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HomeMy WebLinkAbout08/09/2022 - Meeting Materials    Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY   AGENDA   August 9, 2022 Tuesday 2:00 PM Council Work Room 451 South State Street Room 326 Salt Lake City, UT  84111 SLCRDA.com (http://www.slcrda.com/16board.htm) In accordance with State Statute and City Ordinance, the meeting may be held electronically.  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: 13:39:27 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. Comments:A.   1.General Comments to the Board TENTATIVE  5 min The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to RDA offices, 451 South State Street, Suite 118, P.O. Box 145455, Salt Lake City, UT. 84114-5455. 2.Comments to the RDA Board of Directors. (Comments are taken on any item not scheduled for a public Hearing, as well as on any other RDA Business. Comments are limited to two minutes.)   B.Public Hearing - individuals may speak to the Board once per public hearing topic for two minutes, however written comments are always accepted: NONE.   C.Redevelopment Agency Business - The RDA Board of Directors will receive information and/or hold discussions and/or take action on:   1.Approval of Minutes ~2:05 p.m.  5 min. The Board will approve the meeting minutes of June 14, 2022.   2.Resolution: Housing Development Loan Program - Emergency Gap Funding Allocations ~ 2:10 p.m.  20 min. The Board will receive a briefing about, and consider adopting a resolution that would approve funding allocations for Emergency Gap Financing totaling $3 million through the Housing Development Loan Program (HDLP). The RDA Finance Committee recommended that HDLP funding be allocated to three of the projects and that the fourth project be funded with other funds. The Board may discuss options for funding the fourth project.   3.Resolution: RDA Budget Amendment No. 1 for Fiscal Year 2022- 23 ~ 2:30 p.m.  20 min. The Board will receive a briefing about a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2022-23. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes additional funding to complete the Marmalade Plaza Project and property acquisition in the Depot District among other items.   4.Board Appointment: Redevelopment Advisory Committee - Baxter Reecer ~ 2:50 p.m.  5 min The Council will interview Baxter Reecer to the Redevelopment Advisory Committee for a term ending January 19, 2026.   5.Board Appointment: Redevelopment Advisory Committee - Amy Rowland TENTATIVE  5 min The Council will interview Amy Rowland prior to considering appointment to the Redevelopment Advisory Committee for a term ending January 19, 2026.   6.Report and Announcements from the Executive Director TENTATIVE  5 min. Report of the Executive Director, including a review of information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input.   7.Report and Announcements from RDA Staff TENTATIVE  5 min. The Board may review Board information and announcements. The Board may give feedback on any item related to City business, including but not limited to; •Loan Closure •Project Ribbon Cutting •Community Event •Personnel; 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:   1.Informational: Status Report on RDA Commercial Loan Portfolio -  - The Board will receive a written briefing about the status of the RDA’s commercial loan portfolio. This report identifies the following:  •New loans approved between July 1, 2021 and June 30, 2022 •Remaining amount available to lend in the existing portfolio •Outstanding principal for each loan fund •Any delinquencies   E.Consent – the following items are listed for consideration by the Board and can be discussed individually upon request.  A motion to approve the consent agenda is approving all of the following items:   1.Set Date – Resolution: RDA Budget Amendment No. 1 for Fiscal Year 2022- 23 -  - The Board will set the date of Tuesday, September 13, 2022 at 2 p.m. to accept public comment and consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2022-23. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes additional funding to complete the Marmalade Plaza Project and property acquisition in the Depot District among other items.   2.Board Appointment: Redevelopment Advisory Committee - Baxter Reecer -  - The Council will consider approving the appointment of Baxter Reecer to the Redevelopment Advisory Committee for a term ending January 19, 2026.   3.Board Appointment: Redevelopment Advisory Committee - Amy Rowland -  - The Council will consider approving the appointment of Amy Rowland to the Redevelopment Advisory Committee for a term ending January 19, 2026.   4.Board Re-appointment: Redevelopment Advisory Committee - Brian Doughty -  - The Council will consider approving the re-appointment of Brian Doughty to the Redevelopment Advisory Committee for a term ending January 19, 2026. Adjournment     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.   CERTIFICATE OF POSTING On or before 5:00 p.m. on August 4, 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. PENDING MINUTES –NOT APPROVED The Board of Directors of the Redevelopment Agency (RDA)of Salt Lake City met on Tuesday, June 14,2022. The following Board Members were present: Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Alejandro Puy,Victoria Petro-Eschler Present Agency Leadership: Mayor Erin Mendenhall Danny Walz,Chief Operating Officer;Cara Lindsley,Deputy Operating Manger Present City Staff: Rachel Otto –Chief of Staff,Katherine Lewis –City Attorney,Ashley Ogden –Project Manager, Lauren Parisi –Project Manager,Cindy Lou Trishman –City Recorder,Thais Stewart –Deputy City Recorder ,Michelle Barney –Minutes and Records Clerk,Taylor Hill –City Council Staff, Scott Corpany –Council Staff Director Chair Valdemoros presided at and conducted the meeting. The meeting was called to order at 1:03 pm MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 1 A.Comments: 1.General Comments to the Board ~1:00 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.) Minutes: Director Valdemoros welcomed everyone in attendance and reviewed the rules of decorum. No public comments B.Public Hearing -individuals may speak to the Board once per public hearing topic for two minutes,however written comments are always accepted: NONE. C.Redevelopment Agency Business -The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Approval of Minutes ~1:05 p.m. 5 min. The Board will approve the meeting minutes of April 12,2022;May 10,2022;and May 17, 2022. Motion: Moved by Director Puy,seconded by Director Dugan to approve the RDA minutes from April 12,2022;May 10,2022 and May 17,2022. AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Alejandro Puy,Victoria Petro-Eschler Final Result:7 –0 Pass MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 2 2.Informational:RDA Commercial Assistance Opportunities ~1:10 p.m. 30 min. The Board will receive a briefing about the preliminary proposal to develop a package of Commercial Assistance Programs.The RDA is proposing to amend two existing programs and potentially create two new programs to better support the real estate and financial needs of the local business and non-profit sectors. Minutes: Lauren Parisi,Ashley Ogden and Cara Lindsley presented the proposal highlighting the next steps (activities scheduled for Summer and Fall of 2022),equitable and inclusive development work plan,potential challenges (increasingly unaffordable housing,COVID-19 impacts),commercial assistance program,RDA loan program amendments,adaptive reuse loan program amendments,affordable storefront activation program and education and technical assistance. Board Members stated they appreciated/were excited for the program and would be available to work with the Staff to introduce them to people that would benefit from the program in their districts. Board Members,Ms.Parisi,Ms.Ogden and Ms.Lindsley discussed: •The Economic Development Loan Fund (EDLF)program-if the proposal was a duplicate,and could be partnered with the EDLF services •How to ensure the proposed program was not duplicating existing programs or how it could partner with existing programs to better serve the community •Affordable Store Front Activation program –allowing longer lease times to help businesses establish themselves in a location and the need to partner with trusted community groups to reach the business owners who needed these services •RDA could help with the master leasing timeframes to allow business to get established however,it needed to be clear that the assistance was temporary •The importance to keep the spirit of small businesses in the city to support the residence of Salt Lake City as well as keeping the culture alive •Technical assistance was to help applicants navigate the process and develop relationships with City staff •Staff needed to actively recruit people to use the program MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 3 3.Straw Poll –Release of Funds from the North Temple Strategic Intervention Fund TENTATIVE 10 min. The Board will consider a straw poll to release a portion of previously appropriated funding in the North Temple Strategic Intervention Fund. Minutes: Straw Poll: Board Members Fowler,Wharton,Puy,Valdemoros,Mano,and Petro-Eschler showed unanimous support to release a portion of previously appropriated funding in the North Temple Strategic Intervention Fund in the amount of 1.11 Million dollars. Board Member Dugan was not present for the straw poll. 4.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. Minutes: No report 5.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; •RDA Programs;and •Scheduling Items. Minutes: Cara Lindsley reviewed the $3 Million Notice of Funding Availably (NOFA)released by the RDA on June 2,2022,for developments experiencing an emergency funding gap,the regulations and timeline for obtaining the loans. 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. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 4 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. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 5 F.Closed Session The Board will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: 1.discussion of the character,professional competence,or physical or mental health of an individual; 2.strategy sessions to discuss pending or reasonably imminent litigation; 3.strategy sessions to discuss the purchase,exchange,or lease of real property: (i)disclose the appraisal or estimated value of the property under consideration;or (ii)prevent the public body from completing the transaction on the best possible terms; 4.strategy sessions to discuss the sale of real property,including any form of a water right or water shares,if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration; or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale;and< (iii)the terms of the sale are publicly disclosed before the public body approves the sale 5.discussion regarding deployment of security personnel,devices,or systems;and 6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. Minutes: Closed Session Started at 2:00 pm Held via Webex and in the Work Session Room (location) Board Members in Attendance:Board Members Dugan,Fowler,Petro-Eschler,Puy,Mano, Wharton and Valdemoros. City Staff in Attendance:Mayor Mendenhall,Danny Walz,Rachel Otto,Katherine Lewis,Allison Parks,Jasmine Harouny,Cindy Gust-Jenson,Jennifer Bruno,Lehua Weaver,Ben Luedtke,Sam Owen,Beatrix Sieger,Allison Rowland,Taylor Hill,Cara Lindsley,Lauren Parisi,Ashley Ogden, Erin Cunningham,Tracy Tran,Austin Taylor,Amanda Greenland,Corinne Piazza,Katherine Hackman,Kate Werrett,Robyn Stine,Eric Holmes,Felina Lazalde,Cate Love,Cindy Lou Trishman,and Thais Stewart. Closed Session ended at 2:35 pm Motion: Moved by Director Wharton,seconded by Director Fowler to enter into Closed Session for the purposes of strategy sessions to discuss the purchase,exchange,or lease of real property and attorney-client matters that are privileged. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 6 AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Alejandro Puy, Victoria Petro-Eschler Final Result:7 –0 Pass Motion: Moved by Director Mano,seconded by Director Dugan to exit Closed Session. AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Alejandro Puy, Victoria Petro-Eschler Final Result:7 –0 Pass MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 7 G.Adjournment Meeting adjourned at 2:43 pm Minutes Approved: ______________________________ Redevelopment Agency Chair ______________________________ City Recorder This document is not intended to serve as a full transcript as other items may have been discussed; please refer to the audio or video for entire content pursuant to Utah Code §52-4-203(2)(b). To listen to the audio recording of the meeting or view meeting materials,please visit Salt Lake City Public Body Minutes library,available at www.data.slc.gov,selecting the Public Body Minutes hyperlink.If you are viewing this file in the Minutes library,use the links on the right of your screen within the ‘Document Relationships’information to listen to the audio or view meeting materials. This document along with the digital recording constitutes the official minutes of the Salt Lake City Redevelopment Agency meeting held Tuesday,June 14,2022. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,June 14,2022 8 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM:Allison Rowland Budget & Policy Analyst DATE:August 9, 2022 RE: RESOLUTION: HOUSING DEVELOPMENT LOAN PROGRAM - EMERGENCY GAP FUNDING ALLOCATIONS ISSUE-AT-A-GLANCE The RDA Finance Committee has recommended that Housing Development Loan Program (HDLP) funding be allocated to three of the four projects that applied for Emergency Gap Funding. A total of $3,082,500 was offered in a Notice of Funding Availability (NOFA) published in June 2022. The RDA Finance Committee reviewed the four applications and recommends using $3.0 million of this amount on projects known as The Nest, 1700 South Affordable, and 144 South (see section A. below for summary information on each). The fourth application, from 255 State, withdrew its application after the RDA transmittal was received. The primary source of funding for this NOFA was a $2 million RDA Board allocation for Fiscal Year 2022 (FY22) to assist affordable housing projects that are already under construction and are facing substantial costs increases. An additional $1,082,500 in HDLP funds were added to the NOFA pool from a project that rescinded a loan approved in 2021. All applicants also sought additional funding from their other funders. Like much other RDA assistance, the Emergency Gap Funding support is provided in the form of low-interest loans. The recommended projects must meet the parameters for other types of HDLP funding, including interest rate reductions for certain Board priorities. Because the funds in the NOFA were allocated in 2121, they were not required to meet the thresholds of deep affordability and larger unit size that the Board adopted in 2022. The next NOFA will include these thresholds as a condition of eligibility. Goal of the briefing: Discuss and consider adopting a resolution approving $3.0 million in affordable housing Emergency Gap Funding allocations, as recommended by the RDA Finance Committee. Item Schedule: Briefing: August 9, 2022 Set Date: N/A Public Hearing: N/A Potential Action: August 9, 2022 Page | 2 BACKGROUND AND ADDITIONAL INFORMATION A. Application Summary. The three applications for the 2020 Emergency Gap NOFA, along with the RDA Finance Committee Recommendations, are summarized below. RDA Finance Committee Recommendations Number of Units and Levels of Affordability Total Project Cost (millions) Previous RDA Funding for Project (millions) Emergency Gap Funding Interest Rate Term / Amortization (years) The Nest 382 Rio Grande 220 at 60% AMI $62.8 M $1.1 M $1 million 2.5%20/40 1700 South Affordable 230 W 1700 S 237 at 60% AMI $57.8 M none $1 million 3.5%30/30 144 South 144 S 500 E 110 at 60% AMI $35.2 M $0.8 M $1 million 1.0%40/40 B. Board Prerogatives. After adopting the annual Housing Development Funding Strategy, the RDA Board retains the option to make policy changes among adopted housing activities or budget allocations at any time during the year. In addition, the Board reviews and considers each specific loan project proposal before it may be approved for funding. The Board also can suspend any adopted policies under special circumstances for a specific project proposal. C. RDA Finance Committee. RDA policy designates Finance Committee membership as follows: 1. Two Redevelopment Advisory Committee members; 2. RDA Director (or designee); 3. Director of Economic Development (or designee); 4. Director of Finance (or designee); 5. Director of CAN (or designee); and 6. Director of Housing Stability (or designee). POLICY QUESTIONS A. Level of Affordability and Unit Sizes. The projects that applied for Emergency Gap Funding would offer all 567 of the units built at 60% AMI. Attachment A of the transmittal indicates also that 217 of the total 567 units (38%) are studio apartments. While these projects are likely too far along for significant changes, the Board has indicated its preference for housing developments that offer deep affordability (40% AMI and below) and larger unit sizes (2- and 3-bedrooms). To help inform future negotiations with developers, the Board may wish to consider asking the applicants whether additional interest rate reductions or other incentives would have been sufficient to prompt them to include more deeply affordable or larger units. Page | 3 B. Building Design and Streetscapes. Previous Boards at times expressed concern about the design and scale of large new multi-family housing developments, including the pedestrian experience. This was particularly the case for development that received some City funding. Would the Board like to discuss options for how the urgent need for affordable housing might be balanced with preferences for design that encourages walkability? C. Equity in Project Selection Process. Some Board Members have expressed interest in expanding opportunities for RDA funding to a wider variety of developers. In this context, the Board may wish to discuss how developer experience is evaluated in the Emergency Gap Funding context. The Board also may wish to ask RDA staff how each review standard is weighted, whether any standard results in automatic rejection of an application, and other questions. Alternatively, the Board could request RDA staff conduct a deeper analysis of these issues and report back to them in a future meeting. RDA staff has provided additional information on the process for the purposes of this discussion: 1.The following project review standards in the 2021 NOFA guidelines and application handbook are used by RDA staff to help form their recommendations. a. Alignment with project priorities; b. Content and quality of the project narrative; c. Qualifications and experience of the applicant and development team; d. Content, effectiveness, and appropriateness of the budget, sources and uses, operating proforma, and related assumptions; e. The readiness of the project to proceed to construction; f. Any and all content regarding building and site design; 2.A Threshold Requirement of the HDLP Program is described in section 3.2 of the 2022 Emergency Gap Funds Guidelines + Application Handbook [Attachment C1 and C2]. The section states: Applicants and their development teams must have: 1) the experience, financial expertise, and technical capacity to deliver a project that meets all the requirements contained herein; and 2) the demonstrated ability to maintain long-term viability and compliance of affordable housing projects. The application form (attached) includes a section to describe the Development Team. This section requires applicants to list the Firm/Organization, Contact Person, and Years Experience. 