The URL can be used to link to this page

01/09/2024 - Meeting Materials Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY REVISED AGENDA January 9, 2024 Tuesday 2:00 PM Council Work Room 451 South State Street, Room 326 Salt Lake City, UT 84111 SLCRDA.com In accordance with State Statute and City Ordinance, the meeting may be held electronically. After 5:00 p.m., please enter the City & County Building through the main east entrance. This is a discussion among RDA Board Directors and select presenters. The public is welcome to listen, unless otherwise specified as a public comment period. Items scheduled may be moved and / or discussed during a different portion of the Meeting based on circumstance or availability of speakers. Item start times and durations are approximate and are subject to change at the Chair’s discretion. Generated: 10:35:44 Comments:A. 1.General Comments to the Board ~2:00 p.m. 5 min The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to RDA Board offices, 451 South State Street, Suite 304, P.O. Box 145476, Salt Lake City, UT. 84114-5476. 2.Comments to the RDA Board of Directors. (Comments are taken on any item not scheduled for a public Hearing, as well as on any other RDA Business. Comments are limited to two minutes.) B.Public Hearing - individuals may speak to the Board once per public hearing topic for two minutes, however written comments are always accepted: NONE. C.Redevelopment Agency Business - The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Election of Chair and Vice Chair ~ 2:05 p.m. 20 min. The Board will take a straw poll to nominate the Board Chair (proposed to be a one-year term if the bylaws are amended as previously discussed) and Vice Chair (a one-year term). The process includes expressions of interest from Board Members, nominations for each position, and then voting each for the Chair and Vice Chair positions. 2.Utah Open Meetings Law Training ~ 2:25 p.m. 20 min. The Board will receive a briefing from the City Attorney’s Office about the Utah Open Meetings Law training. This briefing will serve as the annual training for both the Board of Directors of the Redevelopment Agency and the City Council. 3.RDA Audit Review and Approval for Fiscal Year 2022-23 ~ 2:45 p.m. 15 min. The Board will review and consider approval of the Fiscal Year 2022-23 RDA Audit, which shows the Agency's financial conditions as of June 30, 2023. 4.Resolution: USA Climbing National Training Center Ground Lease at Approximately 310 South 500 West - - The Board will receive a briefing and consider approving a resolution that would authorize the lease rate and terms for USA Climbing Headquarters and Training Facility at Approximately 310 South 500 West. The development is envisioned to include adaptive reuse of the historic Salt Lake Mattress Company building, construction of a primary building with multiple climbing walls, and a public outdoor plaza on the corner. Related improvements could include a temporary surface parking lot if needed, a permanent parking structure, utility upgrades, new streets, and reconstruction of existing streets, among other potential projects. 5.Informational: City Creek Daylighting Design Plan Along the Folsom Trail ~ 3:00 p.m. 20 min. The Board will receive a briefing about updated designs to daylight (bring to the surface) a portion of City Creek that runs parallel to the Folsom Trail from approximately 700 West to 1000 West. The designs include a public restroom, pond, pedestrian bridges, bike racks, amphitheater, and public art among other amenities. The project is being coordinated with another project to complete the Folsom Trail which is funded by $5 million from the voter-approved Parks, Trails & Open Space Bond. 6.Report and Announcements from the Executive Director TENTATIVE 5 min. Report of the Executive Director, including a review of information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input. 7.Report and Announcements from RDA Staff TENTATIVE 5 min. The Board may review Board information and announcements. The Board may give feedback on any item related to City business, including but not limited to: •Project Updates; •Community Updates; and •Scheduling Items. 8.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. 1.Informational: Pre-Disposition Property Report at 310 South 500 West in - Adjournment Station Center - The Board will receive a written briefing about plans for disposition of the property located at approximately 310 South 500 West. This item is related to a proposed ground lease and potential funding requests for a USA Climbing national training facility. E.Consent – the following items are listed for consideration by the Board and can be discussed individually upon request. A motion to approve the consent agenda is approving all of the following items: NONE. F.Tentative Closed Session The Board will consider a motion to enter into Closed Session. A closed meeting described under Section 52-4-205 may be held for specific purposes including, but not limited to: 1.discussion of the character, professional competence, or physical or mental health of an individual; 2.strategy sessions to discuss pending or reasonably imminent litigation; 3.strategy sessions to discuss the purchase, exchange, or lease of real property: (i)disclose the appraisal or estimated value of the property under