HomeMy WebLinkAbout10/11/2022 - Meeting Materials
Board of Directors of the
REDEVELOPMENT AGENCY OF
SALT LAKE CITY
AGENDA
October 11, 2022 Tuesday 2:00 PM
Council Work Room
451 South State Street Room 326
Salt Lake City, UT 84111
SLCRDA.com
In accordance with State Statute 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: 09:30:47
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 15, 2021.
2.Resolution: RDA Budget Amendment No.2 for Fiscal Year 2022-
23 ~ 2:10 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 a gap loan for the Spark!
project at 1500 West North Temple, funding for a Station Center development plan
contract, and market-based compensation adjustments among other items.
3.Informational: Accessory Dwelling Unit Financing Program ~ 2:30 p.m.
20 min.
The Board will receive a briefing about the Accessory Dwelling Unit Financing Program.
The RDA is working to create a program to help primarily low to moderate-income
homeowners finance accessory dwelling unit (ADU) construction. The initial focus of the
program will be within the RDA’s 9-Line Project Area.
4.Resolutions: Utah Performing Arts Center Interlocal
Agreements ~ 2:50 p.m.
20 min.
The Board will receive a briefing about, and will consider adopting, resolutions
approving changes to two interlocal agreements between Salt Lake City, the
Redevelopment Agency (RDA), and the Utah Performing Arts Center Agency (UPACA),
for operation of the George S. and Dolores Dore Eccles Theater. The changes are related
to insurance and intended to save taxpayers money.
5.Informational: Eccles Theater Annual Report Presentation ~ 3:10 p.m.
20 min.
The Board will receive a presentation from the County’s Department of Arts & Culture
about the Eccles Theater Annual Report including structure, programs, financial updates
and next steps. The management and operations of the Eccles Theater is provided
through an Interlocal Agreement between the owners (Salt Lake City, Salt Lake City
Redevelopment Agency and Salt Lake County) entitled the “Utah Performing Arts Center
Operating Agreement”.
6.Resolution: Bicycle Collective Loan ~ 3:30 p.m.
20 min.
The Board will receive a briefing about, and consider adopting, a resolution approving a
$500,000 increase for a loan up to $2,250,000 and lock in a base interest rate. This
would fund construction of the nonprofit’s headquarters located at approximately 901
South Gale Street and along the 9-Line Trail. The project will contain about 15,000
square feet for a multi-use building with retail, programming, and operations space.
7.Resolution: Granary Adaptive Reuse Loan Request for Fisher
Brewing ~ 3:50 p.m.
20 min.
The Board will receive a briefing about, and will consider adopting, a resolution
approving a loan to Fisher Brewing Company LLC for construction costs related to a
brewery and taproom expansion project at approximately 316 West 800 South.
8.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.
9.Report and Announcements from RDA Staff TENTATIVE
5 min.
The Board may review Board information and announcements. The Board may give
feedback on any item related to City business, including but not limited to;
•Project Updates and Community Outreach; 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: Pre-Disposition Property Report - 702 West 200
South (Sun Bar)~ 4:10 p.m.
20 min.
The Board will receive a written briefing about plans for disposition of property at 702
West 200 South.
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.2 for Fiscal Year 2022-
23 -
-
The Board will set the date of Thursday, November 10, 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 a gap loan for the Spark! project at 1500 West North Temple,
funding for a Station Center development plan contract, and market-based compensation
adjustments among other items.
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 Thursday, October 6, 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.
The Local Building Authority, the Redevelopment Agency, and the Salt Lake City Council of Salt
Lake City, Utah met in Formal Session on Tuesday, June 15, 2021 in an Electronic Meeting,
pursuant to the Redevelopment Agency and City Council Chairs’ determination.
The following Board Directors/Council Members were present:
Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James Rogers,
Darin Mano
Present Legislative leadership:
Cindy Gust-Jenson, Executive Director; Jennifer Bruno, Deputy Director; Lehua
Weaver, Associate Deputy Director
Present Administrative leadership:
Mayor Erin Mendenhall; Rachel Otto, Chief of Staff; Lisa Shaffer, Chief Administrative Officer;
Danny Walz, Redevelopment Agency Chief Operating Officer
Present City Staff:
Katie Lewis – City Attorney, Cindy Lou Trishman – City Recorder, DeeDee Robinson – Minutes
and Records Clerk, Robert Nutzman – Administrative Assistant, Sylvia Richards – Public Policy
Analyst
Council Member Fowler presided at and conducted the meeting.
The meeting was called to order at 7:00 pm
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
1
A.LBA OPENING CEREMONY:
1.
Council/Board Member Amy Fowler will conduct the formal meetings.
Minutes:
Council/Board Member Fowler welcomed all to the meeting.
2.
Pledge of Allegiance.
Minutes:
The Pledge of Allegiance was recited.
3.
Welcome and Public Meeting Rules.
Minutes:
Council/Board Member Fowler reviewed the meeting rules of decorum and the role of
City Council Members as members of the Local Building Authority and the
Redevelopment Agency.
B.LBA POTENTIAL ACTION ITEMS:
1. Resolution: Local Building Authority Budget for Fiscal Year 2021-22
The Board will consider approving a resolution adopting the final budget for the
Local Building Authority (LBA) of Salt Lake City for Fiscal Year 2021-22, including
the Capital Projects Fund.
The LBA’s Capital Projects Fund for Fiscal Year 2021-22 only includes the bond
debt services for the Glendale and Marmalade Libraries. (Other Capital projects
throughout the City are included in the Mayor’s Recommended Budget.) The LBA
is a financing tool for cities and government entities, like libraries, to bond for
capital projects at better interest rates. Capital projects are big projects like parks,
public buildings, and street projects.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
2
Motion:
Moved by Board Member Rogers, seconded by Board Member Dugan to
approve Resolution 03 of 2021, adopting the Final Budget for Fiscal Year
2021-22 of the Capital Projects Fund of the Local Building Authority.
AYE: Amy Fowler, Ana Valdemoros, Daniel Dugan, Dennis Faris, James Rogers, Darin
Mano
ABSENT: Chris Wharton
Final Result: 6 – 0 Pass
C.LBA ADJOURNMENT:
Motion:
Moved by Board Member Rogers, seconded by Board Member Faris to adjourn as
the Local Building Authority and Convene as the Redevelopment Agency
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
3
REDEVELOPMENT AGENCY of
SALT LAKE CITY, UTAH MEETING
Please note: Dates not identified in the FYI - Project Timeline are either not applicable or not yet
determined.
D.RDA POTENTIAL ACTION ITEMS:
1. Resolution: RDA Budget Amendment No.1 for Fiscal Year 2020-21
The Board will consider adopting a resolution amending the final budget of the
Redevelopment Agency of Salt Lake City for Fiscal Year 2020-21. 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 adjusting estimated
property tax increment revenues based on actual amounts received, additional
funding for Station Center public infrastructure in the Depot District, a to-be-
decided catalytic development along North Temple, a new community and cultural
initiative in the Granary District, and other changes.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, May 18, 2021 and Tuesday, June 1, 2021
Set Public Hearing Date - Tuesday, April 13, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 at 2 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
Motion:
Moved by Board Member Rogers, seconded by Board Member Valdemoros to
adopt Resolution 11 of 2021, amending the Fiscal Year 2020-2021 final
budget of the Redevelopment Agency as proposed by the Administration with
the Granary District Community & Cultural Initiative funding going into a
holding account.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
4
2. Resolution: Budget for the Redevelopment Agency of Salt Lake City
for Fiscal Year 2021-22
The Board will consider approving a resolution adopting the final budget for the
Redevelopment Agency of Salt Lake City for Fiscal Year 2021-22.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, May 18, 2021; Tuesday, June 1, 2021; and Tuesday, June 8,
2021
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
Motion:
Moved by Board Member Rogers, seconded by Board Member Dugan to
adopt Resolution 12 of 2021, approving the FY22 RDA Budget reflected in the
attached Key Changes spreadsheet with the clarifications shown on the
motion sheet. RDA Capital Projects – $2,947,019 in capital projects are
approved which do not lapse to Fund Balance with the understanding that
these will return to the Board when specific project / program proposals are
available as follows:
1.$83,832 from the Central Business District and $667,535 from Program
Income Fund for Storefront & Commercial Revitalization into a holding
account
2.$100,000 from Block 70 for Regent Street Parking Structure Reserve
holding account
3.$332,179 from the Depot District for Station Center Infrastructure
holding account
4.$200,000 from the Depot District for Environmental Remediation at
Station Center Sites 3 & 4
5.$443,731 from the Granary District for Community & Cultural Initiative
into a holding account
6.$30,474 from North Temple for the required 10% school fund
7.$289,268 from North Temple for a Strategic Interventions holding
account
8.$350,000 Northwest Quadrant Shared Costs holding account
9.$200,000 from Program Income Fund for Sustainability Technical
Assistance Program holding account
10.$250,000 from Program Income Fund for Gallivan repairs into a
holding account
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
5
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Motion:
Moved by Board Member Rogers, seconded by Board Member Dugan to
adopt the Legislative Intent Statements as outlined on the motion sheet
under Motion 2, items A and B.
•A. Energy Efficiency as a Condition of any RDA Project Loans and
Investments. It is the intent of the Board that all RDA project loans and
investments require certain energy efficiency standards be met as a
condition of funding. Staff note: The Council/Board may wish to
designate specific energy efficiency or sustainability standards, such as
those set out by LEED and other accrediting organizations. (See
examples at https://www.epa.gov/smartgrowth/green-building-
standards.)
•B. Structure of Accounts within RDA, including Fund Balances and
Previous Capital Projects. It is the intent of the Board to review the full
structure of RDA accounts, including fund balances and capital projects
funded in previous years. The Board may wish to discuss with the RDA
and Finance staff the best way to get this information on a real-time
basis. Staff note: The City’s Enterprise Resource Planning (ERP) effort
will help in tracking/providing this information in a less labor-
intensive way, although the horizon for full implementation could be a
year or longer.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
E.RDA ADJOURNMENT:
Motion:
Moved by Board Member Faris, seconded by Board Member Wharton to adjourn
as the Redevelopment Agency and convene as the City Council.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
6
SALT LAKE CITY COUNCIL MEETING
Please note: Dates not identified in the FYI - Project Timeline are either not applicable or not yet
determined.
F.OPENING CEREMONY:
1.
The Council will approve the work session meeting minutes of Tuesday, February
16, 2021; as well as the formal meeting minutes for February 2, 2021 and February
16, 2021.
Motion:
Moved by Council Member Rogers, seconded by Council Member Wharton to
approve the Work Session meeting minutes for February 16, 2021; Formal
meeting minutes for February 2, 2021 and February 16, 2021.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
2.
The Council will consider adopting a joint ceremonial resolution with Mayor
Mendenhall recognizing June 19, 2021 as Juneteenth Freedom Day in Salt Lake
City.
Motion:
Moved by Council Member Wharton, seconded by Council Member
Valdemoros to adopt Resolution 22 of 2021, recognizing June 19 as
Juneteenth day in Salt Lake City.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Minutes:
Jeanetta Williams (NAACP) thanked the council for the recognition of the
Juneteenth proclamation and the creation of the national holiday to recognize the
magnitude of the day.
G.PUBLIC HEARINGS:
Items G1-G8 will be heard as one public hearing
th
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
7
1. Grant Application: 9-Line Railroad Crossing: Transportation
Investment Fund-Active Transportation (TIF-Active) Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT). If
awarded, this grant would fund the construction of a bridge or tunnel for the 9-
Line Trail at approximately 650 West to provide safe passage for pedestrians and
cyclists over or under the freight and passenger rail. The requested funding is
based on a planning level cost estimated from similar structures and may change
as a more detailed site analysis is completed.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
2. Grant Application: Red Butte Creek Trail Investment Fund-Active
Transportation (TIF-Active) Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT). If
awarded, this grant would fund the construction of a paved multi-use trail that
follows the Red Butte Creek Corridor. The one mile stretch of trail will cross next
to or near the creek via a new underpass under Foothill Drive and connect to the
University of Utah’s family student housing and the Veterans Affairs campus.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
8
3. Grant Application: 2022 Police Reform and Racial Justice Program
Grant
The Council will accept public comment for a grant application request from the
Police Department to the United States Conference of Mayors. The Police
Department applied for the Target Police Reform and Racial Justice Grant
Program to enhance its mental health and law enforcement co-responder
initiative. If awarded, this grant would fund immigrant and minority outreach and
education, expanded co-responder team coverage and equipment, and training.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
4. Grant Application: Rose Park Bicycle Pump Track Grant
The Council will accept public comment for a grant application request from the
Department of Public Services to the Governor’s Office of Economic
Development. If awarded, this grant would fund the construction of a new bicycle
pump track adjacent to the Day-Riverside Library along the Jordan River Parkway
Trail within the Rose Park neighborhood. Local community groups will be asked
for feedback to design and develop a unique bicycling amenity that will help
activate this open space along the Jordan River and provide a new recreational
feature to the Jordan River Parkway trail.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
5. Grant Application: PaddleShare: Facilitating Self-serve Kayak Rental
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
9
on the Jordan River
The Council will accept public comment for a grant application request from the
Department of Public Services to the Governor’s Office of Economic
Development. If awarded, this grant would fund construction of kayak
lockers/stations. Stations will include an enclosed locker system, with multiple
lockers containing all the equipment a user needs to paddle on the Jordan River to
a downstream station.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
6. Grant Application: Salt Lake City Prosecutor Domestic Violence
Advocate Grant
The Council will accept public comment for a grant application request from the
Office of the City Attorney to the Utah Office for Victims of Crime. If awarded,
this grant would fund a victim advocate to assist and support victims of domestic
violence as their cases move to the prosecution and adjudication phases. The
services include: information; education and advocacy through the case and
prosecution; assistance with victim impact statements; and support and
accompaniment to court and meetings with investigators and prosecutors. The
Victim Advocate also assists in post-release safety planning, preparation for court
appearances, and jail release agreements.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
10
7. Grant Application: Social Impact Bond Study (EDA CARES Act
COVID-19 Recovery Technical Assistance Grant)
The Council will accept public comment for a grant application request from the
Department of Economic Development to the Wasatch Front Regional Council. If
awarded, this grant would fund a consultant to work with the Department of
Economic Development to perform a Social Impact Bond Study. The study will
assess economic and opportunity disparities with particular focus on Salt Lake
City’s west side and propose interventions that may help mitigate these
disparities. Additionally, the study will identify financing mechanisms to invest in
the interventions highlighted in the study.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
8. Grant Application: 2022 Police Traffic Services Equipment Program
Grant
The Council will accept public comment for a grant application request from the
Police Department to the Utah Department of Public Safety. If awarded, this grant
would fund the purchase of 100 traffic cones and 50 barricades. These items will
be used by the Motor Squad for traffic control during special events, restricting or
diverting traffic due to accidents, and other similar uses.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - Tuesday, June 15, 2021 at 7 p.m.
TENTATIVE Council Action - n/a
Staff Recommendation - Close and refer to future consent
agenda.
Minutes:
Council Member Fowler provided the rules of decorum.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
11
Sylvia Richards provided a brief introduction for each Grant Application.
Nigel Swaby spoke in support of grant items G1,G3, and G5, thanked the Police
Department for all their hard work in the Fairpark Neighborhood.
Grant Bustillos spoke regarding scooter rental companies in the city specifically Lime
& Link and expressed support for Byrd Scooters.
George Chapman spoke regarding 900 South crossing, suggesting the Council
not spend money on consultants, was in support for most of the grant applications
including the bridge proposal, Red Butte Creek trail (cutting trees/poisoning birds), and
expressed the need for bike trail in Emigration.
Anne Charles agreed with George’s comments on protecting birds/trees and not using
consultants, did not support $100,000 for Police, need Civilian Response model/not co-
responder model, did not support $5000 for traffic cones.
Motion:
Moved by Council Member Dugan, seconded by Council Member Faris to
close the public hearing and refer Items G-1 through G-8 to a future Consent
Agenda for action.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
H.POTENTIAL ACTION ITEMS:
1. Ordinance: Library Budget Amendment No.2 for Fiscal Year 2020-21
The Council will consider adopting an ordinance that would amend the budget for
the Library Fund for Fiscal Year 2020-21. Budget amendments happen several
times each year to reflect adjustments to the City’s budgets, including proposed
project additions and modifications. The proposed amendment includes a request
to increase the Library’s General Fund budget to account for pass-through
property tax revenue collected by Salt Lake County which goes directly to the Utah
Inland Port Authority and the Convention Facility.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, May 18, 2021
Set Public Hearing Date - Tuesday, May 18, 2021
Hold hearing to accept public comment - Tuesday, June 8, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
12
Staff Recommendation - Refer to motion sheet(s).
Motion:
Moved by Council Member Mano, seconded by Council Member Valdemoros
to adopt Ordinance 24 of 2021, amending the final budget for the Library
Fund for the fiscal year beginning July 1, 2020, and ending June 30, 2021.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
2. Ordinance: Budget Amendment No. 9 for Fiscal Year 2020-21
The Council will consider adopting an ordinance that would amend the final
budget of Salt Lake City, including the employment staffing document, for Fiscal
Year 2020-21. The proposed amendment includes funding for building office
space to accommodate expansion of the Emergency Management Division,
technology upgrades for the 911 Department, and reimbursements to the Fire
Department, among other changes.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, May 4, 2021 and Tuesday, June 1, 2021
Set Public Hearing Date - Tuesday, May 4, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
Ordinances listed below (H3-H14) are associated with the
implementation of the Mayor’s Recommended Budget for Salt Lake
City, including the Library Fund, for the Fiscal Year (FY) 2021-22.
Motion:
Moved by Council Member Rogers, seconded by Council Member Dugan to
adopt Ordinance 25 of 2021, amending the FY 2020-2021 final budget of Salt
Lake City including the employment staffing document as shown on the
motion sheet.
•A-1: Pulled prior to submission.
•A-2: Pulled prior to submission.
•A-3: Pulled prior to submission.
•A-4: Pulled prior to submission.
•A-5: Budgeting for Inland Port Tax Revenue – ($-0-)
•A-6: Budgeting for Convention Hotel Tax Revenue – ($-0-)
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•A-7: Presumption for CARES Act Funding – (-$293,067 – General Fund)
•A-8: Fire Emergency Management Office Build Out – ($293,067 –
General Fund)
•A-9: 911-ETM Security Platform – ($41,138 – E911 Fund)
•D-1: Police Impact Fee Refund – ($510,828 – Police Impact Fees)
•D-2: Moving Transportation CIP Projects to CIP Fund – ($8,695,770 –
CIP Fund)
•D-3: Transfer CIP Funds to Refuse Fund – ($46,982 – CIP Fund)
•D-4: Transfer Bond Funds from 700 West Cost Center to Bond
Contingency – ($917,854 – CIP Fund)
•D-5: Corrections for Debt Transfer Errors in Original Adopted Budget –
($78,291 – Debt Service/General Fund)
•D-6: Donation Fund Increase – ($200,000 – Donation Fund)
•D-7: Fire Department – Wildland/Search & Rescue Deployments –
($230,683 – General Fund)
•D-8: Fire Department – Other Reimbursements – ($59,126 – General
Fund)
•D-9: Fire Department COVID Costs – ($605,435 – General Fund)
•E-1: Salt Lake County, CATNIP, Reconfigure Gilmer Drive – ($55,365 –
CIP Fund)
•E-2: CARES Act Third Tranche – ($150,000 – Grant Fund)
•G-1: Utah State Department of Public Safety, Bureau of Forensic
Services, FY20 Paul Coverdell Forensic Science Improvement Grant
Program – ($19,500 – Grant Fund)
•I-1: Council-added item ARPA Reimbursement to General Fund Balance
for Eligible Employee Bonuses – ($1,193,000 from ARPA)
•I-2: Council-added item Re-scope Remaining Budget for the Salt Laker
Card to allow second $500 payments, $1,000 new cards and covering
nonprofit program administration costs.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
3. Ordinance: Appropriating Necessary Funds to Implement Provisions
of an MOU between Salt Lake City and AFSCME for Fiscal Year 2021-
22
The Council will consider adopting an ordinance appropriating necessary funds to
implement, for Fiscal Year 2021-22, the provisions of the Memorandum of
Understanding (MOU) between Salt Lake City Corporation and the American
Federation of State, County, and Municipal Employees (AFSCME) Local 1004,
representing eligible employees.
FYI – Project Timeline: (subject to change per Chair direction or Council
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
14
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
4. Ordinance: Approving an MOU between Salt Lake City and the
International Association of Firefighters for Fiscal Year 2021-22
The Council will consider adopting an ordinance approving a Memorandum of
Understanding (MOU) between Salt Lake City Corporation and the International
Association of Firefighters Local 81, representing eligible employees pursuant to
the Collective Bargaining and Employee Representation Joint Resolution dated
March 22, 2011, which shall become effective on proper ratification and signature.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
Minutes:
Placeholder
5. Ordinance: Appropriating Necessary Funds to Implement Provisions
of the MOU between Salt Lake City and the International Association
of Firefighters for Fiscal Year 2021-22
The Council will consider adopting an ordinance appropriating the necessary
funds to implement, for Fiscal Year 2021-22, the provisions of the Memorandum
of Understanding (MOU) between Salt Lake City Corporation and the
International Association of Firefighters Local 81, representing eligible employees.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
6. Ordinance: Compensation Plan for All Non-represented employees of
Salt Lake City for Fiscal Year 2021-22
The Council will consider adopting an ordinance approving a compensation plan
for all non-represented employees of Salt Lake City.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
7. Ordinance: Appropriating Necessary Funds to Implement Provisions
of the MOU between Salt Lake City and the Salt Lake City Police
Association for Fiscal Year 2021-22
The Council will consider adopting an ordinance appropriating necessary funds to
implement, for Fiscal Year 2021-22, the provisions of the Memorandum of
Understanding (MOU) between Salt Lake City Corporation and the Salt Lake
Police Association, representing eligible employees.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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8. Ordinance: Approving an MOU between Salt Lake City and the Salt
Lake City Police Association
The Council will consider adopting an ordinance approving a Memorandum of
Understanding (MOU) between Salt Lake City and the Salt Lake City Police
Association, representing eligible employees for Fiscal Year 2021-22.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
Minutes:
Placeholder
9. Ordinance: Adopting the rate of tax levy, including the levy for the
Library Fund, for Fiscal Year 2021-22
The Council will consider approving an ordinance adopting the rate of tax levy,
including the levy for the Library Fund, upon all real and personal property within
Salt Lake City made taxable by law for Fiscal Year 2021-22.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
10. Ordinance: Adopting the Budget for the Library Fund of Salt Lake
City, Utah for Fiscal Year 2021-22
The Council will consider approving an ordinance adopting the budget for the
Library Fund of Salt Lake City, Utah for Fiscal Year 2021-22.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
11. Ordinance: Amendments to the Salt Lake City Consolidated Fee
Schedule for Fiscal Year 2021-22
The Council will consider adopting an ordinance amending various fees and fee
information set forth in the Salt Lake City Consolidated Fee Schedule.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
Minutes:
Placeholder
12. Ordinance: Work in the Public Way Fees
The Council will consider adopting an ordinance amending sections of the Salt
Lake City Code relating to definitions and fees of work in the public way.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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Staff Recommendation - Refer to motion sheet(s).
13. Ordinance: City Departments Organizational Changes
The Council will consider adopting an ordinance amending sections of the Salt
Lake City Code relating to the organizational changes with the Department of
Public Services, the proposed Department of Public Lands, and the Department
of Community and Neighborhoods (CAN). The Mayor's proposed budget would
transfer the Engineering Division and Youth and Family Division between the
CAN and Public Services Departments.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
14. Ordinances relating to the Fiscal Year 2021-22 City Budget, excluding
the budget for the Library Fund
The Council will consider approving an ordinance adopting the budget for Salt
Lake City, Utah, excluding the budget for the Library Fund which is separately
adopted, and the employment staffing document of Salt Lake City, Utah for
Fiscal Year 2021-22.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, April 20, 2021
Hold hearing to accept public comment - Tuesday, May 18, 2021 and Tuesday,
June 1, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Refer to motion sheet(s).
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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Minutes:
Jennifer Bruno gave a brief overview of the FY 2021-22 City Budget.
Motion:
Moved by Council Member Dugan, seconded by Council Member Wharton
to Motion 1: adopt Ordinance 32 of 2021, approving Salt Lake City’s Fiscal
Year 2021-22 budget as outlined in the attached key changes spreadsheets
and staffing document, excluding the schedule for capital projects and debt
and the Library Fund.
updated 2:05 pm
Adopts City Budget except Library & CIP (agenda item H14)
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Motion:
Moved by Council Member Wharton, seconded by Council Member Dugan
to Motion 2: adopt Ordinance 33 of 2021 approving the budget for the
Library Fund of Salt Lake City for Fiscal Year 2021-22.
updated 2:05 p.m.
