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HomeMy WebLinkAbout10/09/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, October 9, 2018 in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall, Amy Fowler, Charlie Luke, Chris Wharton, and Andrew Johnston. Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; David Litvack, Mayor' s Deputy Chief of Staff; Danny Walz, RDA Chief Operating Officer; Jill Wilkerson-Smith, RDA Deputy Chief Operating Officer; Margaret Plane, City Attorney; Katherine Lewis, Senior City Attorney; Jaysen Oldroyd, Senior City Attorney; John Delaney, Senior City Attorney; Lara Fritts, Economic Development Director; Cara Lindsley, RDA Project Manager; J. P. Goates, RDA Project Manager; Tammy Hunsaker, RDA Project Manager; Corinne Piazza, RDA Project Coordinator; Benjamin Luedtke, Council Public Policy Analyst; Jonathan Larsen, Transportation Director; and Cindi Mansell, City Recorder. Guests in Attendance : Siobhan Locke, The Langdon Group; and Chris Parker, Downtown SLC B LLC . Director Kitchen presided at and conducted the meeting. The meeting was called to order at 2 : 04 p.m. A. GENERAL COMMENTS TO THE BOARD None . B. PUBLIC HEARINGS None. C. REDEVELOPMENT AGENCY BUSINESS #1 . 2:05:06 PM Approval of Minutes . Director Fowler moved and Director Mendenhall seconded to approve the minutes of the Redevelopment Agency Board meetings held Tuesday, August 21, s018 and September 11, 2018, which motion carried, all directors voted aye. View Minutes CM 18-6) #2 . 2:05:37 PM Block 67 Facilitated Stakeholder Process Update. The Board received a briefing about the facilitation process for the proposed large-scale mixed-use development project on Block 67, a City block bounded by 100 South, 200 South, 200 West and 300 West. The Board requested the RDA facilitate discussions between the developers (The 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 Ritchie Group) , Salt Lake County, and the Japanese-American Community about how to mitigate potential impacts of the project on adjacent properties. View Attachments Danny Walz, Corinne Piazza, Jill Wilkerson-Smith, and Siobhan Locke briefed the Board with attachments . Ms . Piazza provided background on a recent meeting conducted with all parties seeking long and short-term goals, prioritization, and responsibility to carry out those tasks . Ms . Locke said stakeholder interviews at the beginning indicated the need for information sharing. She said Staff would return in November with a full report of items to be addressed with the Community Reinvestment Area (CRA) process, clear and shared paths forward, including due diligence, feasibility, next steps, etc. Ms . Piazza discussed items that were possible to achieve in the short-term as well as items such as place making that might take additional time. Discussion followed regarding commitment by the developer, level of definition, funding opportunities, potential for visioning and design process, future reimbursement, and other opportunities to honor the adjacent culture . Mr. Walz said ultimately, decisions would be made by the Board as to how to proceed with the project area (whether those involved felt comfortable enough was being done to provide the desired level of respect) . He said there would be various steps coming forward for Board consideration. Director Kitchen said the recently adopted Downtown Master Plan did not include any reference to the Japanese/Japantown culture . He suggested the City Council consider a legislative update to include that reference. A unanimous Straw Poll was conducted in approval of having a Council conversation to update the Downtown Master Plan to include Japantown as a cultural asset. #3. 2:25:43 PM RDA Capital Projects . The Board received a briefing about the Mayor's proposed Fiscal Year 2018-19 RDA capital projects which typically involve the construction, purchase or renovation of buildings, parks, streets or other physical structures. Generally, projects have a useful life of five or more years and cost $50, 000 or more. View Attachments Danny Walz and Benjamin Luedtke briefed the Board with attachments . Mr. Luedtke provided a budget update on RDA Capital Projects . He discussed factors affecting decreased available funding for capital projects . He said there were five projects, two of which were legally required. He referenced the general policy questions as well as policy questions specific to projects . Mr. Walz discussed details on the individual project areas, proposed projects, and funding. 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 Director Johnston said consideration should be given to the blocks between 7th-loth West in the North Temple Project Area. Director Fowler inquired as to potential bonding or seed money for 9-Line and State Street project areas . Mr. Walz said bonding was tricky/more of a difficult process (projects must be identified early) . Discussion followed regarding the Percent for Art Policy and the practice not being consistently reflected. Director Kitchen said the intent on project creation was not to just sit back and collect tax increment. He discussed the importance of making investments to enhance development and progress of these areas . Inquiry was raised regarding the RDA budget and working with the Finance Department to wrap up year-end fund and carryover balances . Mr. Walz said the intent was to have a budget amendment at the end of the year that would incorporate fund balances, carry over amounts, and finalizing use of those funds . Director Kitchen requested a written or formal update on the unallocated cash balances . Ms . Bruno said Finance and RDA Staff were working on this and intended to have it for the November discussion. Director Mendenhall inquired if, from a policy perspective, the Board could be assured they were presented with those unallocated cash balances going forward. Ms . Bruno said Staff could work with the Attorney' s Office . She said unallocated cash balances would not necessarily show on the Mayor' s budget. Further discussion followed regarding Trax stations/stops and associated costs . Director Rogers suggested other areas to identify or associated projects . Director Kitchen proposed Staff actively lay the groundwork with the Utah Transit Authority (UTA) in this regard and perhaps explore partnership/participation with a private developer. He said he wanted to see $100, 000 (more/less) directed to the Japantown project or area. Discussion followed regarding funding set aside for capital improvement projects, defining place making, and holding developers to this idea. Ms . Bruno said the Board had flexibility (like the General Fund Capital Improvement Plan) before it was adopted. Staff indicated they would consider financial options (i .e . hiring a consultant) . #4 . 