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HomeMy WebLinkAbout05/17/2022 - Meeting MaterialsBoard of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA May 17,2022 Tuesday 2:00 PM Council Work Room 451 South State Street Room 326 Salt Lake City,UT 84111 SLCRDA.com In accordance with State Statute,City Ordinance and Salt Lake City Council Policy,one or more RDA Board Members may be connected via speakerphone.After 5:00 p.m.,please enter the City &County Building through the main east entrance. 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:08:12:45 The RDA Board has returned to a hybrid meeting approach.The hybrid meeting enables people joining remotely or in-person to listen to the Board meeting and participate during public comment items. Public Comments:The public can give comments to the Board during the meetings online through Webex or in-person in Room 326 of the City and County Building.In-person attendees can fill out a comment card and online participants will register through Webex in order to be added to the comment queue. Agenda &Registration Information:For more information,including Webex connection information,please visit www.slc.gov/council/virtual-meetings. (A phone line will also be available for people whose only option is to call in.) Public Health Information:Masks are no longer required in City Facilities, but are welcome for any attendees who prefer to continue using them.We will continue to monitor the situation take any reasonable precautions for the public and staff. 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.Overview of the Redevelopment Agency Budget for Fiscal Year 2022-23 ~2:05 p.m. 60 min The Board will receive a general overview of the proposed budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2022-23.The Board will continue to discuss the Mayor’s Recommended Budget over the next several weeks and will have public hearings on Tuesday May 17,2022 and Tuesday,June 7,2022 at 7 p.m.The Board expects to adopt the budget in mid-June. 2.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. 3.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 Scheduling Items. D.Written Briefings –the following briefings are informational in nature and require no action of the Board.Additional information can be provided to the Board upon request: NONE. E.Consent –the following items are listed for consideration by the Board and can be discussed individually upon request.A motion to approve the consent agenda is approving all of the following items: NONE. F.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 May 13,2022,the undersigned,duly appointed City Recorder,does hereby certify that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda,including but not limited to adoption,rejection,amendment,addition of conditions and variations of options discussed. The City &County Building is an accessible facility.People with disabilities may make requests for reasonable accommodation,which may include alternate formats,interpreters,and other auxiliary aids and services.Please make requests at least two business days in advance.To make a request, please contact the City Council Office at council.comments@slcgov.com,801-535-7600,or relay service 711. 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 DATE:May 17, 2022 RE: Redevelopment Agency (RDA) Budget – FY 2023 BUDGET BOOK PAGES: Key Changes pages 73-84, Department Overview 223-226, Staffing 262-263 The City’s Redevelopment Agency is a tool of the City, as enabled by state law, that allows for the capture of property tax increment in defined areas to reinvest in communities. The stated mission of the SLC RDA is “to revitalize 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.” The Mayor’s FY 2023 Redevelopment Agency recommended budget includes tax increment spending in all project areas for projects, loan funds, as well as department administration. See page 223 of the Mayor’s Recommended Budget book for an overview of the Department including the full mission statement and core values. Staff has also included Attachment 1 showing the RDA’s updated guiding framework adopted by the Board in December 2021, which comprises the mission statement, core values and livability benchmarks. The total proposed FY 23 budget is $63.3 million which is $1.4 million more (2.2%) than FY22. 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 $41.4 million in FY 23 from eleven active project areas (up from $37.5m in FY 21). New revenue-generating areas this year include 9-Line and State Street. The Administration indicates that the FY 23 RDA budget focused on three priority areas: Affordable Housing Development – see section starting on page 3 for more information on this item Commercial Revitalization Program – Staff indicates that they “will be proposing revisions to the Agency’s loan policy to update it for commercial development opportunities. The proposed budget includes allocations for this initiative that will be made available once the program is approved”. This is proposed in the “Capital Projects” Account in various project areas, which means that funds will not lapse to fund balance at the end of each fiscal year. Infrastructure – The proposed budget includes funds for major infrastructure projects including the Folsom Corridor and Japantown Area. Funds are also proposed for a master plan for Gallivan Center to guide potential future improvements and repairs, and for design for closing Main Street downtown to vehicular traffic. 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. The proposed FY 23 budget only includes increment from the City and School District. To the extent the County agrees to participate and at what level, the Board may amend the increment budgeted. Project Timeline: 1st Briefing: May 17, 2021 2nd Briefing: TBD Budget Hearing: May 17, and June 7 Potential Action: June 14 (TBD) Page | 2 It’s important to note that tax increment must be used in the project area where it was generated (unless utilized for housing affordable at 80% area median income aka 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 listed in the Additional Info section). Some RDA divisions are funded through pass-through allocations from project areas or other revenue sources (see chart below), which increase flexibility of those funds but reduce available budget in project areas. 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 following chart outlines the operating budget for each division of the RDA, and separates those that are funded through tax increment, and those that are funded through pass-through revenue from project areas: Dollars % Central Business District $ 2 7,923,150 $ 2 7,596,650 $ (326,500)-1% Block 70 $ 10,939,263 $ 10,915,154 $ (24,109)0% Depot District $ 4,121,164 $ 4,049,587 $ (71 ,57 7 )-2% Granary District $ 666,124 $ 648,546 $ (1 7 ,57 8)-3% North T emple* $ 4,162,736 $ 449,053 $ (3,71 3,683)-89% North T emple Viaduct $ 1,188,979 $ 1,206,609 $ 17,630 1% Northw est Quad CRA (North of I-80) $ 1,500,000 $ 908,100 $ (591,900)-39% Westside Community Initia tive (Inland Port Legislation) $ 2 50,000 $ 500,000 $ 250,000 100% Stadler Rail $ 71,000 $ 7 2 ,920 $ 1,920 3% State Street - new $ - $ 2 ,631,183 $ 2,631 ,183 new 9 Line - new $ - $ 1,47 7,727 $ 1 ,47 7 ,7 27 new Administration $ 3,857,015 $ 3,998,655 $ 1 41,640 4% Housing Develoment Fund $ 2 ,590,000 $ 5,230,000 $ 2,640,000 102% Prima ry Housing Fund $ 1,498,627 $ 1,599,880 $ 1 01 ,253 7% Secondary Housing Fund $ 394,000 $ 10,000 $ (384,000)-97% Program Income Fund $ 1,997,750 $ 1,556,835 $ (440,91 5)-22% Revolving Loan Fund $ 550,000 $ 345,000 $ (205,000)-37% West Capitol Hill (expired) $ 150,000 $ 100,000 $ (50,000)-33% West Temple Gateway (expired) $ 50,000 $ 5,000 $ (45,000)-90% TOTALS $ 33,986,658 $ 35,7 04,249 $ 6,292,535 23% Project Areas - Funded primarily with T ax I ncrement: Accounts funded internally (with transfers from GF or other project areas) Other *Ref lects significant one-time transfers from other divisions in FY 22 RDA Divisions 2021-22 Adopted