Adopts Library Fund Budget (agenda Item H10)
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Motion:
Moved by Council Member Wharton, seconded by Council Member Mano to
Motion 3: adopt Ordinance 34 of 2021 setting the final rate of tax levy,
including the final levy for the Library Fund, upon all real and personal
property within Salt Lake City, made taxable by law for Fiscal Year 2021-22
as listed on the motion sheet, and authorize the Council Chair to sign the
necessary documentation for the State Tax Commission. A tax of .004076
on each dollar of taxable valuation of which:
A. .002854 shall be credited as revenue in the General Fund, generating
$88,819,132 of on-going revenue; and
B. .000014 shall be credited to the judgment levy for the General Fund, a
one-year adjustment generating $433,129 of one-time revenue; and
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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C. .000556 shall be credited toward repayment of General Obligation
Bonds, generating $17,315,863 of on-going revenue; and
D. .000649 shall be credited as revenue in the special Library Fund,
generating $20,979,219 of on-going revenue; and
E. .000003 shall be credited to the judgment levy for the Library Fund, a
one-year adjustment generating $83,554 of one-time revenue.
updated 2:05 pm
Sets all tax rates (agenda item H9)
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Motion:
Moved by Council Member Mano, seconded by Council Member Dugan to
Motion 4: adopt $37,355,406 to be transferred into CIP, including
APPROVING $8,572,651 in funding for annual debt service and other
ongoing commitments, as detailed in the Mayor’s Recommended CIP
Budget excluding the first year payment for the proposed new sales tax
Series 2022 bond, and with the understanding that funding for CIP projects
and the proposed bond will be considered separately later this year.
updated 2:05 pm
CIP & Debt Service
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Motion:
Moved by Council Member Wharton, seconded by Council Member Dugan
to Motion 5: adopt the Legislative Intent Statements as outlined on the
motion sheet under Motion 5, items A through E.
•A. Update Boarded-Building Fee. It is the intent of the Council that the
Administration propose a boarded building fee that includes the full
city costs of monitoring and responding by police, fire and other city
departments at these properties.
•B. Trips-to-Transit Expansion Evaluation. It is the intent of the Council
that the Administration provide their strategy for evaluating whether
to expand the Trips-to-Transit program, which will begin to serve west
side neighborhoods in late 2021, to other areas of the City.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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•C. Golf Fund Update. It is the intent of the Council that the
Administration provide information on the following items in
anticipation of a work session briefing to review and discuss options
for the Golf Fund.
◦a. Golf Fund Financial Sustainability: Trends in revenues,
expenditures,
◦b. Long-term CIP Plans. Based on current projections and the
recently-completed short-term CIP plan,
◦c. Golf Food and Beverage Options. A review of the specific open
space zoning ordinances, with the goal of removing barriers to
providing additional food and beverage options in golf courses.
To the extent that barriers exist in State law the Council requests
an analysis of those, and that changing them be identified as a
future legislative priority.
•D. Expanded Funding Our Future Definition. It is the intent of the
Council that the definition of “public safety” for allocation of Funding
Our Future revenue include not only the Police Department, Fire
Department, and 911 Dispatch, but also any social workers and non-
emergency traffic enforcement programs which are designed to
expand the City’s public safety alternative response model. (Note: The
current definition included Fire and 911 Dispatch since FY2020.)
•E. Public Lands Maintenance. It is the intent of the Council that the
Administration provide an estimate of the funding that would be
needed to adequately maintain all of the City's public lands. This
estimate should include the number of FTEs, as well as supplies,
equipment, and appropriate signage.
updated 2:05 pm
Adopts legislative intent statements/interim study items
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
Motion:
Moved by Council Member Dugan, seconded by Council Member Rogers to
Motion 6: adopt ordinances A through F as shown on the motion sheet
relating to the Fiscal Year 2021- 22 budget.
•A. (Ordinance 26 of 2021) Appropriating necessary funds to
implement, for Fiscal Year 2022, the provisions of the memorandum
of understanding between Salt Lake City Corporation and the
American Federation of State, County, and Municipal Employees Local
1004, representing eligible employees in City departments.
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AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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•B. (Ordinance 27 of 2021) Appropriating necessary funds to
implement, for Fiscal Year 2022 the provisions of the memorandum of
understanding between Salt Lake City Corporation and the
International Association of Firefighters Local 81, representing
eligible employees in the Fire Department.
•C. (Ordinance 28 of 2021) Appropriating necessary funds to
implement, for Fiscal Year 2022, the provisions of the memorandum
of understanding between Salt Lake City Corporation and the Salt
Lake Police Association, representing eligible employees in the Police
Department.
•D. (Ordinance 29 of 2021) Approving the Fiscal Year 2022
Compensation Plan for all non-represented employees of Salt Lake
City Corporation and increasing salary figures by 2% based on the
Council’s final adopted FY22 annual budget.
•E. (Ordinance 30 of 2021) Approving an ordinance amending Chapter
14.32, Salt Lake City Code, Construction, Excavation and Obstructions
in the Public Right of Way
•F. (Ordinance 31 of 2021) Approving an ordinance amending several
chapters of Salt Lake City Code related to organizational changes
including creation of the Public Lands Department
Updated 2:05 pm
all other budget-related ordinances including compensation (agenda items
H3-H8 and H11-H13)
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
I.COMMENTS:
1.Questions to the Mayor from the City Council.
Minutes:
Council Members thanked the Mayor and administration for all the work on the 2021-
2022 budget.
2.Comments to the City Council. (Comments are taken on any item not scheduled
for a public hearing, as well as on any other City business. Comments are limited
to two minutes.)
Minutes:
Council Member Fowler reiterated the rules of decorum and public comment.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
23
Nigel Swaby spoke regarding a letter to the Mayor and Council, regarding the clean up
of North Temple Business District, requesting support of the community in cleaning up
the area, attend the Community Council meetings to help solve the problem.
Maria Laposata, Grant Bustillos, Gabriela Paz, Robert Singleton
Alex McMillan spoke in support of Bird scooters, the benefits to the community and the
need for this type of transportation in the city.
Daniel Schelling and Beverly Cooper spoke regarding the Foothill Trails master
plan, requesting release of funds only be done after an outside party reviewed the current
status of the trails and improvements to ensure future improvements were implemented
correctly.
Council Member Wharton took a moment of personal privilege regarding the public trails
to encourage anyone speaking to the trails review the intent language that was adopted.
Katie Pappas spoke regarding the Salt Lake City Mosquito Abatement District, its
history, adversely affecting environment/birds, and that it needed to reevaluation to
protect the city.
George Chapman spoke regarding lack of police officers, Mosquito Abatement District,
and saving trees in Miller Park.
J.NEW BUSINESS:
NONE.
K.UNFINISHED BUSINESS:
NONE.
L.CONSENT:
1. Ordinance: Rezone and Master Plan Amendment at 850 and 870 East
2100 South
The Council will set the date of Tuesday, July 13, 2021 at 7 p.m. to accept public
comment and consider adopting an ordinance that would amend the zoning of
properties at approximately 850 and 870 East 2100 South. The proposal would
rezone the properties from CC (Corridor Commercial District) to CSHBD2 (Sugar
House Business District) and would amend the Sugar House Master Plan Future
Land Use Map. The applicant is requesting to amend the Future Land Use Map in
the Sugar House Master Plan from "Mixed Use - Low Intensity" to "Business
District Mixed-Use - Neighborhood Scale." The intent of the request is to allow
more flexibility to develop a future multi-family residential, office, or mixed-use
development. Consideration may be given to rezoning the property to another
zoning district with similar characteristics. Petition No.: PLNPCM2020-00906
and 00925.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, June 15, 2021
Set Public Hearing Date - Tuesday, June 15, 2021
Hold hearing to accept public comment - Tuesday, July 13, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, July 20, 2021
Staff Recommendation - Set date.
2. Ordinance: Rezone and Master Plan Amendment at 810 East 800
South
The Council will set the date of Tuesday, July 13, 2021 at 7 p.m. to accept public
comment and consider adopting an ordinance that would amend the zoning map
for a parcel of property at 810 East 800 South. The proposal would rezone the
parcel from R-2 (Single- and Two-Family Residential) to CB (Community
Business District) and would amend the Central Community Future Land Use
Map from Low Density Residential to Community Commercial. The applicant
submitted preliminary development plans for a two-story building that would
have commercial space on the first floor, residential units on the second floor, and
parking located to the rear. Consideration may be given to rezoning the property
to another zoning district with similar characteristics. Petition
No.: PLNPCM2020-00740 and PLNPCM2020-00741
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, June 15, 2021
Set Public Hearing Date - Tuesday, June 15, 2021
Hold hearing to accept public comment - Tuesday, July 13, 2021 at 7 p.m.
TENTATIVE Council Action - Tuesday, July 20, 2021
Staff Recommendation - Set date.
3. Board Appointment: Art Design Board – Meggie Troili
The Council will consider approving the appointment of Meggie Troili to the Art
Design Board for a term ending June 15, 2024.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, June 15, 2021
Set Public Hearing Date - n/a
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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Hold hearing to accept public comment - n/a
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Approve.
4. Board Appointment: Art Design Board – Tiffini Porter
The Council will consider approving the appointment of Tiffini Porter to the Art
Design Board for a term ending June 15, 2024.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, June 15, 2021
Set Public Hearing Date - n/a
Hold hearing to accept public comment - n/a
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Approve.
5. Board Appointment: Housing Authority of Salt Lake City – William
Davis
The Council will consider approving the appointment of William Davis to the
Housing Authority of Salt Lake City for a term ending June 15, 2025.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing - Tuesday, June 15, 2021
Set Public Hearing Date - n/a
Hold hearing to accept public comment - n/a
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Approve.
6. Board Appointment: Police Civilian Review Board (PCRB) – Justin
Rodriguez
The Council will consider approving the appointment of Justin Rodriguez to the
PCRB for a term ending September 2, 2024.
FYI – Project Timeline: (subject to change per Chair direction or Council
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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discussion)
Briefing - Tuesday, June 15, 2021
Set Public Hearing Date - n/a
Hold hearing to accept public comment - n/a
TENTATIVE Council Action - Tuesday, June 15, 2021
Staff Recommendation - Approve.
7. Ordinance: Amendments to the Salt Lake City Consolidated Fee
Schedule for Fiscal Year 2021-22
The Council will set the date of Tuesday, July 13, 2021 at 7 p.m. to accept public
comment and consider adopting an ordinance amending various fees and fee
information set forth in the Salt Lake City Consolidated Fee Schedule.
FYI – Project Timeline: (subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date - Tuesday, June 15, 2021
Hold hearing to accept public comment - Tuesday, July 13, 2021 at 7 p.m.
TENTATIVE Council Action -
Staff Recommendation - Set date.
Motion:
Moved by Council Member Rogers, seconded by Council Member Dugan to
approve the Consent Agenda.
AYE: Amy Fowler, Ana Valdemoros, Chris Wharton, Daniel Dugan, Dennis Faris, James
Rogers, Darin Mano
Final Result: 7 – 0 Pass
M.ADJOURNMENT:
Meeting adjourned at: 8:20 pm
Minutes Approved: September 6, 2022
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
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_______________________________
Local Building Authority and City Council Chair
_______________________________
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 City Council
Work Session meeting held Tuesday, June 15, 2021.
MINUTES OF THE SALT LAKE CITY COUNCIL, LOCAL BUILDING AUTHORITY
AND REDEVELOPMENT AGENCY
Tuesday, June 15, 2021
28
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:October 11, 2022
RE: Redevelopment Agency (RDA)
Budget Amendment Number Two FY2023
________________________________________________________________________________
ISSUE AT-A-GLANCE
RDA Budget Amendment Number Two includes requested changes to budgets in the Depot District project area,
North Temple project area, West Capitol Hill project area, Citywide Housing Fund, Revolving Loan Fund, and the
Administration budget. Total expenditures are slightly over $3.5 million for four items. Note there is one Board-
added item. 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.
$4 Million Gap Loan to Spark! Project (former Overniter Motel at 1500 West North Temple)
Funding for the gap loan is proposed to come from rescoping three existing budgets as detailed in the table below
provided by RDA staff.
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Primary
Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds $2,936,762 $1,500,000 $1,436,762
Multiple Housing Development Loan
Fund (HDLP) - Fall NOFA $7,000,000 $1,000,000 $6,000,000
This item is a follow up from September 13 when the Board approved the seller’s note for the land disposition. The
Board also took a unanimous straw poll in support of this gap loan request. If the gap loan is approved, then the
RDA’s total financial contribution to the development would be $14,456,000. A budget impact graphic near the end
of the transmittal provides a visual breakout of the six RDA funding sources going to the Spark! project.
$46,805 from RDA Administration Fund Balance for Market-based Salary Adjustments to Non-
represented Employees
This is a housekeeping item to implement compensation changes from the annual budget. A salary study for non-
represented employee positions identified potential adjustments to ensure compensation is competitive in the
current market. In the annual budget, the Council approved nine months of funding to cover salary adjustments
beginning in October. The RDA and some enterprise funds (e.g., the Airport) did not have the study results
available at the time of budget development and adoption which is why the item appears in a budget amendment.
Project Timeline:
Set Date & 1st Briefing: October 11, 2022
Public Hearing & 2nd Briefing: November 10, 2022
Potential Action: November 10, 2022
Page | 2
Up to $500,000 for RDA to take on Station Center Vision Plan Contract from University of Utah
Half a million dollars is requested to transfer to the RDA an existing consultant contract held by the University of
Utah. The contract is to create a master planning document of development scenarios for Station Center. The scope
of work would be adjusted to reflect the RDA’s goals including the addition of RDA owned properties near Station
Center, coordination for redevelopment of nearby properties owned by UTA, information to develop a Housing and
Transit Reinvestment Zone (HTRZ) application to the State, and inclusive development with firms of multiple sizes
and backgrounds.
The funding is proposed to be equally split from two sources: $250,000 from Station Center public infrastructure
budget and $250,000 from Central Station improvements budget. The total cost of Station Center public
infrastructure is estimated to be $15 million. This item would increase the $9.5 million funding gap.
Draft of Revised Scope of Work
The below draft includes deliverables in the existing scope of work and potential adjustments should the RDA take
on the contract. Additional scope of work items could be added, and the draft items refined. The RDA is currently
drafting a revised scope of work (listed below) because the original scope included items specific to the University of
Utah. The consultants estimate the revised scope of work would take approximately eight months to complete. This
approach is recommended by the RDA as a faster alternative than going back out for another RFP to select a new
consultant. For example, a new RFP could take a few months from drafting to finalizing a contract. The existing
consultant’s work-to-date would be incorporated into the revised scope and deliverables.
A. Authentic community engagement effort that brings new partners into the fold, including nearby Westside
residents, community leaders, institutional partners, businesses, and nonprofits, and coordinates with
other nearby redevelopment efforts.
B. Real estate market analysis to assess the appropriateness of anticipated land uses, including commercial
office, lab, residential, and retail spaces, and feasible affordability mix.
C. Illustrative site plan that locates proposed land uses, shared parking areas, vehicular circulation and
loading/service patterns, open space, and pedestrian network, and more.
D. Recommended placemaking, programming, and activation strategies.
E. Development phasing and property disposition strategy that incorporates best practices for equitable
development and provides opportunities for various types of development teams.
F. Innovation industry partnership strategy that outlines best practice approaches to identifying and
recruiting prospective tenants and integrating them into the future district.
G. Refinement of Station Center Design Guidelines to reflect anticipated land uses and increased building
height allowances in the Gateway Mixed-Use zoning district.
H. Information necessary to submit a competitive application to establish a Housing and Transit Reinvestment
Zone (HTRZ) around the UTA Intermodal Hub.
Policy Questions:
➢Feedback on Draft Scope of Work – The Board may wish to review the draft scope of work above and
provide feedback before approving this budget item.
➢Ground Lease Development Scenario(s) – The Board may wish to discuss adding ground lease development
scenarios to the scope of work. In recent discussions some Board Members have expressed interest in
pursuing a ground lease approach for RDA-owned properties.
➢Stakeholders to Include – The Board may wish to ask the Administration which stakeholders were engaged
during the consultant’s initial work and suggest additional persons and organizations.
Page | 3
Station Center Site Plan Map
Note the Board approved funding in Budget Amendment #1 to purchase the three diagonal hash marked parcels
in development site #4
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, mixed-use transit-oriented development, and new public rights of way to create
smaller more pedestrian friendly block sizes. If this item is approved, then the $9.5 million funding gap would
increase for the $15 million of proposed public infrastructure projects. The Administration recommends the Board
consider using future proceeds from land sales in Station Center 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 a Festival Street (300 South) amenities.
Page | 4
34 Acres of UTA and 4 Acres of RDA-owned Properties in “Central Station”
The UTA and the RDA collectively own approximately 38 acres of land identified for potential development in the
Central Station area. The properties are located between 600 West to Interstate 15 and Dansie Drive (50 South) to
400 South as well as properties on either side of the North Temple bridge spanning 400 West to 600 West. In 2018
the RDA and UTA partnered on a development plan for these properties from which the below map is copied. The
RDA-owned properties are approximately four acres along 100 South between 600 West and Interstate 15.
Page | 5
Returning $1 Million No Longer Needed to Cover Cost Increases for RDA Marmalade Plaza Project
($720,000 to Revolving Loan Fund and $280,000 to Arctic Court Infill Home)
Note: this is a Board-added item
In RDA Budget Amendment #1 the Board approved $720,000 from the Revolving Loan Fund and $280,000 from
the Arctic Court infill home budget to cover anticipated cost increases for the Marmalade Plaza project. This
funding was approved to ensure sufficient budget existed to fully cover the costs included in the time-limited bid
and sign the construction contract. The Board requested that the funding source be changed to parks impact fees in
a follow up budget amendment. The Council approved $1 million in General Fund Budget Amendment #3 for this
project. This item will return the $720,000 to the Revolving Loan Fund to be available for future loans and
$280,000 to the Arctic Court infill home holding account.
Policy Question:
➢Return More Funding to Arctic Court Infill Home Budget – The Board may wish to discuss with the
Administration that after the project is completed any remaining funds be used for the Arctic Court Infill
Home. The RDA reports based on existing information the Marmalade Plaza costs are expected to come in
below the $3.9 million total project budget (detailed in the below table), but final costs won’t be known
until it’s completed.
Source Approved Budget Notes
Park Impact Fees $2,145,394 Restricted to eligible projects and must be
refunded with interest if not spent by deadline
Property Sale Proceeds $1,362,065
Program Income Fund (PIF)
Artic Court Infill Home Rescope $338,141
West Capitol Hill Interest Income $100,000
More flexible than tax increment funding.
Subject to allowable uses per state law (see
additional info section).
TOTAL $3,945,600
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
†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
Page | 6
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
FY – Fiscal Year
HDLF – Housing Development Loan Fund
HTRZ – Housing and Transit Reinvestment Zone
NOFA – Notice of Funding Availability
PIF – Program Income Fund
RDA – Redevelopment Agency
Available Budget $1,599,880
-Spark Allocation $1,500,000
Remaining Budget $99,880
Primary Housing –Property AcquisitionSpark Mixed-Use, Affordable Housing Project
Available Budget $2,936,762
-Spark Allocation $1,500,000
Remaining Budget $1,436,762
North Temple Strategic Intervention Funds
Housing Development Loan Program –Fall NOFA
Available Budget $7,000,000
-Spark Allocation $1,000,000
Remaining Budget $6,000,000
2018 NOFA $2,500,000
2019 NOFA $3,956,000
+ Seller Financing Note $4,000,000
Total Current Loan Amount $6,456,000
+ Primary Housing –Property Acquisition $1,500,000
Total Gap Loan Request $4,000,000
+ North Temple Strategic Intervention Funds $1,500,000
+ Housing Development Loan Program –Fall NOFA $1,000,000
New Project Total Budget $14,456,000
New Loan Amount $10,456,000
Budget Impact: Spark Mixed-Use, Affordable Housing Project in the North Temple Project Area
Available Budget $5,670,186
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $5,420,186
CIP Depot District Project Fund
(Station Center Infrastructure Funds)
Station Center Vision and Implementation Planning
Budget Impact: Station Center Vision and Implementation Planning in the Depot District Project Area
Current Budget $0
+ CIP Depot District Project Allocation $250,000
New Project Total Budget $500,000
+ Central Station Allocation $250,000
Available Budget $664,121
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $414,121
Central Station
Approximate Fund Balance $2,000,000
-RDA Personnel Budget $46,805
Approximate Remaining Fund Balance 1,953,195
Administration Fund BalanceRDA Personnel Budget
Budget Impact: Non-Represented Employee Compensation Study Adjustments
Current Budget $2,480,095
+ Fund Balance Allocation $46,805
New Budget $2,526,900
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: ________________
Erin Mendenhall, Mayor Date sent to Council: ___________
______________________________________________________________________________
TO:Salt Lake City RDA Board DATE: September 27, 2022
Ana Valdemoros, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Chief Operating Officer
SUBJECT:RDA Budget Amendment #2, FY2022-23
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed first amendment to the Annual
RDA Budget for Fiscal Year 2023. Accept public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 0.00 $ 2,546,805.00
RDA CIP FUND 0.00 (2.500.000.00)
TOTAL $ 0.00 $ 46,805.00
September 28, 2022
September 29, 2022
EXECUTIVE SUMMARY:
The purpose of the second amendment (“amendment”) is to addresses the following items:
1. Funding rescope for Spark Loans
2. Rescope of funds for Station Center vision and implementation planning.
3. Compensation adjustment
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board. The
budget opening contains one item:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment #1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
Initiative Number/Name Project Area Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time FTEs
1 Funding Rescope for Spark Loans NT - Capital - (1,500,000.00) One-time -
1 Funding Rescope for Spark Loans NT - 1,500,000.00 One-time -
1 Funding Rescope for Spark Loans CWH - (1,500,000.00) One-time -
1 Funding Rescope for Spark Loans CWH - 1,500,000.00 One-time -
1 Funding Rescope for Spark Loans RLF - Capital - (1,000,000.00) One-time -
1 Funding Rescope for Spark Loans RLF - 1,000,000.00 One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - (250,000.00) One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - (250,000.00) One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - 500,000.00 One-time -
3 Compensation Adjustment Admin - 46,805.00 Ongoing -
-
Total of Budget Amendment Items - 46,805.00 - -
Total by Fund, Budget Amendment #2:
Redevelopment Agency RDA - 2,546,805.00 - - -
Redevelopment Agency - CP RDA -CIP - (2,500,000.00) - -
Total of Budget Amendment Items - 46,805.00 - - -
Fiscal Year 2022-23 RDA Budget Amendment #2
Section G: Board Consent Agenda -- Grant Awards
Section I: Board Added Items
Section A: New Items
Section B: Grants for Existing Staff Resources
Section C: Grants for New Staff Resources
Section D: Housekeeping
Section E: Grants Requiring No New Staff Resources
Section F: Donations
Board ApprovedAdministration Proposed
1
Initiative Number/Name Project Area Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time FTEs
Fiscal Year 2022-23 RDA Budget Amendment #2
Board ApprovedAdministration Proposed
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
FY 2022-23
Adopted Budget RDA BA #1Total RDA BA #2 Total Total To-Date
Redevelopment Agency 50,172,718 - 2,546,805.00 52,719,523
Redevelopment Agency CIP 13,128,181 - (2,500,000.00) 10,628,181
Total of Budget Amendment Items 63,300,899 - 46,805.00 63,347,704
Certification
Budget Director
Deputy Director, City Council/RDA Board
Contingent Appropriation and Notes
2
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL
YEAR 2022-2023
WHEREAS, on June 14, 2022, the Redevelopment Agency (“RDA”) Board of Directors
(“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2022,
and ending June 30, 2023, in accordance with the requirements of Section 17C-1-601.5 of the Utah
Code.
WHEREAS, all conditions precedent to amend the RDA's final budget have been
accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this resolution is to amend the final budget of the RDA, as
approved, ratified and finalized by the Board on June 14, 2022.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder, which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2022, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
September 19, 2022
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
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: September 23, 2022
PREPARED BY: Erin Cunningham, Financial Analyst
RE: RDA Budget Amendment #2, FY 2022-2023
REQUESTED ACTION: Public Hearing and Board Discussion
BUDGET IMPACTS: The proposed Second Amendment identifies appropriations across multiple funds
and projects.
EXECUTIVE SUMMARY: The purpose of the briefing is to provide a preliminary budget proposal for
the Second Amendment to the Fiscal Year 2023 RDA Budget (“Amendment”). There are three proposed
amendments for the following:
Spark Gap Loan: In response to the support of a straw poll at the Board meeting on September 13, 2022,
the Agency is returning to the Board with a gap loan request of $4,000,000 for the Spark development.