3.The RDA’s overall goal of the HDLP is to provide low-cost financial assistance to incentivize the development and preservation of affordable housing throughout the City and the developer experience requirement ensures affordable housing development can be successfully carried out. Development Teams are often comprised of numerous firms/organizations with various roles (i.e., Architect, Contractor, Construction Manager, Legal, Property Manager, Lenders/Investors, etc.). The development team size and members are flexible which creates opportunities for a diverse mix of experience and backgrounds to participate in RDA funded projects. The overall expertise of the Development Team rather than specific individuals is considered, which further allows for varying levels of expertise to participate. 4.We [RDA staff] are committed to equity in marketing these opportunities to professionals and leaders of diverse backgrounds and cast a wide net inviting submissions through social media posts, e-blasts, and industry website banner ads. If Board members know of additional smaller, newer, and/or BIPOC developers and/or contractors that they could share with us, we would be Page | 4 happy to meet with them and will add them to our developer outreach list for future opportunities. O p e n u n t i l e x p e n d e d A P P L I C A T I O N D E A D L I N E w w w .s l c r d a .c o m R E L E A S E D A T E NOTICE OF FUNDING AVAILABILITY J u n e 2 , 2 0 2 2 2 0 2 2 EM E R G EN C Y G A P F UN D S G U I D E L I N E S + A P P L I C A T I O N HAN D B O O K 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 1 TABLE OF CONTENTS _____ SECTION 1: INTRODUCTION & OVERVIEW .................................................................................................. 2 SECTION 2: GENERAL PROVISIONS ............................................................................................................. 4 SECTION 3: THRESHOLD REQUIREMENTS ................................................................................................... 5 SECTION 4: APPLICATION REQUIREMENTS ................................................................................................. 7 SECTION 5: APPLICATION, REVIEW & APPROVAL PROCESS ........................................................................ 8 SECTION 6: PROJECT PRIORITIES & INTEREST RATE REDUCTIONS ...........................................................10 SECTION 7: COMPLIANCE .......................................................................................................................... 13 SECTION 8: ATTACHMENTS ....................................................................................................................... 13 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 2 SECTION 1: INTRODUCTION & OVERVIEW 1.1 Introduction In releasing this Notice of Funding Availability (NOFA) for Emergency Gap Funding through the Housing Development Loan Program (HDLP), the goal of the Redevelopment Agency of Salt Lake City (“RDA”) is to provide low-cost financial assistance to incentivize the development and preservation of affordable housing within the city limits where unanticipated gaps in financing have occurred and immediate funding is critical for a project to break ground in a timely manner. Qualifying projects must be able to close on an RDA loan within 90 days of RDA Board approval. Projects without an evident and immediate need for funding do not qualify for this program, but may be eligible for other RDA programs. Qualified housing developers must demonstrate their ability to: 1) construct and/or rehabilitate affordable housing developments, 2) align their projects with identified affordable housing priorities, 3) close within 90 days of RDA Board approval, and 4) maintain/manage affordable housing developments. Housing developers that can demonstrate these abilities are encouraged to submit applications. 1.2 Intent It is intended that funds allocated through the HDLP will provide for an unanticipated emergency GAP in financing for the following types of projects: a) Provide a mix of affordable housing, serving a range of households and income levels, consistent with income limits and affordability requirements for each fund source, to promote housing opportunity and choice throughout the City for household sizes ranging from single persons to families. b) Foster a mix of household incomes in projects and neighborhoods and to disperse affordable housing projects throughout the City to encourage a balance of incomes in all neighborhoods and communities. c) Promote equity and anti-displacement efforts through the development and preservation of affordable housing in low-income neighborhoods where underserved groups have historic ties, including neighborhoods where low-income individuals and families are at high risk of displacement. d) Contribute to the development of sustainable, walkable neighborhoods to expand housing choice near transportation, services, and economic opportunity. e) Support an array of scale of project types, including detached housing, accessory dwelling units, rowhouses, and small to large scale multifamily buildings, that contribute to neighborhood context and livability. f) Incorporate green-building elements and energy efficiency to lower housing expenses, conserve resources, and promote resiliency. g) Leverage private and non-city funding sources to ensure the greatest number of quality affordable housing units are preserved or produced. h) Be provided as loans that are repaid over time and not grants, forgivable loans, or indefinitely deferred loans. 1.3 Emergency Gap Housing Development Loan Program Questions i. Questions: Prospective applicants may submit clarification questions to the RDA about the Emergency Gap HDLP via email to Tracy Tran, at: tracy.tran@slcgov.com. Please check the RDA’s website, www.slcrda.com, regularly for any updates, corrections, or posted questions and answers regarding the HDLP. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 3 1.4 Submittal Deadline The application deadline is as follows: Funding Type Emergency Gap Funds Open on ongoing basis until expended* * Emergency Gap Funds will be available until expended or until June 2023, whichever is sooner. Applications for these funds will be reviewed and accepted on a first come, first serve basis. Inquiries may be made to RDA staff for available fund balance. Refer to Section 4 for additional detail on the requirements and the process for submitting an application. 1.5 Submittal Requirements To be considered complete, application submittals must meet the application requirements as outlined in Section 4. Incomplete applications will not be accepted. 1.6 Funding Decision After an initial review to ensure applications are complete and meet threshold requirements, the process for awarding funding shall be carried out in two parts: 1) the Project Review Body shall evaluate applications and provide funding recommendations, and 2) the RDA Board of Directors shall consider funding recommendations and select projects for funding awards subject to the negotiation of final terms. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 4 SECTION 2: GENERAL PROVISIONS 2.1 Funds Availability Through the HDLP the RDA intends to solicit, evaluate, select, and fund the construction and/or rehabilitation of affordable housing projects. The funds aim to increase the availability and accessibility of affordable housing in Salt Lake City. For FY2022, the RDA Board of Directors has set aside approximately $3 million for emergency gap funding. Emergency Gap funding is allocated through a transparent public process to be administered by the RDA, for which any developer/community group may apply with a project that meets affordable housing goals. FUNDS CATEGORY AMOUNT* Emergency Gap $3,082,500 *Note: Amounts are approximate. Additional funds may become available after this document has been published. 2.2 Standard Loan Terms and Conditions The purpose of this funding is to expand housing opportunities for low- and moderate-income households where unanticipated emergency gaps in financing are present. This shall be accomplished by reducing a project’s financing cost from unforeseen expenses to reduce housing costs over an extended period. Flexibility shall be provided to accommodate a wide range of projects that may be dependent upon myriad of underwriting standards by outside lenders. Please see Attachment B for the standard loan terms and conditions for 1) Gap Financing: Rental Construction to Permanent, and 2) Gap Financing: Homeownership Construction. 2.3 Funding Commitment Successful applicants under the HDLP will receive a conditional commitment of funding and must close on their loan within 90 days of RDA Board approval. The commitment will expire if the project has not obtained all required financial, legal, and regulatory approvals necessary for loan closing within the established funding commitment period. 2.4 Relocation Displacement is strongly discouraged. However, if it is necessary and unavoidable, projects awarded funding must submit a relocation plan that complies with all Federal, State and local real property acquisition and relocation requirements, and, at a minimum, must comply with Salt Lake City’s Residential Demolition Provisions, City Code 18.64.050, and the Federal Uniform Relocation Assistance and Real Property Acquisition Act. 2.5 Design Requirements Projects shall align with applicable design guidelines and comply with all applicable Salt Lake City building codes and ordinances. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 5 SECTION 3: THRESHOLD REQUIREMENTS ______ 3.1 Eligible Applicants Applications will be accepted from: i. For-profit corporations, partnerships, joint ventures, or sole proprietors. ii. Private incorporated non-profit agencies with IRS 501(c) designation. iii. Public housing agencies or units of local government. 3.2 Development Team Experience Applicants and their development teams must have 1) the experience, financial expertise, and technical capacity to deliver a project that meets all the requirements contained herein, and 2) the demonstrated ability to maintain long-term viability and compliance of affordable housing projects. 3.3 Eligible Project Types Eligible project types include the following: i. New Construction: Construction of new housing. ii. Adaptive Reuse: Conversion or adaptive reuse of existing non-residential structures for housing. iii. Rehabilitation: Substantial rehabilitation of existing substandard housing units that do not meet the City’s minimum housing or building code. 3.4 Eligible Activities Eligible activities include hard construction costs, site improvements, and related soft costs. 3.5 Site Control Evidence of site/location control must be demonstrated through ownership, option, sale agreement, or long-term lease. 3.6 Minimum Affordability For rental units, a minimum of 20% of the project’s total residential units must be affordable for the proposed development to be eligible for financing. For a unit to be considered affordable, its rent must be restricted as affordable to households earning 60% of the area median income (“AMI”) and below as per guidelines established by the U.S. Department of Housing and Urban Development (“HUD”). RDA funding shall be sized in proportion to the affordable component, taking into consideration the AMI structure and number of units within the project. Affordable homeownership developments should be restricted to households earning 80% AMI and below as per guidelines established by the HUD. The number of affordable units and level of affordability for affordable homeownership developments will be evaluated on a case-by-case basis. 3.7 RDA Guiding Framework Requirements Projects seeking Emergency Gap HDLP funds shall comply with the RDA’s strategic operational document, the Guiding Framework, which outlines the mission, values, thresholds for financing, and Livability Benchmarks expected of RDA financially-supported projects. Please see Attachment E. 3.8 Sustainability Per the RDA’s Sustainable Development Policy, all new construction projects receiving any RDA funds (and rehabilitation projects receiving more than $200,000) must meet all the following requirements: • Designed to earn an Energy Star score of 90 • 100% electric building operation (no on-site fossil fuel combustion) • Participation in SLC’s Energy Benchmarking Program: Annual operational data must be submitted to Salt Lake City’s Elevate Buildings Program 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 6 Projects must submit a Statement of Energy Design Intent (“SEDI”) from ENERGY STAR to verify required Score of 90+ and corresponding EUI target with application submission. If a project’s energy use cannot yet be modeled at the time of application, the SEDI will be required prior to loan closing. Please see the following link for more information: https://www.energystar.gov/buildings/resources_topic/commercial_new_construction/achieve_designed _earn_energy_star All projects receiving a building permit after January 1, 2023, are required to meet the RDA’s Sustainable Development Policy requirements. 3.9 Financing Gap HDLP Funds are limited to 10% or less of the project’s financing sources. Projects shall demonstrate RDA funding is necessary for the project to succeed and that the request is reasonable. Applicants must maximize private market funding sources and obtain commercial loans sized with the highest loan-to-value and lowest debt service to minimize the HDLP request. 3.10 Policies and Master Plans Projects shall align with the City’s Housing Plan, Project Area Plans, City’s Master Plans, and other applicable adopted plans and policies. 3.11 Closing Requirement If selected and approved, the Applicant must be able to close the loan within 90 days of RDA Board approval. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 7 SECTION 4: APPLICATION REQUIREMENTS 4.1 Application Components To be considered complete, application submittals must include all of the following components: SECTION DESCRIPTION 1 Application Form (form provided) The Application Form, including the following information: A. Project summary. B. Applicant summary. C. Development team overview. D. Housing and land use overview. E. Property overview. F. Project priorities. G. Project description. H. Applicant experience. I. Financials. J. Applicant certification. K. Additional applicant attachments (if applicable). 2 Other Attachments Supporting documents, including the following: A. Preliminary project drawings, including a conceptual site plan (including the context of the area), elevation drawings, and architectural renderings (if available). B. Proof of site control C. ENERGY STAR Statement of Design Intent (SEDI) D. Sources and uses. E. Financing term sheets (if available). F. Operating proforma. G. Project timeline, including significant project milestones. H. Notes from a Salt Lake City Development Review Team (DRT) meeting (if available). 4.2 Completeness Submissions lacking one or more of the requested documents may be considered incomplete or irregular. The RDA reserves the right to reject any incomplete or irregular submission and reserves the right to waive any non-material irregularity in submissions. The RDA reserves the right to reject any and all applications. 4.3 Submittal Process Applications shall be submitted electronically via email to: Tracy Tran, Project Manager, tracy.tran@slcgov.com. Application documents must be clearly labeled to correspond with the Application Component Sections outlined in section 4.1. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 8 SECTION 5: APPLICATION, REVIEW, & APPROVAL PROCESS ______ The Application, Review & Approval Process shall be carried out in five phases, as follows. The deadlines and specific dates listed below are for the competitive HDLP applications for projects not within a high opportunity area. PHASE DATE/TIME MILESTONE 1 Application Thursday, June 2, 2022 • Emergency Gap NOFA released. • Applicants can submit an application as long as funds are available and have not been completely expended or until June 2023, whichever is occurs first. 2 Threshold Review After receipt of a complete application. • Threshold requirement review. Applications that meet Threshold Requirements proceed to Phase 3. 3 Project Evaluation and Review After an application complies with the Phase 2 requirements. • Applications that are forwarded from Phase 2 will be further evaluated. • RDA Finance Committee to provide project funding recommendation. 4 Project Selection Meeting of the RDA Board of Directors (typically 4-5 weeks after Phase 2 is complete, depending on RDA Finance Committee meeting schedule) • RDA Board of Directors Review and Project Selection 5 Funding Award Varies by project. • Conditional Commitment • Firm Commitment and Loan Closing The five phases of the application process are described below. 