Difference2022-23 Proposed Page | 3 Central Business District, 27,596,650 West Capitol Hill, 100,000 West Temple Gateway, 5,000 Depot District, 4,049,587 Granary District, 648,546 North Temple, 449,053 Block 70 , 10,915,154 State Street, 2,631,183 9 Line, 1,477,727 North Temple Viaduct , 1,206,609 Northwest Quadrant CRA, 908,100 Stadler Rail, 72,920 Northwest Quad Housing Fund (Inland Port), 500,000 Revolving Loan Fund, 345,000 Program Income Fund, 1,556,835 Secondary Housing Fund, 10,000 Primary Housing Fund, 1,599,880 Westside Community Initiative (Housing $ from Inland Port), 500,000 Housing Development Trust Fund, 5,230,000 *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 23 budget continues the process of bringing budgeting for RDA dollars into context with other City department budgets, and it is included in the Mayor’s recommended budget book. The Department budget is shown in summary form on page 223, and staffing document on page 262. The RDA budget can have follow-up discussions through May and June as needed. It will also have public hearings on May 17th and June 7nd with tentative adoption scheduled for June 14th. KEY ELEMENTS OF THE MAYOR’S FY 2023 RDA BUDGET PROPOSAL Staff has highlighted key areas of the Mayor’s Recommended FY 2023 RDA budget: 1.RDA funding for affordable housing – The Mayor’s Recommended FY 2023 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 the Housing Stability Division of the Community and Neighborhoods Department. One of the pilot goals was to create a “one-stop shop” for housing developers seeking financial assistance in delivering affordable housing in the City (affordable housing investment is not limited to RDA project area boundaries). When including the $4m in seed funds from ARPA, the total housing investment proposed in the FY 23 RDA budget is $11.3 million, a 140% increase over FY 22 investment levels (a 55% increase if not including ARPA dollars). 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. See chart below for more details on distribution of funds: a.The RDA proposed a variety of strategies to implement various housing goals of the City with these funding sources, which the Board adopted in April. The focus areas for this year are: Deeply Affordable Housing - Expand the availability of units for extremely low- income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is often defined as affordable to person’s with incomes below 50% AMI. Family Housing - Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes such as three or more bedrooms. Page | 4 Affordable Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through affordable homeownership. Missing Middle Housing Promote an array of housing forms to diversify the City’s housing stock and provide more affordable living options for residents. b. Staff has attached the final guiding document, approved by the Board in April, for reference (see Attachment 2) c.The Board may wish to discuss with staff a strategy if no proposals are received that achieve one of the four above goals, particularly family housing. Previously the board has made the choice to earmark a certain portion of funds for affordable housing in high opportunity areas, and make it available over multiple fiscal years pending successful applications because it is especially hard for the market to deliver. d. The following chart summarizes the sources and proposed uses in the various accounts: Page | 5 Adopted 2022 Prop osed 2023 $ Ch ange % Change Hou sin g Develop men t Fu n d Sources Transfer from General Fund/Funding our Future 2,590,000$ 2 ,590,000$ -$ 0 % Additional funding amount from North Temple Viaduct account 1,000,000$ 1,000,000$ ne w Interest on Investment 15,000$ 15,000$ n/a Loan Repayments 1,370,000$ 1 ,370,000$ n/a Interest on Loans 255,000$ 255,000$ n/a Uses Housing Development Loan Prgm (Holding Account)2,590,000$ 4,230,000$ 1 ,640,000$ 6 3% Aff ordable Housing Acquisition Prgm (Holding Account)1,000,000$ ne w Tota l Hou sin g Developmen t Fu n d 2,590,000$ 5,230,000$ ########1 0 2% Prima ry Hou sin g Fu n d Sources Transfer from Depot 784,233$ 799,917$ 15,684$ 2% Transfer from S tate street -$ 263,118$ 263,118$ n/a Transfer from 9 Line -$ 147 ,773$ 147,773$ n/a Interest Income 225,000$ 50,000$ 7,1 00$ -7 8% Transfer from Northwest Quadrant CRA 150,000$ 90,310$ 150,000$ -40 % Transfer from Granary 124,225$ 126,709$ 2,484$ 2% Loan Repayments 51,000$ 23,000$ (28,000)$ -5 5 % Interest on Loans 70,000$ 3,000$ (67,000)$ -9 6% Transfer from S tadler Rail 7,100$ 7,242$ 142$ 2% Transfer from North Temple 87,069$ 88,811$ 1,742$ 2% Uses Property Acquisition 498,627$ 1,599,880$ 1 ,101,253$ 22 1 % Transfer out to North Temple for Strategic Acquisition 1,000,000$ -$ (1,000,000)$ n/a Tota l Prima ry Hou sin g Fu n d 1,498,627$ 1,599,880$ 101,253$ 7% Westsid e Commu n ity I n itia tive Sources UIPA Housing Allocation 250,000$ 500,000$ 500,000$ 20 0 % Uses Housing Development Loan Program (Holding Account)250,000$ 500,000$ 250,000$ 1 0 0 % Westside Commu n ity I n itiative - RDA fu n d s 250,000$ 500,000$ 250,0 00$ 1 0 0 % Westsid e Commu n ity I n itia tive - ARPA fu n d s 4,000,000$ ne w Secon d a ry Hou sin g Fu n d Sources Interest Income 44,000$ 10,000$ (34,000)$ -7 7 % Transfer from Northwest Quadrant CRA 350,000$ -$ (350,000)$ ne w Uses ADU Program Holding Account 394,000$ 10,000$ (384,000)$ -9 7 % Tota l Secon da ry Hou sin g Fu n d 394,000$ 10,000$ (384,0 00)$ -9 7 % Tota l 4,7 32,627$ 1 1 ,339,880$ 6,607,253$ 140% *This chart does not include funding still available from previous NOFAs. In addition, housing projects can also b e funded through sources not specific to housing, like Program Income Fund , the Revolving Loan Fund, or project area tax increment. Those are typically evaluated on a project by project basis. RDA Hou sin g Progra ms Page | 6 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 can set priorities relating to those funds. e. Westside Community Initiative – This initiative is funded from the 10% set aside from tax increment in the Inland Port jurisdictional boundary, as mandated by the Inland Port enabling state legislation. It started receiving revenue in FY 22. In a FY 22 Budget Amendment, the Council approved dedicating $4 million from ARPA dollars towards this initiative as seed funds (note: in order to comply with federal reporting requirements, these dollars are tracked in the City Grants fund and not the RDA fund, although RDA staff will be overseeing how those dollars are spent). Including the $4 million from ARPA, if the FY 23 budget is adopted as proposed, the total budgeted balance in this initiative is $4.9 million. If tax increment is larger than the proposed $500,000 budget, that amount will be higher. Spending $4m from ARPA quickly - RDA staff indicates that they will be meeting with Finance to “discuss the timing, terms, restrictions, etc. Then we would present the proposed use of funds to the Board for discussion and what I assume would be a budget amendment to allocate toward specific uses.” In general they are planning to balance the funds “between projects that can provide an immediate impact and developments that have a longer-term benefit” and using some of the “funds to buy property that can be developed for a targeted use focused on the housing priorities (most likely home ownership and family housing).” 