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09/12/2017 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, SEPTEMBER 12, 2017 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, September 12, 2017 at 1 : 05 p.m. in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Lisa Adams, Derek Kitchen, Erin Mendenhall, James Rogers, Charlie Luke, Stan Penfold, and Andrew Johnston. Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Patrick Leary, Mayor' s Chief of Staff; Katherine Lewis, Senior City Attorney; David Litvack, Mayor' s Deputy Chief of Staff; Lara Fritts, Economic Development Director; Danny Walz, Redevelopment Agency Chief Operating Officer; Benjamin Luedtke, Council Office Policy Analyst; Ed Butterfield, Redevelopment Agency (RDA) Senior Project Manager; Kort Utley, RDA Senior Project Manager; Benjamin Davis, RDA Project Manager; John Vuyk, Budget Director; Cara Lindsley, RDA Project Coordinator; Jill Wilkerson-Smith, RDA Project Manager, Tammy Hunsaker, RDA Project Manager; Makayla Hardy, Deputy City Recorder; and Cindi Mansell, City Recorder. Director Adams presided at and conducted the meeting. The meeting was called to order at 1 : 05 p.m. A. 1:0 5:3 9 PM GENERAL COMMENTS TO THE BOARD George Chapman spoke regarding criminal activity near the homeless shelter on Rio Grande Street, the Rio Grande Street closure and the impacts to the RDA Depot District. He also encouraged the Council to negotiate with Representative Greg Hughes to get "Healthy Utah" passed. Bernie Hart spoke regarding the new Tai Chi program near the Road Home and expressed concerns regarding the number of homeless treatment beds currently unavailable . B. REDEVELOPMENT AGENCY BUSINESS #1 . 1:11:46 PM Director Kitchen moved and Director Mendenhall seconded to approve the minutes of the July 25, 2017 Redevelopment Agency meeting. Director Mendenhall expressed concern the minutes did not adequately encompass the sentiments and statements involved in the Public Market discussion. (Approval of the minutes was delayed until they could be reviewed/revised as requested. ) #2 . 1:15:07 PM REDEVELOPMENT AGENCY (RDA) CAPITAL IMPROVEMENT PROJECTS (CIP) BRIEFING. Discuss the Mayor's proposed Fiscal Year 2018 17 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, SEPTEMBER 12, 2017 RDA capital improvement projects, which typically involve the construction, purchase or redevelopment of buildings, infrastructure or public spaces. Generally, projects have a useful life of five or more years and cost $50, 000 or more. View Attachments Danny Walz, Mary Beth Thompson, and Benjamin Luedtke briefed the Board with attachments . Discussion was held regarding the Downtown Placemaking Incentive Program, housing in the Central Business District (CBD) , CIP funding, revolving loan fund, project specific area housing, bond potential for Capital Investments, timeline on bond information from Finance, and a potential payback mechanism with catalytic projects . Director Penfold expressed his desire to see continued support for the Citywide revolving loan fund. Directors requested the following items from Staff: • Determine how the Placemaking Program would be conducted in conjunction with the Downtown Alliance/Chamber and how it tied into the Cultural Core. • Policy conversation regarding affordable housing in the CBD, including: o Using limited resources from the City to support market rate housing; and o Three and four bedroom unit development (family housing) . • Update on the bond conversation at the next RDA meeting. • Look at two potential options with catalytic projects : o Program Income Revenue to prioritize catalytic project areas; and o General fund bonding authority for catalytic projects with a payback plan. #3. 1:32 :46 PM TAX INCREMENT (TI) REIMBURSEMENT POLICY. Briefing on the TI Reimbursement Policy items related to the Single-Property Owner Retention Tool . The Board adopted the TI Reimbursement Policy in June 2017. View Attachments Danny Walz, Katie Lewis, Jennifer Bruno, and Tammy Hunsaker briefed the Board with attachments . Discussion was held regarding third-party financial verification, potential litigation issues, approval/denial options for the Board, application review uniformity, confidential financial housing documents, previous costs of outside review, public disclosure of projects before presentation to the Board/property owner confidentiality, potential tiered increment participation, transparency, Salt Lake City business recruitment, revenue return for high paying jobs, Staff capacity for projects, company incentivized housing, problems Salt Lake County faced with tax increment, investment projects timeline, 17 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, SEPTEMBER 12 , 2017 clarifying metrics, future jobs brought by Northwest Quadrant, reimbursement agreement set-up, legal obligation loopholes/similar situation in Sugar