1. Application: An application process shall be administered by the RDA. 2. Threshold Review: The RDA will conduct a review to determine whether applications conform to the Threshold Requirements outlined in Section 3. Applications must meet every one of these requirements or they will be deemed ineligible and will not be reviewed further. Applications that meet all of the Threshold Requirements will advance to Phase 3, Project Evaluation and Review. 3. Project Evaluation and Review: Applications that meet all Threshold Requirements will be evaluated based on the following: i. Alignment with project priorities. ii. Content and quality of the project narrative. iii. Qualifications and experience of the applicant and development team. iv. Content, effectiveness, and appropriateness of the budget, sources and uses, operating proforma, and related assumptions. v. The readiness of the project to proceed to construction. vi. Ability to close loan within 90 days of RDA Board approval. vii. Any and all content regarding building and site design. Once applications have been evaluated and ranked, they will be forwarded to the RDA Finance Committee. Projects that the RDA Finance Committee finds to score more competitively than other proposed projects 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 9 of similar type will be recommended to the RDA Board of Directors for a conditional commitment for funding. 4. Project Selection: The RDA Board of Directors will make the final selection of projects identified for a conditional commitment of funding. 5. Funding Award: The funding award process will be carried out in two subparts as follows: i. Conditional Commitment Period: The RDA will issue a Conditional Commitment letter to those applications that are selected for funding by the RDA Board of Directors. The Conditional Commitment letter between the RDA and the applicant will contain the general covenants, terms and conditions upon which the RDA will provide financial assistance for the proposed project once financial, legal, regulatory, and design approvals are obtained. During the Conditional Commitment Period, terms and conditions may be refined based on updated project information (i.e. project costs, terms of other financing, etc.). The length of the Conditional Commitment Period will be 90 days or less depending on the project’s scope and timeline. ii. Firm Commitment & Loan Closing: Projects that successfully meet conditions will be invited to execute a Letter of Commitment that finalizes the loan terms, subject to a set of conditions precedent to closing. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 10 SECTION 6: PROJECT PRIORITIES & INTEREST RATE REDUCTIONS ______ Project priority criteria will be utilized to evaluate applications as well as provide for interest rate reductions. CATEGORY POLICY OBJECTIVE BENCHMARK NOFA RANKING WEIGHT* 0.5% INTEREST RATE REDUCTION** 1 Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. Project is a for-sale product that will be sold to income qualified individuals/families. 3 X 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. At least 10% of the total units are 3+ bedroom units. 3 X 3 Target Populations Expand the availability of units for extremely low-income households and special populations, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. At least 10% of the units are set aside for extremely low- income households (30% AMI or less) and/or special populations in partnership with a governmental or nonprofit entity. 3 X 4 Missing Middle & Unique Housing Types Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. Projects are either a missing middle housing type (i.e. townhomes, courtyard apartments, small- scale apartments) or a housing type that is not commonly built: tiny homes, modular homes, pre-fab homes, accessory dwelling units (ADUs) 3 X 5 Sustainability Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. Projects must be built to Off-Site Net Zero or On-Site Net Zero standard as described in the RDA’s Sustainable Development Policy. 1 X*** 6 Transportation Opportunities Promote a multimodal transportation network and ensure convenient and Projects must meet two of the following: 1 X 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 11 equitable access to a variety of transportation options. • Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/ residents • Includes a commercial project that includes employee shower, locker, and bicycle facilities • Is located within 1/3 mile walking distance of a TRAX station or S-Line station • Implements reduced parking strategies without negatively impacting the neighborhood • Incorporates majority of parking within a primary structure to minimize the need for a surface parking lot. 7 Neighborhood Safety Utilize the development of housing to reduce the number of vacant and distressed buildings and lots to reduce crime and return land to a productive use. Projects are located within an active RDA project area, refer to Attachment B: RDA Project Area Map and incorporate documented Crime Prevention through Environmental design (CPTED) principals. 1 X 8 Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an analysis of quality-of-life 1 X 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 12 indicators. Refer to Attachment A: High Opportunity Area Map and Table. 9 Architecture & Urban Design Encourage housing that is high- quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices. Buildings shall include an active ground floor use, significant ground floor glass, durable building materials and engaging building entrances as determined by RDA staff. 1 X 10 Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. Projects are mixed- use and establish new services, amenities, or underrepresented business types in the neighborhood that the local community identifies as lacking and desired. 1 X 11 Historic Preservation /Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. Acknowledge a neighborhood’s history and maintain its unique character through preservation, rehabilitation, or repurposing of historic or underutilized structures. 1 X 12 Public Art Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. Project contributes at least 1.5% of the RDA contribution towards the installation of art onsite or towards the RDA art fund as outlined in the RDA Art Policy. 1 X *Note: NOFA Ranking Weight: Uses a number (the weight) between 1 and 3 to assess the importance of the funding priority, with 1 being of lower importance and 3 being of the highest importance. **Note: 0.5% Interest Rate Reductions: While 12 interest rate reductions will be available, the maximum interest rate can be reduced a maximum of 2%, thereby reducing the interest rate to a minimum of 1%. Please see Attachment B for applicable standard loan terms and conditions. ***Note: Sustainability Interest Rate Reduction: As per the RDA’s Sustainable Development Policy, projects built to an Off-Site Net Zero standard are eligible for a 1% interest rate reduction and projects built to an On-Site Net Zero standard are eligible for a 2% interest rate reduction. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 13 SECTION 7: COMPLIANCE ______ Each applicant must certify that the project is, and will be, in compliance with all applicable federal and local rules and regulations. Projects will be subject to ongoing monitoring to evaluate and ensure that projects comply with affordability requirements, applicable funding priority polices, and other requirements as determined in the loan agreement. SECTION 8: ATTACHMENTS Attachment A: High Opportunity Area Map and Table Attachment B: Standard Loan Terms and Conditions Attachment C: RDA Project Area Map Attachment D: Maximum Rents & Incomes Attachment E: RDA Guiding Framework 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 14 Attachment A: High Opportunity Area Map and Table High opportunity areas are geographical locations within the city that provide conditions that expand a person’s likelihood for social mobility. These areas have been identified through an analysis of quality-of-life indicators, homeownership rate, poverty, cost-burdened households, educational proficiency, unemployment rate, and labor force participation. With these multiple indicators, a single composite, or standardized, score is calculated for each census tract. Scores may range from 1 to 10, with 1 indicating low opportunity and 10 indicating high opportunity. A census tract with a standardized score above that of the citywide average shall be designated as an Area of Opportunity. A census tract with a standardized opportunity index of 6 or higher shall be designated as an Area of Opportunity. HIGH OPPORTUNITY AREA MAP 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 15 HIGH OPPORTUNITY AREA TABLE Tract Opportunity Index Tract Opportunity Index 100100 5.0 103000 4.6 100200 5.5 103100 3.3 100306 3.5 103200 4.8 100307 3.5 103300 5.1 100308 3.1 103400 5.7 100500 3.7 103500 6.6 100600 3.3 103600 8.2 100700 4.6 103700 8.2 100800 5.3 103800 6.2 101000 5.7 103900 7.5 101101 6.4 104000 7.9 101102 6.2 104100 7.1 101200 6.8 104200 7.5 101400 4.6 104300 6.2 101500 4.8 104400 7.5 101600 5.3 104700 6.6 101700 4.8 104800 6.4 101800 6.2 104900 6.6 101900 4.8 110103 8.2 102000 3.7 110200 7.9 102100 3.7 110300 7.5 102300 2.8 111400 2.6 102500 3.7 111802 3.3 102600 2.4 113906 2.4 102701 3.1 114000 NA 102702 2.6 114100 NA 102801 2.4 114500 NA 102802 1.9 114700 NA 102900 1.9 114800 NA Source: Opportunity Index derived by Kem Gardner Policy Institute, University of Utah from HUD Affirmatively Furthering Fair Housing database and HUD Comprehensive Housing Affordability Strategy, U.S. Census Bureau, and Utah State Office of Education. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 16 Attachment B: Standard Loan Terms and Conditions Standard loan terms and conditions for I) Gap Financing: Rental Construction to Permanent and II) Gap Financing: Homeownership Construction are as follows: I. GAP FINANCING: RENTAL CONSTRUCTION TO PERMANENT Limits to Assistance: • Maximize Other Sources: Applicants must demonstrate that they have maximized other available financing sources thereby limiting HDLP funding to the lowest amount necessary to close the funding gap and assure project feasibility. • Loan to Value: A loan-to-value limit is not applicable. However, land and project costs shall be reasonable as compared similar projects in size, scope, and location. • Debt Service Coverage Ratio (DSCR): Repayment terms for amortizing HDLP loans will be calculated as described herein and will be based on a DSCR of 1.10 inclusive of the RDA’s loan and all senior debt. • Cash Flow: For loans that qualify for a cash flow repayment structure, pursuant to the standards contained herein, applicants must demonstrate that the HDLP loan can be repaid within its scheduled term or at the end of the term. • Proportion to Affordability: Funding shall be sized in proportion to the affordable component, taking into consideration the AMI structure and number of units in the project. Repayment: • Depending on the project’s capacity for repayment, loans may be repaid as an amortized loan, a cash flow loan based on available cash flow, or a combination of both types of loan. o Amortized Loan: The RDA will determine what portion of its loan can be paid on an amortized schedule with required payments using the DSCR standards contained herein and the DSCR requirements of the senior lender. o Cash Flow Loan: If full amortization is not feasible due to limited cash flow, funds shall be repaid from an agreed upon percentage split of surplus cash flow. Cash flow loans shall be considered only for projects that provide a high level of affordability, target a difficult to serve population, or include other significant public benefit. • At the RDA’s discretion, payments may not be required and interest may not accrue or accrue at a reduced interest rate during the construction and lease-up phase. Upon completion of construction, lease-up, project stabilization, or other fixed date, loans shall begin to accrue interest and shall be subject to repayment. • Any accrued but unpaid interest and principal is due in full at loan maturity. • Loans can be prepaid in whole or in part at any time without penalty. Prepayment does not end the affordability period before its original end date. Term: • RDA loan terms will generally match the term of permanent senior debt, generally up to a maximum of 30-years for projects with non-HUD financing and up to a maximum of 40 years for projects with HUD financing. • Commencement of the loan term and/or repayment period may be deferred for a period of time to allow for completion of construction and lease-up phase. Interest Rate: • Base Interest Rate: The base interest rate shall be as follows: o Amortized Loans: The current U.S. Treasury Yield Curve Rate for the loan term plus 1%, locked in within a month of loan closing, with a maximum base interest rate of 3%. The interest rate 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 17 for loans with a term longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve Rate in this calculation. o Cash Flow Loans: The current U.S. Treasury Yield Curve Rate for the loan term plus 2%, locked in within a month of loan closing, with a maximum base interest rate of 4%. The interest rate for loans with a term longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve Rate in this calculation. • Interest will accrue as simple interest. • Funding Priority Incentives: Projects shall have the ability to reduce the Base Interest Rate if the project meets the current funding priorities as established annually pursuant to the Funds Policy. For each funding priority met, the project is eligible to receive a .5% reduction from the Base Interest Rate, with the ability to reduce the interest rate to a minimum of 1%. • Interest rates are subject to an adjustment, of up a 1% deviation, based on project cash flow and debt coverage ratio calculated at time of application and underwriting. Affordability Restriction: • A restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for at least the same period as the senior financing or a minimum of 30 years, whichever is greater. Both a rent and income restriction shall be included to limit the maximum rent that can be charged for a unit and to require that the unit be made available only to households with qualifying incomes. Subordination to Senior Debt: • HDLP loans may be subordinated to leverage private financing, with the priority among subsidy lenders typically established based upon size of the loans. Security: • Adequate security shall be required, generally in the form of a deed of trust, promissory note, and guarantees. Developer Fee: • Given the rent restrictions on affordable housing projects, affordable housing developments typically do not have substantial cash flow after debt service on their primary loans. As such, developer fees are recognized as a significant part of the income on which affordable housing organizations depend for their operations. For projects utilizing a low-income housing tax credit (“LIHTC”) program, the calculation to determine a maximum developer fee shall be consistent with Utah Housing Corporation’s policy, which caps the maximum developer fee. The maximum developer fee for projects not utilizing LIHTC will be evaluated on a case-by-case basis in the context of the proportion of affordable units and AMIs. Borrower Contribution: • Borrowers shall contribute a source of financing to the project, whether through an equity contribution or a deferred developer fee or a combination of both. The level of borrower contribution will be considered on a case-by-case basis and will be evaluated based on the type of ownership entity and level of public benefit provided by the project. • For Low Income Housing Tax Credit (“LIHTC”) projects that are requesting a cash flow loan, the borrower shall maximize the amount of deferred developer fee allowed under Utah Housing Corporation’s standards to be allowed in tax credit basis and acceptable for their tax credit investor in that this amount must be payable within a time frame allowed by the LIHTC program as approved by the project’s tax counsel. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 18 • Projects that have not maximized a developer fee, pursuant to the standards contained herein, or that serve lower AMIs or special populations, such as permanent supportive housing, may have the ability to waive the borrower contribution. Disbursement of Funds: • Funding shall be disbursed as construction draws evidenced by supporting documentation demonstrating that work has been completed and that the project is in good financial and legal standing. Other • Loans are non-assumable without written permission from the RDA. • The Applicant must be able to close the loan within 90 days of RDA Board approval. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 19 II. GAP FINANCING: HOMEOWNERSHIP CONSTRUCTION Limits to Assistance: • Maximize Other Sources: Applicants must demonstrate that they have maximized other available financing sources thereby limiting HDLP funding to the lowest amount necessary to close the funding gap and assure project feasibility. • Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is appraised value inclusive of the RDA’s loan and all senior debt. • Proportion to Affordability: Funding shall be sized in proportion to the affordable component, taking into consideration the AMI structure and number of units in the project. Repayment: • Loans shall be repaid from the sale of housing units in the project. HDLP funds may be repaid after payout to senior loans have been accounted for. • Any accrued but unpaid interest and principal is due in full at loan maturity. • Loans can be prepaid in whole or in part at any time without penalty. Prepayment does not end the affordability period before its original end date. Term: • The maximum loan term shall be 36-months with the ability for one 12-month extension if the project is demonstrating a progression toward completion. Interest Rate: • Base Interest Rate: The base interest rate shall be the current U.S. Treasury Yield for the loan term plus 2.5%, locked in within a month of loan closing, with a maximum base interest rate of 3%. Interest will accrue as simple interest. • Funding Priority Incentives: Projects shall have the ability to reduce the Base Interest Rate if the project meets the current funding priorities as established pursuant to the Funds Policy. For each funding priority met, the project is eligible to receive a .5% reduction from the Base Interest Rate, with the ability to reduce the interest rate to a minimum of 1%. • Interest shall accrue on all loan proceeds disbursed commencing on the date of disbursement. • Interest rates are subject to an adjustment, of up a 1% deviation, based on project cash flow and debt coverage ratio calculated at time of application and underwriting. Affordability Restriction: • A restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for at least the same period as the senior financing or a minimum of 15 years, whichever is greater. Both a sales price and income restriction shall be included to limit the maximum sales price that can be charged for a unit and to require that the unit be made available only to households with qualifying incomes. Subordination to Senior Debt: • HDLP loans may be subordinated to leverage private financing, with the priority among subsidy lenders is typically established based upon size of the loans. Security: • Adequate security shall be required, generally in the form of a deed of trust, promissory note, and guarantees. