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08/24/2021 - Meeting Materials a. .. 10 Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA August 24, 2021 Tuesday 2:00 PM This Meeting Will be an Electronic Meeting Pursuant to the Chair's Determination. "III,CIt]')Axoiar). 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: 13:05:25 This meeting will be an electronic meeting pursuant to the Chair's determination: As Redevelopment Agency Chair, I hereby determine that conducting the Redevelopment Agency Board meeting at an anchor location presents a substantial risk to the health and safety of those who may be present, and that the City and County building has been ordered closed to the public for health and safety reasons. Members of the public are encouraged to participate in meetings.We want to make sure everyone interested in the RDA meetings can still access the meetings how they feel most comfortable. If you are interested in watching the RDA meetings,they are available on the following platforms: • FacebookLive: • YouTube: wwww. roai�ii6o cotyu/slclur�vu�u�.°�.7�m��3�� • WebAgenda: • SLCtv Channel 17 Live: If you are interested in participating during the general comment period,you may do so through the Webex platform. To learn how to connect through Webex, or if you need call- in phone options,please wis,,�:4�ti °w dll)sii�e or call us at 801-535-7607 to learn more. As always,if you would like to provide feedback or comment, please call us or send us an email: • 24-Hour comment line: 801-535-7654 More info and resources can be found at: uS/ Upcoming meetings and meeting lIlI information can be found ere: wwwwAi ow d°uuiiu tiwu /a We welcome and encourage your comments! We have Council staff monitoring inboxes and voicemail, as always,to receive and share your comments with Board Members. A. Comments: 1. General Comments to the;Board ~2:00 Pm. 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, December 8, 2020. 2. Motion: Meeting Remotely Without an Anchor Location ~ 2:10 P.M. 5 mina 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. g. Informational: Station Center Innovation District Concept Follow- - 2:1 up P.M. 20 min. The Board will continue their discussion with RDA staff about the Station Center Innovation District concept. Station Center is located between 500 to 60o 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. 4. Resolution: Fiscal,Year 2021-22 Affordable Housing Development T-2,35 Funding Priorities Follow-up P.M. 20 mina 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. 5. Informational: Update on the Spark! Project(Former Overniter 2:5 Motel) at 15oo West North,Temple Pm. 20 min. The Board will receive a briefing about the Spark! project including an update on the project status,housing unit mix, and upcoming administrative and RDA Board steps. The proposed Spark! project is located at the former Overniter Motel property, 1500 West North Temple in the North Temple Project Area.The proposed project will include approximately Zoo affordable and workforce housing in a variety of sizes; approximately 4,000 square feet of pedestrian-scale retail space oriented towards North Temple; a transit-oriented corner plaza; additional plaza or rooftop garden space; and a potential daycare facility. 6. Report and Announcements from the Executive Director TENTATIVE 5 resin. 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; • Property Updates; • Project Updates; • 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: i. Informational: Status Report on RDA Commercial Loan Portfolio The Board will receive a written briefing about the status of the RDA's commercial loan portfolio.This report identifies the following: • New loans approved between July 1, 202o and June 30, 2021. • Remaining amount in the existing portfolio • Outstanding principal for each loan fund • Any delinquencies 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: discussion of the character,professional competence, or physical or mental health of 1' 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; strategy sessions to discuss the sale of real property,including any form of a water 4' 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; the public body previously gave public notice that the property would be offered (ii) for sale; and< the terms of the sale are publicly disclosed before the public body approves the (iii) 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. 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 801-535-7600,or relay service 711. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, December 8, 2020 in an electronic meeting pursuant to Chair determination and Salt Lake City Emergency Proclamation No . 2 of 2020 (2) (b) . Full Audio Link Virtual Attendance: Directors Amy Fowler, Daniel Dugan, Chris Wharton, Andrew Johnston, James Rogers, and Darin Mano . Absent: Analia Valdemoros . Staff in Virtual Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Erin Mendenhall, Mayor; Danny Walz, RDA Chief Operating Officer; Katherine Lewis, City Attorney; Cara Lindsley, RDA Project Manager; Tracy Tran, RDA Project Manager; Felicia Baca, Arts Division Director; Tammy Hunsaker, Deputy Chief Operating Officer; Talitha Day, Gallivan Center Director; Amanda Lau, Council Public Engagement & Communications Specialist; Robert Nutzman, Council Administrative Assistant; Allison Parks, Senior City Attorney; Scott Crandall, Deputy City Recorder; and Cindy Lou Trishman, City Recorder. Guests in Attendance: Michael Michelsen, Eide Bailley, CPA (Audit Firm) Director Fowler presided at and conducted the meeting. The meeting was called to order at 2 : 04 p.m. A. GENERAL COMMENTS TO THE BOARD George Chapman shared concern about the consideration of a Single- Room Occupancy (SRO) on Jefferson Street (near 1700 South) and encouraged increased public engagement efforts from the City. B. PUBLIC HEARINGS None . Due to issues raised to the attention of the Board relating to noticing, action taken during the December meeting was scheduled and reaffirmed in January 2021 . 20 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 C. REDEVELOPMENT AGENCY BUSINESS #1 . Resolution: Adopting an Updated RDA Art Policy The Board will be briefed about, and will consider adopting, a resolution for an updated RDA Art Policy. The RDA' s original policy, adopted in 1990, authorized 1% of certain Agency construction project budgets for public art . The RDA is proposing the Agency' s art policy change to 1 . 5% and to include additional ongoing annual funding, RDA tools, and incentives to promote art . View Attachments Danny Walz, Tracy Tran, and Felicia Baca shared their willingness to answer questions from the Board on the policy proposed. Director Johnston expressed support and appreciation for the incremental movement toward an artistic City. Director Wharton moved and Director Johnston seconded to adopt the resolution to update RDA Art Policy, which motion carried, all directors present voted aye (roll call) . (Note, due to issues relating to noticing, the resolution was affirmed and numbered R-3 of 2021 at the January 12, 2021 RDA Meeting) #2 . Informational: Housing Allocation Policies Follow-up The Board will be briefed about the draft RDA Housing Allocation Funds Policy and the Housing Development Loan Program Policy. The draft Housing Allocation Funds Policy establishes guidelines for allocating funding and directing resources to develop and preserve housing in the City. The draft Housing Development Loan Program Policy creates a program that would centralize the application, underwriting, and approval process . This setup would provide community partners a "one-stop shop" for accessing resources to develop and preserve affordable housing. View Attachments Tammy Hunsaker provided a presentation to the Board on the formation of two separate policies for housing within the RDA; draft policy resolution which establishes guidelines for allocating and directing resources for the development and preservation of housing; and the housing development loan program policy, which was the program requested to create