2.Administrative Budget – The FY 2023 budget includes transfers of tax increment revenues to cover the approximately $4 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: FY 2022 Adopted FY 2 02 3 Proposed $ Change % Change Central Business District 2,757,315$ 2,757 ,315$ -$ 0% West Capitol Hill 150,000$ -$ (150,000)$ -150% West Temple Gateway 50,000$ 5,000$ -$ 0% Depot District 588,175$ 599,938$ 11,53 3$ 2 % Granary District 93,168$ 95,032$ 1,826$ 2 % North Temple 43,535$ 44,405$ 854$ 2 % Block 70 (does not allow for Adm inistrative collection)-$ -$ -$ n/a North Temple Viaduct (lim ited to 1.5% of increm ent)17,722$ 18,077$ 3 47$ 2 % Stadler Rail 7,100$ 7,2 42$ 7,100$ Northwest Qua drant CRA 150,000$ 90,310$ State Street (new)-$ 2 63,118$ 9 Line (new)-$ 118,218$ NWQ Housing Fund (1 0% from I nland Port Area - not intended for Adm in)-$ -$ -$ n/a Revolving Loan Fund -$ -$ -$ 0% Program Income Fund -$ -$ (176,610)$ Primary Housing Fund -$ -$ -$ 0% Tota l 3,857,015$3,998,655$ 295,7 15$ 8% RDA Ad min istra tive Bu d get - Sou rces Page | 7 Central Business District 71% West Capitol Hill 4% West Temple Gateway 1% Depot District 15% Granary District 2% North Temple 1%Northwest Quad CRA 4% Primary Housing Fund 0% FY 2023 Proposed Administrative Budget Sources RDA Administrative Budget - Uses FY 2022 Adopted FY 2023 Proposed %Change Personal Services - RDA 2,254,632 2,480,095 10%225,463 Operating and Maintenance 360,000 300,000 -17%(60,000) Charges and Services 202,700 218,560 8%15,860 Administrative Fees 939,683 1,000,000 6%60,317 Furniture, fixtures, equipment 100,000 0 0%(100,000) Total RDA Bu dget 3,857,015 3,998,655 295,715 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 23 it is proposed to be 71% 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 2024 and that project area contributes 15% of the proposed FY23 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. Page | 8 3.Redevelopment Agency Capital Projects Proposals – The FY2023 RDA budget includes funding for 18 capital projects. Overall funding for RDA capital projects is $13,278,181. 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 #2 of FY2022 included 15 capital project items. Some of the items in the budget amendment are proposed to receive additional funding in the annual budget. The table below provides a summary of the FY2023 proposed capital projects, identifies which projects already have funding approved by the Board in earlier 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/resident 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. In addition to the proposed projects in the table below, the Board may also wish to ask for a status update on new pilot programs funded last calendar year including: - Central Business District Storefront Revitalization pilot program $83,832 - Central Business District Commercial Development Loan Program $818,354 - Commercial Revitalization pilot program $667,535 - Granary District Community & Cultural Initiative pilot program $731,904 - Sustainability Technical Assistance pilot program $200,000 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 FY2023 Proposed Description Policy Questions / Notes Central Business District (subtotal $1,384,061) Japantown $ 250,000 Appropriation of funds to support implementation of the Design Strategy. Improvements could include infrastructure, utility work, lighting, site furniture, public art, etc. The Board approved $250,000 in the FY2021 RDA annual budget for this same purpose What public engagement will occur and how will amenities be selected? What is the total cost of improvements from the design strategy? Page | 9 Project Area Project Name FY2023 Proposed Description Policy Questions / Notes Main Street Closure $ 300,000 Appropriation of funds to support the transition of Main Street to a pedestrian-first promenade. Funds would primarily be used to hire a consultant to provide design/planning work, code analysis, phasing, and stakeholder engagement. Is the requested amount enough to fully fund the feasibility and design study? What stakeholders will be involved in the study such as the Downtown Alliance, property owners fronting on Main Street, the Utah Transit Authority, City Transportation Division, etc? Would Main Street be closed from South Temple to 400 South? What about east-west cross traffic? Gallivan Master Plan $ 100,000 Appropriation of funds to develop an overall Master Plan focusing on urban design enhancements and a capital repair plan that can improve future programming and support maintenance needs. How would the Gallivan Utah Center Owners Association (GUCOA) be involved? Would the Board have a chance for an interim check in briefing to provide early policy guidance as the Council does for City master plans? Property Acquisition $ 734,061 Establishment of a reserve fund for acquisition of properties for the purpose of preserving, improving or increasing affordable housing units. Is the requested amount enough to purchase property in the CBD? West Capitol Hill (subtotal $100,000) Expected Project Cost Overuns Holding Account $ 100,000 Appropriation of funds to use for current projects within the project area that need additional funding due to current market conditions. The Board approved $488,141 for the same purpose in FY2022 RDA Budget Amendment #2 Depot District (subtotal $524,732) Reimburse Revolving Loan Fund $ 524,732 Reimburse the Revolving Loan Fund for $550K that was reallocated to Central Station Property Acquisition, with FY 2022 BA2. Granary District (subtotal $421,805) Strategic Intervention Fund Holding Account $ 421,805 Holding Account established for strategic intervention activities in the Granary District Project Area, to be determined by RDA staff and approved by the Board. What types of strategic interventions could be accomplished before the project area stops collecting tax increment in three years? Page | 10 Project Area Project Name FY2023 Proposed Description Policy Questions / Notes 10% School Fund Holding Account $ 31,084 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. Contractual obligation per Interlocal Agreement with School District North Temple (subtotal $315,837) Folsom Corridor $ 284,753 Appropriation of funds to use for property acquisition and environmental remediation along Folsom Corridor. Block 70 (subtotal $100,000) Regent Street Parking Structure Capital Reserves $ 100,000 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. The Board approved $163,681 for the same purpose in FY2022 RDA Budget Amendment #2 and another $100,000 in FY2021 RDA annual budget Northwest Quadrant (subtotal $95,310) Shared Costs Holding Account $ 95,310 Establishment of a reserve account for a portion of the tax increment as approved within the project area budget. The funds are first prioritized for redevelopment activities that benefit the entire NWQ Project Area, are system wide, or that benefit multiple property owners or parcels. Note that the Board previously approved $518,464 in 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? State Street (subtotal $2,104,947) Property Acquisition Holding Account $ 2,104,947 Establishment of a reserve fund for the strategic acquisition of properties. The Board approved $1,631,183 for Ballpark Strategic Development holding account which could be used for the same purpose in FY2022 RDA Budget Amendment #2 9-Line (subtotal $959,774) Property Acquisition Holding Account $ 959,774 Establishment of a reserve fund for the strategic acquisition of properties. The Board approved $962,708 for the same purpose in FY2022 RDA Budget Amendment #2 Page | 11 Project Area Project Name FY2023 Proposed Description Policy Questions / Notes Program Income Fund (subtotal $931,835) Commercial Revitalization Program $ 931,835 A permanent and annually renewable program that consolidates and centralizes resources for commercial loans. The Board approved $667,535 for this program in the FY2022 annual budget. In FY2021 the Board approved $818,354 for a Commercial Development Loan Program in the CBD which may overlap with this program. 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? Primary Housing Fund (subtotal $1,599,880) Property Acquisition $ 1,599,880 Establishment of a reserve fund to use for acquisition of properties for the purpose of preserving, improving or increasing affordable housing units. Secondary Housing Fund (subtotal $10,000) Accessory Dwelling Unit Program $ 10,000 Appropriation of funds to facilitate the construction of Accessory Dwelling Units with a priority on units located 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. The Board approved $300,000 for the same purpose in FY2022 RDA Budget Amendment #2 which is limited to the 9- Line project area and is a performance benchmark set by the County for participation of additional property tax increment Page | 12 Project Area Project Name FY2023 Proposed Description Policy Questions / Notes Westside Community Initiative (subtotal $500,000) Housing Development Loan Program $ 500,000 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. Housing Development Fund (subtotal $4,230,000) Housing Development Loan Program $ 4,230,000 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. TOTAL $ 13,278,181 Note: the capital projects budget does include the four housing funds which are also addressed in a separate section 4.Other highlights of FY 2023 RDA budget a.