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06/13/2023 - Meeting Materials ICI®III• 411 �l11s ,,,, Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA June 13, 2023 Tuesday i:oo 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: 09:02:00 A. Comments: i. General Comments to the Board ME5 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: i. I&Pproval of M' 1:05 p.m. 5 min. The Board will approve the meeting minutes of April 11, 2023. 2. Informational:Accessory Dwelling Unit Assistance Program L 1:10 p.m. MIK 30 min. The Board will receive a briefing about progress toward the Accessory Dwelling Unit Assistance Program.The RDA is working to create a program to help low to moderate- income homeowners finance accessory dwelling units (ADUs) construction. 3. redevelopment Agency Budget for Fiscal Year 2023-24 Follow-up - 1:40 p.m. 6 i 30 min The Board will receive a follow-up briefing about the proposed budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. 4. Report and Announcements from the Executive Director TENTATIVE 5 min. Report of the Executive Director,including a review of information items, announcements, and scheduling items.The Board of Directors may give feedback or policy input. 5. Report and Announcements from RDA Stal TENTATIVE 5 min. The Board may review Board information and announcements.The Board may give feedback on any item related to City business,including but not limited to Scheduling Items. 6. Report of the Chair and Vice Chair TENTATIVE 5 min. Report of the Chair and Vice Chair. D. Written Briefings — the following briefings are informational in nature and require no action of the Board.Additional information can be provided to the Board upon request: NONE. E. Consent — the following items are listed for consideration by the Board and can be discussed individually upon request. A motion to approve the consent agenda is approving all of the following items: NONE. F. Tentative Closed Session The Board will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: discussion of the character,professional competence,or physical or mental health of 1' an individual; 2. strategy sessions to discuss pending or reasonably imminent litigation; 3. strategy sessions to discuss the purchase, exchange,or lease of real property: (i) disclose the appraisal or estimated value of the property under consideration; or prevent the public body from completing the transaction on the best possible (ii) terms; 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 and body previously gave public notice that the property would be offered for sale the terms of the sale are publicly disclosed before the public body approves the (iii) sale 5. discussion regarding deployment of security personnel,devices,or systems; and 6. investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code§78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. G. Adjournm CERTIFICATE OF POSTING On or before 5:00 p.m.on Friday,June 9, 2023,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. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 PENDING MINUTES — NOT APPROVED The Board of Directors of the Redevelopment Agency(RDA) of Salt Lake City met on Tuesday, April 11, 2023. The following Board Members were present: Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro Puy, Darin Mano Present Agency Leadership: Danny Walz— Chief Operating Officer Present City Staff: Cindy Lou Trishman— City Recorder, DeeDee Robinson—Minutes&Records Clerk,Thais Stewart— Deputy City Recorder,Taylor Hill— Constituent Liaison/Policy Analyst, Ben Luedtke — Public Policy Analyst, Kate Werrett— RDA Project Manager,Mary Beth Thompson—Chief Financial Officer,Tracy Tran—Project Manager, Stephanie Elliott—Minutes&Records Clerk, Kimberly Chytraus — Senior City Attorney, Lauren Parisi— Senior RDA Project Manager, Erin Cunningham—Financial Analyst IV Director Chair Puy presided at and conducted the meeting. The meeting was called to order at 2:o6 pm 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 A. Comments: 1. General Comments to the Board TENTATIVE ME 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.) No public comments. B. Public Hearing- individuals may speak to the Board once per public hearing topic for two minutes,however written comments are always accepted: NONE. No public comments. C. Redevelopment Agency Business -The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1. Approval of ~2:05 p.m. 5 min. The Board will approve the meeting minutes of February 14, 2023. Motion: Moved by Director Dugan, seconded by Director Mano to approve the meeting minutes of February 14, 2023. AYE:Ana Valdemoros, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro Puy, Darin Mano ABSENT:Victoria Petro Final Result: 6 — o Pass 2. Informational: Housing and Transit Reinvestment Zones Creation Follow-up 2:10 P.M. 20 min. The Board will receive a follow-up briefing about Housing and Transit Reinvestment Zone(HTRZ)overview.This would review potential HTRZ policies, state law changes from the 2023 legislative session,explore potential areas in Salt Lake City where HTRZs could be implemented, and next steps. 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 Lauren Parisi, Kate Werrett and Danny Walz provided information on the Housing and Transit Reinvestment Zone (HTRZ) and reviewed the following information: • Regulations and requirements for the uses, density, affordability and funds for the zoning •Vertical and horizontal construction costs • Targeted housing costs • Objectives of HTRZ implementation in the City/State • Water conservation • Improved air quality • Transit Oriented Development (TOD) • Higher utilization of public transit • Increased availability of housing and affordable housing • 2023 Legislative updates and amendments • Requires State offices to provide feedback and notice • Potential areas in Salt Lake City where HTRZ could be implemented ■ Ballpark ■ S-Line ■ 650 South Main ■ Intermodal Hub ■ Submit the 900 South and 200 West proposals to the State • Details of the RDA and their next steps in the HTRZ process • Update tax increment policy • Implementing HTRZ • Review of zoning and how new growth and developments were anticipated can be non-contiguous—parcel by parcel Directors and presenters discussed-the following: • Application process • How the RDA submitted applications based on highest and best use • How the RDA narrowed the list of proposed locations • Parcel-by-parcel review • Highest and best use for the areas • Survey for feedback on proposed areas ■ Had a low response return from the residents • Number of approved HRTZ areas per County • Maximums of 8 allowed • Approved applications were processed on a first-come, first-served basis • Location of approved HRTZ applications within the State Governors Office of Economic Opportunity Lauren Parisi stated they were located in the following areas: ■ Sandy (application submitted and approved by State) ■ Vineyard (application submitted and approved by State) ■ Does not count towards maximum number—located in Utah County ■ South Jordan(application submitted and not approved by the State) 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 Director Puy inquired about the possibility for the board to implement more specific rules and guidelines for reasonable number of available housing units and requested the following; • RDA include the guidelines in the policy • A list of prioritized zones/parcels from the Board to submit applications for HRTZ Director Fowler requested clarification on the percentage of reasonable number of units with more than one bedroom • Lauren Parisi would look into the State/City definitions for"reasonable number" of housing units in order for the RDA to be in compliance Directors Mano and Puy, on behalf of Director Petro, suggested North Temple & 1800 West be added to the project and asked what the process was to ensure it would be included/continued on with the next steps • Kate Werrett noted the North Temple Project would be included in their proposals. She will gather specific development plans/updates,will monitor the progress and follow up with the Board on current North Temple development. 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 3. Resolution: Bicycle Collective Loan 2:30 p.m. = 20 min. The Board will receive a briefing about, and consider adopting, a resolution that would authorize modifications to the approved loan terms and extending a limited waiver of the Loan Policy for a loan to the Bicycle Collective.The additional amendments and extensions are to facilitate the project receiving New Market Tax Credits.This would fund construction of the nonprofit's headquarters located at approximately 9o1 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. Tracy Tran provided a brief introduction, details of the resolution to amend loan terms, and an overview of the Bicycle Collective Loan,including; • A multi-use building to house headquarters of organization • RDA-owned land and property were conveyed to Bicycle Collective • Requested amendments to loan agreement terms; • Extend locked-in base interest rate that expired today,April 11, 2023 • Disbursement of funds at closing in a lump sum in order to obtain the $1 million equity credit • Reducing the loan amount to $1.4 million and reducing the debt carried • RDA's holds first position lean on property if the Bicycle Collective fails to pay back the loan • Must have funds available at closing to obtain New Market Tax Credit by May 2023 Directors discussed the loan terms and disbursement of the loan payment. Motion: Moved by Director Mano, seconded by Director Valdemoros to adopt Resolution 07 of 2023 Bicycle Collective Loan. AYE:Ana Valdemoros, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro Puy, Darin Mano ABSENT:Victoria Petro Final Result: 6- o Pass 4. Resolution:Affordable Housing Funding Priorities for Fiscal Year 2023-24 2:5o P.M. 'n. The Board will receive a briefing about, and consider a resolution that would adopt the Affordable Housing Funding Priorities for Fiscal Year 2023-24.These Funding Priorities guide the upcoming fiscal year's housing activities including the requirements of the competitive affordable housing Notice of Funding Availability(NOFA). Lauren Parisi and Tracy Tran provided information on the Affordable Housing Funding Project and discussed the following housing funding priorities: • Housing Allocation Funds • Primary • Secondary • Westside Community Initiative • Housing Development • Annual Housing Funding Strategy • Annual Housing Priorities • Housing Activities 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 Housing Fund Allocations Directors discussed the following: • Programs and incentives being provided and implemented • Requested the budget include equitable building opportunities • Concerns with not all housing types being fairly included and where the priority would be given for affordable housing funds • Success of the RDA's prioritization of affordable housing projects for all types of housing Directors Puy and Valdemoros asked for an informational list of what projects the RDA had completed with their impacts and how/where the money was used. Tracy Tran indicated that Attachment A included a list of the approved/completed projects since 2011 and would provide an updated list of current projects if requested by the Board. Motion: Moved by Director Dugan, seconded by Director Fowler to adopt Resolution 08 of 2023,Affordable Housing Funding Priorities for FY 2023-24- AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler,Alejandro Puy, Darin Mano ABSENT: Chris Wharton Final Result: 6 - o Pass 5. Resolution: RM Bu21get Amendment No-3 for Fiscal Yea• - 3:10 P.M. 23 o 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 adjustments to budgets based on actual property tax increment received to satisfy obligations under state law, interlocal agreements with other taxing entities, and reimbursement agreements with private property owners, and several holding accounts for capital improvements and strategic intervention funds for future opportunities in project areas among other items. Ben Luedtke provided a brief introduction on the RDA Budget Amendment No. 3 for Fiscal Year 2022-2023 and discussed the following information on the Budget: • Objectives of tax increment and other revenue adjustments on: • Project area revenue and expense changes • Housing funds changes ■ Decrease in current holding account but retained for property acquisitions • Administrative fund changes • Taxing entity payments • Tax Increment reimbursements • Primary housing contributions • Administrative expenses