a one-stop shop for housing development and preservation within the City. 20 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 Ms . Hunsaker stated that the Housing Allocation policy presented the establishment of four housing funds based on the funding source, addressed the annual budgeting process, and the reporting requirements for annual housing expenditures, projects, and outcomes . The funding strategy included an annual overview of the priorities and objectives for further budget allocations and implementation intentionally created for flexibility in priority and impact . It was added that the Redevelopment Advisory Committee recommended the policy move forward as presented. Mr. Walz also clarified that the primary goal of the policy was to outline the statute requirements and funding potential uses, while considering the intersectional opportunities for the use of the funds in various project areas based on priorities of the board and of the overall housing efforts . Director Fowler suggested the potential for a preliminary approval with pending ratification in January 2021, as there had been some noticing issues and the item was a follow-up briefing. Director Rogers moved and Director Johnston seconded to preliminarily adopt the resolution for the Housing Allocation Policy, which motion carried, all directors present voted aye (roll call) . (Note, due to issues relating to noticing, the resolution was affirmed and numbered R-4 of 2021 at the January 12, 2021 RDA Meeting) #3. Informational : RDA 2020 Projects Review and 2021 Projects Preview The Board will receive a summary of work done throughout the 2020 calendar year and a 2021 preview. The briefing will include, but is not limited to, loan closings, COVID-19 assistance, public art projects, and draft policies and programs, among other highlights . View Attachments Danny Walz briefed the Board on the projects of 2020 in review and the upcoming projects of 2021 . Discussion included the assumed management of the Gallivan Center, COVID Assistance (rent waivers/loan-payment deferrals) , loan closures on multiple projects, Art for Hope effort, development of the 9-line and State Street project creation stages, continued project development of Marmalade, Central Ninth, and Granary areas and partner projects . 20 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 Director Dugan asked about the affordable housing ratio from 2020 and whether the agency specified the level of affordable housing required on projects applying for funding. Tammy Hunsaker indicated the 2020 ratio of affordable housing could be provided to the Board via email, and Mr. Walz shared that the affordable housing considerations were established depending upon whether the project was Agency initiated, developer initiated or through the Notice of Funding Availability (NOFA) opportunities . Director Johnston inquired about the Overnighter Hotel property demolition, the project areas in the planning stage, and the priority of the North Temple and Ballpark areas with minimal investment; and suggested the consideration of over allocating to the two struggling project areas (Ballpark was included with the State Street project area) . Director Fowler and Mr . Walz commented on the incredible, diligent, and good work moved into completion phases by Agency staff. #4 . Informational: 650 South Main TRAX Station Funding The Board will be briefed about a proposal to use State Street Project Area "seed funds" to help complete the construction of a new TRAX station at approximately 650 South Main Street . The new station will be funded in conjunction with private property owners in the area who are planning developments, and previously appropriated RDA funding. View Attachments Danny Walz and Cara Lindsley briefed the Board on the project status, including background on the proposed development with the current property owners under construction and those anticipated to be under construction relatively soon, including the station being originally planned as part of the 1997 design (leaving track work out of the necessary construction at this time) , the proposed station being on the north-half of the block between 600/700 south, designs and public art for the station had been initiated in collaboration with UTA and the SLC Arts Council, with a selected artist chosen on Dec 3, 2020 . Ms . Lindsley shared the funding circumstances of developers' contributions and the remaining balance, including the average score of acreage of surrounding properties and proximity to the station, and included the appropriation of $750, 000 from the Agency and potential $38, 901 from State 20 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 Street Project Area Seed Funds as necessary funding for the project to move ahead, the scheduled steps included finalizing the construction agreement with UTA and construction beginning in the spring of 2021 with an opening date of December 2021 . Director Mano inquired about the leverage available to ask developers to provide funds and the anticipated project funding, once they had been `reimbursed' to the RDA, and also noted the proximity of the Central Business District and the Ballpark Project Area. Mr. Walz responded that the leverage of the RDA was in the participation of the RDA for the owners' further development of the area; specifically, that Sinclair had already indicated participation and the Sears block ownership had not completed their design on the project and funding was part of the negotiations . Mr . Walz also explained that if the agency covered the cost now, the effort to obtain the funds from the developers as projects continue would be in place, and if funds returned to the agency the seed funds (since they came from programming income account) could be allocated to a nearby project area or the board could reallocate the funds to another area financed by the RDA. Director Johnston requested further information about the Sears block funding, structure of the agency committing the funds up front, and the proposed TRAX station benefit to the connected projects and contribution (reimbursement) of funds . Mr. Walz shared that the development of the TRAX station was not a foregone conclusion and that although some impacted property owners had contributed and recognized the benefit, the RDA would continue conversations with those who might not be complete with their design, coordinating with them on the benefit and funding of the TRAX station. The station was a significant benefit to the area, and recognition of that benefit had been supported by developers who already contributed hard money on behalf of their individual projects . The Board conducted a straw poll of support to commit the $38, 901 to the previously committed $750, 000 . Directors Fowler, Rogers, Wharton, Dugan, and Johnston voted in support; Board Member Mano voted nay; Board Member Valdemoros was absent . 20 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 Staff noted the consideration of conditions for future motions or additional small group meetings to address any concern. #5. RDA Audit Review and Approval for Fiscal Year 2019-2020 The Board will review and consider accepting the Fiscal Year 2019-20 RDA Audit, which shows the Agency' s financial conditions as of June 30, 2020 . View Attachments Michael Michelsen briefed the board with attachments, noting specifically that the information provided was in draft format but no significant changes made to the final report . He indicated there were two adjustments necessary to raise attention to including an overstated reclassification in the agency position in a 2019 adjustment between the unrestricted and restricted assets, and a correction of an entry to record income in investments of $1 . 4 Million. Director Johnston inquired about the $1 . 4 Million of RDA funds and the unrestricted/restricted adjustment . Mike Burns, City Financial Analyst, indicated the $1 . 