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. FY 23 revenue for this fund is proposed to be $440,000 lower than FY 22, largely due to reduced interest income and the use of fund balance in FY 22 that is not available in FY 23. Parking structure revenue is anticipated to increase by $1,000. 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, provided funding to assist with strategic acquisition along North Temple, 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 | 13 Program Income Fund - Proposed FY 23 Expenses FY 22 Adopted FY 23 Proposed Change Capital Expenditures - Commercial Revitalization Program -{Holding Account}-667,535 931,835 264,3 00 Professional Services 300,000 300,000 - Miscellaneous Property Expense 300,000 300,000 - Capital Expenditures - Sustainab ility Technical Assistance Progra m -{Holding Account}- 200,000 - (200,000) Transfer to North Temple for Strategic Acquisition 255,215 -(255,2 15) Marketing and Sa les 25,000 25,000 - Capital Expenditures - Gallivan Repairs -{Holding Account}-250,000 -(250,000) Tota l Exp en d itu res a n d Oth er Uses Bu d get 1,997 ,7 50 1,556,835 (440,915) b.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. The Board may also wish to ask what are the actual annual expenses for vacant / unused properties owned by the RDA. Project Area / Fu n d FY 2022 Adop ted FY 2023 Prop osed Change % Change Central Business District $ 975,000 $ 1,000,000 $ 25,000 3% Depot District $ 120,000 $ 125,000 $ 5,000 4% Granary District $ 5,000 $ 5,000 $ - 0% Program Income Fund $ 300,000 $ 300,000 $ - 0% Tota l $ 1,400,000 $ 1,430,000 195,00 0$ 14% The Board may wish to ask the Administration for a report on actual expenditures from these line items. c.Revolving Loan Fund (RLF) – the FY 2023 budget proposes $345,000 in additional revenue to lend. The source of funding for the RLF is primarily repayments on loans and interest earnings. The Board may wish to discuss with the Administration if they are aware of pending requests for these funds. d.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. e.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 Page | 14 (Public Services Department), particularly as it relates to service level and programming, and if additional resources are needed to encourage activity downtown post-pandemic. f.Interest Income and Rental Income – The RDA budget includes decreases for interest income in some project areas and decreases in others (see chart below). While interest rates are increasing, the RDAs cash balances are lower than in previous years (due to efficient expenditure of budgeted moneys). The Board may wish to ask the Administration if this trend is expected to continue in future years, and if cash balances are consistent with best practices. The RDA is expecting rental income (reported in the Program Income Fund) to be flat for FY 23. The Board may wish to discuss with the RDA how these trends may change as the economic recovery continues. Project Area / Fu n d FY 22 Ad op ted FY 23 Prop osed $ Change % Change Central Business District 350,000$ 23,500$ (3 26,500)$ -93% West Capitol Hill 150,000$ 100,000$ (50,000)$ -33% West Temple Gateway 50,000$ 5,000$ (45,000)$ -90% Depot District 50,000$ 50,000$ -$ 0% Block 70 -$ 2,500$ 2,500$ 1% Stadler Rail -$ 500$ 500$ State Street n/a -$ n/a 9 Line n/a -$ n/a Northwest Quad Housing Fund (Inland Port)-$ -$ Revolving Loan Fund*470,000$ 280,000$ (190,000)$ -40% North Temple Via duct 7,500$ 1,500$ (6,000)$ -80% Northwest Quadrant CRA -$ 5,000$ Secondary Housing Fund 44,000$ 10,000$ (34,000)$ -77% Program Income Fund*250,000$ 58,800$ (191,200)$ -76% Granary District 45,000$ 15,000$ (30,000)$ -67% North Temple 45,000$ 5,000$ (40,000)$ -89% Primary Housing Fund*225,000$ 53,000$ (172,000)$ -76% Housing Development Trust Fund*-$ 270,000$ 270,000$ Tota l 1,68 6,500$ 879,8 00$ (806,700)$-48% *Includes interest on investments and interest earned on loans I n terest I n come 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. For FY 23 the RDA has continued the practice of projecting tax revenues at 80% of what was actually received in the previous year, to help account for these potential fluctuations. Staff has provided information on selected tax increment for Board context (shown in independent charts because of the dollar amount differences). This trend information is available for all project areas. Page | 15 Central Business District Depot District Block 70 2017 $26,430,856 $4,059,199 $876,893 2018 $28,183,388 $3,800,000 $1,280,637 2019 $22,915,000 $3,695,000 $1,610,000 2020 $24,575,000 $3,768,900 $1,847,677 2021 25,066,500 3,844,278 1,884,631 2022 $27,573,150 $3,921,164 $1,922,323 2023 27,596,650 4,049,587 1,922,323 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Selected 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, and to facilitate development in the adjacent area. 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 the yearly years of this arrangement, the tax increment generated was not sufficient to cover the full debt service payment (the general fund covered the remainder). However, starting in FY19, actual tax increment received exceeded debt service payments. In FY 21, the Board re-purposed this overage to re-invest on North Temple in the soon-to-open State Fair Park Public Market. In FY 23, the Mayor is proposing to use $1m of this available overage to invest in the Housing Development fund, to increase the number of affordable units in the City. Staff is confirming FY 23 actual debt service, but is providing this chart from FY 21 for context: Granary District North Temple Westside Community Initiative (Housing $ from Inland Port) 2017 $333,663 $120,000 2018 $419,505 $197,262 2019 $508,000 $318,000 2020 $597,005 $418,441 2021 608,945 426,810 2022 $621,124 $435,346 250,000 2023 648,546 449,053 500,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Selected Project Area Tax Increment Revenue Trends Page | 16 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 costs (net of revenues) that the County experiences in operating the ancillary sites around the Eccles Theater (Black Box, Regent Street Plaza, and Winter Garden). The FY 23 budget proposes $475,000 for this purpose, which is flat from FY 22, and could be less than this if activities continue to rebound post-pandemic. 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. The Eccles Theater applied for and received Federal assistance geared towards performing arts venues, which offset much of the operational losses experienced during the pandemic (in addition to an allocation from the County). c.Block 70 Debt Reserve – Each year the RDA funds a certain reserve for Debt Service for the Eccles Theater, to cover years when tax increment for the block is insufficient to cover payments (a span of 5-8 years depending on projections. As of FY 22 the debt service reserve was 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). 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 RDA has proposed tax increment revenue at about 80% of what was actually received in FY 22, so it is likely a conservative estimate. 