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07/20/2021 - Meeting MaterialsBoard of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA July 20,2021 Tuesday 2:00 PM Council Work Room 451 South State Street Room 326 Salt Lake City,UT 84111 SLCRDA.com Please enter the City &County Building through the ADA ramp on the east side of the building This is a discussion among RDA Board Directors and select presenters.The public is welcome to listen, unless otherwise specified as a public comment period.Items scheduled may be moved and /or discussed during a different portion of the Meeting based on circumstance or availability of speakers.Item start times and durations are approximate and are subject to change at the Chair’s discretion. Generated:15:29:17 After a year of conducting online public meetings,the Redevelopment Agency (RDA)is coming back with a hybrid meeting approach. This approach will allow people who are joining either in-person or remotely via Webex to fully participate in the Council Meetings. Public Comments:The public will be able to provide comments in-person in Room 326 of the City and County Building or online through Webex.For more information,including Webex connection information,please visit www.slc.gov/council/virtual-meetings.(A phone line will also be available for people whose only option is to call in.) What to expect:The hybrid format allows in-person participation and remains mindful of existing COVID-19 protocols and gathering limits.A maximum of 24 people,including Board members and City staff,will be permitted in a meeting room.If the capacity has been reached in the primary meeting room,overflow space will be provided. We are following CDC guidelines to prevent and reduce transmission of COVID-19 and maintain healthy business operations and work environments.Per CDC guidelines: •Face coverings are strongly recommended for all,and are required for those who are not fully vaccinated. •Social distancing will be maintained. Please note -All other City offices within the City &County Building remain closed to the public.Individuals are required to make an appointment with the department/division they require service from.Visit www.slc.gov/city-directory for a list of departments and divisions. A.Comments: 1.General Comments to the Board ~2:00 p.m. 5 min The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to RDA offices,451 South State Street,Suite 118,P.O. Box 145455,Salt Lake City,UT.84114-5455. 2.Comments to the RDA Board of Directors.(Comments are taken on any item not scheduled for a public Hearing,as well as on any other RDA Business.Comments are limited to two minutes.) B.Public Hearing -individuals may speak to the Board once per public hearing topic for two minutes,however written comments are always accepted: NONE. C.Redevelopment Agency Business -The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Approval of Minutes ~2:05 p.m. 5 min. The Board will approve the meeting minutes of Tuesday,May 19,2020. 2.Informational:Station Center Innovation District Concept ~2:10 p.m. 30 min. The Board will receive a briefing about the Station Center Innovation District concept. Station Center is located between 500 to 600 West and 200 to 400 South in the Depot District Project Area.The Innovation District concept would be anchored by the University of Utah for technology development,from research to start-up incubators to mature profitable businesses.As part of the briefing,the Board will also receive a pre- disposition report that includes preliminary information prior to marketing the property. 3.Resolution:Fiscal Year 2021-22 Affordable Housing Development Funding Priorities Follow-up ~2:40 p.m. 20 min. The Board will continue consideration of RDA housing development funding priorities for Fiscal Year 2021-22,and may consider adopting a resolution formalizing these priorities to provide policy direction for RDA. 4.Resolution:Utah Performing Arts Center Interlocal Agreement ~3:00 p.m. 5 min. The Board will receive a briefing about,and will consider adopting,a resolution ratifying execution of a second amendment to an interlocal agreement between Salt Lake City,the Redevelopment Agency (RDA),and the Utah Performing Arts Center Agency (UPACA), for operation of the George S.and Delores Dore Eccles Theater. 5.Motion:Meeting Remotely Without an Anchor Location TENTATIVE The Board will consider a motion to ratify the Chair’s determination to continue meeting remotely and without an anchor location due to the health and safety of the people who may be in attendance,and considering the continued closure of the City and County Building to the public. 6.Report and Announcements from the Executive Director TENTATIVE 5 min. 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.Report and Announcements from RDA Staff TENTATIVE 5 min. 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; •Project Milestones; •Community Updates;and •Scheduling Items. D.Written Briefings –the following briefings are informational in nature and require no action of the Board.Additional information can be provided to the Board upon request: NONE. E.Consent –the following items are listed for consideration by the Board and can be discussed individually upon request.A motion to approve the consent agenda is approving all of the following items: NONE. F.Closed Session The Board will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: 1.discussion of the character,professional competence,or physical or mental health of an individual; 2.strategy sessions to discuss pending or reasonably imminent litigation; 3.strategy sessions to discuss the purchase,exchange,or lease of real property: (i)disclose the appraisal or estimated value of the property under consideration;or (ii)prevent the public body from completing the transaction on the best possible terms; 4.strategy sessions to discuss the sale of real property,including any form of a water right or water shares,if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration; or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale;and< (iii)the terms of the sale are publicly disclosed before the public body approves the sale 5.discussion regarding deployment of security personnel,devices,or systems;and 6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. G.Adjournment CERTIFICATE OF POSTING On or before 5:00 p.m.on _____________________,the undersigned,duly appointed City Recorder,does hereby certify that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda,including but not limited to adoption,rejection,amendment,addition of conditions and variations of options discussed. The City &County Building is an accessible facility.People with disabilities may make requests for reasonable accommodation,which may include alternate formats,interpreters,and other auxiliary aids and services.Please make requests at least two business days in advance.To make a request,please contact the City Council Office at council.comments@slcgov.com,801-535-7600,or relay service 711. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 19, 2020 20 - 1 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, May 19, 2020 in an electronic meeting pursuant to the Salt Lake City Emergency Proclamation. Virtual Attendance: Directors Amy Fowler, Daniel Dugan, Chris Wharton, Analia Valdemoros, Andrew Johnston, James Rogers, and Darin Mano. Staff in Virtual Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Mayor Mendenhall; Rachel Otto, Mayor’s Chief of Staff, Danny Walz, RDA Chief Operating Officer; Katherine Lewis, City Attorney; Cindy Lou Trishman, Council Administrative Assistant; DeeDee Robinson, Deputy City Recorder; and Scott Crandall, Deputy City Recorder. Guests in Attendance: Director Fowler presided at and conducted the meeting. The meeting was called to order at 2:05 p.m. 2:05:56 PM A. GENERAL COMMENTS TO THE BOARD 2:08:48 PM 3:08:18 PM Jason Seaton inquired if there were any plans for rehabilitation where Folsom joined the Jordan River and in the North Temple area (including the river). He suggested the City proactively adjust/fix the river wherever rehabilitation was being done next to it. Danny Walz said the City did not own the easement to make that happen regarding the Folsom project (not connecting to the Jordan River/west of 1000 West) and was not aware of what the status was to secure the easement. He added that an update might be presented to the Council (on the Folsom project) where more information would be available. B. PUBLIC HEARINGS None. C. REDEVELOPMENT AGENCY BUSINESS #1. 2:10:19 PM Approval of Minutes. The Board will approve the meeting minutes of Tuesday, April 14, 2020. View Minutes Director Johnston moved and Director Rogers seconded to approve the minutes, which motion carried, all directors voted aye (roll call). MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 19, 2020 20 - 2 #2. 