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 20 Developer Fee: • Maximum developer fees will be considered on a case-by-case basis and will be evaluated based on the affordability levels of the project, type of ownership entity, and level of public benefit provided by the project. Borrower Contribution: • Borrowers shall contribute a source of financing to the project, whether through an equity contribution or a deferred developer fee or a combination of both. The level of borrower contribution will be considered on a case-by-case basis and will be evaluated based on the affordability levels of the project, type of ownership entity, and level of public benefit provided by the project. • Deferred developer fees shall be paid after the HDLP loan has been fully repaid. Disbursement of Funds: • Funding shall be disbursed as construction draws evidenced by supporting documentation demonstrating that work has been completed and that the project is in good financial and legal standing. Other • Loans are non-assumable without written permission from the RDA. • The Applicant must be able to close the loan within 90 days of RDA Board approval. 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 21 Attachment C: RDA Project Area Map 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 22 Attachment D: 2022 Maximum Incomes and Rents 2022 Income Limits: Salt Lake County AMI Number of Persons in Family 1 2 3 4 5 6 7 8 40% $28,675 $32,775 $36,875 $40,950 $44,250 $47,525 $50,800 $54,075 50% $35,850 $41,000 $46,100 $51,200 $55,300 $59,400 $63,500 $67,600 60% $43,013 $49,163 $55,313 $61,425 $66,375 $71,288 $76,200 $81,113 80% $57,350 $65,550 $73,750 $81,900 $88,500 $95,050 $101,600 $108,150 Source: Based on data acquired from the U.S. Department of Housing and Urban Development’s FY 2022 Income Limits Documentation System. 2022 Maximum Rents AMI Bedrooms Studio 1 2 3 4 5 40% $717 $768 $922 $1,065 $1,188 $1,311 50% $896 $960 $1,152 $1,331 $1,485 $1,638 60% $1,075 $1,152 $1,383 $1,597 $1,782 $1,966 80% $1,434 $1,537 $1,844 $2,130 $2,376 $2,622 Source: Based on data acquired from the FY2022 Novogradac Rent & Income Limit Calculator 2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING REDEVELOPMENT AGENCY OF SALT LAKE CITY 23 Attachment E: RDA Guiding Framework Project Name Requested Funding Amount Total Project Cost (TPC) Estimated Project Start Date Estimated Project Completion Date Project Street Address City State Zip Contact Name Contact Phone Contact Email Address Business Name Tax ID Number Street Address City State Zip Entity Type:☐LLC ☐501(c) 3 ☐Partnership ☐Joint Venture ☐C Corp ☐Other: % Ownership ☐Yes ☐No Through a Notice of Funding Availability (NOFA) for Emergency Gap Funding, the Redevelopment Agency of Salt Lake City intends to allocate funding through the Housing Development Loan Program (HDLP) for projects that are impactful in producing affordable housing units within Salt Lake City municipal boundaries. This Application is the first step in the process to request funding through the HDLP. Prospective applicants are strongly encouraged to read the HDLP Emergency Gap Funding Guidelines and Application Handbook in its entirety before beginning the application process. ☐Sole Owner 451 South State Street, Room 118, PO Box 145518, Salt Lake City, Utah 84114 I 801-535-7240 I www.slcrda.com A: P R O J E C T S U M M A R Y Ownership - Provide the following information for officers and shareholders owning 10% or more of the entity. ☐S Corp B : A P P L I C A N T S U M M A R Y Date of Application Role in Proposed ProjectName, Title Are there any judgments or liens outstanding against the applicant? Project Type: ☐New Construction, Undeveloped Site ☐New Construction, Demolition of Existing Structures ☐Renovation/Rehabilitation of Existing Housing ☐Addition to Existing Structure ☐Adaptive Reuse of an Existing Structure ☐Other: HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 1 APPLICATION | AFFORDABLE HOUSING: EMERGENCY GAP FUNDING Requested Funding Amount to TPC (%) Role Years Experience Developer General Partner Architect Contractor Construction Manager Legal Prop. Manager Market Study Appraisal Environ. Review Primary Lender Other Other Total Residential Units: Studio:Studio:Studio: 1 Bed:1 Bed:1 Bed: 2 Bed:2 Bed:2 Bed: 3 Bed:3 Bed:3 Bed: 4 Bed:4 Bed:4 Bed: Total:Total:Total: Land Area: Building Area: ☐Yes ☐No C. D E V E L O P M E N T T E A M O V E R V I E W Development Team: Please provide the following information for each relevant development team member. ☐Multi-family - 101 to 200 units ☐Multi-family - 200+ units ☐Single-Family Attached/Townhomes Commercial Area: Parking Ratio: Firm/Organization Contact Name, Email If not, please indicate what process(es) will need to be completed in order to move forward, and the status of these process(es). 40% AMI and Below Units: Housing/Land Use Type: ☐Multi-family - <20 units ☐Multi-family - 21 to 50 units ☐Multi-family - 51 to 100 units ☐Live/work Units ☐Other: D. H O U S I N G & L A N D U S E O V E R V I E W 60% - 41% AMI Units: What is the current or proposed zoning and use(s) of the site? Does the project meet all current zoning, infrastructure, and utility requirements? Note: RDA staff recommends that Projects be reviewed by Salt Lake City's Development Review Team (DRT). If a Project is reviewed by DRT, DRT notes should be attached to the application submittal. HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 2 ☐ No ☐ Yes ☐ No If Yes, will the proposed project displace residents and/or businesses? E. P R O P E R T Y O V E R V I E W Is the site occupied? ☐ Yes 18.64.050, and the Federal Uniform Relocation Assistance and Real Property Acquisition Act. ☐ If residents and/or businesses are anticipated to be displaced, describe how impacts to low-income residents will be resolved: Tax Parcel Identification Number(s): Does the Applicant have site control of the property? ☐ Yes ☐ No Please attach proof of site control. If the Applicant does not currently have site control, explain how site control will be obtained, including timing: F: P R O J E C T P R I O R I T I E S Note: Refer to the HDLP Guidelines and Application Handbook for Project Priority benchmark requirements. Describe how the project will meet the Benchmark(s) for each of the selected Project Priorities. HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 3 Does the project meet the sustainability threshold to achieve a "Designed to Earn ENERGY STAR" score of 90+ and is the building 100% electric? ☐Yes ☐No Please attach ENERGY STAR Statement of Design Intent (SEDI) as referenced on Page 6 of HDLP Guidelines and Application. Select the Project Priorities that the project meets: ☐Homeownership ☐Family Housing ☐Target Populations ☐Missing Middle/Unique Housing Types Transportation Opportunities Neighborhood Safety Expand Opportunity Architecture & Urban Design Commercial Vitality Historic Preservation/Adaptive Reuse Public Art ☐Yes, 4%☐Yes, 9% ☐Yes, 4%☐Yes, 9%☐No Is the project anticipated to use Low Income Housing Tax Credits as a source of financing? ☐No If Yes, are Low Income Housing Tax Credits already awarded to the project? I . F I N A N C I A L S H. A P P L I C A N T E X P E R I E N C E G. P R O J E C T D E S C R I P T I O N Provide additional detail on the project concept, amenities, and design, (i.e. transit-oriented development, public space, historic preservation, sustainability features, supportive services, etc.). A separate attachment may be included. projects for the long-term. A separate attachment may be included. Provide the proposed term, interest rate*, amortization schedule, and repayment schedule of RDA funds being applied for. In addition, provide a summary and status of other sources of financing. A separate attachment may be included. *Please refer to Section 6 and Attachment B of the HDLP Guidelines and Application Handbook to calculate interest HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 4 By (signature) Title Date By (signature) Title Date Check if Complete ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ Check if Complete ☐ ☐ ☐ ☐ ☐ A T T A C H M E N T C H E C K L I S T Applicant (print) 1.Application Form (this form) A.Project summary. B.Applicant summary. C.Development team overview. D.Housing and land use overview. E.Property overview. F.Project priorities. G.Project description. H.Applicant experience. I.Financials. J.Applicant certification. K.Additional applicant attachments (if applicable). J: A P P L I C A N T C E R T I F I C A T I O N For an application to be considered complete the following sections must be completed in full: 2.Attachments A.Preliminary project drawings, including a conceptual site plan (including the context of the area), elevation drawings, and architectural renderings (if available). B.Proof of site control. C. ENERGY STAR Statement of Design Intent (SEDI) D.Sources and uses. E.Financing term sheets (if available). F.Operating proforma. G.Project timeline, including significant project milestones. H.Notes from Salt Lake City Development Review Team (DRT) meeting (if available). Applicant Certification I/We hereby certify that all statements in this application are true and complete. Applicant (print) HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 5 How did you hear about this Notice of Funding Availability? ☐Our website ☐Email ☐Online Advertisement ☐Social Media ☐Utah Public Procurement Place Website or email ☐Other: ☐ OT H E R AFFORDABLE HOUSING 2022 NOTICE OF FUNDING AVAILABILITY (NOFA) EMERGENCY GAP FUNDING RDA BOD MEETING –AUGUST 9, 2022 BACKGROUND & OVERVIEW FUNDS AVAILABLE •Total: $3,082,500 APPLICATION PROCESS •Applications Released: June 2, 2022 •Applications Due: o Emergency Gap Funds are available until expended or until June 2023, whichever is sooner. Applications for these funds are reviewed and accepted on a first come, first serve basis. APPLICATION SUMMARY •4 Applications •1 application rescinded recently, now a total of 3 applications •$3,000,000 Total Funding Requests PROJECT SUMMARY •In 2019, a $3.1 M RDA loan was approved to support the adaptive reuse of two existing warehouses by West End LLC •Construction was completed in Fall 2021 •Created 10,900 SF of rentable commercial •The pandemic slowed construction and leasing the building CATEGORY POLICY OBJECTIVE NOFA RANKING WEIGHT 0.5% INTEREST RATE REDUCTION 1. Fund Leveraging Maximize impact by leveraging funds with the private market and with other available public resources. Threshold N/A 2. Sustainability Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency.Threshold X 3. Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership.3 X 4. 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.3 X 5. Target Populations Expand the availability of units for extremely low-income households and special populations, thereby providing housing options for individuals or families that are homeless or at risk of homelessness.3 X 6.Missing Middle & Unique Housing Types Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents.3 X 7.Transportation Opportunities Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options.1 X 8. Neighborhood Safety Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and stabilize communities.1 X 9.Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods.1 X 10. Architecture & Urban Design (Neighborhood Impact) Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices.1 X 11. Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs.1 X 12. Historic Preservation /Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods.1 X 13. Public Art Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience.1 X FUNDING PRIORITIES THRESHOLDS FUND LEVERAGING: Maximize impact by leveraging funds with the private market and with other available public resources. SUSTAINABILITY: Projects required to be designed to achieve a “Designed to Earn Energy Star” Score of 90 or higher and participate in the City’s Elevate Buildings program once the building is operating. Per the Sustainable Development Policy, Projects that break ground before January 1, 2023, may have an energy star score of 80 or higher. MINIMUM AFFORDABILITY: For rental units, at least 20% of the project’s residential units must be incomed restricted to 60% AMI or less. THRESHOLD AND APPLICATION REVIEW APPLICATION CONSIDERATIONS: •Funding priorities •Project readiness •Content and quality of application •Qualifications and experience of applicant and development team •Content, effectiveness and appropriateness of financial details •Building and site design APPLICATIONS RECOMMENDED FOR FUNDING: •Meet threshold requirements and funding priorities •Have secured financing and tax credits •Ready to be built soon •Ability to close loan within 90 days APPLICATION SUBMITTALS MAP APPLICATION SUMMARY THE NEST 382 RIO GRANDE 1700 SOUTH AFFORDABLE 230 W 1700 S 144 SOUTH 144 S 500 E Request Amount $1,000,000 $1,000,000 $1,000,000 Project Cost $62,841,781 $57,835,943 $35,177,365 RDA % of Total Project Cost Current RDA Loan Request 1.59%1.73%2.84% Overall RDA Project Participation (%) of total project cost 3.31%1.73%5.05% RDA Funds per Affordable Unit $9,465.91 $4,219.41 $16,136.36 Tax Credits?Yes, 4%Yes, 4%Yes, 4% Affordable Units and Breakdown 40% AMI and below 41-60% AMI 220 237 110 >61% AMI to 80% Market units Total Units 220 237 110 Percent affordable (60% AMI & below)100%100%100% Unit Mix Studios 140 24 53 1BR 80 130 57 2BR 73 3BR 10 STAFF REVIEW AND RDA FINANCE COMMITTEE PROJECT/APPLICANT ADDRESS PRELIMINARY TERMS* FUNDING REQUEST FUNDING RECOMMENDATION The Nest 382 Rio Grande 2.5%, 20-year term, 40-year amortization $1,000,000 $1,000,000W3 Partners 1700 South Affordable 230 W 1700 S 3.5%, 30-year term/30- year amortization $1,000,000 $1,000,000Wasatch Residential Group, LLC 144 South 144 S. 500 East 1%, 40-year term, 40- year amortization $1,000,000 $1,000,000Red Gate TOTAL $3,000,000 $3,000,000 FUNDS AVAILABLE FY 2021-2022 Emergency Gap Funding $3,082,500 Recommended Emergency Gap Allocations $3,000,000 Funds Remaining –Emergency Gap $82,500 *Final loan terms shall comply with details laid out in the Housing Development Loan Program Guidelines. For projects that have received previous RDA loan commitments, the interest rate reduction calculations may be based on guidelines/approvals from previous years and loans will be consolidated if approved by the Board. o Based on Emergency Gap HDLP Guidelines, these projects meet the thresholds and requirements: RDA Board of Directors o RDA Board to provide final approval SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: July 22, 2022 PREPARED BY: Tracy Tran and Kate Werrett, RDA Project Managers RE: Consideration and Adoption of a Resolution Approving Funding Allocations for Emergency Gap Financing through the Housing Development Loan Program. REQUESTED ACTION: Consider approving affordable housing emergency gap funding allocations as selected through a Notice of Funding Availability for the Housing Development Loan Program. POLICY ITEM: Affordable Housing – Housing Development Loan Program BUDGET IMPACTS: $3,082,500 of RDA funds set aside for affordable housing EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) recently issued a Notice of Funding Availability (“NOFA”) to solicit applications for approximately $3 million available for emergency gap financing through the Housing Development Loan Program (“HDLP”) to incentivize the development and preservation of affordable housing. These funds are available to projects located anywhere within Salt Lake City municipal boundaries. The HLDP is being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”), resolution R-1-2022, and the Housing Development Loan Program Policy (“HDLP Policy”), resolution R-2-2022. The Funds Policy establishes policies for allocating and directing resources for the development and preservation of housing by various funding sources. Highlights of the Funds Policy include: •Housing Funds: The Policy establishes four housing funds based on fund source. The revenues, expenditures, interest, and payments for each fund source shall be separately accounted for to ensure the RDA control and oversight to comply with statutory requirements. •Annual Budgeting Process: The policy provides that on an annual basis, the RDA shall present for the Board’s consideration a Housing Development Funding Strategy that projects revenues for the upcoming fiscal year and proposes funding priorities and allocations. This will allow the RDA to be flexible to address current needs, leverage current opportunities, Page 1 coordinate with other city resources and allow funding priorities to align with evolving plans and policies. The HDLP Policy provides low-cost financial assistance to incentivize the development and preservation of affordable housing within Salt Lake City municipal boundaries. The HDLP provides a centralized application, underwriting, and approval process regardless of the fund source. The HDLP Policy includes: • Funding allocations and priorities are determined on an annual basis. The funding priorities for these funds were based on FY2021-22. However, since this NOFA was released after the Board had approved the project priorities for FY2022-23, RDA staff updated the project priorities/interest rate reductions to reflect the focus on these updated priorities. • The transparent administration of funds through a Notice of Funding Availability (NOFA) process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA may be issued for