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 | 17 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 Annual Debt Service In Millions Year 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 discussions are ongoing. Additionally, Staff is continuing to work with the County to secure their support for the State Street project area, and is in continued discussions about new project areas to facilitate developments around the Granary, which is soon to expire. Staff is critical to the City’s efforts during State legislative discussions about changes to the City’s development tools, which was an increased workload compared to previous years. Affordable Housing Development in the City is also an overarching workload handled by RDA staff, as is work on some of the pilot programs approved by the board last fiscal year and proposed this fiscal year. 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, given tax increment flow has started. 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). Currently the FY 23 budget is recommending that the tax increment for State Street and 9 Line (after the 10% to admin and housing) be held in a capital account for strategic property acquisition. Specific proposals would still need to come to the board for approval. 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 Page | 18 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. 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 Central Business District*†1983 2042 West Capitol Hill**1998 2022 Depot District†1999 2024 Granary District†2000 2025 North Temple†2012 2039 North Temple Viaduct CDA 2012 2037 Northwest Quadrant 2019 2038 Block 70 CDA 2016 2040 Stadler Rail 2019 2038 Block 67 2021 2040 9-Line 2021 2040 State Street 2021 2040 NOTE: Only project areas that generate tax increment are listed in the table Page | 19 *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 †In October 2021 the Board approved two-year extensions for these project areas. State law was changed to allow extensions for projects areas negatively impacted by the COVID-19 pandemic Statutory Definition of Project Area Development (Utah Code 17C-1-102(48)) 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. Note: in the 2022 legislative session some changes were made to limit a taxing entity’s ability to invest in certain retail uses in HB 151 – in summary it it prohibits a city or its RDA from making or entering into an agreement to make certain incentive payments for retail facilities. While retail incentives are limited, there some exceptions, including: -census tract areas with the median income below 70% AMI (to ease food and service deserts, etc), -mixed use developments with a certain amount of housing units, or 10% of the units being affordable, -retail facilities under 20,000 sqft, retail for small businesses, etc. - Incentives can still be used for public infrastructure, structured parking, main street or historic programs, and environmental mitigation. -If incentives for retail developments are used, a report must be issued to GOEO. -If a taxing entity violates any of the incentives restrictions or doesn't submit a report, GOEO can send a notice to the state auditor. There is still the ability to cure the problem or appeal the determination of GOEO. ATTACHMENTS 1. Attachment 1 - RDA Guiding Framework Transmittal December 2021 (Mission, Core Values and Livability Benchmarks) 2.Attachment 2 - Housing Funding Priorities for FY 23 11.24.21 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 strengthens neighborhoods and business districts to improve livability, create economic opportunity and foster authentic, equitable 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 Opportunity- We invest in the long-term prosperity and growth of our local economy. Equity & Inclusion- We prioritize people-focused projects and programs that encourage everyone to participate in and benefit from development decisions that shape their communities. Neighborhood Vibrancy- We cultivate distinct and livable places that are contextually sensitive, durable, connected, and sustainable. PROJECT EVALUATION PROCESS: The RDA prioritizes projects that demonstrate a commitment to the Mission and Values , evaluating 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 RDA Project Area Work Plans* ˜ Financial viability with a demonstrated and reasonable need for public assistance Step 2: LIVABILITY BENCHMARKS Economic Opportunity ˜ Leveraging ˜ Timeliness ˜ Return of Investment ˜ Permanent Job Creation & Retention ˜ Affordable Commercial Spaces ˜ Ownership Equity & Inclusion ˜ Transit Opportunities ˜ Mixed-Income Neighborhoods ˜ Neighborhood Safety ˜ Community Engagement & Support ˜ Housing for Everyone ˜ Displacement Mitigation ˜ Affordable Housing Preservation Neighborhood Vibrancy ˜ Public Space ˜ Public Art ˜ Architecture & Urban Design ˜ Sustainability ˜ Walkability ˜ Building Preservation, rehabilitation, or adaptive reuse ˜ Missing Middle & Unique Building Types Step 3: PROGRAM CRITERIA Evaluation of project according to respective RDA policies, programs and procedures Exhibit A to the Resolution 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: March 25, 2022 PREPARED BY: Lauren Parisi & Tracy Tran, RDA Project Managers RE: FY 23 Annual Housing Funding Priorities & FY 22 Housing Report REQUESTED ACTION: Consider adoption of a resolution to establish the FY 23 Housing Funding Priorities POLICY ITEM: Affordable Housing BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City’s (“RDA”) Housing Development Loan Program (“HDLP”) policy requires that the RDA Board of Directors (“Board”) approves housing funding priorities (“Funding Priorities”) on an annual basis. These Funding Priorities guide the upcoming fiscal year’s housing activities including the requirements of the competitive affordable housing notice of funding availability (NOFA). At their March 2022 meeting, the Board reviewed and discussed potential Funding Priorities for the upcoming fiscal year – FY 23. The Board seemed to come to a consensus regarding the approval of four priorities including: • Affordable Homeownership • Family Housing • Deeply Affordable Housing • Missing Middle Housing This memo outlines the intent of each of the four Funding Priorities. The resolution under Attachment A has been included for the Board’s consideration to approve the FY 23 Funding Priorities. Additionally, this memo includes the balance of all RDA housing funds and summarizes the housing projects that were funded during FY 22 to satisfy the reporting requirements within the RDA’s Housing Funds Allocation Policy. A table summarizing all housing projects funded by the RDA since 2011 has also been included under Attachment B for informational purposes. ,,,,, ,, ":. ~\ h,; ---:..,,, .... ~ ,,,,, I rr_ \\ ...... ,,,,,,1111111'' 2 ANALYSIS: FY 23 Annual Housing Funding Priorities. The intent of each priority that will be used to guide housing decisions throughout the upcoming fiscal year have been described below. 1. Affordable Homeownership – Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through affordable homeownership. 2. Family Housing – Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. Family housing is generally defined as units with three or more bedrooms. 3. Deeply Affordable Housing – Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those earning 40% of the area median income (AMI) or below. 