Fixed vs.Not Fixed ■ Salaries vs. charges and services • Transition holding accounts for extra funds collected to be used for other projects 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 A comprehensive review to be conducted on these accounts once implemented Directors discussed the following items regarding Budget Amendment No. 3: • Funds being paid back to the General Fund vs. staying in the project funding • Discussed keeping funding in the North Temple Project (not paid back into the General Fund) and how the funding would help this project • Erin Cunningham confirmed the RDA has been allowed to keep the funding in debt services to fund other City projects and it would not be put back into the General Fund • Mary Beth Thompson stated that there was nothing in statute restricting the RDA's use of General Funds to fulfill the staffing and administrative costs • Suggestion to have the briefing,public hearing and action all on May 9, 2023 • RDA having used last years assessment for the data being used-noting that numbers would fluctuate based on upcoming assessment from County Director Mono requested an updated timeline and report on when the general fund would be paid back in full. Ben Luedtke said he would return to the Board with more information. Director Fowler requested a table of information regarding the following from Ben Luedtke: • Where the money was coming from • What the money was being used for • Final location of funds • Purpose of funding 6. a ort 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. Item not held. 7. eport and Announcements from RDA Staff TENTATIVE 5 min. The Board may review Board information and announcements.The Board may give feedback on any item related to City business, including but not limited to scheduling items. Danny Walz thanked Ben Luedtke and Erin Cunningham for their work on the Budget Amendment. D. Written Briefings — the following briefings are informational in nature and require no action of the Board.Additional information can be provided to the 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 Board upon request: 1. informational: RDA Arts Funds Updat ritten Briefing The Board will receive a written briefing about the RDA's plan to use $4o8,000 of previously allocated public art funds.The projects will be in line with the Agency Art Policy,which was updated with Board approval in 2021,including further clarification on the Agency's art programming and collaboration process with the Salt Lake City Arts Council. Written briefing only.No discussion was held. 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: Budget for the Redevelopment Agency of Salt Lake _ City for Fiscal Year 2023-24 The Board will set the dates of Tuesday,May 16, 2023 and Tuesday,June 6, 2023 at 7 p.m.to accept public comment and consider approving a resolution adopting the final budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24• 2. Set Date - Resolution: RDA Budget Amendment No-3 for Fiscal Year 2022-2g The Board will set the date of Tuesday, May 9, 2023 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 adjustments to budgets based on actual property tax increment received to satisfy obligations under state law,interlocal agreements with other taxing entities, and reimbursement agreements with private property owners, and several holding accounts for capital improvements and strategic intervention funds for future opportunities in project areas among other items. Motion: Moved by Director Mano, seconded by Director Dugan to approve the Consent agenda. 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro Puy, Darin Mano Final Result: 7— o Pass F. Tentative Closed Sessio The Board will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: discussion of the character,professional competence,or physical or mental health of 1' an individual; 2. strategy sessions to discuss pending or reasonably imminent litigation; 3. strategy sessions to discuss the purchase, exchange,or lease of real property: (i) disclose the appraisal or estimated value of the property under consideration; or (ii) prevent the public body from completing the transaction on the best possible terms; strategy sessions to discuss the sale of real property,including any form of a water 4' right or water shares,if- (i) public discussion of the transaction would: disclose the appraisal or estimated value of the property under (A) consideration; or (B) prevent the public body from completing the transaction on the best possible terms; the public body previously gave public notice that the property would be offered (ii) for sale; and< (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. Item not held. G. 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 11, 2023 Meeting adjourned at 3:50 pm Minutes Approved: Redevelopment Agency Chair Alejandro Puy City Recorder Please refer to Meeting Materials (available at www.data.slc.gov by selecting Public Body Minutes)for supportive content including electronic recordings and comments submitted prior to or during the meeting.Websites listed within the body of the Minutes may not remain active indefinitely. This document along with the digital recording constitutes the official minutes of the Salt Lake City Redevelopment Agency meeting held Tuesday,April 11, 2023 and is not intended to serve as a full transcript. Please refer to the electronic recording for entire content pursuant to Utah Code§52-4-203. 10 ADU Assistance Pilot Program JUNE 2023 BOARD MEETING Sr L�, RDA It is currently the biggest hurdle to ADU construction we are facingll - Local ADU builder " Financing is currently the biggest hurdle to ADU construction we are facingll Sol ! - Local ADU builder i a Plan ADUs Encouraged an Housing " Revise the accessory dwelling unit ordinance milt JN.. k, to expand its application I DETACHED and develop measures ==am= Mon== to promote its use ." A Accessory dwelling units(or ADUs)come in many shapes and styles. - Growing SLCI Goal 1 . 1 . 3 "Salt Lake City should expan . , accessory we ing units . . . in the West Side ." - West Side Master Plan 9= LINE PROJECT DkWl 2 OS eek Can 20t9 2 �� G(' 2020 0 G\t 1 2 o2t o Dkbid 2 8 20t9 2 2020 5 TDISTRICTIDISTRICT3 zoz1 1 DISW 3 7 M r d • L, �� J District 6 ---- 0 • DISTRICT •ate t hl Is the 00 PI DISTRICT 000 0 ® DISTRICT • • 0 80 • District 5 34 202 u= DISTRICT 5=' 0 r s zort 0 0 0 , 0 00 ✓' District 6 11 0 0 0 _ r, 2019 3 00 - 2020 5 0 D�ISTRICT7 0 \l 2021 3 South Sa 0 0 Lake unt v elct 7 17 d0b Dls t5J �o _ 20t9 d 2020 10 � 2021CONDITION4L USE APPLICATIONS �1 1 2021 3 • PPEY10USWARS 171L 3300 5'` q= LVN EjR0J EULIARE A $232k average assessed value hm AA • $47,719 median household income 500 5 • 8,279 sqft median lot size • 89% of residential land zoned R1 II • 4.1 average family size A LLI 0 Historic Redlining RONNIE • County tax increment participation CITY SALT L . ;, �9= LINE PROJECT AREA D HAZARDOUS y.. � h CHALLENGES Zoning restrictions - . . .. . .. . a3 .;.��:�� Al f � Construction costs $100k-$250k ._ i 1 y-o-y escalation since 2020 • options � - Cash-out • Held 12 stakeholder interviews • Surveyed financing programs around the country • Studied ADU zoning code and construction reports Studied 9-Line CRA Plan and West , E{ �C,s Side Master Plan Organized citywide ADU Task Force • Drafted pilot project RFQ - - - - !- • Participated in local and national ADU-related discussions • Visited Glendale and Poplar Grove Community Council meetings PROGRAM GOJJM • Increase the supply of naturally affordable rental housing • Incrementally increase density in low-density neighborhoods _i` • Provide low- to moderate- income homeowners in formerly - _ z--- redlined areas a wealth building opportunity • Increase neighborhood stability and investment WAR - PROGRAM PREFERENCES • Loans or grants • Landlord training and tenant ` 1;} screening • Attached and detachedADUs r . - Cost-cutting strategies Pre approved plans, 1 modular construction etc. ,Ec Compliance monitoring • Affordability (owners or tenants) - RA GG STIONS a ! LU ( is 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 BOARk GGESTIONS • A& r Support for a low- orzero-interest loan • Support for allowing low- to moderate-income homeowners participating in this program to charge market-rate rents to build wealth • Support for pre-approved plans to speed up building permit timeline • Support to help both low- to moderate-income homeowners and � 1 low-income renters through this ADU program; possibly deed restricting to ensure affordable rents a • Support for ADUsthat are built to a high energy efficiency standard IL B20ARAAIM16�� • The Board appropriated $394,000 in FY 2022 budget to fund an ADU assistance program • The Council moved to set aside an additional $1,000,000 for ADU assistance at the April 4, 2023 formal meeting. • RDA is proposing to set aside another $400,000 in FY2024 budget for this program • Possibility of up to $1.8m for program � 1 i 1 � RFQ and RFP P Team Selection and Board Program Release RFQ Shortlist RFP Approval Launch Program (Month 1) (Month 2) Development (Winter2023 (Winter2024 Target) Target) (Month 3) 0&\,OIANr W _ o 9 � �T G LAK E DISCUSSION � MMM �64 • Start with a 9-line pilot first or go into other areas? • Other RDA project areas? • High Opportunity Areas? • Citywide? Staff recommends starting in 9-Line first as a pilot State law would require ADUs outside of RDA project areas to be rented at or below 80% AMI—ideally deed restricted. PMENT � - q w �1 �n�TI`�{ r Cpl.}�,'� �r,lip 9 T G LAKt 2022 ADU Market a nts and SL C PM- M - 1�, 40% 500 $ 700 $ 11050 $ 11400 Req. Income I $ 281000 $ 421000 $ 561000 * 71,688 57,350 43,013 28,675 81,938 65,550 49,163 32,775 • 650 $ 910 $ 11365 $ 11820 Req. Income $ 361400 $ 541600 $ 721800 921188 731750 551313 361875 800 $ 11 120 $ 11680 $ 21 240 102,375 81,900 61,425 40,950 - -q - $ 441800 $ 671200 $ 891600 Rental rates come from observed listings on local classifieds ads Salt Lake County AMI from the Department of Housing and Urban Development Studio ADU Rent Affordability $1,600 $1,400 $1,200 NEEN $1,000 60%AMI 40%AMI 60% AMI 80%AMI $800 1 Person $ 717 $ 1,075 $ 1,434 $600 40%AM $400 $200 Low Rent Avg Rent High Rent 1 Bedroom ADU Rent Affordability $2,000 $1,600 80%AM $1,400 $1,200 60%AMI 40%AMI 60%AMI 80%AMI $1,000 2 People $ 819 $ 1,229 $ 1,639 $800 40%AM $600 $400 $200 Low Rent Avg Rent High Rent 2 Bedroom e nt Affordability $2,500 $2,000 $11500 80%AMI 40%AMI 60% AMI 80%AMI $1,000 60%AM 3 People $ 922 $ 1,383 $ 1,844 40%AM $500 Low Rent Avg Rent High Rent MAYOR ERIN MENDENHALL DANNY WALZ Executive Director ;; ;i . Director n IV W - r'= tools 010 REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: May 26, 2023 PREPARED BY: Austin Taylor, Project Manager RE: Accessory Dwelling Unit Assistance Program REQUESTED ACTION: Briefing on RDA's research and next steps in creating an accessory dwelling unit assistance program POLICY ITEM: Creation of a new accessory dwelling unit assistance program BUDGET IMPACTS: N/A EXECUTIVE SUMMARY The Redevelopment Agency of Salt Lake City(RDA) is working to create a program to help low-to moderate-income homeowners build accessory dwelling units (ADUs). Accessory dwelling unit construction has not yet happened at scale and throughout the city,partly due to cost and financing barriers. The RDA intends to publish a request for qualifications (RFQ) and work with community partners to provide financing options--possibly along with design and construction services--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. 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 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 an assistance program to help low-to moderate-income homeowners build ADUs. 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 assistance 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 wouldprovide 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 assistance program for the 9-Line Project Area. The Council moved to set aside an additional $1,000,000 for ADU assistance at the April 4, 2023 formal meeting. The RDA is proposing another$1,400,000 in its FY 2024 budget for this program. 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 • 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. • Zoning code amendments that the Council adopted on April 4, 2023 addressed every zoning-related issue that architects and builders brought up. This set of code amendments have opened up hundreds—if not thousands--of new lots for ADU development. 