4 Million was the error recorded backwards and was not associated with the restatement of net position. The restricted/unrestricted error was due to the placement of the distribution of internally adjusted funds . Director Wharton moved and Director Johnston seconded to accept the draft of the Audit Review, which motion carried, all directors present voted aye (roll call) . #6. Motion: Meeting Remotely Without an Anchor Location The Board will consider a motion to ratify the determination that the Board will continue to meet remotely and without an anchor location under HB5002 . View Attachments Director Wharton moved and Director Dugan seconded to ratify the Chair determination to continue meeting remotely without an anchor location, which motion carried, all directors present voted aye (roll call) . #7 . Report and Announcements from 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 . None . 20 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 #8 . Report and Announcements from RDA Staff The Board may review Board information and announcements . The Board may give feedback on any item related to City business, including but not limited to : • Acknowledgments; and • Scheduling Items . Danny Walz recognized Director Chair Fowler and Vice Chair Valdemoros for leadership and hard work for 2020, and the service and leadership of Chair Fowler for her direction of the Agency through her years of service prior to and during 2020 . #9. Report of the Chair and Vice Chair. Director Fowler shared her appreciation of the opportunity to serve as the Chair and within RDA leadership since 2018, noting the resilience/tireless efforts of staff, establishing affordable housing, and connecting/creating spaces for people to live, work, and play in Salt Lake City. She expressed her gratitude and continued support for the role of the Redevelopment Agency. 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. G. ADJOURNMENT. The RDA meeting adjourned at 4 : 05 p.m. Redevelopment Agency Chair Secretary 20 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, December 8 2020 This document is not intended to serve as a full transcript as additional discussion may have been held; please refer to the audio or video for entire content pursuant to Utah Code §52-4-203 (2) (b) . This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held December 8, 2020 . clt 20 - 8 August 24, 2021 As Chair of the Board of Directors of the Redevelopment Agency, I hereby determine that conducting the Salt Lake City Redevelopment meeting at an anchor location presents a substantial risk to the health and safety of those who may be present at the anchor location. Due to an increase in COVID-19 cases and updated mask requirements, I find that conducting a meeting at the anchor location under the current local emergency constitutes a substantial risk to the health and safety of those who may be present at the location. 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Director IYI lYkf 11At4 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. 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 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 o '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. H. 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 June2021 l JJ /,, 111 I( m�ll"'�uillilllliilulplp ui��r �l r 4 ONE, f IUUVp0111UwI011U01 ! w�, r %, � /r r r% ter/ J, /' p' imii....'rx r To PUFUHNiE r r a r % / � PROJECT OVERVIEW: This document outlines key components of the proposed Station Center Innovation For many years, the Redevelopment Agency District project, which would directly support (RDA) has been working toward the initiatives called for in Plan Salt Lake and the development of what is referred to as the Downtown Master Plan, as well as many Station Center area, an assemblage of other City goals and priorities: approximately 10.5 acres located between 500—600 West and 200—400 South in the Plan Salt Lake (p. 39): Depot District project area. The Agency . Maintain and grow Salt Lake City as currently owns approximately nine acres and the economic center of the region. has options to purchase an additional 1.5 . Support the economic growth of acres from Artspace City Center, LLC, and the State of Utah. Downtown, including: o Innovation District in the Granary RDA plans have long called for Station Center, o Reactivate the Gateway which is adjacent to the UTA Intermodal Hub, o Develop Station Center to become Utah's premier model of o Expand Research Park in or near successful transit-oriented development.This the downtown area vision includes mixed-use development that 0 Support the growth of small maximizes permitted densities and contains businesses, entrepreneurship, and affordable commercial and residential spaces neighborhood business nodes. and active street-level uses, as well as the 0 Recruit corporate headquarters and extension of the City grid to create new major employers to locate in the City. transportation connections that prioritize the • Improve existing and develop new pedestrian and bicyclist over the car. New relationships with economic buildings will also complement the character development partners. of the SLC Warehouse National Historic District and encourage the adaptive reuse of Downtown Master Plan (p. 104-107): remaining historic structures, including the "The future of the Depot District is a dense RDA-owned Salt Lake Mattress Company urban neighborhood that provides a full range building. of housing options and is served by all modes While the Agency has undertaken significant of transit...the area could easily be the physical planning efforts and has an location of a major job center, such as an ambitious vision for the project, Staff urban oriented technology center or research recognizes the unique opportunity to do park." something especially impactful with Station a uui: Center. In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate mm - Administration engaged in discussions on the establishment of a downtown University � presence. With the Mayor's support, both u parties commissioned a study by HR&A Advisors that evaluates the feasibility of partnering to create a University-anchored Innovation District. Vol 2 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: I,„ iiiii IIIIIII IIIIIII IIIIIII IIIIIII IIIIIII IIIIII IIIIIII • Concerns about on-the-ground safety dominate participants' views of the site. „n Ipmr III"I +� iiiii �ti hW • 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 r. and pedestrian connections are needed to ensure that Station Center is well connected a u, and accessible to all parts of Salt Lake City. (IIIIIII (IIIIIII(IIIIIII III (III • 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). 3 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. S1fRATIEGIIC IPIP IR"iruimiTIIIES: LIFE SCIENCES COMMUNITY HEALTH Biotechnology Research Food Security • Promote responsible and ethical • Expand capacity of urban agriculture and innovation; local food systems to reduce food • Advance research in genetics; insecurity; • Use of robotics in medicine. • Leverage innovations in hydroponics to produce food more efficiently and closer to Healthcare population centers; • Prevention of chronic illness and • Develop an indoor public market to provide disease; year-round access to locally-grown • Advance access to health care produce; education, including increasing • Develop and maintain community gardens diversity and equity in providers; to provide sustainable local produce. • Explore social and behavioral sciences; Nutrition • Emphasize need for balance • Increase engagement with the community between preventative/diagnostic on healthy eating habits through care systems. demonstration kitchens; • Improve access to healthy foods for at-risk Technology& Entrepreneurship populations by providing services through a • Expand capacity of technology community hub; and commercialization • Develop stronger locally-sourced food organizations; systems. • Provide spaces for startups to settle after outgrowing incubator Health Equity& Education space; • Increase focus on healthcare outcomes by • Facilitate connections between incorporating a preventative health entrepreneurs and industry program on site; leaders; • Adapt existing/emerging health systems to • Advance opportunity for address physical/mental health inequities; community members to access • Enhance opportunities for equitable health resources for technological coverage through reform of healthcare development and quality, access, and affordability; commercialization. • Advance platforms to network population health data to inform policy and legislative initiatives. 