11/12/2019 - Minutes (3) MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, NOVEMBER 12 , 2019
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, November 12, 2019 in Room 326, Committee
Room, City County Building, 451 South State.
In Attendance: Directors Amy Fowler, Charlie Luke, Analia Valdemoros,
James Rogers, and Andrew Johnston.
Absent: Directors Mendenhall and Wharton .
Staff in Attendance: Cindy Gust-Jenson, Council Executive Director;
Jennifer Bruno, Council Executive Deputy Director; David Litvack,
Mayor' s Deputy Chief of Staff; Patrick Leary, Mayor' s Chief of Staff;
Rusty Vetter, Deputy City Attorney; Danny Walz, RDA Chief Operating
Officer; Jill Wilkerson-Smith, RDA Deputy 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; Corinne Piazza, RDA Project
Manager; Lehua Weaver, Council Associate Deputy Director; Benjamin
Luedtke, Council Public Policy Analyst; Allison Rowland, Council Public
Policy Analyst; Nick Tarbet, Council Senior Public Policy Analyst; Scott
Crandall, Deputy City Recorder; and Cindi Mansell, City Recorder.
Director Fowler presided at and conducted the meeting.
The meeting was called to order at 12 : 09 p.m.
A. 12:09:45 PM GENERAL COMMENTS TO THE BOARD
Steven McCurdy said he represented over 3, 600 individuals who had
signed the "Petition to Save the Utah Theater" . He provided comments
that included: saving this remaining treasure, the theater being part of
Utah cultural history, destruction of history for new skyrises, loss of
beauty and architecture, duty to preserve, historic preservation
importance, and destruction of another landmark.
Paul Christensen, Council District six resident/business owner,
spoke in favor of downtown high-rise development and the need for a 24/7
downtown environment . He discussed the importance of this project and
said the Capitol Theater had been preserved but economics did not make
sense on the Utah Theater rehabilitation and spending of taxpayer
dollars .
Darby McDonough touted the importance of Salt Lake City in film
history and said the Utah Theater could be a downtown 70mm screen (one
of few remaining) . She said there were many youth (ages 18-29) who were
invested in architectural history. She offered comparison to the City &
County Building that was almost torn down but ultimately saved and
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TUESDAY, NOVEMBER 12 , 2019
retrofitted. She said there were multiple other properties that could be
alternatively used for this project.
Pete Ashdown, X-Mission, discussed the show of public support for
preserving the theater (with over 3, 600 petition signers in three weeks) .
He said the Tacoma Theater was restored with seismic upgrades for $24 . 3
million; Minneapolis with $8 million; and he felt the $60 million
estimate was inflated. He said Salt Lake County was ready to manage the
theater and had the budget to do so; he said Mayor Wilson said she
welcomed pausing this process so the County and City could work together
to preserve it. He said the City either needed to embrace mass transit
and air quality or not, but he did not want to see downtown turn into
parking garages and empty luxury condominiums . He said Mayor Biskupski
had doomed the Theater without adequate public input, and the Council
should serve as the counterbalance to the Mayor.
Lisa Allcott said she was a past board member of the Utah Film
Center and was involved in the Salt Lake County study five years ago.
She said that proposal was rejected by the RDA staff as being flawed.
She said the City had changed in five years and was not the same as when
that proposal was put together. She said this consideration deserved
more public input (similar to City efforts for other ventures) .
Michael Valentine, filmmaker and downtown activist, said this
facility, if restored, would be one of the greatest cinema screens in
the world. He said rehabilitation of the Eccles Theater was triple this
cost, Sundance brought millions in tourism funding to Utah, and the
theater should be rebuilt for architecture and future film industry.
Daniel Steiner said he was a University of Utah film student. He
said he loved the history of Utah and would often take his friends
downtown to show them historic points (the Utah Theater being one) . He
said if culture and art kept being torn out of the City, no one would
want to reside in the replacement high rise buildings .
