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06/08/2021 - Meeting Materials (2)Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA June 8,2021 Tuesday 2:00 PM This Meeting Will be an Electronic Meeting Pursuant to the Chair’s Determination. SLCRDA.com 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:09:27:35 This meeting will be an electronic meeting pursuant to the Chair’s determination: As Redevelopment Agency Chair,I hereby determine that conducting the Salt Lake City Council 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: •Facebook Live:www.facebook.com/slcCouncil/ •YouTube:www.youtube.com/slclivemeetings •Web Agenda:www.slc.gov/council/agendas/ •SLCtv Channel 17 Live:www.slctv.com/livestream/SLCtv-Live/2 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 visit our website 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 •council.comments@slcgov.com More info and resources can be found at:www.slc.gov/council/contact-us/ Upcoming meetings and meeting information can be found here:www.slc.gov/council/agendas/ 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 p.m. 5 min The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to RDA offices,451 South State Street,Suite 118,P.O. Box 145455,Salt Lake City,UT.84114-5455. 2.Comments to the RDA Board of Directors.(Comments are taken on any item not scheduled for a public Hearing,as well as on any other RDA Business.Comments are limited to two minutes.) B.Public Hearing -individuals may speak to the Board once per public hearing topic for two minutes,however written comments are always accepted: NONE. C.Redevelopment Agency Business -The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Motion:Meeting Remotely Without an Anchor Location ~2:05 p.m. 5 min. 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. 2.Informational:Update on 650 South Main TRAX Station Funds ~2:10 p.m. 15 min. The Board will receive an update on funding contingencies for the 650 South Main TRAX Station.The update includes information on increased cost,next steps,a $2.1 million construction bid selected by the Utah Transit Authority (UTA)and a plan to fully fund the resulting $3 million project,including design,oversight,and contingencies. 3.Informational:Station Center Innovation District Concept ~2:25 p.m. 30 min. The Board will receive a briefing about the Station Center Innovation District concept. Station Center is located between 500 to 600 West and 200 to 400 South in the Depot District project area.The Innovation District concept would be anchored by the University of Utah for technology development,from research to start-up incubators to mature profitable businesses.As part of the briefing,the Board will also receive a pre-disposition report that includes preliminary information prior to marketing the property. 4.Resolution:Redevelopment Agency Budget for Fiscal Year 2021-22 Follow-up TENTATIVE The Board will receive a follow-up briefing on the proposed budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2021-22.The Board expects to adopt the budget in mid-June. 5.Report and Announcements from the Executive Director TENTATIVE 5 min. Report of the Executive Director,including a review of information items,announcements, and scheduling items.The Board of Directors may give feedback or policy input. 6.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; •Staff Updates;and •Scheduling Items. D.Written Briefings –the following briefings are informational in nature and require no action of the Board.Additional information can be provided to the Board upon request: NONE. E.Consent –the following items are listed for consideration by the Board and can be discussed individually upon request.A motion to approve the consent agenda is approving all of the following items: 1.Board Reappointment:Redevelopment Advisory Committee (RAC)–Mark Isaac The Board will consider approving the reappointment of Mark Isaac to the RAC for a term ending January 20,2025. F.Tentative Closed Session The Board will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: 1.discussion of the character,professional competence,or physical or mental health of an individual; 2.strategy sessions to discuss pending or reasonably imminent litigation; 3.strategy sessions to discuss the purchase,exchange,or lease of real property: (i)disclose the appraisal or estimated value of the property under consideration;or (ii)prevent the public body from completing the transaction on the best possible terms; 4.strategy sessions to discuss the sale of real property,including any form of a water right or water shares,if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration; or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale;and< (iii)the terms of the sale are publicly disclosed before the public body approves the sale 5.discussion regarding deployment of security personnel,devices,or systems;and 6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. G.Adjournment CERTIFICATE OF POSTING On or before 5:00 p.m.on _____________________,the undersigned,duly appointed City Recorder,does hereby certify that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda,including but not limited to adoption,rejection,amendment,addition of conditions and variations of options discussed. People with disabilities may make requests for reasonable accommodation,which may include alternate formats, interpreters,and other auxiliary aids and services.Please make requests at least two business days in advance.To make a request,please contact the City Council Office at council.comments@slcgov.com,801-535-7600,or relay service 711. UPDATE 600 SOUTH TRAX STATION RDA BOARD MEETING JUNE 8, 2021 BACKGROUND •RDA and SLC Transportation Division identified opportunity in 2019 to build a TRAX station at approximately 650 South Main Street using funding contributions, in part, from private property owners. •$639,601 FY19 budget appropriation to help design and construct the station 500 SOUTH 600 SOUTHWEST TEMPLEMAIN STREET700 SOUTH 800 SOUTHSTATE STREET14 2 3 5 1: 650 Main 2: 6th & Main 3: Seven O2 Main 4: 650 Main Phase 2 5: Copper Yards : TRAX Station BACKGROUND •Additional $750,000 appropriated in FY20 and $38,981 appropriated in FY21 to cover contributions for developments not yet underway when construction funding is needed for station BACKGROUND •Additional $750,000 appropriated in FY20 and $38,981 appropriated in FY21 to cover contributions for developments not yet underway when construction funding is needed for station •Contingencies on $750,000 (FY20): 1.Secure agreement with UTA for operation and maintenance commitment 2.Report finalized designs and cost estimates to RDA Board 3.Provide plan to fully fund the project, including third party commitments STATUS •RDA executed construction agreement with UTA in December 2020 •CRSA completed design and cost estimate in February 2021 •UTA issued RFP in April 2021 •Contractor selected in May 2021 •UTA and SLC Transportation provided additional funding, RDA negotiated participation agreements with developers STATUS •RDA executed construction agreement with UTA in December 2020 •CRSA completed design and cost estimate in February 2021 •UTA issued RFP in April 2021 •Contractor selected in May 2021 •UTA and SLC Transportation provided additional funding, RDA negotiated participation agreements with developers Contingency #1 Contingency #2 Contingency #3 FUNDING AND DEVELOPER CONTRIBUTIONS 2021 Total Project Cost $3,017,694 RDA FY19 Appropriation -$ 639,601 RDA FY20/21 Appropriation (w/contingencies)-$ 788,901 UTA Contribution toward Construction -$ 173,400 SLC Transportation Contribution -$ 150,000 Total Developer Contributions $ 1,265,792 NEXT STEPS •UTA Board approval of construction contract in June 2021 •Construction anticipated to begin in July 2021 •Station anticipated to open by February 2022 QUESTIONS? REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: May 21, 2021 PREPARED BY: Cara Lindsley RE: Update on Contingencies for Utilization of 650 S Main TRAX Station Funds REQUESTED ACTION: Informational Update POLICY ITEM: N/A BUDGET IMPACTS: None EXECUTIVE SUMMARY: The RDA is working with SLC Transportation and UTA to design and build a TRAX station at approximately 650 South Main Street using funding contributions, in part, from private property owners who are planning new developments in the area. In November 2019, the RDA Board appropriated $750,000 to cover developer contributions for nearby projects that would not be finalized in time to provide funds for station construction. In December 2020, the RDA Board approved the use of an additional $38,901 in State Street Project Area “seed funds” to complete the construction funding for the station. Together, these funds allowed the RDA to execute a construction agreement with UTA and negotiate participation agreements with developers while continuing to pursue future contributions from other projects to repay the RDA. Attached to the Board’s 2019 appropriation of $750,000 were three contingencies: - Securing an agreement with UTA in which UTA commits to operate and maintain the station, - Reporting finalized designs and cost estimates to the Board, and - Providing a plan to fully fund the project, including commitments from third parties other than the RDA. The first two contingencies were satisfied through submittals on December 8, 2020 and April 13, 2021. The final contingency is satisfied with this transmittal that (1) notifies the Board that UTA preliminarily selected a contractor on May 18, 2021, with a construction bid of $2.1 million, and (2) provides the Board with a plan to fully fund the resulting $3 million project, including design, oversight, and contingencies. BACKGROUND: In 2019, the RDA and SLC Transportation Division began discussing an opportunity to build a TRAX station at approximately 650 South Main Street using funding contributions, in part, from private property owners who are planning new developments in that area. This location would represent the final station within the original 1997 design plans for the TRAX system that was built in advance of the 2002 Olympic Games. UTA ultimately decided to wait to build this station until more of the nearby properties were developed, but the rails were constructed to accommodate this future condition. Several new projects in this area are currently planned, with three already under construction. ANALYSIS & ISSUES: RDA Budget Appropriations and Contingencies The RDA Board appropriated $639,601 in FY19 Budget Amendment #4 to contribute to the then-estimated total project cost of $2,000,000 to construct a new station at 650 S. Main Street. Using a formula that considers property size and location, contributions from five participating development projects were calculated to make up the remaining $1,360,399 of needed funding. Because plans for two of the five projects would not be finalized in time to provide funds for construction, the RDA Board approved the use of $788,901 in State Street Project Area “seed funds” to complete construction funding for the station, with the intention that the RDA will continue to pursue and negotiate repayment through future developer contributions. These funds are made up of a November 2019 appropriation of $750,000 and a December 2020 approval to use $38,901. It should be noted that the Board’s approval of the November 2019 budget appropriation was based on three contingencies: 1. An agreement with UTA in which UTA commits to operate and maintain the station.  Satisfied with the execution of a construction agreement between RDA and UTA on December 28, 2020. 2. Reporting finalized designs and cost estimates to the Board.  Satisfied with the transmittal of the station’s finalized design and cost estimate to the Board on April 13, 2021. The Engineer’s Estimate of construction costs, developed by the station architect (CRSA), was $1,912,454. 3. Providing a plan to fully fund the project, including commitments from third parties other than the RDA.  Satisfied with this transmittal, notifying the Board that UTA has selected a construction contractor with a construction bid of $2,136,458. This construction bid results in a total project cost of approximately $3 million, which includes design and contingencies, and which has been used to calculate developer contributions and finalize the funding plan. Project Funding Plan Since 2019, when UTA estimated that station construction would cost $2 million, construction costs in Salt Lake City (and around the nation) have increased sharply. While finalizing the station design, the UTA/RDA/SLC team identified over $200,000 in project cost savings and $325,000 in additional funding sources to reduce the total project cost. Still, the sum of the developer contributions, using the final project cost of $3 million, exceeds the original sum by approximately $400,000. The three participating developers have agreed to increase their contribution amounts to account for the higher costs so construction can begin before costs escalate even further. The RDA will continue to pursue and negotiate contributions from other developments benefiting from the TRAX station – both to recoup the RDA’s $788,901 and to bring developer contribution amounts closer to those that were originally agreed to. Final costs are subject to minor changes as contracts are finalized, but the current project funding plan is provided in the table below. Project Sources Project Uses RDA FY19 BA4 $639,601 Design $233,140 RDA FY20 BA1 $750,000 Public Art $108,750 RDA FY21 $38,901 Construction $2,136,458 UTA Contribution (Snowmelt System) $173,400 UTA-Procured Items $222,000 SLC Transportation Division Construction (Traffic Signal) $150,000 UTA Project Administration $81,500 Developer Contributions $1,265,792 Project Contingency $235,846 Total $3,017,694 Total $3,017,694 NEXT STEPS: • Pending UTA Board approval, UTA will enter into a construction contract with the selected contractor in June 2021. • Jiyoun-Lee Lodge, the artist selected by the Art Design Board in November 2020, will finalize engineering drawings and begin artwork fabrication in Fall 2021. • Station construction is anticipated to begin in July 2021 and be completed no later than December 2021. PREVIOUS BOARD ACTION: • In April 2019, the RDA Board appropriated $639,601 in FY19 Budget Amendment #4 to contribute to the estimated $2,000,000 cost of constructing a new station at 650 S. Main Street. • In November 2019, the RDA Board appropriated $750,000 in FY20 Budget Amendment #1 to cover the developer contributions for projects that would not be finalized when funds are needed for station construction. • In December 2020, the RDA Board approved the use of the November 2019 appropriation ($750,000) and an additional $38,901 from State Street Project Area seed funds to cover developer contributions for projects that would not be finalized when funds are needed for