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 2020.1 ' https://fred.stlouisfed.org/series/WPU801 2 • 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 investors 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.Z 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 assistance 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 assistance program 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 assistance 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. The RDA will work with its partners to design and launch financing—and possibly other 2 http://www.slcdocs.com/Planning/Reports/2021/ADU%202021%2OReport.pdf/ 3 forms of assistance—that help both the low-to moderate-income homeowner and their future tenants. 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 RDA BOARD MEETING NOTES Staff brought this item to the RDA board at the October 11, 2022 meeting. Board members provided the following points of input: • Support for a low- or zero-interest loan • Support for allowing low-to moderate-income homeowners participating in this program to charge market-rate rents to build wealth • Support for pre-approved ADU plans to speed up building permit timeline • Support for streamlining permitting process • Support to help both low-to moderate-income homeowners and low-income renters through this ADU program; possibly deed restricting to ensure affordable rents • Support for ADUs that are built to a high energy efficiency standard NEXT STEPS Board Input RDA staff will seek Board members' input to finalize 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 assistance program. The RDA may run the program alone if it does not make sense to partner. ADU Assistance Program Proposal RDA staff, with input from the City's ADU Task Force, will work alone or with partner organization(s)to 4 design an ADU financing program. Board Approval RDA staff will bring the ADU assistance program proposal to the Board for final approval before program launch. Program Launch RDA staff will launch the ADU assistance 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 assistance 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 ADURents and Affordability Attachment D:ADUProgram Examples 5 ATTACHMENT A 9-Line Project Area Map and Relevant Data 0 0 o a 500 5 f F EL Relevant Data: • $232k average assessed house value (2022) • $47,719 median household income (2020) • Historic redlining • 8,279 sgft median lot size(2022) • 89% of residential land zoned RI (2014) • 4.1 average family size (2014] 6 ATTACHMENT B Map of Permitted ADUs as of January 2022 and Zoning Map District 1 2 2D21 _ District 2 8 2020 6 DOMICTS DisTliilcT I ® 2021 1 2019 4 2020 i 0 - 2021 2 ! O 0 District 4 8 0 C 1 2019 3 _ DISTRICT 4 2020 3 I A OO 2021 a .-] DISTRICTS a I STiIW--2 0 _ 0 ,. District = i4 _. �I _ DISTRICT 5C' OJ Q ® 0 rn _ � —;�" _ � ea .:b 0 t District 6 11 — 2a09 3 = t 2= b � 2M DISTRICT? District? 17 i 2020 10 O 2021 CONDITIONAL USE APPLICATIONS 2021 S PREMLrS YEARS ��•] 7 Ov 6- ' I "� '1 NOWC' Ill J 1 � �: III' I. ., . �• L._. �' •+�IIr1' JIII III_ � "•��t� '�..i ® 11 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. r �r mmqnwp�SgFt 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. ily Size 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 A $102,375 $81,900 $61,425 $40,950 9 ATTACHMENT D ADU Program Examples Organization Offerings Requirements Program Link City of Interest-free gap financing Internal ADU only https://www.boston.gov/departments Boston, MA up to $50k /housing/addition-dwelling- units/adu- ro ram County of $75k grants ADU must be rented https://planning.lacounty.gov/second Los Angeles, to formerly homeless unitpilot CA City of Napa, $50k forgivable loan ADU must be rented https://www.cityofnapa.org/747/Juni CA at approx. 55%AMI or-Unit-Initiative-Program City of $150k 3yr construction Must be rented to https://www.cityofpasadena.net/hous Pasadena, CA loan at 1% Section 8 tenant; ing/second-unit-adu-program/ must be repaid within 3 years City of $130k 15yr second None https://www.cityofmadison.com/dpc Madison, WI mortgage loan at 2% ed/economicdevelopment/adu-loan- financing/3 809/ Eight Village ADU owned and operated Homeowner allows https://www.backyardatl.com/ Backyard by Eight Village; ADU on their lot ATL homeowner may purchase through ground lease ADU at any time Keys to Technical assistance: None,though the https://keystoequity.org/ Equity design,permitting, program primarily (Oakland, financing construction, and focuses on black CA) property management homeowners La Mas (Los Technical assistance: Homeowner must https:HstaticI.squarespace.com/static Angeles, CA) design,permitting, rent to Section 8 /5840c42cf5e2310b848ee53a/t/5be4 financing, construction, tenant for 5 years c7bcb8a0455819808583/154171999 and property management 7027/LA- Ma%CC%81 s_BackyardHomes_On ePa er 09.24.18+ 1 . df Symbium Software that allows None https:Hsymbium.com/ homeowners to"fit"pre- approved ADU designs on their lot Dweller Prefabricated ADUs owned Homeowner gives https://www.dweller.com/ and operated by Dweller free ground lease and receives 25%of rent 10 RDA BUDGET STAFF REPORT REDEVELOPMENT AGENCY BOARD of SALT LAKE CITY Project Timeline: TO: RDA Board Members 11;1 Briefing: May 16,2023 and June 13, 2023 FROM: Jennifer Bruno, Ben Luedtke and Allison Rowland 2nd Briefing:TBD Budget Hearing:May 16,and June 6,2023 DATE: May 16, 2023 Potential Action:June 13(TBD) RE: Redevelopment Agency(RDA) Budget—FY 2024 BUDGET BOOK PAGES:Key Changes pages 83-92,Department Overview 121-123 and 251-254,Staffing 289-290 Update/New Information The Council has held multiple discussions about housing funding ideas,and straw polled support for funding the items below(in addition to other housing related items).In further discussion with the Administration,several of the projects would make sense to be funded through RDA funding sources.The following amounts relate to the FY 24 RDA budget: Funding Source&Amount RDA Notice of Funding Availability for Housing $6,476,014 from dormant HUD funds Development Partnership with Neighborworks for equity-sharing $1,400,000 from excess North Temple workforce housing project Viaduct Funding $700,000 from Westside Community Initiative Citywide ADU Incentives $ 1,000,00 from Funding our Future Housing dollars Partnership with Salt Lake County for adding housing to $ 2,013,820 from RDA Housing Sunday-Anderson senior center funding sources (combination of RDA,Primary and/or Secondary Housing Funds) Note:As of the printing of this staff report, the Council has not yet straw polled whether to fund a sanctioned camping grant to supplement state sanctioned camping efforts.If the Council were to fund it,it would likely come from flexible RDA housing dollars such as the Funding our Future housing dollars.If there are any contingencies tied to this funding, those would need to be incorporated into the FY24 RDA Budget adoption ordinance. The following information was originally provided for the May 16th RDA meeting.It is provided again for reference. The Redevelopment Agency is a tool of the City,as enabled by State law,that allows for the capture of property tax increment in defined areas to reinvest in communities.The stated mission of the City's RDA is"to revitalize Page 1 1 neighborhoods and business districts to improve livability,spark economic growth,and foster authentic communities,serving as a catalyst for strategic development projects that enhance the City's housing opportunities,commercial vitality,public spaces,and environmental sustainability." The Mayor's FY 2024 Redevelopment Agency Recommended Budget includes tax increment spending in all project areas for projects,loan funds,as well as department administration.See page 251 of the Mayor's Recommended Budget book for an overview of the Department including the full mission statement and core values. Staff has also included Attachment 1 showing the RDA's updated guiding framework adopted by the Board in December 2021,which comprises the mission statement,core values and livability benchmarks.The total proposed FY 24 budget is$75 million which is$11.7 million more(1&6%)than FY23. RDA revenue includes property tax increment,loan proceeds,parking garage and commercial space rental revenues, interest income,an annual transfer from Funding Our Future for affordable housing,and private donations for the Eccles Theater. The largest non-donation source of revenue is tax increment,which will generate$46.8 million in FY 24 from eleven active project areas(up 13.2%from$41.4 million in FY 23). The Administration has provided the following information about the three priority areas for the FY 24 RDA budget: • Affordable Housing Development—In accordance with the FY24 Affordable Housing Funding Priorities,this goal prioritizes the deployment of the Agency's housing funds for the development of affordable housing units through the Housing Development Loan Program,acquisition of strategic property,and the creation of a program to facilitate construction of accessory dwelling units.See Attachment 2 for the Board's approved FY 24 Housing Priorities. • Commercial Opportunities—Staff has continued researching and holding meetings to determine the scope of future Agency commercial assistance programs. An updated loan policy and programs will be presented to the Board in the coming months. The proposed budget includes allocations for Commercial Assistance Programs that will be made available as the Agency's Revolving Loan Fund and Adaptive Reuse programs are updated and approved. Staff note: This is proposed in the"Capital Projects"Account in various project areas,which means that funds will not lapse to fund balance at the end of each fiscal year.A total of$3.8 million across five project areas is proposed in the FY 24 budget. The Board also approved funding for commercial programs in prior years,which is sitting in holding accounts. The Board may wish to schedule a more in-depth discussion about the goals of this program. • Public Infrastructure—The proposed budget includes the allocation of funds for public infrastructure projects such as improvements to the Folsom Corridor area as well as public art in the 9- Line project area. Funds are also proposed for potential improvements and capital repairs that are identified as part of an upcoming Gallivan Center master plan. State law requires that tax increment be used within the project area where it was generated unless it is used for housing affordable at 8o%area median income(AMI)or below.Other agency revenue sources are more flexible and may be spent outside of project areas for housing and economic development purposes,again within state law limitations.(These are listed in the Additional Information section below).Some RDA divisions are funded through pass-through allocations from project areas or other revenue sources(see chart below),which increases flexibility of those funds but reduce available budget in project areas where they originate. The proposed budget for the RDA adds two FTEs for central RDA activities(for a total of 21)and 13 FTEs for Gallivan-related maintenance and programming.