David Amott said he represented the Preservation Utah Board and
Salt Lake City constituency. He said they wanted to see it saved and
many had asked about the public process regarding signing the fate of
the Utah Theater. He said a process was compiled to start with a series
of tours and a survey; however, the RDA stopped that process and he
wanted to know why. He said it had been suggested that decorative
elements from the theater would be incorporated into the new development,
but the historical value would be destroyed once removed from its
original location. He said that process would not serve to honor the
Utah Theater history.
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TUESDAY, NOVEMBER 12 , 2019
Casey O'Brien McDonough said he worked in architecture and had been
on both sides of these types of issues . He said in reading through the
paperwork, it felt like the process was driven by a priority list that
put the theater at the bottom and all other elements at the top. He said
the theater was bought with the intent of the City and support of the
residents to save it and there were still ways to find a way to save it
to benefit the City, Hines and their adjacent property, and LaSalle and
their desire to have a restaurant in the new development . He said all
the questions had not been asked to do whatever possible to save the
theater.
Josh Schenerman, local artist, said the RDA mission included work
to revitalize neighborhoods . He said the Granary District was a great
example because industries came from Denver and bought 13 blocks
(resulting in a $40 million increase in the City' s General Fund) . He
said there were also five skyscrapers going up in the next few years so
this development in this location would not be a novelty.
Karol McDonough said she had items from both the Orpheum and Utah
Theaters and her children grew up looking at those items and developing
a love for them. She said if the theater were to be restored, she would
donate these valuable historical elements to reinstate its architectural
heritage .
Karen Horne, local artist, said she was awarded the 2013 Mayor' s
Visual Artist Award for her series celebrating downtown Salt Lake City
landmarks (including Capitol Theater) . She said she never had an
opportunity to tour the Utah Theater, expressed concern about the lack
of public process, and implored the Board, City Council, and Mayor to
pause the process and allow for public input and feedback.
Polly Hart said she was the longest serving Redevelopment Advisory
Committee member (10 years) . She discussed RDA goals and said they should
preserve this treasure.
Dawn Borchardt said she had worked in many theaters and people
connected to theaters in history and character and not to sterile cinema
environments . She said it would be valuable to the City, and people would
come from all over the country to see this priceless theater if it were
to be rehabilitated.
Kimber Pino discussed growing up in Utah, memories, history, and
the architectural significance of the theater.
Jeff Thompson, former archivist at 20th Century Fox, said the Utah
theater was one of the most important remaining theaters .
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Brent Barnett said the cost of the theater renovation had been
completely misstated. He said this decision was about the future vision
for the City. He said Main Street needed great public spaces, and there
was a need to plan for an entire theater district.
Robert Stefanik discussed the need to preserve history and said the
theater could become a spot for film premiers, weekends flash back
events, and classic films . He said Salt Lake should not destroy this
landmark because there was the need for a historic theater district.
David Berg discussed early memories of coming to the City & County
Building when there was talk about knocking it down. He said those
arguments were the same by those who stood to profit, just like now. He
asked the Board to honor their commitment to the public and save the
jewel of Main Street, and to follow the example of Tacoma and St. Paul
who had sister theaters .
George Phillips said he was going to buy the theater, but he let
the City acquire it . He said the City bought it with the intention of
restoring it. He said he would have restored it and it would not be in
the shape it is now. He said he was disappointed this discussion was
still going on ten years later and hoped a different decision could
reaffirm his faith in City government . He said the building needed to be
restored and preserved for future generations; it was the last building
of its kind in this town; and if the building was destroyed, it would
destroy a part of Salt Lake history.
Heather Armstrong said she had no idea this was happening and was
appalled the RDA would move forward when there were so many others who
had no idea the theater existed. She implored the Board to open this up
for a public process to make the determination.
Joel Pino did not speak but submitted a written comment card. He
expressed concern and said it was difficult to understand why it had
been so hard for the public to gain information and have a voice in
saving the Utah Theater. He said it seemed like the process was kept
away from the public and their opinions .
Annette Naisbitt did not speak but submitted a written comment card.
She said there was need for a grand theater district and a plan for
future theater districts . She said this theater should be saved for the
interest and culture of future generations .