4. Missing Middle Housing – Promote an array of housing forms such as smaller apartment buildings, townhomes and accessory dwelling units to diversify the City’s housing stock and provide more affordable living options for residents. Housing Development Loan Program – Competitive NOFA. To utilize the competitive affordable housing notice of funding availability (NOFA) to promote the Funding Priorities, family housing and/or deeply affordable housing will be made thresholds in order for a project to be eligible for funding. To meet the family housing threshold, at least 10% of a project’s units must have three or more bedrooms. To meet the deeply affordable threshold, at least 10% of a project’s units must be affordable to those earning 40% AMI or below. Projects will also be eligible for a .5% interest rate reduction for meeting other RDA benchmarks as outlined in last year’s (2021) competitive affordable housing NOFA. FY 22 Housing Report. The current balance of the RDA’s four housing funds (available to lend) are as follows: • Primary Housing Fund – $649,247 • Secondary Housing Fund – $5,136,455 • Westside Community Initiative Fund – $250,000 • Housing Development Loan Fund – $22,627 The following housing projects were funded during FY 22: PROJECT ADDRESS DEVELOPMENT PARTNER FUNDING COMMITMENT PROJECT COST STATUS UNIT MIX The Silos on 5th (Phase 1 and 2) 425 West 500 South Giv Communities $2,360,000 $23,639,510 Securing financing and plans 84 units ≤ 60% AMI 22 units ≤ 40% AMI 144 South 500 East 144 South 500 East Red Gate Properties $775,000 $32,528,000 Securing financing and plans 110 units ≤ 60% AMI The Nest 382 S Rio Grande W3 Partners $1,082,500 $52,685,701 Securing financing and plans 220 units ≤ 60% AMI Schmidt Apartments 1265 South 300 West EMG Mgmt $1,082,500 $40,926,969 Securing financing and plans 149 units ≤ 60% AMI 10 units ≤ 40% AMI Total(s): $5,300,000 $149,799,171 3 NEXT STEPS: • Pursuant to the Housing Development Loan Program Policy, the Board may wish to consider the adoption of the attached resolution to approve the Funding Priorities for FY 23. • RDA staff will present proposed funding allocations to housing activities as a part of the FY 23 budget discussion. ATTACHMENTS: Attachment A – FY 23 Affordable Housing Funding Priorities Resolution Attachment B – RDA Affordable & Mixed-Income Housing Summary: 2010/11 - 2021/22 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2022-23 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2022-23 WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (“Board”) adopted the Housing Funds Allocation Policy and the Housing Development Loan Program Policy, which provide that the Redevelopment Agency (“RDA”) will present to the Board an overall funding strategy and specific funding priorities (“Funding Priorities”) for how housing funds should be allocated to the housing funds and housing loan program for the upcoming fiscal year. WHEREAS, the Housing Development Loan Program Policy provides that the specific Funding Priorities shall be subject to approval by the Board. WHEREAS, the Board desires to adopt the Funding Priorities identified in this resolution to direct resources for the development of affordable housing for fiscal year 2022-23. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Redevelopment Agency of Salt Lake City hereby adopt following Funding Priorities for fiscal year 2022-23: Housing Priority Objective Deeply Affordable Housing Threshold requirement for Housing Development Loan Program applications Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Family Housing Threshold requirement for Housing Development Loan Program applications Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. Affordable Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through affordable homeownership. Missing Middle Housing Promote an array of housing forms to diversify the City’s housing stock and provide more affordable living options for residents. Attachment A Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 2022. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder March 25, 2022 FUNDING TOOL PROJECT ADDRESS PROJECT AREA 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 TOTAL Liberty Village 2150 McClelland Street Sugar House $0 $1,060,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,060,000 Pamela's Place 525 South 500 West Citywide Housing $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $0 $0 $0 $500,000 Capitol Homes 1749 South State Street State Street $0 $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $0 $0 $3,200,000 Citifront Apartments 641 West North Temple North Temple $0 $0 $0 $0 $0 $0 $422,266 $0 $0 $0 $0 $0 $422,266 Exchange Building B 340 East 400 South Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $3,000,000 $0 $0 $0 $3,000,000 255 State Street 255 State Street Central Business $0 $0 $0 $0 $0 $0 $0 $0 $2,000,000 $11,403,480 $1,151,399 $0 $14,554,879 Jefferson Mixed-Use 912/916 Jefferson Street West Temple $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,998,000 $0 $0 $1,998,000 Bookcliffs Lodge 1159 South West Temple State Street $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $1,000,000 SPARK!1500 West North Temple North Temple $0 $0 $0 $0 $0 $0 $0 $0 $2,500,000 $3,956,000 $0 $0 $6,456,000 Richmond Flats 2960 S Richmond St High Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $1,800,000 Central Station Apartments 549 W 200 South Depot District $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 Jackson Apartments 274 W 200 South Central Business $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 Liberty Wells 501 E 1700 South Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $150,000 $0 $0 $150,000 The Silos on 5th (Phase 1 and 2)425 West 500 South Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,360,000 $2,360,000 144 South 500 East 144 South 500 East Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $775,000 $775,000 The Nest 382 S Rio Grande Depot District $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,082,500 $1,082,500 Schmidt Apartments 1265 South 300 West State Street $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,082,500 $1,082,500 Artspace Commons 423 West 800 South Granary $21,332 $48,880 $38,843 $36,237 $38,364 $38,431 $38,813 $21,194 $100,025 $34,000 $0 $0 $416,119 Northgate Apartments 135 South 500 West Depot $853,673 $802,648 $838,207 $856,452 $696,064 $708,427 $586,103 $426,209 $521,038 $600,000 $712,922 tbd $7,601,743 West Montrose 300 West 800 South West Capitol Hill $407,912 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $407,912 Pugsley Street 571 North Pugsley St West Capitol Hill $0 $96,267 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $96,267 Arctic Court 524/528 N Arctic Court West Temple $0 $0 $0 $0 $200,000 $0 $0 $0 $0 $0 $0 $0 $200,000 9th East Lofts 440 South 900 East Citywide Housing $77,821 $556,224 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $634,045 SPARK!1500 West North Temple North Temple $0 $0 $0 $0 $0 $0 $0 $4,000,000 $0 $0 $0 $0 $4,000,000 9th East Lofts 440 South 900 East Citywide Housing $0 $0 $0 $189,625 $0 $0 $0 $0 $0 $0 $0 $0 $189,625 Macaroni Flats 244 South 500 West Depot $0 $0 $0 $1,100,000 $0 $0 $0 $0 $0 $0 $0 $0 $1,100,000 Jefferson Mixed-Use 912/916 Jefferson Street West Temple $0 $0 $0 $0 $0 $0 $0 $0 $385,000 $0 $0 $0 $385,000 Utah Paperbox 300 West 200 South Central Business $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $0 $0 $0 $3,200,000 Utah Theater 144-156 Main Street Central Business $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,070,000 $0 $0 $2,070,000 Diamond Rail 535 W 300 North Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 Colony B 228 W 1300 South State Street $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,340,000 $0 $1,340,000 HTF (TRANSFER TO HAND)Housing Trust Fund (HAND)N/A Citywide Housing $288,910 $109,000 $208,578 $124,350 $899,902 $518,393 $0 $3,000,000 $0 $0 $0 $5,149,133 $1,649,648 $2,673,019 $1,085,628 $2,306,664 $1,834,330 $1,265,251 $4,747,182 $10,647,403 $9,506,063 $25,011,480 $3,204,321 $5,300,000 $69,230,989Note Pursuant to Utah Title 17C, Community Reinvestment Agency Act, Affordable Units are defined as being affordable to household earning 80% of the area median income and below. Note: Funding allocations are approximations based on the RDA's annual budgets, annual reports, Board resolutions, and loan tracking system. Note: Table includes projects that received one or more funding allocations during FY 2010-11 through FY 2021-22 YTD (March 22, 2022). Projects were not necessarily completed during this timeframe. Note: For projects receiving a tax increment reimbursement, the actual amount of FY 2021-22 tax increment reimbursement will be determined in March of 2022, once the 2020 tax year has been equalized. Note: The total Utah Theater property discount is $4,070,000. Approximately $2,070,000 can be attributed to affordable housing. Note: The 2016-17 allocation of $422,266 for Citifront Apartments was for loan forgiveness. HDTF (APPROVED) RDA AFFORDABLE & MIXED-INCOME HOUSING: FY 2010/11 - 2021/22 YTD: FUNDING ALLOCATIONS BY YEAR Last Updated: 3/24/2022 LOANS (HDLP/NOFA & RDA LOAN PROGRAM) TI REIMBURSEMENT ACQUISITION DISPOSITION: PROPERTY DISCOUNT Attachment B Last Updated: 3/24/2022 AMOUNT TYPE 144 South 500 East 144 South 500 East Red Gate Properties 110 110 $775,000 Loan: HDLF NOFA Loan approved in December 2021. Borrower is securing financing and finalizing project plans. 