consideration; or (ii)prevent the public body from completing the transaction on the best possible terms; 4.strategy sessions to discuss the sale of real property, including any form of a water right or water shares, if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration; or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale; and< (iii)the terms of the sale are publicly disclosed before the public body approves the sale 5.discussion regarding deployment of security personnel, devices, or systems; and 6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code § 78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. G. CERTIFICATE OF POSTING On or before 5:00 p.m. on _____________________, the undersigned, duly appointed City Recorder, does hereby certify that the above notice and agenda was (1) posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701, and (2) a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda, including but not limited to adoption, rejection, amendment, addition of conditions and variations of options discussed. 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. OPEN AND PUBLIC MEETINGS ACT RDA BOARD OF DIRECTORS/SLC COUNCIL 2024 OPEN AND PUBLIC MEETINGS ACT UTAH CODE CHAPTER 52-4 OPEN AND PUBLIC MEETINGS ACT •Generally, MEETINGS of a PUBLIC BODY are open to the public, unless an EXCEPTION allows the meeting to be CLOSED. PUBLIC BODY MEETINGS of a PUBLIC BODY are open to the public, unless an EXCEPTION allows the meeting to be CLOSED. Salt Lake City Council/RDA Board are PUBLIC BODIES. MEETINGS MEETINGS of a PUBLIC BODY must be open to the public, unless an EXCEPTION allows the meeting to be CLOSED. MEETINGS •Convening of •at least a quorum •to discuss,receive comments, or act on a matter over which the body has jurisdiction or advisory power. WHICH GATHERINGS ARE SUBJECT TO THE OPEN AND PUBLIC MEETINGS ACT? YES •Electronic meetings •Retreats •Workshops •Field trips NO •Chance meetings •Social gatherings •No quorum TRANSPARENCY TO THE PUBLIC REQUIREMENTS OF OPMA PUBLIC NOTICE WHAT? •Every Meeting •Annual Meeting Schedule •Emergency Meetings HOW? •Class A Notice PUBLIC NOTICE EVERY MEETING •24-hour notice •Must include: –Agenda –Date –Time –Place PUBLIC NOTICEPUBLIC NOTICE ANNUAL MEETINGS Annually scheduled meetings –Date –Time –Place •Revisions? –Only if adding a NEW regularly scheduled meeting WHAT? •Every Meeting •Annual Meeting Schedule •Emergency Meetings HOW? •Class A Notice PUBLIC NOTICE WHAT? •Every Meeting •Annual Meeting Schedule •Emergency Meetings HOW? •Class A Notice EMERGENCY MEETINGS •Cannot hold unless: –Attempt to notify all members –A majority of members approve holding the emergency meeting •Best notice practicable of time, place, and topics •Final action may be taken at an emergency meeting if topic is listed on the agenda PUBLIC NOTICE WHAT? •Every Meeting •Annual Meeting Schedule •Emergency Meetings HOW? •Class A Notice PROVIDING PUBLIC NOTICE •Class A Notice –Post on the Utah Public Notice website –Post on the RDA Board/City Council’s websites –Post at a public location within the city that is reasonably likely to be seen by residents of the city ELECTRONIC MEETINGS TYPES OF ELECTRONIC MEETINGS •Electronic meetings with anchor location –Provide anchor location for the public to join electronic meeting •Electronic meetings WITHOUT anchor location –Chair makes written determination, read at the beginning of meeting –Notice of meeting details the Chair’s determination, facts supporting Chair’s determination, information on how the public can connect –Chair’s determination only lasts 30 days MEETING RECORDS OPEN MEETINGS •Recording •Written minutes –Date, time, place –Members present and absent –Substance of all matters proposed, discussed, or decided –Record of each vote –Name of member of the public who provided comments and a summary of the comments –Other information requested •OFFICIAL RECORD = APPROVED WRITTEN MINUTES CLOSED MEETINGS •Recording –Date, time, place –Names of all present and absent (unless disclosure would impair confidentiality necessary for original purpose of closing the meeting •Written minutes optional •Exception if discussing –Character, professional competence, or physical or mental health of an individual –Deployment of security personnel, devices, or systems •Protected Records under GRAMA OPEN AND PUBLIC MEETINGS ACT •Generally, MEETINGS of a PUBLIC BODY are open to the public, unless an EXCEPTION allows the meeting to be CLOSED. CLOSED MEETINGS A MEETING MAY BE CLOSED ONLY TO DISCUSS SPECIFIED TOPICS CLOSED MEETINGS A MEETING MAY BE CLOSED ONLY TO DISCUSS SPECIFIED TOPICS •An individual’s character, professional competence or physical or mental health •Collective bargaining strategy •Pending or reasonably imminent litigation •Real property purchase, exchange, lease –Disclose appraisal or value or prevent transaction on best possible terms •Real property sale –Disclose appraisal or value or prevent transaction on best possible terms; –City previously gave notice that the property would be offered for sale; AND –Terms of sale are publicly disclosed before the City approves the sale •Deployment of security devices •Criminal misconduct investigations •Consideration of a loan application under certain circumstances •Advice of legal counsel CLOSED MEETINGS PROCEDURES •Starts as open meeting •2/3 vote