2:11:00 PM Overview of the Redevelopment Agency Budget for Fiscal Year 2020-2021. The Board will receive a general overview of the proposed budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2020-21. The Board will continue to discuss the Mayor’s Recommended Budget over the next several weeks and will have public hearings on Tuesday May 19, 2020 and Tuesday, June 2, 2020 at 7:00 pm. The Board expects to adopt the budget in mid-June. View Attachments Danny Walz and Jennifer Bruno briefed the Board with attachments. Information was provided regarding: • Highlights of the Budget – o A total of 10 loans closed (just over $29 M) o Of the 10 loans – one was primarily commercial and the other nine were either primarily housing or mixed-use with housing as a primary component o Preservation of two historic buildings - Jackson Apartments and Cramer House o Detailed breakdown of leveraging (agency contribution vs. non- agency contribution for each of the 10 loans) o Loans that funded housing ($25.6 M in approved loans for housing projects – 811 total units, 691 rentals, 490 affordable, and 120 for-sale condos) o Tax increment reimbursement agreements - $15 M for Block 67 and $28M for NWQ, LLC o Projects completed over the past year (“Pages of Salt” unveiling, Infinite Scale, Orchid Dynasty in Granary District, Fairpark market study, etc.), • Budget Breakdown – o Tax Increment Revenue Trends - (Tax year 2013-2020) including tax increment received by RDA and projections for 2020 o Summarized breakdown of the budget (projection of $44,347,755 in new revenues) o Project allocations ($7,759,884 available for existing or new projects) • Key Changes - o Overall tax increment projection was 2% over FY20 o $250,000 for Commercial Development Loan Program o $1.5 M for Eccles Debt Services Reserve Payment o $250,000 for Capital Expenditure – Japantown (visioning strategy underway) o West Capitol Hill & West Temple Gateway (these project areas had expired, still have balance of funds/interest earnings to fund administrative fees) o $389,000 for 100 South Utilities (Depot District) o $400,000 for Adaptive Reuse Program (Granary District) o $270,000 for Catalytic Project (North Temple; Folsom MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 19, 2020 20 - 3 Trail/Corridor, loans within the project area, and potential property acquisitions) o Block 70 being subsidized by Community Block Development (CBD) contributions o $500,000 (Project Program Income Fund – PIF) for Project Area seed funds (split between the 9 Line & State Street project areas) o Transferring of Gallivan Staff to RDA (removing Public Services from maintenance/programming). Further discussion was held regarding details on the transfer of staff from Public Services to RDA for Gallivan Plaza, coordination with Rocky Mountain Power for underground utility lines in the City (including impacts to RDA owned property), the deferment of loan payments (and possible effects on incoming revenue for future fiscal years), history/intents regarding North Temple Viaduct Bond Payments, whether the Council wanted to keep the Housing Trust Fund (HTF) intact (placing it into RDA) or have the funds stay in Housing & Neighborhoods Department, Director Rogers inquired if a budget amendment would be needed for the Eccles Theater/Salt Lake County due to the loss of revenue from venues. Mr. Walz said he believed it would be necessary between losses from the Eccles Theater and Gallivan Plaza and were waiting to see how the County proposed to bring their facilities back online. Ms. Bruno said from the Eccles Theater perspective, the operating agreement the City made with the County required from the outset that there be an on- going, one-year operating reserve in addition to the capital reserve. Director Fowler requested an update on status of funds transferred to RDA for the HTF (where it went, how the program was set up, etc.). Mr. Walz said $1 M was allocated and the rest was still being offered on a first come, first served basis and conversations were ongoing with developers who gauged interest, but as of now the only loan approved was the Diamond Rail loan ($1 M). Councilmember Fowler said she would be supportive of transferring the funds into the HTF. Director Valdemoros requested more information regarding CARES Act funding the City might get for housing and if the City needed a portion of the HTF funds in order to receive CARES Act funds. (How much would be received from the Federal government and how much of the City’s money would be needed). Director Fowler thanked the RDA and said she was impressed with the amount of work Mr. Walz and his Staff completed (over 400 affordable housing units over the last one-two years totaling $23 M). MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 19, 2020 20 - 4 #3. 3:10:29 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. Mayor Mendenhall praised Danny Walz and RDA Staff on their work and echoed the kudos from Director Fowler regarding the gravity of work the team was able to accomplish each year and offered kudos to the Board for making it possible. #4. 3:11:03 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. Danny Walz said he would pass on the praise given by the Board and Mayor to his Staff as they also deserved credit. #5. 3:11:23 PM Report of the Chair and Vice Chair. Councilmember Valdemoros thanked/praised RDA Staff for their clear, concise work. D. WRITTEN BRIEFINGS None. E. CONSENT None. F. 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 RDA meeting adjourned at 3:12 p.m. The meeting reconvened at 7:20 p.m. 7:20:27 PM to conduct additional business. Director Fowler moved and Director Dugan seconded to adjourn as the Local Building Authority and reconvene as the Redevelopment Agency, all members voted aye (roll call). Director Fowler presided at and conducted the meeting. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 19, 2020 20 - 5 OPENING CEREMONY #1. 7:16:31 PM Pledge of Allegiance (A moment of silence was held while the American Flag/Anthem was displayed on the video screen) #2. 7:17:20 PM Welcome and Review of Standards of Conduct. Note: Opening Ceremonies were held as part of the May 19, 2020 combined Local Building Authority, Redevelopment Agency, and City Council Formal agenda. PUBLIC HEARINGS #1. 7:21:37 PM Accept public comment and consider approving a resolution adopting the final budget for the Redevelopment Agency of Salt Lake City, Utah (RDA) for Fiscal Year 2019-2020. View Attachments 7:22:03 PM George Chapman urged the board to adopt a policy of not allowing additional loans to projects like Richmond Flats because it negatively impacted a potential major north/south bicycle route in the works for over 10 years on 1300 East and suggested any further decisions should allow for appropriate public engagement. Director Wharton moved and Director Valdemoros seconded to continue the public hearing to June 2, 2020, which motion carried, all directors voted aye (roll call). Director Wharton moved and Director Valdemoros to adjourn as the RDA Board and reconvene as the City Council, which motion carried, all directors voted aye (roll call). The meeting adjourned at 7:25 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). MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 19, 2020 20 - 6 This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meetings (afternoon and evening) held May 19, 2020. Sc/dr SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY DATE: May 21, 2021 PREPARED BY: Ashley Ogden and Cara Lindsley RE: Station Center Innovation District Concept and Pre-Disposition Report REQUESTED ACTION: Briefing on the Administration’s plans for disposition of property located within the bounds of 500 – 600 West and 200 – 400 South. POLICY ITEM: Depot District real property disposition. BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: For many years, the Redevelopment Agency (RDA) has been working toward the development of what is referred to as the Station Center area, an assemblage of approximately 10.5 acres located between 500 – 600 West and 200 – 400 South in the Depot District project area. The Agency currently owns approximately nine acres. RDA plans have long called for Station Center, which is adjacent to the UTA Intermodal Hub, to become Utah’s premier model of successful transit-oriented development. This vision includes mixed-use development that maximizes permitted densities and contains affordable commercial and residential spaces and active street-level uses, as well as the extension of the City grid to create new transportation connections that prioritize the pedestrian and bicyclist over the car. New buildings will also complement the character of the SLC Warehouse National Historic District and encourage the adaptive reuse of remaining historic structures, including the RDA-owned Salt Lake Mattress Company building. While the Agency has undertaken significant physical planning efforts and has an ambitious vision for the project, Staff recognizes the unique opportunity to do something especially impactful with Station Center. In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate Administration engaged in discussions on the establishment of a downtown U-of-U presence. With the Mayor’s support, both parties commissioned a study by HR&A Advisors that evaluates the feasibility of partnering to create a University-anchored Innovation District on the Station Center property. This memo is intended to provide the RDA Board of Directors (Board) with an overview of key components of the Station Center Innovation District project concept, which is based on findings from the partnership study. Please refer to Attachment A: Station Center Innovation District Development Proposal for a full project profile. Additionally, pursuant to the RDA’s Real Property Disposition Policy, the RDA shall submit a pre-disposition report to the Board prior to marketing the property that includes preliminary information on the proposed plans for disposition– please refer to Attachment B: Pre-disposition Report. ANALYSIS & ISSUES: Key takeaways of the proposed Station Center Innovation District project concept and disposition include the following: 1. Coordinated Development Approach: Last year, the RDA began to consider a master-development model for Station Center that would realize efficiencies related to 1) development of infrastructure improvements, 2) maintaining consistency with design guidelines, 3) carrying out cohesive land use planning and activation, and 4) establishing a coordinated plan for infrastructure maintenance funding. 