4 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 m i i I I IIII I III 111 III UII IIII � I �1�1)� I�I� II I UII l�I�I III I�I w R1.*seamb&Advanced Studies III ��� III I�i�I III I Ili I II II�II i Ps i �f � 6 C ty l t in r�mt � .._.... �1� ,.....,.. � ._.. 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. 5 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. 6 PLACEMAKING: a While it is obvious that the U's � a� r.ry r�rmmr ,aaum��Nu assets and expertise are necessary t„ to cultivate a successful downtown Innovation District, J ff ,t studies show that many other District leaders have failed to pair � their innovation programming with the physical land planning necessary to create a compelling ate sense of place that supports a high level of Interaction and Preliminary renderings of revised concept for Woodbine Court&300 300 Soo uth collaboration. Pitfalls Include a loss of character through the demolition of historic structures Pon, r lllU� JJJJJJJJlllll�the construction of oversized )J I ,,;,,,,r..r; buildings with large floor plates ii11��1,J JJJJJ!I that eliminate a sense of human scale and walkability, a lack of y diversity in building design and a i perceptible divide between areas i with sterile institutional buildings and those containing � neighborhood amenities like retail, restaurants, bars, etc. 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/ 7 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. 8 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. 9 Attachment B: Pre-Disposition Report Properties p '1 I // w f RA II Station Center Pro f r J ', June 2021 ljj �i/ '%ij r;✓ 1� r it / i / 4 / ru�F� Oa i/ 1 IIIIIIIIIIIIIIIIIII�. TO PUB I WIRWFAw CWHR) rxwf ,ariv, 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 ourjoint 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. Item C4 MOTION SHEET a�" '•••. ��,,,� •,,,� THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO: RDA Board Members FROM: Allison Rowland Budget&Policy Analyst DATE: August 24,2021 RE: FY 2021-22 AFFORDABLE HOUSING DEVELOPMENT FUNDING PRIORITIES FOLLOW-UP MOTION i —APPROVE THE RESOLUTION I move that the Board adopt the resolution titled FY2o21-22 Affordable Housing Funding Priorities,with the final funding priorities to be provided as Exhibit A to the resolution. MOTION 2 —NOT APPROVE THE RESOLUTION I move the Board not adopt the resolution titled FY2021-22 Affordable Housing Funding Priorities, and move on to the next agenda item. BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY Z #loss Is, ................................................................................................................................................................................................................................................................. Item Schedule: Briefing:August 24, 2021 TO: RDA Board Members Set Date: n/a Public Hearing: n/a FROM: Allison Rowland Potential Action:August 24, 2021 ................................................................................................................................................................................................................................................................... Budget&Policy Analyst DATE: August 24, 2021 RE: FY 2021-22 AFFORDABLE HOUSING DEVELOPMENT FUNDING PRIORITIES FOLLOW-UP ISSUE AT-A-GLANCE The Board has engaged in discussions over the past few months on how to define the Housing Development Funding Priorities for fiscal year 2022(FY22).These Priorities are intended as policy direction for RDA staff as they consider applications for City affordable housing development support offered through any Notice of Funding Availability(NOFA)in this fiscal year.The goal of adopting priorities on an annual basis,according to RDA staff is to"be able to direct resources to specific policy priorities depending on current resources, community need,and policy objectives."This process follows the Housing Funds Allocation Policy and Housing Development Loan Program(HDLP)Policy adopted by the Board early in 2021.In future years the annual Priorities discussion will be scheduled during March or April,for consideration well before budget discussions begin. The most recent RDA transmittal(August 9, 2021),proposes a revised FY22 Affordable Housing Priorities strategy which that would consider two priorities from the list previously discussed—Fund Leveraging and Environmental Sustainability—as thresholds required for consideration of any NOFA funding proposal. For each funding proposal thus qualified, RDA staff would weigh the remaining 11 priorities according to a point scale that ranges from one to three in terms of relative importance.The total points awarded to each project would determine its ranking among the applications received,with Board approval needed for final decisions. In addition, a 0.5%interest rate reduction would be available for each of the 11 priorities met, as well as for the Sustainability threshold,with a maximum of four reductions on any RDA loan(that is,two full percentage points below the base rate)for a specific project.Note that in all cases, RDA funding would be limited to lo%or less of a project's total financing sources. Goal of the briefing:Discuss the revised funding priority strategy and consider adopting the Resolution entitled FY 2021-22 Affordable Housing Funding Priorities. POLICY QUESTIONS 1. The Board may wish to discuss whether to further divide the proposed top category of NOFA Ranking Weights(that is,the five priorities that would receive three points)to further distinguish among them. For example,certain of these priorities could receive four or more points. 2. Would the Board like to make any adjustments in the language for each Policy Objective listed in Attachment A? 3. Does the Board wish to review the specific language proposed for the Sustainability threshold in Attachment A, and below,to determine whether it meets their standards,and whether relatively small projects(those with loans of$400,000 or less)would be discouraged by this definition? "Sustainability: The threshold sustainability requirement will be as follows: Enhanced Energy Performance—All affordable housing construction loans of four hundred thousand dollars ($400,000) or more shall be designed to achieve an energy use intensity (EUI) target that is 25%lower than the median EUI of similar building types or a `Designed to Earn ENERGY STAR"Score of 80 or higher and participate in the City Sustainability Department's Elevate Buildings Program. The EUI and ENERGY STAR targets shall be based on ENERGY STAR or comparable source. 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MMI�V..a u �� r r° // „��, u�;� �, � G 4N,. ��� i i �,��, �„ M, i �� /,l � I� ��- �..d / i �I[ �„ �a� i N�,�...,�J�m��rc�� .. / / a ., / � � � ..., . / .-., // � �% l � ,�� . . k; i �� ,;;��� ���� � � � � �Mai . a r .rv��,m���� ., � �� � U / r�r� / � G /� � ��. �� / II � /l // / / / o / � �� � � � t � ; � i � � � � � � � l / l � l I I I �� I l� � � 00 fill, MAYOR ERIN MENDENHALL DANNY WALZ Executive Director =` Director Iloilo$it REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: August 9, 2021 PREPARED BY: Tammy Hunsaker RE: FY 2021-22 Affordable Housing Development Funding Priorities Follow-up REQUESTED ACTION: Follow-up briefing on the FY 2021-22 Affordable Housing Development Funding Priorities 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 had a series of discussions regarding housing funding priories for fiscal year 2021-22 ("FY 22"), on May 4, May 18, and July 20, 2021. This memorandum provides follow-up information to these discussions and proposes a revised funding priority strategy that is based on the Board's feedback. The concept of annual housing funding priorities is new for this fiscal year due to the recent adoption of two housing policies. 