a specific funding source. NOFAs could be offered on an annual basis or multiple times per year and can be competitive or open-ended depending on availability of funds, priorities, and demand. • A standardized process for approving applications and a uniform set of underwriting policies. Pursuant to the policies, the RDA administered a transparent application process that resulted in four (4) requests for funding totaling $3,750,000 - refer to Attachment A: Application Overview for additional information. The RDA has evaluated application submittals and the RDA Finance Committee (“Committee”) has recommended specific applications for funding. This memorandum includes a summary of application submittals and the Committee’s recommendations for the Board’s consideration and determination of funding allocations. ANALYSIS & ISSUES: Below is an overview of the Emergency Gap Financing HDLP application process: I. Application Process Applications were solicited on an open-ended basis with a call for applications released on June 2, 2022. A copy of the 2022 Emergency Gap Funds Guidelines + Application Handbook can be found here. II. Project Review As part of the application review process, RDA staff analyzed applications according to the HDLP Policy’s eligibility requirements and funding priorities set by the Board, which can be found in Attachment B. The housing priorities include the ability for an applicant to receive an interest-rate reduction if priorities/public benefits are met. When evaluating applications, the Committee considered developer experience, the completeness/quality of the application, the amount of requested funding per affordable unit, unit mix, community impact, and the financial and regulatory readiness of the proposed project. The applications were forwarded to the RDA Finance Committee for their review and recommendation. III. Funding Allocations, Conditional Commitment, and Loan Closing Pursuant to the Policy, the Board will make the final determination of applications to fund. Page 2 Subsequently, the RDA will issue a conditional commitment letter to those applications that are selected for funding. The conditional commitment letter between the RDA and the applicant will contain the covenants, terms and conditions upon which the RDA will provide financial assistance to the proposed project once financial, legal, regulatory, and design approvals are obtained. Prior to closing on a loan, RDA staff will ensure that the project is financially viable, underwriting standards are met, and the use of public funds is necessary for the project to succeed. RDA STAFF REVIEW: As part of the initial application review process, RDA Staff verifies that applications meet the threshold requirements laid out in the 2022 Emergency Gap Funds Guidelines + Application Handbook. RDA staff has noted that three of the four applications (The Nest, 1700 South Affordable, and 144 South) meet the threshold requirements; however, 255 S State does not meet the Threshold Requirement of fund leveraging that limits RDA funds to 10% of the total project cost. This overview can be found in Attachment A: Application Overview. RDA FINANCE COMMITTEE RECOMMENDATION: On July 13, 2022, the Committee made recommendations regarding all applications received to date. The Committee recommended Board approval of the funding requests of the three applications which meet the Threshold Requirements noted in the above section. For the project that does not meet the Threshold Requirements, the Committee recommended that the financing request be funded with other sources of RDA funding outside of the HDLP. Refer to Attachment C: RDA Finance Committee Funding Recommendation for recommendation detail. PREVIOUS BOARD ACTION: • April 12, 2022: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year 2022-23. • March 8, 2022: The Board adopted revisions to the Housing Development Loan Program Policy to direct review of applications to the RDA Finance Committee. • February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy. • August 2021: The Board adopted FY21-22 Affordable Housing Funding Priorities. • June 2021: The Board adopted the 2021-2022 budget, which set aside approximately $2,000,000 for Emergency Gap Financing through the Housing Development Loan Program. One of the projects that was allocated $1,082,500 in HDLP funds in December 2021 rescinded their loan request. Those funds were rolled into this Emergency Gap Financing Notice of Funding Availability through the HDLP. • March 2021: The Board adopted the Housing Development Loan Program Policy. • February 2021: The Board adopted the Housing Allocation Funds Policy. ATTACHMENTS: A. Application Overview B. Project Priorities and Interest Rate Reductions C. RDA Finance Committee Funding Recommendation D. Project Summary Sheets E. Map of Project Locations F. Emergency Gap HDLP 2022 Funding Allocation Resolution Page 3 Attachment A: Application Overview The Nest 382 Rio grande 1700 South Affordable 230 W 1700 S 144 South 144 S 500 E 255 State Street 265 S. State St (Overall) Current RDA Loan Request $1,000,000 $1,000,000 $1,000,000 $750,000 Total RDA Contribution (approved & pending)$2,082,500 $1,000,000 $1,775,000 $15,304,879 Project Cost $62,841,781 $57,835,943 $35,177,365 $95,142,936 # Units 220 237 110 190 RDA Funds per Unit $9,465.91 $4,219.41 $16,136.36 $80,551.99 Current RDA Loan Request 1.59%1.73%2.84%0.79% Overall RDA Project Participation (%) of total project cost 3.31%1.73%5.05%16.09% 20/40 2.5% Interest Cashflow payments with balloon payment at end of term 30/30 3.5% Inte rest Cashflow Loan 40/40 1% Interest Amortizing Loan 30/30 1.63% Interest* Cashflow Loan For Profit - LLC For Profit - LLC For Profit - LLC For Profit - LLC W3 Partners Wasatch Residential Group, LLC Red Gate est. 1995 Valmont est. 2010 EMG est. 1985 Brinshore Development, LLC New Construction New Construction New Construction New Construction Gap Financing for Construction Costs Gap Financing for Construction Costs Predevelopment & Construction Costs Gap Financing for Construction Costs Deed of Trust with Ground Lease to Project llc Special Warranty Deed Special Warranty Deed (100% interest)Deed of Trust 220 (100%) @ 60% AMI 237 (100%) @ 60% AMI 110 (100%) @ 60% AMI 75 (39%) @ Market 91 (48%) @ 60% AMI 24(13%) @ <40% AMI Studio 140 1BR 80 Studio 24 1BR 130 2BR 73 3BR 10 Studio 53 1BR 57 Market 60% <40% Studio 12 17 3 1BR 38 42 13 2BR 20 20 4 3BR 3 9 2 4BR 2 3 2 84 96 96 Letter of Intent Project Priorities/Interest Rate Reductions - These were used to calculate interest rate % above in Proposed Loan Terms Neighborhood Safety, Transportation Opportunities, Neighborhood Impact Neighborhood Safety Transportation Opportunities, Neighborhood Impact, Commercial Vitality, Public Art Transportation Opportunities, Family Housing, Target Populations, Neighborhood Impact, Neighborhood Safety, Historic Preservation/Adaptive Reuse *This project has existing loan with the RDA @ 1.63% interest rate. If project is approved for funding, this loan would fold into existing loan Proposed Loan Terms Term/Amortization Interest Repayment Type Eligible Applicants: 1) For Profit,Partnersp,JV or Sole 2) Private 501c3 3) Public Housing agency, unit of govt Development Team Experience: 1) Experience, Financial and technical cap. 2) LT viability and compliance Financing Gap Requirement: Eligible Project Types: 1) New Construction 2) Adaptive Reuse 3) Rehab: Substantial Eligible Activities: Construction Costs, Site imp and soft costs Site Control: Ownership, option, sale agreement or LT Lease Minimum Affordability: 1) 20% @ 60 AMI 2) Max Income 80%AMI) Unit Mix Sustainability: 1) E-Star Score > 90 (80 if getting a building permit in 2022) Page 4 Attachment B: Project Priorities and Interest Rate Reductions Project priority criteria will be utilized to evaluate applications as well as provide for interest rate reductions. CATEGORY POLICY OBJECTIVE BENCHMARK NOFA RANKING WEIGHT* 0.5% INTEREST RATE REDUCTION** 1 Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. Project is a for-sale product that will be sold to income qualified individuals/families. 3 X 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. At least 10% of the total units are 3+ bedroom units. 3 X 3 Target Populations Expand the availability of units for extremely low-income households and special populations, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. At least 10% of the units are set aside for extremely low-income households (30% AMI or less) and/or special populations in partnership with a governmental or nonprofit entity. 3 X 4 Missing Middle & Unique Housing Types Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. Projects are either a missing middle housing type (i.e. townhomes, courtyard apartments, small-scale apartments) or a housing type that is not commonly built: tiny homes, modular homes, pre-fab homes, accessory dwelling units (ADUs) 3 X 5 Sustainability Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. Projects must be built to Off-Site Net Zero or On-Site Net Zero standard as described in the RDA’s Sustainable Development Policy. 1 X*** Page 5 6 Transportation Opportunities Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options. Projects must meet two of the following: • Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/ residents • Includes a commercial project that includes employee shower, locker, and bicycle facilities • Is located within 1/3 mile walking distance of a TRAX station or S- Line station • Implements reduced parking strategies without negatively impacting the neighborhood • Incorporates majority of parking within a primary structure to minimize the need for a surface parking lot. 1 X 7 Neighborhood Safety Utilize the development of housing to reduce the number of vacant and distressed buildings and lots to reduce crime and return land to a productive use. Projects are located within an active RDA project area, refer to Attachment B: RDA Project Area Map and incorporate documented Crime Prevention through Environmental design (CPTED) principals. 1 X 8 Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an analysis of quality-of- life indicators. 1 X 9 Architecture & Urban Design Encourage housing that is high- quality, enduring, and that contributes to neighborhood Buildings shall include an active ground floor use, significant ground 1 X Page 6 (Neighborhood Impact) context and livability through architectural and urban design best practices. floor glass, durable building materials and engaging building entrances as determined by RDA staff. 10 Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. Projects are mixed-use and establish new services, amenities, or underrepresented business types in the neighborhood that the local community identifies as lacking and desired. 1 X 11 Historic Preservation /Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. Acknowledge a neighborhood’s history and maintain its unique character through preservation, rehabilitation, or repurposing of historic or underutilized structures. 1 X 12 Public Art Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. Project contributes at least 1.5% of the RDA contribution towards the installation of art onsite or towards the RDA art fund as outlined in the RDA Art Policy. 1 X *Note: NOFA Ranking Weight: Uses a number (the weight) between 1 and 3 to assess the importance of the funding priority, with 1 being of lower importance and 3 being of the highest importance. **Note: 0.5% Interest Rate Reductions: While 12 interest rate reductions will be available, the maximum interest rate can be reduced a maximum of 2%, thereby reducing the interest rate to a minimum of 1%. Please see Attachment B in the for applicable standard loan terms and conditions. ***Note: Sustainability Interest Rate Reduction: As per the RDA’s Sustainable Development Policy, projects built to an Off-Site Net Zero standard are eligible for a 1% interest rate reduction and projects built to an On-Site Net Zero standard are eligible for a 2% interest rate reduction. Page 7 Attachment C: RDA Finance Committee Funding Recommendation The RDA Finance Committee recommends that HDLP funding be allocated to the first three projects and recommends that the last project be funded with other sources of funding outside of the HDLP: *Final loan terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the 2022 Emergency Gap Financing Housing Development Loan Program Guidelines. For projects that have received previous RDA loan commitments, the interest rate reduction calculations may be based on guidelines/approvals from previous years and loans will be consolidated if approved by the Board. FUNDS AVAILABLE FY 2021-2022 Emergency Gap Funding $3,082,500 Recommended Emergency Gap HDLP Allocations $3,000,000 Funds Remaining – Emergency Gap $ 82,500 PROJECT/ APPLICANT ADDRESS PRELIMINARY TERMS* FUNDING REQUEST FUNDING RECOMMENDATION THROUGH HDLP FUNDING RECOMMENDATION THROUGH OTHER SOURCES The Nest 382 Rio Grande 2.5%, 20-year term, 40-year amortization, cash flow payments $1,000,000 $1,000,000 W3 Partners 1700 South Affordable 230 W 1700 S 3.5%, 30-year term, 30-year amortization, cash flow payments $1,000,000 $1,000,000 Wasatch Residential Group, LLC 144 South 144 S. 500 East 1%, 40-year term, 40- year amortization, hard payments $1,000,000 $1,000,000 Red Gate 255 State Street 265 S. State St 1.63%, 30-year term, 30-year amortization, cash flow payments $750,000 $ - $750,000 Brinshore Development, LLC $3,000,000 $750,000 Page 8 PROJECT NAME: The Nest ADDRESS: 382 S Rio Grande St DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: Yes, and this project was awarded HDLP funds in the 2021 Competitive NOFA. PROJECT SUMMARY: According to developer “W3 Partners has purchased land consisting of three parcels totaling approximately 1.59 acres and located at 358 and 382 South Rio Grande Street and 365 South 500 West in Salt Lake City, Utah. OVERVIEW: DEVELOPER: W3 Partners, LC REQUEST TYPE: Construction Costs PROJECT TYPE: New Construction EXISTING LAND USE: Office and Vacant Land HOUSING UNITS: 220 TOTAL TOTAL MARKET 60 - 40% AMI <40% AMI Studio 140 1-Bed 80 TOTAL 220 RDA FUNDING REQUEST: FUNDING REQUEST % OF TOTAL PROJECT COST Current $1,000,000 1.6% Total RDA Participation $2,082,500 3.3% TIMELINE: Commence Construction September 2022 Complete Construction December 2024 TAX CREDITS: Applying for Tax Credits (Y/N): Y Tax Credits Received (Y/N): Y, 4% SOURCES: FUNDING SOURCES AMOUNT Perm Loan $25,700,000 40.9% Tax Credit Equity 28,924,151 46.0% Deferred Developer Fee 1,000,000 1.6% Olene Walker Loan $1,000,000 3.2% RDA Loans $2,082,500 3.3% Investor Equity $3,075,130 4.9% Questar Rebate $60,000 0.1% Rocky Mountain Power Rebate $60,000 0.1% TOTAL SOURCES: $62,841,781 100% USES: FUNDING USES AMOUNT Construction $48,400,000 77.0% Development $5,008,988 8.0% Reserves 1,385,860 2.2% Dev Fee 4,328,797 6.9% Deferred Dev Fee 1,000,000 1.6% Financing Costs 2,377,761 3.8% Bond Issuance Expenses 340,375 0.5% TOTAL USES: $62,841,781 100% PROPOSED TERMS: Interest Rate: 2.5% Term/Am: 20 yr term/ 40 yr Am Details: Cashflow repayments annually with balloon payment in Y20. The land will be leased to the project llc and will be based on cashflow. Land lease payments are paid prior to debt service. Attachment D: Project Summary Sheets Page 9 Located on Parcel 1 is an existing office building consisting of approximately 27,000 rentable square feet that is 100% leased until 2028. Parcel 2 is adjacent to, and south of, the office building and currently has a surface parking lot that parks the office building. Parcel 3 is vacant land and is adjacent to both parcels on their west boundary. Parcels 2 and 3 can be developed immediately (1.08 acres), and this is the land upon which the Low-Income Housing Tax Credit (LIHTC) multi-family housing will be built. The LIHTC multi-family project (The Nest @ Rio Grande) will consist of six floors, with five levels of residential units totaling 220 units situated over one level of structured parking (50 stalls). Additional parking (22 stalls) will be built on the north portion of Parcel 3 and situated behind the office building. This parking will be used by the office building during business hours Monday through Friday and used by the tenants of the apartment building during the nights and weekends. We are anticipating a 100% LIHTC project at 60% of the Average Median Income (AMI). We have a market study performed by Western States Multifamily that suggests this is a great location for an affordable project, with LIHTC rents being on average 14%-29% less than the surrounding market rents.” DEVELOPER SUMMARY: According to the developer, “W3 Partners, LC, was founded in 2020 to continue the investment, development and management of real estate assets that the three principals have been engaged in for many years. On a combined basis, the three principals have been engaged in this business for over 100 years. Their previous company began as Cottonwood Partners in 1997 and had an established record of very successfully investing over $2 billion in new development and existing properties over its 28-year history. Founders of W3 Partners were owners of Cottonwood and/or its assets and were, respectively, the CEO, CFO and Director of Asset Management, and Broker, Directing of Leasing and Development Officer for Cottonwood. The focus of W3 Partners is to invest in properties that can be significantly enhanced by development or redesign and refurbishment. This philosophy has been successfully executed in many projects, and they include the 1 million square-foot Cottonwood Corporate Center, the Scowcroft Office Building, the Newpark Office Buildings, and the 45-acre Forge development. These are all in Utah and are representative of the company’s expertise and success. The capital necessary for the these, and other projects, has been provided by wealthy individuals, private equity firms, institutional investors, banks and insurance companies.” SITE MAP: Page 10 PROJECT RENDERINGS: Page 11 PROJECT NAME: 1700 South Affordable ADDRESS: 230 W 1700 S DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: Yes PROJECT SUMMARY: According to developer “Wasatch Residential Group, LLC (“WRG”) plans to develop 3.06 acres of land at 204 West 1700 South, in Salt Lake City, Utah as a 237-unit affordable housing project. The project will consist of one five-story building with interior corridors and elevators that will meet all pertinent zoning requirements. Construction will be wood-frame with five floors of residential wrapped around five floors of structured parking. The property will consist of 24 studio apartments, 130 one- bedroom units, 73 two-bedroom units, and 10 three-bedroom units. The units will be equipped with central heat/air OVERVIEW: DEVELOPER: Jeff Nielson – Wasatch Residential Group, LLC REQUEST TYPE: Construction Costs PROJECT TYPE: New Construction EXISTING LAND USE: Office/Warehouse & Vacant Land HOUSING UNITS: 237 TOTAL TOTAL MARKET 60 - 40% AMI <40% AMI Studio 24 1-Bed 130 2-Bed 73 3-Bed 10 TOTAL 237 RDA FUNDING REQUEST: FUNDING REQUEST % OF TOTAL PROJECT COST Current $1,000,000 1.7% TIMELINE: Commence Construction June 2021 Complete Construction June 2023 TAX CREDITS: Applying for Tax Credits (Y/N): Y Tax Credits Received (Y/N): Y, 4% SOURCES: FUNDING SOURCES AMOUNT Equity $23,861,204 41.3% Tax Exempt Loan $31,300,000 54.1% Olene Walker Loan $1,000,000 1.7% RDA Gap Funding $1,000,000 1.7% Deferred Developer Fee $674,739 1.2% TOTAL SOURCES: $57,835,943 100% USES: FUNDING USES AMOUNT Land $4,260,823 7.4% Construction Costs $43,926,951 76.0% FFE $474,000 0.8% Third Party Reports $98,959 0.2% Architect & Engineering $651,095 1.1% Permits & Fees $410,503 0.7% Insurance/Bonding/Taxes $425,400 0.7% Marketing/Leasing/Operating Reserve $924,317 1.6% Legal/Organizational $156,307 0.3% Finance Fees/Cost of Issuance $946,370 1.6% Debt Service $1,205,106 2.1% Developer Fees $4,356,112 7.5% TOTAL USES: $57,835,943 100% PROPOSED TERMS: Interest Rate: 3.5% Term/Am: 30 yr term/30 yr amort Details: Cashflow repayments annually Page 12 conditioning, hardwood cabinets, window coverings, and energy efficient appliances. The property will target tenants who earn 60% or less of the area median income. There is high demand for this type of workforce affordable housing in the Salt Lake City area. On-site community amenities will consist of pool, spa, sun deck with BBQ grills and seating, a large open courtyard, energy efficient windows, pet friendly amenities, access for persons with disabilities, covered parking, exercise gym facility and 24-hour emergency maintenance service. The construction is tentatively scheduled to begin March 2021 and finish January 2023. The acquisition and construction of 1700 South Affordable Apartments is proposed to be financed with Private Activity Bonds, 4% Federal Low-Income Housing Tax Credits, and deferred developer fee. Enterprise Community Capital is slated to provide the equity from the sale of the tax credits and Key Bank is scheduled to provide construction/permanent debt for the project. 