(budget for Gallivan-related maintenance and programming is now handled in a donation account,which is unique for a public space). Gallivan funding and FTEs were transferred to the RDA from the Public Services Department in the FY21 annual budget. The following chart outlines the operating budget for each division of the RDA,and separates those that are funded through tax increment,and those that are funded through pass-through revenue from project areas: Page 12 Expenditures by Project Area/Account 2022-23 2023-24 Difference Proposed Proposed Dollars % Project Areas-Funded primarily with Tax Increment: Central Business District $ 27,596,650 $ 24,644,694 $ (2,951,956) -11% Block 70 $ 10,915,154 $ 11,053,759 $ 138,6o5 1% Depot District 1 $ 4,049,587 $ 7,227,9o8 $ 3,178,321 78% Granary District $ 648,546 $ 1,394,593 $ 746,047 115% North Temple $ 449,053 $ 1,351,992 $ 902,939 201% North Temple Viaduct $ 1,2o6,6o9 $ 2,774,419 $ 1,567,810 130% Northwest Quad CRA(North of I-8o) $ 908,ioo $ 1,398,548 $ 490,448 54% Westside Community Initiative (Inland Port Legislation set aside for $ 500,000 $ 1,835,469 $ 1,335,469 267% housing) Stadler Rail $ 72,920 $ 141,297 $ 68377 94% State Street-new in FY23 $ 2,631483 1 $ 5,788,520 $ 3,157,337 L 120% 9 Line-new in FY23 $ 1,477,727 $ 3,455,989 $ 1,978,262 134% Accounts funded internally(with transfers from GF or other project areas) Administration $ 3,998,655 $ 4,428,662 $ 430,007 Iu% Housing Develoment Fund $ 5,230,0001 $ 4,510,953 $ (719,047) -14% Primary Housing Fund $ 1,599,88ol $ 2,394,5821 $ 794,702 1 50% Secondary Housing Fund $ 10,000 $ 1,000,000 $ 990,000 9900% Other Program Income Fund $ 1,556,835 $ 1,449,692 $ (440,915) -28% Revolving Loan Fund* $ 345,0001 $ 226,750 $ (205,000) -59% TOTALS $3595999249 $ 5094339133 $ 14,833,584 42% *RDA Staff indicates the"Commercial Assistance Program"line item in many of the project areas may be administered through the Revolving Loan Fund although it would be tracked in each project Page 3 FY 24 Project Areas funded through Westside Community Initiative Tax Increment (Housing$from Inland Port), Stadler Rail,141,297 1,835,469 Northwest Quadrant CRA,1,398,548�� North Temple Viaduct,2,774,419------ 9 Line,3,455,989___� State Street,5,788,520- Central Business 24,644,694 Block 70,11,053,759 Depot District,7,227,908 North Temple,1,351,992 Granary District,1,394,593 Revolving Loan Fund,226,750 Program Income 1,449,692 Housing Secondary Housing Fuld, FY 24 Multi-use Funds- funded Development 1 "' "' through other sources including Trust Fund, transfers 4,510,953 L Primary Housing Fund,2,394,582 The FY 24 budget continues the process of bringing budgeting for RDA dollars into context with other City department budgets,and it is included in the Mayor's Recommended Budget book. The Department budget is shown in summary form on page 121,and staffing document on page 289. The RDA budget can have follow-up discussions through May and June as needed. It will also have public hearings on May 16 and June 6,with tentative adoption scheduled for June 13. KEY ELEMENTS OF THE MAYOR'S FY 2024 RDA BUDGET PROPOSAL Staff has highlighted key areas of the Mayor's Recommended FY 2024 RDA Budget: 1. Two additional Project Coordinator FTEs—The workload and scope of the RDA Staff has increased in recent years,as the City has increased affordable housing development efforts,created new project areas,and explored additional funding tools like Housing and Transit Reinvestment Zones (HTRZs)and the Westside Community Initiative from the Inland Port allocation.The annual cost for these FTEs is$232,758 per FTE(staff is confirming this figure with finance).The proposed budget includes$190,704 to fund io months of the new positions,recognizing time to hire.See item 4 below for more on how the administration budget is funded. 2. RDA funding for affordable housing—The Mayor's Recommended FY 2024 budget reflects a continuation of the policy approach started in FY 20,to streamline affordable housing development under the RDA and affordable housing programming under the Housing Stability Division of the Community and Neighborhoods Department.Still,some recent efforts to develop permanent supportive housing and community land trust activities have been managed in Housing Stability. One of the initial goals was to create a"one-stop shop"for housing developers seeking financial assistance to deliver affordable housing,recognizing that the RDA can make affordable housing investments Citywide. The total housing investment proposed in the FY 24 RDA budget is$11.2 million,a 53%increase over FY 23 investment levels,not including$4 million transferred from the General Fund as one-time seed funds for the Westside Community Initiative. It should be noted that the Board could choose to allocate additional funds for housing programs from any of the project areas(subject to project area regulations),or program income fund.See chart below for more details on distribution of funds: a. Annually,the RDA proposes a variety of strategies to implement various housing goals of the City with its funding sources.The Board adopted the FY 24 strategy in April. The focus areas for this year are: ➢ Wealth Building Opportunity—Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities,stipends for renters,cooperative housing,and other wealth building models. ➢ Affordable Family Housing—Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes with at least three or more bedrooms.Affordable family housing is generally defined as units with three or more bedrooms affordable to those earning 8o%of the area median income(AMI)or below. ➢ Deeply Affordable Housing—Expand the availability of units for extremely low- income households,thereby providing more housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those earning 40%of the area median income(AMI)or below. ➢ Missing Middle Housing—Promote an array of housing forms such as,but not limited to,smaller apartment buildings,townhomes and accessory dwelling units (ADU)to diversify the City's housing stock and provide more affordable living options for residents. b. Staff has attached the final guiding document and presentation,approved by the Board in April, for reference(see Attachments 2&3) Page 15 c. The Board may wish to discuss with staff a strategy in case no proposals are received that achieve one of the four above goals. Previously the board has made the choice to earmark a certain portion of funds for affordable housing in high opportunity areas, and make it available over multiple fiscal years pending successful applications because it is especially hard for the market to deliver. d. The following chart summarizes the sources and proposed uses in the various accounts: FY 202$ FY20241 Change Ado ted Proposed Line Project Area ADU funds o 1,455,68o 1455,680 Secondary Housing Fund(formerly Project Area Housing Fund) Sources Transfer from Depot District o 1,000,000 1,000,000 Interest Income 10,000 0 (10,000) Uses Housing Property Acquisition 1,000,000 1,000,000 9 Line ADU Program(Shift to 9 Line Project area) 10,000 0 (10,000) Total Secondary Housing Fund M 10,000 1,000,000 990,000 Primary Housing Fund(formerly Citywide Housing Fund) Sources Transfer from Depot 799,917 1 1,084,487 284,570 Transfer from State street 263,118 442,381 179,263 Transfer from 9 Line 147,773 265,378 117,6o5 Transfer from Granary 126,709 22o,662 93,953 Transfer from North Temple 88,811 201,743 112,932 Transfer from NWQ 90,310 139,855 49,545 Loan Repayments 23,000 23,567 567 Transfer from Stadler Rail 7,242 14,130 6,888 Interest on Loans 3,000 2,379 (621) Interest Income 50,000 1 0 (50,000) Uses Shared Equity Husing 1 0 1,013,820 1,013,820 Housing Development Loans 1 0 1,000,000 1,000,000 Salt Lake School District Housing 1 O 380,762 380,762 Housing Properly Acquisition(mouing to Secondary Housing Fund) 1,599,880 O (1,599,880) tal Primary Housing Fun i 1,599,88o 2,394,5 1JJJlJMPr4,702 Westside Community Initiative(NWQ Housing) Sources Increment set-aside from Utah Inland Port Authority 500,000 1,401,589 901,589 PY'23 Transition Appropriation 433,88o 433,880 Uses Shared Equity Housing 0 1,835,469 1,835,469 Housing Development Loan Program 500,000 0 (50q ) Total we tside Community Initiative 500,000 1,835,469 ,335,469 Housing Development Fund Sources Funding Our Future Land Discounts and Financing 2,590,000 2,590,000 0 Reallocaiton of excess North Temple Viaduct Increment 1,000,000 1,700,000 700,000 Loan Repayments 1,370,000 144,390 (1,225,61o) Interest on Loans 255,000 76,563 (178437) Interest on Investment 15,000 O (15,000) Uses Housing Development Loans 4,230,000 4,510,953 280,953 Housing Properly Acquisition(moving to Secondary Housing Fund) 1,000,000 0 (1,000,000) Total Housing Development Fund 5,230,000 4,510,953 (719,047) Total All Housing Funding 7,339,880 11,196,684 3,856,804 e. Housing Property Acquisition and clarifying different housing funds-The Administration has provided the following additional information about these line items and clarity among the funds: Page 6 ...we intend to prioritize the Agency retaining ownership of its land to preserve public benefits such as affordable housing in perpetuity. The Primary Housing Fund receives the statutory required allocation of affordable housing funds from project areas and is charged with spending these on housing at or below 8o%AML The Secondary Housing Fund receives allocations from project areas that don't carry this requirement(CBD)or transfers over and above what is required under statute or as part of negotiated Interlocal Agreements. Secondary Housing funds can be spent at AMI levels as determined by the Agency. Both funds are authorized as part of 17C and carry requirements for separate tracking. It's easiest to think of[primary housing fund]as the housing funds we must contribute and for a stated purpose,whereas the [secondary housing funds]are additional funds that we choose to contribute and have a little bit more flexibility in their use." f. Westside Community Initiative—This initiative is funded from the 1o%set aside from tax increment in the Inland Port jurisdictional boundary,as mandated by the State's Inland Port enabling legislation.It started receiving revenue in FY 22. ➢ In a FY 22 Budget Amendment,the Council approved dedicating$4 million from ARPA dollars towards this initiative as seed funds,although later the Administration shifted this to be funded from the General Fund which are more flexible dollars in order to preserve options.In RDA Budget Amendment#3,the Board approved expenditure of these funds to facilitate property purchase on the Westside that could eventually be used consistent with the previous policy discussions on the topic.After that expenditure the balance is$1.8 million.If tax increment is larger than proposed, that balance will be higher,although that information will not be available until March of 2024. ➢ Some Board Members have expressed an interest in specific projects consistent with the goals of the Westside Community Initiative,and larger conversations about equity-sharing models.The Board may wish to discuss that at this time,since the appropriation for a project could be made directly in the FY 24 budget. 3. Transition Holding Accounts and Midyear Budget Amendments—It should be noted that the Board sometimes approves millions in additional funding for projects and programs in budget amendments throughout the fiscal year.Based on feedback from previous budget years,RDA Budget Amendment#3 and the Mayor's Recommended Budget use a new approach called"transition holding accounts"that carry forward actual property tax increment received(after meeting legal obligations)to be considered in the next annual budget.This approach is meant to streamline budgeting by avoiding multiple funding requests for the same projects in the final budget amendment of the year and in the annual budget.The Council asked for this to be included in the context of the overall budget discussion so all funding requests and ideas could be considered in context.The Board may wish to discuss how they would like to allocate these funds.The only limitation on these funds is that they need to be used in accordance with the project area guidelines. Transition Appropriation Accounts Depot District $ 1,805,473 Grana $ 291,284 _North Temple $ 343,277 State Street $ 1,364,709 9 Line $ 802,208 Total $ 4,6o6,95i 4. Administrative Budget—The FY 2024 budget includes transfers of tax increment revenues to cover the approximately$4.4 million Administrative budget,which includes 2 additional FTEs to the central RDA staff and raising the total to 21 FTEs). The 13 FTEs related to the Gallivan Center are budgeted in Page 17 the donation account,although they are considered under the purview of the RDA,as reflected in the staffing document.The following charts delineate the sources of funding for the Administrative budget, as well as the specific uses: RDA Administrative Budget-Sources FY 2022 FY 2023 FY 2024 % Adopted Adopted Proposed $Change Change Central Business District $ 2,757,315 $ 2,757,315 $ 2,464,469 $ (292,846) -it% Depot District $ 588,175 $ 599,938 $ 813,365 $ 213,427 36% Granary District $ 93,168 $ 95,032 $ 165,496 $ 70,464 74i6 North Temple $ 43,535 $ 44,405 $ 1oo,872 $ 56,467 127,06 North Temple Viaduct (limited to 1.5%of increment) $ 17,722 $ 18,077 $ 41,616 $ 23,539 130% Stadler Rail $ 7,100 $ 7,242 $ 7,o65 $ (177) -2% Northwest Quadrant CRA $ 150,000 $ 90,310 $ 139,855 $ 49,545 55%6 State Street $ - $ 263,118 $ 442,381 $ 179,263 68% 9 Line $ - $ 118,218 $ 253,543 $ 135,325 114% West Temple Gateway $ 50,000 $ 5,000 $ - $ (5,000) -100% Block 70 (does not allow for Administrative collection) $ - $ - $ - $ - n/a NWQ Housing Fund (1o%from Inland Port Area- not intended for Admin) $ - $ - $ - $ - n/a Revolving Loan Fund $ - $ - $ - $ - Program Income Fund $ - $ - $ - $ - Primary Housing Fund $ - $ - $ - $ - Total $3,707,015 $ 3,998,65.5 $ 4,428,662 $ 4305007 11% Stadler Rail Northwest 0% Quadrant CRA 3% North Temple Viaduct (limited to 1.5%of increment) 1% North Temple 2% Granary District 4% Central Business District Page 8 RDA Administrative Budget-uses FY 2024 FY 2023 Adopted Proposed Change % Personal Services-RDA $ 2,480,095 $ 2,756,779 $ 276,684 12% Operating and Maintenance $ 