station construction. ATTACHMENTS: N/A SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY DATE: May 21, 2021 PREPARED BY: Ashley Ogden and Cara Lindsley RE: Station Center Innovation District Concept and Pre-Disposition Report REQUESTED ACTION: Briefing on the Administration’s plans for disposition of property located within the bounds of 500 – 600 West and 200 – 400 South. POLICY ITEM: Depot District real property disposition. BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: For many years, the Redevelopment Agency (RDA) has been working toward the development of what is referred to as the Station Center area, an assemblage of approximately 10.5 acres located between 500 – 600 West and 200 – 400 South in the Depot District project area. The Agency currently owns approximately nine acres. RDA plans have long called for Station Center, which is adjacent to the UTA Intermodal Hub, to become Utah’s premier model of successful transit-oriented development. This vision includes mixed-use development that maximizes permitted densities and contains affordable commercial and residential spaces and active street-level uses, as well as the extension of the City grid to create new transportation connections that prioritize the pedestrian and bicyclist over the car. New buildings will also complement the character of the SLC Warehouse National Historic District and encourage the adaptive reuse of remaining historic structures, including the RDA-owned Salt Lake Mattress Company building. While the Agency has undertaken significant physical planning efforts and has an ambitious vision for the project, Staff recognizes the unique opportunity to do something especially impactful with Station Center. In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate Administration engaged in discussions on the establishment of a downtown U-of-U presence. With the Mayor’s support, both parties commissioned a study by HR&A Advisors that evaluates the feasibility of partnering to create a University-anchored Innovation District on the Station Center property. This memo is intended to provide the RDA Board of Directors (Board) with an overview of key components of the Station Center Innovation District project concept, which is based on findings from the partnership study. Please refer to Attachment A: Station Center Innovation District Development Proposal for a full project profile. Additionally, pursuant to the RDA’s Real Property Disposition Policy, the RDA shall submit a pre-disposition report to the Board prior to marketing the property that includes preliminary information on the proposed plans for disposition– please refer to Attachment B: Pre-disposition Report. ANALYSIS & ISSUES: Key takeaways of the proposed Station Center Innovation District project concept and disposition include the following: 1. Coordinated Development Approach: Last year, the RDA began to consider a master-development model for Station Center that would realize efficiencies related to 1) development of infrastructure improvements, 2) maintaining consistency with design guidelines, 3) carrying out cohesive land use planning and activation, and 4) establishing a coordinated plan for infrastructure maintenance funding. 2. Policy Alignment: A partnership with the U-of-U would support the Mayor’s vision for Tech Lake City, BioHive, and initiatives called for in Plan Salt Lake and the Downtown Master Plan. Plan Salt Lake (p. 39): • Maintain and grow Salt Lake City as the economic center of the region. • Support the economic growth of Downtown, including: o Innovation District in the Granary o Reactivate the Gateway o Develop Station Center o Expand Research Park in or near the downtown area • Support the growth of small businesses, entrepreneurship, and neighborhood business nodes. • Recruit corporate headquarters and major employers to locate in the City. • Improve existing and develop new relationships with economic development partners. Downtown Master Plan (p. 104-107): “The future of the Depot District is a dense urban neighborhood that provides a full range of housing options and is served by all modes of transit…the area could easily be the location of a major job center, such as an urban oriented technology center or research park.” 3. Partnership Opportunity: A partnership with the U-of-U represents an opportunity to elevate the RDA’s long-standing plans to implement a model transit-oriented development with a clustering of leading-edge anchor institutions, inventors, incubators and accelerators, and businesses at all levels in the life cycle ranging from start-ups to mature, growing firms, all in one place. 4. Leveraging of Resources: This partnership will allow for the leveraging of resources, including capitalization of the U-of-U’s strong reputation for being an institution of excellence in innovation, technology commercialization, and research to attract industry partners, developers, capital, and investors. 5. Community Benefit: In addition to the economic benefits that a University-anchored Innovation District is sure to bring to Salt Lake City, the RDA sees this as a unique opportunity to incorporate a high level of public benefit into one development project. Programming initiatives identified for the District include affordable housing and commercial spaces to mitigate risk of displacement from the City, opportunities for education and upward mobility through equitable access to U-of-U resources and spaces, a focus on community health programming, and implementation of sustainable development strategies that have not yet been embraced by the local development community on a widespread scale. 6. Long-term Involvement: The RDA would remain involved as a long-term and strategic partner, as defined through a partnership agreement, to ensure the success of the district and that public benefits are maximized. In addition, the City could maintain an active partnership in the governance and programming of the Innovation District. 7. Board’s Role: As the Administration negotiates the terms of a partnership, the Board’s role in the property disposition will include: a. Approval of any land discount over 10% of the as-is fair market value pursuant to the Real Property Disposition Policy. b. Allocation of any sales disposition proceeds pursuant to the Real Property Disposition Proceeds Policy. 8. Method of Disposition: Pursuant to the RDA Real Property Disposition Policy, the RDA may engage in an exclusively negotiated method of disposition with a “non-profit or governmental agency for a community development or public use.” While partnering with the University of Utah may technically include an exclusive negotiations method of disposition, the selection of ultimate development partners would be through competitive RFPs. This will allow the RDA and University to recognize the benefits of a partnership while still being inclusive and transparent in the selection of end users. 9. Disposition Structure: The U-of-U and RDA are currently working through the framework of a potential disposition and development structure. Discussions are in the preliminary stages and do not yet include a formal commitment from the parties to move forward with a partnership, specific terms, or legal agreements. Based on extensive evaluation of potential structures and current discussions with the U-of-U, a land sale structure appears to be most viable. 10. Infrastructure: A partnership with the U-of-U would fulfill the RDA’s long-standing plans for streetscape and infrastructure improvements. It has been anticipated that the RDA would need to use a portion of the property disposition proceeds to fund these infrastructure needs. Improvements include the extension of the City’s street grid with the construction of new mid-block streets, the reconstruction of 300 South into a “festival street” with community gathering space, and the upgrading of utilities to support denser development. 11. Land Sale Proceeds: A land sale would provide significant revenues to the RDA, providing the ability to target resources to other project areas such as North Temple, 9 Line, and State Street. PREVIOUS BOARD ACTION: • On June 3, 2014, the Salt Lake City Council adopted Ordinance No. 26 (2014), approving the street vacation of the outer edges of 300 South between 500 West and 600 West streets. • On May 12, 2015, the RDA Board approved the Station Center Infrastructure Improvements Schematic Design. • On March 15, 2016, the RDA Board approved the Station Center Infrastructure Improvements Design Development. • On May 24, 2016, the City Council adopted the Downtown Community Master Plan. • On March 20, 2018, the RDA Board approved land write-downs of the sales prices for Station Center Sites 1 and 3 in exchange for those developers constructing the portion of Infrastructure Improvements adjacent to their sites. • On January 15, 2019, the RDA Board held a policy discussion regarding potential strategies for maintaining public improvements for RDA projects. • On April 13, 2019, the RDA Board approved $8,962,119 in funding for the Station Center Infrastructure Improvements. • On September 24, 2019, Project Staff briefed the RDA Board on the current status of the Station Center infrastructure project and made the recommendation to fund ongoing maintenance of the new improvements via Business Improvement District, similar in structure to a Special Assessment Area. • On September 15, 2020, the RDA Board approved the use of $865,000 in funding to stabilize the RDA-owned Salt Lake Mattress Company building. A separate action approved the use of funds to exercise the RDA’s option to purchase property from Artspace City Center, LLC. • On November 10, 2020, Project Staff provided the RDA Board with an informational update about a revised shared-street design for 300 South and Woodbine Court and presented findings from a Special Assessment Area analysis for funding ongoing maintenance of infrastructure improvements. ATTACHMENTS: A. Station Center Innovation District Development Proposal B. Pre-Disposition Report Attachment A: STATION CENTER INNOVATION DISTRICT DEVELOPMENT PROPOSAL June 2021 2 PROJECT OVERVIEW: For many years, the Redevelopment Agency (RDA) has been working toward the development of what is referred to as the Station Center area, an assemblage of approximately 10.5 acres located between 500 – 600 West and 200 – 400 South in the Depot District project area. The Agency currently owns approximately nine acres and has options to purchase an additional 1.5 acres from Artspace City Center, LLC, and the State of Utah. RDA plans have long called for Station Center, which is adjacent to the UTA Intermodal Hub, to become Utah’s premier model of successful transit-oriented development. This vision includes mixed-use development that maximizes permitted densities and contains affordable commercial and residential spaces and active street-level uses, as well as the extension of the City grid to create new transportation connections that prioritize the pedestrian and bicyclist over the car. New buildings will also complement the character of the SLC Warehouse National Historic District and encourage the adaptive reuse of remaining historic structures, including the RDA-owned Salt Lake Mattress Company building. While the Agency has undertaken significant physical planning efforts and has an ambitious vision for the project, Staff recognizes the unique opportunity to do something especially impactful with Station Center. In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate Administration engaged in discussions on the establishment of a downtown University presence. With the Mayor’s support, both parties commissioned a study by HR&A Advisors that evaluates the feasibility of partnering to create a University-anchored Innovation District. This document outlines key components of the proposed Station Center Innovation District project, which would directly support initiatives called for in Plan Salt Lake and the Downtown Master Plan, as well as many other City goals and priorities: Plan Salt Lake (p. 39): • Maintain and grow Salt Lake City as the economic center of the region. • Support the economic growth of Downtown, including: o Innovation District in the Granary o Reactivate the Gateway o Develop Station Center o Expand Research Park in or near the downtown area • Support the growth of small businesses, entrepreneurship, and neighborhood business nodes. • Recruit corporate headquarters and major employers to locate in the City. • Improve existing and develop new relationships with economic development partners. Downtown Master Plan (p. 104-107): “The future of the Depot District is a dense urban neighborhood that provides a full range of housing options and is served by all modes of transit…the area could easily be the location of a major job center, such as an urban oriented technology center or research park.” INNOVATION DISTRICTS: Dense enclaves that merge the innovation and employment potential of research- oriented anchor institutions, high-growth firms, and tech and creative start-ups in well-designed, amenity-rich residential and commercial environments. – Brookings Institution 3 PROGRAMMING & PARTNERSHIP STUDY FINDINGS AND RECOMMENDATIONS: As mentioned above, the RDA partnered with the U-of-U to explore a programmatic approach and partnership strategy to support the development of a Station Center Innovation District. The following is a high-level summary of the findings and recommendations that came out of this three- part study: 1. STAKEHOLDER ENGAGEMENT: During August and September 2020, HR&A Advisors hosted 14 discussions with representatives from city, regional, and state government, various U-of-U programs, and many other local stakeholders who have a vested interest in the growth of Salt Lake City’s innovation ecosystem. Main takeaways include: • Concerns about on-the-ground safety dominate participants’ views of the site. • Housing in the Downtown area is currently inaccessible to a wide range of people whose participation is essential to a Station Center Innovation District. • Increased transit access and comfortable bike and pedestrian connections are needed to ensure that Station Center is well connected and accessible to all parts of Salt Lake City. • Biotech and health, both prescriptive and preventative, have been identified as potential anchor industries for Station Center. • There is a citywide shortage in lab, office, and community spaces necessary for a thriving innovation ecosystem, an issue with implications on talent and business attraction and retention. • Green/play space is highly desired throughout Salt Lake City, and especially within the Depot District. • Rio Grande Depot is currently seen as a barrier to development and will require more active programming. • The success of this project will be measured in large part by the extent to which it provides