1700 South Affordable is ideally located near downtown Salt Lake City. Its central location in the Salt Lake valley, as well as its proximity to many vital services that are important to residents, make the project a tremendous addition to the affordable housing stock in the Salt Lake valley. The proximity to public transportation, along with convenient walkable access to nearby restaurants and retail, makes this project an ideal location for workforce affordable housing.” DEVELOPER SUMMARY: According to the developer, “As one of the premier real estate development companies in Utah, Wasatch Residential Group will utilize its competitive advantages to ensure maximum development cost efficiencies. As an owner / manager of over 24 apartment communities in the state of Utah, Wasatch and its affiliates are able to obtain very competitive local pricing for its construction contracts and materials, which translates to more effective and efficient use of taxpayer dollars.” SITE MAP: Page 13 PROJECT RENDERINGS: Page 14 Page 15 PROJECT NAME: 144 South ADDRESS: 144 S. 500 East DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: Yes, and this project was awarded HDLP funds in the 2021 Competitive NOFA. PROJECT SUMMARY: From Developer – The developer, 144 South Apartments, LLC, proposes to build the 144 South project, a 6-story (above- grade), 110-unit apartment building on a 0.62-acre parcel located at 144 S 500 East in Salt Lake City. The project will include a 420 square-foot cafe (or other retail) which is integrated into the entry lobby, an approximately 1,600 sf co-working business center, plus an abundance of amenity spaces including a club house, exercise facility, pet wash, secure bike parking and large outdoor deck. There will be 53 studio units and 57 one-bedroom units. The developer is seeking Low-Income Housing OVERVIEW: DEVELOPER: Peter Corroon – 144 South Apartments LLC REQUEST TYPE: Emergency Gap PROJECT TYPE: New Construction EXISTING LAND USE: Vacant Office Building/House HOUSING UNITS: 110 TOTAL TOTAL MARKET 60 - 40% AMI <40% AMI Studio 53 1-Bed 57 TOTAL 110 RDA FUNDING REQUEST: FUNDING REQUEST % OF TOTAL PROJECT COST Current $1,000,000 2.8% Total RDA Participation $1,775,000 5.1% TIMELINE: Commence Construction September 2022 Complete Construction January 2025 TAX CREDITS: Applying for Tax Credits (Y/N): Y Tax Credits Received (Y/N): Y, 4% SOURCES: FUNDING SOURCES AMOUNT Senior Lender Debt $10,661,959 30.3% Deferred Developer’s Fee $2,373,206 6.7% Salt Lake County $1,250,000 3.6% Olene Walker $2,817,093 8.0% RDA Loans $1,775,000 2.3% LIHTC Equity $16,270,107 46.3% Energy Rebates $30,000 0.1% TOTAL SOURCES: $35,177,365 100% USES: FUNDING USES AMOUNT Site Work $2,020,947 5.7% Construction $22,860,825 65.0% Contingency $1,219,914 3.5% Architectural & Engineering Fees $428,500 1.2% Profit and Overhead $4,394,460 12.5% Interim Financing Expenses $1,478,964 4.2% Permanent Financing Expenses $1,605,263 4.6% Soft Costs $497,228 1.4% Project Reserves $671,264 1.9% Site Work $2,020,947 5.7% TOTAL USES: $35,177,365 100% PROPOSED TERMS: Interest Rate: 1% Term/Amortization: 40/40 Loan Details Hard Repayments, fully amortizing Repayment Priority: Subordinate to Senior Lender Page 16 Tax Credits so that building contains 110 affordable housing units (100%) with rents for tenants at or below 60% Area Median Income. The building will consist of five floors of wood frame construction over a 3-level concrete parking structure with 113 parking spaces available for tenants. The Department of Housing and Urban Development is requiring at least one-to-one parking for each apartment in order to obtain its funding. DEVELOPER SUMMARY: From Developer – 144 South Apartments, LLC consists of two partners, Red Gate Properties and Valmont Investments. Red Gate Properties was founded in 1995 by brothers Peter and Christopher Corroon. Red Gate Properties has developed, rehabilitated and/or managed several multi-family and commercial real estate properties in Utah, including seven multi-family properties as well as a self-storage facility, two office buildings and two warehouses. Peter Corroon has completed three affordable tax-credit projects. More recent affordable housing projects include the Cornell Street Apartments with 146 units and the Casa Milagros by Centro Civico Housing with 61 apartments. Valmont Investments, LLC invests in single-family and multi-family investment properties in the Salt Lake valley. Once completed, the property will be professionally managed on a day-to-day basis by the EMG Management which has many years of experience with multi-family affordable housing projects. SITE MAP: Page 17 PROJECT RENDERINGS: Page 18 Page 19 PROJECT NAME: 255 State Street ADDRESS: 265 S State Street This overall development includes two LIHTC buildings – a 4% and a 9% building. The overall development has received a total of $14,554,879 in RDA funds up to date (not including the current request). The application submitted was only for the 9% building, but because all previous RDA funding requests for the project reviewed the project as a whole, we are staying consistent by reviewing the project as a whole. It is worth noting that based on the details submitted, the construction cost increases are mostly related to the rehabilitation of the Cramer House, which is the commercial portion associated with the 9% building. SOURCES: FUNDING SOURCES AMOUNT Federal LIHTC Equity $34,664,058 36.4% Perm Loan $31,980,000 33.6% Perm Loan - Second Traunch $1,202,499 1.3% State LIHTC Equity $2,654,000 2.8% SLC Seller's Note $5,000,000 5.3% RDA Loan $9,554,879 10.0% RDA Emergency GAP Loan $750,000 0.8% State - Olene Walker Funds - 1 (HOME) $1,770,100 1.9% State - Olene Walker Funds - 2 (HTF) $2,000,000 2.1% SL County - HOME $300,000 0.3% SL City - HOME / HTF $755,000 0.8% Ales Foundation $750,000 0.8% GP Equity $200 0.0% Rocky Mountain Power Rebate $127,300 0.1% Deferred Developer Fee $3,000,000 3.2% TOTAL SOURCES: $95,142,936 100.0% USES: FUNDING USES AMOUNT Land Cost/Acquisition $5,000,000 5.3% Construction $66,196,319 69.6% Architect and Engineering $3,581,415 3.8% Financing $5,678,393 6.0% Legal Fees $505,364 0.5% Reserves $2,056,338 2.2% Other Project Costs $4,839,977 5.1% Developer Fee $7,285,130 7.7% TOTAL USES: $95,142,936 100.0% PROPOSED TERMS: Interest Rate: 1.63% Term/Am: 30 yr term/30 yr amort Details: Cashflow repayments OVERVIEW: DEVELOPER: Whitney Weller – Brinshore Development, LLC REQUEST TYPE: Construction Costs PROJECT TYPE: New Construction EXISTING LAND USE: Vacant Land HOUSING UNITS: 190 TOTAL TOTAL MARKET 70-80% AMI 60 - 40% AMI <40% AMI Studio 5 7 17 3 1-Bed 10 28 42 13 2-Bed 5 15 20 4 3-Bed 1 2 9 2 4-Bed 1 1 3 2 TOTAL 22 53 91 24 RDA FUNDING REQUEST FUNDING REQUEST % of Total Project Cost Current $750,000 .8% Total RDA Participation $15,034,879 16.1% TIMELINE: Commence Construction April 2021 Complete Construction December 2022 TAX CREDITS: Applying for Tax Credits (Y/N): Y Tax Credits Received (Y/N): Y, 9% & 4% Page 20 DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: No, if approved, the overall RDA housing loans for 255 S State Street project as a % of TPC would be 16%. The Housing Development Loan Program limits participation to 10%. The RDA is reviewing alternative funding sources. PROJECT SUMMARY: According to developer “255 S. State Street is a prime location within downtown Salt Lake City with the opportunity to influence significantly the economic development of the multiple planning regions it is identified with including the Central Business District, the Broadway District overlap and the Cultural Core. Through a Request for Qualifications, the Redevelopment Agency of Salt Lake City chose the Brinshore Development Team to develop this exciting and critical site in downtown Salt Lake City. With its challenging history, it is of upmost importance to the Redevelopment Agency, City Council and Mayor’s office that the redevelopment effort be thoughtful, collaborative and timely. The Brinshore Development team has proposed a 190 unit mixed-income mixed-use development plan to be funded through a combined 9% Low Income Housing Tax Credit and 4% Low Income Housing Tax Credit with Tax Exempt Bonds financing structure. The 9% component consists of 72 residential units, 27 parking spaces, the historic Cramer House and a variety of amenities for residents. The 4% component will consist of 118 residential units with approximately 20,000 SF of commercial space and 44 parking spaces. The overall project consists of two towers connected by a subterranean parking structure and activated paseo at street level. The smaller 8 story tower is the subject of this 9% LIHTC application. Of the 72 units, 50 are affordable to families between 20% and 80% of AMI with the remaining 23 units to be market rate as described below.” DEVELOPER SUMMARY: According to the developer, “Brinshore Development specializes in the development of affordable and market rate housing by blending public and private resources. Brinshore is able to develop financially successful rental and home ownership options affordable to community residents. All of Brinshore’s developments are conceived with input and cooperation from local community officials, community organizations, and community residents. Best efforts are put forth to provide employment opportunities for community residents. This combination of public, private and community involvement has proven to be an effective formula for successful residential developments. Brinshore prides itself on its success in financing mixed income affordable rental housing using layered financing, including low-income housing tax credits, tax-exempt bonds and a variety of funds available for these efforts. Since its first project in 1994, Brinshore has been one of the most consistently successful developers in obtaining tax credit reservations, receiving over 90 tax credit awards around the country. Additionally, Brinshore has now obtained four tax credit reservations and two tax-exempt bond allocations from the Utah Housing Corporation. To enhance affordability for its residents, Brinshore has used more than 25 different subsidy programs in its developments including CDBG and HOME funds and is always prepared to learn the rules for new sources of finance. Brinshore leverages these scarce dollars with private funds to create much needed affordable housing in mixed income settings and to catalyze neighborhood investment..” Page 21 SITE MAP: Page 22 PROJECT RENDERINGS: Page 23 Page 24 Page 25 Page 26 Page 27 Attachment E: Map of Project Locations Page 28 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Affordable Housing – Emergency Gap Housing Development Loan Program (HDLP) Funding Allocations RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, the Housing Development Loan Program (“HDLP”) was created to enable the RDA to incentivize the development and preservation of affordable housing. WHEREAS, on February 8th, 2022, pursuant to Resolution No. R-1-2022, the RDA Board of Directors (“Board”) repealed and replaced that prior policy adopted per Resolution R-4-2021 with the updated Housing Funds Allocation Policy (“Funds Policy”), which establishes policies with respect to dedicating and directing resources for the HDLP based on funding source (“Housing Funds”). WHEREAS, on March 8th, 2022, pursuant to Resolution No. R-2-2022, the Board adopted the amended and restated Housing Development Loan Program Policy (the “HDLP Policy”) to provide a centralized application, underwriting, and approval process for accessing the Housing Funds, including granting the authority for review and approval of applications by the RDA Finance Committee (“Finance Committee”). WHEREAS, in June 2021, the Board adopted the 2021-2022 budget, which set aside approximately $2,000,000 for Emergency Gap Financing through the HDLP. Subsequently, a prior allocation of $1,082,500 that was awarded to an applicant became available following a withdrawn loan request, resulting in available Emergency Gap Housing Funds totaling $3,082,500. WHEREAS, the allocation of funds is contingent upon an application and review process administered by the RDA to facilitate funding of qualified projects that meet the 2022 Emergency Gap Funds Guidelines + Application Handbook Threshold Requirements and the goals established by the HDLP. WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan application and review process pursuant to the HDLP Policy and the RDA’s Housing Funding Priorities for Fiscal Year 2021-2022 and Fiscal Year 2022-2023 (“Funding Priorities”) that Attachment F: HDLP Funding Allocation Resolution Page 29 resulted in four requests for funding totaling $3,750,000. WHEREAS, on July 13, 2022, the Finance Committee reviewed the HDLP applications and recommended funding allocations and preliminary terms as described in on Exhibit A. WHEREAS, based on the Finance Committee’s recommendations, RDA staff recommends that the Board approve the funding allocations and preliminary terms as described in Exhibit A. WHEREAS, following approval of funding allocations and preliminary terms as set forth in Exhibit B, the RDA shall provide a conditional commitment period during which approved applicants shall have the opportunity to obtain needed financial, legal, and regulatory approvals, as well as satisfy other conditions determined by the RDA, to finalize the loan terms. WHEREAS, pursuant to the HDLP Policy, applicants that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocations and preliminary terms as further described in Exhibit B, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, the loan agreements, and other relevant documents consistent with the funding allocations and terms contained in Exhibit B and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of August 2022. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Sara Montoya, Senior City Attorney Date: The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. July 21, 2022 Page 30 ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder Page 31 EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED FUNDING ALLOCATIONS The RDA Finance Committee recommends that HDLP funding be allocated to the first three projects and recommends that the last project be funded with other sources of funding outside of the HDLP. *Final loan terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the 2022 Emergency Gap Financing Housing Development Loan Program Guidelines. For projects that have received previous RDA loan commitments, the interest rate reduction calculations may be based on guidelines/approvals from previous years and loans will be consolidated if approved by the Board. PROJECT/ APPLICANT ADDRESS PRELIMINARY TERMS* FUNDING REQUEST FUNDING RECOMMENDATION THROUGH HDLP FUNDING RECOMMENDATION THROUGH OTHER SOURCES The Nest 382 Rio Grande 2.5%, 20-year term, 40-year amortization, cash flow repayments. $1,000,000 $1,000,000 W3 Partners 1700 South Affordable 230 W 1700 S 3.5%, 30-year term, 30-year amortization, cash flow repayments. $1,000,000 $1,000,000 Wasatch Residential Group, LLC 144 South 144 S. 500 East 1%, 40-year term, 40- year amortization, hard repayments. $1,000,000 $1,000,000 Red Gate 255 State Street 265 S. State St 1.63%, 30-year term, 30-year amortization, cashflow repayments. $750,000 $ - $750,000 Brinshore Development, LLC $3,000,000 $750,000 Page 32 EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS (To add after Board Meeting) Page 33 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 COUNCIL.SLCGOV.