Station Center Vision and Implementation Planning: Assumption of the consultant contract for the
creation of a Station Center Vision Plan. The effort would look to develop a planning and
implementation strategy for the Agency property. The request is to cover planning and marketing efforts
at a not to exceed the amount of $500,000.
Previously Approved Non-Represented Employee Compensation Study Adjustments: During the
Fiscal Year 2023 budget process, the City Council approved nine months of an increase in funding based
on the non-represented employee compensation study throughout the City. The Agency’s nine-month
adjusted amount of $46,805 was not included in its annual budget request and is requesting an
amendment to use the Agency’s Administration Fund balance to increase the RDA Personnel budget to
align with the compensation study findings.
ANALYSIS & ISSUES:
Spark Gap Loan
On September 13, RDA staff requested additional funding for Spark, a mixed-use, affordable housing
project located at 1500 W. North Temple in the North Temple Project Area. The Board approved a
$4,000,000 seller’s note as part of a land disposition, and unanimously supported a straw poll for
approving a gap loan request of $4,000,000.
As noted in the attached Staff Memo from August 22, 2022, the seller’s note and gap loan requests are in
addition to the $2,500,000 the Agency awarded Brinshore Development as part of the 2018 Notice of
Funding Availability (“NOFA”) for affordable housing, and the $3,956,000 awarded in the 2019 NOFA.
The result of the gap loan request will raise the loan to $10,456,000, bringing the total financing to
$14,456,000 with the seller’s note.
Staff proposes reallocating funds from the following sources to fund the $4,000,000 gap loan:
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Primary
Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds $2,936,762 $1,500,000 $1,436,762
Multiple Housing Development Loan
Fund (HDLP) - Fall NOFA $7,000,000 $1,000,000 $6,000,000
Station Center Vision and Implementation Planning
In fall 2021, the University of Utah (U of U) released a request for proposals (RFP) from qualified
consulting firms or individuals for the creation of the Station Center Vision Plan, a master planning
document that would consider U of U and RDA-owned properties in the Station Center area (500 – 600
West, 200 – 400 South). By the end of 2021, the U of U had shortlisted and selected a consultant team
comprising Perkins & Will, HR&A Advisors, Kimley-Horn, and Phil Myrick, placemaking expert. The U
of U followed a public solicitation process as required by the State of Utah and allowed RDA Staff to
participate in the drafting of the RFP document, shortlisting of consultants, consultant interviews and
selection, and drafting of the final scope of work for the Vision Plan but did not ask for a financial
contribution.
The Vision Planning effort was launched in 2022 and the consultant team completed initial tasks and
hosted one community engagement event before the U of U experienced a change in leadership and
development priorities. New leadership has spent the past few months evaluating the U of U’s planned
role and level of participation in the project and it was determined that the RDA should assume ownership
of the Vision Plan, with both parties remaining open to opportunities to collaborate as adjacent Station
Center property owners.
The RDA remains committed to the vision of a diverse, mixed-use, sustainable, equitable and inclusive
development at Station Center. An effort of this scale and importance warrants the creation of an upfront
development and implementation strategy. To complete this in the most time efficient manner, Staff is
proposing to re-engage the same consultant team that the U of U hired at the end of 2021 and resume
work on the following deliverables as soon as possible (not comprehensive, final scope TBD):
• Authentic community engagement effort that brings new partners into the fold, including nearby
Westside residents, community leaders, institutional partners, businesses, and nonprofits, and
coordinates with other nearby redevelopment efforts;
• Real estate market analysis to assess the appropriateness of anticipated land uses, including
commercial office, lab, residential, and retail spaces, and feasible affordability mix;
• Illustrative site plan that locates proposed land uses, shared parking areas, vehicular circulation
and loading/service patterns, open space and pedestrian network, and more;
• Recommended placemaking, programming, and activation strategies;
• Development phasing and property disposition strategy that incorporates best practices for
equitable development and provides opportunities for various types of development teams;
• Innovation industry partnership strategy that outlines best practice approaches to identifying and
recruiting prospective tenants, and integrating them into the future district;
• Refinement of Station Center Design Guidelines to reflect anticipated land uses and increased
building height allowances in the Gateway Mixed-Use zoning district;
• Information necessary to submit a competitive application to establish a Housing and Transit
Reinvestment Zone (HTRZ) around the UTA Intermodal Hub.
With the RDA being the primary and lead client, Staff has identified an opportunity to include the RDA-
owned Central Station properties (100 South, near 600 West) in the scope of the Vision Plan. The Station
Center and Central Station properties are in close geographic proximity, separated by UTA-owned
properties that will soon be redeveloped as well. Considering these properties and redevelopment plans in
a holistic manner will result in the most feasible and marketable development program. It is also the
RDA’s intent to use deliverables of the Vision Plan effort to prepare and submit to the State an
application to establish an HTRZ around the Intermodal Hub, which, if approved, would help fund the
planned redevelopment activity in the area.
The budget request is to cover planning and marketing efforts at a not to exceed the amount of $500,000
and Staff proposes reallocating funds from the following sources for this purpose:
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Depot District CIP Depot District Project Fund
(Station Center Infrastructure) $5,670,186 ($250,000) $5,420,186
Depot District Central Station $664,121 ($250,000) $414,121
Depot District Station Center Vision and
Implementation Planning $0 $500,000 $500,000
Previously Approved Non-Represented Employee Compensation Study Adjustments
Staff is formally requesting an increase in Personnel expenses in its Administration Fund to account for
the nine months of funding for the non-represented employee compensation study that was previously
approved by the City Council. At the time of the Fiscal Year 2023 budget presentations, the RDA did not
have specific information available to include this compensation adjustment for non-represented
employees.
The projected annual total is $62,407, which brings the approved nine-month total to $46,805. It is not
anticipated that Agency will be able to absorb the compensation adjustment within the fiscal year’s
budget and is requesting a transfer from the Administration fund balance to ensure its compensation
budget is adjusted at the same time as other impacted City employees.
Fund Description Current
Amount
Requested
Amount
Updated
Amount
Administration RDA Personnel $2,480,095 $46,805 $2,526,900
Administration Approximate Fund Balance $2,000,000 ($46,805) $1,953,195
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2022-2023 Budget.
2. Approval of the Fiscal 2022-2023 Budget Amendment #1.
3. Authorization of a seller’s note and a straw poll with unanimous support for a gap loan for the
Spark development.
ATTACHMENTS:
1. Staff Memo (August 22, 2022): 1500 W. North Temple redevelopment project with Brinshore
Development
2. Staff Memo (July 22, 2022): RDA Budget Amendment #1, FY 2022-2023, July 22, 2022
3. FY23 – Budget Amendment #2 Impact Slides
REDEVELOPMENT AGENCY of SALT LAKE CITY
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
DATE: August 22, 2022
PREPARED BY: Corinne Piazza and Kate Werrett, Project Managers
RE: 1500 W. North Temple redevelopment project with Brinshore Development
REQUESTED ACTION: Approval of terms for a Seller’s Note as part of the land disposition and
consideration of a $4,000,000 gap loan request to Brinshore Development
for a mixed-use, affordable housing project located at 1500 W. North
Temple in the North Temple Project Area.
POLICY ITEM: Land Disposition & Affordable Housing
BUDGET IMPACTS: Land Disposition: $4M Seller’s Note, paid back plus interest, does not
require the Agency to use any upfront funds.
Gap Loan: $4M Agency gap loan, paid back plus interest (specific funding
sources to be determined).
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“Agency”) selected
Brinshore Development (“Brinshore”) through a Request for Proposals (“RFP”) process in 2018 to
redevelop the Agency’s property located at 1500 W. North Temple (“Property”), formerly the location of
the Overniter Motel. The Property is designated as an RDA Tier I Property due to it being over 2 acres (at
2.07 acres) and identified in a City adopted master plan, specifically as an “ideal spot for a signature transit-
oriented development” in the Cornell Station Area Plan. Please see Attachment A: Parcel Location Maps
for reference.
Brinshore’s concept for the project, known as Spark (“Project”) implements the Agency’s vision for the
Property based on the goals and objectives outlined in the North Temple Project Area Plan, the North
Temple Boulevard Plan, city priorities, and as outlined in the RFP. The Project is designed to deliver a total
of 200 units of workforce and family-size affordable housing, including 63 family-sized units ranging from
20-80% AMI and two, three, and four-bedroom units. Additionally, the Project includes neighborhood
serving commercial space, structured parking, a mid-block walkway that connects Cornell Street and 1460
West (to be publicly accessible and privately owned and maintained), a high level of concern for
architectural and urban design principles, transit-oriented design, maximized density, sustainable
construction and building design practices, as well meeting Davis Bacon fair wage requirements for
construction.
The Project began in 2018 and is now in the final due diligence stage with Brinshore finalizing their capital
stack in anticipation of closing by the end of the year. The Project received Low Income Housing Tax
Credits (“LIHTC”) and as such, has a closing deadline of March 1, 2023. The Project is anticipated to begin
construction in Spring 2023 with Project completion in 2024.
The proposed capital stack includes the following requests from the developer:
• The Agency finance the $4,000,000 sale’s price of the Property (“Seller’s Note”). The purchase
price was determined in the RFP and 2018 Purchase and Sale Agreement between Brinshore and
the Agency. The Seller’s Note will be paid back in full plus interest.
• The Agency provide an additional $4,000,000 in loan proceeds (“Gap Loan”) to cover the
remaining financing gap that has occurred due to escalating construction costs and remains even
after the developer secured additional funding sources and implemented cost saving measures to
reduce Project costs.
These requests are in addition to the $2,500,000 the Agency awarded Brinshore as part of the 2018 Notice
of Funding Availability (“NOFA”) for affordable housing and the $3,956,000 the Agency awarded
Brinshore in the 2019 NOFA.
RDA FINANCE COMMITTEE RECOMMENDATION:
On August 15, 2022 the Finance Committee (“Committee”) convened to review the Seller’s Note terms,
the $4,000,000 Gap Loan request, and Gap Loan terms. The Committee unanimously recommends
approval of the funding request and the terms as outlined in the following: Attachment B: 1500 W. North
Temple - Seller’s Note Term Sheet and Resolution and Attachment C: 1500 W. North Temple – Gap Loan
Term Sheet.
ANALYSIS & ISSUES:
Since entering into a Purchase and Sale Agreement with the Agency in 2018, Brinshore has been actively
pursuing financing for the Project, which is estimated at ~$93 million. To date, Brinshore has secured
funding through 4% Low Income Housing Tax Credits and received ~$42.5 million in the competitive
application process. Additionally, Brinshore has secured the following*:
Source Amount
4% Low Income Housing Tax Credits (LIHTC) ~$42,540,000
State Tax Credits ~$1,280,000
Permanent Loan ~$26,700,000
Seller’s Note Financing ~$4,000,000
RDA Loan (Including Gap Financing Request) ~$10,456,000
SLC HOME Funds (SLC Housing Sustainability) ~$1,000,000
State Olene Walker HOME Funds ~$1,000,000
State Olene Walker HTF Funds ~$1,000,000
Salt Lake County HOME Funds ~$700,000
Philanthropic Money ~$1,500,000
Rocky Mountain Power Rebate ~$100,000
Deferred Developer Fee ~$3,000,000
Total ~$93,276,000
*Please note that the financing information is high level and represents only general commitments or
estimates at this time and is subject to change as Project financing progresses.
SELLER’S NOTE FINANCING:
Brinshore is requesting that the Agency finance the $4,000,000 sales price of the Property in the form of a
Seller’s Note. In accordance with the Real Property Disposition Policy for Tier I properties, the Board was
provided an update on the pre-disposition, developer selection, and developer agreement process. The
proposed Seller’s Note of $4,000,000 is based on the appraised value when the property was purchased and
was determined via the 2018 pre-disposition and RFP process and subsequent Purchase and Sale Agreement
between the Agency and Brinshore.
The Seller’s Note financing includes the following:
• The full repayment to the Agency, plus interest to invest in new projects in the future.
• The Agency does not use any current funds to finance the Seller’s Note.
• The Agency will receive payments over time which helps offset upfront construction costs and
makes the Agency’s public benefits requirements within the Project more feasible.
The requested interest rate for the $4,000,000 Seller’s Note is 1.25%. Agency staff has negotiated this rate
with Brinshore based on Project financials and full repayment of the Seller’s Note, plus interest, within a
30-year timeframe and cash flow repayment.
Agency staff recommends approval of the Seller’s Note in accordance with the Agency’s existing
contractual obligations and commitment to the Agency’s extensive public benefits requirements for the
Project.
For full terms and details of the Seller’s Note, please see: Attachment B: 1500 W. North Temple - Seller’s
Note Term Sheet and Resolution.
GAP FUNDING REQUEST:
Due to escalating construction costs, the Project has seen a significant cost increase which has created a
funding gap. In order to move forward with a financially feasible Project, Brinshore has addressed the
funding gap in the following ways:
Additional Funding Sources: Brinshore has applied for and received $500,000 in Utah Housing Corporation
increased basis. They’ve also applied for philanthropic funds as well as an additional $1,400,000 from
Olene Walker, neither of which have been finalized or awarded.
Value Engineering: Brinshore has worked with their design, engineering, and construction team to identify
approximately ~$6,100,000 in cost savings, while still preserving the overall goals for the Project.
Modifications include the removal of a level of underground parking reducing spaces from 134 to 100,
removing the balconies, reconfiguring a portion of the units, and reducing the green roof space.
Developer Contribution: As the Agency’s selected private-sector partner, Brinshore brings extensive
development expertise and borrowing capacity to invest into the Project and carries significant risk to
complete the Project that the Agency does not have to assume. Brinshore’s equity contribution includes the
following:
• Funding predevelopment (~$1,600,000)
• Deferred developer fee ($3,000,000)
• Guarantees (construction completion, operating deficit, tax credit compliance)
• Commercial Master Lease (~$70,000/year)
After securing the additional sources of funds listed above and implementing cost saving measures, the
Project still faces a $4,000,000 funding gap. Brinshore’s request for a Gap Loan allows the Project to
continue toward a year-end closing.
Agency staff has identified the following potential sources the Board may wish to consider reallocating for
the Gap Loan request. The potential option(s) below aim to leave funding in each program so that
reallocating funds to support the Project does not empty any one account.
Fund Program Amount
Available
Project Gap
Loan
Amount
Remaining
Primary Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds
$2,936,762 $1,500,000 $1,436,762
Housing Development Loan
Fund (HDLP)
Fall 2022 NOFA $7,000,000 $1,000,000 $6,000,000
Total for Project Gap Loan - - $4,000,000 -
The requested interest rate for the Gap Loan is 2%. Agency staff has negotiated this rate with Brinshore
based on Project financials and full repayment of the Gap Loan, with interest, within a 30-year timeframe
and cash flow repayment. The Gap Loan terms also match those of the previously awarded NOFA funds
allowing the Agency to combine the funds into one loan, reducing complication and allowing the Agency
to issue and manage one loan total for efficiency. For full terms and details of the Gap Loan, please see:
Attachment C: 1500 W. North Temple – Gap Loan Term Sheet.
If the Gap Loan is approved, total Agency participation in the Project would be $14,456,000. The initial
total development cost in August 2020 was ~$60 million and the Agency committed $6,456,000 in NOFA
funds as well as the $4,000,000 Seller’s Note for a total of $10,456,000 putting Agency participation at
17.5% of the total development cost. Currently, with the total development cost at ~$93 million, and the
Agency’s potential addition of the $4,000,000 Gap Loan, the Agency’s participation would be 15.5% of
the total development cost.
If the Board wishes to approve funding the Gap Loan, Agency staff will return to the Board with the
applicable budget amendment in October and the subsequent potential Gap Loan final approval in the
November Board meeting.
PROJECT OVERVIEW & PUBLIC BENEFITS:
The proposed Spark mixed-use Project will include 200 residential units including affordable workforce
and family-size housing, structured parking, a mid-block walkway that connects Cornell Street and 1460
West (to be publicly accessible and privately owned and maintained), a high level of concern for
architectural and urban design principles, transit-oriented design, maximized density, sustainable
construction and building design practices, as well meeting Davis Bacon fair wage requirements for
construction.
Timeline:
• Brinshore is currently finalizing the Project’s financing and is progressing towards a year-end
closing with construction anticipated to begin in Spring 2023 and Project completion in 2024. At
the latest, the Project must close by March 1, 2023 per LIHTC requirements, or it will forfeit the
~$42.5 million LIHTC allocation, making it no longer financially feasible.
Developer Experience:
• Brinshore is an Illinois-based developer founded in 1995 with a focus on strengthening
neighborhoods and a development track record of over 7,000 units over the last 27 years. Brinshore
is one of the largest developers of affordable housing in the United States and specializes in creating
authentic projects that encourage an active, healthy lifestyle and serve as a catalyst for other
development.
Housing Affordability:
• The Project has 200 units including 63 family-sized units that range from 20-80% AMI and two,
three, and four-bedroom units. Per the 2017 Board resolution, 50% of the units are affordable to
households at or below 60% AMI. Additionally, 50% of the units are affordable to households at
70-80% AMI per LIHTC standards, which are currently market rate rents for the North Temple
area.
• The unit mix allows the Project to generate as much LIHTC equity as possible, lowering the
financing gap as all 200 units are income and rent restricted. However, due to the naturally
occurring lower rents in the North Temple Area, the 70 and 80% restricted units are above current
market rate rents for the neighborhood. This allows the Project mix to have all restricted units to
maximize LIHTC equity, meet the Board’s goals that 50% of the units be in market rate range,
while also restricting the 70 and 80% units to ensure affordability over the long term as the North
Temple Project Area continues to grow.
Neighborhood Serving Commercial Space:
• As currently designed, there is a proposed ~4,000 square foot daycare facility which will serve
Spark residents and low-income members of the community at a sliding scale cost. There is also a
~5,000 square foot retail space and Brinshore is currently working with local organizations to lease
the commercial space, including reaching out to the Economic Development department to connect
with potential local tenants.
Structured Parking:
• The Project includes 100 structured parking spaces that are free to low-income residents per LIHTC
requirements and are designed to be safe, functional, and attractive for residents and visitors.
Mid-Block Walkway:
• The mid-block walkway that connects Cornell Street and 1460 West is consistent with the North
Temple Boulevard Plan and will be publicly accessible and privately owned and maintained.
Architecture, Sustainable Construction, and Building Design Practices:
• The Project incorporates a high level of concern for architectural and urban design principles
including a transit-oriented design and maximized density. It also incorporates sustainable
construction practices and building design including Enterprise Green Communities and ENERGY
STAR Multifamily New Construction, ~24 bicycle parking spaces, ~10 EV charging stations, as
well as Davis Bacon fair wages for construction.
ATTACHMENTS:
• Attachment A: Parcel Map
• Attachment B: 1500 W. North Temple - Seller’s Note Term Sheet & Resolution
• Attachment C: 1500 W. North Temple - Gap Loan Term Sheet
• Attachment D: Spark Project Conceptual Renderings
ATTACHMENT A: Parcel Location Maps
ATTACHMENT B: 1500 W. North Temple - Seller’s Note Term Sheet & Resolution
ATTACHMENT C: 1500 W. North Temple - Gap Loan Term Sheet
TERM SHEET
FOR LOAN TO BRINSHORE DEVELOPMENT, LLC
1500 W. North Temple
The terms described on this Term Sheet represent the terms for an RDA Loan and
together with the Seller’s Note, represent the RDA’s maximum contribution to the
financing of the Project. Following receipt of the senior lender and tax credit
investor final commitments to the Project, and final proformas for the Project, the
RDA and Borrower will verify and adjust the terms of the loan listed below
consistent with the respective requirements of the RDA.
LOAN TERMS
Borrower: Brinshore Development, LLC
Property: 1500 West North Temple
Amount: Not to exceed $10,456,000*
Sources of funds include:
- $2,500,000 the RDA Board of Directors set aside for the
Project as part of the 2018 Notice of Funding Availability
(NOFA) for affordable housing through the Housing
Development Loan Program (HDLP). The terms for the
$2,500,000 NOFA funding will match the terms shown
here.
- $3,956,000 the RDA Board of Directors set aside for the
Project as part of the 2019 Notice of Funding Availability
for affordable housing through the HDLP. The terms for the
$3,956,000 NOFA funding will match the terms shown
here.
- Up to $4,000,000 of Agency funding shall be classified as
gap financing and shall only be used if the Project has a
funding gap at the time of closing, after the Agency has
determined all other sources of primary and subordinate
financing have been maximized. This financing has not
formally been allocated by the Board.
*Please note this Project will utilize RDA funding both in
connection with this loan and in the form of a Seller’s Note
financing the Borrower’s acquisition of the Property. The full
RDA financing amount with the Seller’s Note included is not to
exceed $14,456,000.
Project Description: The overall project consists of the new construction of a mixed-
income, mixed-use project with approximately: 200 housing
units, ~100 parking spaces, ~24 bicycle parking spaces, a ~4,000
SF daycare, and approximately ~5,000 SF of neighborhood scale
commercial space. The estimated total project cost is
~$93,000,000. 100% of the 200 units will be deed restricted
affordable housing.
Affordability Restrictions: All units will be deed restricted for 50 years at 80% AMI or less.
A minimum of 50% of the units will be at 60% AMI or less.
Term: 30 years
Amortization: 30 years, cash flow repayment
Interest Rate: 2% Interest Rate
Interest shall accrue during construction, beginning upon the
first disbursement of funds. Accrued interest during construction
to be added to the loan balance.
Repayment Payments commence upon conversion of the senior construction
loan to permanent financing.
Repayment shall be based on available annual cash flow after
senior lender payments and any required tax credit investor fees.
The RDA will receive 40% of available cash flow and the
Developer will receive 60% of available cash flow until the
deferred developer fee is fully repaid. The RDA will have
discretion on how its share of cash flow is allocated towards
repayment of the RDA Loan and Seller’s Note, which will be
defined in the loan documents.
Once the deferred developer fee is fully repaid, the RDA will
receive 60% of available cash flow. The RDA will have
discretion on how its share of cash flow is allocated towards
repayment of the RDA Loan and Seller’s Note, which will be
defined in the loan documents.
A balloon payment of any outstanding balance shall be due upon
maturity.
Collateral: A mortgage lien on the Property that may be subordinated to the
senior lender but will be superior to other subordinate financing
sources.
The RDA’s two sources of funding for the Project, the RDA Loan
and Seller’s Note, will be in a shared second position.
Guarantors: Corporate guarantee from Brinshore Development, LLC
Deferred Fee: At the RDA’s sole discretion, Applicant will maximize deferred
developer fee and / or equity contributed as a source to fund the
Project. Deferred developer fee and / or equity will be at least
$3,000,000.
Disbursement: Loan proceeds shall be disbursed as determined in the loan
documents.
Fees: Closing costs and legal fees shall be paid by the Borrower
including, but not limited to, the cost of title search and
insurance, credit reports, and attorney fees. Fees will be payable
at loan closing.
Use of Funds: Funds shall be used for construction and development of 1500
W. North Temple, including, but not limited to: groundwork,
infrastructure, construction, site mitigation, and any similar uses.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
• Close on the purchase of the Property, meeting all the requirements of the Real
Estate Purchase Agreement.
• Secure sufficient sources of financing for the Project. Borrower will maximize
available conventional financing from senior lender, tax credit equity, and funding
from subordinate lenders. Borrower will provide evidence of seeking and
maximizing all available financing opportunities for the Project, including but not
limited to State Olene Walker Housing Trust Fund, Salt Lake County HOME and
Salt Lake City HOME funds.
• RDA approves final schedule of sources and uses and the project proforma.
• Execute loan documents (e.g. promissory notes, loan agreements, security
documents, and guarantees) as deemed necessary by the RDA and its legal
counsel.
• Record land use restriction agreements for affordable housing in the Project.
• Record easement for public access to the mid-block walkway connecting Cornell
Street and 1460 West.
• Receive all necessary approvals from the City, as further defined in the loan
agreement.
• Receive approval from the RDA and its legal counsel of all matters pertaining to
title, legality of the loan, and the legality, sufficiency, and the form and substance
of all documents that are deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the RDA for the Property.
• Such other terms as recommended by the RDA’s legal counsel and staff.
ATTACHMENT D: Spark Project Conceptual Renderings (Subject to Change)
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.