meaningful connections to the West Side (both physical and programmatic). STUDY COMPONENTS 1 Stakeholder Engagement 2 Innovation Asset Assessment 3 Programming & Partnerships Strategy 4 2. INNOVATION ASSET ASSESSMENT: Following the stakeholder engagement process and review of existing plans and resources, HR&A Advisors completed an innovation asset mapping exercise that resulted in a recommended set of programmatic drivers for a Station Center Innovation District: Life Sciences and Community Health. STRATEGIC OPPORTUNITIES: LIFE SCIENCES Biotechnology Research • Promote responsible and ethical innovation; • Advance research in genetics; • Use of robotics in medicine. Healthcare • Prevention of chronic illness and disease; • Advance access to health care education, including increasing diversity and equity in providers; • Explore social and behavioral sciences; • Emphasize need for balance between preventative/diagnostic care systems. Technology & Entrepreneurship • Expand capacity of technology and commercialization organizations; • Provide spaces for startups to settle after outgrowing incubator space; • Facilitate connections between entrepreneurs and industry leaders; • Advance opportunity for community members to access resources for technological development and commercialization. COMMUNITY HEALTH Food Security • Expand capacity of urban agriculture and local food systems to reduce food insecurity; • Leverage innovations in hydroponics to produce food more efficiently and closer to population centers; • Develop an indoor public market to provide year-round access to locally-grown produce; • Develop and maintain community gardens to provide sustainable local produce. Nutrition • Increase engagement with the community on healthy eating habits through demonstration kitchens; • Improve access to healthy foods for at-risk populations by providing services through a community hub; • Develop stronger locally-sourced food systems. Health Equity & Education • Increase focus on healthcare outcomes by incorporating a preventative health program on site; • Adapt existing/emerging health systems to address physical/mental health inequities; • Enhance opportunities for equitable health coverage through reform of healthcare quality, access, and affordability; • Advance platforms to network population health data to inform policy and legislative initiatives. 5 3. PROGRAMMING & PARTNERSHIPS STRATEGY: The last part of the study examined governance and real estate structures of other successful Innovation Districts, which are typically developed through public-private partnerships that include local government, a university anchor, and one or more private developers. For Station Center, HR&A recommends the creation of a new non-profit entity to govern the District, comprised of representatives from the U, Salt Lake City, and other community and industry partners. A standing committee for Research and Advanced Studies would direct and promote the advancement of research initiatives, industry engagement, and academic pursuits within Station Center. Operating subcommittees would work to establish early partnerships with the business community, non-profit institutions, and government entities, ensure that underrepresented communities are able to fully engage with Station Center, build a strong relationship with the West Side, and advise on the real estate development of the District as it is built out. 6 U-OF-U PARTNERSHIP RESOURCES: Successful Innovation Districts are run through programs and partnerships but require a leader to anchor those programs to the District. HR&A identified the U-of-U as best positioned to be the “programmatic champion” of Station Center, as the success of the District will largely rely on the ability to leverage the U’s vast resources to attract industry partners, developers, and investors. If the U-of-U assumes this role, the RDA and City would remain involved as a long-term and strategic partner to leverage resources and ensure that public benefits are maximized. • The University has an established local and regional presence, as well as a strong reputation for being an institution of excellence in innovation, technology commercialization, and research. • The University has a proven track record of a successful commercialization pipeline of new company creation and attraction. • Case studies of other Innovation Districts with nonprofit University partners show a significant amount of job creation (direct and indirect), on-site earnings, and regional economic output, among many other economic benefits. The economic impact of a Station Center Innovation District would spill over into neighboring parts of the city. • Regardless of the property owner, all private development would be considered a taxable improvement and treated as such under applicable tax codes. • The University has the resources needed to invest in both people and infrastructure and can utilize these investments to catalyze activity at Station Center. • The University has existing governance infrastructure through University of Utah Research Foundation (UURF) that could be adapted to create a sub-entity to manage and program Station Center. • Marketing as a partnership with the University would have more impact and attract interest from a wide range of developers. • The University is under contract to purchase approximately 2 acres of adjacent property, which would facilitate 400 South Trax extension that is called for in the Downtown and Transit Master Plans. 7 PLACEMAKING: While it is obvious that the U’s assets and expertise are necessary to cultivate a successful downtown Innovation District, studies show that many other District leaders have failed to pair their innovation programming with the physical land planning necessary to create a compelling sense of place that supports a high level of interaction and collaboration. Pitfalls include a loss of character through the demolition of historic structures, the construction of oversized buildings with large floor plates that eliminate a sense of human scale and walkability, a lack of diversity in building design, and a perceptible divide between areas with sterile institutional buildings and those containing neighborhood amenities like retail, restaurants, bars, etc.1 Fortunately, the RDA has already undertaken significant steps that will prevent Station Center from falling into the same trap. This includes the creation of the Station Center Design Guidelines, which will require new development to be compatible with the SLC Warehouse National Historic District that it is located within, the stabilization of the historic Salt Lake Mattress Company building, and support of the rehabilitation of Artspace’s Beehive Brick and City Center buildings. There are also long planned for infrastructure and streetscape improvements that include the reconstruction of 300 South into a “festival street” that can be closed and programmed as community gathering space, as well as the construction of three new mid-block streets to provide better access and permeability throughout the project. Improvements also include upgrading underground utilities to support denser development and a district-wide approach to streetscape design for an active and pedestrian-oriented neighborhood. Landscape, lighting, electrical, and civil engineering designs are approximately 60% complete, but the RDA’s design consultant is in the process of revising a portion of the plans to incorporate a reimagined concept for the center of the neighborhood on 300 South and Woodbine Court. 1 https://www.brookings.edu/blog/the-avenue/2019/02/21/innovation-districts-and-their-dilemmas-with-place/ Preliminary renderings of revised concept for Woodbine Court & 300 South 8 AFFORDABILITY, EQUITY & SUSTAINABILITY: The U-of-U team has expressed a commitment to the RDA’s vision of a robust, mixed-use neighborhood that meets the needs of a diverse population. The RDA sees Station Center as a unique opportunity to incorporate a high level of public benefit into one project. Potential public benefits that the team will explore include the following: • Housing for extremely low-income households (50% AMI and below), persons with disabilities, the elderly, and other populations at risk for homelessness due to their economic, health, or social circumstances. • Opportunities for affordable home/commercial ownership. • The development of housing that is more conducive to larger household sizes (i.e., 3-4 bedroom units). • Reduction of displacement risk of existing Salt Lake City businesses and barriers to entry for new ones through the provision of affordable commercial spaces with subsidized and/or below-market lease rates. • Solutions that provide equitable access to space and University support services to facilitate the growth cycle of a start-up company. • Programming that meaningfully closes the gaps between the City’s east and west sides by providing educational and/or job opportunities that support upward mobility. • Community health programming with a greater focus on equity and access, education, food security, and nutrition. • New development that is designed to operate without on-site fossil fuel combustion. • On-site renewable energy as well as on-site treatment of stormwater and other water-wise programs. • Implementation of strategies to reduce auto dependency and encourage use of alternative modes of transportation. 9 TENTATIVE TIMELINE AND NEXT STEPS: JUNE 2021: Present Station Center Innovation District concept to Redevelopment Advisory Committee (RAC). Present Station Center Innovation District concept to RDA Board of Directors. Q3 2021: Present property disposition strategy to RDA Board of Directors. Work with U-of-U to refine development strategy with further market analysis and detailed land use planning. Determine governance framework and mechanism for infrastructure maintenance funding. Q4 2021: Return to RDA Board of Directors with informational update on findings from further analyses and disposition/development plans. Execute RDA – U-of-U partnership agreement, an overarching agreement that establishes partnership roles and responsibilities, governance framework, protective covenants, development review processes, etc. Execute property disposition agreement with U-of-U. Q1 2022: Draft and release joint request for proposals (RFP) for first development phase. Q2 2022: Select developer for first phase of project. Return to RDA Board of Directors for informational update on selected proposal. Attachment B: Pre-Disposition Report Station Center Properties June 2021 Property Description: The RDA owns several parcels totaling approximately nine (9) acres and has options to purchase an additional 1.4 acres in what is referred to as the Station Center area roughly bounded by 500 – 600 West and 200 – 400 South. Project Area: Depot District Zoning: Gateway-Mixed Use District Property Type: Tier 1 Tier 1 Justification: The Property is classified as Tier 1 because the parcels meet the following categories: • Property within a strategic geographic location that is considered vital to the redevelopment of the project area, which geographic location is identified in the Project Area Plan. • Property is specifically identified in a Salt Lake City adopted master plan. • Property is a parcel or parcel assemblage that totals two or more contiguous acres in size. • Property is listed on the local or national register of historic places as historically significant (Site 2 – Salt Lake Mattress Company Building). Current Status: In early 2020, the RDA and University of Utah (U-of-U) Department of Real Estate Administration engaged in discussions on the establishment of a downtown University presence at Station Center. With the Mayor’s support, both parties commissioned a study by HR&A Advisors that evaluated the feasibility of partnering to create a University-anchored Innovation District, something that is specifically called for in Plan Salt Lake, the City’s Downtown Master Plan, and the Tech Lake City and BioHive initiatives. The Agency is currently working with the U- of-U to define a path forward to implement our joint vision for the project. Property Reuse Plan: In addition to creating a model of successful transit-oriented development, the RDA recognizes the unique opportunity to do something especially impactful with Station Center and aims to ensure that the project supports the following priorities: • Establish Station Center as the City’s flagship downtown hub of research and innovation activity, with a specific focus on the life sciences and community health sectors; • Create a comprehensive neighborhood with a robust mix of uses (affordable housing, office, research, retail, dining, and nightlife opportunities) that meet the needs of a diverse community; • Raise the bar for implementing affordable, equitable, and sustainable development and programming strategies; • Develop high-density, mixed-use buildings with active street-level uses; • Require development that complies with Station Center Design Standards and Guidelines and complements the urban form and character of the SLC Warehouse National Historic District; • Introduce new mid-block street connections and reconstruct the existing 300 South into a pedestrian- oriented “festival street” to serve as a public gathering space; • Upgrade utilities to support the future density of the neighborhood; • Implement strategies to reduce auto dependency and encourage use of the many nearby multi-modal transportation options; and • Support the potential for a permanent, year-round public market. Infrastructure Improvements: Staff is currently working with a consultant and multiple City Divisions to finalize the design/construction documents for proposed public improvements to be made in the area, including three (3) new mid-block streets, the reconstruction of 300 South into a pedestrian-oriented “festival street,” utility upgrades, and other streetscape improvements. The Board has allocated $8.9 million to construct Woodbine Court and to reconstruct 300 South and it has been anticipated that the remainder of the improvements may be funded with property disposition proceeds. Method of Disposition: The Real Property Disposition Policy allows for disposition via exclusive negotiation in certain circumstances, including if the sale or lease of property is to a non-profit or governmental agency for a community development or public use. The RDA is considering disposing of the property to the U-of-U through exclusive negotiation because the University is a Special Purpose Government Agency and the proposed Innovation District project would result in significant community and economic benefits for Salt Lake City. This includes activation of the Depot District in accord with multiple City plans and initiatives; expansion of the U-of-U’s highly successful technology commercialization efforts which results