Robert Eckman did not speak but submitted a written comment card.
Elinor Sargent did not speak but submitted a written comment card.
She said the Utah Theater (Pantages) had a rich history and was one of
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the City' s treasures . She said she was able to tour it a few years ago
and it was still beautiful, and architectural heritage was an important
part of the City that could enhance tourism and positively impact quality
of life . She said renovating was worth the money spent, as the
craftsmanship in the building could never be replicated. She offered
comparison to the City and County Building and said the right choice was
made and it was saved. She said the same must be done for the Utah
Theater.
B. REDEVELOPMENT AGENCY BUSINESS
#1 . 2:06:46 PM Approval of Minutes . Director Luke moved and Director
Johnston seconded to approve the minutes of the RDA Board meetings held
Tuesday, September 24, 2019 and Tuesday, October 8 , 2019, which motion
carried, all directors present voted aye . View Minutes
(M 19-6)
#2 . 12:53:47 PM Resolution: RDA Budget Amendment No.1 for Fiscal
Year 2019-20 Follow-up. The Board will receive a follow-up briefing about
a resolution amending the final budget of the Redevelopment Agency of
Salt Lake City for Fiscal Year 2019-20. Budget amendments happen several
times each year to reflect adjustments in the Redevelopment Agency's
budget, including proposed project additions and modifications. This
proposed amendment includes allocating funding to the new 650 South Main
TRAX Station, and reallocating funds for the Station Center project,
among other changes. A public hearing will be held on this item at 2: 00
p.m. or immediately following item number one on the Council Work Session
agenda. View Attachments
Benjamin Luedtke and Danny Walz briefed the Board with attachments .
Mr. Luedtke referenced the draft motion sheet and said it included a
contingent appropriation related to the $750, 000 additional funding for
a new TRAX station at 650 South Main Street. He said the Board already
appropriated $639, 000, and this additional funding would not fully fund
the project. He said adjacent property owners were expected to contribute
some of the additional funding to get to the $2, 000, 000 . He discussed
funding contingencies and a formalized written agreement with Utah
Transit Authority (UTA) in which they would commit to operate and
maintain the station. He said the original funding was adequate to
continue the design of the station so none of the contingencies would
slow down the project (adding a step for more information to return to
the Board as well as return with a funding plan) . He said in addition,
Administration was requesting an additional $500, 000 from the Revolving
Loan Fund/Fund Balance be included (related to the loan for the Jefferson
on the agenda later today) .
Director Fowler said the public hearing was noticed for 2 : 00 p.m.
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and the Board would not act until they conducted that public hearing.
#3 . 1:35:25 PM Informational: 900 South Streetscape Improvements and
Electrical Undergrounding. The Board be briefed about potential tools to
fund ongoing maintenance expenses for proposed streetscape improvements
and electrical undergrounding on 900 South Street. View Attachments
Danny Walz , Benjamin Luedtke, Jennifer Bruno, and Kort Utley briefed
the Board with attachments .
Mr. Luedtke provided background and said the Board had approved
$1, 316, 000 in additional funding for streetscape improvements and
undergrounding powerlines contingent upon the Administration returning
to the Board with a proposed maintenance funding plan as well as an
update on final project cost estimates . He said the total construction
budget was $7 . 5 million and that would fully fund streetscape,
undergrounding, and Capital Improvement Plan (CIP) funding for 9-line
trail that went directly through the project area. He said the
maintenance funding estimate for landscaping (planter beds, hardscape
maintenance, and contingency) was $44, 307 .
Mr. Luedtke said Staff contacted Central Ninth property owners and
calculated costs of a special assessment area (SAA) ($20 . 69 per linear
foot of property or $2, 800 annually for the average business owner in
the District) . He said the neighborhood felt the area was in transition
and more susceptible to financial risk, and Staff did not feel the
concept of SAA would reach the level of support (61% needed to be
successful) . He discussed various funding option scenarios including:
scope reduction; RDA payment for some or all maintenance to come out of
the Program Income Fund (the West Temple Gateway Project Area had
expired) ; or the option to split or phase the funding for maintenance
between the RDA and General Fund. Mr. Luedtke referenced the policy
questions and said a decision was not needed today, as there was adequate
funding for project design to continue the discussion should the Board
want more feedback from discussions with property owners . He referenced
snow removal policy guidance and said snow removal was no longer part of
the project . He said some Board Members raised the lack of a City policy
guiding what areas received snow removal and the equity issues that could
arise with an ad hoc approach.