2. Policy Alignment: A partnership with the U-of-U would support the Mayor’s vision for Tech Lake City, BioHive, and initiatives called for in Plan Salt Lake and the Downtown Master Plan. Plan Salt Lake (p. 39): • Maintain and grow Salt Lake City as the economic center of the region. • Support the economic growth of Downtown, including: o Innovation District in the Granary o Reactivate the Gateway o Develop Station Center o Expand Research Park in or near the downtown area • Support the growth of small businesses, entrepreneurship, and neighborhood business nodes. • Recruit corporate headquarters and major employers to locate in the City. • Improve existing and develop new relationships with economic development partners. Downtown Master Plan (p. 104-107): “The future of the Depot District is a dense urban neighborhood that provides a full range of housing options and is served by all modes of transit…the area could easily be the location of a major job center, such as an urban oriented technology center or research park.” 3. Partnership Opportunity: A partnership with the U-of-U represents an opportunity to elevate the RDA’s long-standing plans to implement a model transit-oriented development with a clustering of leading-edge anchor institutions, inventors, incubators and accelerators, and businesses at all levels in the life cycle ranging from start-ups to mature, growing firms, all in one place. 4. Leveraging of Resources: This partnership will allow for the leveraging of resources, including capitalization of the U-of-U’s strong reputation for being an institution of excellence in innovation, technology commercialization, and research to attract industry partners, developers, capital, and investors. 5. Community Benefit: In addition to the economic benefits that a University-anchored Innovation District is sure to bring to Salt Lake City, the RDA sees this as a unique opportunity to incorporate a high level of public benefit into one development project. Programming initiatives identified for the District include affordable housing and commercial spaces to mitigate risk of displacement from the City, opportunities for education and upward mobility through equitable access to U-of-U resources and spaces, a focus on community health programming, and implementation of sustainable development strategies that have not yet been embraced by the local development community on a widespread scale. 6. Long-term Involvement: The RDA would remain involved as a long-term and strategic partner, as defined through a partnership agreement, to ensure the success of the district and that public benefits are maximized. In addition, the City could maintain an active partnership in the governance and programming of the Innovation District. 7. Board’s Role: As the Administration negotiates the terms of a partnership, the Board’s role in the property disposition will include: a. Approval of any land discount over 10% of the as-is fair market value pursuant to the Real Property Disposition Policy. b. Allocation of any sales disposition proceeds pursuant to the Real Property Disposition Proceeds Policy. 8. Method of Disposition: Pursuant to the RDA Real Property Disposition Policy, the RDA may engage in an exclusively negotiated method of disposition with a “non-profit or governmental agency for a community development or public use.” While partnering with the University of Utah may technically include an exclusive negotiations method of disposition, the selection of ultimate development partners would be through competitive RFPs. This will allow the RDA and University to recognize the benefits of a partnership while still being inclusive and transparent in the selection of end users. 9. Disposition Structure: The U-of-U and RDA are currently working through the framework of a potential disposition and development structure. Discussions are in the preliminary stages and do not yet include a formal commitment from the parties to move forward with a partnership, specific terms, or legal agreements. Based on extensive evaluation of potential structures and current discussions with the U-of-U, a land sale structure appears to be most viable. 10. Infrastructure: A partnership with the U-of-U would fulfill the RDA’s long-standing plans for streetscape and infrastructure improvements. It has been anticipated that the RDA would need to use a portion of the property disposition proceeds to fund these infrastructure needs. Improvements include the extension of the City’s street grid with the construction of new mid-block streets, the reconstruction of 300 South into a “festival street” with community gathering space, and the upgrading of utilities to support denser development. 11. Land Sale Proceeds: A land sale would provide significant revenues to the RDA, providing the ability to target resources to other project areas such as North Temple, 9 Line, and State Street. PREVIOUS BOARD ACTION: • On June 3, 2014, the Salt Lake City Council adopted Ordinance No. 26 (2014), approving the street vacation of the outer edges of 300 South between 500 West and 600 West streets. • On May 12, 2015, the RDA Board approved the Station Center Infrastructure Improvements Schematic Design. • On March 15, 2016, the RDA Board approved the Station Center Infrastructure Improvements Design Development. • On May 24, 2016, the City Council adopted the Downtown Community Master Plan. • On March 20, 2018, the RDA Board approved land write-downs of the sales prices for Station Center Sites 1 and 3 in exchange for those developers constructing the portion of Infrastructure Improvements adjacent to their sites. • On January 15, 2019, the RDA Board held a policy discussion regarding potential strategies for maintaining public improvements for RDA projects. • On April 13, 2019, the RDA Board approved $8,962,119 in funding for the Station Center Infrastructure Improvements. • On September 24, 2019, Project Staff briefed the RDA Board on the current status of the Station Center infrastructure project and made the recommendation to fund ongoing maintenance of the new improvements via Business Improvement District, similar in structure to a Special Assessment Area. • On September 15, 2020, the RDA Board approved the use of $865,000 in funding to stabilize the RDA-owned Salt Lake Mattress Company building. A separate action approved the use of funds to exercise the RDA’s option to purchase property from Artspace City Center, LLC. • On November 10, 2020, Project Staff provided the RDA Board with an informational update about a revised shared-street design for 300 South and Woodbine Court and presented findings from a Special Assessment Area analysis for funding ongoing maintenance of infrastructure improvements. ATTACHMENTS: A. Station Center Innovation District Development Proposal B. Pre-Disposition Report Attachment A: STATION CENTER INNOVATION DISTRICT DEVELOPMENT PROPOSAL June 2021 2 PROJECT OVERVIEW: For many years, the Redevelopment Agency (RDA) has been working toward the development of what is referred to as the Station Center area, an assemblage of approximately 10.5 acres located between 500 – 600 West and 200 – 400 South in the Depot District project area. The Agency currently owns approximately nine acres and has options to purchase an additional 1.5 acres from Artspace City Center, LLC, and the State of Utah. RDA plans have long called for Station Center, which is adjacent to the UTA Intermodal Hub, to become Utah’s premier model of successful transit-oriented development. This vision includes mixed-use development that maximizes permitted densities and contains affordable commercial and residential spaces and active street-level uses, as well as the extension of the City grid to create new transportation connections that prioritize the pedestrian and bicyclist over the car. New buildings will also complement the character of the SLC Warehouse National Historic District and encourage the adaptive reuse of remaining historic structures, including the RDA-owned Salt Lake Mattress Company building. While the Agency has undertaken significant physical planning efforts and has an ambitious vision for the project, Staff recognizes the unique opportunity to do something especially impactful with Station Center. In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate Administration engaged in discussions on the establishment of a downtown University presence. With the Mayor’s support, both parties commissioned a study by HR&A Advisors that evaluates the feasibility of partnering to create a University-anchored Innovation District. This document outlines key components of the proposed Station Center Innovation District project, which would directly support initiatives called for in Plan Salt Lake and the Downtown Master Plan, as well as many other City goals and priorities: Plan Salt Lake (p. 