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. In accordance with the Funds Policy, an annual Funding Strategy shall be proposed that includes funding allocations for housing activities and funding priorities for the Board to consider as part of the annual budget adoption process. The annual funding priorities are intended to 1)prioritize projects during the funding allocation/ selection process and 2)provide for interest rate reductions for projects selected for funding. By adopting priorities on an annual basis, the RDA will be able to direct resources to specific policy priorities depending on current resources, community need, and policy objectives. RDA staff transmitted proposed funding priorities for the May 4, 2021 Board meeting. Subsequently, the Board has had multiple discussions expressing the desire to modify the previously proposed priorities. Currently, a revised funding priority strategy has been prepared by RDA staff(Attachment A). Once approved by the Board, the final funding priorities can be attached as Exhibit A to the FY 2021-22 Affordable Housing Funding Priorities Resolution (Attachment B). 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 ANALYSIS & ISSUES: The housing funding allocation as provided within the Funding Strategy was approved as part of the Agency's FY22 budget. The related annual funding priorities, once established, will be utilized in two ways, as follows: 1. Funding Allocation Priorities: HDLP funds shall be administered through a transparent notice of funding availability ("NOFA")process and shall incorporate the funding priorities as determined annually by the Board. RDA staff will evaluate and rank applications based off the funding priorities, with the final funding decision authorized by the Board. Based on recent discussions, the Board has expressed the desire to modify these priorities in one or all of the following ways: reduce the number of, weight, and/or create threshold requirements. 2. Interest Rate Reduction Priorities: The HDLP policy provides for a 0.5% interest rate reduction for each funding priority a project aligns with, down to a minimum of 1%. The interest rate typically begins at—3%, and a project would need to quality for 4 funding priorities to reduce the interest rate from 3%to 1%. On a $1,000,000 loan with a 30-year term, each 0.5%interest rate reduction would provide $77,000 in savings over the term or$2,500 annually. Projects applying for gap financing are not financially viable and often require low interest rates to adequately fill the gap. These interest rate reductions not only help incentivize the development of affordable housing,but can also incentivize other public benefits such as ground floor commercial or publicly visible art. As such, the Board may wish to keep the list of priorities utilized for interest rate reductions a bit more robust than the list of priorities utilized in the funding allocation/selection process. RDA staff has taken feedback expressed by the Board and revised the proposed FY 22 housing funding priorities (Attachment A). Within this revised approach,priorities for funding allocations for housing activities and interest rate reductions have been differentiated. Fund leveraging and sustainability have been set as a threshold requirement for accessing funding,with heightened sustainability also available as an HDLP interest rate reduction. In addition, regarding the priories utilized for ranking projects for funding, certain priorities have been weighted higher than others. Ideally, the heightened threshold requirements and weighted priorities will facilitate the funding of projects that align with specific policy objectives. Once projects are selected for funding, they will be eligible for interest rate reductions from a broad set of twelve funding priorities. A resolution for the Board to approve FY 22 housing funding priorities is provided as Attachment B to this memorandum,with the final funding priorities to be provided as Exhibit A to the resolution (Exhibit A is currently blank). PREVIOUS BOARD ACTION: • July 20,2021: The Board continued its discussion on FY 22 housing priorities. • May 18, 2021: The Board continued its discussion on FY 22 housing priorities. • May 4, 2021: RDA staff presented draft FY 22 housing priorities with a subsequent policy discussion by the Board. • 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. Proposed FY 2021-22 Affordable Housing Funding Priorities B. FY 2021-22 Affordable Housing Funding Priorities Resolution Attachment A: Proposed FY 2021-22 Affordable Housing Funding Priorities II IIII I� i i w IIIIII��IIIIIII IIIIIIIIIIIIII I V III IIII IIIIII�I�IIIIIII IIIIII 1 Fund Maximize impact by leveraging funds with the private Threshold N/A Leveraging*** market and with other available public resources. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2 Sustainability**** Achieve green building and energy conservation standards Threshold X to lower housing expenses, conserve resources, and promote resiliency. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3 Family Housing Provide opportunities for families to enjoy the many 3 X benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4 Target Expand the availability of units for extremely low-income 3 X Populations households and special populations, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5 Neighborhood Utilize the development of housing as a method to remove 3 X Safety blight,reduce crime,revitalize neighborhoods,and stabilize communities. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6 Homeownership Create opportunities for those who have historically rented 3 X in the community to build wealth and establish permanent ----------------------------------- --roots through home cwners!�ip------------------------------------------------------------------------------------------------------------------------------ 7 Transportation Promote a multimodal transportation network and ensure 3 X Opportunities convenient and equitable access to a variety of ------------------------------------------------transportation options. ------------------------------------------------------------------------------------------------------------------------------------------- 8 Missing Middle& Promote an array of scale of project types to diversify the 2 X Unique Housing City's housing stock/forms and provide more affordable __________ Types---------------------------living options for residents_ --------------------------------------------------------------------------------------------------------------------------------- 9 Expand Provide for Neighborhoods of Opportunity by promoting 2 X Opportunity the economic diversity of the housing stock within .................................................neighborhoods_ ------------------------------------------------------------------------------------------------------------------------------------------------------ 10 Neighborhood Encourage housing that is high-quality, enduring,and that 2 X Impact contributes to neighborhood context and livability through architectural and urban design best practices. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 11 Commercial Foster a mix of land uses and unique neighborhood business 2 X Vitality districts that adequately meet the local community's needs. ----------- ------------------ Historic Encourage the preservation and/or reuse of buildings to 1 X Preservation preserve the character of neighborhoods. _________ /Adaptive Reuse ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 13 Public Art Promote cultural expression and add to the experience and 1 X value of the built environment through art that is publicly visible or accessible for all to experience. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- *Note:NOFA Ranking Weight: Uses a number(the weight) between 1 and 3 to assess the importance of the funding priority,with 1 being of lower importance and 3 being of the highest importance. **Note: .05%Interest Rate Reductions: While 12 interest rate reductions will be available,the maximum a project can quality for is four,thereby reducing the interest rate to a minimum of 1%. ***Note: Fund Leveraging:RDA funding will be limited to 10% or less of the project's financing sources as a threshold requirement. ****Note: Sustainability: The threshold sustainability requirement will be as follows: Enhanced Energy Performance-All affordable housing construction loans of four hundred thousand dollars ($400,000) or more shall be designed to achieve an energy use intensity(EUI) target that is 25%lower than the median EUI of similar building types or a `Designed to Earn ENERGY STAR"Score of 80 or higher and participate in the City Sustainability Department's Elevate Buildings Program. The EUI and ENERGY STAR targets shall be based on ENERGYSTAR or comparable source. A project that has increased sustainability standards beyond the threshold requirement will be eligible for an HDLP interest rate reduction. 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 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 Housing Development Loan Program for fiscal year 2021-22. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: The Fiscal Year 2021-22 Affordable Housing Funding Priorities as shown on Exhibit A are hereby adopted. 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:August 6, 2021 The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting. Erin Mendenhall, Executive Director Attest: City Recorder Exhibit A: Fiscal Year 2021-22 Affordable HousingFg Priorities BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY Z #loss Is, ................................................................................................................................................................................................................................................................. Item Schedule: Briefing:August 24, 2021 TO: RDA Board Members Set Date: n/a Public Hearing: n/a FROM: Allison Rowland Potential Action: n/a ................................................................................................................................................................................................................................................................... Budget&Policy Analyst DATE: August 24, 2021 RE: INFORMATIONAL: UPDATE ON THE SPARK! PROJECT(FORMER OVERNITER MOTEL)AT 1500 WEST NORTH TEMPLE ISSUE AT-A-GLANCE The Board will be updated on several proposed changes to the Spark project agreement with the developer, Brinshore,for their project at the former Overniter Motel site,on 15oo West North Temple.The new project would be a mixed-use,mixed-income development on the two-acre site,with Zoo residential units and 4,000 square feet of retail space.It would also include a transit-oriented corner plaza to meet the applicable policy goals of Salt Lake City's Transit Station Area zoning,as Board directed in a 2017 Resolution authorizing the Request for Proposals(RFP)for the site.The total cost for the project has been estimated at about$70 millionbut volatile prices for construction materials mean this number will continue to fluctuate. Ground breaking has been tentatively scheduled for fall, 2022. The property was purchased by the RDA in 2017 and at that time,in an effort to avoid further concentrating less- valuable housing on the City's West Side,the Board's RFP resolution also prohibited future site development from offering more than half of the total units as"affordable"under Federal guidelines(Attachment Ci). In 2018,the project was awarded to Brinshore through a competitive RFP process,and City funding totaling nearly $6.5 million was awarded through the2018 and 2019 Notices of Funding Availability(NOFAs).Most recently, 9% LIHTC(Low-Income Housing Tax Credits)were awarded in 2021.This has allowed Brinshore to move toward a more detailed proposal for the mix of affordability and sizes for the residential units in the project. Further refinement of the proposal will depend on whether the developer is awarded 4% credits later this year. The Board is not asked to make to any decisions on the project at this time,but may wish to consider the policy question listed at the end of this staff report. Goal of the briefing:Receive information on several potential changes to the Spark mixed-use, mixed- income development project which is located at the former Overniter Motel property at 1500 West North Temple. ADDITIONAL INFORMATION A. Board Resolution on Affordability Limits.The RDA Board expressed concern about the potential for a project on this site to further concentrate less-valuable housing on the City's West Side.It has been the Board's policy,instead,to try to disperse new affordable housing units across parts of the City where access to opportunities for residents is greatest,while encouraging greater diversity in the housing choices offered on the West Side. For this reason,in 2017 the Board passed a resolution to prohibit future site development at the former Overniter location from offering more than half of the total units as affordable housing (Attachment Ci).As provisionally planned,RDA staff considers the Spark development to meet the criteria established in the RFP because LIHTC policy now considers rental prices below 60%AMI as"affordable." See Policy Question section,below. B. Provisional AMI Mix. Beginning in 2018,the LIHTC program changed its policies to allow"income- averaging,"which means these credits can be used in projects where the average of all unit rental prices is 6o% AMI,rather than only where all units are priced at or below that level.This means some units in a development may rent at higher levels(70%to 80%AMI),which can help subsidize new,deeply affordable rents for other units.In the Spark development, Brinshore currently anticipates that exactly half(ioo)of the total units be priced at 20%to 5o%AMI,while the other half be offered at 70%to 8o%AMI(see chart below).The 70%to 8o%range currently coincides with market rate prices in the area.The standard 50-year deed restriction on affordability would still apply to all of these units,which would guarantee they remain affordable as market rates rise.The developer will further refine the unit mix depending on whether the project is awarded 4% LIHTC,so some changes are possible,but the plan is to provide a mix similar to the structure below. Brinshore anticipates that roughly 30%of the units will be"family size,"that is,two-,three-,or four-bedroom units. Provisional AMI Mix Affordability Number of range units 8o%AMI 30 70%AMI 70 60%AMI o 50%AMI 22 40%AMI 30 30%AMI 43 20%AMI 5 Total units 200 C. Potential Financing Gap. RDA staff will continue to work to determine the Spark project's funding gap, which will depend on whether 4% LIHTC are awarded,the unit mix,and the evolution of construction costs.A rough estimate of funding sources appears in the RDA staffs August 9,2021 transmittal,but these will be refined as the process continues.The key point is that adding unrestricted(market rate)units to the project would result in a larger financing gap because this reduces LIHTC equity. This means that if RDA were to fund a gap created by adding market rate units to the project, it would essentially be directing public subsidies to these. Depending on how the finalized unit mix,sources and costs play out,RDA staff may propose to provide a seller's note to Brinshore to help fill any remaining gap.This would essentially finance the project's purchase of the property,which cost $4,000,000 in 2017. RDA staff will continue to work with the developer to evaluate land disposition options and related cost-benefit analyses,and any potential discount options will be brought to the Board for final approval.An RDA seller's note is also part of financing for Brinshore's 255 S. State project, most recently reviewed and amended by the Board in 2020. POLICY QUESTION 1. Would the Board like to discuss whether the Spark project may be a good candidate for an exception to the general policy of encouraging new affordable housing units to be dispersed across parts of the City where access to opportunities for residents is greatest?The Board might wish to consider this question in the context of the ongoing housing crisis,which includes an especially pressing need for housing for people with low to middle incomes,as well as a desire to see this property developed since the City has owned it since 2017 and it could help further the RDA's broad efforts along North Temple. [lag 1 RDA Resolution R-11-2017 't ov i.