2:55:03 PM Notice of Funding Availability (NOFA) for Affordable Housing Funding Allocations . The Board received a briefing about, and considered adopting, a resolution approving a notice of funding availability for affordable housing funding allocations. View Attachments Danny Walz, Tammy Hunsaker, and J.P. Goates briefed the Board with attachments and a PowerPoint presentation. Ms . Hunsaker provided background on funding requests, funding recommendations, recommended 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 project locations, financing plans, and community and funding impacts . She said of the $10 million available, the Finance Committee recommended that $7, 100, 000 be allocated to projects . She said due to a lack of applications for projects located in high opportunity areas, the Committee recommended reissuance of the NOFA on an open-ended basis to solicit applications for projects located within high opportunity neighborhoods; and seeking opportunities for property acquisition in high opportunity neighborhoods . She said Staff analyzed factors for not receiving applications from the high opportunity areas . She said timing was not ideal . Mr. Goates addressed GIS information relative to high opportunity areas, parcel size, and zoning districts . He said the vast majority were zoned as single family with few exceptions and the commercial properties being smaller lots (different zone, parcel size, and characteristic of those areas) . Director Mendenhall questioned inclusion of The Exchange in these funding award recommendations ($1, 600, 000) and the association with the next agenda item requesting approval of a loan term sheet in the amount of $1, 400, 000 for the same property. Ms . Hunsaker said the developer applied for $1, 600, 000 through the NOFA but due to increased construction and financing costs they requested an additional $1, 400, 000 (making the total request $3, 000, 000) . She said the RDA Finance Committee made the recommendation to fund the $1, 600, 000 through the NOFA from the high opportunity zone area funding. She said that decision was made based on the site being located with one-half mile of a high opportunity area as well as offering enhanced mobility and recommended consideration as a high opportunity location. Director Mendenhall expressed concern with taking the funding from high opportunity areas . She said she wanted to wait and provide developers additional opportunity to come forward and apply. Director Kitchen requested a map of the City, illustrating locations of the high opportunity areas . Discussion followed regarding concerns with taking funding from high opportunity areas and why the Committee would deviate from the original funding mechanisms . Director Fowler said she wanted to see where the projects were in reference to the high opportunity areas (overlay) . Mr. Walz said that was driven by the fact that more requests were received than available funding. He said when considering what was included in a high opportunity area, the project met the intent. He said it was difficult to find projects of density and size in these areas and that was a consideration also. Staff provided details (community impacts) on each of the four projects provided for consideration and noted each had proximity to Trax: The Exchange, 255 State, SPARK! , and Book Cliffs . Director Rogers moved and Director Johnston seconded to approve Resolution R-31-2018 approving Citywide Affordable Housing Project Funding Allocations (Exhibit B/removing Exchange Place to be considered 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 later on the agenda) , and to include a six-month timeline to provide time for consideration of additional NOFA high opportunity area projects, which motion carried, all directors voted aye. #5 . 3:22:44 PM Approval of Loan Term Sheet for property located at 340 East 400 South. The Board received a briefing about, and considered adopting, a resolution approving a $1 . 4 million loan request from Downtown SLC B LLC for a citywide affordable housing project located at 340 East 400 South. The Board set aside $1 . 4 million in December 2017 contingent upon approval of the application and review process. View Attachments Danny Walz, Tammy Hunsaker, J. P. Goates, and Chris Parker briefed the Board with attachments and a PowerPoint presentation. Ms . Hunsaker provided details of the project and said it consisted of new construction of two mixed-use buildings . She said the total funding request was now $3, 000, 000, with the additional gap being created by increased construction and financing costs . Mr. Goates said the RDA Finance Committee reviewed the financing request and recommended approval of the funding for the applicant' s $1, 400, 000 loan request (previously set aside in 2017 and not part of the Revolving Loan Fund) . He said concurrently, the Committee reviewed the $1, 600, 000 request through the NOFA; and now recommended approval of both funding requests ($3, 000, 000 total) . He said the Committee approved the terms outlined without any additional conditions or contingencies . Director Mendenhall asked the applicant about building height opportunity (Building "A") . Mr. Parker said the building was as high as the zone allowed but they were going before the Planning Commission to request a five-foot variance above what the zone allowed. He discussed the goal