Discussion followed regarding the SAA concept and whether that could
be split, with remaining funding to be shared in multiple ways . Concern
was expressed that design would be part of or affect the ongoing
maintenance discussion. Mr. Utley said the design phase was at 50o and
the design for the remaining corridor needed to catch up. He said he did
not see decisions being made today affecting those designs . Director
Rogers said there could be items affiliated with what was included as
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part of that maintenance . Director Fowler said meetings with property
owners reflected major concerns being parking/angled parking in street
center, trees, and traffic calming.
Director Johnston inquired if there were a method to phase out
City/RDA paying for maintenance for a certain time period (to get an
area up and running) . He suggested memorializing something along those
lines within the resolution to draw the line on maintenance at some
point. Ms . Bruno explained typically that was forced by the life of an
amenity (i .e . once a neighborhood had an amenity, she had not seen the
Council remove it but rather, replace and City bearing the cost) .
Mr. Walz said the neighborhood had also brought up this area being
the test zone for the form-based zoning concept . He said if the City
were to allow the additional density, this was a small request to make
to provide parking for the business district. He said the group was
willing to perform snow removal, empty trash receptacles, and pay for
any additional amenities .
Director Fowler said she would support maintenance coming out of
the General Fund because many of these property owners (business and
residents) had developed or made improvements at their own risk so these
amenities did not seem a big ask. She said the supporting businesses
were going to bring additional funding into the area. She said the City
could do their part by maintaining those few amenities (they had shaved
down to three critical items) . Director Johnston expressed further
concern as to future area equity considerations .
#4 . 12:57:45 PM Informational: Utah Theater Redevelopment Follow-
up. The Board will receive a follow-up briefing about the potential
redevelopment of the Utah Theater, located at 144 South Main Street, and
adjacent retail property. View Attachments
Danny Walz , Benjamin Luedtke, and Tammy Hunsaker briefed the Board
with attachments . Mr . Luedtke referenced a summary of the required public
benefits : low-income apartments in downtown; midblock walkway; and reuse
of historic elements . Mr. Walz said this discussion was to determine a
purchase price for the Utah Theater in consideration for potential write-
down for the required public benefits included in the purchase and sale
agreement for the property disposition that had been executed by the
Administration. He said the agreement provided the ability for the
developer to request a write-down from the Board to take into
consideration the restrictive easements that would be recorded against
the property. He said Staff was present to provide information and
discuss costs related to the public benefits as well as follow-up to
previous discussions .
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Ms . Hunsaker provided background on the project as well as current
status . She said the theater was acquired in 2010, between 2010-2016
Staff conducted research, held an open house and conducted internal
studies calculating seismic and structural costs . She said in late 2015,
the RDA decided to begin negotiations with adjacent property owners
(Hines and LaSalle) . She said in May 2019, the property appraisal was
$4, 070, 000 . She provided a brief overview of the project and discussed
the required public benefits and costs between $5 . 7 and $7 million. She
said there could be optional public benefits contingent upon additional
analysis to include : additional affordable housing; non-profit office
space; and publicly-accessible park space.
Ms . Hunsaker discussed follow-up information and the question of
eligibility for historic tax credits . She said in 2017, the Federal Tax
Reform removed the 10o historic tax credit option (leaving only the 200
option available) . She said Staff was advised in the past by two
different primary sources (Utah Heritage Foundation/Preservation Utah
and the 2014 Film Study) that the site was not eligible for listing on
the Historic Register and therefore not eligible for tax credits . She
said the property was not included in a national historic district or
located on the Historic Register. She said one opportunity to have it
eligible would be to expand a neighboring historic district; however,
the theater would have to uphold the intent of that district. She said
another opportunity would be if a rehabilitation were fully funded up
front the Theater might be retroactively placed on the Historic Register
and those tax credits refunded.