300,000 $ 375,000 $ 75,000 21% Charges and Services $ 218,560 $ 296,883 $ 78323 39% Administrative Fees $ 1,000,000 $ 17000,000 $ - 0% Furniture,fixtures,equipment $ - $ - $ 0% Total RDA Budget $ 3,998,655 $ 4,428,662 $ 430,007 u% a. No official policy guides how much each district contributes to the administrative budget, although to some extent it is related to available increment. The Central Business District is typically the largest contributor,although the percentage has varied. In FY 24 it is proposed to provide 56%of the administrative budgt compared to 71%in FY 23(the CBD project area expires in 2042). The Board may wish to ask the Administration to evaluate the overall strategy for funding the administrative budget in future years,particularly as project areas expire. The Administration has indicated draft recommendations will be developed for the Board to review.For example,the Depot District will stop collecting tax increment after 2024 and that project area contributes 18%of the proposed FY24 administrative budget. Staff note: there is no statutory prohibition against using General Fund dollars to fund Redevelopment Agency employees,since they are City employees. The City's elected officials could elect to reimburse RDA for a portion of the housing duties that they perform. b. Because RDA revenues are estimated and can come in either higher or lower than projected, the Board may wish to discuss policy guidance on how the RDA should handle unexpected shortfalls in tax increment revenues,particularly as it relates to the administrative budget,which is generally a fixed and ongoing cost(salary and benefits).Staff is inquiring about the level of fund balance remaining after this budget.Board Members previously expressed interest in aligning project area fund balances with fixed costs and contractual obligations to ensure sufficient funding is available to cover those expenses if tax increment significantly decreases in a future year. Page 19 5. Redevelopment Agency Capital Project and Holding Account Proposals—The FY2024 RDA budget includes funding for 25 capital projects and/or holding accounts.Overall funding for RDA capital projects is$24,6ol,818 across all project areas and funds.The table below provides a summary of the FY2024 proposed projects,provides a brief description,the dates that funding was approved by the Board in earlier budget openings,and potential policy questions for the Board to consider.Holding accounts are sometimes created when the RDA staff recognizes that multiple years of funding are needed to facilitate a major project(such as the Station Center infrastructure project),or when a proposal is still in the development process(such as the Commercial Assistance Loan Program). FY2024 Review of All RDA Account Balances with New Workday Financial System—The Board adopted a FY2023 legislative intent to review all RDA accounts with positive balance to ensure the projects and programs still align with current Board policy priorities.The City is shifting to a new financial system called Workday which is expected to go live on July 1,2023,to coincide with the start of FY2024. Advisory Board Review of RDA Capital Project Proposals—The Board may wish to consider whether it would add value to encourage the Administration,in future years,to have RDA capital project requests go through the same public process/resident advisory board vetting and recommendations that General Fund CIP applications do.The Board has previously discussed that opportunities to leverage RDA funds with other City and private resources are enhanced when the information is processed in concert. Capital Project Accounts Do Not Lapse at End of Fiscal Year—If approved by the Board,these would be considered capital accounts and funds would not lapse to the project area's fund balance if unspent by the end of the fiscal year. Project Area Project Name FY2024 Description Policy Questions Proposed Funds to implement repairs and capital How would the Gallivan Utah Center Owners improvements to support future programming Association(GUCOA)be involved in the plan Central Gallivan Capital at Gallivan Center based on the pending master development and cost sharing for repairs and � Business plan.The Board approved$ioo,000 in the improvements to the common areas. District Improvements FY2023 annual budget to develop the master or Repairs based $ 509,738 plan.It is currently going through the RFP Would the Board have a chance for an (subtotal on pending process and is estimated to take a year to interim check in briefing to provide early $409,738) Master Plan complete a draft plan. policy guidance as the Council does for City master plans? CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET,ROOM 304 SLCCOUNCIL.COM P.O.BOX 145476,SALT LAKE CITY,UTAH 84114-5476 TEL 801-535-7600 FAX 801-535-7651 Project Area Project Name FY2024 Description Policy Questions Proposed Additional funding for public infrastructure The Board may wish to ask for a status improvements to the two block Station Center update and timeline for the Station Center area between 200 South and 400 South and Vision and Implementation Plan.The Board 500 West and 60o West.Improvements approved$500,000 in Budget Amendment include creation of new street segments to #2 to create the plan.See policy question 2 Station Center create smaller block sizes,utility upgrades to about governance structures. Infrastructure allow greater building densities,and a Festival Improvements $ 3,680,056 Street(300 South)amenities The Board may wish to ask how the project would move forward if there weren't enough Holding Account If these funds are approved,then the total property tax increment to cover the total available funding for the project would be project cost.The Depot District's last year of approximately$8.1 million.The total project property tax increment collection is 2024. Depot cost has been estimated at$15 million. District This is one of multiple proposed holding The Board may wish to ask whether these (subtotal accounts for commercial assistance pilot funds may be needed to close the funding gap $4,180,056) programs in different project areas.The for Station Center infrastructure Administration is developing draft policies for improvements(see item above). the pilot program that would come to the Board Commercial for review and adoption. The Board may wish to ask how this relates to Assistance the$931,835 in the Program Income Fund Program $ 500,000 approved in FY2023 and$667,535 approved in FY2022 for a commercial revitalization Holding Account program.There have also been related appropriations for expanding the Adaptive Reuse Program beyond the Granary District and creating a Storefront Activation Program. Page I ii Project Area Project Name FY2024 Description Policy Questions Proposed This is one of multiple proposed holding The Board may wish to ask how this relates to accounts for commercial assistance pilot the$931,835 in the Program Income Fund Granary Commercial programs in different project areas.The approved in FY2023 and$667,535 approved District Assistance Administration is developing draft policies for in FY2022 for a commercial revitalization the pilot program that would come to the Board program.There have also been related (subtotal Program $ 1,003,435 for review and adoption. appropriations for expanding the Adaptive $1,003,435) Holding Account Reuse Program beyond the Granary District and creating a Storefront Activation Program. Based on an Interlocal Agreement with the SLC Contractual obligation per Interlocal io%School Fund School District,the Agency is obligated to set Agreement with School District $ 39,526 aside lo%of the tax increment generated for Holding Account improvements that benefit schools served by the project area. A holding account for multiple potential uses The Board may wish to clarify with the depending on opportunities that arise in the Administration whether the strategic Strategic project area such as property acquisition, intervention fund and infrastructure Intervention public infrastructure improvements,site improvements fund are part of the existing North Fund $ 285,490 development,etc. catalytic development fund for North Temple or have different policy goals.The balance of Temple the catalytic development fund was not Holding Account available at the time of publishing this staff (subtotal report. $1,o18,293) This is one of multiple proposed holding The Board may wish to ask how this relates to accounts for commercial assistance pilot the$931,835 in the Program Income Fund Commercial programs in different project areas.The approved in FY2023 and$667,535 approved Assistance Administration is developing draft policies for in FY2022 for a commercial revitalization the pilot program that would come to the Board program.There have also been related Program $ 543,277 for review and adoption. appropriations for expanding the Adaptive Holding Account Reuse Program beyond the Granary District and creating a Storefront Activation Program. Page 112 Project Area Project Name FY2024 Description Policy Questions Proposed The Board approved$284,753 in the FY2023 The Board may wish to clarify with the Infrastructure annual budget for this same item.The new Administration whether the strategic Improvements balance would be$384,753 if this item is intervention fund and infrastructure $ 100,000 approved. improvements fund are part of the existing Holding Account catalytic development fund for North Temple or have different policy goals. Concept and feasibility designs for resurfacing The Board may wish to discuss with the or"daylighting"a portion of City Creek.This Administration how the project would move City Creek $ 50,000 project would be adjacent to the separate forward if property tax increment is Daylighting Folsom Trail project. insufficient to fully fund the total estimated cost which could be millions of dollars. Additional funding to a reserve account to meet The Board may wish to ask when a structural potential obligations in the future that are assessment could be done to determine the required under the contract with PRI which age,remaining useful life,and costs for major provides parking for the Eccles Theater. Under repairs and replacement. the agreement,the Agency is required to Regent Street contribute towards the maintenance and long Parking term capital repairs of the parking Structure Capital structure.The approved$163,681 in FY2022, Reserves $ 100,000 $1oo,000 in the FY2023 annual budget and is considering another$2,226 in RDA Budget Block 70 Holding Account Amendment#3.If this additional funding is approved,then the total available would be (subtotal $365,907• $200,000) The Board approved$1oo,000 in Budget Amendment#2 of FY2022 for the same Bennion purpose.This relocation assistance is related to Jewelers $ 100,000 the Eccles Theater development.The Relocation Administration stated the$200,000 total appropriation will fulfill the agency's responsibility under the agreement. Page 13 Project Area Project Name FY2024 Description Policy Questions Proposed Additional funding to a reserve account for a portion of the tax increment as approved within the project area budget.The funds are Northwest first prioritized for redevelopment activities that benefit the entire NWQ Project Area,are Quadrant Shared Costs system wide,or that benefit multiple property (subtotal Holding Account $ 139,854 owners or parcels. $139,854) If this funding is approved and the request in Budget Amendment#3,then the holding account would have a balance of$705,120. A holding account for multiple potential uses depending on opportunities that arise in the project area such as property acquisition, Strategic public infrastructure improvements,site Intervention $ 3,364,709 development,etc. Holding Account If this funding is approved and the request in Budget Amendment#3,then the holding account would have a balance of$4,995,892• This is one of multiple proposed holding The Board may wish to ask how this relates to State Street accounts for commercial assistance pilot the$931,835 in the Program Income Fund Commercial programs in different project areas.The approved in FY2023 and$667,535 approved (subtotal Assistance Administration is developing draft policies for in FY2022 for a commercial revitalization $4,903,758) Program $ 1,239,049 the pilot program that would come to the Board program.There have also been related for review and adoption. appropriations for expanding the Adaptive Holding Account Reuse Program beyond the Granary District and creating a Storefront Activation Program. The funds would be used to hire a consultant to develop a Vision and Implementation Plan for Ballpark the stadium and surrounding properties based Planning $ 300,000 on the Ballpark Next competition and the Ballpark Station Area Plan.The RDA would be the lead agency on the effort. Page 114 Project Area Project Name FY20�4 Description Policy Questions Proposed Additional funding for an ADU pilot program. The Board wish to ask for an update on plans This is a required performance benchmark by for an RFQ to potentially partner with Salt Lake County to unlock additional tax external organizations to create and operate increment participation for the project area. the pilot program. Accessory The program is envisioned as providing Dwelling Units financial incentives for construction of ADUs Pilot Program $ 1,455,68o potential with deed restrictions on rent Holding Account affordability levels. If this item is approved,then the total funding in the holding account would be$1,880,7o6. 