39): • Maintain and grow Salt Lake City as the economic center of the region. • Support the economic growth of Downtown, including: o Innovation District in the Granary o Reactivate the Gateway o Develop Station Center o Expand Research Park in or near the downtown area • Support the growth of small businesses, entrepreneurship, and neighborhood business nodes. • Recruit corporate headquarters and major employers to locate in the City. • Improve existing and develop new relationships with economic development partners. Downtown Master Plan (p. 104-107): “The future of the Depot District is a dense urban neighborhood that provides a full range of housing options and is served by all modes of transit…the area could easily be the location of a major job center, such as an urban oriented technology center or research park.” INNOVATION DISTRICTS: Dense enclaves that merge the innovation and employment potential of research- oriented anchor institutions, high-growth firms, and tech and creative start-ups in well-designed, amenity-rich residential and commercial environments. – Brookings Institution 3 PROGRAMMING & PARTNERSHIP STUDY FINDINGS AND RECOMMENDATIONS: As mentioned above, the RDA partnered with the U-of-U to explore a programmatic approach and partnership strategy to support the development of a Station Center Innovation District. The following is a high-level summary of the findings and recommendations that came out of this three- part study: 1. STAKEHOLDER ENGAGEMENT: During August and September 2020, HR&A Advisors hosted 14 discussions with representatives from city, regional, and state government, various U-of-U programs, and many other local stakeholders who have a vested interest in the growth of Salt Lake City’s innovation ecosystem. Main takeaways include: • Concerns about on-the-ground safety dominate participants’ views of the site. • Housing in the Downtown area is currently inaccessible to a wide range of people whose participation is essential to a Station Center Innovation District. • Increased transit access and comfortable bike and pedestrian connections are needed to ensure that Station Center is well connected and accessible to all parts of Salt Lake City. • Biotech and health, both prescriptive and preventative, have been identified as potential anchor industries for Station Center. • There is a citywide shortage in lab, office, and community spaces necessary for a thriving innovation ecosystem, an issue with implications on talent and business attraction and retention. • Green/play space is highly desired throughout Salt Lake City, and especially within the Depot District. • Rio Grande Depot is currently seen as a barrier to development and will require more active programming. • The success of this project will be measured in large part by the extent to which it provides meaningful connections to the West Side (both physical and programmatic). STUDY COMPONENTS 1 Stakeholder Engagement 2 Innovation Asset Assessment 3 Programming & Partnerships Strategy 4 2. INNOVATION ASSET ASSESSMENT: Following the stakeholder engagement process and review of existing plans and resources, HR&A Advisors completed an innovation asset mapping exercise that resulted in a recommended set of programmatic drivers for a Station Center Innovation District: Life Sciences and Community Health. STRATEGIC OPPORTUNITIES: LIFE SCIENCES Biotechnology Research • Promote responsible and ethical innovation; • Advance research in genetics; • Use of robotics in medicine. Healthcare • Prevention of chronic illness and disease; • Advance access to health care education, including increasing diversity and equity in providers; • Explore social and behavioral sciences; • Emphasize need for balance between preventative/diagnostic care systems. Technology & Entrepreneurship • Expand capacity of technology and commercialization organizations; • Provide spaces for startups to settle after outgrowing incubator space; • Facilitate connections between entrepreneurs and industry leaders; • Advance opportunity for community members to access resources for technological development and commercialization. COMMUNITY HEALTH Food Security • Expand capacity of urban agriculture and local food systems to reduce food insecurity; • Leverage innovations in hydroponics to produce food more efficiently and closer to population centers; • Develop an indoor public market to provide year-round access to locally-grown produce; • Develop and maintain community gardens to provide sustainable local produce. Nutrition • Increase engagement with the community on healthy eating habits through demonstration kitchens; • Improve access to healthy foods for at-risk populations by providing services through a community hub; • Develop stronger locally-sourced food systems. Health Equity & Education • Increase focus on healthcare outcomes by incorporating a preventative health program on site; • Adapt existing/emerging health systems to address physical/mental health inequities; • Enhance opportunities for equitable health coverage through reform of healthcare quality, access, and affordability; • Advance platforms to network population health data to inform policy and legislative initiatives. 5 3. PROGRAMMING & PARTNERSHIPS STRATEGY: The last part of the study examined governance and real estate structures of other successful Innovation Districts, which are typically developed through public-private partnerships that include local government, a university anchor, and one or more private developers. For Station Center, HR&A recommends the creation of a new non-profit entity to govern the District, comprised of representatives from the U, Salt Lake City, and other community and industry partners. A standing committee for Research and Advanced Studies would direct and promote the advancement of research initiatives, industry engagement, and academic pursuits within Station Center. Operating subcommittees would work to establish early partnerships with the business community, non-profit institutions, and government entities, ensure that underrepresented communities are able to fully engage with Station Center, build a strong relationship with the West Side, and advise on the real estate development of the District as it is built out. 6 U-OF-U PARTNERSHIP RESOURCES: Successful Innovation Districts are run through programs and partnerships but require a leader to anchor those programs to the District. HR&A identified the U-of-U as best positioned to be the “programmatic champion” of Station Center, as the success of the District will largely rely on the ability to leverage the U’s vast resources to attract industry partners, developers, and investors. If the U-of-U assumes this role, the RDA and City would remain involved as a long-term and strategic partner to leverage resources and ensure that public benefits are maximized. • The University has an established local and regional presence, as well as a strong reputation for being an institution of excellence in innovation, technology commercialization, and research. • The University has a proven track record of a successful commercialization pipeline of new company creation and attraction. • Case studies of other Innovation Districts with nonprofit University partners show a significant amount of job creation (direct and indirect), on-site earnings, and regional economic output, among many other economic benefits. The economic impact of a Station Center Innovation District would spill over into neighboring parts of the city. • Regardless of the property owner, all private development would be considered a taxable improvement and treated as such under applicable tax codes. • The University has the resources needed to invest in both people and infrastructure and can utilize these investments to catalyze activity at Station Center. • The University has existing governance infrastructure through University of Utah Research Foundation (UURF) that could be adapted to create a sub-entity to manage and program Station Center. • Marketing as a partnership with the University would have more impact and attract interest from a wide range of developers. • The University is under contract to purchase approximately 2 acres of adjacent property, which would facilitate 400 South Trax extension that is called for in the Downtown and Transit Master Plans. 7 PLACEMAKING: While it is obvious that the U’s assets and expertise are necessary to cultivate a successful downtown Innovation District, studies show that many other District leaders have failed to pair their innovation programming with the physical land planning necessary to create a compelling sense of place that supports a high level of interaction and collaboration. Pitfalls include a loss of character through the demolition of historic structures, the construction of oversized buildings with large floor plates that eliminate a sense of human scale and walkability, a lack of diversity in building design, and a perceptible divide between areas with sterile institutional buildings and those containing neighborhood amenities like retail, restaurants, bars, etc.1 Fortunately, the RDA has already undertaken significant steps that will prevent Station Center from falling into the same trap. This includes the creation of the Station Center Design Guidelines, which will require new development to be compatible with the SLC Warehouse National Historic District that it is located within, the stabilization of the historic Salt Lake Mattress Company building, and support of the rehabilitation of Artspace’s Beehive Brick and City Center buildings. There are also long planned for infrastructure and streetscape improvements that include the reconstruction of 300 South into a “festival street” that can be closed and programmed as community gathering space, as well as the construction of three new mid-block streets to provide better access and permeability throughout the project. Improvements also include upgrading underground utilities to support denser development and a district-wide approach to streetscape design for an active and pedestrian-oriented neighborhood. Landscape, lighting, electrical, and civil engineering designs are approximately 60% complete, but the RDA’s design consultant is in the process of revising a portion of the plans to incorporate a reimagined concept for the center of the neighborhood on 300 South and Woodbine Court. 