had authority to pursue . The Board expressed concern with ongoing and upward funding costs with no end number in sight. Mr. Davis addressed the funding increase to entail community desire to maximize what was allowed by zoning, moving the power lines to result in height and density in the area, and combining with a park-like feel complete with increased number of trees . He discussed costs of $2, 375, 000 for Rocky Mountain Power to relocate the power lines . Director Penfold suggested exploring the idea of 9th South as a linear park as part of the east/west parkway connection and potential eligibility for impact fees . Mr. Davis said the 9-line trail portion was 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 $306, 000 to fund a portion of the trail . He said as far as parks impact fees and coordinating with them, they felt the project would not be parks eligible . Director Penfold said he wanted to further explore opportunities to creatively define what a trail and park amenity looked like . He said perhaps Staff could also make the request for Parks to consider the opportunity. Mr. Davis said he felt the project could be completed with the budget funding available (including undergrounding and streetscape of $6, 100, 000 with 20o built into the budget) . He said the additional $517, 000 request was a placeholder that would not be utilized if Staff could bid within a better environment closer to winter. Director Penfold said he would rather not allocate the additional funding and requested Staff to return with information based on how the bidding process went. Director Rogers said it was hard to make a decision without all of the information, specifically options for moving the power lines . Ms . Gust- Jenson said reconsideration of a previous vote would include the Council process and motion to change the budget as part of the vote on the final budget adoption. Ms . Bruno offered clarification that the process would basically involve reallocating the previously allocated budget for the undergrounding. Discussion followed regarding the project, funding expenses, and potential for bonding opportunities . Director Penfold said he would be comfortable removing the expanded scope for overhead utilities (i .e . moving forward with the $6, 100, 000 allocated but not the additional $517, 000) . Ms . Gust-Jenson said there would be a charge or exploration expenses for Rocky Mountain Power to make an alternative plan. She offered clarification that a charge would be subtracted from what would be owed for the undergrounding. Mr. Butterfield said he felt a change in scope would take time to research; and options and easements for power poles would have to be acquired which could result in additional costs . Director Johnston expressed concern relative to another open-ended deadline . Mr. Davis said there was an up-front cost and a contract signed with Rocky Mountain Power; he said he would need to return to have them consider alternatives . The Board conducted a 4-2 Straw Poll that before allocating funding, they would request Administration return to Rocky Mountain Power to determine cost estimates for power poles relocation closer to the street versus undergrounding; with Directors Luke, Adams, Penfold and Rogers voted aye; and Directors Mendenhall and Johnston voted nay. The Board conducted a unanimous Straw Poll removing the condition contingency on the undergrounding funding for exploring options extending beyond the scope of this current project (undergrounding to the west) . 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 The Board conducted a unanimous Straw Poll requesting Staff move forward with the $6,187, 000 proposal (without the $517, 000 at this time) and for the Board to revisit potential additional costs at a later date. Ms . Bruno continued with the review of the Depot District - 500 West Design/Study. Directors Mendenhall and Penfold said they wanted to see a broader approach to address this area. Ms . Bruno said the different elements related to homeless services and fund-related issues would be included in unresolved issues . She said Staff could ask Administration how they could best foresee coordinating funding and the Board could make a contingent appropriation based on that. Ms . Bruno reviewed the Public Market Implementation Plan. She said the Administration forwarded the Feasibility Study and Development Plan to Staff last week; Staff had not had time to review it. Director Adams suggested a presentation to determine whether this was still a priority. Mr. Butterfield discussed the study being specific to 5th West and 3rd South. He suggested first addressing the feasibility study to see if there were other locations and then addressing the implementation plan. Ms . Gust-Jenson said each Board Member might have a different degree of information that would also lend to a discussion. Director Penfold said there were many questions and concerns about arrangements, locations, types, models, and need to obtain a sense of indication of comfort level . He suggested doing the feasibility download first in effort to be prepared for what they would be dealing with long-term. Ms. Gust-Jenson said Staff could return with a specific timeline for agenda scheduling. The Board requested inviting the Downtown Alliance and RDA Staff. Ms . Bruno reviewed the Granary District - Adaptive Reuse Program. Inquiry was raised regarding the Volunteers of America (VOA) 400 West infrastructure reimbursement and where the funding would come from. Mr. Butterfield said there was $1, 100, 000 of unappropriated tax increment funds in this District. Director Penfold expressed concern with the timing process and suggested revisiting strategy for rebuilding streets (in this neighborhood particularly) . He said there had been discussion to configure a program for reimbursement for developers who did projects and suggested this may be a strategy to explore for newer RDA areas . A unanimous Straw Poll was conducted to request Staff assist the Board to determine a way to fund reimbursement to the VOA. Ms . Bruno inquired if the Board wanted to Straw Poll the Adaptive Reuse Program as proposed. Mr. Utley responded to questions regarding the program and suggested it could facilitate one or two projects in that neighborhood. He said there continued to be interest in the program and it had been utilized twice (Atmosphere Studios and Fisher Brewery) . The Board requested Staff return with plans and feedback regarding 17 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 opportunities to potentially expand the use of this creative funding option for local business. Director Adams said Director Kitchen wanted to see funding for the Mural Project. The Board determined to discuss this proposal at a future date when Director Kitchen could be present. Further discussion followed regarding the North Temple transfers to CIP, Block 70 project funding, Revolving Loan Fund, Program Income Fund, and Project Area Creation. Director Penfold said he was interested in seeing where those professional services were being allocated (whether project area specific or generic across all RDA) . He inquired as to project area creation dollars and whether Staff was comfortable with the request to move forward. Mr. Butterfield said the Northwest Quadrant was funded from a different source; these funds were meant to help setup any preliminary studies or set aside if additional investigation of areas were raised. Ms . Bruno addressed Citywide Housing and a potential Legislative Intent to better track specific areas and benefits from how specific resources were allocated. She said Staff would prepare Legislative Intents and a motion sheet based on discussion unless they heard otherwise . Director Mendenhall inquired as to opportunities for the Board to travel with Staff to investigate other areas with similar State Street areas . She said she had not heard back and requested consideration and feedback. #3. 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. Item not held. #4 . Report and Announcements from the 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 scheduling items. Item not held. #5. Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Item not held. 17 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 30 , 2017 The meeting adjourned at 2 : 58 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 May 30, 2017 . clm 17 - 7