<e vi e n.t:.L r r r c: >I.u.'t'..Lon. REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. R-11-2017 Disposition Requirements for Real Property Located at 1500 West North Temple RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY (-RDA") FOR DISPOSITION REQUIREMENTS FOR REAL PROPERTY LOCATED AT 1500 WEST NORTH TEMPLE WHEREAS, on October 24, 2017, the RDA Board of Directors ("Board") appropriated $4 million for the purpose of acquiring that certain real property located at 1500 West North Temple, known as the Overniter Motel ("Property"). WHEREAS, subsequent to the appropriation, the Board considered and approved certain conditions for the method and terms of the RDA's disposition of the Property, as described herein. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that: SECTION 1. Method of Disposition. The RDA will dispose of the Property pursuant to a Request for Proposals ("RFP"), with the intention of receiving responses by the end of the calendar year. SECTION 2. Terms of RFP. The RFP shall include a requirement that the development of the Property will not include more than 50% of affordable units. The RFP will also require that any development of the Property will meet the applicable policy goals of Salt Lake City's Transit Station Area zoning. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this 24th day of October, 2017. Q) C Nwoo I f r „ �'t00,✓.rl /;a„ �r �n✓r 1 Ip�� Ir �� 1P � � �Pli�i'x�i�ialYi n�� � ,1, � ��. a f�� /r/, i IN %��/^/r9✓/t/lent r/ /' ��/� ` // �r ii„�v r!/9/,ei,�/i�enJ1�'.Y4✓frflAY/ICY//%I,ni,,.,/"YY,f/�a/ti!t„tY>;<//r%v,/7,F / ,,,�,i �;-�119/%% � „' r '✓> �//�a�i���/�yf��� �� ,,,,,,,, ,� � ;,, � '�r � ;; err J',,, i��%„ /� !r,,.- t �,,..... 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B � � mQ � N NNN Ol Ln m mN � � � N 0 co C III A IN q) -C3 co CIO U CID CID Eo f k rye Ile -2 Au,rr"' 0 ex, �✓" C:S 40xr��Vl,s. ors »fin` r 4 YE 06, ," 10, Ito Ocn E � > N O � .5 CD � Y Q co cu L � Ca U O E .� O � cu c i O -C3O C3 SZ— �u � N O O � � �--+ 1� —C:3 AD O U O O U cU) Ca -- -� N co N � f_— � X �°�1� f of ioo �I i. 1 . Jim r i i i�U fu` ' llll r l� �p r . II� k . iIIYJAf,, ' u•. ab /�� llll� III J �7��r ` I m ���mmmufilolllllllll�l�llll� O U � Ca N � N U O cn cn 'U cn CU _C3 � L Q O L L M CU �--. -C3 CQ O cn co � }, - U E a CIO C Cz 2 _a.) I cn CIO Z N > O co w O LL W J -M U 3 0 ���� �j �% /� �� ,,,,,� �/��%////r /�„ ���� //aid aaaaiiao,,,,/ �„ %%% /Pa�i/ /� �/0 � ` ;///////////////// ,,, r �i�o,� /� ��, !o///O////OO�� � � �,,,,,%,,,,,, �//� o°°%,/%�ioioio�/����//� ,, � , % �� �// / MAYOR ERIN MENDENHALL DANNY WALZ Executive Director "' Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE:August 6, 2021 PREPARED BY: Corinne Piazza, Project Manager RE: Spark! Project Update REQUESTED ACTION: Briefing on the Spark! Project(formerly the Overniter Motel property)located at 1500 West North Temple in the North Temple Project Area POLICY ITEM: Property Disposition. BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: This is an informational briefing on the Spark! project including an update on the project status, housing unit mix, and upcoming administrative and RDA Board ("Board") steps. The proposed Spark! project at the former Overniter Motel property is located at 1500 West North Temple ("Property") in the North Temple Project Area.The site is designated as an RDA Tier I Property due to it being over 2 acres (at 2.07 acres total) and identified in a City adopted master plan, specifically as an "ideal spot for a signature transit-oriented development" in the Cornell Station Area Plan. Please see Attachment A: Parcel Map for reference. The proposed Spark! mixed-use project will include approximately 200 residential units including affordable and workforce housing; family housing; approximately 4,000 square feet of pedestrian-scale retail space oriented towards North Temple; a transit-oriented corner plaza; additional plaza or rooftop garden space; and a potential daycare facility (the "Project"). Please see Attachment B: Spark! Project Conceptual Renderings for reference and note that the conceptual renderings are subject to change. Project Background and Overview: In October 2017, the Board adopted a resolution allocating $4,000,000 in Tax Increment Affordable Housing Funds for the acquisition of the Overniter Motel as a catalytic project in the North Temple Project Area and adopted a resolution stating that the project Request for Proposals ("RFP") shall include a requirement that the development of the Property will not include more than 50%affordable units. In March 2018,the RDA issued a competitive RFP based on North Temple Project Area Plan goals and the Board resolution, including that the proposed project include no more than 50% affordable units to households at or below 60% AMI. The RFP received three responses which went through a Selection Committee process including proposal review,interview,and final selection stages.The selected developer 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 was Brinshore Development ("Brinshore"), a proven developer out of Illinois with extensive expertise in affordable housing projects that focus on community oriented mixed-use development. In October 2018, the Board approved $2,500,000 in Tax Increment Affordable Housing Funds for the Project through the competitive 2018 Notice of Funding Availability ("NOFA") process. In November 2019, the Board approved $3,956,000 in affordable housing funds for the Project through the competitive 2019 NOFA. ANALYSIS &ISSUES: Proiect Status Update: Since the last Board update, Agency staff has been working diligently with Brinshore on administrative steps including: • The demolition of the Overniter Motel which is currently in progress with final removal of debris slated to be completed by Fall 2021. • Preservation of the applicable Overniter Motel signs for salvage or potential reuse and incorporation into the Project. • Updating the Purchase and Sale Agreement dates with Brinshore to allow for an additional Low Income Housing Tax Credit("LIHTC") application round in 2021 as the Project was not awarded 9%LIHTC credits in the 2019 or 2020 application rounds. • Working with Brinshore on Project financing scenarios including the housing unit mix to be included in Brinshore's upcoming LIHTC application, as well as exploring potential financial partnerships as part of the public asset development discussions. Due Diligence Process: Proiect Financing* Brinshore is working diligently to secure all applicable funding sources for the—$70,000,000 Project. In addition to the—$6,400,000 in committed RDA Affordable Housing NOFA funds,it is anticipated that the Project will require a seller's note, subject to Board approval, issued by the RDA to finance the Property. To complete the capital stack, Brinshore anticipates securing the following sources of funding for the Project,pending final financing structure decisions: • —24,000,000 in Traditional bank financing • —$27,500,000 in Low Income Housing Tax Credit Equity • —$2,500,000 in State Tax Credit Equity • —$2,000,000 in Olene Walker Funds • —$750,000 in Salt Lake City HOME funds • —$300,000 in Salt Lake County HOME funds • —$100,000 in a Rocky Mountain Power rebate *Please note that the financing information represents only general commitments or estimates at this time and is subject to change as Project financing progresses. A key element of the Project's priorities and ability to secure funding in order to be financially feasible is the housing unit mix. Brinshore has identified an effective housing unit mix which meets the Board goals, allows the Project to