in new company creation and talent retention/attraction; increased innovation and research activity which creates employment opportunities and brings outside funding to the City that is trickled down through the local economy; provision of equitable opportunities for those not typically engaged in these sectors to access U-of-U spaces and support services; implementation of the City’s affordable and family housing priorities with a focus on displacement mitigation; creation of affordable commercial spaces for local businesses and nonprofits; community health programming; sustainable development strategies, and more. Potential Structure: Staff has evaluated several disposition options and the structures of other innovation districts across the country. Based on this evaluation and discussions with the U-of-U, the preferred structure is for the U-of-U to purchase the RDA’s property through a fee title sale. In turn, the University would ground lease/sub-lease the property to a private developer/end-user selected through a competitive Request for Proposals (RFP) process. Primary considerations of the preferred structure are outlined below: • RDA would sell its property to U-of-U at or near a fair market, appraised value. • RDA would be compensated for the full value of land upon sale, whereas a ground lease by the RDA would provide smaller lease payments over time. o Provides for a portion of the land sale proceeds to be used to fund construction of infrastructure improvements (with Board allocation). o Opportunity for remaining funds to be used to carry-out other RDA priorities across other project areas. • The U-of-U would maintain long-term ownership and preserve the Innovation District use through ground leasing to end-users. • U-of-U would use ground lease revenues obtained from sub-lessees to fund District programming and maintenance. One of the first steps in the overall process would be to execute a partnership agreement between the RDA and U-of- U that would establish partnership roles and responsibilities, the selected Innovation District governance structure, protective covenants and other restrictions to be placed on District properties, the development review process, etc. It is anticipated that the City will have representation within the Station Center governance entity, and that the RDA will participate in creation of the RFP(s), developer selection process, and design review of the selected development proposal(s). Tentative Timeline and Next Steps: While the timeline will be influenced by economic conditions and the complexity of the selected project, the RDA is estimating that the disposition schedule will be as follows: Q3 2021: Present property disposition strategy to RDA Board of Directors (BOD). Work with U-of-U to refine development strategy with further market analysis and land use planning. Determine governance framework and mechanism for infrastructure maintenance funding. Q4 2021: Return to RDA BOD with informational update on findings from further analyses and disposition/development plans. Execute overarching RDA – U-of-U partnership agreement. Execute property disposition agreement with U-of-U. Q1 2022: Draft and release joint request for proposals (RFP) for first development phase. Q2 2022: Select developer for first phase of project. Return to RDA BOD for informational update on selected proposal. Page | 1 RDA BUDGET STAFF REPORT REDEVELOPMENT AGENCY BOARD of SALT LAKE CITY TO:RDA Board Members FROM: Jennifer Bruno, Ben Luedtke and Allison Rowland Budget analysts DATE:June 1, 2021 RE: Redevelopment Agency (RDA) Budget – FY 2022 BUDGET BOOK PAGES: Key Changes B-49 to B-60, Department Overview E-87 to E-90, Staffing Document F-18 The Board reviewed this information at the May 18th and June 1st budget discussions. The Board received additional information from the Administration an indicated items of interest. The purpose of this staff report is to confirm what will be presented to the Board for adoption on June 15th. If the Board has any questions or concerns about the proposed changes to the recommended budget, please raise those issues at the June 8th meeting, so that staff has the opportunity to adjust adoption paperwork. 1.Shift Northwest Quadrant (inland port) housing money to “Westside Urban Land Fund” modeled after a Community Land Trust concept. Funds will be kept in a holding account pending further discussion with the Administration and approval by the Board. - $250,000 2.ADU program – fund via the “Secondary Housing Fund” – ($TBD) – Funds were originally recommended to be added to a larger loan pool for an affordable housing Notice of Funding Availability (NOFA). o Board members expressed a general interest in maximizing the number of units that could be delivered with the funding, as well as encouraging quality urban design. 3.North Temple Strategic Intervention – The Board supported consolidating various ideas into a single account for strategic intervention activities along North Temple, to be determined by RDA staff and approved by the Board. The following funding sources are proposed, totaling approximately $3 million: o North Temple Catalytic Project - $1.33m assuming the Board approves BA#9 and FY 22 budget as proposed)) – Board members expressed the view that this is similar in concept to strategic intervention and were comfortable allocating funds in this way. (Note: this includes shifting funds earmarked for this concept in the proposed FY 22 budget as well). o “Strategic Site Acquisition” – The Board expressed support for consolidating these funds into an account focused on strategic interventions along North Temple. o North Temple Viaduct CDA Increment (General Fund - $1m) – The Board expressed support for transferring funds from the General Fund, in excess of the amount required for debt service Project Timeline: 1st Briefing: May 18, 2021 2nd Briefing: TBD Budget Hearing: May 18, and June 1 Potential Action: June 8 or 15 (TBD) Page | 2 payments on the North Temple Viaduct bond, to be reinvested back in the North Temple Corridor. Council Action is also required to complete this transfer. o Holding account for capital investment in underserved communities – The Mayor’s recommended budget proposes allocating $1 million from this account to the Fairpark Public Market. This leaves $669,138 in that account, which will lapse to general fund balance unless the Council allocates it. The Board expressed support for allocating these funds for potential strategic intervention(s) in the North Temple corridor. Council action is also required to complete this transfer. 4.Prioritizing Family Sized Units and/or Homeownership models - As the RDA releases the next Notice of Funding Availability (NOFA) for affordable housing. The Board expressed interest in prioritizing these two criteria above other criteria also considered in evaluating projects applying for these dollars. 5.Energy efficiency requirements – the Board expressed support for moving forward with energy efficiency requirements more immediately. RDA staff indicates that they are working on a sustainability policy which will establish minimum thresholds for projects. The Board could schedule this policy for discussion when it is ready and in the interim could advise RDA staff to pause forwarding any loans/participation until that policy is adopted, unless they meet the anticipated policy. The following information was provided for the May 18th and June 1 RDA budget discussions. It is provided again for reference. Update/Follow up Information The Board initially discussed this item during the May 18th RDA meeting. RDA staff has provided the following additional information on new programs proposed in the FY 22 budget. Storefront and Commercial Revitalization Programs (Funding sources: CBD tax increment in BA#1 and FY 22, FY 22 Program Income Fund): “To better leverage resources, target community needs, support smaller-scale projects, and facilitate anti-displacement strategies, the RDA is working on proposed revisions to the RDA Loan Program and the development of a new Storefront Activation Program. It is envisioned that revisions to the RDA Loan Program will provide for the targeting of project-specific needs, including small-scale projects, tenant improvements, and the revitalization of existing/underutilized buildings. The intent of the Storefront Activation Program is to facilitate the occupancy of ground-floor commercial space by local and underrepresented businesses.” Sustainability Technical Assistance Program (Funding sources: FY 22 Program Income Fund): A new program to assist developers with implementing heightened sustainability standards that will increase resiliency and reduce negative impacts on the environment. Funding will be utilized to assist developers in performing sustainability activities, whether through direct funding to developers or through RDA-led trainings. Activities could include energy modeling, trainings by technical experts, and technical assistance for projects to acquire sustainability certifications. Cultural & Community Initiative Program (Funding sources: FY 22 Granary Tax Increment): A new program to reinforce public arts and cultural programming by supporting community organizations in better carrying out their missions or projects. The program is intended to be similar to Page | 3 the “Lighter, Quicker, Cheaper” model by incentivizing either small small-scale capital projects and/or capacity building. Projects could include building improvements, placemaking projects, community engagement efforts, and feasibility/planning studies. Eligible projects would need to demonstrate community involvement and support for the project. Staff made note of potential adjustments Board Members expressed interest in considering. The Board may wish to discuss and/or refine these ideas further in collaboration with RDA staff: 6.Shift Northwest Quadrant (inland port) housing money to “Westside Urban Land Fund” modeled after a Community Land Trust concept. Funds could be kept in a holding account pending further discussion with the Administration and approval by the Board. 7.Support an ADU program - Board members expressed support in general for a program to incentivize the construction of ADUs. o Board members expressed support for helping encourage ADUs City-wide. Note: If a program is funded and intended to be City-wide, units would have to be restricted to 80% AMI. The Board may wish to ask RDA staff if tracking/enforcing this would be possible, or if a Citywide plan for ADU assistance could be structured in a way to minimize ongoing administrative costs. o Board members also expressed support for helping encourage ADUs in the 9 Line project area, per the agreement with the County. Because that agreement anticipates a 5 year time horizon, and increment hasn’t yet started flowing, some board members suggested funding it in that area specifically. o Board members expressed a general interest in maximizing the number of units that could be delivered with the funding, as well as encouraging quality urban design. o Tammy – secondary housing account is discretionary housing 8.Increase funding/re-name North Temple Strategic Intervention. The Board expressed an interest in shifting the “strategic property acquisition” category to “North Temple Strategic Interventions”. Staff has identified some potential sources for increasing this line item, although these are very preliminary. The Board may wish to discuss these further with RDA staff, including asking for help identifying other legal sources of funds for this purpose: a. North Temple Catalytic Project (Current balance approximately $x – some board members have pointed out that this is a similar concept) b. Funds leftover in capital account set aside in the General Fund for investment in underserved communities ($669,138) c. PIF (reallocate from other programs TBD) 2.Prioritizing homeownership and/or family sized units - The Board indicated a desire to set aside some NOFA dollars with specific criteria for homeownership and/or family sized units Top of the priority list – not funding set aside 3.Evaluate funds not programmed as a part of the Budget Amendment Discussion. 4.Other areas of interest/potential legislative intents: a.Some Board Members expressed an interest in requiring energy efficient projects as a condition of any potential future RDA loan/investment as of July 1, 2021. The Administration is recommending this as a phased in strategy with a goal of 2023. b.Some Board Members have expressed an interest in understanding the full structure of accounts within the RDA including fund balances and capital projects funded in previous years. The Board may wish to discuss with the RDA staff the best way to get this information on a real-time basis. Staff note: The City’s Enterprise Resource Planning (ERP) effort will help in tracking/providing this information in a less labor-intensive way, although the horizon for full implementation could be a year or longer. The following information was provided for the Board’s initial briefing on May 18th. It is provided again for reference. ISSUE AT-A-GLANCE Page | 4 The Mayor’s FY 2022 Redevelopment Agency Recommended Budget includes tax increment spending in all project areas for projects, loan funds, as well as department administration. See page E-87 of the Mayor’s Recommended Budget book for an overview of the Department including the mission statement. Staff has also included Attachment 2 showing the RDA’s guiding framework which comprises the updated mission statement, core values and livability benchmarks. The total proposed FY 22 budget is $57.9 million which is $3.7 million more (6.8%) than FY21. RDA revenue includes tax increment, loan proceeds, parking garage and commercial space rental revenues, interest income and private donations for the Eccles Theater. The largest non-donation source of revenue is tax increment, which will generate $37.5 million in FY 22 from ten active project areas (up from $33m in FY 21). Note that the newly created 9-Line and State Street project areas will begin the first year of collecting tax increment which revenues will be part of the FY23 annual budget. The Administration could come to the Board with budget amendment funding requests for those projects in FY22. The 9-Line project area has received final approval for tax increment participation from the City, County and School District. The State Street project area has received final approval for tax increment participation from the City and School District but negotiations with the County are ongoing. New for FY 22 is tax increment from Stadler Rail, tax increment from the Northwest Quadrant CRA (north of I- 80), and the housing set-aside from the Inland Port Area per state legislation (shown as “NWQ Housing Fund” on page B-58). It’s important to note that tax increment must be used in the project area where