255 State Street 255 State Street Brinshore Development 190 168 $14,554,879 Seller's note; loan; NOFA Under construction. Arctic Court 524/528 North Arctic Court TBD 2 1 $200,000 Property acquisition Single family residence designed and permitted. Bookcliffs Lodge 1159 South West Temple Housing Assistance Mgmt. Enterprise (HAME) 54 43 $1,000,000 NOFA The developer is assembling financing. Central Station Apartments 549 W 200 South Gardner Batt 65 52 $1,000,000 Loan Under construction. Colony B 228 West 1300 South Defi 1/Neighborhood Nonprofit Housing Corporation 140 106 $ 1,340,000 Loan Under construction. Liberty Wells 501 E 1700 South Community Development Corp of UT (CDCU) 10 10 $150,000 Loan Acquisition and predevelopment phase. Unit mix and affordability targets may change. The Nest 382 S Rio Grande W3 Partners 220 220 $ 1,082,500 Loan Loan approved in December 2021. Borrower is securing financing and finalizing project plans. Richmond Flats 2960 S Richmond St CDCU 55 55 $1,800,000 Loan Finalizing budgets and construction costs. Schmidt Apartments 1265 South 300 West Westates 159 159 $1,082,500 Loan Loan approved in December 2021. Borrower is securing financing and finalizing project plans. Silos on 5th 425 West 500 South GIV Development 106 106 $2,360,000 Loan Loan approved in December 2021. Borrower is securing financing and finalizing project plans. SPARK!1500 West North Temple Brinshore Development 200 89 $10,456,000 Property acquisition; NOFA The RDA entered into a purchase agreement with Brinshore Development/HAME for a mixed use, multi family development. Awarded 2019 4% LIHTCs. Main Street Aparments 144-156 Main Street Hines Acquisitions; 160 Main 400 40 $2,070,000 Property discount Project design and due diligence. Number of units may change as the design is finalized. West Montrose 745-765 S 300 W; 244-264 W 800 S TBD Pending Pending $407,912 Property acquisition RDA is marketing the property for development. IN PROCESS SUBTOTAL:1711 1159 $38,278,791 Various: Transfer to HAND Various Various $5,149,133 Loan Funds tranfer to HAND FY2010-11 to FY2017-18 Artspace Commons 423 West 800 South Artspace Utah 102 102 $416,119 Tax Increment Reimbursement Ongoing annual TI reimbursement obligation. Macaroni Flats 244 South 500 West Artspace Utah 13 13 $1,100,000 Property disposition (discount)Disposition complete, project closed-out. Citifront Apartments 641 West North Temple Neighborworks Salt Lake 155 94 $422,266 Loan forgiveness In October 2016, the RDA Board approved waiving a $422,266 note for the project; project closed-out. Liberty Village 2150 McClelland Street Cowboy Development 171 35 $1,060,000 Loan Loan paid in full, project closed-out. 9th East Lofts 440 South 900 East HAME 68 54 $823,670 Property acquisition; property di t Disposition complete, project closed-out. Northgate Apartments 135 South 500 West BOYER 330 159 $7,601,743 Tax Increment Reimbursement Ongoing annual TI reimbursement obligation. Pugsley Street 571 North Pugsley Street n/a 1 1 $96,267 Property acquisition Disposition complete, project closed-out. Utah Paperbox 300 West 200 South PEG Dev. /Clearwater homes 183 36 $3,200,000 Property discount Project complete. Pamela's Place 525 South 500 West HAME and GIV Development 100 100 $500,000 Loan Project complete. Exchange Building B 340 East 400 South Domain Companies and GIV Dl t 126 80 $3,000,000 Loan Project complete. Capitol Homes Apartments 1749 South State Street HAME 93 62 $3,200,000 Loan Project complete. Jefferson Mixed-Use 912/916 Jefferson Street Red Gate Properties. Big T b H ldi 3 3 $2,383,000 Property discount; loan Project complete. Jackson Apartments 274 W 200 South Hampstead Dev. Partners 80 80 $1,000,000 Loan Project complete. Diamond Rail Apartments 535 West 300 North GIV Development 80 55 $1,000,000 Loan Project complete. COMPLETED SUBTOTAL:1505 874 $30,952,198 TOTAL:3,216 2,033 $69,230,989 RDA AFFORDABLE & MIXED-INCOME HOUSING: FY 2010/11 - 2021/22 YTD: FUNDING ALLOCATIONS BY PROJECT PROJECT ADDRESS DEVELOPMENT PARTNER RESIDENTIAL UNITS RDA FINANCIAL PARTICIPATION Note: Funding allocations are approximations based on the RDA's annual budgets, annual reports, Board resolutions, and loan tracking system. Only funds allocated by the RDA to a specific project are reflected. Funds allocated to the Housing Trust Fund or funds in the process of allocation are not reflected on the table. Note: Table includes projects that received one or more funding allocations during FY 2010-11 through FY 2021-22. Projects were not necessarily completed during this timeframe. Note: For projects currently in the development pipeline and not yet completed, the number of units/affordable units is subject to change as designs and financing is finalized. STATUS TOTAL/AFFORDABLE I N P R O C E S S C O M P L E T E D Note Pursuant to Utah Title 17C, Community Reinvestment Agency Act, Affordable Units are defined as being affordable to household earning 80% of the area median income and below.I I I I FY 2023 BUDGET M A Y 1 7 , 2 0 2 2 R D A B O A R D M E E T I N G PRESENTATION CONTENTS 2 0 2 2 - 2 0 2 3 B U D G E T PART 2 FY 2023 PRIORITIES PART 3 BUDGET BREAKDOWN PART 4 FY 2023 KEY CHANGES PART 1 FY 2022 HIGHLIGHTS FY 2022 HIGHLIGHTS PART 1 U PDATED GUID IN G F RAM E W ORK FY 2022 HIGHLIGHTS EQUITY AND INCLUSION NEIGHBORHOOD VIBRANCY We strengthen neighborhoods and business districts to improve livability, create economic opportunity, and foster authentic, equitable communities, serving as a catalyst for strategic development projects that enhance the City’s housing opportunities, commercial vitality, public spaces, and environmental sustainability. NEIGH BORH O O D VIBRANCYECONOMIC OPPORT UNIT Y M I S S I O N EQUIT Y + INCL USIO N V A L U E S Leveraging Timeliness Return of Investment Permanent Job Creation & Retention Affordable Commercial Spaces Ownership Transit Opportunities Mixed-Income Neighborhoods Neighborhood Safety Community Engagement & Support Housing for Everyone Displacement Mitigation Affordable Housing Preservation Public Space Public Art Architecture & Urban Design Sustainability Walkability Building Preservation, Rehabilitation, & Adaptive Reuse Missing Middle & Unique Building Types We prioritize people-focused projects and programs that encourage everyone to participate in and benefit from development decisions that shape their communities. We cultivate distinct and livable built environments that are contextually sensitive, resilient, connected, and sustainable. We invest in the long-term prosperity and growth of our local economy. L I V A B I L I T Y B E N C H M A R K S F Y 2 0 2 2 H I G H L I G H T S 2 6 5 AFFORDABLE HOUSING UNITS COMPLETED JACKSON APARTMENTS 80 affordable senior housing units Historic facade preserved $1MM loan CAPITOL HOMES APARTMENTS 62 affordable units Commercial + flex space $3.2MM loan DIAMOND RAIL 55 affordable units, 25 market-rate 15 3-bedrooms units for families $1MM loan CENTRAL STATION 65 affordable units, 25 market-rate incl. 3-bedrooms units for families $1MM loan F Y 2 0 2 2 H I G H L I G H T S 1 9 5 af fo r d abl e unit s BROKE GROUND ON COLONY B 140 affordable units $1.34MM loan RICHMOND FLATS 55 affordable units $1.8MM loan SILOS ON 5TH 106 affordable units $2.3MM loan THE NEST 220 affordable units $1.1MM loan F Y 2 0 2 2 H I G H L I G H T S $4 .2 M M 4 3 6 a f f ordab l e units SECURED FINANCING THREE AFFORDABLE HOUSING PROJECTS 144 S. 500 EAST 110 affordable units $775,000 loan F Y 2 0 2 2 H I G H L I G H T S 1 9 ,3 5 0 squ a r e feet NEIGHBORHOOD- SCALE COMMERCIAL SPACE