Ms . Hunsaker further reviewed bonding capacity as well as affordable
housing comparison (per unit subsidy ranges from $5, 000 per unit to
upwards of $90, 000) . She said most RDA or City projects with affordable-
housing dollars were also receiving low-income housing tax credits or
other funding (making them more affordable) . She said there was also
information on new market tax credits and other potential funding
sources .
Director Valdemoros discussed what was required, optional public
benefits, and how that was determined. She said there was discussion of
open space meaning a park and that was no longer an option. Mr. Walz
said the distinction between required and optional requirements came
back to when Staff first started the conversation of potentially tearing
down the theater and constructing a development on the site . He said the
intent was to prioritize those public benefits in lieu of the theater
(thus the top three, as well as others that were additional or
enhancements) . He said about the question on open space, the developer
advised there would be open space. He said Staff questioned the extent
(amenity owned, retained and managed by the developer versus what the
City wanted to see as a public use and benefit and where there could be
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participation to expand or for maintenance) . He said Staff fully
anticipated/assumed the developer would provide that open space and the
question was to activation or maintenance . Director Valdemoros said she
was not comfortable with that not being written or included and the City
did not have funds for maintenance of a new park. Mr. Walz said if the
benefits did not happen, the RDA would have the first right of refusal
to buy the property back.
Further discussion followed regarding the right of the Executive
Director to sell the property without much RDA input and whether there
was consideration of the historic element of the property. Mr. Walz said
if this were a land disposition with no consideration for write-down,
the Mayor would have the ability to do so under current policy. He said
if the Mayor wanted to include public benefits and there were impacts on
cost more than 100 of the land value, that would then put it before the
RDA. He said the deal was then structured that in order to sell, they
wanted to include additional public benefits and the deal would need to
come before the Board. He said bonding had historically been discussed
to finance these significant costs, and there was a question as to what
level to preserve or restore the theater, etc. He said those costs were
always presented at a range because of the discrepancy of options . He
said the Mayor determined that given the recent sales tax increase and
bond for road improvements, she did not feel this met the intent of
issuing additional debt to the citizens . He said there were no additional
means of financing this project and Staff determined to move forward on
to this development.
Director Fowler said the Board could not issue debt without the
Mayor' s approval . Mr. Walz said that was a decision made by the Mayor
and a factor in her decision to sell the property. Director Fowler said
the question to the Board was about the land write-down and not the
purchase and sale agreement (which was an Administrative function) . She
said the question was about the public benefits and whether those add up
to a land write-down. Ms . Hunsaker said the cost to the public benefits
was above and beyond the land value .
Director Fowler requested a budget proposal to incorporate
preservation via a third-party historic element documentation. She
suggested discussions with Public Services about the City' s impact if
public park/open space were maintained in that area (should that be on
the table for discussion) .
Director Johnston inquired as to the November contract deadline .
Mr. Walz said the question was raised as part of the previous contract
and due diligence (the deadline was last November but the developer had
a year to work towards closing) . He said when Staff got to the point of
moving towards development that did not anticipate preserving the
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theater, discussion turned to approving the agreement as well as changing
the scope of the development. He said Staff opted to negotiate a new
purchase and sale agreement. Director Johnston said he struggled and
could not rationally find a reason to support the sale of the property.
He said the public benefits were not able to be replicated elsewhere . He
said he heard there were prominent people who would support
rehabilitation of the theater; however, the time had passed for
generalizations and there was need for concrete support, ideas, and
specifics .
Director Valdemoros agreed she wanted to exhaust every single other
option. She said the Board was at the point where they could change
history; they did not have the funding and needed the public' s
assistance .
Director Rogers said he was looking forward to the new project
because the photos did not depict the current theater status (shameful) .
He said it would be great to rehab but it did not financially pencil out
and the Board and Staff had already considered every other possibility.