Available Budget $1,599,880
-Spark Allocation $1,500,000
Remaining Budget $99,880
Primary Housing –Property AcquisitionSpark Mixed-Use, Affordable Housing Project
Available Budget $2,936,762
-Spark Allocation $1,500,000
Remaining Budget $1,436,762
North Temple Strategic Intervention Funds
Housing Development Loan Program –Fall NOFA
Available Budget $7,000,000
-Spark Allocation $1,000,000
Remaining Budget $6,000,000
2018 NOFA $2,500,000
2019 NOFA $3,956,000
+ Seller Financing Note $4,000,000
Total Current Loan Amount $6,456,000
+ Primary Housing –Property Acquisition $1,500,000
Total Gap Loan Request $4,000,000
+ North Temple Strategic Intervention Funds $1,500,000
+ Housing Development Loan Program –Fall NOFA $1,000,000
New Project Total Budget $14,456,000
New Loan Amount $10,456,000
Budget Impact: Spark Mixed-Use, Affordable Housing Project in the North Temple Project Area
Available Budget $5,670,186
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $5,420,186
CIP Depot District Project Fund
(Station Center Infrastructure Funds)
Station Center Vision and Implementation Planning
Budget Impact: Station Center Vision and Implementation Planning in the Depot District Project Area
Current Budget $0
+ CIP Depot District Project Allocation $250,000
New Project Total Budget $500,000
+ Central Station Allocation $250,000
Available Budget $664,121
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $414,121
Central Station
Approximate Fund Balance $2,000,000
-RDA Personnel Budget $46,805
Approximate Remaining Fund Balance 1,953,195
Administration Fund BalanceRDA Personnel Budget
Budget Impact: Non-Represented Employee Compensation Study Adjustments
Current Budget $2,480,095
+ Fund Balance Allocation $46,805
New Budget $2,526,900
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 MEMO
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM:Allison Rowland
Budget & Policy Analyst
DATE:October 11, 2022
RE: INFORMATIONAL: ACCESSORY DWELLING UNIT FINANCING PROGRAM
Please see the following items related to the RDA transmittal dated September 23, 2022:
A. RDA Staff Policy Question
B. Council Staff Policy Questions
C. Additional information from RDA staff
A.RDA Staff Policy Question. RDA staff raised the following policy question related to their proposal for
an Accessory Dwelling Unit (ADU) Financing Program: Is the Board interested in deed-restricting
these ADUs to ensure affordability for low-income renters? They point out that doing so could
reduce the number of homeowners willing to build and rent ADUs. Allowing low- to moderate-income
homeowners who participate in the RDA’s program to rent their ADUs at market rates increases flexibility
and allows them to build generational wealth more easily. They also note that if the RDA chooses to expand
the ADU program outside of a project area—perhaps in high opportunity areas—ADUs built with RDA funds
would need to be deed-restricted for affordability.
B.Council Staff Policy Questions. The Board also may wish to consider the following additional policy
questions related to RDA staff’s proposal:
1. The current amount of RDA funds available for ADUs ($394,000) would cover about seven projects if
loans were sized at $50,000 each, or 15 at $25,000. The Board may wish to discuss in broad
terms whether those numbers and sizes for ADU construction loans would represent a
meaningful test of whether such a program would feasible, especially for low- and
middle-income homeowners. This is especially the case if RDA’s planned RFQ does not reveal
significant additional financing or cost-cutting possibilities.
Page | 2
2.How might a potential ADU financing project tie into other housing affordability
measures being considered as part of the Thriving in Place report, as well as the
upcoming Housing SLC plan?
C.Additional information from RDA staff. In response to Council staff questions, the RDA staff
provided additional information (in blue):
1. What is the timeline proposed for releasing the RFQ and receiving responses?
a. Staff is aiming to release the RFQ by the end of 2022 and is anticipating accepting responses for
30-45 days.
2. The transmittal mentions that launching an ADU program in the 9-Line Project Area by 2025 will
increase the portion of the County’s funds that the RDA receives. About how large would the increase be
in dollars per year?
a. Salt Lake County’s 9-Line Interlocal Agreement states that if the ADU program is launched
before the end of the 5th year of the 9-Line Project Area, the “Mitigation Payment [from the RDA
to the County] shall be reduced [from 50%] to an amount equal to 40%, thereby increasing the
Agency’s Share [from 50%] to 60%.”
b. Last year the County collected approx. $418k in 9-Line Project Area tax increment. A 10%
increase in RDA allotment would mean at least a $42k per year increase in RDA 9-Line Project
Area increment collection.
3. Would the Board be involved in the choice of any potential RDA partnerships for an ADU financing
program?
a. Staff plans to bring the proposed program to the Board for additional input and approval. Any
potential partnerships would also likely be brought to the Board for additional input, depending
on the structure.
4. Did the research on other cities help identify
a. Ways that any deed-restrictions might be efficiently tracked and enforced?
- Staff has looked into deed restriction monitoring and this will continue to be evaluated
as part of a proposed program to understand the potential workload and additional
staffing or management.
b. Ideas for how to target an ADU program specifically toward people of color?
- The RDA will continue to work with other departments to evaluate this and ensure that
the program is equitable and inclusive. The RDA anticipates providing all program
materials in Spanish and conduct grassroots-level outreach to 9-Line Project Area
residents (a large share of which are people of color; primarily non-white Latino),
informing them about the program and inviting them to apply.
c. Any useful indicators of program success (or failure) that could be adapted as metrics for a program
in Salt Lake City?
- The overall number of ADUs being built and RDA cost per ADU built are metrics the
RDA will be looking at to judge the success of a program.
ADU Financing Pilot Program
OCTOBER BOARD MEETING
“________ is currently the
biggest hurdle to ADU
construction we are facing”
-Local ADU builder
“Financing is currently the
biggest hurdle to ADU
construction we are facing”
-Local ADU builder
“Revise the accessory
dwelling unit ordinance
to expand its application
and develop measures
to promote its use.”
-Growing SLC, Goal 1.1.3
ADUs Encouraged in Housing Plan
“Salt Lake City should
expand…accessory dwelling
units…in the West Side.”
-West Side Master Plan
ADUs on the West Side
9-LINE PROJECT AREA
•$232k average assessed value
•$47,719 median household income
•8,279 sqft median lot size
•89% of residential land zoned R1
•4.1 average family size
•Historic Redlining
•County tax increment participation
9-LINE PROJECT AREA
9-LINE PROJECT AREA
Zoning restrictions
•Setbacks
•Max. ADU size
•Height limit
•Limited to single-family homes
•Conditional Use permit
Construction costs
•$100k -$250k
•15% y-o-y escalation since 2020
Financing options
•Cash-out refi, HELOC
CHALLENGES
•Held 12 stakeholder interviews
•Surveyed financing programs
around the country
•Studied ADU zoning code and
construction reports
•Studied 9-Line CRA Plan and
West Side Master Plan
•Organized citywide ADU Task
Force
•Drafted pilot project RFQ
•Participated in local and national
ADU-related discussions
EXPLORATION WORK
•Increase the supply of naturally
affordable rental housing
•Incrementally increase density in
low-density neighborhoods
•Provide low-to moderate-
income homeowners in formerly
redlined areas a wealth building
opportunity
•Increase neighborhood stability
and investment
PROGRAM GOALS
•Loans or grants
•Landlord training and tenant
screening
•Attached and detached ADUs
•Cost-cutting strategies
•Compliance monitoring
•Affordability (owners or
tenants)
PROGRAM PREFERENCES
•Rental affordability period
•Utility connection subsidy
•Connect with homeowners building ADUs near
9-Line; tailor program to their goals and needs
•Owner occupancy requirement
•Bulk purchase of ADUs for cost savings
RAC SUGGESTIONS
•RFQ development
•RFQ publication
•Partner selection
•Program development
•Program launch
NEXT STEPS
Should the RDA
target these loans
to low-income
homeowners,
low-income
renters, or both?
DISCUSSION ITEM Pros Cons
Homeowner
Target
Equitable wealth-
building
opportunity
More program
participants
Lower cost per
ADU
Market-rate rents
Renter Target Long-term
affordability
Displacement
mitigation
Fewer program
participants
More subsidy
required per ADU
2022 ADU Market Rents and SL County AMI
SqFt Low Rent Avg Rent High Rent
Studio 500 $ 700 $ 1,050 $ 1,400
Req. Income $ 28,000 $ 42,000 $ 56,000
1 Bed 650 $ 910 $ 1,365 $ 1,820
Req. Income $ 36,400 $ 54,600 $ 72,800
2 Bed 800 $ 1,120 $ 1,680 $ 2,240
Req. Income $ 44,800 $ 67,200 $ 89,600
Family Size AMI 80% 60% 40%
1 71,688 57,350 43,013 28,675
2 81,938 65,550 49,163 32,775
3 92,188 73,750 55,313 36,875
4 102,375 81,900 61,425 40,950
Rental rates come from observed listings on local classifieds ads
Salt Lake County AMI from the Department of Housing and Urban
Development
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Low Rent Avg Rent High Rent
Studio ADU Rent Affordability
40% AMI
60% AMI
80% AMI
40% AMI 60% AMI 80% AMI
1 Person $ 717 $ 1,075 $ 1,434
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Low Rent Avg Rent High Rent
1 Bedroom ADU Rent Affordability
40% AMI 60% AMI 80% AMI
2 People $ 819 $ 1,229 $ 1,639
40% AMI
60% AMI
80% AMI
$-
$500
$1,000
$1,500
$2,000
$2,500
Low Rent Avg Rent High Rent
2 Bedroom ADU Rent Affordability
40% AMI 60% AMI 80% AMI
3 People $ 922 $ 1,383 $ 1,844
40% AMI
60% AMI
80% AMI
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 E RIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: September 23, 2022
PREPARED BY: Austin Taylor , Project Manager
RE: Accessory Dwelling Unit Financing Program
REQUESTED ACTION: Briefing on RDA’s research and next steps in creating an accessory dwelling
unit financing program
POLICY ITEM: Creation of a new accessory dwelling unit financing program
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY
The Redevelopment Agency of Salt Lake City (RDA) is working to create a program to primarily help low-
to moderate-income homeowners finance accessory dwelling unit (ADU) construction. Accessory dwelling
unit construction has not yet happened at scale and throughout the city , partly due to cost barriers. The
RDA intends to publish a request for qualifications (RFQ) and work with community partners to provide
financing options with the goal of helping homeowners build ADUs and increase the supply of attainable
housing in low-density single-family neighborhoods. The initial focus of the program will be within the
RDA’s 9-Line Project Area.
BACKGROUND INFORMATION
Accessory Dwelling Units
Accessory dwelling units are one of many important tools to solving our region’s housing crisis. ADUs are
small rental housing units—attached or detached—located on the same parcel as the primary house. They
are typically rented and managed by the owner of the primary house who also lives on-site. ADUs are
flexible, allowing homeowners to earn rental income, downsize into the ADU, or provide intergenerational
housing. They are also typically less expensive to build than a new home or apartment unit (because land
cost is “free”) and are often rented below market rates—and perhaps even free to the owner’s friends or
family.
2
Salt Lake City’s latest housing plan, Growing SLC, calls for the City to encourage ADU construction:
Goal 1.1.3 - Revise the Accessory Dwelling Unit ordinance to expand its application and develop
measures to promote its use.
Launching the Program in the 9-Line Project Area
The RDA intends to launch a financing program to help low- to moderate-income homeowners pay for
ADU construction. The RDA has decided to launch a pilot program in the 9-Line Project Area primarily
because of its large amount of single-family housing stock, relatively high homeownership rates, and lack
of ADU construction to date. Launching an ADU financing program in the 9 -Line Project Area by 2025 is
a milestone within the Interlocal Agreement with the County authorizing the collection of tax increment
and will increase the portion of the County’s funds that the RDA receives.
The West Side Master Plan also calls for more ADUs in west-side neighborhoods:
“Salt Lake City should expand the geographic area where accessory dwelling units are permitted
to include the single-family districts in the Westside. Application of the accessory dwelling unit
ordinance in this community would provide opportunities for additional density and a wider variety
of housing choices without impacting the predominant development pattern.”
“Protect and encourage ongoing investment in existing low-density residential neighborhoods.”
Funding
The RDA has set aside $394,000 for the initial creation of an ADU financing program for the 9 -Line
Project Area.
ANALYSIS & ISSUES
Challenges
Salt Lake City legalized ADUs in single-family zones throughout the city in 2018. As of January 1, 2022,
only 30 ADUs have been built. This section highlights the barriers limiting ADU construction.
Challenge #1: Zoning Restrictions
• Though Salt Lake City has some of the most liberal ADU zoning policies in the state, there are still
a few codes that make ADU construction challenging for many homeowners such as height limits,
setbacks, and maximum unit size.1
• In a series of 12 interviews with builders, homeowners, and architects who have worked on ADU
projects, many people noted zoning restrictions as difficult to comply with, especially on smaller
lots.
• The Planning Division is currently working on a set of zoning code changes that will expand ADU
construction possibilities. The proposed changes address every issue that RDA staff heard in its
series of community interviews.2
1 https://codelibrary.amlegal.com/codes/saltlakecityut/latest/saltlakecity_ut/0 -0-0-68737
2 https://www.slc.gov/planning/2022/05/13/accessory -dwelling-unit-code-changes/
3
Challenge #2: Construction Costs
• Construction costs have escalated 15% per year from July 2020 to July 2022, much faster than the
standard 3% escalation rate between January 2010 and January 2020 .3
• RDA staff found that Salt Lake City homeowners are paying between $100,000 and $250,000 to
build a detached ADU on their lot.
• Homeowners incur many unexpected costs during ADU construction, especially in utility and
sitework.
Challenge #3: Limited Financing Options
• Since lenders have not traditionally seen ADUs as a separate dwelling unit, homeowners have not
been able to borrow against the ADU’s potential rental income as inve stors are able to do with
multifamily investment properties.
• Through its interview series, RDA staff found that most homeowners are primarily paying for ADU
construction with liquid assets such as cash savings or by selling securities such as stocks and
bonds. Others are using home equity financing such as a home equity line of credit or a cash out
refinance.
• A lack of financing options has led to inequitable ADU construction. The Planning Division’s 2021
ADU report shows that homeowners in single-family neighborhoods east of I-15 are building
ADUs at a higher rate than homeowners west of I -15, despite having similar lot sizes and zoning
restrictions.4
Program Exploration Work
RDA staff has completed the following tasks to determine the challenges and opportunities regarding
ADUs in Salt Lake City:
1. Held a series of 12 interviews with local homeowners, architects, builders, policy experts, and
consultants who are working on ADU projects
2. Conducted a survey of ADU financing programs throughout the country (see Attachment D)
3. Studied Salt Lake City’s ADU zoning code and annual ADU reports (see Attachment B)
4. Examined Salt Lake City’s RDA 9-Line Community Reinvestment Area Plan and West Side
Master Plan
5. Attended local and national discussions to learn about ADU design, financing, policy, and trends
6. Researched available ADU financing products, including the home equity line of credit, cash out
refinance, and construction loan and refinance
7. Organized the City’s ADU Task Force which includes staff from the RDA and Community and
Neighborhoods’ Housing Stability, Building Services, and Planning divisions as well as the Public
Utilities Department to work collaboratively on ADU issues including zoning, permitting, and
financing
8. Drafted and continue to work on an RFQ to find potential program partners and structures to carry
out an impactful ADU financing program
3 https://fred.stlouisfed.org/series/WPU801
4 http://www.slcdocs.com/Planning/Reports/2021/ADU%202021%20Report.pdf/
4
RFQ Development
After completing the program exploration listed above, RDA staff decided that the most appropriate next
step would be to develop an RFQ to solicit proposals for a potential ADU program . Though the RDA has
money set aside and is able to run its own ADU financing program , RFQ submissions may show us that
there are other program ideas or partners that can help the RDA stretch its money and create the most
impact possible.
REDEVELOPMENT ADVISORY COMMITTEE MEETING NOTES
Staff brought this item to the Redevelopment Advisory Committee at their September 7 meeting for
feedback. Committee members shared the following ideas:
• The RDA offers inexpensive financing and flexible terms, it should require at least a short period of
rental affordability in exchange for financing
• The RDA should only loan on ADUs that will be associated with an owner -occupied house and
definitely not finance ADU construction for short -term rentals
• The RDA should look at partnering with a manufactured ADU builder that may be able to offer
discounted pricing for bulk purchases
• Staff should talk with homeowners who are building ADUs in Poplar Grove and Glendale
neighborhoods to see what they intend to do with the ADU and how they are financing the
construction. This can help the RDA tailor the pilot program to 9 -Line Project Area neighborhoods.
• Staff should explore opportunities to have utility connection fees waived or subsidized for ADU
construction
BOARD DISCUSSION ITEMS
Deed Restricted Affordability
The RDA is currently focused on creating a program to help low- to moderate-income homeowners build
wealth and housing supply through ADUs. The RDA may also choose to restrict the rent al rates on ADUs
built through its program to ensure affordability. Is the Board interested in deed restricting these ADUs
to ensure affordability for low-income renters?
Though it would ensure affordability for low -income renters, requiring rental rate restrictions could reduce
the number of homeowners willing to build and rent ADUs through the RDA’s program. Allowing low- to
moderate-income homeowners who participate in the RDA’s program to rent their ADUs at market rates
increases flexibility and allows them to more easily build generational wealth.
Offering ADU construction and mortgage loans to low- to moderate-income homeowners without rental
rate restrictions is in compliance with state law. State law 17C-1-411 (1)(a) states that the RDA may spend
Secondary Housing funds (which are used to fund the ADU program thus far) on market-rate housing
construction within a project area. However, if the RDA chooses to expand the ADU program outside of a
project area—perhaps in high opportunity areas—ADUs built with RDA funds will need to be deed
restricted for affordability.
5
NEXT STEPS
Board Input
RDA staff will seek Board members’ input to understand their goals for the ADU program.
RFQ Publication and Review
RDA staff will incorporate Committee and Board members’ ideas into the RFQ .
RDA staff, with input from the City’s ADU Task Force, will review RFQ submissions and may select one
or more organizations to partner with to create an ADU financing program . The RDA may run the program
alone if it does not make sense to partner.
ADU Financing Program Proposal
RDA staff, with input from the City’s ADU Task Force, will work alone or with partner organization(s) to
design an ADU financing program .
Board Approval
RDA staff will bring the ADU financing program proposal to the Board for final approval before program
launch.
Program Launch
RDA staff will launch the ADU financing program, providing loans to help low - to moderate-income
homeowners build and rent ADUs.
PREVIOUS BOARD ACTION:
The Board appropriated $394,000 in fiscal year 2022 budget to fund an ADU financing program.
ATTACHMENTS
Attachment A: 9-Line Project Area Map and Relevant Data
Attachment B: Map of Permitted ADUs as of January 2022 and Zoning Map
Attachment C: Observed 2022 Advertised ADU Rents and Affordability
Attachment D: ADU Program Examples
6
ATTACHMENT A
9-Line Project Area Map and Relevant Data
Relevant Data:
• $232k average assessed house value (2022)
• $47,719 median household income (2020)
• Historic redlining
• 8,279 sqft median lot size (2022)
• 89% of residential land zoned R1 (2014)
• 4.1 average family size (2014]
7
ATTACHMENT B
Map of Permitted ADUs as of January 2022 and Zoning Map
8
Areas shown in yellow are zoned for single-family housing and allow ADUs. Though there is a significant
amount of single family-zoned land in the 9-Line project area, it is not seeing as much ADU construction as
single family-zoned land east of State Street.
9
ATTACHMENT C
Observed 2022 Advertised ADU Rents and Affordability
The following table compares rental rates observed on ADU rental ads on KSL Classifieds and Facebook
Marketplace, both popular places for small -scale landlords to advertise their offerings.
The table also indicates the minimum income a household must make to afford the associated monthly rent
at 1/3 of their income.
SqFt Low Rent Avg Rent High Rent
Studio 500 $ 700 $ 1,050 $ 1,400
Renter’s Income
$ 28,000 $ 42,000 $ 56,000
1 Bed 650 $ 910 $ 1,365 $ 1,820
Renter’s Income
$ 36,400 $ 54,600 $ 72,800
2 Bed 800 $ 1,120 $ 1,680 $ 2,240
Renter’s Income
$ 44,800 $ 67,200 $ 89,600
The following table lists current Salt Lake County area median income levels.
Family Size AMI 80% 60% 40%
1 $71,688 $57,350 $43,013 $28,675
2 $81,938 $65,550 $49,163 $32,775
3 $92,188 $73,750 $55,313 $36,875
4 $102,375 $81,900 $61,425 $40,950
10
ATTACHMENT D
ADU Program Examples
Organization Offerings Requirements Program Link
City of
Boston, MA
Interest-free gap financing
up to $50k
Internal ADU only https://www.boston.gov/departments
/housing/addition-dwelling-
units/adu-program
County of
Los Angeles,
CA
$75k grants ADU must be rented
to formerly homeless
https://planning.lacounty.gov/second
unitpilot
City of Napa,
CA
$50k forgivable loan ADU must be rented
at approx. 55% AMI
https://www.cityofnapa.org/747/Juni
or -Unit-Initiative-Program
City of
Pasadena, CA
$150k 3yr construction
loan at 1%
Must be rented to
Section 8 tenant;
must be repaid within
3 years
https://www.cityofpasadena.net/hous
ing/second-unit-adu-program/
City of
Madison, WI
$130k 15yr second
mortgage loan at 2%
None https://www.cityofmadison.com/dpc
ed/economicdevelopment/adu-loan-
financing/3809/
Eight Village
Backyard
ATL
ADU owned and operated
by Eight Village;
homeowner may purchase
ADU at any time
Homeowner allows
ADU on their lot
through ground lease
https://www.backyardatl.com/
Keys to
Equity
(Oakland,
CA)
Technical assistance:
design, permitting,
financing construction, and
property management
None, though the
program primarily
focuses on black
homeowners
https://keystoequity.org/
La Mas (Los
Angeles, CA)
Technical assistance:
design, permitting,
financing, construction,
and property management
Homeowner must
rent to Section 8
tenant for 5 years
https://static1.squarespace.com/static
/5840c42cf5e2310b848ee53a/t/5be4
c7bcb8a0455819808583/154171999
7027/LA-
Ma%CC%81s_BackyardHomes_On
ePager_09.24.18+(1).pdf
Symbium Software that allows
homeowners to “fit” pre-
approved ADU designs on
their lot
None https://symbium.com/
Dweller Prefabricated ADUs owned
and operated by Dweller
Homeowner gives
free ground lease and
receives 25% of rent
https://www.dweller.com/
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: September 23, 2022
PREPARED BY: Danny Walz, Director
Allison Parks, Senior City Attorney
RE: Amendments to Eccles Theater Related Interlocal Agreements
REQUESTED ACTION: Adopt two resolutions approving changes to the two separate interlocal
agreements
POLICY ITEM: Amending Interlocal Agreements
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: As part of the joint operation of the Eccles Theater, the RDA, Salt Lake City,
and Salt Lake County entered two separate interlocal agreements in 2013. The first interlocal agreement
creates and sets forth the formation and obligations of the interlocal entity called the Utah Performing Arts
Center Agency (UPACA). The second interlocal agreement, entitled the “Utah Performing Arts Center
Operating Agreement,” details the terms of the management and operation of the Eccles Theater. When
both interlocal agreements were initially executed, the parties agreed that the UPACA entity would maintain
its own policy of insurance for the theater. However, the parties have since learned that maintaining
insurance through the County will generate significant savings for the parties. To realize these costs savings,
both interlocal agreements need to be amended.
REQUESTED ACTION: The UPACA Board of Directors voted and approved the amendments to both
interlocal agreements on July 13, 2022. In accordance with the terms of the interlocal agreements and the
Interlocal Cooperation Act, the RDA Board of Directors may consider approving these proposed
amendments through resolutions. The resolutions attached to this memo include the proposed amended
interlocal agreements. Similar action will need to be taken by the Salt Lake City Council on behalf of the
City.
ATTACHMENTS:
A. Resolution approving an amendment to the Operating Agreement
B. Resolution approving an amendment to the interlocal agreement establishing UPACA
Salt Lake County Contract No. SG13517C
District Attorney No. 22CIV000094
THIRD AMENDMENT
TO
OPERATING AGREEMENT
UTAH PERFORMING ARTS CENTER
THIS THIRD AMENDMENT TO OPERATING AGREEMENT ("Third Amendment") is
entered into as of ____ ~ 2022 ("Effective Date"), by and between the Utah Performing Arts
Center Agency, an interlocal entity and political subdivision of the State of Utah ("Owner"), and Salt
Lake County, a body corporate and politic of the state of Utah ("County", and/or "Operator"). Owner
and Operator may be referred to individually as a "Party", or collectively as the "Parties".
RECITALS
A. The Parties executed that certain Operating Agreement Utah Performing Arts Center
("Operating Agreement"), with an effective date of March 19, 2013, which Operating Agreement is
identified as Salt Lake County Contract No. SG13517C and sets forth certain requirements for
Operator to operate the George S. and Dolores Dore Eccles Theater, formerly known as the Utah
Performing Arts Center ("Theater"), beginning on March 19, 2013 and ending on December 31, 2041.