it was generated (unless utilized for 80% AMI or below). Other agency revenue sources are more flexible and may be spent outside of project areas for housing and economic development purposes (within state law limitations). These other revenue sources include Program Income Fund, the Revolving Loan Fund, and Primary housing funds (including Inland Port housing set-aside). As a matter of policy, the Board has committed to using the Inland Port housing funds to benefit the western area of the City. The proposed budget for the RDA includes 19 FTEs for central RDA activities and 13 FTEs for Gallivan-related maintenance (budget for Gallivan-related maintenance is now handled in a donation account). Gallivan funding and FTEs were transferred to the RDA from the Public Services Department in the FY21 annual budget. The Administration indicates that the FY 22 RDA budget focused on two priority areas: Affordable Housing Development – This is discussed in further detail in a separate staff report and agenda item. Summary of budget line items for this goal are on page 4. Commercial Revitalization Program – Staff indicates that they “will be proposing revisions to the Agency’s loan policy to update it for commercial projects. The proposed revisions will focus on improvements to a building or site, decreasing vacancy rates for an area, provide missing retail or service opportunities, and create new commercial spaces. The proposed budget includes allocations for this initiative as well as other commercial development efforts within project areas.” This is proposed in the “Capital Projects” Account (see attachment 3), which means that funds will not lapse to fund balance at the end of each fiscal year. = Page | 5 Central Business District, $27,923,150 West Capitol Hill, $150,000 West Temple Gateway, $50,000 Depot District, $4,121,164 Granary District, $666,124 North Temple, $480,346 Block 70 , $10,939,263 North Temple Viaduct , $1,188,979 Northwest Quadrant CRA, $1,500,000 Stadler Rail, $71,000 Northwest Quad Housing Fund (Inland Port), $250,000 Revolving Loan Fund, $550,000 Program Income Fund, $1,742,535 Secondary Housing Fund, $394,000 Primary Housing Fund, $1,498,627 Housing Development Trust Fund, $2,590,000 *does not include previously allocated revenue, cash reserves (fund balances) or Capital project budgets, or previous Notice of Funding Availability (NOFA) for Housing The FY 22 budget continues the process of bringing budgeting for RDA dollars in line and in context with City budgets. The RDA budget is presented in the Mayor’s recommended budget book along with other departments. Some corrections have been made to the Key Changes section, so staff has included the corrected version as Attachment 4. RDA Capital Projects requests are included as Attachment 3. See page 5 for staff notes on these items. The Department budget is also shown in summary form on page E-89, and staffing document on page F- 18. The RDA budget will have follow-up discussions through May and June as needed. It will also have public hearings on May 18th and June 1nd with tentative adoption scheduled for June 8th or 15th. KEY ELEMENTS OF THE MAYOR’S FY 2022 RDA BUDGET PROPOSAL Staff has highlighted key areas of the Mayor’s Recommended FY 2022 RDA budget: 1.Administrative Budget – The FY 2022 budget includes transfers of tax increment and Program Income Fund revenues to cover the approximately $3.8 million Administrative budget. The 13 FTEs relating to the Gallivan center are budgeted in the donation account, although they are considered under the purview of the RDA, as reflected in the staffing document. The following charts delineate the sources of funding for the Administrative budget, as well as the specific uses: Page | 6 FY 2021 Adopted FY 2022 Proposed $ Ch ange % Ch ange Central Business District 2,506,650$ 2,757,315$ 250,665$ 10% West Capitol Hill 100,000$ 150,000$ 50,000$ 50% West Temple Gateway 50,000$ 50,000$ -$ 0% Depot District 576,642$ 588,175$ 11,533$ 2% Granary District 91,342$ 93,168$ 1,826$ 2% North Temple 42,681$ 43,535$ 854$ 2% Block 70 (does not allow for Administrative collection)-$ -$ -$ n/a North Temple Viaduct (limited to 1.5% of increment)17,375$ 17,722$ 347$ 2% Stadler Rail -$ 7,100$ 7,100$ Northwest Quadrant CRA -$ 150,000$ NWQ Housing Fund (10% from Inland Port Area - not intended for Admin)-$ -$ -$ n/a Revolving Loan Fund -$ -$ -$ 0% Program Income Fund 176,610$ -$ (176,610)$ Primary Housing Fund -$ -$ -$ 0% Total 3,561,300$ 3,857,015$ 295,715$ 8% RDA Administrative Budget - Sources Central Business District 72% West Capitol Hill 4% West Temple Gateway 1% Depot District 15% Granary District 2% North Temple 1%Northwest Quad CRA 4% FY 2022 Proposed Administrative Budget Sources Page | 7 RDA Administrative Budget - Uses FY 2021 Adopted FY 2022 Proposed %Change Notes Personal Services - RDA 2,100,484 2,254,632 9%154,148 Operating and Maintenance 308,116 360,000 14%51,884 Charges and Services 202,700 202,700 0%0 Administrative Fees 800,000 939,683 0%0 Furniture, fixtures, equipment 150,000 100,000 -25%(50,000) Total RDA Budget 3,561,300 3,857,015 295,715 Donation Fund - Gallivan Staff/Maintenance 1,171,996 1,044,389 (127,607) a. No official policy guides how much each district contributes to the Administrative budget, although to some extent it is related to available increment. The Central Business District is typically the largest contributor, although the percentage has varied. In FY 22 it is proposed to be 72% of the Administrative budget. The Board may wish to ask the Administration to evaluate the overall strategy for funding the Administrative budget in future years, particularly as project areas expire. For example, the Depot District will stop collecting tax increment after 2022 and that project area contributes 15% of the proposed FY22 administrative budget. Staff note: there is no statutory prohibition against using General Fund dollars to fund Redevelopment Agency employees, since they are City employees. The City’s elected officials could elect to reimburse RDA for a portion of the housing duties that they perform. b.Because RDA revenues are estimated, and can come in either higher or lower than projected, the Board may wish to discuss policy guidance on how the RDA should handle unexpected shortfalls in tax increment revenues, particularly as it relates to the Administrative budget, which is generally a fixed and ongoing cost (salary and benefits). Staff is inquiring about the level of fund balance remaining after this budget. Board Members previously expressed interest in aligning project area fund balances with fixed costs and contractual obligations to ensure sufficient funding is available to cover those expenses if tax increment significantly decreases in a future year. 2.RDA funding for housing – The Mayor’s Recommended FY 2022 budget reflects a continuation 0f the policy approach implemented as a pilot in FY 20, to streamline affordable housing development under the RDA and affordable housing programs under Housing and Neighborhood Development (HAND). One of the pilot goals was to create a “one-stop shop” for housing developers seeking financial assistance. The total housing investment proposed in the FY 22 budget is $4.7 million, an 18% increase over FY 21 investment levels. It should be noted that the Board could choose to allocate additional funds for housing programs from any of the project areas (subject to project area regulations), or program income fund. a. The RDA also continued funding for the “Primary Housing Fund” through transfers of tax increment from various project areas (based on state requirements at the time those project areas were adopted). The Secondary Housing fund reflects a transfer from the Northwest Quadrant CRA (north of I-80), to contribute to the “Housing Development Loan Program”. Funds from the 10% set-aside from the Inland Port jurisdictional area are reflected and tracked separately (page B-58). RDA Staff notes that the Secondary Housing Fund is intended to include transfers of increment above what is required by mandatory set-asides. b.The RDA is proposing a variety of strategies to implement various housing goals of the City with these funding sources. An initial discussion was held on May 4. These strategies will be discussed in more detail during a follow up briefing for that agenda item. Please refer to that staff report for policy questions on this issue and for a summary of ideas raised by Board Members in the May 4 discussion. Staff will track any edits/changes to the proposed programs and accounts along with the adoption of the overall RDA budget. The following chart summarizes the sources and proposed uses in the various accounts: Page | 8 Adopted 2021 Proposed 2022 $ Change % Change Housing Development Trust Fund Sources Transfer from General Fund/Funding our Future 2,590,000$ 2,590,000$ -$ 0% Uses Housing Development Loan Prgm (Holding Account)2,590,000$ 2,590,000$ -$ 0% Primary Housing Fund Sources Transfer from Depot 768,856$ 784,233$ 15,377$ 2% Transfer from Granary 121,789$ 124,225$ 2,436$ 2% Transfer from North Temple 85,362$ 87,069$ 1,707$ 2% Transfer from Stadler Rail n/a 7,100$ 7,100$ Transfer from Northwest Quadrant CRA n/a 150,000$ 150,000$ Interest Income 305,225$ 225,000$ (80,225)$ -26% Loan Repayments 80,225$ 70,000$ (10,225)$ -13% Uses Housing NOFA (new approach proposed for FY 22)1,363,779$ -$ (1,363,779)$ -100% Housing Development Loan Prgm (Holding Account)498,627$ 498,627$ new Strategic site acquisition (Holding Account)1,000,000$ 1,000,000$ new Secondary Housing Fund Sources Interest Income 44,000$ 44,000$ -$ 0% Transfer from Northwest Quadrant CRA -$ 350,000$ 350,000$ new Uses Housing Development Loan Prgm (Holding Account)-$ 394,000$ 394,000$ new Infill Housing Development 44,000$ -$ (44,000)$ Northwest Quadrant Housing Fund (Inland Port 10%) Sources UIPA Housing Allocation -$ 250,000$ 250,000$ new Uses Capital Exp - ADU Incentive Program -$ 250,000$ 250,000$ new Total 3,997,779$ 4,732,627$ 734,848$ 18% *Th is chart does not include funding still available from previous NOFAs. In addition, h ousing projects can also be funded through sources not specific to h ousing, like Program Income Fund , th e Revolving Loan Fund, or project area tax increment. Th ose are typically evaluated on a project by project basis. RDA Housing Programs Note: Some Board Members requested that the ADU Incentive Program be funded from a source other than the Northwest Quadrant Housing Fund, expressing a preference for those funds not to be expended until the Board has the opportunity to set priorities relating to those funds. 3.Redevelopment Agency Capital Projects Proposals – The FY22 RDA budget includes funding for 11 capital projects. Overall funding for RDA capital projects is $ 2,947,019. It should be noted that the Board sometimes approves millions in additional funding for capital projects in budget amendments throughout the fiscal year. RDA Budget Amendment #1 of FY21 also scheduled for a May 18 briefing includes several capital projects. A few capital projects having funding requests in both the FY21 budget amendment and the FY22 annual budget. The table below provides a summary of the FY22 proposed Page | 9 capital projects, identifies which projects are requesting funding in both budget openings and potential policy questions for the Board to consider. Like last year, the Administration is preparing a CIP Book that summarizes and provides further details on individual capital projects for the General Fund and Enterprise Funds including the RDA. At the time of publishing this staff report the CIP Book was forthcoming. The Board may wish to consider whether it would add value to encourage the Administration, in future years, to have RDA capital project requests go through the same public process/Citizen Advisory Board vetting and recommendations that General Fund CIP applications do. The Board has previously discussed that opportunities to leverage RDA funds with other City and private resources are enhanced when the information is processed in concert. Note: If approved by the Board, these would be considered capital accounts and funds would not lapse to the project area’s fund balance if unspent by the end of the fiscal year. The Board may wish to review these in detail now or may wish to defer discussion on some or all until after the budget season, as is done with the General Fund CIP. All General Fund and RDA Capital Projects must be approved by September 1 according to the City Attorney’s interpretation of the Utah Fiscal Procedures Act. Project Area Project Name FY22 Proposed Policy Questions / Notes Central Business District Storefront Revitalization $ 83,832 The Board may wish to ask: - How many storefronts could be improved at this funding level? - How would businesses find out about this new program? - Will the process be first come first served or will criteria provide prioritization? Block 70 Regent Street Parking Structure Capital Reserve $ 100,000 Contractual obligation to contribute towards maintenance and long-term capital repairs. PRI provides parking for the Eccles Theater The FY21 annual budget included $100,000 for the same purpose Station Center Infrastructure $ 332,179 Project does not have a funding target or total cost estimate. Designs for the new streets, public amenities and utilities have changed in recent years and are not finalized Note that RDA Budget Amendment #1 is also requesting $959,009 in additional funding for this project The Board may wish to ask: - What is the total approved funding for Station Center infrastructure?Depot District Environmental Remediation Station Center Sites 3 & 4 $ 200,000 The FY21 annual budget included $200,000 for the same purpose The Board may wish to ask: - How was the FY21 funding used? - What additional environmental remediation is known and are more tests needed to fully identify the need and total cost? Page | 10 Project Area Project Name FY22 Proposed Policy Questions / Notes Granary District Community & Cultural Initiative NEW PROGRAM $ 443,731 The Board may wish to ask: - What are the goals of this new program and how does it align with the RDA's recently updated guiding framework? - What can the program accomplish before the Granary District stops collecting tax increment in two years? - How would interested parties find out about this new program? - Will the process be first come first served or will criteria provide prioritization? - Is the FY22 funding in addition to the funding requested in RDA Budget Amendment #1 of FY21? 