ADDED WEST END Adaptive reuse $3.1MM loan CENTRAL NINTH MARKET II 3 affordable residential units 2 retail spaces $2.28MM (loan + land write-down) FO U R P U B L I C I MP R O VE ME N T P R OJ E C T S B R OK E G R O U ND 6 0 0 S . M A I N T R A X S T A T I O N 3 0 0 W E S T S T R E E T I M P R O V E M E N T S C E N T R A L N I N T H S T R E E T S C A P E FY 2022 HIGHLIGHTS F O L S O M C O R R I D O R A C Q UIRE D N E I G HB O R HO O D C O MM ERC IA L N O DE PR O PER T Y FY 2022 HIGHLIGHTS 877 W. 400 SOUTH Environmental remediation before RFP Exploring mixed-use scenarios for property Ideally would include existing commissary kitchen A C Q UIRE D C R I T I C AL S T A TI ON C E NTE R P R O PER T Y FY 2022 HIGHLIGHTS 233 S. 600 WEST Connects two (2) adjacent RDA-owned parcels Purchase involved development agreement that commits RDA to relocating existing underground stormwater detention basin A D O P T E D S U S TA I N AB LE D E V E L O P M E N T P O L I C Y FY 2022 HIGHLIGHTS Most building projects receiving Agency funding must meet energy efficiency standards and be all electric. Projects participating in certain Agency programs must also achieve net zero status. F Y 2 0 2 2 H I G H L I G H T S G A L L I V A N C E N TE R S U C C E S S Public art with Downtown Alliance: The art pieces were featured in hundreds of selfies, dozens of photo shoots, a couple of films, and the television show Man v. Food. Family Drag Night: Inclusive event was a raging success for people of all ages. Ice Rink Theme Nights with the BLOCKS: Live entertainment with DJs, visiting fictional characters, and contests. Hope to expand those events in 2022-23. Busiest season (November to February) ever 70,725 ice skaters; many more spectators Grossed $550,000 ($22,000+ in hot chocolate alone!) NEW EVENTS + EXHIBITIONS TOTAL PUBLIC EVENTS SINCE 7/1/21 RE-OPENING: 181 TOTAL LIVESTREAM VIEWS FOR EXCELLENCE IN THE COMMUNITY CONCERTS: 7.1 MILLION ICE RINK RE-OPENING FY 2023 BUDGET PRIORITIES PART 2 F Y 2 0 2 3 B U D G E T P R I O R I T Y - F U N D I N G FU ND IN G PRIORI T Y #1: H OU S IN G Deeply Affordable Housing Family Housing Affordable Home Ownership Missing Middle Housing ANNUAL HOUSING PRIORITIES Establishment of a reserve fund to use for acquisition of properties for the purpose of preserving, improving or increasing affordable housing units. STRATEGIC ACQUISITION HOUSING FUNDS ALLOCATION POLICY PRIMARY HOUSING FUND $$$ ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY HOUSING DEVELOPMENT FUND WESTSIDE COMMUNITY INITIATIVE SECONDARY ADOPTED Q1 2021 YEARLY BOD APPROVAL This policy established guidelines for allocating/directing resources for housing by funding source. Also requires "Annual Housing Funding Strategy" (right) be brought in front of Board every year. HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE housing fund allocations FY23 ANNUAL HOUSING FUNDING STRATEGY FAMILY HOUSING MISSING MIDDLE HOUSING AFFORDABLE HOME OWNERSHIP DEEPLY AFFORDABLE HOUSING ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES LAND ACQUISITION ADU ASSISTANCE SHARED EQUITY HOUSING HOUSING DEV. LOAN PROGRAM FY23 Housing ActivitY IMPACT HOUSING PRIORITIES Affordable Home Ownership Family Housing Deeply Affordable Housing Missing Middle Housing Shared Equity Model Land AcquisitionHousing Development Loan Program ADU Assistance HOUSING ACTIVITIES F Y 2 0 2 3 B U D G E T P R I O R I T Y - F U N D I N G FU NDI NG PRI O RITY #2: COMM E R CIA L To be dispersed through new Commercial Assistance Program REVOLVING LOAN FUND STRATEGIC ACQUISITION Establishment of a reserve fund to use for acquisition of commercial properties with the intent to preserve or create spaces for locally, minority, or women-owned businesses F Y 2 0 2 3 B U D G E T P R I O R I T Y - F U N D I N G FU NDI NG PRI O RITY #3: Japantown Main Street Folsom Corridor IMPROVEMENTS TO PEDESTRIAN EXPERIENCE PUBLIC SPACE AND DEVELOPMENT OPPORTUNITIES INFRASTRUCTURE AND PLANNIN G Gallivan Center Granary Strategic Intervention FY 2021 FY 2022 FY 2023 Public Art Policy Sustainable Development Policy Shared Equity Models of Development Housing Funds Allocation Housing Funds Allocation Amendment (Westside Community Initiative) Commercial Assistance Programs Housing Development Loan Program Equity Work Plan (Living Document) Cultural + Community InitiatiivesF Y 2 0 2 3 B U D G E T P R I O R I T Y - U P C O M I N G P O L I C I E S PO LIC Y M OM E NT UM F Y 2 0 2 3 B U D G E T P R I O R I T Y - U P C O M I N G P R O G R A M S Program that will utilize Westside Community Initiative Fund U PCOMING P ROGRA M #1 SHARED E Q UI T Y MODEL S O F D E V E LOP MEN T A shared equity housing model such as a community land trust provides the opportunity to hold title to land to preserve its long-term availability for affordable housing. This model allows for both home ownership and shared equity. As part of the Westside Community Initiative (WCI), the RDA will explore some form of a shared equity program or partnership to facilitate affordable ownership. F Y 2 0 2 3 B U D G E T P R I O R I T Y - U P C O M I N G P R O G R A M S U PCOMING P R OGRA M #2 COMM E R CIA L A SSI S T A NC E PROG R AM Amendment of existing Revolving Loan Fund to have an intentional focus on providing commercial assistance that benefits locally, minority, or women-owned businesses (Fund is currently more open ended and flexible) Amendment of existing Adaptive Reuse Loan Program to expand geography beyond Granary and be more easily utilized by local businesses Creation of an Affordable Storefront Activation Program to support development and activation of commercial spaces that could be offered at below market rates Provision of Technical Assistance meant to remove barriers and increase participation of non-traditional applicants Early vision is for a package of programs that includes: **Coming to you in June! F Y 2 0 2 3 B U D G E T P R I O R I T Y - U P C O M I N G P R O G R A M S U PCOMING P ROGRA M #3 COMM UNITY + C UL T URA L IN ITIA TI VES Program idea that resulted from creation of Equitable & Inclusive Development Work Plan (presented to BOD in September 2021) Preliminary goals include: Strengthen organizational structures and enable groups to carry out their missions Empower local leadership building Support efforts to convey that neighborhoods have an established history that deserves to be kept alive Would provide funding to non-profits and community organizations for self-initiated and led projects FY 2023 BUDGET BREAKDOWN PART 3 FY 2023 KEY CHANGES PART 4 D E P O T D I S TR I C T TAX INCREMENT PROJECTION O VE RA L L F O RE CA S T F Y 2 0 2 3 B U D G E T - K E Y C H A N G E S 2% over FY 2022 Hold steady in Central Business District and Block 70 80% of FY 2022 received for 9 Line, Northwest Quadrant, and State Street CE N TR A L B US I N ES S D I S T R I CT JAPANTOWN: $250,000 Support implementation of the Design Strategy. MAIN ST. CLOSURE: $300,000 Support the transition of Main Street to a pedestrian-first promenade. GALLIVAN MASTER PLAN: $100,000 Strategic design plan for improvements and capital repair plan to support ongoing programming and maintenance needs. PROPERTY ACQUISITION: $743,061 Affordable housing property acquisition. REPAYMENT TO REVOLVING LOAN FUND: $524,732 Repayment of funds used for property acquisition. S T A TE ST RE E T GR A NA R Y D I ST R I C T F Y 2 0 2 3 B U D G E T - K E Y C H A N G E S NO R T H T E M P L E PROPERTY ACQUISITION: $2,104,947 Strategic property acquisition STRATEGIC INTERVENTION FUND: $421,805 Catalytic project FOLSOM CORRIDOR: $284,753 Strategic property acquisition and environmental remediation of properties H O U S I NG F UND S9-LIN E F Y 2 0 2 3 B U D G E T - K E Y C H A N G E S PR O GR A M I N C O M E F U N D COMMERCIAL ASSISTANCE: $931,835 PROPERTY ACQUISITION: $959,774 PRIMARY HOUSING FUND: $1,599,880 Strategic property acquisition WESTSIDE COMMUNITY INITIATIVE: $500,000 Housing Development Loan Program HOUSING DEVELOPMENT FUND $4,230,000: Housing Development Loan Program $1,000,000: Strategic Property Acquisition