B. When the Operating Agreement was executed, the Parties agreed UP AC maintain its
own policy of insurance, however the parties have since learned that maintaining insurance through
the County will generate significant savings for those involved.
C. Pursuant to Section 8.8 of the Operating Agreement, the Parties now wish to amend the
Operating Agreement to revise the UP AC Pre-Opening Services to more reflect the Parties wishes.
AGREEMENT
THEREFORE, for good and valuable consideration, the Parties agree as follows:
1. The Parties agree 2.24 Expense. of the Operating Agreement will be amended to
include property, casualty and general liability insurance, risk management and claims administration
obtained through the County and treat all associated costs and claims as an operating expense. In
addition, the Parties agree that legal fees associated with, general counsel duties, prosecution and
defense of actions in which UP ACA is a party, whether filed or not shall be included in the definition
of Expense.
2. Further, Operator will use County risk management as its sole provider in handling
claims that may arise from operations and property damage. County will bill Operator for the costs
of such services on a full reimbursement basis and for the actual costs of any claims paid by County
on UPACA's behalf.
1
3. Amendment. All Parts, Paragraphs, Attachments and other provisions of the
Agreement and any prior amendments thereof not specifically modified by this amendment shall be
the same and remain in full force and effect.
[SIGNATURE PAGES FOLLOW]
2
IN WITNESS WHEREOF, Owner, Operator, City and RDA have executed this Third Amendment to
be effective as of the Effective Date.
Reviewed as to form and legality
Digitally signed by Craig J.
Craig J. Wangsgard Wangsgard
Date: 2022.06.02 15:57:35 -06'00'
Deputy District Attorney
OPERATOR:
SALT LAKE COUNTY, a body corporate and politic
of the State of Utah
By: _____________ _
Its: Mayor or Designee
Print Name: ---------------
County, by resolution of its County Council, a copy of which is attached hereto, caused this Third
Amendment to Operating Agreement be signed by the Mayor, or his designee.
3
IN WITNESS WHEREOF , Owner, Operator, City and RDA have executed this Third
Amendment to be effective as of the Effective Date.
Approved as to form:
OWNER:
UTAH PERFORMING ARTS CENTER AGENCY, an
interlocal agency of the State of Utah
By : Darrin Casper (Jul 15, 202211:03 MDT)
Its: ----------------Date : -------
Owner, by resolution duly adopted by its Board, a copy of which is attached hereto , caused this
Agreement to be signed by its _________ _
4
IN WITNESS WHEREOF , Owner, Operator, City and RDA have executed this Third
Amendment to be effective as of the Effective Date.
ATTEST:
City Recorder
Approved as to legal form:
Salt Lake City Attorney's Office
6~~
Katherine Lewis (Jul 8, 202213:09 MDT)
------~ Senior City Attorney
CITY:
SALT LAKE CITY CORPORATION, a Utah
municipal corporation
Erin J. Mendenhall
Mayor
City , by resolution duly adopted by its City Council , a copy of which is attached hereto , caused this
Third Amendment to Operating Agreement to be signed by its Mayor and attested by its City Recorder.
5
IN WITNESS WHEREOF, Owner, Operator, City and RDA have executed this Third
Amendment to be effective as of the Effective Date.
Approved as to legal form:
Salt Lake City Attorney's Office
~
Allison Parks {Jul 8, 202214:43 MDT)
_______ , Senior City Attorney
RDA:
REDEVELOPMENT AGENCY OF
SALT LAKE CITY, a public agency
Erin J. Mendenhall
Executive Director
RDA, by resolution duly adopted by its Board, a copy of which is attached hereto, caused this
Agreement to be signed by its Executive Director, and approved as to legal form by its legal counsel.
H:\share\CWANGSGARD\Arts & Culture\UPAC\Operating Agreement\Amendment 3 (Insurance)\6.2.22 Third Amendment to UPACA Ops
Agreement.docx
6
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Third Amendment to UPAC Operating Agreement
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY APPROVING THE THIRD AMENDMENT TO THE
OPERATING AGREEMENT FOR THE UTAH PERFORMING ARTS CENTER
WHEREAS, the Operating Agreement for the Utah Performing Arts Center
(“UPAC”) was executed between the Utah Performing Arts Center Agency, an interlocal
entity and political subdivision of the State of Utah, Salt Lake City Corporation, a Utah
municipal corporation, the Redevelopment Agency of Salt Lake City, a public entity, and
Salt Lake County, a body corporate and politic of the state of Utah (“County”), with an
effective date of March 19, 2013, as amended from time to time; and
WHEREAS, when the Operating Agreement was initially executed, the parties
agreed UPAC would maintain its own policy of insurance, however, the parties have since
learned that maintaining insurance through the County will generate significant savings for
the parties; and
WHEREAS, pursuant to Section 8.8 of the Operating Agreement, the parties desire
to enter into the third amendment to the Operating Agreement (“Third Amendment”) to
expand the definition of “Expense” and clarify that the County as the Operator will use
County risk management to handle claims that arise from operations and property damage.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the
Redevelopment Agency of Salt Lake City, that the Third Amendment to the Operating
Agreement, in the form attached to this resolution as Exhibit A, is hereby approved.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of , 2022.
Ana Valdemoros, Chair
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Attest:
Salt Lake City Recorder’s Office
EXHIBIT A TO RESOLUTION
[Attach Third Amendment to Operating Agreement]
Salt Lake County Contract No. SG13517C
District Attorney No. 22CIV000539
AMENDMENTl
TO
INTERLOCAL COOPERATION AGREEMENT
(UTAH PERFORMING ARTS CENTER)
THIS AMENDMENT TO OWNERSHIP AGREEMENT ("Amendment") is entered into
as of ____ _., 2022 ("Effective Date"), by and among Salt Lake City Corporation, a Utah
municipal corporation ("City"), the Redevelopment Agency of Salt Lake City, a public agency
("RDA"), and Salt Lake County, a body corporate and politic and a political subdivision of the
State of Utah ("County"). County, City, and RDA are each referred to individually as a "Member"
or a"~" and, collectively, as the "Members" or the "Parties".
RECITALS
A. The Parties executed that certain Interlocal Agreement ("Agreement"), with an
effective date of October 30, 2013, which Agreement is identified as Salt Lake County Contract
No. SG 13517C, and sets forth certain requirements for the formation of an interlocal entity called
UP AC which would facilitate the construction and ownership of the George S. and Dolores Dore
Eccles Theater, formerly known as the Utah Performing Arts Center ("Theater"), beginning on
October 30, 2013 and ending on December 31, 2041.
B. When the Agreement was executed, the Parties agreed UP AC maintain its own
policy of insurance, however the parties have since learned that maintaining insurance through the
County will generate significant savings for those involved.
C. Pursuant to Section 15.(f) of the Agreement, the Parties now wish to amend the
Agreement to revise the Agreement to more reflect the Parties wishes.
AGREEMENT
THEREFORE, for good and valuable consideration, the Parties agree as follows:
1. The Parties agree paragraph 8.(d) is deleted.
2. All Parts, Paragraphs, Attachments and other provisions of the Agreement and any
prior amendments thereof not specifically modified by this amendment shall be the same and
remain in full force and effect.
[SIGNATURE PAGES FOLLOW]
IN WITNESS WHEREOF , the Members have executed this Interlocal Cooperation
Agreement to be effective as of the Effective Date .
ATTEST:
________ , City Recorder
A~roved as to legal form:
/{"~~
Katherine Lewis (Jul 8, 2022 13:09 MDT)
_______ , Senior City Attorney
SALT LAKE CITY CORPORATION, a Utah
municipal corporation
By: ________________ _
Mayor or Designee
Salt Lake City , by resolution duly adopted by its City Council , a copy of which is attached
hereto, caused this Agreement to be signed by its Mayor and attested by its City Recorder.
2
IN WITNESS WHEREOF, the Members have executed this Interlocal Cooperation
Agreement to be effective as of the Effective Date.
Approved as to legal form for RDA:
~
Allison Parks {Jul 8, 202214:43 MDT)
_______ , Senior City Attorney
REDEVELOPMENT AGENCY OF
SALT LAKE CITY, a public agency
By: ------------
Name: ----------
Its: Its Chief Administrative Officer
By:------------
Name: ----------Its: Executive Director
RDA, by resolution duly adopted by its Board, a copy of which is attached hereto, caused this
Agreement to be signed by its Chief Administrative Officer and its Executive Director, and
approved as to legal form by its legal counsel.
3
IN WITNESS WHEREOF, the Members have executed this Interlocal Cooperation
Agreement to be effective as of the Effective Date.
Reviewed as to Form and Legality
Craig J. DigitallysignedbyCraigJ.
Wangsgard Wangsgard Date:2022.06.0308:58:01-06'00'
Deputy District Attorney
SALT LAKE COUNTY, a body corporate and
politic of the state of Utah
By: ____________ _
Its: ------------------Print Name: --------------
County, by resolution of its County Council, a copy of which is attached hereto, caused this
Agreement to be signed by the Mayor, or her designee.
H:\s hare\CW ANGSGARD\Arts & Culture\UP AC \Owners Agreement\Amendment l \Amendment to UPACA Owners
Agreement.docx
4
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
First Amendment to the Interlocal Cooperation Agreement
(Utah Performing Arts Center)
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY APPROVING THE FIRST AMENDMENT TO THE
INTERLOCAL COOPERATION AGREEMENT (UTAH PERFORMING ARTS
CENTER)
WHEREAS, the Interlocal Cooperation Agreement (“Interlocal Agreement”)
setting forth the requirements for the formation and obligations of a certain interlocal entity
called the Utah Performing Arts Center Agency (“UPACA”) was executed between Salt
Lake City Corporation, a Utah municipal corporation, the Redevelopment Agency of Salt
Lake City, a public entity, and Salt Lake County, a body corporate and politic of the state
of Utah (“County”), with an effective date of October 30, 2013; and
WHEREAS, when the Interlocal Agreement was initially executed, the parties
agreed UPACA would maintain its own policy of insurance, however, the parties have
since learned that maintaining insurance through the County will generate significant
savings for the parties; and
WHEREAS, pursuant to Section 15(f) of the Interlocal Agreement, the parties
desire to enter into the first amendment to the Interlocal Agreement (“First Amendment”)
to remove UPACA’s obligations regarding maintaining certain insurance.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the
Redevelopment Agency of Salt Lake City, that the First Amendment to the Interlocal
Agreement, in the form attached to this resolution as Exhibit A, is hereby approved.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of , 2022.
Ana Valdemoros, Chair
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Attest:
Salt Lake City Recorder’s Office
EXHIBIT A TO RESOLUTION
[Attach First Amendment to Interlocal Agreement]
•Eccles Theater Vision & Mission
•Structure & Operations Overview
•Financial Reports and Program Overview
•Building
•Site
•Arts for All
•What’s Next at the Eccles
Eccles
Theater
Vision &
Mission
Vision
Extraordinary Experiences for Everyone
Mission
The George S. and Dolores Dore Eccles Theater is at the leading edge, setting the “gold standard” for live theatrical performing arts experiences. The Eccles is recognized and loved regionally and nationally as a destination and an experience in and of itself. Community loyalty is fostered to run deep and true as the Eccles Theater becomes known as the place with offerings that include something for everyone.
Eccles
Theater
Operating
Units
BUILDING
•Operations supported through earned revenue
•Net income distributed to owners
•Delta Performance Hall & Grand Lobby
•Miller Lounge
SITE
•Operations supported through earned revenue and
support from Salt Lake City RDA
•Regent Street Black Box
•McCarthey Plaza
•O.C. Tanner Lounge
•Grand Lobby
ARTS FOR ALL
•Funded through dedicated $0.50 fee on all tickets to Delta
Hall events
•Distributes tickets to City and County residents that would
not otherwise be able to attend events at Eccles Theater
ECCLES BUILDING OPERATING BUDGET REPORT (UNAUDITED)*
Percent of Year Elapsed:67%
2021 Actual 2022 Adjusted
Budget
2022 Actual as of
8/31/2022**
2022 Actual ‐
Budget
2022 %Budget
Realized
2023 Proposed
Budget
2023 Request vs
2022 Adopted
Federal Operating Grants 4,139,018 ‐‐‐0%‐‐
Broadway at the Eccles Profit Share 520,881 1,446,175 1,301,400 (144,775)90%1,026,220 (419,955)
LIVE!at the Eccles Profit Share 226,147 418,448 307,229 (111,219)73%358,448 (60,000)
Sponsorships &Memberships 83,603 151,000 153,667 2,667 102%162,045 11,045
Facility &Service Ticket Fees 1,827,349 2,061,205 1,485,100 (576,105)72%2,564,196 502,991
Cleaning,Front of House &Equip Rental 11,244 92,010 30,551 (61,460)33%214,767 122,757
Local Contracts 53,056 88,094 ‐(88,094)0%50,000 (38,094)
Rent,Merch and Catering 684,017 1,006,674 778,324 (228,350)77%1,088,798 82,124
Concessions 90,138 173,813 117,450 (56,363)68%150,000 (23,813)
Misc Revenue 15,063 15,000 11,897 (3,103)79%15,000 ‐
Interest Revenue 31,905 125,000 51,971 (73,029)42%100,000 (25,000)
Total Revenue 7,682,422 5,577,419 4,237,589 (1,339,830)76%5,729,474 152,055
Salary,Wages &Benefits 1,777,625 2,495,231 1,395,184 (1,100,047)56%2,621,434 126,203
Budgeted Personnel Underexpend ‐‐‐0%(152,667)(152,667)
Building Maintenance,Cleaning &Operations 338,292 876,878 336,943 (539,935)38%858,878 (18,000)
Subscriptions,Memberships &Training 7,902 15,149 4,246 (10,903)28%15,149 ‐
Printing &Advertising 10,358 109,363 44,795 (64,568)41%109,363 ‐
Supplies,Software &Equipment Purchase 62,392 194,381 74,892 (119,489)39%152,181 (42,200)
Credit Card Processing Fees 266,074 410,301 164,420 (245,881)40%377,801 (32,500)
Equipment &Software Maintenance 8,204 18,200 2,735 (15,465)15%18,200 ‐
Transportation Expenses ‐50,037 20,879 (29,158)0%20,037 (30,000)
Utilities 263,207 328,069 198,722 (129,347)61%326,729 (1,340)
Professional Services &Contract Labor 13,918 50,000 19,953 (30,047)40%55,905 5,905
Centralized Service 449,131 425,600 283,733 (141,867)67%451,302 25,702
Insurance 90,453 2,920 2,078 (842)71%2,920 ‐
Equipment Replacement Funds 13,512 150,000 93,740 (56,260)62%150,000 ‐
Capital Asset Purchases from Operations ‐45,000 ‐(45,000)0%90,000 45,000
Total Expenses 3,301,068 5,171,129 2,642,320 (2,528,809)51%5,097,232 (73,897)
Revenue Less Expense,Net Income $4,381,354 $406,290 $1,595,269 $1,188,979 393%$632,242 $225,952
*Operating Results do not include capital contribution revenue for transfer of building assets,depreciation expense,or long‐term payroll expense.
**Financial information is presented on a budget year basis and includes revenues &expenses paid,accrued,or encumbered against the applicable budgetyearbutdoesnotreflectexpensespaidagainstprioryearencumbrances.
Distributing PPE kits & thermometers to local restaurants
Installing Regent Street Black Box seat risers
ECCLES SITE OPERATING BUDGET REPORT
Percent of Year Elapsed:67%
2021 Actual 2022 Adjusted
Budget
2022 Actual as of
8/31/2022**
2022 Actual ‐
Budget
2022 %Budget
Realized
2023 Proposed
Budget
2023 Request vs
2022 Adopted
Facility &Service Ticket Fees 7,858 18,463 9,613 (8,850)52%28,849 10,386
Cleaning,Front of House &Equip Rental 7,415 18,672 9,809 (8,863)53%58,662 39,990
Local Contracts 9,445 3,500 5,000 1,500 143%3,500 ‐
Rent,Merch and Catering 6,325 82,447 10,005 (72,442)12%83,803 1,356
Restaurant Rent &Commissions ‐‐‐‐0%‐‐
Concessions 2,383 1,000 1,035 35 103%1,000 ‐
Federal CARES Act Reimbursements ‐‐‐‐0%‐‐
Insurance Recoveries 16,414 (1,438)‐1,438 0%‐1,438
Total Revenue 49,840 122,644 35,462 (87,182)29%175,814 53,170
Salary and Wages 145,894 277,701 121,082 (156,619)44%281,929 4,228
Building Maintenance &Operations 45,493 70,485 23,133 (47,352)33%70,485 ‐
Subscriptions,Memberships &Training 21 ‐‐‐0%‐‐
Printing &Advertising 4,571 16,500 2,383 (14,117)14%41,500 25,000
Supplies &Equipment Purchase 17,989 9,765 6,225 (3,540)64%9,765 ‐
Credit Card Processing Fees 696 2,000 692 (1,308)35%2,000 ‐
Equipment Maintenance 1,131 6,500 ‐(6,500)0%6,500 ‐
Utilities 72,207 76,230 55,518 (20,712)73%76,230 ‐
Professional Services &Contract Labor 4,260 2,000 7,480 5,480 374%6,635 4,635
Centralized Service 107,295 105,092 70,061 (35,031)67%106,455 1,363
Insurance 30,151 973 693 (280)71%973 ‐
Equipment Replacement Funds 10,339 50,000 13,346 (36,654)27%50,000 ‐
Capital Asset Purchases from Operations ‐35,000 ‐(35,000)0%‐(35,000)
Total Expenses 440,047 652,246 300,613 (351,633)46%652,472 226
Revenue Less Expense,Operating Subsidy $(390,207)$(529,602)$(265,151)$264,451 50%$(476,658)$52,944
*Financial information is presented on a budget year basis and includes revenues &expenses paid,accrued,or encumbered against the applicable
budget year but does not reflect expenses paid against prior year encumbrances.
Holiday Art Installation
by Nelson Hansen and Sophia Malik
Imagine by Tracy O’Very Covey
Salt Lake City Public Art Collection
Art in Public Spaces
Salt Lake County Visual Art Collection
2021 Actual 2022 Adjusted
Budget
2022 Actual as of
8/31/2022**
2022 Actual ‐
Budget
2022 % Budget
Realized
2023 Proposed
Budget
2023 Request
vs 2022
Adopted
Arts for All Fee 98,907 129,039 100,175 (28,864) 78%132,102 3,063
Total Revenue 98,907 129,039 100,175 (28,864) 78%132,102 3,063
Salary and Wages 4,037 21,530 20,117 (1,413) 93%71,728 50,198
Subscriptions, Memberships & Training 20 20 0%‐
Printing & Advertising ‐ ‐ ‐ 100%3,000 3,000
Supplies & Equipment Purchase ‐ 3,600 ‐ (3,600) 0%3,600 ‐
Transportation Expenses ‐ ‐ 22 22 0%‐ ‐
Utilities 264 ‐ 176 176 0%‐ ‐
Arts for All Expense 48,703 171,025 61,773 (109,252) 36%100,000 (71,025)
Total Expenses 53,004 196,155 82,108 (114,047) 42%178,328 (17,827)
Revenue Less Expense 45,903 (67,116) 18,067 85,183 ‐27%(46,226) 20,890
Model Reference 59,000
Percent of Year Elapsed: 67%
ARTS FOR ALL OPERATING BUDGET REPORT
Year # Shows Tickets Purchased Tickets Used Utilization Rate
2017-18 6 1,400 611 43%
2018-19 7 2,250 1,770 79%
2021 11 658 483 19%
2022 (Jan-Sept)16 1,305 933 71%
TOTAL 40 5,613 3,797 67%
Organizations
SLCo Middle & High Schools
Alzheimer’s Association
Asian Association of Utah
Clark Planetarium
People Helping People
PRIDE Center
Rise Up School of Dance
SL County Aging & Adult Services
Seniors Out and Proud
ShareTix
South Valley Services
The Other Side Academy (TOSA)
Utah Refugee Services
HUGE thank you for the tickets to RIVERDANCE
yesterday. I know the students really, really enjoyed
it. They were coming back and trying to imitate the
dances they saw! I just wanted to thank you for your
continued support in helping us be able to attend
these cool events and experience sobriety in a
whole new light, you Rock!
Clay, TOSA
What’s
Next at
the
Eccles?
Committed to Broad and Diverse Programming
•Popular programming for Hispanic and LatinX communities
-Upcoming, Lila Downs October 28th -Delta Hall
•Continued commitment to socially relevant Broadway
-To Kill a Mockingbird, The Bands Visit, Hamilton, Hadestown
Targeted Community Engagement Efforts
•Salt Lake Speaks & Salt Lake Beats 2023
•Lights On! At the Eccles
-Upcoming, Unveiling Lenka Konopasek’s “Warm Embrace” –
November 21, 2022
•Behind the Scenes VIP Venue Tours
•Continue to broaden Arts for All outreach & work to include
transportation
Supporting the Theatrical Production profession
•ETTTEO, Eccles Theater Technical Educational Outreach tied
to touring Broadway load-in days, local High School &
University Students –observation & engagement opportunity
•Technical Director Internships through the Arts & Culture
Internship Program –real world experience in Technical
Theater
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: September 23, 2022
PREPARED BY: Danny Walz
RE: Eccles Theater Annual Report Presentation
REQUESTED ACTION: Presentation on Annual Report and activities of the Eccles Theater
POLICY ITEM: Not applicable
BUDGET IMPACTS: Not applicable
EXECUTIVE SUMMARY: The Agency, along with Salt Lake City and Salt Lake County
share ownership of the George S. and Delores Doré Eccles Theater (“Eccles Theater”). The
management and operations of the Eccles Theater is provided through an Interlocal Agreement
between the owners entitled the “Utah Performing Arts Center Operating Agreement”. Staff
from the County’s department of Arts & Culture will present an update on the annual report and
activities for the Eccles Theater.
PREVIOUS BOARD ACTION: N/A
ATTACHMENTS: None
REDEVELOPMENT AGENCY OF SLC
BICYCLE COLLECTIVE –901 S GALE STREET
LOAN MODIFICATION
RDA BOARD OF DIRECTORS MEETING –OCTOBER 11, 2022
PROJECT OVERVIEW
APPLICANT
•Bicycle Collective
PROJECT DETAILS
•RDA-owned land in Granary District
•15,000 square foot multi-use building that
will house headquarters of the organization
including retail, programming, and
operations space
•9 Line trail adjacent to site
LOAN APPROVAL (MAY 2022)
•Board approved $1,750,000 primary loan
PROJECT OVERVIEW
REQUEST
•Construction costs increased by $500,000
•Seeking additional $500,000 in loan ($2,250,000 total loan)
•Lock in interest rate instead of waiting until closing (requires waiver
from Board)
TIMELINE
•Construction anticipated to be complete Q2 2023
PROJECT OVERVIEW
PROJECT OVERVIEW
RDA OWNED-LAND
•In 2017, through RFP, RDA selected Bicycle Collective to negotiate the
development the property.
•In 2018, the RDA Board approved a land write down for the property in
exchange for public benefits.
•Land will be conveyed to Bicycle Collective.
PUBLIC BENEFITS
•Public Amenities, Transit Alternatives, Architecture and Urban Design,
Sustainability.
PROPOSED TERMS
AMOUNT
•$2,250,000
INTEREST RATE
*The applicant is proposing to lock in this base interest rate as opposed to a future rate determined at loan closing.
**To be eligible for interest rate reductions, the project will be required to meet the criteria outlined in section V of memo.
.
TERM/AMORTIZATION
•5 years/20 years
COLLATERAL
•First-position lien
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%)5.66%*
Public Benefit Interest Rate Reduction**:
•Public Amenities
•Transit Alternatives
•Architecture and Urban Design
•Sustainability
-0.5%
-0.5%
-0.5%
-0.5%
Final Interest Rate 3.66%
CONSIDERATIONS AND NEXT STEPS
•Finance Committee reviewed and provided recommendation to approve.
•Loan repayment is based on the organization’s ability to fundraise.
•Bicycle Collective anticipates additional fundraising once building is
under construction.
•RDA will have a lien on the property if they are unable to pay back the
loan.
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: September 23, 2022
PREPARED BY: Tracy Tran
RE: Consideration to increase loan up to $2,250,000 and lock in base interest rate for
loan to Bicycle Collective
REQUESTED ACTION: Consider a request from Bicycle Collective to increase loan up to
$2,250,000 and to lock in interest rate to fund construction of the nonprofit
headquarters located at approximately 901 S Gale Street
POLICY ITEM: Granary Project area development.
BUDGET IMPACTS: Up to $2,250,000 from the revolving loan fund.