1 https://www.brookings.edu/blog/the-avenue/2019/02/21/innovation-districts-and-their-dilemmas-with-place/ Preliminary renderings of revised concept for Woodbine Court & 300 South 8 AFFORDABILITY, EQUITY & SUSTAINABILITY: The U-of-U team has expressed a commitment to the RDA’s vision of a robust, mixed-use neighborhood that meets the needs of a diverse population. The RDA sees Station Center as a unique opportunity to incorporate a high level of public benefit into one project. Potential public benefits that the team will explore include the following: • Housing for extremely low-income households (50% AMI and below), persons with disabilities, the elderly, and other populations at risk for homelessness due to their economic, health, or social circumstances. • Opportunities for affordable home/commercial ownership. • The development of housing that is more conducive to larger household sizes (i.e., 3-4 bedroom units). • Reduction of displacement risk of existing Salt Lake City businesses and barriers to entry for new ones through the provision of affordable commercial spaces with subsidized and/or below-market lease rates. • Solutions that provide equitable access to space and University support services to facilitate the growth cycle of a start-up company. • Programming that meaningfully closes the gaps between the City’s east and west sides by providing educational and/or job opportunities that support upward mobility. • Community health programming with a greater focus on equity and access, education, food security, and nutrition. • New development that is designed to operate without on-site fossil fuel combustion. • On-site renewable energy as well as on-site treatment of stormwater and other water-wise programs. • Implementation of strategies to reduce auto dependency and encourage use of alternative modes of transportation. 9 TENTATIVE TIMELINE AND NEXT STEPS: JUNE 2021: Present Station Center Innovation District concept to Redevelopment Advisory Committee (RAC). Present Station Center Innovation District concept to RDA Board of Directors. Q3 2021: Present property disposition strategy to RDA Board of Directors. Work with U-of-U to refine development strategy with further market analysis and detailed land use planning. Determine governance framework and mechanism for infrastructure maintenance funding. Q4 2021: Return to RDA Board of Directors with informational update on findings from further analyses and disposition/development plans. Execute RDA – U-of-U partnership agreement, an overarching agreement that establishes partnership roles and responsibilities, governance framework, protective covenants, development review processes, etc. Execute property disposition agreement with U-of-U. Q1 2022: Draft and release joint request for proposals (RFP) for first development phase. Q2 2022: Select developer for first phase of project. Return to RDA Board of Directors for informational update on selected proposal. Attachment B: Pre-Disposition Report Station Center Properties June 2021 Property Description: The RDA owns several parcels totaling approximately nine (9) acres and has options to purchase an additional 1.4 acres in what is referred to as the Station Center area roughly bounded by 500 – 600 West and 200 – 400 South. Project Area: Depot District Zoning: Gateway-Mixed Use District Property Type: Tier 1 Tier 1 Justification: The Property is classified as Tier 1 because the parcels meet the following categories: • Property within a strategic geographic location that is considered vital to the redevelopment of the project area, which geographic location is identified in the Project Area Plan. • Property is specifically identified in a Salt Lake City adopted master plan. • Property is a parcel or parcel assemblage that totals two or more contiguous acres in size. • Property is listed on the local or national register of historic places as historically significant (Site 2 – Salt Lake Mattress Company Building). Current Status: In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate Administration engaged in discussions on the establishment of a downtown University presence at Station Center. With the Mayor’s support, both parties commissioned a study by HR&A Advisors that evaluated the feasibility of partnering to create a University-anchored Innovation District, something that is specifically called for in Plan Salt Lake, the City’s Downtown Master Plan, and the Tech Lake City and BioHive initiatives. The Agency is currently working with the U- of-U to define a path forward to implement our joint vision for the project. Property Reuse Plan: In addition to creating a model of successful transit-oriented development, the RDA recognizes the unique opportunity to do something especially impactful with Station Center and aims to ensure that the project supports the following priorities: • Establish Station Center as the City’s flagship downtown hub of research and innovation activity, with a specific focus on the life sciences and community health sectors; • Create a comprehensive neighborhood with a robust mix of uses (affordable housing, office, research, retail, dining, and nightlife opportunities) that meet the needs of a diverse community; • Raise the bar for implementing affordable, equitable, and sustainable development and programming strategies; • Develop high-density, mixed-use buildings with active street-level uses; • Require development that complies with Station Center Design Standards and Guidelines and complements the urban form and character of the SLC Warehouse National Historic District; • Introduce new mid-block street connections and reconstruct the existing 300 South into a pedestrian- oriented “festival street” to serve as a public gathering space; • Upgrade utilities to support the future density of the neighborhood; • Implement strategies to reduce auto dependency and encourage use of the many nearby multi-modal transportation options; and • Support the potential for a permanent, year-round public market. Infrastructure Improvements: Staff is currently working with a consultant and multiple City Divisions to finalize the design/construction documents for proposed public improvements to be made in the area, including three (3) new mid-block streets, the reconstruction of 300 South into a pedestrian-oriented “festival street,” utility upgrades, and other streetscape improvements. The Board has allocated $8.9 million to construct Woodbine Court and to reconstruct 300 South and it has been anticipated that the remainder of the improvements may be funded with property disposition proceeds. Method of Disposition: The Real Property Disposition Policy allows for disposition via exclusive negotiation in certain circumstances, including if the sale or lease of property is to a non-profit or governmental agency for a community development or public use. The RDA is considering disposing of the property to the U-of-U through exclusive negotiation because the University is a Special Purpose Government Agency and the proposed Innovation District project would result in significant community and economic benefits for Salt Lake City. This includes activation of the Depot District in accord with multiple City plans and initiatives; expansion of the U-of-U’s highly successful technology commercialization efforts which results in new company creation and talent retention/attraction; increased innovation and research activity which creates employment opportunities and brings outside funding to the City that is trickled down through the local economy; provision of equitable opportunities for those not typically engaged in these sectors to access U-of-U spaces and support services; implementation of the City’s affordable and family housing priorities with a focus on displacement mitigation; creation of affordable commercial spaces for local businesses and nonprofits; community health programming; sustainable development strategies, and more. Potential Structure: Staff has evaluated several disposition options and the structures of other innovation districts across the country. Based on this evaluation and discussions with the U-of-U, the preferred structure is for the U-of-U to purchase the RDA’s property through a fee title sale. In turn, the University would ground lease/sub-lease the property to a private developer/end-user selected through a competitive Request for Proposals (RFP) process. Primary considerations of the preferred structure are outlined below: • RDA would sell