House, and final selection communication requirements . Unanimous Straw Polls were conducted in support of: • Using a third-party verification in analyzing the Tax Increment Reimbursement Program application at the appropriate time in all cases . • Amending the existing policy and all supporting materials to make it clear that final approval authority for any tax increment reimbursement proposal (including single-property Community Reinvestment Areas (CRAs) ) rests with the Board. • Clarifying the terms of the requirement for a single-property CRA deal and discuss how the local business meets the minimum $12 million in capital expenditures . • Supporting the Staff' s proposed limit to four projects per year with the ability for RDA Staff to come back to the Council if they wanted to seek additional projects . • Having a standard "base" metrics that should be tracked regardless of project and invite the RDA Staff back to discuss which metrics might be common to all projects . • Having Staff track projects for a period of time and have a follow- up discussion in a year to determine if there needed to be a policy clarification. • Requiring in policy, specific compliance standards beyond self- reporting that companies must meet to receive annual tax increment reimbursements . • The RDA Staff proposal in the flow chart. See Flowchart • Having Staff return with a recommendation for a sliding scale of the assumed/starting point for City participation with tax increment. • Explicitly linking via policy, reporting requirements and annual disbursement of tax increment, rather than relying on Administrative Policy. • Including the practice of creating a public document describing the potential benefits and cautions to each project in policy, so that the expectations were clear and applied consistently throughout the years . • Including the flowchart as an attachment to the policy. • Exploring (with RDA Staff) how to communicate details of single- property CRA projects to the public, specifically to highlight how the dollar amount is proportional to the benefit, and how the "but for" test is covered, and include the communication plan in the policy. 17 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, SEPTEMBER 12, 2017 Director Penfold encouraged Staff/Administration to continue to look for projects that double down on being green and efficient and encourage investment in. Directors requested the following item from Staff: • Provide information on how to better capture and incentivize housing and to explore other cities that may have accomplished this. #4 . LAND DISPOTION PROCEEDS POLICY. Briefing on a draft resolution for a Real Property Disposition Proceeds Policy, which would set guidelines for the utilization of proceeds subject to the budget appropriation process. View Attachments Item not held. #5. 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. #6. 2 :35:39 PM REPORT AND ANNOUNCEMENTS FROM 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. Danny Walz updated the Board on the following: • Salt Lake City (SLC) was chosen for the Daniel Rose Land Use Fellowship Program. He said this was an opportunity for SLC to work with other cities to get peer input and tap into Urban Land Institute and National League of Cities resources . He said SLC chose the topic of Addressing Regulatory Barriers in Residential Zoning Districts to Increase Housing Choice and Affordability and a series of conferences would be held throughout the year as well as having a conference in SLC from March 19-March 22, 2018 . He said all costs and travel were covered by the program. • Follow up on State Street inquiries . Mr. Walz said RDA was compiling a list of other cities and their streets that would be similar to what Salt Lake was trying to do on State Street. He said RDA would be looking at that and what the priorities were in terms of their relation to State Street. He said Staff would come back after the first of 2018 to see if the Board wanted to schedule field trips to 17 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, SEPTEMBER 12, 2017 similar areas . #7 . REPORT OF THE CHAIR AND VICE CHAIR. The Chair may review the minutes of a previous Board meeting. Item not held. C. WRITTEN BRIEFING #1 . 2 :38 :53 PM WRITTEN BRIEFING REGARDING THE ARTIST SELECTION PROCESS AND TIMELINE FOR THE REGENT STREET PUBLIC ART PROJECT. View Attachments Written Briefing Only. D. CONSENT #1 . 2 :39:09 PM INTERVIEW DARIN MANO PRIOR TO CONSIDERATION OF HIS APPOINTMENT TO THE REDEVELOPMENT ADVISORY COMMITTEE (RAC) FOR A TERM EXTENDING THROUGH September 6, 2021 . View Attachments The Board unanimously approved the appointment of Darin Mano to the Redevelopment Advisory Committee (RAC) for a term extending through September 6, 2021 . (I 17-25) The meeting adjourned at 2 : 41 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 September 12, 2017 . mh 17 - 5