EXECUTIVE SUMMARY: The Bicycle Collective (“Applicant”), a nonprofit organization, is
requesting to increase their loan amount to $2,250,000 that was approved through the Redevelopment
Agency of Salt Lake City (“RDA”) Loan Program Policy (“Program”) for the construction of a new
building located within the RDA’s Granary District project area at approximately 901 S Gale Street
(“Property”), as illustrated in Attachment A: Site Map. In addition, the Applicant is requesting to lock in
their base interest rate prior to closing, which requires a waiver to the Program. The development will
contain about 15,000 square feet for a multi-use building that will house the retail, programming, and
operations space for the Bicycle Collective (“Project”). The terms are provided in Attachment D: Term
Sheet and Attachment F: Resolution for consideration.
In May 2022, the RDA Board of Directors (“Board”) approved a $1,750,000 primary loan to the Bicycle
Collective. Since then, the Applicant has experienced construction cost increases and supply-chain issues
that have delayed the construction of their development. The Applicant is seeking an additional $500,000
in primary financing, totaling $2,250,000 and is requesting to lock in their base interest rate listed in
Exhibit A: Term Sheet from Resolution R-6-20222 (Attachment E) to help them manage costs.
The RDA currently owns the land. In November 2017, through a request for proposals (“RFP”) process,
the RDA selected the Bicycle Collective with which to negotiate the development of the Property. In
addition, in August 2018, the Board approved a land write-down for the property in exchange for
incorporating public benefits within the development. The project will include public art, high quality
façade materials and will be designed to at least a LEED Silver standard or equivalent level.
RDA FINANCE COMMITTEE RECOMMENDATION: The RDA Finance Committee
(“Committee”) reviewed the request on September 21, 2022 and recommended to approve the proposed
modifications to the loan.
ANALYSIS & ISSUES: An overview of 1) property details, 2) loan request, 3) RDA loan fund policy
alignment, 4) Granary District project area alignment 5) proposed loan terms, 6) capability for loan
repayment, and 7) developer’s experience is as follows:
1.Property Details
The property is currently owned by the RDA and contains approximately .26 acres. Additionally,
the Property is vacant and is zoned D-2 (Downtown Support) District.
2. Loan Request
The Applicant is requesting to increase their primary loan to $2,250,000 and to lock in the base
interest rate prior to closing through the RDA Loan Program for construction of the Project. The
additional request for funds is in line with the approximate $500,000 increase in construction
costs. The increased loan request would also ensure that the project is built all-electric as the all-
electric components chosen for this Project were higher costs than other options. Additionally, the
Applicant is seeking to lock in the base interest rate to help them manage costs.
3.Policy Alignment: RDA Loan Program
This loan request aligns with RDA Loan Program Policy (“Program”), as adopted by the RDA
Board, except for the request to lock in an interest rate prior to closing (which requires a waiver
from the Board) and with a clarification that although the loan amount is technically sized
appropriately (using debt service coverage ratio and/or loan to value calculations) as per the
Program, the projected repayment of the loan is based on the ability for the Applicant to
adequately fundraise to cover the loan balance at the end of the term.
The Program states that “the base interest rate shall be fixed at 300 basis points (3%) plus the US
Treasury Yield Curve Rate, as determined by the term of the loan, at loan closing.” Since the
request would lock in a rate prior to closing, this change would require a waiver from the Board.
Locking in the interest rate now would provide more certainty for the Applicant to understand
their repayment capacity in an environment of continuous rising interest rates.
The reliance on fundraising to cover the loan makes this project riskier than others. The
Applicant anticipates receiving donations from large donors once the project construction is
underway. The projections show that the Applicant should be able to pay off their loan within the
proposed 5-year term. The Applicant has requested an interest rate reduction to acknowledge
four public benefits provided by the Project:
•Public Amenities: The Project is located along 9 Line Corridor that connects the east with
the west side neighborhoods. The Project will also include a public art amenity.
• Transit Alternatives: The mission of the Bicycle Collective is to promote cycling as an
effective and sustainable form of transportation. Additionally, the Project will include
employee shower and lockers.
• Architecture and Urban Design: The Project participated in an RDA design review
process that reviewed the buildings materials, how the project fits in the with surrounding
neighborhood, and how the project will enhance the public realm.
• Sustainability: The Project will be an all-electric building that will include rooftop solar
and the Project has been designed to a LEED-Silver equivalent standard. The Bicycle
Collective was also recently awarded a Blue Sky Grant from Rocky Mountain Power.
4. Policy Alignment: Granary District Redevelopment Project Area Plan
The Project aligns with the RDA’s goals for the neighborhood, as adopted through the Granary
District Redevelopment Project Area Plan, as follows:
• Commercial Objectives:
o Provide a broad mixture of small and medium commercial tenants representing a
variety of uses.
o Promote commercial development on a neighborhood scale with an emphasis on
specialty stores and neighborhood services. Neighborhood Revitalization: Return
underutilized land to a productive use through a reduction in the number of
neglected buildings and vacant lots to reduce crime and improve the physical
environment of the neighborhood.
• Housing Objectives:
o Create attractive neighborhood environments that will reinforce the sense of
community.
o Require active, friendly and public-oriented ground-level uses that contribute to
the pedestrian environment and serve the neighborhood.
• Transportation Objectives:
o Pedestrian and Bicyclist Circulation: Provide access with an emphasis on a
friendly and safe environment for bicycles and pedestrians.
• Urban Design
o Create a pedestrian friendly streetscape that will establish a sense of
neighborhood.
5. Summary of Proposed Loan Terms
• Amount: The loan amount will be sized to the lower of $2,250,000 or a maximum of a
90% of value as per an as-completed appraisal.
• Interest Rate:
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%*
Public Benefits Interest Rate Reduction**:
• Public Amenities
• Transit Alternatives
-0.5%
-0.5%
• Architecture and Urban Design
• Sustainability
-0.5%
-0.5%
Final Interest Rate*** 3.66%
*Base interest rate shall be locked at this 5.66%, as opposed to the rate at closing. This rate is
based on the U.S. Treasury Yield Curve Rate, as determined by the term of the loan.
**To be eligible for interest rate reductions, the project will be required to meet the criteria
outlined in section 3.
*** The final interest rate will be based on 5.66% base interest rate minus eligible interest rate
reductions.
• Term: 5 years.
• Amortization: 20 years.
• Lien: A deed of trust lien, recorded in first position, on the Property
6. Loan Repayment
The loan repayment for this Project is based on fundraising. The project is projected to pay off the
loan through their capital campaign that will seek donations from individuals, organizations, and
foundations. The Applicant has raised a large portion of funds and anticipates additional
donations once the construction begins. These donations are expected to cover the debt service
for the loan.
7. Developer’s Experience
The development team consists of four members from the Applicant’s Building Committee with a
range of experience in executive, project, and construction management.
PREVIOUS BOARD ACTION:
• May 2022: The RDA approved a $1,750,000 primary loan to the Bicycle Collective for
construction of the Project.
• August 2018: The RDA Board approved a land write-down for the property in exchange for
incorporating public benefits within the development (R-28-2018).
ATTACHMENTS:
A. Site Map
B. Site Photos
C. Project Renderings
D. Term Sheet
E. Original Resolution (R-6-2022)
F. Resolution
ATTACHMENT A: SITE MAP
-" -'
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900 SOUTH
ATTACHMENT B: SITE PHOTOS
ATTACHMENT C: PROJECT RENDERINGS & ELEVATIONS
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ATTACHMENT D: TERM SHEET
APPLICANT
Bicycle Collective (“Applicant”), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
•Amount: $2,250,000
•Eligible Uses: Construction costs
•Interest Rate:
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
•Public Amenities**
•Transit Alternatives***
•Architecture and Urban Design****
•Sustainability*****
-0.5%
-0.5%
-0.5%
-0.5%
Final Interest Rate****** 3.66%
RDA staff will confirm the Project qualifies for the applicable interest rate reductions. Any changes to the
project could result in changes to the interest rate reductions:
*Base interest rate shall be locked at this 5.66%, as opposed to the rate at closing. This rate is based on the
U.S. Treasury Yield Curve Rate, as determined by the term of the loan.
**To be eligible for this interest rate reduction, the project will include a public art amenity
***To be eligible for this interest rate reduction, the project will be required to provide employee shower,
locker, and bicycle facilities as part of their overall development.
****The project participated and received approval through an RDA Design Review process.
*****The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
****** The final interest rate will be based on 5.66% base interest rate minus eligible interest rate
reductions.
•Term: 5 years
•Amortization: 20 years
•Payments: Hard repayments with balloon payment due at the end of the term.
•Security: A first position lien on the property.
LOAN TERM SHEET
Bicycle Collective
•Disbursement: Loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
•RDA approves all terms of the loan.
•Obtain all required City approvals.
•Execute loan documents (e.g. promissory notes, loan agreements, security documents, and
guarantees) as deemed necessary by the RDA and its legal counsel.
•Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of
the loan, and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
•Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property.
•Such other terms as recommended by the RDA’s legal counsel and staff.
OTHER CONDITIONS
•The Project shall operate as the intended use over the term.
•The Project shall remain in good financial and legal standing over the term.
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. 6 of 2022
Loan to Bicycle Collective
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO THE BICYCLE
COLLECTIVE FOR A COMMERCIAL DEVELOPMENT PROJECT LOCATED AT
APPROXIMATELY 901 SOUTH GALE STREET
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.
WHEREAS, the RDA and the governing body of Salt Lake City (the "City") adopted the
Granary District Redevelopment Project Area Plan on April 15, 1999.
WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas.
WHEREAS, Bicycle Collective, a Utah nonprofit entity, (the "Developer") will construct
a commercial development to house its headquarters (the "Project") on the property consisting of
approximately 0.26 acres located at approximately 901 South Gale Street (the "Property").
WHEREAS, the Developer has applied for a loan from the RDA to assist with construction
costs for development of the Project.
WHEREAS, on May 5, 2022, the RDA Finance Committee reviewed the loan application.
WHEREAS, based on the RDA Finance Committee's recommendations, the RDA staff
recommends the attached set of terms (the "Term Sheet") for a loan to the Developer, as borrower,
for the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City (the "Board") that it approves the loan outlined in the
Term Sheet attached hereto, subject to revisions that do not materially affect the rights and
obligations of the RDA hereunder. The Board authorizes the Executive Director to negotiate and
execute the loan agreement and any other relevant documents consistent with the Term Sheet,
and incorporating such other terms and agreements as recommended by the City Attorney's
office.
ATTACHMENT E: ORIGINAL RESOLUTION
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
10 th day of May, 2022.
Ana Va ft;;;;os {May 25, 2022 19 :13 MDT)
Ana Valdemoros, Chair
Approved as to form:S= 7nudo,?2'
Salt Lake City Attorney's Office
Sara Montoya
Date: May 1s, 2022
The Executive Director:
_g]__ does not request reconsideration
D requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
c;~202208c29MDT}
City Recorder
EXHIBIT A: LOAN TERM SHEET
RDA LOAN
RDA LOAN PROGRAM
APPLICANT
Bicycle Collective ("Applicant"), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
• Amount: $1,750,000
• Eligible Uses: Construction costs
• Interest Rate:
LOAN TERM SHEET
Bicycle Collective
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%
Public Benefit Interest Rate Reduction:
• Public Amenities* -0.5%
• Transit Alternatives** -0.5%
• Architecture and Urban Design*** -0.5%
• Sustainability**** -0.5%
Final Interest Rate***** 3.66%
RDA staff will confirm the Project qualifies for the applicable interest rate reductions. Any changes to the
project could result in changes to the interest rate reductions:
*To be eligible for this interest rate reduction, the project will include a public art amenity
**To be eligible for this interest rate reduction, the project will be required to provide employee shower,
locker, and bicycle facilities as part of their overall development.
***The project participated and received approval through an RDA Design Review process.
****The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
*****The interest rate provided is an estimate. The final interest rate will be based on the U.S. Treasury
Yield Curve Rate, as determined by the term of the loan, at loan closing.
• Term: 5 years
• Amortization: 20 years
• Payments: Hard repayments with balloon payment due at the end of the term.
• Security: A first position lien on the property.
• Disbursement: Loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
• Obtain all required City approvals.
• Execute loan documents (e .g. promissory notes , loan agreements , security documents , and
guarantees) as deemed necessary by the RDA and its legal counsel.
• Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of
the loan, and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property .
• Such other terms as recommended by the RDA's legal counsel and staff.
OTHER CONDITIONS
• The Project shall operate as the intended use over the term.
• The Project shall remain in good financial and legal standing over the term .
RDA Resolution 6 of 2022 Bicycle Collective
Loan
Final Audit Report 2022-06-13
Created : 2022-05-13
By : Thais Stewart (thais .stewart@slcgov .com)
Status: Signed
Transaction ID : CBJCHBCAABAAzdtp YWSNvSvo6Zkn 10 _uS0yefOGrFWq2
"RDA Resolution 6 of 2022 Bicycle Collective Loan" History
t'.:l Document created by Thais Stewart (thais.stewart@slcgov.com)
2022-05-13 -3:12:47 PM GMT
~ Document emailed to Sara Montoya (sara.montoya@slcgov.com) for signature
2022-05-1 3 -3 :14 :16 PM GMT
t'.:l Email viewed by Sara Montoya (sara .montoya@slcgov .com)
2022-05-18 -4:47:20 PM GMT
0@ Document e-signed by Sara Montoya (sara .montoya@slcgov.com)
Signature Date : 2022-05-18 -4:47:43 PM GMT -Time Sou rce: server
~ Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2022-05-18 -4:47:46 PM GMT
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0o Document e-signed by Ana Valdemoros (ana .valdemoros@slcgov .com)
Signature Date : 2022-05-26 -1 :13:29 AM GMT -Time Source: seNer
q. Document emailed to Erin Mendenhall (erin.mendenhall@slcgov .com) for signature
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0o Document e-signed by Erin Mendenhall (erin .mendenhall@slcgov.com)
Signature Date : 2022-06-10 -9:10:24 PM GMT -Time Source: seNer
q. Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
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0o Document e-signed by Cindy Trishman (cindy .trishman@slcgov.com)
Signature Date : 2022-06-13 -2 :29:51 PM GMT -Time Source: seNer
9 Agreement completed .
2022-06-13 -2 :29 :51 PM GMT
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Amending Loan Terms and Approving an Exception to the Loan Policy
for a Loan to Bicycle Collective
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDED TERM SHEET AND AN EXCEPTION
TO THE LOAN POLICY FOR A LOAN TO THE BICYCLE COLLECTIVE FOR A
COMMERCIAL DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 901
SOUTH GALE STREET
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.
WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas that it manages in accordance with the RDA Loan Program Policy
(“Policy”).
WHEREAS, the Policy provides that the base interest rate for loans will be set at the
closing of the loan.
WHEREAS, on May 10, 2022, in accordance with the Policy, the RDA Board of Directors
(the “Board”) approved resolution R-6-2022 allocating the funding and approving terms of a loan
in the amount of $1,750,000 to Bicycle Collective, a Utah nonprofit entity (the “Developer”), in
connection with the a commercial development to house its headquarters (the “Project”) on the
property consisting of approximately 0.26 acres located at approximately 901 South Gale Street.
WHEREAS, the Developer has requested to increase the loan amount to $2,250,000 and
requested an exception to the Policy to set the base interest rate as the rate of 5.66% as reflected
in Exhibit A: Term Sheet.
WHEREAS, on September 21, 2022, the RDA Finance Committee (“Committee”)
reviewed Developer’s requested changes to the loan terms and interest rate exception.
WHEREAS, based on the Committee’s recommendations, the RDA staff recommends the
Board approve the attached amended set of terms (the “Term Sheet”) for the loan to the Developer,
as borrower, for the Project. Additionally, the RDA staff recommends approving an exception to
the Policy to set the base interest rate at the rate stated in the Term Sheet and such exception shall
be valid for six months from the date of this resolution.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City that it approves the loan outlined in the Term Sheet
attached hereto, subject to revisions that do not materially affect the rights and obligations of the
RDA hereunder. The Board authorizes the waiver of the Policy to set the base interest rate at the
rate stated on the Term Sheet, which waiver shall be valid for six months from the date of this
ATTACHMENT F: RESOLUTION
resolution. The Board authorizes the Executive Director to negotiate and execute the loan
agreement and any other relevant documents consistent with the Term Sheet, and incorporating
such other terms and agreements 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 October, 2022.
_________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
September 23, 2022
EXHIBIT A: LOAN TERM SHEET
APPLICANT
Bicycle Collective (“Applicant”), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
• Amount: $2,250,000
• Eligible Uses: Construction costs
• Interest Rate:
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
• Public Amenities**
• Transit Alternatives***
• Architecture and Urban Design****
• Sustainability*****
-0.5%
-0.5%
-0.5%
-0.5%
Final Interest Rate****** 3.66%
RDA staff will confirm the Project qualifies for the applicable interest rate reductions. Any changes to the
project could result in changes to the interest rate reductions:
* Base interest rate shall be locked at this 5.66%, as opposed to the rate at closing. This rate is based on the
U.S. Treasury Yield Curve Rate, as determined by the term of the loan, and shall be valid for 6 months.
**To be eligible for this interest rate reduction, the project will include a public art amenity
***To be eligible for this interest rate reduction, the project will be required to provide employee shower,
locker, and bicycle facilities as part of their overall development.
****The project participated and received approval through an RDA Design Review process.
*****The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
******The final interest rate will be based on 5.66% base interest minus eligible interest rate reductions.
• Term: 5 years
• Amortization: 20 years
• Payments: Hard repayments with balloon payment due at the end of the term.
• Security: A first position lien on the property.
• Disbursement: Loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
LOAN TERM SHEET
Bicycle Collective -RDA LOAN
RDA LOAN PROGRAM
• Obtain all required City approvals.
• Execute loan documents (e.g. promissory notes, loan agreements, security documents, and
guarantees) as deemed necessary by the RDA and its legal counsel.
• Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of
the loan, and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property.
• Such other terms as recommended by the RDA’s legal counsel and staff.
OTHER CONDITIONS
• The Project shall operate as the intended use over the term.
• The Project shall remain in good financial and legal standing over the term.
FISHER BREWING
G R A N A R Y D I S T R I C T
A D A P T I V E R E U S E P R O G R A M R E Q U E S T
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PROGRAM BACKGROUND
Established to:
Provide forgivable loans to encourage reuse
and revitalization of the Granary District's
unique stock of industrial buildings.
Reduce financial impact of adaptive reuse and
preserve existing neighborhood character.
Facilitate transformative projects that
increase the number of residents living,
working, and visiting the Granary District.
Up to $200,000 per project
Previous Loan Recipients Include:
Atmosphere Studios, Fisher Brewing (2016),
Templin Family Brewing, & Orchid Dynasty
TODAY
Consider a request for the Granary Adaptive
Reuse Program from Fisher Brewing for a
$136,962 loan for an expansion project
FISHER BREWING REQUEST
ELIGIBILITY & TERMS
The Program is intended to:
Provide a forgivable loan to supplement
existing project financing
Offset the cost of adaptive reuse
Eligible for up to $136,962 loan
Interest rate: 0%
Term: 5 years
Repayment:
No annual repayment if all conditions are met
Principal forgiven in equal annual installments
FINANCE COMMITTEE
Unanimous recommendation
W W W .S L C R D A .C O M
R D A @ S L C G O V .C O M
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
DATE: September 23, 2022
PREPARED BY: Corinne Piazza, Project Manager
RE: Granary Adaptive Reuse Loan Request for Fisher Brewing
REQUESTED ACTION: Board consideration of a $136,962 forgivable loan to Fisher Brewing from
the Granary District Adaptive Reuse Program
POLICY ITEM: Granary District Adaptive Reuse Program
BUDGET IMPACTS: $136,962 from the Granary District Adaptive Reuse Program fund
EXECUTIVE SUMMARY: The Granary District Adaptive Reuse Program is an RDA program that offers
forgivable loans to help convert vacant and underutilized buildings in the Granary District to a more
productive use (“Program”). Fisher Brewing Company, LLC (“Applicant”) is requesting a $136,962 loan
for an expansion project. They have recently acquired properties adjacent to their current location at 320
West 800 South, and if their loan request is approved, they will use the funding for construction costs
associated with converting these newly acquired buildings into new brewery and taproom space (“Project”).
Please see Attachment A: Site Map for reference.
The Applicant’s Project meets the eligibility requirements of the Program and aligns with the RDA’s goals
for the Granary District Project Area. In addition, the Project aligns with the RDA’s mission and core values
of economic opportunity, equity and inclusion, and neighborhood vibrancy.
This is the second time the Applicant has requested funding from the Program. The RDA previously
awarded Fisher Brewing $75,000 in 2016, and per the terms of the Program, that loan converted into a grant
in 2021. The Program does not prohibit the Applicant from a second round of funding, as this is a separate
project from their first loan. Fisher Brewing opened in February 2017 and has been a successful and growing
addition to the Granary District.
Additionally, per Utah State Code 17-C, the Agency consulted the State Historic Preservation Office
(SHPO) and received notice of their determination that the Project will not adversely affect any historic
properties.
FINANCE COMMITTEE RECOMMENDATION: On Wednesday, July 20, 2022, the Finance
Committee reviewed the loan request and unanimously recommended approval of the funding request as
outlined in Attachment B: Fisher Brewing 2022 Term Sheet & Resolution.
Of note: The original term sheet presented to the Finance Committee had an error and listed the loan
disbursement as being through construction draws. This has been updated to a lump sum disbursement at
closing which is the standard method for Adaptive Reuse loans.
PROJECT DETAILS: An overview of the 1) Project Eligibility, 2) Adaptive Reuse Match Requirement,
and 3) Application Information are as follows:
1. PROJECT ELIGIBILITY:
The Project meets the eligibility requirements found in the Granary District Adaptive Reuse Program Policy
(Resolution No. R-8-2017):
• The Project is located within the Granary District Project Area boundaries at 316-320 West 800
South.
• The Project aligns with the Granary District Redevelopment Plan and other RDA policy.
The mission of the Granary District Adaptive Reuse Program is as follows: The Granary District
Adaptive Reuse Program provides forgivable loans to facilitate the conversion of vacant,
underutilized, or economically challenged buildings for a new and more productive purpose. By
reducing the financial impact of building code requirements, the Program leve rages private
investment to reduce the number of distressed buildings while preserving the neighborhood’s
historical character. In addition, the Program facilitates the implementation of transformative
projects that increase the number of residents living, working, and visiting the Granary District.
The Project will support this mission through the conversion of underutilized buildings to
commercial space occupied by a locally owned business, which will attract visitors, increase the
availability of retail goods and services, and strengthen the commercial vitality of the Granary
District.
• The Applicant has demonstrated the requested loan is necessary for the Project to succeed and
that the request is reasonable.
Program funds will provide critical gap financing, supplementing other sources of funding for the
Project, including loans from First Utah Bank and Preservation Utah, as well as owner equity
contributions. The RDA’s funding is necessary to help ease the financial impact of renovating the
buildings, particularly as construction costs are rising and unforeseen expenses are common in
adaptive reuse projects. Please see Attachment C: Sources and Uses of Funding for further details.
• The requested loan will be used to convert a vacant, underutilized, or economically challenged
building into a commercial use.
The Applicant’s proposed Project is an expansion of Fisher Brewing into two, underutilized
buildings located adjacent to their current facility. The expansion will repurpose these adjacent
buildings into approximately 3,740 square feet of new tavern space and approximately 2,600 square
feet of new brewing area. The Applicant will also add approximately 1,090 square feet of outdoor
dining area. Program funding will be utilized for construction costs associated with building code
requirements, including full electrical, HVAC and plumbing upgrades, as well as new accessible
bathrooms and a fire suppression system.
2. ADAPTIVE REUSE MATCH REQUIREMENT:
The Program is intended to provide a forgivable loan to supplement a project’s existing, secured financing
and equity contributions. Up to $200,000 is available per project, depending on matching funds from other
sources.
The Applicant’s overall project cost is $4,625,206, of which $1,411,206 is appropriated for construction
improvements. Costs are recognized as contributing to the match requirement if they are allocated to site
improvements, environmental remediation, architecture, engineering, or certain construction costs.
Acquisition funds are not recognized as contributing to the match requirement. Staff has evaluated the
Project budget and determined $980,510 of costs that are eligible as a funding match per the parameters of
the Program, as shown in the table below.
ITEM Eligible Match Amount
Site Improvements $24,602
Environmental Remediation -
Architecture & Engineering $64,787
Construction Costs $891,121
TOTAL: $980,510
Program funds must be matched by other investment at escalating ratios, as shown in the table below. Based
on the Program’s stepped matching requirements and the eligible costs identified by staff, the Applicant
may apply for a Program loan of $136,962.
3. APPLICANT INFORMATION:
The Applicant includes the four owners of Fisher Brewing: Tim Dwyer, Steven Brown, Thomas Riemondy,
and Kevin Frazier. They have owned and operated Fisher Brewing since 2016. Since opening in 2017,
Fisher Brewing has established itself in the local craft beer community, experiencing growth in sales every
year, except for a dip in sales in 2020 due to the COVID pandemic. As shown in Attachment D: Project
Growth Following Expansion, the Project is anticipated to allow Fisher Brewing to continue growing into
the near future.