its property to U-of-U at or near a fair market, appraised value. • RDA would be compensated for the full value of land upon sale, whereas a ground lease by the RDA would provide smaller lease payments over time. o Provides for a portion of the land sale proceeds to be used to fund construction of infrastructure improvements (with Board allocation). o Opportunity for remaining funds to be used to carry-out other RDA priorities across other project areas. • The U-of-U would maintain long-term ownership and preserve the Innovation District use through ground leasing to end-users. • U-of-U would use ground lease revenues obtained from sub-lessees to fund District programming and maintenance. One of the first steps in the overall process would be to execute a partnership agreement between the RDA and U-of- U that would establish partnership roles and responsibilities, the selected Innovation District governance structure, protective covenants and other restrictions to be placed on District properties, the development review process, etc. It is anticipated that the City will have representation within the Station Center governance entity, and that the RDA will participate in creation of the RFP(s), developer selection process, and design review of the selected development proposal(s). Tentative Timeline and Next Steps: While the timeline will be influenced by economic conditions and the complexity of the selected project, the RDA is estimating that the disposition schedule will be as follows: Q3 2021: Present property disposition strategy to RDA Board of Directors (BOD). Work with U-of-U to refine development strategy with further market analysis and land use planning. Determine governance framework and mechanism for infrastructure maintenance funding. Q4 2021: Return to RDA BOD with informational update on findings from further analyses and disposition/development plans. Execute overarching RDA – U-of-U partnership agreement. Execute property disposition agreement with U-of-U. Q1 2022: Draft and release joint request for proposals (RFP) for first development phase. Q2 2022: Select developer for first phase of project. Return to RDA BOD for informational update on selected proposal. SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: April 16, 2021 PREPARED BY: Tammy Hunsaker RE: FY 2021-22 Affordable Housing Development Funding Strategy and Priorities REQUESTED ACTION: Briefing on the FY 2021-22 Affordable Housing Development Funding Strategy and consider approval of a resolution establishing annual Funding Priorities. POLICY ITEM: Affordable housing. BUDGET IMPACTS: N/A. EXECUTIVE SUMMARY: The Board of Directors (“Board”) of the Redevelopment Agency of Salt Lake City (“RDA”) recently adopted two policies to facilitate the funding and development of affordable housing within City boundaries. First, the RDA Housing Allocations Funds Policy (“Funds Policy”) establishes guidelines for allocating and directing resources for the development and preservation of housing by funding source. Second, the Housing Development Loan Program Policy (“HDLP Policy”) creates a program that centralizes the application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. Both policies contemplate that annually, prior to the annual budget process, the RDA shall present to the Board an Affordable Housing Development Funding Strategy (“Funding Strategy”). The Funding Strategy shall include a projected amount of revenue to be allocated to housing, proposed funding allocations for housing activities, and proposed funding priorities (“Funding Priorities”) for the upcoming fiscal year. This will allow the RDA to be flexible to address current needs, leverage current opportunities, coordinate with other city resources, and allow funding priorities to align with evolving plans and policies. Pursuant to the Funds Policy, the Board shall consider the Funding Strategy as part of the annual budget adoption process. Additionally, the HDLP Policy provides that the annual Funding Priorities, as proposed through the Funding Strategy, shall be subject to approval by the Board. Accordingly, the Funding Strategy is provided as Attachment A for the Board’s review, and the FY 2021-22 Affordable Housing Funding Priorities resolution is provided as Attachment B for the Board’s consideration. These documents are intended to provide supplemental information and policy direction on the RDA’s budget regarding housing activities and not replace the RDA’s annual budget process. PREVIOUS BOARD ACTION: • March 2021: The Board adopted the Housing Development Loan Program Policy. • February 2021: The Board adopted the RDA Housing Allocation Funds Policy was briefed by RDA Staff on a draft Housing Development Loan Program Policy. • December 2020: RDA Staff presented a draft RDA Housing Allocation Funds Policy Resolution and briefed RAC and the Board on the forthcoming draft Housing Development Loan Program Policy. • July 2020: RDA Staff proposed two draft frameworks that were envisioned to be expanded into legislative policies that would carry out the Board’s direction and intent to 1) direct the allocation of resources for affordable housing development and preservation and 2) consolidate loan administration for the development of affordable housing into a single location. • January - February 2020: RDA Staff briefed RAC and the Board on the Draft Salt Lake City Housing Implementation Framework, a framework that outlines the various roles and responsibilities across City divisions and departments for the implementation of housing. • June 2019 and June 2020: The Board and Salt Lake City Council allocated sales tax funds to the RDA with legislative intent of consolidating loan administration for the development of affordable housing into a single location. • May 2018 to March 2019: RDA Staff presented a series of briefings to RAC and the Board regarding housing, including on topics such as historical practices and funding allocations, statutory requirements, and interdepartmental coordination. • December 2017: The Board adopted a motion directing RDA Staff to draft an RDA Housing Allocation Policy. ATTACHMENTS: A. FY 2021-22 Affordable Housing Development Funding Strategy B. FY 2021-22 Affordable Housing Funding Priorities Resolution The Fiscal Year 2022 (“FY 22”) Salt Lake City Affordable Housing Funding Strategy outlines the amount of revenues available for affordable housing development activities and identifies funding priorities and activities for the expenditure of funds. In addition to expanding the supply of affordable housing, revenues shall be leveraged to elevate real estate development projects that have profound impacts on people, particularly low-income and vulnerable populations, in order to uplift others, create economic opportunities, improve health outcomes, and influence the physical and socioeconomic landscape of Salt Lake City. FY 2022 AFFORDABLE HOUSING FUNDING STRATEGY SALT LAKE CITY DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 2DRAFT: FOR DISCUSSION PURPOSES HOUSING REVENUES & EXPENSES: REVENUES EXPENSES FUND TOTAL HOUSING DEVELOPMENT LOAN PROGRAM ACQUISITION ADU PROGRAM NOTES FY 22 BUDGET* PRIMARY $1,498,627 $498,627 $1,000,000 SECONDARY $394,000 $394,000 Prioritized for RDA Areas NWQ (Inland Port)$250,000 $250,000 Prioritized for West of I-15 HOUSING DEV FUND $2,590,000 $2,590,000 SUBTOTAL $4,732,627 $3,482,627 $1,000,000 $250,000 PRIOR YEAR BUDGET AVAILABLE** PRIMARY $4,533,773 $4,533,773 High Opp $2,700,000 SECONDARY $30,455 $30,455 Prioritized for RDA Areas NWQ (Inland Port)$0 HOUSING DEV FUND $1,090,000 $1,090,000 SUBTOTAL $5,654,228 $5,623,773 $0 $30,455 TOTAL $10,386,855 $9,106,400 $1,000,000 $280,455 FUNDING OVERVIEW IMPACT TARGETS* 232 AFFORDABLE UNITS $10,386,855 TOTAL RDA FUNDS EXPENDED 10 DEVELOPMENT PROJECTS 116 50% AMI & BELOW UNITS 45 HIGH OPPORTUNITY AFFORDABLE UNITS 348 TOTAL UNITS $150,000,000 TOTAL PROJECT COSTS 1:15 LEVERAGE RDA FUNDS to TOTAL COST *Note: These are preliminary estimates based off of a percentage of affordable units per project and a standard development cost per unit. *Note: FY 22 Budget is based on preliminary information. The official draft budget will be transmitted through the Mayor’s Recommended Budget Book. **Note: The Prior Year Budget Available includes an estimate of revolving funds within the housing accounts that will not be expended prior to the end of FY 21. Subject to change.DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 3DRAFT: FOR DISCUSSION PURPOSES •FAMILY HOUSING: Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. Benchmark: Projects include significant amount (20% or more) of affordable 3 and 4-bedroom units. •TARGET POPULATIONS: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Benchmark: Projects include a significant amount (20% or more) of units targeted to the following populations: households earning 50% AMI and below; persons with disabilities; the elderly; and other populations at risk for homelessness due to their economic, health, or social circumstances. •NEIGHBORHOOD SAFETY: Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and stabilize communities. Benchmark: Projects will revitalize a property that is characterized by the State of Utah’s definition of a development impediment; and/or will redevelop a property that is significantly distressed or causing a nuisance AND is detrimental to the health, safety and welfare of the community. •MISSING MIDDLE & UNIQUE