9-Line This is one of multiple proposed holding The Board may wish to ask how this relates to accounts for commercial assistance pilot the$931,835 in the Program Income Fund (subtotal programs in different project areas.The approved in FY2023 and$667,535 approved $2,455,680) Commercial Administration is developing draft policies for in FY2022 for a commercial revitalization Assistance the pilot program that would come to the Board program.There have also been related Program $ 510,010 for review and adoption. appropriations for expanding the Adaptive Holding Account Reuse Program beyond the Granary District and creating a Storefront Activation Program. A holding account for multiple potential uses Strategic depending on opportunities that arise in the Intervention $ 500,000 project area such as property acquisition, public infrastructure improvements,site Holding Account development,etc. Address is 2234 South Highland Drive. The Board may wish to ask whether the Program adjacent old Fire Station#3 would also be Income Fund Demolition of demolished.How does demolition of the former Deseret building(s)relate to extending the S-Line Industries Site in $ 550,00o Streetcar to Highland Drive? (subtotal$550,000) Sugar House Page 15 Project Area Project Name FY2024 Description Policy Questions Proposed These funds could be included in an upcoming The Board may wish to ask for clarity how Shared Equity Notice of Funding Availability(NOFA) these funds relate to other City shared equity Housing housing efforts like the Community Land $ 1,013,820 Trust,Westside Community Initiative,and Holding Account proposed Perpetual Housing Fund with an external nonprofit housing developer. Primary Housing For inclusion in an upcoming Notice of Housing Development Funding Availability(NOFA) Fund Loans $ 1,000,000 (subtotal Holding Account $2,394,5$2) Salt Lake City This set aside for family sized housing is a School District requirement of some interlocal agreements Family Sized between the RDA and Salt Lake City School Housing $ 380,762 District.These funds could be included in an upcoming Notice of Funding Availability Holding Account (NOFA) Note there are also housing property Secondary acquisition accounts in the Primary Housing Housing Housing Fund and Housing Stability Fund.Keeping the Fund Property accounts separate is largely to help with Acquisition $ 1,000,00o tracking and reporting for compliance. (subtotal Holding Account $1,000,000) The Westside for purposes of this program are The Board may wish to ask for clarity how Westside defined as west of Interstate 15.Eligible uses these funds relate to other City shared equity Community Shared Equity and policy priorities for the funds are set in the housing efforts like the Community Land Initiative Housing Housing Allocations Fund Policy Trust, $i million holding account in the $ i,835,469 Primary Housing Fund,and proposed (subtotal Holding Account Perpetual Housing Fund with an external $500,000) nonprofit housing developer. Page 116 Project Area Project Name FY2024 Description Policy Questions Proposed For inclusion in an upcoming Notice of This funding includes $1.7 million from the Funding Availability(NOFA) North Temple Viaduct transfer to the Debt Service Fund above the annual bond Housing payment.The Board recently expressed a Development preference that these funds be reinvested Fund Housing along the North Temple Corridor.The Development $ 4,510,953 current proposal is to make the funds (subtotal Loan Program available citywide.The Board may wish to $4,230,000) discuss whether to designate the funds for housing development along the North Temple Corridor or use citywide. TOTAL $ 24,6oi,818 Page 17 6. Other highlights of FY 2024 RDA budget a. Program Income Fund—The primary source of funds for this account are revenues generated from the Gallivan parking structure(approximately$1.2 million per year). The budget also includes rents for RDA commercial spaces. It is the most flexible funding in the RDA portfolio,as State law does not place limitations or expectations for how and where funds are spent. In recent years this account has been used to fill funding gaps for infrastructure projects in the Central 91h area and Station Center,provided funding to assist with strategic acquisition along North Temple,as well as provide seed funds for new project areas(9-Line and State Street). This year the Administration is proposing to use these funds as follows: Program Income Fund FY 2023 FY 2024 Sources Adopted Proposed Change Parking Structure Income $ 11243,335 $ 1,242,336 $ (999) Rents $ 215,700 $ 161,264 $ (54,436) Loan Repayments $ 39,000 $ 38,640 $ (36o) Interest on Loans $ 8,800 $ 7,452 $ (1,348) Interest Income $ 50,000 $ - $ (50,000) Proposed Uses Capital Project-Sugarhouse DI Demo $ - $ 550,000 $ 550,000 Professional Services $ 300,000 $ 330,000 $ 30,000 Miscellaneous Property Expense $ 300,000 $ 330,000 $ 30,000 Gallivan Maintenance $ - $ 214,692 $ 214,692 Marketing and Sales $ 25,000 $ 259000 $ - Commercial Loans Holding Account $ 931,835 $ - $ (931,835) Total Program Income Fund $ 1,556,835 $ 1,449,692 $ (107,143) b. Miscellaneous Property Expense. This is a line item that appears in various project areas and is not covered by the RDA Administrative budget. It covers things like maintenance, security,and property taxes for properties owned or managed by the RDA. Actual expenditures vary year to year,and any unspent funds lapse to that project area's fund balance. Miscellaneous Property Expense Allocation by Property Ar FY 2023 FY 2024 Change %Change Adopted Proposed Central Business District $ 1,000,000 $ 1,000,000 $ - 0% Depot District $ 125,000 $ 150,000 $ 25,000 20% Granary District $ 5,000 $ 5,000 $ - 0% Program Income Fund $ 300,000 $ 330,0001 $ 30,000 10% Totall $ 1,430,000 $ 1,485,000 1 $ 55,000 4% • Due to the unique nature of some RDA properties, the RDA obtains insurance separately from the City's "self-insured"approach for City properties. The Board may wish to ask the Administration to evaluate if there are any opportunities for savings or streamlining in this area for certain RDA properties. • The Board may wish to ask the Administration if this line item will be needed in future years for the 9 Line,North Temple, and State Street project areas, as property acquisitions are increasing in those areas. c. Revolving Loan Fund(RLF)—The FY 2024 budget proposes$345,000 in additional revenue to lend.The source of funding for the RLF is primarily repayments on loans and interest earnings.Combined with previous years of funding the Administration indicates that CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET,ROOM 304 SLCCOUNCIL.COM P.O.BOX 145476,SALT LAKE CITY,UTAH 84114-5476 TEL 801-535-7600 FAX 801-535-7651 there is$4.5 million available to lend as of December 31, 2022(although that does not include the recent$1.4 million Bicycle Collective loan).Additional information is forthcoming. The Board may wish to discuss with the Administration if they are aware of any pending requests for these funds. d. Regent Street Maintenance-The Block 70 CDA budget includes an$80,00o allocation to the City General Fund for Regent Street Maintenance,given the enhanced features of the street are beyond typical City standards. The Attorney's Office indicates that tax increment funds can be used to maintain public infrastructure. The Board may wish to ask the Administration if this transfer is the long-term plan for maintenance on Regent Street when the Block 7o CRA ends in 2040, and what the City's policy may be in other enhanced-infrastructure areas(e.g., Central Ninth streetscape improvements,Station Center in the Depot District, daylighting City Creek near North Temple). e. Gallivan Employees and Maintenance-The proposed budget continues the management of the 13 Gallivan employees and maintenance under the RDA(accounting is separated from the General Fund). The Board may wish to ask the Administration for a review of how this approach is working compared to the previous approach of managing those employees in the General Fund(Public Services Department),particularly as it relates to service level and programming,and whether additional resources are needed to encourage activity downtown post pandemic. f. Interest Income and Rental Income-The RDA budget includes a new approach for budgeting interest income given the last few years of experience in terms of actual versus budgeted amounts.The proposed budget includes revenue of$o for interest income and the Administration indicates that their intention is to come back to the board in the FY 25 budget, with a budget proposal that reflects the actual revenue received in FY 24. While interest rates are increasing,the RDAs cash balances are lower than in previous years due to efficient expenditure of budgeted monies.In previous years,the total amount generated from interest income in various project areas has been around$1 million. g. Trend in Increment Received-During the FY 19 budget cycle the Administration noted that actual increment received in a number of districts was lower than in previous years,which did not track with the overall increase in total property valuation in the City. Since that time the Administration worked with County staff and a consultant who have determined that it was an "anomaly,"and actual revenue received since then tracks more consistently with valuations.For FY 23 the RDA has continued the practice of projecting tax revenues at 8o%of what was actually received in the previous year,to help account for these potential fluctuations.Staff has provided information on selected tax increment for Board context(shown in independent charts because of the dollar amount differences).This trend information is available for all project areas. Page 119 Selected Project Area Revenue Trends $3o,mo,o00 $25,000,000 Szo,00o,000 S1s,00o,000 S1o,000,000 $s,00o,000 $ Central 0uslness0I-. oepo DiAnd BI.