maximize LIHTC equity (and thus reduce the financing gap), and preserve affordability into the future as the North Temple Project Area continues to grow. The below table summarizes the current housing mix proposed for the Project. As the development is further refined, the unit mix may change,but it will maintain a minimum of 50%of the units at 70%AMI or above,as provided in the table below. Approximate Percent AMI Who Can Live There Unit Count 5 20%AMI • A single parent at a coffee shop working 20 hours a week would be able to afford a unit at 20%AMI 43 30%AMI • Cashier at a grocery store making$19,330 would be able to afford a unit at 30%AMI 30 40%AMI • A person in the service industry working at an ice cream parlor would be able to afford a unit at 40%AMI 22 50%AMI • Medical Assistants at Sacred Circle Healthcare making $30,250 would be able to afford a unit at 50%AMI 70 70%AMI • A Delta Airlines Flight Attendant making$44,708 would be able to afford a unit at 70%AMI 30 80%AMI • A family including a Computer Technician making $32,334 and a Childcare Provider making$21,130 • Epidemiologist at the Department of Health snaking $51,600 would be able to afford a unit at 80%AMI Prior to the Consolidated Appropriations Act of 2018,units above 60% AMI did not quality for LIHTC equity.However,in 2018 the LIHTC program implemented an income averaging option,which the Project is utilizing, allowing units up to 80% AMI to qualify for LIHTC equity. It is important to note that the Project proforma shows a minimal financing gap when the Project can maximize LIHTC equity. Accordingly, the more unrestricted, or market rate units the Project includes, the larger the financing gap becomes as the Project qualifies for less LIHTC equity, which would create the need to fund a gap to essentially subsidize market rate units. The approximate unit mix referenced above allows for the Project to generate as much LIHTC equity as possible,lowering the financing gap as all 200 units are technically restricted.However,due to the naturally occurring lower rents in the North Temple Area,as can be seen in the chart below,the 70 and 80%restricted units are above market rate rents for the neighborhood. This allows the Project mix to have all restricted units to maximize LIHTC equity, meet the Board's goals that 50% of the units be in market rate range, while also restricting the 70 and 80%units to ensure affordability over the long term as the North Temple Project Area continues to grow. Income Level Bedrooms LIHTC Eligible North Temple Difference Rents Area MR Rents Studio $1,130 $1,015 $115 70%AMI 1BR $1,210 $1,110 $100 2BR $1,452 $1,400 $52 Studio $1,291 $1,015 $176 80%AMI IBR $1,383 $1,110 $283 2BR $1,660 $1,400 $260 Ensuring affordability over the long term may be more important now than ever, as an increased number of market rate units have recently come online in the North Temple area. Please see Attachment C: Area Housing Unit Snapshot for information provided by Brinshore on housing unit types roughly within a mile of the Project site. Currently there are approximately —1,900 market rate units and—450 affordable units, with additional and soon to be determined mixed-use projects and potential development sites such as the Rocky Mountain Power property. Next Administrative Steps: Agency staff will continue to work with Brinshore to secure available LIHTC financing as applicable. Once the amount of LIHTC credits the Project may receive is determined, Brinshore and Agency staff will be able to further refine the potential capital stack and identify any remaining funding gap. Agency staff will also work with Brinshore to evaluate the land disposition options and related cost-benefit analysis. Any potential discount,Property write-down,or seller's note consideration would be presented to the Board for discussion and potential approval at a future Board meeting. CITY COORDINATION: • The Engineering Department is currently administering the demolition process for the motel structure and Agency staff will continue to coordinate through completion. PUBLIC PROCESS/OUTREACH: • N/A REDEVELOPMENT ADVISORY COMMITTEE RECOMMENDATIONS: • N/A PREVIOUS BOARD ACTION: • November 2019: Board approved $3,956,000 in tax increment funds set aside for affordable housing and offered in a competitive Notice of Funding Availability(NOFA)for the Spark!Project. Resolution R-14-2019. • October 2018: Board approved$2,500,000 in tax increment funds set aside for affordable housing and offered in a competitive Notice of Funding Availability (NOFA) for the Spark! Project. Resolution R-31-2018. • October 2017: The Board appropriated tax increment funds for affordable housing of$4,000,000 for site acquisition. Resolution R-11-2017. ATTACHMENTS: • Attachment A: Parcel Map • Attachment B: Spark! Project Conceptual Renderings (Subject to Change) • Attachment C: Area Housing Unit Snapshot ATTACHMENT A Parcel Map ii//r iI. �r%art%i rr✓/1l fJ GK�a %///%U�%„///%// ', %/�%� r rN/�/! K��V�,WIW �„ /�� �',j/��! � ";.��'�r '�iif a �1 ✓;i,�/��rtl r �,.� l,%r�f,f �„ � i f �✓�lyj l/ rrr �f �,;�////�//�i. �,,�'�9 �". °�*a.✓V�J/f'/'r 1 G .. /, /%,// "�j, e�N�rW r �'�/��li°Ifr% ' � f��V�'N' ,/� Iw�li '/'!ffi i" f/V�'��✓/�'//(/J/fir/� f� %%/�� f f �J� J / ������ / r r rqi 7h" �� i�'% %j r/' f///i////�r r/ rr//i � /�/ /�� iL�V rr�)�1/ii%G%f/ /:r/r�// �V ii J�✓��J ;,e„ �. ,,, w,,,l<r/� m'�f,' !1✓/r� mli/r/...// �r /'��f If/Jf l% i �% r� r//. / � �l e r�'a/f'�"ri w�rrmrr'G„: ,ri r / r r mtl/i /!y ��/ �muwiw�mwrrfi+m4 wawnl mom m V % i 'w r R fp:'✓q& !%W ryY�M<N9 ryMO aA(M'Xk w,W bWFNMr3,wN %WY NCAII pl101 f1a IpBlrMllp°" G 4Wp+ I tl W // %r/✓//%l AS / '4 a/ r rNY //i havoc r /r/ "�/r oJ- l��J I��lJ ,,,,:% /��,, r k.rm�wvmN5m,z w,kwJnf('Irv'i�rN9r tvJw,urgrN,�rw✓r,Vni1's�+Vl /%�ollum///y l�i ATTACHMENT B Spark! Project Conceptual Renderings (Subject to Change) r AERIAL SOUTH WEST AERIAL a 1 YIII�I � I i i RETAIL AND L < a' STRIEE7SCAPE� ilk i ��ti�I �u ;J N'fNf/N�,, �✓ o ' IIJ j, r � 1 v q RETAIL FRONTAGE ATTACHMENT C Area Housing Unit Snapshot Within roughly I mile of Project site CUP a ril 0 H. j ON fl Mr ""w I W r«J i I � . ri i�)t,,. �i w If Oft Project Site. 1500W Nortit Tern p[g, Maltet Rate:"1,900 units 'fixed-income(Uniit Mix:: AffordabV :-4,50, El TIgT Unit Type Approximate Unit Location Count Market Rate —1,900 1. Lusso Apts. 3. Power Station Apts. S. District North Apts. 6. Meridian Apt. Complex 9. Landing Point Apts. 11. Sky Harbor Apts. 12.West Station Apts. 15. Morton Meadows Apts. Affordable —450 3. Power Station Apts. 7. North Metro Townhouses 13. Riverwood Cove Apts. Mixed-Income —400 8. North Temple Flats (Unit mix pending) 10. Cornell Place Apts. 14. Westgate Apts. TBD N/A 2. 900 W. North Temple 4. Rocky Mountain Power *Provided by Brinshore Development MAYOR ERIN MENDENHALL DANNY WALZ Executive Director "' Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: August 06,2021 PREPARED BY: Erin Cunningham, Financial Analyst RE: Status Report on RDA Commercial Loan Portfolio REQUESTED ACTION: Information Item RECOMMENDATION: N/A BUDGET IMPACTS: None EXECUTIVE SUMMARY: Semiannually, the RDA provides an update to the Board on the status of the RDA's commercial loan portfolio. This report identifies the following: •New loans approved between July 1,2020 and June 30,2021. • Remaining amount in the existing portfolio • Outstanding principal for each loan fund •Any delinquencies ANALYSIS & ISSUES: LoansNew • • • - • July 1,2020-June 30,2021 Date Fund Borrower Resolution Approved Amount CBD Commercial Loan Fund 255 State 4 LLC R-18-2020 11/10/2020 1,151,399 [Brinshore Development] Total New Loans 1,151,399 Funds . • - to Lend Funds Available to Lend June 30, 2021 Revolving Loan Fund 7,491,298 CBD Commercial Loan Fund 0 SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET,ROOM 118 WWW.SLC.GOV•WWW.SLCRDA.COM P.O. BOX 145518,SALT LAKE CITY,UTAH 841 1 4-55 1 8 TEL 801-535-7240• FAX 801-535-7245 Outstanding Loan PrincipalBalances As of June 30,2021 Fund Type Number of Loans Principal Balance Revolving Loan Fund 17 19,922,246 Delinquency: None PREVIOUS BOARD ACTION: N/A ATTACHMENTS: None