HOUSING TYPES: Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. Benchmark: Projects include significant amount (20% or more) of affordable units that are of a missing middle or unique housing type, including townhomes, rowhouses, fourplexes, duplexes, tiny homes, cottage developments, accessory dwelling units, and similar. •HOMEOWNERSHIP: Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. Benchmark: Projects include significant amount (20% or more) of units that are affordable homeownership. •SUSTAINABILITY: Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. Benchmark: Projects are built to be Zero Energy Ready or are certified through an industry-recognized sustainable building certification program. •EXPAND OPPORTUNITY: Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. Benchmark: Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an analysis of quality-of-life indicators. Refer to Appendix C: Opportunity Index. •NEIGHBORHOOD IMPACT: Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices. Benchmark: Projects shall be subject to an RDA design review process. •TRANSPORTATION OPPORTUNITIES: Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options. Benchmark: Projects meets TWO of the following standards: •Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/residents •Is a commercial project that includes employee shower, locker, and bicycle facilities •Is located within 1/3 mile walking distance of a TRAX station or S-Line station •Implements reduced parking strategies without negatively impacting the neighborhood •HISTORIC PRESERVATION/ADAPTIVE REUSE: Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. Benchmark: Developers shall work with the SLC Planning Division to identify appropriate methods to preserve, rehabilitate, or restore architecturally or historically significant properties, including those listed individually as local landmarks, located within local historic districts, and/or located within a District listed on the National Register of Historic Places; OR preserve or repurpose a building through the conversion of existing structures into new uses that contribute positively to its surrounding neighborhood. •COMMERCIAL VITALITY: Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. Benchmark: Projects are mixed-use and establish new services, amenities, or underrepresented business types in the neighborhood that the local community identifies as lacking and desires. •PUBLIC ART: Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. Benchmark: Projects provide publicly visible or accessible, original art that enriches the site and promotes City, and/or neighborhood identity or initiatives and raises awareness of community history, identity, cultures, or geography. •FUND LEVERAGING: Maximize impact by leveraging funds with the private market and with other available public resources. Benchmark: RDA funding shall provide a maximum of 10% of the total project cost. FUNDING PRIORITIES DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 4DRAFT: FOR DISCUSSION PURPOSES The HDLP provides a centralized application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. In FY22, the RDA will release three notices of funding availability through the HDLP. A competitive Citywide NOFA of $5,319,402 will be available for projects located within Salt Lake City municipal boundaries, with a minimum of $394,000 prioritized for projects located in RDA project areas. An Emergency Gap Financing NOFA of $1,000,000 will be released on an open-ended basis for projects, with a majority of units at or below 60% AMI, that have an unexpected financial gap due to unforeseen circumstances. Finally, a High Opportunity NOFA will be released on an open-ended basis for projects located in designated High Opportunity census tracts - refer to Appendix C. BUDGET TARGETED IMPACTS NOFA TYPE TOTAL FUNDING / UNIT UNITS CITYWIDE*$5,406,400 $40,000 135 EMERGENCY GAP $1,000,000 $40,000 25 HIGH OPPORTUNITY $2,700,000 $60,000 45 TOTAL $9,106,400 205 * A minimum of $394,000 shall be prioritized projects located in RDA areas. To be utilized for the purchase of strategic properties located within RDA project areas that may included distressed motels, properties that are located at target locations, and other properties that align with the RDA project area goals and City’s objectives. Properties will be redeveloped to bring resources and projects together to amplify social impact and build communities of opportunity. BUDGET TARGETED IMPACTS FUNDING / UNIT UNITS $1,000,000 $40,000 25 TACTIC 1: HOUSING DEVELOPMENT LOAN PROGRAM TACTIC 2: STRATEGIC ACQUISITION TACTIC 3: ADU PROGRAM To be utilized for a pilot accessory dwelling unit (ADU) program targeted to the 9 Line CRA. ADUs are gaining momentum across the country as part of the solution to address the affordable housing crisis. By establishing a pilot ADU program, the RDA will mitigate some of the barriers for homeowners to construct ADUs including cost and lack of available financing. In addition to fostering the development of ADUs, the program will require homeowners to rent their ADU units at a rate that is affordable to low and moderate income households. BUDGET TARGETED IMPACTS FUNDING / UNIT UNITS $280,455 $95,000 2 TOTAL $280,455 2DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 5DRAFT: FOR DISCUSSION PURPOSES GOAL 1 INCREASE HOUSING OPTIONS: REFORM CITY PRACTICES TO PROMOTE A RESPONSIVE, AFFORDABLE, HIGH-OPPORTUNITY HOUSING MARKET Objective 1 Modernize land-use and zoning regulations to reflect the affordability needs of a growing, pioneering city Objective 2 Remove impediments in City processes to encourage housing development Objective 3 Lead in the construction of innovative housing solutions Objective 4 Provide residents, community advocates, business leaders, and elected officials with high quality data to drive decision- making GOAL 2 AFFORDABLE HOUSING: INCREASE HOUSING OPPORTUNITIES AND STABILIZATION FOR COST-BURDENED HOUSEHOLDS Objective 1 Prioritize the development of new affordable housing with an emphasis on households earning 40% AMI and below Objective 2 Pursue funding sources for affordable housing opportunities Objective 3 Stabilize very low-income renters Objective 4 Secure and preserve long-term affordability Objective 5 Work with landlords to both improve their housing stock and rent to very low-income households Objective 6 Increase home ownership opportunities GOAL 3 EQUITABLE & FAIR HOUSING: BUILD A MORE EQUITABLE CITY Objective 1 Eliminate incidences of housing discrimination in Salt Lake City Objective 2 Align resources to create Areas of Opportunity Objective 3 Implement Lifecycle Housing principles in neighborhoods throughout the city ALIGNMENT WITH GROWING SLC: A FIVE-YEAR HOUSING PLAN 2017-2021 The RDA Housing Strategy addresses all three of the Goals and the majority of the Objectives outlined in the Administration’s recommended housing plan. Growing SLC: A Five-Year Housing Plan 2017 - 2021 - Goals & Objectives FY22 HOUSING FUNDING STRATEGYAPPENDIX A: POLICY ALIGNMENT DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 6DRAFT: FOR DISCUSSION PURPOSES APPENDIX B: INCOME & RENTS 2021 Income Limits: Salt Lake County AMI Number of Persons in Family 1 2 3 4 5 6 7 8 40%$25,780 $29,500 $33,200 $36,875 $39,825 $42,775 $45,725 $48,675 50%$32,300 $36,900 $41,500 $46,100 $49,800 $53,500 $57,200 $60,900 60%$38,760 $44,280 $49,800 $55,320 $59,760 $64,200 $68,640 $73,080 80%$51,560 $59,000 $66,400 $73,750 $79,650 $85,550 $91,450 $97,350 Note: Based on data acquired from the U.S. Department of Housing and Urban Development’s (HUD’s) FY 2021 Income Limits Documentation System. 2020 Maximum Rents AMI Bedrooms Studio 1 2 3 4 5 40%$616 $660 $792 $914 $1,020 $1,125 50%$770 $825 $990 $1,143 $1,275 $1,406 60%$924 $990 $1,188 $1,371 $1,530 $1,688 80%$1,232 $1,320 $1,584 $1,829 $2,040 $2,251 Note: Fair Market Rents are HUD’s determination of the average rents in a particular area for each bedroom size. The FMRs are set each year based on the rental rates of unsubsidized units so that participants in HUD programs have equal access for affordable housing.DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 7DRAFT: FOR DISCUSSION PURPOSES APPENDIX C: OPPORTUNITY INDEX AREAS OF OPPORTUNITY High opportunity areas are geographical locations within the city that provide conditions that expand a person’s likelihood for social mobility. These areas have been identified through an analysis of quality-of-life indicators, such as school proficiency, poverty, labor market engagement, housing stability, and job access. With these multiple indicators, a single composite, or standardized, score is calculated for each census tract. Scores may range from 1 to 10, with 1 indicating low opportunity and 10 indicating high opportunity. A census tract with a standardized score above that of the citywide average shall be designated as an Area of Opportunity. STANDARDIZED OPPORTUNITY INDEX BY CENSUS TRACT Note: Map is subject to change as new data/resources become available.DRAFT REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2021-22 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2021-22 WHEREAS, on February 9, 2021 the Board of Directors of the Redevelopment Agency of Salt Lake City (“Board”) confirmed approval of the Housing Funds Allocation Policy (“Funds Policy”) which establishes polices with respect to dedicating and directing resources for the development and preservation of housing by funding source (“Housing Funds”). WHEREAS, the Funds Policy provides that annually, prior to the annual budget process, the RDA shall present to the Board a Housing Development Funding Strategy (“Funding Strategy”). WHEREAS, the Funding Strategy shall include a projected amount of revenue to be allocated to the Housing Funds, proposed funding allocations for housing activities, and proposed funding priorities (“Funding Priorities”) for the upcoming fiscal year. WHEREAS, pursuant to the Funds Policy, the Board shall consider the Funding Strategy as part of the annual budget adoption process. WHEREAS, on March 23, 2021 the Board adopted the Housing Development Loan Program Policy (“HDLP Policy”) to create a program to centralize the application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. WHEREAS, the HDLP Policy provides that the annual Funding Priorities, as proposed through the Funding Strategy, shall be subject to approval by the Board on an annual basis. WHEREAS, the Board desires to adopt Funding Priorities to direct resources for the development of affordable housing through the HDLP for fiscal year 2021-22. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, as follows: Fiscal Year 2021-22 Affordable Housing Funding Priorities 1. FAMILY HOUSING: Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. 2. TARGET POPULATIONS: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. 3. NEIGHBORHOOD SAFETY: Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and stabilize communities. 4. MISSING MIDDLE & UNIQUE HOUSING TYPES: Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. 5. HOMEOWNERSHIP: Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. 6. SUSTAINABILITY: Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. 7. EXPAND OPPORTUNITY: Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. 8. NEIGHBORHOOD IMPACT: Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices. 9. TRANSPORTATION OPPORTUNITIES: Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options. 10. HISTORIC PRESERVATION/ADAPTIVE REUSE: Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. 11. COMMERCIAL VITALITY: Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. 12. PUBLIC ART: Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. 13. FUND LEVERAGING: Maximize impact by leveraging funds with the private market and with other available public resources. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 2021. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder April 15, 2021 Item C4 Page 1 MOTION SHEET REDEVELOPMENT AGENCY BOARD of SALT LAKE CITY TO:RDA Board Members FROM: Jennifer Bruno DATE:July 20, 2021 RE: MOTION SHEET FOR ADOPTING UPACA INTERLOCAL AGREEMENT Motion 1 – I move that the Board adopt the resolution authorizing the attached interlocal agreement between Salt Lake City, the Redevelopment Agency (RDA), and the Utah Performing Arts Center Agency (UPACA), for operation of the George S. and Delores Dore Eccles Theater. Motion 2 – I move that the Council not adopt the resolution. Project Timeline: Public Hearing: n/a Potential Action: July 20, 2021 RESOLUTION NO. ______ of 2021 RESOLUTION OF THE SALT LAKE CITY COUNCIL APPROVING THE EXECUTION OF THE SECOND AMENDMENT TO AN INTERLOCAL AGREEMENT BETWEEN SALT LAKE CITY, THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AND UTAH PERFORMING ARTS CENTER AGENCY, FOR OPERATION OF THE THEATER KNOWN AS THE GEORGE S. AND DOLORES DORÉ ECCLES THEATER WHEREAS, under Utah Code Ann. §§ 11-13-101, any two or more public agencies may enter into agreements with one another for joint or cooperative action. WHEREAS, Salt Lake County, Salt Lake City, the Redevelopment Agency of Salt Lake City , and the Utah Performing Arts Center Agency (“UPACA”) an interlocal agency, desire to enter into the Second Amendment to an Interlocal Cooperation Agreement (“Agreement”), attached and incorporated into this Resolution as Exhibit “A”, for the operation of the performing arts venue to be known as the George S. and Dolores Doré Eccles Theater. NOW, THEREFORE, BE IT RESOLVED by the Salt Lake City Council that the attached Second Amendment between Salt Lake County, Salt Lake City, Redevelopment Agency of Salt Lake City and UPACA is hereby ratified, effective June 30, 2021, and the Salt Lake City Mayor is authorized to execute the same. APPROVED and ADOPTED this ______ day of ____________, 2021. SALT LAKE CITY COUNCIL _____________________________________ Amy Fowler, Council Char ATTEST: _______________________________ Cindy Lou Trishman, City Recorder Approved as to form: _______________________________ Katherine Lewis, City Attorney 1 Salt Lake County Contract No. SG13517C SECOND AMENDMENT TO OPERATING AGREEMENT UTAH PERFORMING ARTS CENTER THIS SECOND AMENDMENT TO OPERATING AGREEMENT (“Second Amendment”) is effective as of June 30, 2021, by and between the Utah Performing Arts Center Agency, an interlocal entity and political subdivision of the State of Utah (“Owner”), Salt Lake City Corporation, a Utah municipal corporation (“City”), the Redevelopment Agency of Salt Lake City, a public agency (“RDA”) and Salt Lake County, a body corporate and politic of the state of Utah (“County”, and/or “Operator”). Owner and Operator may be referred to individually as a “Party”, or collectively as the “Parties”. R E C I T A L S A. The Parties executed that certain Operating Agreement Utah Performing Arts Center (“Operating Agreement”), with an effective date of March 19, 2013, which Operating Agreement is identified as Salt Lake County Contract No. SG13517C and sets forth certain requirements for Operator to operate the George S. and Dolores Doré Eccles Theater, formerly known as the Utah Performing Arts Center (“Theater”), beginning on March 19, 2013, and ending on December 31, 2041. B. Pursuant to Section 8.8 of the Operating Agreement, the Parties now wish to amend the Operating Agreement to extend Operator’s operation and supervision of UPAC Site for an additional five years. AGREEMENT THEREFORE, for good and valuable consideration, the Parties agree as follows: 1. The Parties agree to renew Amendment 1, covering Operator’s operation of UPAC Site for an additional five-year term from the Effective Date of Amendment 1. The Parties acknowledge the Effective Date of Amendment 1 is June 30, 2016, therefore this renewal shall be effective June 30, 2021, and end June 30, 2026. 2. Amendment. All Parts, Paragraphs, Attachments and other provisions of the Agreement and any prior amendments thereof not specifically modified by this amendment shall be the same and remain in full force and effect. [SIGNATURE PAGES FOLLOW] 2 IN WITNESS WHEREOF, Owner, Operator, City and RDA have executed this Second Amendment to be effective as of the Effective Date. OPERATOR: SALT LAKE COUNTY, a body corporate and politic of the State of Utah By: Its: Mayor or Designee Print Name: County, by resolution of its County Council, a copy of which is attached hereto, caused this Second Amendment to Operating Agreement be signed by the Mayor, or her designee. Approved As To Form __________________________ Deputy District Attorney H:\share\CWANGSGARD\Arts & Culture\UPAC\Operating Agreement\Amendment2\Second Amendment to UPACA Ops Agreement (7.06.21).docx Craig J. Wangsgard Digitally signed by Craig J. Wangsgard Date: 2021.07.06 14:06:40 -06'00' 3 IN WITNESS WHEREOF, Owner, Operator, City and RDA have executed this Second Amendment to be effective as of the Effective Date. OWNER: UTAH PERFORMING ARTS CENTER AGENCY, an interlocal agency of the State of Utah By: ______________________________________ Its: ______________________________________ Date: ________________ Approved as to legal form: Attorney for Salt Lake County _______________________________ Craig Wangsgard, Deputy District Attorney Approved as to legal form: Attorney for Salt Lake City _______________________________ ________________, Senior City Attorney Approved as to legal form: Attorney for Redevelopment Agency ___________________________ ________________, Senior City Attorney Owner, by resolution duly adopted by its Board, a copy of which is attached hereto, caused this Agreement to be signed by its ________________________. Craig J. Wangsgard Digitally signed by Craig J. Wangsgard Date: 2021.07.06 14:06:58 -06'00' 4 IN WITNESS WHEREOF, Owner, Operator, City and RDA have executed this Second Amendment to be effective as of the Effective Date. CITY: SALT LAKE CITY CORPORATION, a Utah municipal corporation Erin Mendenhall Mayor ATTEST: ______________________________________ City Recorder Approved as to legal form: Salt Lake City Attorney’s Office _______________________________ ________________, Senior City Attorney City, by resolution duly adopted by its City Council, a copy of which is attached hereto, caused this Second Amendment to Operating Agreement to be signed by its Mayor and attested by its City Recorder. 5 IN WITNESS WHEREOF, Owner, Operator, City and RDA have executed this Second Amendment to be effective as of the Effective Date. RDA: REDEVELOPMENT AGENCY OF SALT LAKE CITY, a public agency Erin Mendenhall Executive Director Approved as to legal form: Salt Lake City Attorney’s Office ___________________________ ________________, Senior City Attorney RDA, by resolution duly adopted by its Board, a copy of which is attached hereto, caused this Agreement to be signed by its Executive Director, and approved as to legal form by its legal counsel.