ATTACHMENTS:
A. Site Map
B. Fisher Brewing 2022 Term Sheet & Resolution
C. Sources and Uses of Funding
D. Projected Growth Following Expansion
Match Ratio
(Program funds: other funds)
Program
Funds
Matching
Funds Total
1:02 50,000$ 100,000$ 150,000$
1:06 50,000$ 300,000$ 350,000$
1:12 36,962$ 443,548$ 480,510$
TOTAL:136,962$ 843,548$ 980,510$
Program Match Steps
Attachment A: Site Map
EXISTING
PROPOSED
PROJECT
• 2195 sq . ft . brewing area
• 1890 sq . ft . tavern space
• 1800 sq . ft . outdoor din ing
EXPANSION
• Adding 2600 sq . fl . of brewing area
• Adding 3740 sq . fl . of tavern space
• Adding 1090 sq . ft . of ou tdoor dining
Attachment B: Fisher Brewing 2022 Term Sheet & Resolution
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Loan to Fisher Brewing Company, LLC
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT
LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO FISHER BREWING COMPANY,
LLC FOR A GRANARY DISTRICT ADAPTIVE REUSE PROJECT LOCATED AT
APPROXIMATELY 316 WEST 800 SOUTH
WHEREAS, the Redevelopment Agency’s (RDA’s) Board of Directors (Board) adopted the
Granary District Adaptive Reuse Program Policy, Resolution 8-2017, to encourage the adaptive reuse of
existing buildings in the Granary District Project Area by reducing the economic impact of building code
requirements.
WHEREAS, Fisher Brewing Company, LLC, a local brewery located in the Granary District
Project Area (the Developer), is repurposing two underutilized buildings located adjacent to their current
facility. These repurposed spaces will be turned into new brewery and taproom space (the Project).
WHEREAS, the Developer has applied for a loan under the Granary District Adaptive Reuse
Program Policy to assist with the Project.
WHEREAS, on July 20, 2022, the RDA Finance Committee reviewed the loan application and
provided a positive recommendation for the attached set of terms (Term Sheet).
WHEREAS, the RDA staff recommends approval of the loan to the Developer outlined in the
Term Sheet for the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board that it approves the loan outlined in
the Term Sheet attached to this resolution, subject to revisions that do not materially affect the rights and
obligations of the RDA hereunder. The Board authorizes the Executive Director to negotiate and execute
the loan agreement and any other relevant documents consistent with the Term Sheet, and incorporate
such other terms and agreements 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 , 2022.
_________________________________
Ana Valdemoros, Chair
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Approved as to form:
__________________________________
Salt Lake City Attorney’s Office
Attest:
________________________
City Recorder
EXHIBIT A: APPROVED LOAN TERM SHEET
Fisher Brewing Company, LLC
BORROWER
Fisher Brewing Company, LLC
PROPERTY
Approximately 316 West 800 South
PROJECT DESCRIPTION
The Project is an expansion of the existing Fisher Brewing location into two underutilized buildings
located adjacent to their current facility. The expansion will repurpose these adjacent buildings into
approximately 3,740 square feet of new tavern space and approximately 2,600 square feet of new brewing
area. The Project will also add 1,090 square feet of outdoor dining area.
PROPOSED LOAN TERMS
• Amount: $136,962
• Interest Rate: 0%, if all Conditions of the Loan (defined below) are met
• Term: 5 years, commencing on execution of the loan documents
• Amortization Period: N/A
• Repayment: No payments if all Conditions of the Loan are met
• Disbursement: Loan proceeds shall be disbursed in one lump sum at closing
• Loan Forgiveness: Principal shall be forgiven in equal annual installments over the Term if all
Conditions of the Loan are met
• Default Rate: If the Project fails to meet Conditions of the Loan during the Term, Developer may
be required to repay all or a portion of the loan as detailed in the loan agreement. Interest shall be
due on the portion deemed to be repaid, accrued as of the date funds were dispersed, at a default
interest rate of 14%.
CONDITIONS OF THE LOAN
• The loan funds shall be used for eligible costs only. Eligible costs are defined in Section 3.2 the
Granary District Adaptive Reuse Loan Program Policy, R-8-2017.
• The Project shall be completed as intended within the Term.
• The Project shall operate as intended (neighborhood commercial) over the Term.
• The Project shall remain in good financial and legal standing over the Term.
COLLATERAL AND GUARANTEES
• Security: the loan shall be secured by unconditional personal payment guarantees from the
owners of Fisher Brewery Company, LLC: Tim Dwyer, Steven Brown, Thomas Riemondy, and
Kevin Frazier.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Developer and RDA will complete the following:
• Developer will secure and provide RDA evidence of sufficient sources of Project financing.
Sources of financing must equal the total Project cost.
• Developer will secure and provide RDA evidence of sufficient sources of matching Project
financing by other investments at the ratio of 1:12, as required by Section 4.2 of the Granary
District Adaptive Reuse Loan Program Policy, R-8-2017.
• Developer must obtain all required City approvals.
• Developer will provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the RDA for the Project.
• Developer and RDA will execute loan documents (e.g. promissory notes, guarantees, loan
agreements, security documents) as deemed necessary by the RDA and its legal counsel.
• Such other terms as recommended by the RDA’s legal counsel and staff.
Attachment C: Sources & Uses of Funding
Fisher Brewing Expansion
Sources Uses
Cash from Applicant $ 509,244 Property purchase $ 2,300,000
First Utah Bank Loan $ 3,744,000 Refinance 320 W. 800 S. $ 444,000
Preservation Utah $ 235,000 Brewing equipment $ 350,000
RDA Adaptive Reuse Loan $ 136,962 Construction Improvements $ 1,411,206
Project contingency $ 120,000
Total Source of Funds $ 4,625,206 Total Uses of Funds $ 4,625,206
Attachment D: Projected Growth Following Expansion
A
LC.RDA
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: September 23, 2022
PREPARED BY: Kate Werrett, RDA Project Manager
RE: 702 West 200 South (Sun Bar) Pre-Disposition Property Report
REQUESTED ACTION: Briefing on the Administration’s plans for disposition of property
located at 702 West 200 South.
POLICY ITEM: Property Disposition
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: The RDA is providing a courtesy pre-disposition report to the RDA Board
for the Tier 2 property located at 702 West 200 South.
ANALYSIS:
In accordance with the Real Property Disposition Policy (“Policy”) that was amended on March 23, 2021,
the Redevelopment Agency of Salt Lake City (“RDA”) is required to provide an update to the RDA Board
of Directors (“Board”) at various stages of the property disposition process for properties classified as Tier
1. The property located at 702 West 200 South is not classified as Tier 1 as it does not meet the standards
established in the policy for a Tier 1 property. While the property is considered a Tier 2 parcel, RDA staff
is providing a courtesy pre-disposition report to the RDA Board of Directors.
The information provided in Attachment A is intended to serve as a Pre-Disposition Report, and includes
information on the property’s method of disposition, timeline of disposition, redevelopment preferences,
and other information relevant to the disposition of the property.
ATTACHMENTS:
A. Pre-Disposition Report
B. Guiding Framework
C. Livability Benchmarks
ATTACHMENT A: PRE-DISPOSITION REPORT
702 West 200 South (Former Sun Bar Location)
October 2022
Location: 702 West 200 South
Status: Vacant
Size: 0.31 acres
Appraised Value: $1,270,000 (appraised 6/15/2022)
Appraised Land Lease Cost per Year $64,000/yr with an annual inflationary escalator of 1%-3%.
Zoning: GMU
Categorization: Tier 2
Method of Disposition:
The RDA proposes marketing the property on an open-ended basis. The property will
be competitively marketed through an eblast, RDA social media postings, advertising
on a local news website, a notice on slcrda.com, signage at the parcel, and potentially
other electronic notifications for development-oriented organizations. There is
currently some interest in the property and open-ended marketing will attract more
potential developers to submit creative development proposals for the site.
Potential Structure: Interested parties may propose a structure that will work with their specific project and
financing package. Any disposition structure will follow RDA policy, including following
the Disposition Price Protocol. Options may include the following and be contingent
upon Board approval pursuant to adopted policies:
• Land Lease: The RDA could provide a long-term land lease to facilitate
development of the Property. The RDA would maintain ownership of the land and
the developer would own the leasehold improvements on the land.
702 W 200 S
UTA Headquarters
• Land Sale: The RDA could convey the land through a typical land sale and realize
the sales proceeds as revenue.
• Land as Equity: The RDA could convey the Property in exchange for equity
ownership in the development, equal to the appraised value of the land at the time
of conveyance.
• Joint Venture: The RDA could form a partnership with a revenue sharing model.
This partnership could include the RDA and the project developer and be formed
in conjunction with the “Land as Equity” structure or could include the RDA in
sharing the land sale revenues as the Property is developed.
Disposition
Timeframe:
The RDA will begin marketing the property immediately and the RDA will begin
accepting offers 45 days after the property is listed. The RDA will market the property
until a developer is selected.
Developer Selection: The RDA will have a selection committee which will review the offers received and
make a recommendation to the Mayor. RDA staff shall provide an update to the Board
when the RDA has entered into a real estate purchase agreement or lease agreement
with the selected purchaser/lessee.
Redevelopment Preferences: The RDA will consider offers from professionals with a wide range of development
experience for this opportunity. Projects should align with City Plans including the
Depot District section of the Downtown Plan and the Central Station Area Plan. The
RDA is willing to consider a variety of project types with preference given to projects
that align with the RDA core values as found in the Guiding Framework and contain
the most advantageous mix of Livability Benchmarks for this location.
ATTACHMENT B: GUIDING FRAMEWORK
ATTACHMENT C: LIVABILITY BENCHMARKS LIVABILITY BENCHMARKS
PUBLIC BENEFIT DESCRIPTION & INTENT
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Leveraging To promote the leveraging of non-RDA/City sources of funding to maximize private investment.
Timeliness To support projects that have a reasonable timeframe for completion.
Return of Investment To promote the return on RDA resources, thereby enabling resources to extend further in the
community.
Permanent Job Creation To promote neighborhoods with a balanced economy that produces quality jobs.
Affordable
Commercial Spaces
To reduce the displacement risk of existing community businesses and/or reduce barriers to
entry for new, underrepresented business and service types, particularly locally-owned and
independent businesses and non-profits that promote neighborhood identity, economic vitality,
and local economic multipliers
Ownership To encourage the creation of opportunities for residents/business owners to build wealth and/or
establish permanent roots through affordable home/commercial ownership.
EQ
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Transportation Opportunities To promote a multimodal transportation network and ensure convenient and equitable access
to a variety of transportation options.
Mixed-Income
Neighborhoods
To promote mixed-income developments, economically integrated communities, and housing
opportunities for low-income residents.
Neighborhood Safety To reduce the number of vacant and distressed buildings and lots to reduce crime and return
land to a productive use.
Community Engagement &
Support
To provide a stronger platform for community members to inform and influence development
project during initial planning stages and to preserve cultural heritage.
Housing for Everyone To promote housing for families, underserved populations
Displacement
Mitigation
To mitigate the displacement of current residents and residents with generational ties to the
neighborhood or provide opportunities for those who have already been displaced to return.
Affordable Housing Preservation To preserve existing affordable housing
NE
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Public
Space
To promote community amenities that provide opportunity for social interaction; support
cultural events; promote neighborhood identity; and reinforce neighborhood character.
Public Art To 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.
Architecture & Urban Design To promote high quality architecture that enhances the public realm, strengthens the
neighborhood’s unique character, and uses enduring materials.
Sustainability To promote a built environment that assists with protecting resources and promoting greater
resiliency.
Walkability To promote walkable neighborhoods and connectivity, and support a safe, engaging
pedestrian experience.
Building Preservation, Rehabilitation, or Adaptive Reuse
To acknowledge a neighborhood’s history and maintain its unique character through
preservation, rehabilitation, or repurposing of historic or underutilized structures.
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.
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:October 11, 2022
RE: Redevelopment Agency (RDA)
Budget Amendment Number Two FY2023
________________________________________________________________________________
ISSUE AT-A-GLANCE
RDA Budget Amendment Number Two includes requested changes to budgets in the Depot District project area,
North Temple project area, West Capitol Hill project area, Citywide Housing Fund, Revolving Loan Fund, and the
Administration budget. Total expenditures are slightly over $3.5 million for four items. Note there is one Board-
added item. 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.
$4 Million Gap Loan to Spark! Project (former Overniter Motel at 1500 West North Temple)
Funding for the gap loan is proposed to come from rescoping three existing budgets as detailed in the table below
provided by RDA staff.
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Primary
Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds $2,936,762 $1,500,000 $1,436,762
Multiple Housing Development Loan
Fund (HDLP) - Fall NOFA $7,000,000 $1,000,000 $6,000,000
This item is a follow up from September 13 when the Board approved the seller’s note for the land disposition. The
Board also took a unanimous straw poll in support of this gap loan request. If the gap loan is approved, then the
RDA’s total financial contribution to the development would be $14,456,000. A budget impact graphic near the end
of the transmittal provides a visual breakout of the six RDA funding sources going to the Spark! project.
$46,805 from RDA Administration Fund Balance for Market-based Salary Adjustments to Non-
represented Employees
This is a housekeeping item to implement compensation changes from the annual budget. A salary study for non-
represented employee positions identified potential adjustments to ensure compensation is competitive in the
current market. In the annual budget, the Council approved nine months of funding to cover salary adjustments
beginning in October. The RDA and some enterprise funds (e.g., the Airport) did not have the study results
available at the time of budget development and adoption which is why the item appears in a budget amendment.
Project Timeline:
Set Date & 1st Briefing: October 11, 2022
Public Hearing & 2nd Briefing: November 10, 2022
Potential Action: November 10, 2022
Page | 2
Up to $500,000 for RDA to take on Station Center Vision Plan Contract from University of Utah
Half a million dollars is requested to transfer to the RDA an existing consultant contract held by the University of
Utah. The contract is to create a master planning document of development scenarios for Station Center. The scope
of work would be adjusted to reflect the RDA’s goals including the addition of RDA owned properties near Station
Center, coordination for redevelopment of nearby properties owned by UTA, information to develop a Housing and
Transit Reinvestment Zone (HTRZ) application to the State, and inclusive development with firms of multiple sizes
and backgrounds.
The funding is proposed to be equally split from two sources: $250,000 from Station Center public infrastructure
budget and $250,000 from Central Station improvements budget. The total cost of Station Center public
infrastructure is estimated to be $15 million. This item would increase the $9.5 million funding gap.
Draft of Revised Scope of Work
The below draft includes deliverables in the existing scope of work and potential adjustments should the RDA take
on the contract. Additional scope of work items could be added, and the draft items refined. The RDA is currently
drafting a revised scope of work (listed below) because the original scope included items specific to the University of
Utah. The consultants estimate the revised scope of work would take approximately eight months to complete. This
approach is recommended by the RDA as a faster alternative than going back out for another RFP to select a new
consultant. For example, a new RFP could take a few months from drafting to finalizing a contract. The existing
consultant’s work-to-date would be incorporated into the revised scope and deliverables.
A. Authentic community engagement effort that brings new partners into the fold, including nearby Westside
residents, community leaders, institutional partners, businesses, and nonprofits, and coordinates with
other nearby redevelopment efforts.
B. Real estate market analysis to assess the appropriateness of anticipated land uses, including commercial
office, lab, residential, and retail spaces, and feasible affordability mix.
C. Illustrative site plan that locates proposed land uses, shared parking areas, vehicular circulation and
loading/service patterns, open space, and pedestrian network, and more.
D. Recommended placemaking, programming, and activation strategies.
E. Development phasing and property disposition strategy that incorporates best practices for equitable
development and provides opportunities for various types of development teams.
F. Innovation industry partnership strategy that outlines best practice approaches to identifying and
recruiting prospective tenants and integrating them into the future district.
G. Refinement of Station Center Design Guidelines to reflect anticipated land uses and increased building
height allowances in the Gateway Mixed-Use zoning district.
H. Information necessary to submit a competitive application to establish a Housing and Transit Reinvestment
Zone (HTRZ) around the UTA Intermodal Hub.
Policy Questions:
➢Feedback on Draft Scope of Work – The Board may wish to review the draft scope of work above and
provide feedback before approving this budget item.
➢Ground Lease Development Scenario(s) – The Board may wish to discuss adding ground lease development
scenarios to the scope of work. In recent discussions some Board Members have expressed interest in
pursuing a ground lease approach for RDA-owned properties.
➢Stakeholders to Include – The Board may wish to ask the Administration which stakeholders were engaged
during the consultant’s initial work and suggest additional persons and organizations.
Page | 3
Station Center Site Plan Map
Note the Board approved funding in Budget Amendment #1 to purchase the three diagonal hash marked parcels
in development site #4
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, mixed-use transit-oriented development, and new public rights of way to create
smaller more pedestrian friendly block sizes. If this item is approved, then the $9.5 million funding gap would
increase for the $15 million of proposed public infrastructure projects. The Administration recommends the Board
consider using future proceeds from land sales in Station Center 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 a Festival Street (300 South) amenities.
Page | 4
34 Acres of UTA and 4 Acres of RDA-owned Properties in “Central Station”
The UTA and the RDA collectively own approximately 38 acres of land identified for potential development in the
Central Station area. The properties are located between 600 West to Interstate 15 and Dansie Drive (50 South) to
400 South as well as properties on either side of the North Temple bridge spanning 400 West to 600 West. In 2018
the RDA and UTA partnered on a development plan for these properties from which the below map is copied. The
RDA-owned properties are approximately four acres along 100 South between 600 West and Interstate 15.
Page | 5
Returning $1 Million No Longer Needed to Cover Cost Increases for RDA Marmalade Plaza Project
($720,000 to Revolving Loan Fund and $280,000 to Arctic Court Infill Home)
Note: this is a Board-added item
In RDA Budget Amendment #1 the Board approved $720,000 from the Revolving Loan Fund and $280,000 from
the Arctic Court infill home budget to cover anticipated cost increases for the Marmalade Plaza project. This
funding was approved to ensure sufficient budget existed to fully cover the costs included in the time-limited bid
and sign the construction contract. The Board requested that the funding source be changed to parks impact fees in
a follow up budget amendment. The Council approved $1 million in General Fund Budget Amendment #3 for this
project. This item will return the $720,000 to the Revolving Loan Fund to be available for future loans and
$280,000 to the Arctic Court infill home holding account.
Policy Question:
➢Return More Funding to Arctic Court Infill Home Budget – The Board may wish to discuss with the
Administration that after the project is completed any remaining funds be used for the Arctic Court Infill
Home. The RDA reports based on existing information the Marmalade Plaza costs are expected to come in
below the $3.9 million total project budget (detailed in the below table), but final costs won’t be known
until it’s completed.
Source Approved Budget Notes
Park Impact Fees $2,145,394 Restricted to eligible projects and must be
refunded with interest if not spent by deadline
Property Sale Proceeds $1,362,065
Program Income Fund (PIF)
Artic Court Infill Home Rescope $338,141
West Capitol Hill Interest Income $100,000
More flexible than tax increment funding.
Subject to allowable uses per state law (see
additional info section).
TOTAL $3,945,600
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
†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
Page | 6
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
FY – Fiscal Year
HDLF – Housing Development Loan Fund
HTRZ – Housing and Transit Reinvestment Zone
NOFA – Notice of Funding Availability
PIF – Program Income Fund
RDA – Redevelopment Agency
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: ________________
Erin Mendenhall, Mayor Date sent to Council: ___________
______________________________________________________________________________
TO:Salt Lake City RDA Board DATE: September 27, 2022
Ana Valdemoros, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Chief Operating Officer
SUBJECT:RDA Budget Amendment #2, FY2022-23
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed first amendment to the Annual
RDA Budget for Fiscal Year 2023. Accept public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 0.00 $ 2,546,805.00
RDA CIP FUND 0.00 (2.500.000.00)
TOTAL $ 0.00 $ 46,805.00
September 28, 2022
September 29, 2022
EXECUTIVE SUMMARY:
The purpose of the second amendment (“amendment”) is to addresses the following items:
1. Funding rescope for Spark Loans
2. Rescope of funds for Station Center vision and implementation planning.
3. Compensation adjustment
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board. The
budget opening contains one item:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment #1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
Initiative Number/Name Project Area Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time FTEs
1 Funding Rescope for Spark Loans NT - Capital - (1,500,000.00) One-time -
1 Funding Rescope for Spark Loans NT - 1,500,000.00 One-time -
1 Funding Rescope for Spark Loans CWH - (1,500,000.00) One-time -
1 Funding Rescope for Spark Loans CWH - 1,500,000.00 One-time -
1 Funding Rescope for Spark Loans RLF - Capital - (1,000,000.00) One-time -
1 Funding Rescope for Spark Loans RLF - 1,000,000.00 One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - (250,000.00) One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - (250,000.00) One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - 500,000.00 One-time -
3 Compensation Adjustment Admin - 46,805.00 Ongoing -
-
Total of Budget Amendment Items - 46,805.00 - -
Total by Fund, Budget Amendment #2:
Redevelopment Agency RDA - 2,546,805.00 - - -
Redevelopment Agency - CP RDA -CIP - (2,500,000.00) - -
Total of Budget Amendment Items - 46,805.00 - - -
Fiscal Year 2022-23 RDA Budget Amendment #2
Section G: Board Consent Agenda -- Grant Awards
Section I: Board Added Items
Section A: New Items
Section B: Grants for Existing Staff Resources
Section C: Grants for New Staff Resources
Section D: Housekeeping
Section E: Grants Requiring No New Staff Resources
Section F: Donations
Board ApprovedAdministration Proposed
1
Initiative Number/Name Project Area Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time FTEs
Fiscal Year 2022-23 RDA Budget Amendment #2
Board ApprovedAdministration Proposed
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
FY 2022-23
Adopted Budget RDA BA #1Total RDA BA #2 Total Total To-Date
Redevelopment Agency 50,172,718 - 2,546,805.00 52,719,523
Redevelopment Agency CIP 13,128,181 - (2,500,000.00) 10,628,181
Total of Budget Amendment Items 63,300,899 - 46,805.00 63,347,704
Certification
Budget Director
Deputy Director, City Council/RDA Board
Contingent Appropriation and Notes
2
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL
YEAR 2022-2023
WHEREAS, on June 14, 2022, the Redevelopment Agency (“RDA”) Board of Directors
(“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2022,
and ending June 30, 2023, in accordance with the requirements of Section 17C-1-601.5 of the Utah
Code.
WHEREAS, all conditions precedent to amend the RDA's final budget have been
accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this resolution is to amend the final budget of the RDA, as
approved, ratified and finalized by the Board on June 14, 2022.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder, which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2022, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
September 19, 2022
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
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: September 23, 2022
PREPARED BY: Erin Cunningham, Financial Analyst
RE: RDA Budget Amendment #2, FY 2022-2023
REQUESTED ACTION: Public Hearing and Board Discussion
BUDGET IMPACTS: The proposed Second Amendment identifies appropriations across multiple funds
and projects.
EXECUTIVE SUMMARY: The purpose of the briefing is to provide a preliminary budget proposal for
the Second Amendment to the Fiscal Year 2023 RDA Budget (“Amendment”). There are three proposed
amendments for the following:
Spark Gap Loan: In response to the support of a straw poll at the Board meeting on September 13, 2022,
the Agency is returning to the Board with a gap loan request of $4,000,000 for the Spark development.
Station Center Vision and Implementation Planning: Assumption of the consultant contract for the
creation of a Station Center Vision Plan. The effort would look to develop a planning and
implementation strategy for the Agency property. The request is to cover planning and marketing efforts
at a not to exceed the amount of $500,000.
Previously Approved Non-Represented Employee Compensation Study Adjustments: During the
Fiscal Year 2023 budget process, the City Council approved nine months of an increase in funding based
on the non-represented employee compensation study throughout the City. The Agency’s nine-month
adjusted amount of $46,805 was not included in its annual budget request and is requesting an
amendment to use the Agency’s Administration Fund balance to increase the RDA Personnel budget to
align with the compensation study findings.
ANALYSIS & ISSUES:
Spark Gap Loan
On September 13, RDA staff requested additional funding for Spark, a mixed-use, affordable housing
project located at 1500 W. North Temple in the North Temple Project Area. The Board approved a
$4,000,000 seller’s note as part of a land disposition, and unanimously supported a straw poll for
approving a gap loan request of $4,000,000.
As noted in the attached Staff Memo from August 22, 2022, the seller’s note and gap loan requests are in
addition to the $2,500,000 the Agency awarded Brinshore Development as part of the 2018 Notice of
Funding Availability (“NOFA”) for affordable housing, and the $3,956,000 awarded in the 2019 NOFA.