Director Fowler said this was a hard discussion and it was
heartbreaking to see what had happened on the inside of the building.
She said repair took money and so did fixing roads and every other
responsibility. She said it was not up to the Board whether to sell the
land and there were many pieces at play. She said she appreciated the
sentiment involved and how difficult this decision was . She said Staff
worked hard and if the theater could not be saved, at least something
could be built that could be enjoyed and made a contributing part of the
City. She said the item was scheduled for adoption at the December
meeting.
#5 . 1:55:23 PM Resolution: Revolving Loan Fund Application for
Mixed-use Project at 912-916 Jefferson Street. The Board will be briefed
about, and will consider adopting, a resolution that would approve a
loan of nearly $2 million to Central Ninth Development Partners II LLC
for a mixed-use project at approximately 912-916 Jefferson Street.
Located in the West Temple Gateway project area, Central 9th Market Phase
2 will contain commercial retail on the ground floor and three one-
bedroom residential units above. View Attachments
Allison Rowland, Susan Lundmark, and Danny Walz briefed the Board
with attachments . Ms . Rowland said this was linked to the budget
amendment and referenced the policy question relative to the proposed
mid-block walkway and loan reduction. She said the Board could consider
whether that represented a significant enough amenity to merit that
change .
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Ms . Lundmark discussed the mixed-use development project, site map,
and financial overview of the proposed $1 . 9 million loan. She said the
applicant was requesting six public benefit interest rate reductions for
a total of 3% discount (sustainability, public amenities, architecture
and urban design, transit alternatives, economic impact, and affordable
housing) .
Discussion followed regarding the 50-year term on affordability
deed restrictions for the housing component, with Ms . Lundmark stating
the loan term was 5 years (with an option for extension) more to reflect
the housing commercial loan. She said the Redevelopment Advisory
Committee (RAC) recommended approval .
Director Rogers moved and Director Johnston seconded to adopt
Resolution R-20-2019 approving the term sheet for a loan to an affiliate
of Central Ninth Development Partners II, LLC for a mixed use project
located at approximately 912-916 Jefferson Street, which motion carried,
all directors present voted aye.
#6 . 2:05:43 PM Resolution: RDA Guiding Framework, including RDA
Mission and Values Follow-up. The Board will receive a follow-up
briefing, and will consider adopting a resolution, for the RDA's guiding
framework for strategic operations. 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
Kort Utley and Danny Walz briefed the Board with attachments . Mr .
Utley referenced the additional sustainability language .
Director Rogers moved and Director Johnston seconded to adopt
Resolution R-22-2019 adopting the Agency' s Guiding Framework for Mission
and Values, which motion carried, all directors present voted aye .
#7 . 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.
No discussion held.
#8 . 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 Block 70
Update and Scheduling Items.
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#9 . Report of the Chair and Vice Chair.
No discussion held.
C. WRITTEN BRIEFINGS
None .
D . CONSENT
None .
E. PUBLIC HEARINGS
The Public Hearing will be held at 2 : 00 p.m. or immediately
following item No. 1 on the Council Work Session agenda.
#1. 2:04:56 PM Resolution: RDA Budget Amendment No. 1 for Fiscal Year
2019-20. The Board will accept public comment and consider adopting a
resolution amending the final budget of the Redevelopment Agency of Salt
Lake City for Fiscal Year 2019-20. Budget amendments happen several times
each year to reflect adjustments in the Redevelopment Agency's budget,
including proposed project additions and modifications. This proposed
amendment includes allocating funding to the new 650 South Main TRAX
Station, among other changes, and reallocate funds for the Station Center
project, among other changes. View Attachments
There were no public comments .
Director Luke moved and Director Rogers seconded to adopt Resolution
R-21-2019 amending the final budget of the RDA for Fiscal Year 2019-2020
(Budget Amendment No . 1) , which motion carried, all directors present
voted aye .
F. (TENTATIVE) CLOSED 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 2 : 07 p.m.
Redevelopment Agency Chair
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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
November 12, 2019 .
clm
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