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:RDA Board Members FROM: Ben Luedtke Budget and Policy Analyst DATE:August 9, 2022 RE: Redevelopment Agency (RDA) Budget Amendment Number One FY2023 ________________________________________________________________________________ ISSUE AT-A-GLANCE RDA Budget Amendment Number One includes requested changes to budgets in the West Capitol Hill project area, Depot District project area and the Revolving Loan Fund. Total expenditures are $4.9 million for two items in this amendment. The additional and background information section near the end of this staff report includes project area expiration dates and allowable uses of RDA funds per state law. $1 Million Additional Funding to Complete Marmalade Plaza in West Capitol Hill Project Area The plaza would be located just north of the Marmalade branch library and is surrounded on the other three sides by residential developments. It would serve as a connection point for pedestrian routes through the block in multiple directions. The project is planned to go out to bid later this year. The plaza is currently going through the building permit process. The budget amendment request would add to the existing budget to cover expected increases due to inflation and supply chain issues. There are two sources for the $1 million: -$720,000 from the Revolving Loan Fund which would leave an available to lend balance of nearly $3 million and -$280,000 from the Arctic Court infill housing budget which would need new funding identified for the new single-family home to be built and sold. Note the designs of the home have been finalized and approved by the Historic Landmark Commission. If the additional funding is approved, then the total project budget is estimated at $3,945,600 which is a 34% increase. This project uses RDA funds and City funds. The existing budget includes $1,145,394 of parks impact fees approved by the Council. Policy Question: ➢Maximize Park Impact Fees – The Board could ask the Administration to determine if the project is eligible for additional park impact fees and what is the maximum allowable amount. Using more parks impact fees could avoid defunding the Arctic Court home and/or leave more funding available to lend in the Revolving Loan Fund. Project Timeline: Set Date & 1st Briefing: August 9, 2022 Public Hearing & 2nd Briefing: Sept. 13, 2022 Potential Action: Sept. 13, 2022 Page | 2 $3.9 Million to Purchase Station Center Property in Depot District Project Area Over the years, the RDA has purchased multiple properties in the Station Center area which is defined as two blocks of west downtown located between 500 West to 600 West and 200 South to 400 South. Concepts for the area have included an innovation district, transit-oriented development, new city streets and a festival street. The RDA has a contractual option to purchase three parcels owned by the State of Utah at the corner of 300 South and 500 West (Site #4). Two of the parcels are needed for public right of way to create a new street: Woodbine South. The Administration is proposing the $3.9 million come from the existing $9.5 million budget that has been set aside over the years for public infrastructure projects in the area. This would increase the funding gap for the public infrastructure projects, which is estimated to be $15 million, although that could change. The Administration’s plans are to use proceeds from land sales to fund some of the infrastructure improvements. The infrastructure improvements include creation of new street segments to create smaller block sizes, utility upgrades to allow greater building densities, and Festival Street (300 South) amenities. Station Center Site Plan Map (Three Parcels in Development Site #4 are Proposed for Purchase) Page | 3 Status of RDA’s Station Center Property Disposition The Administration provided the following status update on disposition of the RDA’s Station Center property: “Following a change in leadership and staffing at the University [of Utah], the Agency has continued to coordinate with the new staff as part of their task to become familiar with the joint effort and consultant team’s development of a vision/implementation plan for a community of innovation at Station Center. Despite this pause in the process and discussions, the Station Center project remains a priority for the Agency as we continue to move forward with other aspects of the overall development. It is our intention to finalize the vision and work with potential partners to implement a plan to move the project forward.” Ongoing Maintenance and Programming Costs Maintenance and programming of enhanced assets in Station Center such as the Festival Street (300 South) may become the responsibility of the University of Utah, potentially through an SAA which requires majority property owner support. In October 2020, an SAA analysis estimated the annual cost for maintenance at $425,000. Policy Questions: ➢Timeline for Final Designs – The Board may wish to ask the Administration when final designs for Station Center may be available. Prior designs reached 70% completion but were significantly redesigned starting in 2019. The designs determine the total cost of public infrastructure projects. ➢Transportation Impact Fees to Fill Funding Gap – The Board may wish to ask the Administration how much of the public infrastructure improvements such as the three new streets are eligible for transportation impact fees which could help fill the funding gap. According to the July impact fee report, there is $8 million of available to spend transportation impact fees. The Council is currently considering spending $1.5 million of that in FY2023 CIP. ➢Existing Building Reuse or Demolition – The Board may wish to ask the Administration what the current use of the property is and whether existing buildings would be reused or demolished. ADDITIONAL & BACKGROUND INFORMATION 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 *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 Page | 4 †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. ATTACHMENTS 1. RDA Guiding Framework ACRONYMS CBD – Central Business District CIP – Capital Improvement Program FY – Fiscal Year PIF – Program Income Fund RDA – Redevelopment Agency SAA – Special Assessment Area TBD – To Be Determined 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 Public Services (Park Impact Fees)$1,145,394 FY22 BA#2 -PIF Arctic Court Infill House Allocation $338,141 Property Sale Proceeds $1,362,065 FY22 BA#2 -WCH Interest Income $100,000 Total Current Allocation $2,945,600 + Revolving Loan Fund Allocation $720,000* New Project Total Budget $3,945,600 + WCH Arctic Court Infill House Allocation $280,000 Revolving Loan Fund Available to Lend $3,689,968 -Marmalade Plaza Allocation $720,000 Remaining Available to Lend $2,969,968 WCH Arctic Court Infill House $280,000 -Marmalade Plaza Allocation $280,000 Remaining Budget $0** Revolving Loan FundMarmalade Plaza Project West Capitol Hill Arctic Court Infill House *If the entire $1M is not necessary, the remainder will be returned to the RLF.**The Agency will request the use of affordable housing funds to finish the Project. Budget Impact: Marmalade Plaza in the West Capitol Hill Project Area Property Acquisition $0 + CIP Depot District Project Allocation $3,900,000 New Project Total Budget $3,900,000 CIP Depot District Project Fund $9,570,186 -Station Center Property Acquisition $3,900,000* Remaining Budget $5,670,186 Station Center Infrastructure FundsStation Center Property Acquisition *The Agency intends to replace the reallocated infrastructure funds with proceeds from the RDA’s future disposition of Station Center property. Budget Impact: Station Center in the Depot District Project Area © 2020 Microsoft Corporation © 2020 DigitalGlobe ©CNES (2020) Distribution Airbus DS RDA OWNED PARCELS U OF U UNDER CONTRACT TO PURCHASE RDA HAS OPTION TO PURCHASE PRIVATELY - OWNED (NON-RDA PROPERTIES TO BE REDEVELOPED) DEVELOPMENT SITE# 300 SOUTH Pierpont Avenue - West Pierpont Avenue - East W o o d b i n e - N o r t h W o o d b i n e - S o u t h 400 SOUTH 200 SOUTH 6 0 0 W E S T 5 0 0 W E S T 1 6 5 2 4 3 Market St. - West Market St. - East FUTURE TRAX CORRIDOR BRADLEY D.LASHNo. 8681468 PROFESS I O N AL ENGI N E E R S TATE O F U TAH 07/15/22 N/A 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: July 22, 2022 PREPARED BY: Erin Cunningham, Financial Analyst RE: RDA Budget Amendment #1, FY 2022-2023 REQUESTED ACTION: Public Hearing and Board Discussion BUDGET IMPACTS: The proposed First Amendment reallocates $1 million from prior year West Capitol Hill holding accounts to finalize the Marmalade Plaza project and $3.9 million from Station Center infrastructure budget appropriations to acquire State-owned property in Station Center. The West Capitol Hill Fund for the Arctic Court Infill Home project of $280,000 would be reduced to zero. It is anticipated the Agency will, in the future, request the use of affordable housing funds to finish the infill housing project. The Revolving Loan Fund Available to Lend Balance would be reduced from $3,689,968, as of June 30, 2022, to $2,969,968. The CIP Depot District Project Fund would be temporarily reduced from $9,570,186 to $5,670,186 until the reallocated funds can be replaced with proceeds from the RDA’s disposition of Station Center property. EXECUTIVE SUMMARY: The purpose of the briefing is to provide a preliminary budget proposal for the First Amendment to the Fiscal Year 2023 RDA Budget (“Amendment”) to reallocate funds from prior year budget holding accounts for two projects: 1. Marmalade Plaza in the West Capitol Hill Project Area: A total of $1 million is proposed to be reallocated from the Arctic Court Infill House ($280,000) and the Revolving Loan Fund reserves ($720,000) for the Marmalade Plaza project. 2. Station Center in the Depot District Project Area: $3.9 million is proposed to be reallocated from Depot District CIP funds (which were allocated for Station Center infrastructure improvements) for the acquisition of State-owned Station Center property, which the RDA has an option to purchase. ANALYSIS & ISSUES: Marmalade Plaza Project, West Capitol Hill The Marmalade Plaza is the final piece of the RDA’s Marmalade Block to be constructed. The Marmalade Branch library was completed in 2016, the Grove at Marmalade Townhomes were completed in 2018, and the Harvest Apartments were completed this year. The RDA’s 2012 development strategy for the block included a City Library branch to anchor and create a brand for a new commercial district on the block, redevelopment of the remainder of the block with a mix of uses, and a public open space near the center of the site. The open space was identified as a development amenity that would provide a center for the neighborhood and improve pedestrian connections through the block, and the RDA’s property dispositions required development on the block to be oriented toward this future open space. The RDA, with the support of the Engineering Division, is preparing to advertise the Marmalade Plaza project for qualified construction contractors to bid on. In general, current market forces are causing construction bids to come in much higher than what was originally anticipated or budgeted for. This challenge is amplified by the fact that construction bids are typically valid for only 45 days, after which time contractors reserve the right to increase their bid amount. In anticipation of similar challenges, Staff is preliminarily requesting the allocation of an additional $1 million to the Marmalade Plaza project to supplement the current allocation of $2,945,600. The source of the additional funds includes $280,000 that was previously set aside in the West Capitol Hill Fund for the Artic Court Infill House, and $720,000 from the Revolving Loan Fund reserves. Bids will be received in early September and Staff will provide an update to the Board at that month’s meeting with a precise construction bid amount. If the entire $1 million allocation is not needed, the excess funds will be returned to the Revolving Loan Fund. For the Arctic Court Infill Home, Staff will return to the Board in the future to request the use of affordable housing funds to finalize the project. The current funding allocations for the Marmalade Park project total roughly $2.9 million, as detailed in the table below. Current Allocations Amount Public Services (Park Impact Fees) $1,145,394 Property Sale Proceeds $1,362,065 FY22 BA#2 - PIF Arctic Court Infill House Reallocation $338,141 FY22 BA#2 - WCH Interest Income $100,000 Total $2,945,600 It should be noted that the Second Budget Amendment for Fiscal Year 2021-2022 reallocated $150,000 from interest income to West Capitol Hill Projects. However, Staff anticipates that actual interest income will be closer to $100,000, which will impact the amount of cash available. In addition to the interest reallocation, the Board reallocated $338,141 from the Arctic Court Infill Home project that had been set aside in the Program Income Fund. In the Fiscal Year 2022-2023 Budget, an additional $100,000 in interest income was allocated to West Capitol Hill Projects. However, as the cash is spent on the project, less interest will be accrued. Therefore, that amount is not included in the table above since it is possible the interest will not be earned. Should the interest be realized, it will be repaid to the Revolving Loan Fund. Station Center Project, Depot District The State of Utah owns three parcels at the corner of 500 West and 300 South, and the RDA and State executed an agreement in 2003 that provides the RDA the exclusive option to purchase these parcels. The acquisition of this property will allow the RDA to implement the Station Center site plan by combining its property with the State’s property to provide the Woodbine Court right of way and create a developable parcel on this corner. The Board previously directed staff to proceed with negotiations for the acquisition under the terms of the option agreement with the State. The option agreement states that the purchase price is the appraised value of the property, which is $3.9 million. The RDA Board previously appropriated approximately $10 million for Station Center infrastructure improvements. This funding is anticipated to be used to create three new mid-block streets, reconstruct 300 South into a pedestrian-oriented “festival street,” install new utilities with increased capacity, and construct new streetscapes with landscaping, lighting, and furnishings. While these features are critical for creating the transit-oriented, urban innovation district that is envisioned for Station Center, the RDA is still working to plan the district and construction funds are not immediately needed. Therefore, this budget amendment proposes to reallocate $3.9 million of infrastructure funding for the State property acquisition, with the intent of replacing the reallocated infrastructure funds with proceeds from the RDA’s future disposition of Station Center property. PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2021-2022 Budget. 2. Approval of the Fiscal Year 2021-2022 Budget Amendment #2. 3. Approval of the Fiscal Year 2022-2023 Budget. ATTACHMENTS: 1. Preliminary FY23 BA#1 Budget Impact Slides. Public Services (Park Impact Fees)$1,145,394 FY22 BA#2 -PIF Arctic Court Infill House Allocation $338,141 Property Sale Proceeds $1,362,065 FY22 BA#2 -WCH Interest Income $100,000 Total Current Allocation $2,945,600 + Revolving Loan Fund Allocation $720,000* New Project Total Budget $3,945,600 + WCH Arctic Court Infill House Allocation $280,000 Revolving Loan Fund Available to Lend $3,689,968 -Marmalade Plaza Allocation $720,000 Remaining Available to Lend $2,969,968 WCH Arctic Court Infill House $280,000 -Marmalade Plaza Allocation $280,000 Remaining Budget $0** Revolving Loan FundMarmaladePlaza Project West Capitol Hill Arctic Court Infill House *If the entire $1M is not necessary, the $720K from the RLF will be returned.**The Agency will request the use of affordable housing funds to finish the Project. Budget Impact: Marmalade Plaza in the West Capitol Hill Project Area Property Acquisition $0 + CIP Depot District Project Allocation $3,900,000 New Project Total Budget $3,900,000 CIP Depot District Project Fund $9,570,186 -Station Center Property Acquisition $3,900,000* Remaining Available to Lend $5,670,186 Station Center Infrastructure FundsStation Center Property Acquisition *The Agency intends to replace the reallocated infrastructure funds with proceeds from the RDA’s future disposition of Station Center property. Budget Impact: Station Center in the Depot District Project Area Fiscal Year:FY2022-2023 Department:Finance Division:Policy and Budget Prepared by:Mike Burns x6461 Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Initiative Type:Other Was this request submitted with the annual budget?No Can this request be covered with existing resources?Yes Request is for rescope of current budget available. Is this an emergency?No Please include narrative about why this request is emergent in nature … Why will this issue not be able to wait until next fiscal year? Projects are underway for FY23. Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Description 1. Rescope of funding previously allocated to West Capitol Hill Arctic Court Infill Home project and the Revolving Loan Fund to West Capitol Hill Marmalade Plaza. 