to approve closing the open meeting •Publicly announce and enter into the minutes: –Reason(s) for closing the meeting –Location of the meeting –Roll call vote by name PUBLIC COMMENT AND PARTICIPATION PUBLIC COMMENT AND PARTICIPATION •State law or City Code requirements •Other public comments –At discretion of the Chair –Comments may be discussed during meeting if not on agenda –No FINAL ACTION if not on agenda DISRUPTION OF MEETING •May REMOVE an individual from the meeting if –WILLFULLY DISRUPTS to the extent that the orderly conduct of the meeting is SERIOUSLY COMPROMISED CONSEQUENCES OF VIOLATING OPMA CONSEQUENCES OF VIOLATING OPMA •Member may be charged with a Class B misdemeanor if they knowingly violates the closed meeting provisions of OPMA •Private individuals can bring lawsuit for alleged violation of OPMA –Final action may be void –Suit must be commenced within 90 days of the final action or 30 days of the final action concerning issuance of bonds QUESTIONS? Thank you! ERIN MENDENHALL MARY BETH THOMPSON Mayor Chief Financial Officer INFORMATION MANAGEMENT SYSTEM 349 SOUTH 200 EAST SALT LAKE CITY, UTAH 84114 TEL 801-535-7272 RDA BOARD TRANMITTAL ________________________ Date Received: ___________________ Mayor Erin Mendenhall, Executive Director Date sent to Council: ______________ _____________________________________________________________________________ TO: Salt Lake City Council DATE: December 20, 2023 Alejandro Puy, Chair FROM: Mary Beth Thompson, Chief Information Officer __________________________ Danny Walz, RDA Director __________________________ SUBJECT: RDA Financial Audit – Fiscal Year 2022 – 2023 SPONSOR: N/A STAFF CONTACT: Mary Beth Thompson (801) 535-6403 Mike Burns (801) 565-6461 Danny Walz (801) 535-7209 Eide Bailly DOCUMENT TYPE: Briefing RECOMMENDATION: RDA Financial Audit – Fiscal Year 2022 – 2023 BUDGET IMPACT: N/A EXECUTIVE SUMMARY: N/A PUBLIC PROCESS: N/A EXHIBITS: 1. RDA 2023 BOARD Communication letter 2. RDA 2023 Final Financial Statement Erin Mendenhall (Dec 21, 2023 12:15 MST) What inspires you, inspires us. | eidebailly.com 5 Triad Center, Ste. 600 | Salt Lake City, UT 84180-1106 | T 801.532.2200 | F 801.532.7944 | EOE 1 December 15, 2023 To the Board of Directors Redevelopment Agency of Salt Lake City Salt Lake City, Utah We have audited the financial statements of Redevelopment Agency of Salt Lake City (the Agency) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 15, 2023. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards As communicated in our letter dated October 24, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the Agency solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence. 2 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management is responsibile for selecting and use appropriate accounting policies. A summary of the significant accounting policies adopted by the Agency is included in Note 1 to the financial statements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are as follows: • Net Pension Liability – The net pension liability is actuarily determined by the Utah Retirement Systems (URS) in accordance with the requirements of government accounting standards. The estimate is prepared by the URS for Salt Lake City Corporation, and the City allocates the liability and other related balances to the various funds. We evaluated the report provided by the URS and the key factors and assumptions used by the City in the allocation of the net pension liability to the Agency and determined that the estimated net pension liability is reasonable in relation to the basic financial statements taken as a whole. • Allowance for Doubtful Accounts: Management’s estimate of the allowance for doubtful accounts on notes receivable is based on loan risk and management’s estimate of the collectability of the loans. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts and determined that it is reasonable in relation to the basic financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the Agency’s financial statements relates to the Agency’s commitments disclosed in Note 10. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. 3 Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no uncorrected or corrected misstatements identified as a result of our audit procedures. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the Agency’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. We did not identify and circumstances that affect the form and content of the auditor’s report. Representations Requested from Management We have requested certain written representations from management which are included in the management representation letter dated December 15, 2023. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the Agency, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the Agency’s auditors. This report is intended solely for the information and use of the Board of Directors and management of the Agency and is not intended to be, and should not be, used by anyone other than these specified parties. Salt Lake City, Utah Financial Statements June 30, 2023 Redevelopment Agency of Salt Lake City (A Component Unit of Salt Lake City Corporation) i Redevelopment Agency of Salt Lake City Table of Contents June 30, 2023 INTRODUCTORY SECTION: Table of Contents ....................................................................................................................................................... i FINANCIAL SECTION: Independent Auditor’s Report ......................................................................................................................................... 