to make the project attractive and desire to provide high-end units that included affordability. He said the height of Building "B" was driven by construction costs . Director Rogers inquired as to the difference from this proposal versus policy and what differences were being contemplated (project details, terms, financing) . Ms . Hunsaker said this loan request deviated from the RDA Loan Program Policy in several ways : interest rate at 2%, 35-year term, and cash repayment loan based on available cash flow (which the project pro-forma indicated would be available) . Discussion followed regarding timing of the project. Ms . Hunsaker said Building "B" was micro-units (60% of the units were affordable) and Building "A" was more traditional (20% affordable units) . Director Rogers moved and Director Luke seconded to approve Resolution R-32-2018 approving the Term Sheet in the updated funding 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 amount of $3, 000, 000 million from Agency Loan Funds to Downtown SLC B LLC using $1, 600,000 from the RDA Revolving Loan Fund and the $1,400,000 previously set aside in 2017 for a Citywide Affordable Housing Project located at 340 East 400 South, which motion carried, all directors voted aye . #6 . 3:32:38 PM State Street Community Reinvestment Area Follow-up Discussion. The Board received a follow-up discussion about the State Street Community Reinvestment Area (CRA) to clarify the extent of bicycle and mobility safety addressed in the current CRA and Life on State Plans. View Attachments Danny Walz, Susan Lundmark, and Jonathan Larsen briefed the Board with attachments . Ms . Lundmark outlined areas in the State Street CRA Plan where mobility had been addressed. She said the adopted Downtown Plan and Central City Community Plan, Life on State implementation Plan, and State Street Plan were all utilized information sources from which to build upon. Mr. Larsen discussed the Life on State Plan and higher level vision created approximately ten years ago. He said the 6th to 9th South areas were considered as to what could be implemented in a short- time period. He said Staff was limited as compared to what they could do with a City-owned street and discussed ideas for repurposing a traffic lane, other options, prioritizing based on expertise and context, and discussion with business owners . Director Wharton said concerns were expressed at a former meeting regarding offering a more centric role in the State Street CRA. Ms . Bruno said there were options besides amending the plan (would restart the clock) but a quicker/less onerous method could involve a request to Administration. She said there could be a motion in a Council setting to amend the Bike/Pedestrian Master Plan (which were what the CRA references and the technical document updated in terms of the Utah Department of Transportation (UDOT) ) . She said Staff could work with Planning and Transportation to make the language clear. A unanimous Straw Poll was conducted to amend the Bike/Pedestrian Master Plan to include a Legislative Intent to work with UDOT on the State Street CRA to find projects appropriate to encourage biking in addition to pedestrian access. #7 . 3 : 38 : 28 PM Report and Announcements from the Executive Director. Report of the Executive Director, including a review information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input. Item not held. 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 #8. 3:38:37 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 scheduling items . Mr. Walz provided an update on several projects . #9. Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Director Kitchen requested Staff provide quarterly written updates on projects/status in the pipeline . D. 3:45:13 PM WRITTEN BRIEFINGS #1. 1500 West North Temple Tier 1 Developer Selection Report. The Board received a written briefing of the developer selection report for 2. 07-acres of Tier 1 property located at 1500 West North Temple in the North Temple Urban Renewal Area . View Attachments Written Briefing Only. #2 . 255 South State Street Tier 1 Developer Selection Report. The Board received a written briefing of the developer selection report for 1 . 12 acres of Tier 1 property located at 255 South State Street in the Central Business District project area. View Attachments Written Briefing Only. E. CONSENT #1 . 3:45:20 PM Set Date - Budget Amendment No. 2 for Fiscal Year 2018-19 . The Board scheduled the date of Tuesday, November 27, 2018 at 2 p.m. to accept public comment and consider adopting a resolution amending the RDA budget for Fiscal Year 2018-19 including reallocating Budget Amendment No. 1 funding. Director Mendenhall moved and Director Luke seconded to approve the consent agenda as proposed, which motion carried, all directors voted aye . F. CLOSED EXECUTIVE SESSION. The Board considered a motion to enter into Closed Session, in keeping with Utah Code §52-4-205 for any allowed purpose . Director Fowler moved and Director Johnston seconded to adjourn into Closed Executive Session to discuss pending or reasonably imminent 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, OCTOBER 9, 2018 litigation pursuant to 52-4-205 (1) (c) , Utah Open and Public Meetings Law; the purchase, exchange, or lease of real property pursuant to 52- 4-205 (1) (d) ; and for Attorney-Client matters that are privileged pursuant to Utah Code 78B-1-137 . A roll call vote was taken; Directors Fowler, Johnston, Kitchen, Luke, Mendenhall, Wharton voted aye. Director Rogers was not present when the vote was taken. See File M 18-7 for Sworn Statement. View Sworn Statement In Attendance: Directors Mendenhall, Fowler, Johnston, Kitchen, Luke, Wharton, and Rogers . Others in Attendance: Cindy Gust-Jenson, Jennifer Bruno, Margaret Plane, David Litvack, Lara Fritts, Danny Walz, Jill Wilkerson-Smith, Benjamin Luedtke, Jaysen Oldroyd, John Delaney, Katherine Lewis, and Cindi Mansell . The Closed Session adjourned at 4 : 48 p.m. The meeting adjourned at 4 : 48 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 October 9, 2018 . clm 18 - 8