&70 state meet Em .2019 $22,9 ,000 $3,.1,.0 $1,61o,000 •202o $24,575,000 $3,]fi8,90o $1,847,677 •2021 21,ofi6,— 3,844,278 1,884,fi31 •2122 $27,573,150 $3,921,164 $1,922,323 •2023 27,596,650 4,049,587 1,922,323 2,631183 •2024 24,64t,694 5,422,435 1,829,228 4,423,811 Selected Project Area Revenue Trends $2,000,0oo $1,80o,0oo $1,600,000 $1,aoo,000 $1,200,OGD $1,Doo,000 $800,000 $600,000 $400,000 $200,000 $ Granary District North Temple Westside Community Initiative(Housing$from Inland Port) ■2019 $508,000 $318,000 ■202D $597,005 $418,441 ■2021 608,945 426,810 ■2022 $621,124 $435,346 250,000 1112023 648,546 449,053 500,000 ■2024 1,394,593 1,351,992 1,835,469 h. North Temple Viaduct Debt service—The RDA created the North Temple Viaduct project area specifically to help offset the debt incurred by the City to issue bonds to rebuild and shorten the North Temple Viaduct in 2012,and to facilitate development in the adjacent area. All increment except a small percentage for administration is transferred to the general fund to offset this annual payment. The chart below provides a summary of tax increment received, annual debt service payment made by the City and the tax increment as a percentage of those debt payments.In the early years of this arrangement,the tax increment generated was not sufficient to cover the full debt service payment,so the general fund covered the remainder. However,starting in FY19,actual tax increment received exceeded debt service payments. In FY 21,the Board re-purposed this surplus to re-invest on North Temple in the soon-to-open State Fair Park International Public Market.In FY 23,the Board approved using the excess$1 million of this available overage to invest in the Housing Development Fund,to increase the number of affordable units in the City.For FY 24 the Mayor is proposing to increase the Housing Development Fund by$1.7 million with this source.Note:This recommendation was made before the Board's discussion that the intent for this overage is to make improvements in the North Temple Area. The Board could ask the staffto earmark these funds for housing development in that area, or direct those funds towards another purpose in the area. Page 1 20 North Temple Viaduct Annual Bond Payments by Year and RDA Tax Increment Contribution $3,000,000 350.0% $2,500,000 300.0% 250.0% $2,000,000 ' 200.0% $1,500,000 150.0% $1,000,000 100.0% $500,000 50.0% $- y y y y y y y 0.0% (0 ': ~^'. lb.' 9�.. {ry0: Y'ry4So.40 �ryb RDA Tax Increment Transfer to General Fund for Debt Service Total Annual Debt Service Payment for Series 2o12A Bond —Tax Increment as Percent of Debt Payment i. Eccles Theater Site Operations&Regent Street Activation—Per the terms of the operating agreement with Salt Lake County,the City/RDA are responsible for any operating costs(net of revenues)that the County experiences in operating the ancillary sites around the Eccles Theater(Black Box,Regent Street Plaza,and Winter Garden). The FY 24 budget proposes$475,000 for this purpose,which is flat from FY 23,and could be less than this if activities continue to rebound post-pandemic. The FY 24 budget also includes a recommendation for an additional$25,000 to program the McCarthy Plaza and Regent Street. Consistent with the Council's initial goals for the construction of the Eccles Theater,the UPACA Board continues to ask County staff to find innovative ways to increase programming in the spaces,with a primary goal of activation rather than purely revenue generation. j. Block 7o Debt Reserve—Each year the RDA funds a certain reserve for Debt Service for the Eccles Theater,to cover years when tax increment for the block is insufficient to cover payments (originally projected to be a span of 5-8 years,depending on projections). As of FY 23 the debt service reserve was approximately$5.1 million. This is kept in a capital account that does not lapse to fund balance each year.RDA staff worked with finance to recalculate the exact amount of this gap. In 2o18 it was calculated to be$7.5 million. Tax increment grew at a faster rate in Block 70 which allowed this gap to shrink. An updated analysis from the RDA and Finance concluded the current reserve balance of$5.1 million and projected tax increment growth are anticipated to be sufficient to fully cover the funding gap through FY2029.Staff is including the graph below,from 2018,to illustrate the RDA's original reasoning for establishing a debt service reserve.Annual bond payments are shown as the red line and available resources are shown as the blue line. Page 121 Block 70 Annual Bond Payments and Projected Revenues 12 0 11.5 11 *4 10.5 .Q 10 $7.5 Million Funding Gap jp, 9.5 y 9 A e� 8.5 r. 8 7.5 7 1� ry0 p ry0 ryry ry0 ry0 ry0 01 ryo ryb ry0 4l ry0 g�O ry0 g� PIP h0 ry0 ry0 Year Regent Street Bond Ends in 2029 Eccles Theater Bond Ends in 2038 County Tax Increment Capped at$43 Million,Ends Approx.2035 Note:this chart was prepared for the FY18 budget cycle. It is included in this staff report to illustrate the RDA's original reasoning.for establishing a debt service reserve,which at a level of$5.1 million,is now sufficient to cover any gaps. GENERAL POLICY QUESTIONS 1. Project Area/Workload Prioritization—The Board may wish to continue the discussion of project area and/or staff workload prioritization. In January 2020 the Board approved two resolutions establishing survey boundaries for potential Community Reinvestment Areas at the University of Utah Research Park,and discussions are ongoing. Additionally,Staff is continuing to work on Housing and Transit Reinvestment Zones(HTRZs),and is in continued discussions about new project areas to facilitate developments around the Granary District,which is soon to expire. RDA staff also is critical to the City's efforts during State legislative discussions about changes to the City's development tools, which is an increasing workload compared to previous years.Affordable housing development in the City is also an overarching workload handled by RDA staff,as is work on some of the programs approved by the Board last fiscal year and proposed this fiscal year,such as the ADU program.The two new FTEs may help with this increased workload,but the Board may wish to have additional discussions. 2. Evaluation of Public/Private Partnership Models and proposals with alternate governance models-As the City and RDA consider the public-private partnership ideas that are periodically raised,the Board/Council could consider a policy discussion to provide staff guidance about the extent to which they are willing to consider separate or alternative governance models outside the typical City structure. Public-private partnerships are raised as a potential tool,and the Board may consider lessons learned from other multi jurisdictional entities(Downtown Alliance,UPACA Board, Inland Port Board,Fairpark Authority).A review of these different models could help future models establish role clarity,transparency expectations,and staff accountability upfront. 3. Consistency between RDA and City Policies—Currently the Board adopts policies to guide RDA investment that typically mirror City policies,although in some cases they are different and/or more Page 122 targeted to RDA activities. The Board could adopt a blanket policy indicating that if the RDA does not have a policy for a given area,City policy applies. 4. Bonding for catalytic projects in new project areas—The Board may wish to ask the Administration whether they have a recommendation for bond-eligible catalytic projects in either the State Street or 9-Line project areas,given tax increment flow has started. Based on previous discussions, the Board and Administration agreed that bonding early in project areas,as was done for Block 7o and Regent Street/Eccles Theater,makes financial sense,since bonding capacity is maximized early in a project area. 5. Fund Balances for Project Areas with Ongoing Funding Obligations—The Board may wish to review with the Administration the levels of fund balances("savings accounts"or"cash reserves")for project areas with ongoing obligations such as the Central Business District which has bond debt service payments and agreements(such as Eccles,Regent Street,and Gallivan)and significantly contributes to the RDA's annual administration costs. Finance is working with the RDA staff to provide cash balance amounts for each project area. 6. Pooled Resources vs.Project Area Resources—Some initiatives and projects previously funded with RDA tax increment have been funded by transferring funds out of one project area,into a pooled account,such as the Primary Housing Fund or Revolving Loan Fund(via appropriation from Fund Balance). Because these accounts are flexible in terms of serving all project areas,this allows for a project area with limited tax increment to complete projects it might otherwise not be able to afford. There are not clear guiding policies that would help determine when it is appropriate to use this approach for a given project or initiative,but in the past it has enabled the RDA to respond to unique opportunities and projects. ADDITIONAL&BACKGROUND INFORMATION 1. Gallivan Utah Center Owners Association(GUCOA)-GUCOA is the managing agency for the entire block through Covenants,Conditions&Restrictions(CCRs)and is responsible for maintenance and programming.The RDA is the majority owner(over 51%).The CCRs originally contemplated a contractor to provide maintenance and programming which has been provided by the Public Services Department after an RFP process.An assessment is levied on the first floor of adjacent commercial properties to contribute funding to administration,programming,and events.The programming contract has requirements for a set number of events that must be open to the public annually.Gallivan also provides many free events to activate the space consistent with the Council/Board's public policy goals for downtown. 2. 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 Last Collection Year Year Central Business District*t 1983 2042 West Capitol Hill** 1998 2022 Depot Districtt 1999 2024 Granary Districtt 2000 2025 North Templet 2012 2039 Page 23 Project Area Initial Collection Last Collection Year Year North Temple Viaduct CDA 2012 2037 Northwest Quadrant 2019 2038 Block 70 CDA 2oi6 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 Un 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 3. 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; 0) eliminating blight or the causes of blight; (k) redevelopment as defined under the law in effect before May 1,2006; or (1) any activity described in Subsections 8 a through(k)outside of a project area that the board determines to be a benefit to the project area. Note:in the 2022 legislative session some changes were made to limit a taxing entity's ability to invest in certain retail uses in HB 151-in summary it it prohibits a city or its RDA from making or entering into an agreement to make certain incentive payments for retail facilities.While retail incentives are limited,there some exceptions,including: - census tract areas with the median income below 70%AMI(to ease food and service deserts,etc), - mixed use developments with a certain amount of housing units,or 10%of the units being affordable, - retail facilities under 20,000 sqft,retail for small businesses,etc. - Incentives can still be used for public infrastructure,structured parking,main street or historic programs,and environmental mitigation. - If incentives for retail developments are used,a report must be issued to GOEO. Page 124 - If a taxing entity violates any of the incentives restrictions or doesn't submit a report,GOEO can send a notice to the state auditor.There is still the ability to cure the problem or appeal the determination of GOEO. ATTACHMENTS 1. Attachment 1-RDA Guiding Framework Transmittal December 2021(Mission,Core Values and Livability Benchmarks) 2. Attachment 2-Housing Funding Priorities for FY 24 3. Attachment 3—Presentation on Housing Funding Priorities for FY 24 Page 125 REDEVELOPMENT AGENCY KEY CHANGES FY2023 Full Time Changes from FY2024 FUND Adopted Equivalent FY2023 Recommended Board Changes Budget Budget Budget Central Business District Revenue and Other Sources Tax Increment 27,573,150 (2,928,456) 24,644,694 Interest Income 23,500 (23,500) 0 Total Revenues and Other Sources Budget 27,596,650 (2,951,956) 24,644,694 Expenses and Other Uses Taxing Entity Payment(60%) 13,283,651 (3,661,944) 9,621,707 Eccles Debt Service 3,260,239 1,904,870 5,165,109 Eccles Debt Service Block 70 RDA Match 3,260,239 51,682 3,311,921 Transfer to Administration (10%) 2,757,315 (292,846) 2,464,469 TI Reimbursements (Jazz Arena, 222Main) 1,400,000 (100,000) 1,300,000 Miscellaneous Property Expense 1,000,000 0 1,000,000 Gallivan Maintenance 566,822 7,153 573,975 Capital Project-Gallivan Master Planning 100,000 409,738 509,738 Gallivan Administration 365,323 7,452 372,775 Gallivan Programming 250,000 0 250,000 Parking Ramp Leases 69,000 6,000 75,000 Capital Project-Japantown 250,000 (250,000) 0 Capital Project-Main Street Closure Design 150,000 (150,000) 0 Capital Project-Open Streets Initiative Main Street 150,000 (150,000) 0 Capital Reserve- Property Acquisition - 734,061 (734,061) 0 {Holding Account} Total Expenditures and Other Uses Budget 27,596,650 (2,951,956) 24,644,694 Budgeted revenues and other sources over (under)expenditures and other uses 0 West Capitol Hill Revenue and Other Sources Interest Income 100,000 (100,000) 0 Total Revenues and Other Sources Budget 100,000 (100,000) 0 Expenses and Other Uses Capital Reserve- Discretionary Project Funding - 100,000 (100,000) 0 (Holding Account} Total Expenditures and Other Uses Budget 100,000 (100,000) 0 Budgeted revenues and other sources over (under)expenditures and other uses 0 West Temple Gateway Revenue and Other Sources Interest Income 5,000 (5,000) 0 Total Revenues and Other Sources Budget 5,000 (5,000) 0 Expenses and Other Uses Transfer to Administration 5,000 (5,000) 0 Total Expenditures and Other Uses Budget 5,000 (5,000) 0 Budgeted revenues and other sources over (under)expenditures and other uses 0 Depot Revenue and Other Sources Tax Increment 3,999,587 1,422,848 5,422,435 FY'23 Transition Appropriation 0 1,805,473 1,805,473 Interest Income 50,000 (50,000) 0 Total Revenues and Other Sources Budget 4,049,587 3,178,321 7,227,908 Expenses and Other Uses Capital