2. Rescope of funding previously allocated to Depot District Station Center Infrastructure to Station Center Land Acquisition. Continued… Continued… Continued… Revenue Impact by Fund Current YTD Expenses Current Budget Proposed Budget Change Proposed Budget w/ Amendment General Fund Select Department from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Internal Service Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enterprise Fund Select Fund from Drop Down List - - Other Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - TOTAL CHANGE IN REVENUE - Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Accounting & Fund Detail Expense Impact by Fund Current YTD Expenses Current Budget Proposed Budget Change Proposed Budget w/ Amendment General Fund Select Department from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Net Change in GF Fund Balance - Internal Service Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enterprise Fund 93 RDA - CIP 9350250 2700 1,136,952 280,000 1,416,952 9350350 279901 280,000 (280,000)- 9385850 2950 12,716,284 (720,000)11,996,284 9385400 2700 -720,000 720,000 9340001 2700 9,238,007 (3,900,000)5,338,007 9340650 2700 -3,900,000 3,900,000 Other Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - TOTAL CHANGE IN EXPENSE - Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Accounting & Fund Detail Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Grant Information Funding Agency: Grant Program: Grant # : CFDA # : Grant Amount Requested: Is a match required? Matching type: Matching percent: Matching Funds Required: Match is in the current budget? Colloborating Agencies: Grant Submittal Date: Do options exist for continued funding? Does the grant fund a position? If yes, will the position be eliminated at the end of the grant: Will the grant be completed in the grant funding time frame? What are anticipated expenses for the City beyond the grant? Please provide a brief description of the grant: Description… Continued… Initiative Name: RDA BA#1 Initiative Number:Entered by Finance FTE Information Does the amendment fund a position? What are total annual costs for the position? (Fully Loaded) Does the current request reflect the fully loaded cost? If not, are there additional funding options for future years? What is the additional amount needed in future years? Please provide a brief description of the position: Description… Description… Description… Continued… 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 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 6/30/2022 Rachel Otto, Chief of Staff Date Sent to Council: 6/30/2022 TO: Salt Lake City Council DATE: 6/30/2022 Dan Dugan, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Appointment Recommendation: Redevelopment Advisory Committee STAFF CONTACT: DOCUMENT TYPE: April Patterson April.Patterson@slcgov.com Board Appointment: Redevelopment Advisory Committee RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and appoint Baxter Reecer 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 June 30, 2022 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Dugan, Listed below is my recommendation for membership appointment to Redevelopment Advisory Committee. Baxter Reecer to be appointed for a four year term, starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File 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 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 6/30/2022 Rachel Otto, Chief of Staff Date Sent to Council: 6/30/2022 TO: Salt Lake City Council DATE: 6/30/2022 Dan Dugan, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Appointment Recommendation: Redevelopment Advisory Committee STAFF CONTACT: April Patterson April.Patterson@slcgov.com DOCUMENT TYPE: Board Appointment: Redevelopment Advisory Committee RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and appoint Amy Rowland 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 June 30, 2022 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Dugan, Listed below is my recommendation for membership appointment to Redevelopment Advisory Committee. Amy Rowland to be appointed for a four year term, starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File 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 REDEVELOPMENT AGENCY STAFF MEMO DATE: July 22, 2022 PREPARED BY: Erin Cunningham RE: Status Report on RDA Commercial Loan Portfolio REQUESTED ACTION: Written Briefing RECOMMENDATION: N/A BUDGET IMPACTS: None EXECUTIVE SUMMARY: Semiannually, the RDA provides an update to the Board on the status of the RDA’s commercial loan portfolio. This report identifies the following: • New loans approved between July 1, 2021 and June 30, 2022 • Remaining amount in the existing portfolio • Outstanding principal for each loan fund • Any delinquencies ANALYSIS & ISSUES: Although the Commercial Loan Program is currently being revamped, one new loan for the Bicycle Collective was approved during this period. New Loans Approved July 1, 2021 - June 30, 2022 Fund Borrower Resolution Date Approved Amount Revolving Loan Fund Bicycle Collective 6 of 2022 5/10/2022 1,750,000 Total New Loans 1,750,000 Funds Available to Lend Funds Available to Lend June 30, 2022 Revolving Loan Fund 3,689,968 Outstanding Loan Principal Balances As of June30, 2022 Fund Type Number of Loans Principal Balance Revolving Loan Fund 13 14,291,384.38 Seller Financed Loans 2 5,000,000.00 Total 15 19,291,384.38 Note: In previous discussions the Board has also asked for an update on the Housing Trust Fund portfolio that is in the process of being transferred to the Agency. Staff will provide an update once the process is complete, and information is finalized. PREVIOUS BOARD ACTION: N/A ATTACHMENTS: None 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: July 22, 2022 PREPARED BY: Erin Cunningham, Financial Analyst RE: RDA Budget Amendment #1, FY 2022-2023 REQUESTED ACTION: Public Hearing and Board Discussion BUDGET IMPACTS: The proposed First Amendment reallocates $1 million from prior year West Capitol Hill holding accounts to finalize the Marmalade Plaza project and $3.9 million from Station Center infrastructure budget appropriations to acquire State-owned property in Station Center. The West Capitol Hill Fund for the Arctic Court Infill Home project of $280,000 would be reduced to zero. It is anticipated the Agency will, in the future, request the use of affordable housing funds to finish the infill housing project. The Revolving Loan Fund Available to Lend Balance would be reduced from $3,689,968, as of June 30, 2022, to $2,969,968. The CIP Depot District Project Fund would be temporarily reduced from $9,570,186 to $5,670,186 until the reallocated funds can be replaced with proceeds from the RDA’s disposition of Station Center property. EXECUTIVE SUMMARY: The purpose of the briefing is to provide a preliminary budget proposal for the First Amendment to the Fiscal Year 2023 RDA Budget (“Amendment”) to reallocate funds from prior year budget holding accounts for two projects: 1. Marmalade Plaza in the West Capitol Hill Project Area: A total of $1 million is proposed to be reallocated from the Arctic Court Infill House ($280,000) and the Revolving Loan Fund reserves ($720,000) for the Marmalade Plaza project. 2. Station Center in the Depot District Project Area: $3.9 million is proposed to be reallocated from Depot District CIP funds (which were allocated for Station Center infrastructure improvements) for the acquisition of State-owned Station Center property, which the RDA has an option to purchase. ANALYSIS & ISSUES: Marmalade Plaza Project, West Capitol Hill The Marmalade Plaza is the final piece of the RDA’s Marmalade Block to be constructed. The Marmalade Branch library was completed in 2016, the Grove at Marmalade Townhomes were completed in 2018, and the Harvest Apartments were completed this year. The RDA’s 2012 development strategy for the block included a City Library branch to anchor and create a brand for a new commercial district on the block, redevelopment of the remainder of the block with a mix of uses, and a public open space near the center of the site. The open space was identified as a development amenity that would provide a center for the neighborhood and improve pedestrian connections through the block, and the RDA’s property dispositions required development on the block to be oriented toward this future open space. The RDA, with the support of the Engineering Division, is preparing to advertise the Marmalade Plaza project for qualified construction contractors to bid on. In general, current market forces are causing construction bids to come in much higher than what was originally anticipated or budgeted for. This challenge is amplified by the fact that construction bids are typically valid for only 45 days, after which time contractors reserve the right to increase their bid amount. In anticipation of similar challenges, Staff is preliminarily requesting the allocation of an additional $1 million to the Marmalade Plaza project to supplement the current allocation of $2,945,600. The source of the additional funds includes $280,000 that was previously set aside in the West Capitol Hill Fund for the Artic Court Infill House, and $720,000 from the Revolving Loan Fund reserves. Bids will be received in early September and Staff will provide an update to the Board at that month’s meeting with a precise construction bid amount. If the entire $1 million allocation is not needed, the excess funds will be returned to the Revolving Loan Fund. For the Arctic Court Infill Home, Staff will return to the Board in the future to request the use of affordable housing funds to finalize the project. The current funding allocations for the Marmalade Park project total roughly $2.9 million, as detailed in the table below. Current Allocations Amount Public Services (Park Impact Fees) $1,145,394 Property Sale Proceeds $1,362,065 FY22 BA#2 - PIF Arctic Court Infill House Reallocation $338,141 FY22 BA#2 - WCH Interest Income $100,000 Total $2,945,600 It should be noted that the Second Budget Amendment for Fiscal Year 2021-2022 reallocated $150,000 from interest income to West Capitol Hill Projects. However, Staff anticipates that actual interest income will be closer to $100,000, which will impact the amount of cash available. In addition to the interest reallocation, the Board reallocated $338,141 from the Arctic Court Infill Home project that had been set aside in the Program Income Fund. In the Fiscal Year 2022-2023 Budget, an additional $100,000 in interest income was allocated to West Capitol Hill Projects. However, as the cash is spent on the project, less interest will be accrued. Therefore, that amount is not included in the table above since it is possible the interest will not be earned. Should the interest be realized, it will be repaid to the Revolving Loan Fund. Station Center Project, Depot District The State of Utah owns three parcels at the corner of 500 West and 300 South, and the RDA and State executed an agreement in 2003 that provides the RDA the exclusive option to purchase these parcels. The acquisition of this property will allow the RDA to implement the Station Center site plan by combining its property with the State’s property to provide the Woodbine Court right of way and create a developable parcel on this corner. The Board previously directed staff to proceed with negotiations for the acquisition under the terms of the option agreement with the State. The option agreement states that the purchase price is the appraised value of the property, which is $3.9 million. The RDA Board previously appropriated approximately $10 million for Station Center infrastructure improvements. This funding is anticipated to be used to create three new mid-block streets, reconstruct 300 South into a pedestrian-oriented “festival street,” install new utilities with increased capacity, and construct new streetscapes with landscaping, lighting, and furnishings. While these features are critical for creating the transit-oriented, urban innovation district that is envisioned for Station Center, the RDA is still working to plan the district and construction funds are not immediately needed. Therefore, this budget amendment proposes to reallocate $3.9 million of infrastructure funding for the State property acquisition, with the intent of replacing the reallocated infrastructure funds with proceeds from the RDA’s future disposition of Station Center property. PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2021-2022 Budget. 2. Approval of the Fiscal Year 2021-2022 Budget Amendment #2. 3. Approval of the Fiscal Year 2022-2023 Budget. ATTACHMENTS: 1. Preliminary FY23 BA#1 Budget Impact Slides. Public Services (Park Impact Fees)$1,145,394 FY22 BA#2 -PIF Arctic Court Infill House Allocation $338,141 Property Sale Proceeds $1,362,065 FY22 BA#2 -WCH Interest Income $100,000 Total Current Allocation $2,945,600 + Revolving Loan Fund Allocation $720,000* New Project Total Budget $3,945,600 + WCH Arctic Court Infill House Allocation $280,000 Revolving Loan Fund Available to Lend $3,689,968 -Marmalade Plaza Allocation $720,000 Remaining Available to Lend $2,969,968 WCH Arctic Court Infill House $280,000 -Marmalade Plaza Allocation $280,000 Remaining Budget $0** Revolving Loan FundMarmaladePlaza Project West Capitol Hill Arctic Court Infill House *If the entire $1M is not necessary, the $720K from the RLF will be returned.**The Agency will request the use of affordable housing funds to finish the Project. Budget Impact: Marmalade Plaza in the West Capitol Hill Project Area Property Acquisition $0 + CIP Depot District Project Allocation $3,900,000 New Project Total Budget $3,900,000 CIP Depot District Project Fund $9,570,186 -Station Center Property Acquisition $3,900,000* Remaining Available to Lend $5,670,186 Station Center Infrastructure FundsStation Center Property Acquisition *The Agency intends to replace the reallocated infrastructure funds with proceeds from the RDA’s future disposition of Station Center property. Budget Impact: Station Center in the Depot District Project Area Fiscal Year:FY2022-2023 Department:Finance Division:Policy and Budget Prepared by:Mike Burns x6461 Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Initiative Type:Other Was this request submitted with the annual budget?No Can this request be covered with existing resources?Yes Request is for rescope of current budget available. Is this an emergency?No Please include narrative about why this request is emergent in nature … Why will this issue not be able to wait until next fiscal year? Projects are underway for FY23. Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Description 1. Rescope of funding previously allocated to West Capitol Hill Arctic Court Infill Home project and the Revolving Loan Fund to West Capitol Hill Marmalade Plaza. 2. Rescope of funding previously allocated to Depot District Station Center Infrastructure to Station Center Land Acquisition. Continued… Continued… Continued… Revenue Impact by Fund Current YTD Expenses Current Budget Proposed Budget Change Proposed Budget w/ Amendment General Fund Select Department from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Internal Service Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enterprise Fund Select Fund from Drop Down List - - Other Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - TOTAL CHANGE IN REVENUE - Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Accounting & Fund Detail Expense Impact by Fund Current YTD Expenses Current Budget Proposed Budget Change Proposed Budget w/ Amendment General Fund Select Department from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Net Change in GF Fund Balance - Internal Service Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enterprise Fund 93 RDA - CIP 9350250 2700 1,136,952 280,000 1,416,952 9350350 279901 280,000 (280,000)- 9385850 2950 12,716,284 (720,000)11,996,284 9385400 2700 -720,000 720,000 9340001 2700 9,238,007 (3,900,000)5,338,007 9340650 2700 -3,900,000 3,900,000 Other Fund Select Fund from Drop Down List Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - Enter Cost Center Enter Object Code - TOTAL CHANGE IN EXPENSE - Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Accounting & Fund Detail Initiative Name: RDA BA#1 Initiative Number:Entered by Finance Grant Information Funding Agency: Grant Program: Grant # : CFDA # : Grant Amount Requested: Is a match required? Matching type: Matching percent: Matching Funds Required: Match is in the current budget? Colloborating Agencies: Grant Submittal Date: Do options exist for continued funding? Does the grant fund a position? If yes, will the position be eliminated at the end of the grant: Will the grant be completed in the grant funding time frame? What are anticipated expenses for the City beyond the grant? Please provide a brief description of the grant: Description… Continued… Initiative Name: RDA BA#1 Initiative Number:Entered by Finance FTE Information Does the amendment fund a position? What are total annual costs for the position? (Fully Loaded) Does the current request reflect the fully loaded cost? If not, are there additional funding options for future years? What is the additional amount needed in future years? Please provide a brief description of the position: Description… Description… Description… Continued… 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 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 6/30/2022 Rachel Otto, Chief of Staff Date Sent to Council: 6/30/2022 TO: Salt Lake City Council DATE: 6/30/2022 Dan Dugan, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Appointment Recommendation: Redevelopment Advisory Committee STAFF CONTACT: DOCUMENT TYPE: April Patterson April.Patterson@slcgov.com Board Appointment: Redevelopment Advisory Committee RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and appoint Baxter Reecer 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 June 30, 2022 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Dugan, Listed below is my recommendation for membership appointment to Redevelopment Advisory Committee. Baxter Reecer to be appointed for a four year term, starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File 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 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 6/30/2022 Rachel Otto, Chief of Staff Date Sent to Council: 6/30/2022 TO: Salt Lake City Council DATE: 6/30/2022 Dan Dugan, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Appointment Recommendation: Redevelopment Advisory Committee STAFF CONTACT: April Patterson April.Patterson@slcgov.com DOCUMENT TYPE: Board Appointment: Redevelopment Advisory Committee RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and appoint Amy Rowland 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 June 30, 2022 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Dugan, Listed below is my recommendation for membership appointment to Redevelopment Advisory Committee. Amy Rowland to be appointed for a four year term, starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File 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 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 6/30/2022 Rachel Otto, Chief of Staff Date Sent to Council: 6/30/2022 TO: Salt Lake City Council DATE: 6/30/2022 Dan Dugan, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Re-Appointment Recommendation: Redevelopment Advisory Committee STAFF CONTACT: April Patterson April.Patterson@slcgov.com DOCUMENT TYPE: Board Re-Appointment: Redevelopment Advisory Committee RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and re-appoint Brian Doughty 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 June 30, 2022 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Dugan, Listed below is my recommendation for membership re-appointment to Redevelopment Advisory Committee. Brian Doughty to be re-appointed for a four year term, starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File