10% School Fund $ 30,474 Contractual obligation per Interlocal Agreement with School District North Temple Catalytic Project (Location TDB) $ 289,268 Project does not have a funding target or total cost estimate Note that RDA Budget Amendment #1 is also requesting $414,505 in additional funding for this project. The Board may wish to ask: - What is the total approved funding for the catalytic project? Northwest Quadrant Shared NWQ Costs $ 350,000 Note that RDA Budget Amendment #1 is also requesting $168,464 in additional funding for this project The Board may wish to ask: - Is there a list of expected future infrastructure projects and cost estimates for the shared costs? - What are the RDA's legal obligations, if any, to share costs in this project area? Program Income Fund Commercial Revitalization Program NEW PROGRAM $ 667,535 The Board may wish to ask: - What are the goals of this new program and how does it align with the RDA's recently updated guiding framework? - Will the program be available in all project areas or targeted to specific areas? - How would interested parties find out about this new program? - Will the process be first come first served or will criteria provide prioritization? Page | 11 Project Area Project Name FY22 Proposed Policy Questions / Notes Sustainability Technical Assistance Program NEW PROGRAM $ 200,000 The Board may wish to ask: - What are the goals of this new program and how does it align with the RDA's recently updated guiding framework? - Will the program be available in all project areas or targeted to specific areas? - How would interested parties find out about this new program? - Will the process be first come first served or will criteria provide prioritization? - How will the Sustainability Department be involved in the new program? Gallivan Repairs (Grand staircase and eastern expansion joint) $ 250,000 Contractual obligation per agreements and plaza ownership structure Project does not have a funding target or total cost estimate The FY21 annual budget included $250,000 for the same purpose TOTAL $ 2,947,019 Note: the capital projects budget does not include the four housing funds which are addressed in a separate section 4.Other highlights of FY 2022 RDA budget a.Commercial Revitalization Program – As discussed in the capital projects section above, this is a new focus area for FY 22, and is proposed to be funded through allocations from various project areas including CBD ($82,000), and Program Income Fund ($667,535). The Board may wish to discuss this program further with staff including goals and objectives. b.Program Income Fund – The primary source of funds for this account are revenues generated from the Gallivan parking structure (approx. $1.2m/year). The budget also includes rents for RDA commercial spaces. It is the most flexible funding in the RDA portfolio, as State law does not place limitations/expectations for how and where funds are spent. In recent years this account has been used to fill funding gaps for infrastructure projects in the Central 9th area and Station Center, as well as provide seed funds for new project areas (9-Line and State Street). This year the Administration is proposing to use these funds as follows: Page | 12 Program Income Fund - Proposed FY 22 Expenses FY 21 Adopted FY 22 Proposed Change Capital Expenditures - Commercial Revitalization Program -{Holding Account}--667,535 667,535 Professional Services 299,009 300,000 991 Miscellaneous Property Expense 300,000 300,000 - Capital Expenditures - Sustainability Technical Assistance Program -{Holding Account}- -200,000 200,000 Transfer to Administration 176,611 -(176,611) Marketing and Sales 25,000 25,000 - Project Area Seed Funds 505,215 -(505,215) Capital Expenditures - Gallivan Repairs -{Holding Account}-250,000 250,000 - Capital Expenditures - Project Area Art -{Holding Account}-250,000 -(250,000) Project Area Creation 100,000 -(100,000) Total Expenditures and Other Uses Budget 1,905,835 1,742,535 (163,300) c.New Project Area Seed Funds – While the proposed budget does not allocate additional dollars to the “Seed Funds” account, the Board may wish to ask the Administration if there are plans to utilize dollars allocated from previous years, in the coming year in the 9 Line or State Street areas, as those areas have not started to generate increment yet. It’s important to note that RDA Budget Amendment #1 for FY21 is requesting $176,611 additional funding for project area seed funds. d.Miscellaneous Property Expense. This is a line item that appears in various project areas and is not covered by the RDA Administrative budget. It covers things like maintenance, security, and property taxes for properties owned or managed by the RDA. Actual expenditures vary year to year, and any unspent funds lapse to that project area’s fund balance. Due to the unique nature of some RDA properties, the RDA obtains insurance separately from the City’s “self-insured” approach for City properties. The Board may wish to ask the Administration to evaluate if there are any opportunities for savings/streamlining in this area for certain RDA properties. Project Area / Fund FY 2021 Adopted FY 2022 Proposed Change % Change Central Business District $ 800,000 $ 975,000 $ 175,000 22% Depot District $ 100,000 $ 120,000 $ 20,000 20% Granary District $ 5,000 $ 5,000 $ - 0% Program Income Fund $ 300,000 $ 300,000 $ - 0% Total $1,205,000 $1,400,000 195,000$ 16% The Board may wish to ask the Administration for a report on actual expenditures from these line items. e.Revolving Loan Fund (RLF) – the FY 2022 budget proposes a RLF with a balance of $550,000 available to lend which is $302,000 (-35%) less than last year. Further, the FY21 budget was a year-over-year decrease from the FY20 budget by $220,963 (-21%). The Board may wish to discuss with the Administration if they are aware of pending requests for these funds. The Board may also wish to ask what is causing the three-year trend of decreasing available to lend balances in the RLF and if it’s expected to continue. Page | 13 f.Regent Street Maintenance – The Block 70 CDA budget includes an $80,000 allocation to the General Fund for Regent Street Maintenance. The Attorney’s Office indicates that tax increment funds can be used to maintain public infrastructure. The Board may wish to ask the Administration if this transfer is the long-term plan for maintenance on Regent Street when the Block 70 CRA ends in 2040. g.Gallivan Employees and Maintenance - the proposed budget continues the management of the 13 Gallivan Employees and maintenance under the RDA (funding through the donation account). The Board may wish to ask the Administration for a review of how this approach is working compared to the previous approach of managing those employees in the General Fund (Public Services Department), particularly as it relates to service level and programming. Due to the pandemic and related public event restrictions FY21 may be a difficult year to compare to recent years. h.Interest Income and Rental Income changes during COVID pandemic – The RDA budget includes increases for interest income in some project areas and decreases in others (see chart below). The general fund is projecting an overall decrease in interest income due to continued low rates on a national and state level. The RDA is proposing a decrease in rental income from $315,000 to $215,700 (Program Income Fund). The Board may wish to discuss with the RDA how these trends may change as the economic recovery continues. Project Area / Fund FY 21 Adopted FY 22 Proposed $ Change % Change Central Business District 300,000$ 350,000$ 50,000$ 17% West Capitol Hill 100,000$ 150,000$ 50,000$ 50% West Temple Gateway 50,000$ 50,000$ -$ 0% Depot District 180,000$ 200,000$ 20,000$ 11% Block 70 50,000$ -$ (50,000)$ -100% Stadler Rail -$ -$ Northwest Quad Housing Fund (Inland Port)-$ -$ Revolving Loan Fund*577,000$ 470,000$ (107,000)$ -19% North Temple Viaduct 1,500$ 7,500$ 6,000$ 400% Northwest Quadrant CRA -$ -$ Secondary Housing Fund 44,000$ 44,000$ -$ 0% Program Income Fund*260,500$ 250,000$ (10,500)$ -4% Granary District 40,000$ 45,000$ 5,000$ 13% North Temple 14,000$ 45,000$ 31,000$ 221% Primary Housing Fund*225,000$ 225,000$ -$ 0% Housing Development Trust Fund -$ -$ -$ Total 1,842,000$ 1,836,500$ (5,500)$ 0% *Includes interest on investments and interest earned on loans Interest Income 5.Trend in Increment Received - During the FY 19 budget cycle the Administration noted that actual increment received in a number of districts was lower than in previous years, which did not track with the overall increase in total property valuation in the City. Since that time the Administration worked with County staff and a consultant who have determined that it was an “anomaly,” and actual revenue received since then tracks more consistently with valuations. Staff has provided this information for Board context. The Board may wish to request a copy of the findings from the consultant’s work. Page | 14 Central Business District Depot District Block 70 North Temple Viaduct Northwest Quadrant CRA Granary District North Temple Northwest Quad Housing Fund (Inland Port) Stadler Rail West Capitol Hill West Temple Gateway 2018 $28,183,388 $3,800,000 $1,280,637 $410,762 $419,505 $197,262 $566,369 $643,389 2019 $22,915,000 $3,695,000 $1,610,000 $538,000 $508,000 $318,000 $535,000 $671,000 2020 $24,575,000 $3,768,900 $1,847,677 $1,135,601 $597,005 $418,441 $558,643 $- 2021 25,066,500 3,844,278 1,884,631 1,158,313 608,945 426,810 -- 2022 $27,573,150 $3,921,164 $1,922,323 $1,181,479 1,500,000 $621,124 $435,346 250,000 71,000 $- $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Project Area Tax Increment Revenue Trends a. North Temple Viaduct Debt service – The RDA created the North Temple Viaduct project area specifically to help offset the debt incurred by the City to issue bonds to rebuild/shorten the North Temple Viaduct in 2012. All increment except a small percentage for Admin is transferred to the general fund to offset this annual payment. The chart below provides a summary of tax increment received, annual debt service payment made by the City and the tax increment as a percent of those debt payments. In previous years the tax increment generated has not been sufficient to cover the full debt service payment (the general fund covers the remainder). However, starting in FY19, and continuing into FY 21, actual tax increment received exceeded debt service payments. The Board re-purposed this overage to re-invest on North Temple, and the Mayor’s recommended budget for the City includes a $1 million investment in a State Fair Park Public Market on North Temple. Staff is confirming whether there are any funds available this year to reinvest in a similar manner, or if it makes sense to keep adding to this debt service “reserve” account. Staff is confirming FY 22 actual debt service, but is providing this chart from FY 21 for context: Page | 15 0.0% 20 .0% 4 0.0 % 6 0.0 % 80.0% 100.0% 120.0% 140.0% $- $2 00,000 $4 00,000 $6 00,000 $800 ,00 0 $1,000,000 $1,200,000 FY13 Act ual FY14 Act ua l FY15 Actual FY16 Actual FY17 Act ua l FY18 Act ual FY19 Actual FY2 0 Actual FY2 1 Pr opo se d Nor th T emple Viaduct Annual Bond Pay ments by Y ear and RDA T ax I ncrement Contr ibution RDA Tax I nc rem e nt T ransf er to Gener al Fund for De bt Se rvice Tota l Annual Deb t Se rvice Pa y me nt for Se ries 2 012A B ond Tax Increm ent as Per cent of De bt Pay me nt b.Eccles Theater Site Operations – Per the terms of the operating agreement with Salt Lake County, the City/RDA are responsible for any operating shortfall that the County experiences in operating the ancillary sites around the Eccles Theater (Black Box, Regent Street Plaza, and Winter Garden). The FY 22 budget proposes $475,000 for this purpose. Consistent with the Council’s initial goals for the construction of the Eccles Theater, the UPACA Board continues to ask County staff to find innovative ways to increase programming in the spaces, with a primary goal of activation rather than purely revenue generation. Note as it relates to COVID: the County indicates that they are working with the Health Department to determine when, if, and how the Eccles Theater and ancillary spaces may be safely opened to the public. As of the timing of this staff report, the theater and ancillary spaces are operating at limited capacity. The Eccles Theater has applied for Federal assistance geared towards performing arts venues. As of the printing of this report County staff is awaiting response on that application. c.Block 70 Debt Reserve – Each year the RDA funds a certain reserve for Debt Service for the Eccles Theater. If the FY 2022 budget is adopted as proposed ($90,617 from Block 70 and $1.8 million from CBD), Block 70 would have a debt service reserve of approximately $7.2 million. This is kept in a capital account that will not lapse to fund balance each year, so it will continue to grow (interest income and future appropriations), as there is anticipated shortfall in Block 70 debt repayment sources in the coming fiscal years. RDA staff is working with finance to recalculate the exact amount of this gap. In 2018 it was calculated to be $7.5 million. If tax increment grows at a faster rate in Block 70, this gap will be smaller. The reserve account will cover debt in these years. Staff will continue working with the Administration to determine the appropriate level of this reserve account. The below graph, although dated from 2018, illustrates the projected funding gap assuming a conservative tax increment growth of 2%. Annual bond payments are shown as the red line and available resources are shown as the blue line. The Administration indicates that they are working on confirming the exact amount of funding needed to fill these gap years. Page | 16 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 Annual Debt Service In MillionsYear Regent Street Bond Ends in 2029 Eccles Theater Bond Ends in 2038 County Tax Increment Capped at $43 Million, Ends Approx. 2035 Block 70 Annual Bond Payments and Projected Revenues $7.5 Million Funding Gap {Note: this chart was prepared for the FY 18 budget cycle. The Board may wish to ask for the Administration to update. GENERAL POLICY QUESTIONS – 1.Project Area/Workload Prioritization – The Board may wish to continue the discussion of project area and/or staff workload prioritization. In January 2020 the Board approved two resolutions establishing survey boundaries for potential Community Reinvestment Areas at the University of Utah Research Park and Stadium Village, and discussions are ongoing. Additionally, Staff is continuing to work with the County to secure their support for the State Street project area and has recently received County support for the 9 line project area. Affordable Housing Development in the City is also an overarching workload handled by RDA staff. 2.Bonding for catalytic projects in new project areas – The Board may wish to ask the Administration whether they have a recommendation for bond-eligible catalytic projects in either the State Street or 9-Line project areas, particularly given the favorable interest rate environment. Based on previous discussions, the Board and Administration agreed that bonding early in project areas, as was done for Block 70 and Regent Street/Eccles Theater, makes financial sense (bonding capacity is maximized early in a project area). 