Reserve- Infrastructure Improvements 0 3,680,056 3,680,056 -{Holding Account} Primary Housing Fund (20%) 799,917 284,570 1,084,487 Transfer to Administration (15%) 599,938 213,427 813,365 TI Reimbursement Gateway 2,000,000 (2,000,000) 0 Transfer to Secondary Housing 0 1,000,000 1,000,000 Capital Reserve-Commercial Assistance Program 0 500,000 500,000 -{Holding Account}- Miscellaneous Property Expense 125,000 25,000 150,000 Revolving Loan Fund Repayment 524,732 (524,732) 0 Total Expenditures and Other Uses Budget 4,049,587 3,178,321 7,227,908 Budgeted revenues and other sources over (under)expenditures and other uses 0 Granary District Revenue and Other Sources Tax Increment 633,546 469,763 1,103,309 FY'23 Transition Appropriation 0 291,284 291,284 Interest Income 15,000 (15,000) 0 Total Revenues and Other Sources Budget 648,546 746,047 1,394,593 Expenses and Other Uses Capital Reserve-Commercial Assistance Program 0 1,003,435 1,003,435 -{Holding Account}- Primary Housing Fund (20%) 126,709 93,953 220,662 Transfer to Administration (15%) 95,032 70,464 165,496 Miscellaneous Property Expense 5,000 0 5,000 Capital Reserve-Strategic Intervention 421,805 (421,805) 0 -{Holding Account]- Total Expenditures and Other Uses Budget 648,546 746,047 1,394,593 Budgeted revenues and other sources over (under)expenditures and other uses 0 North Temple Revenue and Other Sources Tax Increment 444,053 564,662 1,008,715 FY'23 Transition Appropriation 0 343,277 343,277 Interest Income 5,000 (5,000) 0 Total Revenues and Other Sources Budget 449,053 902,939 1,351,992 Expenses and Other Uses Capital Reserve-Strategic Intervention 0 285,490 285,490 -{Holding Account} Primary Housing Fund (20%) 88,811 112,932 201,743 Capital Reserve-Commercial Assistance Program -{Holding Account]- 0 543,277 543,277 Transfer to Administration (10%) 44,405 56,467 100,872 Capital Reserve- Infrastructure Improvements 284,753 (184,753) 100,000 -{Holding Account} Capital Project-School Construction Fund (10%)* 31,084 39,526 70,610 Capital Project-City Creek Daylighting 0 50,000 50,000 Total Expenditures and Other Uses Budget 449,053 902,939 1,351,992 Budgeted revenues and other sources over (under)expenditures and other uses 0 Revenue and Other Sources Transfer From CBD Taxing Entity Payments 3,260,239 1,904,870 5,165,109 Transfer From CBD Eccles Debt Service RDA match 3,260,239 51,682 3,311,921 Tax Increment 1,922,323 (93,095) 1,829,228 Reserve for Eccles Debt 2,469,853 (1,722,352) 747,501 Interest Income 2,500 (2,500) 0 Total Revenues and Other Sources Budget 10,915,154 138,605 11,053,759 Expenses and Other Uses Regent Street Bond Debt Service 1,488,928 6,582,096 8,071,024 Eccles Theater Debt Service 8,069,529 (6,540,562) 1,528,967 Taxing Entity Payments (30%) 576,697 (27,929) 548,768 Eccles Theater-Operating Reserve for Ancillary Spaces 475,000 0 475,000 Fundraising Fulfillment 125,000 0 125,000 Capital Project- Bennion Jewlers Relocation 0 100,000 100,000 Capital Reserve- Regent Street Parking Structure 100,000 0 100,000 -{Holding Account}- Regent Street Maintenance 80,000 0 80,000 Regent Street Event Programming 0 25,000 25,000 Total Expenditures and Other Uses Budget 10,915,154 138,605 11,053,759 Budgeted revenues and other sources over (under)expenditures and other uses 0 North Temple Revenue and Other Sources Tax Increment 1,205,109 1,569,310 2,774,419 Interest Income 1,500 (1,500) 0 Total Revenues and Other Sources Budget 1,206,609 1,567,810 2,774,419 Expenses and Other Uses Debt Service Payment to Salt Lake City 1,188,532 1,544,271 2,732,803 Transfer to Admin (1.5%) 18,077 23,539 41,616 Total Expenditures and Other Uses Budget 1,206,609 1,567,810 2,774,419 Budgeted revenues and other sources over (under)expenditures and other uses 0 Northwest Quadrant Revenue and Other Sources Tax Increment 903,100 495,448 1,398,548 Interest Income 5,000 (5,000) 0 Total Revenues and Other Sources Budget 908,100 490,448 1,398,548 Expenses and Other Uses TI Reimbursement NWQ Phase 1 632,170 346,814 978,984 Capital Reserve-Shared Costs 95,310 44,544 139,854 -(Holding Account} Transfer to Primary Housing(10%) 90,310 49,545 139,855 Transfer to Admin (10%) 90,310 49,545 139,855 Total Expenditures and Other Uses Budget 908,100 490,448 1,398,548 Budgeted revenues and other sources over (under)expenditures and other uses 0 Stadler Rail Revenue and Other Sources Tax Increment 72,420 68,877 141,297 Interest Income 500 (500) 0 Total Revenues and Other Sources Budget 72,920 68,377 141,297 Expenses and Other Uses TI Reimbursement 58,436 61,666 120,102 Transfer to Primary Housing(10%) 7,242 6,888 14,130 Transfer to Admin (5%) 7,242 (177) 7,065 Total Expenditures and Other Uses Budget 72,920 68,377 141,297 Budgeted revenues and other sources over (under)expenditures and other uses 0 State Street Revenue and Other Sources Tax Increment 2,631,183 1,792,628 4,423,811 FY'23 Transition Appropriation 0 1,364,709 1,364,709 Interest Income 0 0 0 Total Revenues and Other Sources Budget 2,631,183 3,157,337 5,788,520 Expenses and Other Uses Capital Reserve-Strategic Intervention 0 3,364,709 3,364,709 -{Holding Account} Capital Reserve-Commercial Assistance Programs 0 1,239,049 1,239,049 -(Holding Account}- Transfer to Admin (10%) 263,118 179,263 442,381 Capital Project- Ballpark Planning 0 300,000 300,000 Transfer to Primary Housing-SLCSD HSG (10%) 0 259,976 259,976 Transfer to Primary Housing(10%) 263,118 (80,713) 182,405 Capital Reserve- Property Acquisition 2,104,947 (2,104,947) 0 -{Holding Account} Total Expenditures and Other Uses Budget 2,631,183 3,157,337 5,788,520 Budgeted revenues and other sources over (under)expenditures and other uses 0 Revenue and Other Sources Tax Increment 1,477,727 1,176,054 2,653,781 FY'23 Transition Appropriation 802,208 802,208 Interest Income 0 0 0 Total Revenues and Other Sources Budget 1,477,727 1,978,262 3,455,989 Expenses and Other Uses Capital Program -Accessory Dwelling Units 0 1,455,680 1,455,680 -{Holding Account} Capital Reserve-Commercial Assistance Programs 0 500,000 500,000 -(Holding Account}- Capital Reserve-Strategic Intervention -{Holding Account}- 0 500,000 500,000 Taxing Entity Payment(50%of County tax) 224,966 70,916 295,882 Transfer to Admin (10%City%SLCSD only) 118,218 135,325 253,543 RDA Arts Et Culture Program 0 150,000 150,000 Transfer to Primary Housing(10%) 147,773 (3,181) 144,592 Transfer to Primary Housing-SLCSD HSG (10%) 0 120,786 120,786 County Administration 26,996 8,510 35,506 Capital Reserve- Property Acquisition - 959,774 (959,774) 0 {Holding Account} Total Expenditures and Other Uses Budget 1,477,727 1,978,262 3,455,989 Budgeted revenues and other sources over (under)expenditures and other uses 0 Revolving Loan Fund Revenue and Other Sources FY17 Beginning Balance Principal Payments 65,000 131,750 196,750 Interest on Loans 30,000 0 30,000 Interest on Investment 250,000 (250,000) 0 Total Revenues and Other Sources Budget 345,000 (118,250) 226,750 Expenses and Other Uses Available to Lend 345,000 (118,250) 226,750 Total Expenditures and Other Uses Budget 345,000 (118,250) 226,750 Budgeted revenues and other sources over (under)expenditures and other uses 0 Program Income Fund Revenue and Other Sources Parking Structure Income 1,243,335 (999) 1,242,336 Rents 215,700 (54,436) 161,264 Loan Repayments 39,000 (360) 38,640 Interest on Loans 8,800 (1,348) 7,452 Interest Income 50,000 (50,000) 0 Total Revenues and Other Sources Budget 1,556,835 (107,143) 1,449,692 Expenses and Other Uses Capital Project-Sugarhouse DI Demo 0 550,000 550,000 Professional Services 300,000 30,000 330,000 Miscellaneous Property Expense 300,000 30,000 330,000 Gallivan Maintenance 0 214,692 214,692 Marketing and Sales 25,000 0 25,000 Capital Reserve-Commercial Loans - 931,835 (931,835) 0 {Holding Account] Total Expenditures and Other Uses Budget 1,556,835 (107,143) 1,449,692 Budgeted revenues and other sources over (under)expenditures and other uses 0 (formerlySecondary Housing Fund - Area Revenue and Other Sources Transfer from DD 0 1,000,000 1,000,000 Interest Income 10,000 (10,000) 0 Total Revenues and Other Sources Budget 10,000 990,000 1,000,000 Expenses and Other Uses Capital Reserve- Partnership with Salt Lake County to Add Housing to Sunday- 1,000,000 1,000,000 Anderson Senior Center[One-time] Capital Reserves-Accessory Dwelling Unit 91-ine Pilot Program 10,000 (10,000) 0 -[Holding Account]- Total Expenditures and Other Uses Budget 10,000 990,000 1,000,000 Budgeted revenues and other sources over (under)expenditures and other uses 0 Primary Housing Fund (formerly Citywide Housing Fund) Revenue and Other Sources Transfer from Depot 799,917 284,570 1,084,487 Transfer from State street 263,118 179,263 442,381 Transfer from 9 Line 147,773 117,605 265378 Transfer from Granary 126,709 93,953 220:662 Transfer from North Temple 88,811 112,932 201,743 Transfer from NWQ 90,310 49,545 139,855 Loan Repayments 23,000 567 23,567 Transfer from Stadler Rail 7,242 6,888 14,130 Interest on Loans 3,000 (621) 2,379 Interest Income 50,000 (50,000) 0 Total Revenues and Other Sources Budget 1,599,880 794,702 2,394,582 Expenses and Other Uses Capital Reserve- Partnership with Salt Lake County to Add Housing to Sunday- 0 1,013,820 1,013,820 Anderson Senior Center[One-time] Capital Reserve- Housing Development Loans 0 1,000,000 1,000,000 -(Holding Account} Capital Reserve-SLCSD Housing -{Holding Account}- 0 380,762 380,762 Capital Reserve- Housing Property Acquistion 1,599,880 (1,599,880) 0 -{Holding Account} Total Expenditures and Other Uses Budget 1,599,880 794,702 2,394,582 Budgeted revenues and other sources over (under)expenditures and other uses 0 InitiativeWestside Community • Revenue and Other Sources UIPA Housing Allocation 500,000 901,589 1,401,589 FY'23 Transition Appropriation 433,880 433,880 Total Revenues and Other Sources Budget 500,000 1,335,469 1,835,469 Expenses and Other Uses Capital Reserve-Shared Equity Housing 0 1,835,469 1,835,469 (700,000) -(Holding Account} Capital Reserve- Partnership with NeighborWorks for Shared Equity Workforce 700,000 Housing Development(One-time) Capital Programs- Housing Development Loan Program - 500,000 (500,000) 0 {Holding Account} Total Expenditures and Other Uses Budget 500,000 1,335,469 1,835,469 Budgeted revenues and other sources over (under)expenditures and other uses 0 HousingDevelopment Revenue and Other Sources Funding Our Future Land Discounts and Financing (One-time reduction in GF transfer to fund Switchpointe and Sanctioned Camping Grant 2,590,000 0 2,590,000 1,840,000 Program) Transfer In from North Temple Viaduct 1,000,000 700,000 1,700,000 1,700,000 Transfer In HOME Dormant Program Income Funds 6,476,014 Loan Repayments 1,370,000 (1,225,610) 144,390 144,390 Interest on Loans 255,000 (178,437) 76,563 76,563 Interest on Investment 15,000 (15,000) 0 Total Revenues and Other Sources Budget 5,230,000 (719,047) 4,510,953 10,236,967 Expenses and Other Uses Capital Program - Housing Development Loans 4,230,000 280,953 4,510,953 1,360,953 -(Holding Account} Capital Reserve- Partnership with NeighborWorks for Shared Equity Workforce 1,400,000 Housing Development(One-time) Citywide ADU Incentives Program [One-time] 1,000,000 Capital Program - Housing Property Acquisition 1,000,000 (1,000,000) 0 -{Holding Account} HOME Dormant Program Income Funds -Capital Program - Housing Development 6,476,014 NOFA -{Holding Account}- Balance of housing funding from General Fund Sources- to be added to NOFA Total Expenditures and Other Uses Budget 5,230,000 (719,047) 4,510,953 10,236,967 Budgeted revenues and other sources over (under)expenditures and other uses 0 0 Revenue and Other Sources Transfer from Central Business District 2,757,315 (292,846) 2,464,469 Transfer from Depot District 599,938 213,427 813,365 Transfer from State Street 263,118 179,263 442,381 Transfer from 9 Line 118,218 135,325 253,543 Transfer from Granary District 95,032 70,464 165,496 Transfer from Northwest Quadrant 90,310 49,545 139,855 Transfer from North Temple 44,405 56,467 100,872 Transfer from North Temple Viaduct 18,077 23,539 41,616 Transfer from Stadler Rail 7,242 (177) 7,065 Transfer from West Temple Gateway 5,000 (5,000) 0 Total Revenues and Other Sources Budget 3,998,655 430,007 4,428,662 Expenses and Other Uses RDA Personnel 2,480,095 21 276,684 2,756,779 Administrative Fees 1,000,000 0 1,000,000 Operating Et Maintenance 300,000 75,000 375,000 Charges and Services 218,560 78,323 296,883 Total Expenditures and Other Uses Budget 3,998,655 21 430,007 4,428,662 Budgeted revenues and other sources over (under)expenditures and other uses 0 GRAND TOTALS TOTAL Revenue 63,300,899 75:077:827 TOTAL Expense 63,300,899 75077827