The result of the gap loan request will raise the loan to $10,456,000, bringing the total financing to
$14,456,000 with the seller’s note.
Staff proposes reallocating funds from the following sources to fund the $4,000,000 gap loan:
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Primary
Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds $2,936,762 $1,500,000 $1,436,762
Multiple Housing Development Loan
Fund (HDLP) - Fall NOFA $7,000,000 $1,000,000 $6,000,000
Station Center Vision and Implementation Planning
In fall 2021, the University of Utah (U of U) released a request for proposals (RFP) from qualified
consulting firms or individuals for the creation of the Station Center Vision Plan, a master planning
document that would consider U of U and RDA-owned properties in the Station Center area (500 – 600
West, 200 – 400 South). By the end of 2021, the U of U had shortlisted and selected a consultant team
comprising Perkins & Will, HR&A Advisors, Kimley-Horn, and Phil Myrick, placemaking expert. The U
of U followed a public solicitation process as required by the State of Utah and allowed RDA Staff to
participate in the drafting of the RFP document, shortlisting of consultants, consultant interviews and
selection, and drafting of the final scope of work for the Vision Plan but did not ask for a financial
contribution.
The Vision Planning effort was launched in 2022 and the consultant team completed initial tasks and
hosted one community engagement event before the U of U experienced a change in leadership and
development priorities. New leadership has spent the past few months evaluating the U of U’s planned
role and level of participation in the project and it was determined that the RDA should assume ownership
of the Vision Plan, with both parties remaining open to opportunities to collaborate as adjacent Station
Center property owners.
The RDA remains committed to the vision of a diverse, mixed-use, sustainable, equitable and inclusive
development at Station Center. An effort of this scale and importance warrants the creation of an upfront
development and implementation strategy. To complete this in the most time efficient manner, Staff is
proposing to re-engage the same consultant team that the U of U hired at the end of 2021 and resume
work on the following deliverables as soon as possible (not comprehensive, final scope TBD):
• Authentic community engagement effort that brings new partners into the fold, including nearby
Westside residents, community leaders, institutional partners, businesses, and nonprofits, and
coordinates with other nearby redevelopment efforts;
• Real estate market analysis to assess the appropriateness of anticipated land uses, including
commercial office, lab, residential, and retail spaces, and feasible affordability mix;
• Illustrative site plan that locates proposed land uses, shared parking areas, vehicular circulation
and loading/service patterns, open space and pedestrian network, and more;
• Recommended placemaking, programming, and activation strategies;
• Development phasing and property disposition strategy that incorporates best practices for
equitable development and provides opportunities for various types of development teams;
• Innovation industry partnership strategy that outlines best practice approaches to identifying and
recruiting prospective tenants, and integrating them into the future district;
• Refinement of Station Center Design Guidelines to reflect anticipated land uses and increased
building height allowances in the Gateway Mixed-Use zoning district;
• Information necessary to submit a competitive application to establish a Housing and Transit
Reinvestment Zone (HTRZ) around the UTA Intermodal Hub.
With the RDA being the primary and lead client, Staff has identified an opportunity to include the RDA-
owned Central Station properties (100 South, near 600 West) in the scope of the Vision Plan. The Station
Center and Central Station properties are in close geographic proximity, separated by UTA-owned
properties that will soon be redeveloped as well. Considering these properties and redevelopment plans in
a holistic manner will result in the most feasible and marketable development program. It is also the
RDA’s intent to use deliverables of the Vision Plan effort to prepare and submit to the State an
application to establish an HTRZ around the Intermodal Hub, which, if approved, would help fund the
planned redevelopment activity in the area.
The budget request is to cover planning and marketing efforts at a not to exceed the amount of $500,000
and Staff proposes reallocating funds from the following sources for this purpose:
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Depot District CIP Depot District Project Fund
(Station Center Infrastructure) $5,670,186 ($250,000) $5,420,186
Depot District Central Station $664,121 ($250,000) $414,121
Depot District Station Center Vision and
Implementation Planning $0 $500,000 $500,000
Previously Approved Non-Represented Employee Compensation Study Adjustments
Staff is formally requesting an increase in Personnel expenses in its Administration Fund to account for
the nine months of funding for the non-represented employee compensation study that was previously
approved by the City Council. At the time of the Fiscal Year 2023 budget presentations, the RDA did not
have specific information available to include this compensation adjustment for non-represented
employees.
The projected annual total is $62,407, which brings the approved nine-month total to $46,805. It is not
anticipated that Agency will be able to absorb the compensation adjustment within the fiscal year’s
budget and is requesting a transfer from the Administration fund balance to ensure its compensation
budget is adjusted at the same time as other impacted City employees.
Fund Description Current
Amount
Requested
Amount
Updated
Amount
Administration RDA Personnel $2,480,095 $46,805 $2,526,900
Administration Approximate Fund Balance $2,000,000 ($46,805) $1,953,195
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2022-2023 Budget.
2. Approval of the Fiscal 2022-2023 Budget Amendment #1.
3. Authorization of a seller’s note and a straw poll with unanimous support for a gap loan for the
Spark development.
ATTACHMENTS:
1. Staff Memo (August 22, 2022): 1500 W. North Temple redevelopment project with Brinshore
Development
2. Staff Memo (July 22, 2022): RDA Budget Amendment #1, FY 2022-2023, July 22, 2022
3. FY23 – Budget Amendment #2 Impact Slides
REDEVELOPMENT AGENCY of SALT LAKE CITY
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
DATE: August 22, 2022
PREPARED BY: Corinne Piazza and Kate Werrett, Project Managers
RE: 1500 W. North Temple redevelopment project with Brinshore Development
REQUESTED ACTION: Approval of terms for a Seller’s Note as part of the land disposition and
consideration of a $4,000,000 gap loan request to Brinshore Development
for a mixed-use, affordable housing project located at 1500 W. North
Temple in the North Temple Project Area.
POLICY ITEM: Land Disposition & Affordable Housing
BUDGET IMPACTS: Land Disposition: $4M Seller’s Note, paid back plus interest, does not
require the Agency to use any upfront funds.
Gap Loan: $4M Agency gap loan, paid back plus interest (specific funding
sources to be determined).
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“Agency”) selected
Brinshore Development (“Brinshore”) through a Request for Proposals (“RFP”) process in 2018 to
redevelop the Agency’s property located at 1500 W. North Temple (“Property”), formerly the location of
the Overniter Motel. The Property is designated as an RDA Tier I Property due to it being over 2 acres (at
2.07 acres) and identified in a City adopted master plan, specifically as an “ideal spot for a signature transit-
oriented development” in the Cornell Station Area Plan. Please see Attachment A: Parcel Location Maps
for reference.
Brinshore’s concept for the project, known as Spark (“Project”) implements the Agency’s vision for the
Property based on the goals and objectives outlined in the North Temple Project Area Plan, the North
Temple Boulevard Plan, city priorities, and as outlined in the RFP. The Project is designed to deliver a total
of 200 units of workforce and family-size affordable housing, including 63 family-sized units ranging from
20-80% AMI and two, three, and four-bedroom units. Additionally, the Project includes neighborhood
serving commercial space, structured parking, a mid-block walkway that connects Cornell Street and 1460
West (to be publicly accessible and privately owned and maintained), a high level of concern for
architectural and urban design principles, transit-oriented design, maximized density, sustainable
construction and building design practices, as well meeting Davis Bacon fair wage requirements for
construction.
The Project began in 2018 and is now in the final due diligence stage with Brinshore finalizing their capital
stack in anticipation of closing by the end of the year. The Project received Low Income Housing Tax
Credits (“LIHTC”) and as such, has a closing deadline of March 1, 2023. The Project is anticipated to begin
construction in Spring 2023 with Project completion in 2024.
The proposed capital stack includes the following requests from the developer:
• The Agency finance the $4,000,000 sale’s price of the Property (“Seller’s Note”). The purchase
price was determined in the RFP and 2018 Purchase and Sale Agreement between Brinshore and
the Agency. The Seller’s Note will be paid back in full plus interest.
• The Agency provide an additional $4,000,000 in loan proceeds (“Gap Loan”) to cover the
remaining financing gap that has occurred due to escalating construction costs and remains even
after the developer secured additional funding sources and implemented cost saving measures to
reduce Project costs.
These requests are in addition to the $2,500,000 the Agency awarded Brinshore as part of the 2018 Notice
of Funding Availability (“NOFA”) for affordable housing and the $3,956,000 the Agency awarded
Brinshore in the 2019 NOFA.
RDA FINANCE COMMITTEE RECOMMENDATION:
On August 15, 2022 the Finance Committee (“Committee”) convened to review the Seller’s Note terms,
the $4,000,000 Gap Loan request, and Gap Loan terms. The Committee unanimously recommends
approval of the funding request and the terms as outlined in the following: Attachment B: 1500 W. North
Temple - Seller’s Note Term Sheet and Resolution and Attachment C: 1500 W. North Temple – Gap Loan
Term Sheet.
ANALYSIS & ISSUES:
Since entering into a Purchase and Sale Agreement with the Agency in 2018, Brinshore has been actively
pursuing financing for the Project, which is estimated at ~$93 million. To date, Brinshore has secured
funding through 4% Low Income Housing Tax Credits and received ~$42.5 million in the competitive
application process. Additionally, Brinshore has secured the following*:
Source Amount
4% Low Income Housing Tax Credits (LIHTC) ~$42,540,000
State Tax Credits ~$1,280,000
Permanent Loan ~$26,700,000
Seller’s Note Financing ~$4,000,000
RDA Loan (Including Gap Financing Request) ~$10,456,000
SLC HOME Funds (SLC Housing Sustainability) ~$1,000,000
State Olene Walker HOME Funds ~$1,000,000
State Olene Walker HTF Funds ~$1,000,000
Salt Lake County HOME Funds ~$700,000
Philanthropic Money ~$1,500,000
Rocky Mountain Power Rebate ~$100,000
Deferred Developer Fee ~$3,000,000
Total ~$93,276,000
*Please note that the financing information is high level and represents only general commitments or
estimates at this time and is subject to change as Project financing progresses.
SELLER’S NOTE FINANCING:
Brinshore is requesting that the Agency finance the $4,000,000 sales price of the Property in the form of a
Seller’s Note. In accordance with the Real Property Disposition Policy for Tier I properties, the Board was
provided an update on the pre-disposition, developer selection, and developer agreement process. The
proposed Seller’s Note of $4,000,000 is based on the appraised value when the property was purchased and
was determined via the 2018 pre-disposition and RFP process and subsequent Purchase and Sale Agreement
between the Agency and Brinshore.
The Seller’s Note financing includes the following:
• The full repayment to the Agency, plus interest to invest in new projects in the future.
• The Agency does not use any current funds to finance the Seller’s Note.
• The Agency will receive payments over time which helps offset upfront construction costs and
makes the Agency’s public benefits requirements within the Project more feasible.
The requested interest rate for the $4,000,000 Seller’s Note is 1.25%. Agency staff has negotiated this rate
with Brinshore based on Project financials and full repayment of the Seller’s Note, plus interest, within a
30-year timeframe and cash flow repayment.
Agency staff recommends approval of the Seller’s Note in accordance with the Agency’s existing
contractual obligations and commitment to the Agency’s extensive public benefits requirements for the
Project.
For full terms and details of the Seller’s Note, please see: Attachment B: 1500 W. North Temple - Seller’s
Note Term Sheet and Resolution.
GAP FUNDING REQUEST:
Due to escalating construction costs, the Project has seen a significant cost increase which has created a
funding gap. In order to move forward with a financially feasible Project, Brinshore has addressed the
funding gap in the following ways:
Additional Funding Sources: Brinshore has applied for and received $500,000 in Utah Housing Corporation
increased basis. They’ve also applied for philanthropic funds as well as an additional $1,400,000 from
Olene Walker, neither of which have been finalized or awarded.
Value Engineering: Brinshore has worked with their design, engineering, and construction team to identify
approximately ~$6,100,000 in cost savings, while still preserving the overall goals for the Project.
Modifications include the removal of a level of underground parking reducing spaces from 134 to 100,
removing the balconies, reconfiguring a portion of the units, and reducing the green roof space.
Developer Contribution: As the Agency’s selected private-sector partner, Brinshore brings extensive
development expertise and borrowing capacity to invest into the Project and carries significant risk to
complete the Project that the Agency does not have to assume. Brinshore’s equity contribution includes the
following:
• Funding predevelopment (~$1,600,000)
• Deferred developer fee ($3,000,000)
• Guarantees (construction completion, operating deficit, tax credit compliance)
• Commercial Master Lease (~$70,000/year)
After securing the additional sources of funds listed above and implementing cost saving measures, the
Project still faces a $4,000,000 funding gap. Brinshore’s request for a Gap Loan allows the Project to
continue toward a year-end closing.
Agency staff has identified the following potential sources the Board may wish to consider reallocating for
the Gap Loan request. The potential option(s) below aim to leave funding in each program so that
reallocating funds to support the Project does not empty any one account.
Fund Program Amount
Available
Project Gap
Loan
Amount
Remaining
Primary Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds
$2,936,762 $1,500,000 $1,436,762
Housing Development Loan
Fund (HDLP)
Fall 2022 NOFA $7,000,000 $1,000,000 $6,000,000
Total for Project Gap Loan - - $4,000,000 -
The requested interest rate for the Gap Loan is 2%. Agency staff has negotiated this rate with Brinshore
based on Project financials and full repayment of the Gap Loan, with interest, within a 30-year timeframe
and cash flow repayment. The Gap Loan terms also match those of the previously awarded NOFA funds
allowing the Agency to combine the funds into one loan, reducing complication and allowing the Agency
to issue and manage one loan total for efficiency. For full terms and details of the Gap Loan, please see:
Attachment C: 1500 W. North Temple – Gap Loan Term Sheet.
If the Gap Loan is approved, total Agency participation in the Project would be $14,456,000. The initial
total development cost in August 2020 was ~$60 million and the Agency committed $6,456,000 in NOFA
funds as well as the $4,000,000 Seller’s Note for a total of $10,456,000 putting Agency participation at
17.5% of the total development cost. Currently, with the total development cost at ~$93 million, and the
Agency’s potential addition of the $4,000,000 Gap Loan, the Agency’s participation would be 15.5% of
the total development cost.
If the Board wishes to approve funding the Gap Loan, Agency staff will return to the Board with the
applicable budget amendment in October and the subsequent potential Gap Loan final approval in the
November Board meeting.
PROJECT OVERVIEW & PUBLIC BENEFITS:
The proposed Spark mixed-use Project will include 200 residential units including affordable workforce
and family-size housing, structured parking, a mid-block walkway that connects Cornell Street and 1460
West (to be publicly accessible and privately owned and maintained), a high level of concern for
architectural and urban design principles, transit-oriented design, maximized density, sustainable
construction and building design practices, as well meeting Davis Bacon fair wage requirements for
construction.
Timeline:
• Brinshore is currently finalizing the Project’s financing and is progressing towards a year-end
closing with construction anticipated to begin in Spring 2023 and Project completion in 2024. At
the latest, the Project must close by March 1, 2023 per LIHTC requirements, or it will forfeit the
~$42.5 million LIHTC allocation, making it no longer financially feasible.
Developer Experience:
• Brinshore is an Illinois-based developer founded in 1995 with a focus on strengthening
neighborhoods and a development track record of over 7,000 units over the last 27 years. Brinshore
is one of the largest developers of affordable housing in the United States and specializes in creating
authentic projects that encourage an active, healthy lifestyle and serve as a catalyst for other
development.
Housing Affordability:
• The Project has 200 units including 63 family-sized units that range from 20-80% AMI and two,
three, and four-bedroom units. Per the 2017 Board resolution, 50% of the units are affordable to
households at or below 60% AMI. Additionally, 50% of the units are affordable to households at
70-80% AMI per LIHTC standards, which are currently market rate rents for the North Temple
area.
• The unit mix allows the Project to generate as much LIHTC equity as possible, lowering the
financing gap as all 200 units are income and rent restricted. However, due to the naturally
occurring lower rents in the North Temple Area, the 70 and 80% restricted units are above current
market rate rents for the neighborhood. This allows the Project mix to have all restricted units to
maximize LIHTC equity, meet the Board’s goals that 50% of the units be in market rate range,
while also restricting the 70 and 80% units to ensure affordability over the long term as the North
Temple Project Area continues to grow.
Neighborhood Serving Commercial Space:
• As currently designed, there is a proposed ~4,000 square foot daycare facility which will serve
Spark residents and low-income members of the community at a sliding scale cost. There is also a
~5,000 square foot retail space and Brinshore is currently working with local organizations to lease
the commercial space, including reaching out to the Economic Development department to connect
with potential local tenants.
Structured Parking:
• The Project includes 100 structured parking spaces that are free to low-income residents per LIHTC
requirements and are designed to be safe, functional, and attractive for residents and visitors.
Mid-Block Walkway:
• The mid-block walkway that connects Cornell Street and 1460 West is consistent with the North
Temple Boulevard Plan and will be publicly accessible and privately owned and maintained.
Architecture, Sustainable Construction, and Building Design Practices:
• The Project incorporates a high level of concern for architectural and urban design principles
including a transit-oriented design and maximized density. It also incorporates sustainable
construction practices and building design including Enterprise Green Communities and ENERGY
STAR Multifamily New Construction, ~24 bicycle parking spaces, ~10 EV charging stations, as
well as Davis Bacon fair wages for construction.
ATTACHMENTS:
• Attachment A: Parcel Map
• Attachment B: 1500 W. North Temple - Seller’s Note Term Sheet & Resolution
• Attachment C: 1500 W. North Temple - Gap Loan Term Sheet
• Attachment D: Spark Project Conceptual Renderings
ATTACHMENT A: Parcel Location Maps
ATTACHMENT B: 1500 W. North Temple - Seller’s Note Term Sheet & Resolution
ATTACHMENT C: 1500 W. North Temple - Gap Loan Term Sheet
TERM SHEET
FOR LOAN TO BRINSHORE DEVELOPMENT, LLC
1500 W. North Temple
The terms described on this Term Sheet represent the terms for an RDA Loan and
together with the Seller’s Note, represent the RDA’s maximum contribution to the
financing of the Project. Following receipt of the senior lender and tax credit
investor final commitments to the Project, and final proformas for the Project, the
RDA and Borrower will verify and adjust the terms of the loan listed below
consistent with the respective requirements of the RDA.
LOAN TERMS
Borrower: Brinshore Development, LLC
Property: 1500 West North Temple
Amount: Not to exceed $10,456,000*
Sources of funds include:
- $2,500,000 the RDA Board of Directors set aside for the
Project as part of the 2018 Notice of Funding Availability
(NOFA) for affordable housing through the Housing
Development Loan Program (HDLP). The terms for the
$2,500,000 NOFA funding will match the terms shown
here.
- $3,956,000 the RDA Board of Directors set aside for the
Project as part of the 2019 Notice of Funding Availability
for affordable housing through the HDLP. The terms for the
$3,956,000 NOFA funding will match the terms shown
here.
- Up to $4,000,000 of Agency funding shall be classified as
gap financing and shall only be used if the Project has a
funding gap at the time of closing, after the Agency has
determined all other sources of primary and subordinate
financing have been maximized. This financing has not
formally been allocated by the Board.
*Please note this Project will utilize RDA funding both in
connection with this loan and in the form of a Seller’s Note
financing the Borrower’s acquisition of the Property. The full
RDA financing amount with the Seller’s Note included is not to
exceed $14,456,000.
Project Description: The overall project consists of the new construction of a mixed-
income, mixed-use project with approximately: 200 housing
units, ~100 parking spaces, ~24 bicycle parking spaces, a ~4,000
SF daycare, and approximately ~5,000 SF of neighborhood scale
commercial space. The estimated total project cost is
~$93,000,000. 100% of the 200 units will be deed restricted
affordable housing.
Affordability Restrictions: All units will be deed restricted for 50 years at 80% AMI or less.
A minimum of 50% of the units will be at 60% AMI or less.
Term: 30 years
Amortization: 30 years, cash flow repayment
Interest Rate: 2% Interest Rate
Interest shall accrue during construction, beginning upon the
first disbursement of funds. Accrued interest during construction
to be added to the loan balance.
Repayment Payments commence upon conversion of the senior construction
loan to permanent financing.
Repayment shall be based on available annual cash flow after
senior lender payments and any required tax credit investor fees.
The RDA will receive 40% of available cash flow and the
Developer will receive 60% of available cash flow until the
deferred developer fee is fully repaid. The RDA will have
discretion on how its share of cash flow is allocated towards
repayment of the RDA Loan and Seller’s Note, which will be
defined in the loan documents.
Once the deferred developer fee is fully repaid, the RDA will
receive 60% of available cash flow. The RDA will have
discretion on how its share of cash flow is allocated towards
repayment of the RDA Loan and Seller’s Note, which will be
defined in the loan documents.
A balloon payment of any outstanding balance shall be due upon
maturity.
Collateral: A mortgage lien on the Property that may be subordinated to the
senior lender but will be superior to other subordinate financing
sources.
The RDA’s two sources of funding for the Project, the RDA Loan
and Seller’s Note, will be in a shared second position.
Guarantors: Corporate guarantee from Brinshore Development, LLC
Deferred Fee: At the RDA’s sole discretion, Applicant will maximize deferred
developer fee and / or equity contributed as a source to fund the
Project. Deferred developer fee and / or equity will be at least
$3,000,000.
Disbursement: Loan proceeds shall be disbursed as determined in the loan
documents.
Fees: Closing costs and legal fees shall be paid by the Borrower
including, but not limited to, the cost of title search and
insurance, credit reports, and attorney fees. Fees will be payable
at loan closing.
Use of Funds: Funds shall be used for construction and development of 1500
W. North Temple, including, but not limited to: groundwork,
infrastructure, construction, site mitigation, and any similar uses.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
• Close on the purchase of the Property, meeting all the requirements of the Real
Estate Purchase Agreement.
• Secure sufficient sources of financing for the Project. Borrower will maximize
available conventional financing from senior lender, tax credit equity, and funding
from subordinate lenders. Borrower will provide evidence of seeking and
maximizing all available financing opportunities for the Project, including but not
limited to State Olene Walker Housing Trust Fund, Salt Lake County HOME and
Salt Lake City HOME funds.
• RDA approves final schedule of sources and uses and the project proforma.
• Execute loan documents (e.g. promissory notes, loan agreements, security
documents, and guarantees) as deemed necessary by the RDA and its legal
counsel.
• Record land use restriction agreements for affordable housing in the Project.
• Record easement for public access to the mid-block walkway connecting Cornell
Street and 1460 West.
• Receive all necessary approvals from the City, as further defined in the loan
agreement.
• Receive approval from the RDA and its legal counsel of all matters pertaining to
title, legality of the loan, and the legality, sufficiency, and the form and substance
of all documents that are deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the RDA for the Property.
• Such other terms as recommended by the RDA’s legal counsel and staff.
ATTACHMENT D: Spark Project Conceptual Renderings (Subject to Change)
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.
Available Budget $1,599,880
-Spark Allocation $1,500,000
Remaining Budget $99,880
Primary Housing –Property AcquisitionSpark Mixed-Use, Affordable Housing Project
Available Budget $2,936,762
-Spark Allocation $1,500,000
Remaining Budget $1,436,762
North Temple Strategic Intervention Funds
Housing Development Loan Program –Fall NOFA
Available Budget $7,000,000
-Spark Allocation $1,000,000
Remaining Budget $6,000,000
2018 NOFA $2,500,000
2019 NOFA $3,956,000
+ Seller Financing Note $4,000,000
Total Current Loan Amount $6,456,000
+ Primary Housing –Property Acquisition $1,500,000
Total Gap Loan Request $4,000,000
+ North Temple Strategic Intervention Funds $1,500,000
+ Housing Development Loan Program –Fall NOFA $1,000,000
New Project Total Budget $14,456,000
New Loan Amount $10,456,000
Budget Impact: Spark Mixed-Use, Affordable Housing Project in the North Temple Project Area
Available Budget $5,670,186
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $5,420,186
CIP Depot District Project Fund
(Station Center Infrastructure Funds)
Station Center Vision and Implementation Planning
Budget Impact: Station Center Vision and Implementation Planning in the Depot District Project Area
Current Budget $0
+ CIP Depot District Project Allocation $250,000
New Project Total Budget $500,000
+ Central Station Allocation $250,000
Available Budget $664,121
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $414,121
Central Station
Approximate Fund Balance $2,000,000
-RDA Personnel Budget $46,805
Approximate Remaining Fund Balance 1,953,195
Administration Fund BalanceRDA Personnel Budget
Budget Impact: Non-Represented Employee Compensation Study Adjustments
Current Budget $2,480,095
+ Fund Balance Allocation $46,805
New Budget $2,526,900