3.Fund Balances for Project Areas with Ongoing Funding Obligations – The Board may wish to review with the Administration the levels of fund balances (“savings accounts” or “cash reserves”) for project areas with ongoing obligations such as the Central Business District which has bond debt service payments and agreements (such as Eccles, Regent Street, and Gallivan) and significantly contributes to the RDA’s annual administration costs. Page | 17 4.Evaluation of Public/Private Partnership Models - As the City and RDA consider the public / private partnership ideas that are periodically raised, the Board / Council could evaluate the model used with Gallivan and other Public/Private or multi-jurisdictional entities (Downtown Alliance, UPACA Board, Inland Port Board) to identify lessons learned, and pros/cons/variations in approach. A review of these different models could help future models establish role clarity, transparency expectations, and staff accountability upfront. 5.Pooled Resources vs. Project Area Resources – Some initiatives and projects previously funded with RDA tax increment have been funded by transferring funds out of one project area, into a pooled account, such as Primary Housing Fund or Revolving Loan Fund (via appropriation from Fund Balance). Because these accounts are flexible in terms of serving all project areas, this allows for a project area with limited tax increment to complete projects it might otherwise not be able to afford. There are not clear guiding policies that would help determine when it’s appropriate to use this approach for a given project or initiative, but in the past it has enabled the RDA to respond to unique opportunities/projects. 6.Consistency between RDA and City Policy – Currently the Board adopts policies to guide RDA investment that typically mirror City policies, although in some cases they are different and/or more targeted to RDA activities. The Board could adopt a blanket policy indicating that if the RDA does not have a policy for a given area, the City policy applies. ADDITIONAL & BACKGROUND INFORMATION Gallivan Utah Center Owners Association (GUCOA) GUCOA is the managing agency for the entire block through Covenants, Conditions & Restrictions (CCRs) and is responsible for maintenance and programming. The RDA is the majority owner (over 51%). The CCRs originally contemplated a contractor to provide maintenance and programming which has been provided by the Public Services Department after an RFP process. An assessment is levied on the first floor of adjacent commercial properties to contribute funding to administration, programming and events. The programming contract has requirements for a set number of events that must be open to the public annually. Gallivan also provides many free events to activate the space consistent with the Council/Board’s public policy goals for downtown. Project Area Expiration Dates Project areas have a designated expiration (aka sunset) date. State law allows RDAs to continue spending tax increment already collected in expired project areas such as Sugar House. Sometimes project areas can be extended/renewed for a longer length which happened to the Central Business District. The table below summarizes project area timeframes from creation to expiration. Project Area Initial Collection Year Last Collection Year Total # Years T.I. Collection Central Business District*1983 2040 58 Depot District 1999 2022 24 Granary District 2000 2023 24 North Temple 2012 2036 25 North Temple Viaduct CDA 2012 2036 25 Northwest Quadrant 2019 2038 20 Block 70 CDA 2016 2040 25 Stadler Rail 2019 2038 20 9-Line 2021 2040 25 State Street 2021 2040 25 NOTE: Only project areas that generate tax increment are listed in the table *The RDA Board extended the CBD from the original expiration year of 2007 ** The RDA Board extended the original expiration year to focus on 300 West streetscape improvements Statutory Definition of Project Area Development (Utah Code 17C-1-102(48)) Page | 18 The section of Utah Code below is a key list of allowable uses of RDA funds. The Utah Legislature updated this statute in the 2016 General Session. (47)"Project area development" means activity within a project area that, as determined by the board, encourages, promotes, or provides development or redevelopment for the purpose of implementing a project area plan, including: (a)promoting, creating, or retaining public or private jobs within the state or a community; (b)providing office, manufacturing, warehousing, distribution, parking, or other facilities or improvements; (c)planning, designing, demolishing, clearing, constructing, rehabilitating, or remediating environmental issues; (d)providing residential, commercial, industrial, public, or other structures or spaces, including recreational and other facilities incidental or appurtenant to the structures or spaces; (e)altering, improving, modernizing, demolishing, reconstructing, or rehabilitating existing structures; (f)providing open space, including streets or other public grounds or space around buildings; (g)providing public or private buildings, infrastructure, structures, or improvements; (h)relocating a business; (i)improving public or private recreation areas or other public grounds; (j)eliminating blight or the causes of blight; (k)redevelopment as defined under the law in effect before May 1, 2006; or (l)any activity described in Subsections (48)(a) through (k) outside of a project area that the board determines to be a benefit to the project area. ATTACHMENTS 1. Summary Comparison Budget Chart 2. RDA Guiding Framework Transmittal October 2019 (Mission, Core Values and Livability Benchmarks) 3. RDA FY 21 Capital Projects Request Log 4. REVISED – FY 22 RDA Key Changes (corrections from the Mayor’s Recommended Budget Book) Page | 19 ATTACHMENT 1 SUMMARY COMPARISON BUDGET CHART Dollars % Administration $ 3,454,246 $ 3,561,300 $ 3,857,015 $ 295,715 8% Block 70 $ 6,016,523 $ 10,953,363 $ 10,939,263 $ (14,100)0% Central Business District $ 17,125,075 $ 25,366,500 $ 27,923,150 $ 2,556,650 10% Citywide Housing (Primary Housing Fund) $ - $ 1,363,779 $ 1,498,627 $ 134,848 10% Depot District $ 2,233,062 $ 4,024,278 $ 4,121,164 $ 96,886 2% Granary District $ 35,843 $ 648,945 $ 666,124 $ 17,179 3% Housing Trust Fund $ - $ 2,590,000 $ 2,590,000 $ - 0% North Temple $ 33,370 $ 440,810 $ 450,346 $ 9,536 2% North Temple Viaduct $ 1,526,826 $ 1,159,813 $ 1,188,979 $ 29,166 3% Northwest Quad CRA (North of I-80) $ - $ - $ 1,500,000 $ 1,500,000 new Northwest Quadrant Housing Fund (Inland Port Legislation) $ - $ - $ 250,000 $ 250,000 new Program Income Fund $ 636,245 $ 1,905,835 $ 1,742,535 $ (163,300)-9% Project Area Housing (Secondary Housing Fund) $ 16,478 $ 44,000 $ 394,000 $ 350,000 795% Revolving Loan Fund $ - $ 852,000 $ 550,000 $ (302,000)-35% Stadler Rail $ - $ - $ 71,000 $ 71,000 West Capitol Hill $ 20,996 $ 100,000 $ 150,000 $ 50,000 50% West Temple Gateway (expired) $ 25,681 $ 50,000 $ 50,000 $ - 0% TOTALS $ 31,124,345 $ 53,060,623 $ 57,942,203 $ 4,881,580 9% Operating Budget by Division Division Budgets 2019-2020 Actuals 2020-2021 Adopted 2021-22 Proposed Difference Dollars % Personal Services 1,815,624$ 2,100,484$ 2,254,632$ 154,148$ 7% Operations and Maintenance 2,276,649$ 1,108,116$ 1,299,683$ 191,567$ 17% Charges and Services 21,881,937$ 31,782,155$ 30,100,552$ (1,681,603)$ -5% Interest and Bond Expense 5,150,135$ 13,984,334$ 15,962,163$ 1,977,829$ 14% Capital Expenditures -$ 4,085,534$ 8,325,173$ 4,239,639$ 104% TOTALS 31,124,345$ 53,060,623$ 57,942,203$ 4,881,580$ 9% By Function Department Budget FY 2019-20 Actuals FY 2020-21 Adopted FY 2021-22 Proposed Difference October 18, 2019 Guiding Framework This Guiding Framework is a strategic operational document outlining the methodology for evaluating and prioritizing projects requesting RDA financial assistance. The RDA’s Mission and Values form the foundation of the Guiding Framework, declaring the RDA’s purpose and the intended economic, social, and physical outcomes expected of RDA projects and partnerships. MISSION: The Redevelopment Agency of Salt Lake City revitalizes neighborhoods and business districts to improve livability, spark economic growth, and foster authentic communities, serving as a catalyst for strategic development projects that enhance the City’s housing opportunities, commercial vitality, public spaces, and environmental sustainability. VALUES: Economic Growth- We act as a responsible steward of public funds, taking a long-term view of investment, return, and property values. Community Impact- We prioritize projects and programs that demonstrate commitment to improving equity and quality of life for residents and businesses in Salt Lake City. Neighborhood Vibrancy- We cultivate distinct and livable built environments that are contextually sensitive, resilient, connected, and sustainable. PROJECT EVALUATION PROCESS: In the context of the Mission and Values, the RDA evaluates projects via three steps, which answer the following questions: 1.) Does the project meet the minimum THRESHOLDS required for RDA participation? 2.) To what degree does the project benefit the public by achieving defined LIVABILITY BENCHMARKS, thereby warranting RDA assistance? 3.) Does the project meet the CRITERIA outlined in existing RDA programs and policies, such as the RDA Loan Program or Tax Increment Reimbursement Program? *Spanning a 1-3 year time frame, Project Area Work Plans identify redevelopment objectives and strategic redevelopment projects for each project area, along with a corresponding schedule & budget for each project. The Project Area Work Plans will be based on relevant City policies and plans and the Project Area Plans that were adopted when the project area was created and will provide direction for the annual RDA budget process. Step 1: THRESHOLDS  Alignment with adopted City policies & plans  Alignment with Project Area Work Plans*  Financial viability with a demonstrated and reasonable need for public assistance Step 2: LIVABILITY BENCHMARKS Economic Growth  Leveraging  Timeliness  Return of Investment  Permanent Job Creation & Retention  Business Districts  Targeted Resources Community Impact  Public Space  Transit Opportunities  Local Business Opportunities  Mixed-Income Neighborhoods  Neighborhood Safety  Public Art  Community Support Neighborhood Vibrancy  Quality Materials  Site & Urban Design  Building Design & Architecture  Sustainability  Walkability  Historic Preservation  Adaptive Reuse Step 3: PROGRAM CRITERIA Evaluation of project according to respective RDA policies, programs and procedures EXHIBIT “A” TO RESOLUTION Project Project Description 21-22 Budget Operating Budget Impact 1 Storefront Revitalization Establishment of a Storefront Revitalization program to provide funding to businesses in CBD to complete building renovation projects. 83,832$ None. Subtotal $ 83,832 1 Station Center Infrastructure Appropriation of funds for Station Center infrastructure projects consisting of the construction of three new streets, reconstruction of an existing street, utility upgrades, and streetscape improvements to implement the Depot District Project Area Plan and Downtown Master Plan. 332,179$ None. 2 Enviromental Remediation Appropriation of funds to facilitate remediation and disposal of contaminated soils. 200,000$ None. Subtotal $ 532,179 1 Community & Cultural Initiatives Establishment of a new initiative to support public arts and cultural programming. $ 443,731 None. Subtotal $ 443,731 1 Catalytic Project Appropriation of funds to use for a catlytic project within the project area. Potential uses could include property acquisition, loan/incentive programs, or infrastructure improvements. $ 289,268 Impact will be determined on a case by case basis. 2 10% School Fund Based on an Interlocal Agreement with the SLC School District, the Agency is obligated to set aside 10% of the tax increment generated for improvements that benefit schools served by the project area. $ 30,474 None. Subtotal $ 319,742 1 Regent Street Parking Structure Capital Reserves Establishment of a reserve account to meet potential obligations in the future that are required under the contract with PRI which provides parking for the Eccles Theater. Under the agreement, the Agency is required to contribute towards the maintenance and long term capital repairs of the parking structure. 100,000$ None. Subtotal $ 100,000 1 Shared Costs Establishment of a reserve account for the portion of the tax increment expected to be used for redevelopment activities that benefit the entire NWQ Project Area, are system wide, or that benefit multiple property owners or parcels. $ 350,000 None. Subtotal $ 350,000 1 Commercial Revitalization Program The Commercial Revitalization Program will provide funding for future projects that provide visible improvements to a building or site, decrease vacancy rate of the area, provide missing retail or service opportunities, retain or create jobs, and/or create new commercial space. 667,535$ None. 2 Sustainability Technical Assistance Program Establishment of a program that provides technical assistance for projects in accordance with the RDA's Sustainable Development Policy. 200,000$ None. Block 70 Projects Northwest Quadrant Program Income Fund Projects Redevelopment Agency of Salt Lake City 2021-22 Capital Projects Central Business District Fund Projects Depot District Fund Projects Granary District North Temple Projects Gallivan Repairs Appropriation of funds to use for repairs needed on the roof, parking deck, ice rink cooling system, grand staircase, eastern expansion joint, and other issues on Gallivan Avenue. 250,000$ None. Subtotal $ 1,117,535 1 Housing Development Loan Program A permanent and annually renewable program that consolidates and centralizes resources for the development and preservation of affordable housing. Loans provided through the HDLP shall be funded directly from an individual fund source, with revenues, expenditures, interest, payments and repayments accounted for from the fund source to comply with applicable State and Local statutes. $ 498,627 None. 2 Strategic Site Acquisition Establishment of a reserve fund to use for acquisition of properties for the purpose of preserving, improving or increasing affordable housing units. $ 1,000,000 None. Subtotal $ 1,498,627 1 Housing Development Loan Program A permanent and annually renewable program that consolidates and centralizes resources for the development and preservation of affordable housing. Loans provided through the HDLP shall be funded directly from an individual fund source, with revenues, expenditures, interest, payments and repayments accounted for from the fund source to comply with applicable State and Local statutes. $ 394,000 None. Subtotal $ 394,000 1 Housing Development Loan Program A permanent and annually renewable program that consolidates and centralizes resources for the development and preservation of affordable housing. Loans provided through the HDLP shall be funded directly from an individual fund source, with revenues, expenditures, interest, payments and repayments accounted for from the fund source to comply with applicable State and Local statutes. $ 2,590,000 None. Subtotal $ 2,590,000 1 Accessory Dwelling Units Program Appropriation of funds to facilitate the construction of Accessory Dwelling Units with a priority within Agency project areas. Potential uses could include the creation and marketing of the program as well as related design or consulting expenses. The intent would be to increase the supply of ADUs and incentivize owners to make the units available to income targeted individuals. $ 250,000 None. Subtotal $ 250,000 Total Central Business District Fund/ Depot District/ Block 70/ North Temple/ Program Income Fund Capital Projects $ 7,679,646 NWQ Housing Fund Primary Housing Fund Secondary Housing Fund Housing Development Fund FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Central Business District Revenue and Other Sources Tax Increment 25,066,500 2,506,650 27,573,150 Interest Income 300,000 50,000 350,000 Total Revenues and Other Sources Budget 25,366,500 2,556,650 27,923,150 Expenses and Other Uses Taxing Entity Payment (60%)15,039,900 1,503,990 16,543,890 Eccles Debt Service Block 70 RDA Match 2,638,112 469,628 3,107,740 Transfer to Administration 2,506,650 250,665 2,757,315 Commercial Development Loan Program 250,000 (250,000) - Miscellaneous Property Expense 800,000 175,000 975,000 TI Reimbursement Jazz Arena 700,000 107,710 807,710 Gallivan Maintenance 528,543 (5,405) 523,138 TI Reimbursement 222 South Main 500,000 169,688 669,688 Gallivan Programming 200,000 50,000 250,000 Gallivan Administration 351,492 (11,010) 340,482 Eccles Debt Service Reserve 1,537,449 262,551 1,800,000 Parking Ramp Leases 64,355 - 64,355 Capital Expenditures - Japantown -{Holding Account}-250,000 (250,000) - Capital Expenditures - Storefront Revitalization -{Holding Account}-- 83,832 83,832 Total Expenditures and Other Uses Budget 25,366,500 2,556,650 27,923,150 Budgeted revenues and other sources over (under) expenditures and other uses - West Capitol Hill Revenue and Other Sources Interest Income 100,000 50,000 150,000 Total Revenues and Other Sources Budget 100,000 50,000 150,000 Expenses and Other Uses Transfer to Administration 100,000 50,000 150,000 Total Expenditures and Other Uses Budget 100,000 50,000 150,000 Budgeted revenues and other sources over (under) expenditures and other uses - REDEVELOPMENT AGENCY KEY CHANGES 1 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget West Temple Gateway Revenue and Other Sources Interest Income 50,000 - 50,000 Total Revenues and Other Sources Budget 50,000 - 50,000 Expenses and Other Uses Transfer to Administration 50,000 - 50,000 Total Expenditures and Other Uses Budget 50,000 - 50,000 Budgeted revenues and other sources over (under) expenditures and other uses - Depot District Revenue and Other Sources Tax Increment 3,844,278 76,886 3,921,164 Interest Income 180,000 20,000 200,000 Total Revenues and Other Sources Budget 4,024,278 96,886 4,121,164 Expenses and Other Uses TI Reimbursement Gateway 1,200,000 65,520 1,265,520.00 Primary Housing Fund 768,856 15,377 784,233.00 Capital Expenditures - 100 S Utilities -{Holding Account}-388,981 (388,981) - Capital Expenditures - Station Center Infrastructure -{Holding Account}-- 332,179 332,179.00 Transfer to Administration 576,642 11,533 588,175.00 Grant Tower Debt Service 275,800 (200) 275,600.00 TI Reimbursement Alta Gateway 260,000 119,960 379,960.00 TI Reimbursement Homewood Suites 110,000 (4,064) 105,936.00 Miscellaneous Property Expense 100,000 20,000 120,000.00 TI Reimbursement Cowboy Partners Liberty Gateway 94,000 (24,439) 69,561.00 TI Reimbursement Cicero 50,000 (50,000) - Capital Expenditures - Environmental Remediation Sites 3 & 4 -{Holding Account}-200,000 - 200,000.00 Total Expenditures and Other Uses Budget 4,024,278 96,886 4,121,164 Budgeted revenues and other sources over (under) expenditures and other uses - 2 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Granary District Revenue and Other Sources Tax Increment 608,945 12,179 621,124 Interest Income 40,000 5,000 45,000 Total Revenues and Other Sources Budget 648,945 17,179 666,124 Expenses and Other Uses Adaptive Reuse loan program -{Holding Account}-396,814 (396,814) - Capital Expenditures - Community/Cutural Initiative -{Holding Account}-- 443,731 443,731 Primary Housing Fund 121,789 2,436 124,225 Transfer to Administration 91,342 1,826 93,168 TI Reimbursement Artspace Commons 34,000 (34,000) - Miscellaneous Property Expense 5,000 - 5,000 Total Expenditures and Other Uses Budget 648,945 17,179 666,124 Budgeted revenues and other sources over (under) expenditures and other uses - North Temple Revenue and Other Sources Tax Increment 426,810 8,536 435,346 Interest Income 14,000 1,000 15,000 Total Revenues and Other Sources Budget 440,810 9,536 450,346 Expenses and Other Uses Capital Expenditures - Catalytic Project -{Holding Account}-270,086 19,182 289,268 Primary Housing Fund 85,362 1,707 87,069 Capital Expenditures - 10% School Construction Fund -{Holding Account}-42,681 (12,207) 30,474 Transfer to Administration 42,681 854 43,535 Total Expenditures and Other Uses Budget 440,810 9,536 450,346 Budgeted revenues and other sources over (under) expenditures and other uses - 3 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Block 70 Revenue and Other Sources Private Fundraising 800,000 (800,000) - Transfer From CBD Taxing Entity Payments 4,043,171 66,029 4,109,200 Transfer From CBD Eccles Debt Service RDA match 2,638,112 469,628 3,107,740 Transfer from CBD Eccles Debt Service Reserve Account 1,537,449 262,551 1,800,000 Tax Increment 1,884,631 37,693 1,922,323 Interest Income 50,000 (50,000) - Total Revenues and Other Sources Budget 10,953,363 (14,099) 10,939,263 Expenses and Other Uses Eccles Theater Debt Service 8,070,927 (2,718) 8,068,209 Reserve for Eccles Debt Service 480,959 (390,342) 90,617 Regent Street Bond Debt Service 981,087 467,653 1,448,740 Taxing Entity Payments (30%)565,390 11,307 576,697 Fundraising Fulfillment 150,000 (50,000) 100,000 Eccles Theater- Operating Reserve for Ancillary Spaces 475,000 - 475,000 Property and Liability Insurance 50,000 (50,000) - Regent Street Parking Structure Capital Reserves -{Holding Account}-100,000 - 100,000 Regent Street Maintenance 80,000 - 80,000 Total Expenditures and Other Uses Budget 10,953,363 (14,100) 10,939,263 Budgeted revenues and other sources over (under) expenditures and other uses 0 North Temple Viaduct Revenue and Other Sources Tax Increment 1,158,313 23,166 1,181,479 Interest Income 1,500 6,000 7,500 Total Revenues and Other Sources Budget 1,159,813 29,166 1,188,979 Expenses and Other Uses Debt Service Payment to Salt Lake City 1,142,438 28,819 1,171,257 Transfer to Admin 17,375 347 17,722 Total Expenditures and Other Uses Budget 1,159,813 29,166 1,188,979 Budgeted revenues and other sources over (under) expenditures and other uses - Northwest Quadrant Revenue and Other Sources Tax Increment - 1,500,000 1,500,000 Interest Income - - - Total Revenues and Other Sources Budget - 1,500,000 1,500,000 Expenses and Other Uses TI Reimbursement NWQ Phase I - 500,000 500,000 Transfer to Secondary Housing - 350,000 350,000 Shared Costs -{Holding Account}-- 350,000 350,000 Transfer to Primary Housing - 150,000 150,000 4 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Transfer to Admin - 150,000 150,000 Total Expenditures and Other Uses Budget - 1,500,000 1,500,000 Budgeted revenues and other sources over (under) expenditures and other uses - Stadler Rail Revenue and Other Sources Tax Increment - 71,000 71,000 Interest Income - - - Total Revenues and Other Sources Budget - 71,000 71,000 Expenses and Other Uses TI Reimbursement - 56,800 56,800 Transfer to Primary Housing - 7,100 7,100 Transfer to Admin - 7,100 7,100 Total Expenditures and Other Uses Budget - 71,000 71,000 Budgeted revenues and other sources over (under) expenditures and other uses - 5 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Revolving Loan Fund Revenue and Other Sources FY17 Beginning Balance Interest on Investment 470,000 - 470,000 Principal Payments 275,000 (220,000) 55,000 Interest on Loans 107,000 (82,000) 25,000 Total Revenues and Other Sources Budget 852,000 (302,000) 550,000 Expenses and Other Uses Available to Lend 852,000 (302,000) 550,000 Total Expenditures and Other Uses Budget 852,000 (302,000) 550,000 Budgeted revenues and other sources over (under) expenditures and other uses - Program Income Fund Revenue and Other Sources Parking Structure Income 1,242,335 - 1,242,335 Rents 315,000 (99,300) 215,700 Interest Income 250,000 - 250,000 Loan Repayments 88,000 (60,000) 28,000 Interest on Loans 10,500 (4,000) 6,500 Total Revenues and Other Sources Budget 1,905,835 (163,300) 1,742,535 Expenses and Other Uses Capital Expenditures - Commercial Revitalization Program -{Holding Account}-- 667,535 667,535 Professional Services 299,009 991 300,000 Miscellaneous Property Expense 300,000 - 300,000 Capital Expenditures - Sustainability Technical Assistance Program -{Holding Account}-- 200,000 200,000 Transfer to Administration 176,611 (176,611) - Marketing and Sales 25,000 - 25,000 Project Area Seed Funds 505,215 (505,215) - Capital Expenditures - Gallivan Repairs -{Holding Account}-250,000 - 250,000 Capital Expenditures - Project Area Art -{Holding Account}-250,000 (250,000) - Project Area Creation 100,000 (100,000) - Total Expenditures and Other Uses Budget 1,905,835 (163,300) 1,742,535 Budgeted revenues and other sources over (under) expenditures and other uses - 6 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Secondary Housing Fund (formerly Project Area Housing Fund) Revenue and Other Sources Interest Income 44,000 - 44,000 Transfer from NWQ - 350,000 350,000 Total Revenues and Other Sources Budget 44,000 350,000 394,000 Expenses and Other Uses Capital Expenditures - Housing Development Loan Program -{Holding Account}-394,000 Infill Housing Development 44,000 (44,000) - Total Expenditures and Other Uses Budget 44,000 (44,000) 394,000 Budgeted revenues and other sources over (under) expenditures and other uses - Primary Housing Fund (formerly Citywide Housing Fund) Revenue and Other Sources Transfer from Depot 768,856 15,377 784,233 Interest Income 225,000 - 225,000 Transfer from NWQ - 150,000 150,000 Transfer from Granary 121,789 2,436 124,225 Loan Repayments 82,547 (31,547) 51,000 Interest on Loans 80,225 (10,225) 70,000 Transfer from Stadler Rail - 7,100 7,100 Transfer from North Temple 85,362 1,707 87,069 Total Revenues and Other Sources Budget 1,363,779 134,848 1,498,627 Expenses and Other Uses Housing NOFA 1,363,779 (1,363,779) - Housing Development Loan Program -{Holding Account}-- 498,627 498,627 Strategic Site Acquisition -{Holding Account}-- 1,000,000 1,000,000 Total Expenditures and Other Uses Budget 1,363,779 134,848 1,498,627 Budgeted revenues and other sources over (under) expenditures and other uses (0) NWQ Housing Fund Revenue and Other Sources UIPA Housing Allocation - 250,000 250,000 Total Revenues and Other Sources Budget - 250,000 250,000 Expenses and Other Uses Capital Expenditures - Accessory Dwelling Unit program -{Holding Account}-- 250,000 250,000 Total Expenditures and Other Uses Budget - 250,000 250,000 Budgeted revenues and other sources over (under) expenditures and other uses - 7 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Housing Development Fund Revenue and Other Sources Funding Our Future Land Discounts and Financing 2,590,000 - 2,590,000 Total Revenues and Other Sources Budget 2,590,000 - 2,590,000 Expenses and Other Uses Housing Development Loan Program -{Holding Account}-2,590,000 - 2,590,000 Total Expenditures and Other Uses Budget 2,590,000 - 2,590,000 Budgeted revenues and other sources over (under) expenditures and other uses - 8 of 9 5/13/2021 2:41 PM FUND FY2021 Adopted Budget Full Time Equivalent Changes from FY2021 Budget FY2022 Recommended Budget Administration Revenue and Other Sources Transfer from Central Business District 2,506,650 250,665 2,757,315 Transfer from Depot District 576,642 11,533 588,175 Transfer from West Capitol Hill 100,000 50,000 150,000 Transfer from Granary District 91,342 1,826 93,168 Transfer from West Temple Gateway 50,000 - 50,000 Transfer from North Temple 42,681 854 43,535 Transfer From Program Income Fund 176,610 (176,610) - Transfer from North Temple Viaduct 17,375 347 17,722 Transfer from Northwest Quadrant - 150,000 150,000 Transfer from Stadler Rail - 7,100 7,100 Transfer from FC77 1,171,996 (1,171,996) - Total Revenues and Other Sources Budget 4,733,296 (876,281) 3,857,015 Expenses and Other Uses RDA Personnel 2,100,484 19 154,148 2,254,632 Gallivan Personnel 1,171,996 13 (1,171,996) - Administrative Fees 800,000 139,683 939,683 Operating & Maintenance 308,116 51,884 360,000 Charges and Services 202,700 - 202,700 Furniture, Fixtures and Equipment 150,000 (50,000) 100,000 Total Expenditures and Other Uses Budget 4,733,296 32 (876,281) 3,857,015 Budgeted revenues and other sources over (under) expenditures and other uses 0 TOTAL Revenue 54,232,619 57,942,203 TOTAL Expense 54,232,619 57,942,203 CIP Allocations detailed on Cap Projects tab 4,738,562 7,679,646 Appropriation of Fund Balance - - GRAND TOTALS 9 of 9 5/13/2021 2:41 PM ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 RDA TRANSMITTAL ______________________________ Date Received: 5/27/2021 Rachel Otto, Chief of Staff Date Sent to Council: 5/27/2021 TO: RDA Board of Directors DATE: 5/27/20201 Ana Valdemoros, Board of Directors FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Re-Appointment Recommendation: Redevelopment Advisory Committee STAFF CONTACT: Jessi Eagan jessi.eagan@slcgov.com DOCUMENT TYPE: Board Re-Appointment Recommendation: Redevelopment Advisory Committee RECOMMENDATION: The Administration recommends the Salt Lake City Redevelopment Agency Board consider the recommendation in the attached letter from the Mayor and re-appoint Mark Isaac as a member of the Redevelopment Advisory Committee. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 May 27, 2021 Salt Lake City Redevelopment Agency Board 451 S State Street Room 404 PO Box 145518 Salt Lake City, Utah 84114 Dear Board Chair Valdemoros, Listed below is my recommendation for membership re-appointment to the Redevelopment Advisory Committee. Mark Issac – to be re-appointed for a final term ending the third Monday in January, 2025, starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this re-appointment. Respectfully, Erin Mendenhall, Mayor Cc: File