2 Management’s Discussion and Analysis .......................................................................................................................... 5 Basic Financial Statements Financial Statements Statements of Net Position ............................................................................................................................. 10 Statements of Revenues, Expenses and Changes in Net Position ..................................................................... 12 Statements of Cash Flows .............................................................................................................................. 14 Notes to the Financial Statements ........................................................................................................................ 15 Note 1. Summary of Significant Accounting Policies ................................................................................. 16 Note 2. Cash and Cash Equivalents ............................................................................................................ 19 Note 3. Restricted Net Position .................................................................................................................. 20 Note 4. Loans and Other Long-Term Receivables ...................................................................................... 21 Note 5. Lease Receivables ......................................................................................................................... 21 Note 6. Capital Assets................................................................................................................................ 22 Note 7. Bonds Payable .............................................................................................................................. 22 Note 8. Pension Plans ................................................................................................................................ 24 Note 9. Equity Interest in Joint Venture ...................................................................................................... 30 Note 10. Commitments and Contingencies................................................................................................... 32 Note 11. Concentrations .............................................................................................................................. 35 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability ................................................................................ 37 Schedule of Contributions .......................................................................................................................................... 38 Notes to Required Supplementary Information ........................................................................................................... 38 Supplementary Information Combining Statement of Net Position Information by Project Area ............................................................................. 40 Combining Statement of Revenues and Expenses and Changes in Net Position by Project Area ................................... 42 Selected Financial Information by Project Area .......................................................................................................... 43 1 Financial Section What inspires you, inspires us. | eidebailly.com 5 Triad Center, Ste. 600 | Salt Lake City, UT 84180-1106 | T 801.532.2200 | F 801.532.7944 | EOE Independent Auditor’s Report The Board of Directors Redevelopment Agency of Salt Lake City Salt Lake City, Utah Report on the Audit of the Financial Statements Opinions We have audited the accompanying statements of net position of the Redevelopment Agency of Salt Lake City (the Agency), a component unit of Salt Lake City Corporation, Utah, as of June 30, 2023, and the related statements of revenue, expenses and changes in net position and cash flows for the year then ended and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Agency as of June 30, 2023, and the changes in its financial position, and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Agency, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis Verify on pages 5 through 8 and Required Supplementary Information on pages 37 and 38 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Agency’s basic financial statements. The supplementary information on pages 40 through 42 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Salt Lake City, Utah December 15, 2023 4 Redevelopment Agency of Salt Lake City Management's Discussion and Analysis June 30, 2023 5 MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) Redevelopment Agency of Salt Lake City (Agency) management presents to the readers of its financial statements this narrative information. It contains an overview and analysis of the financial position and results of operations as of, and for the year ended, June 30, 2023. As management of the Agency, we encourage readers to consider information contained in this discussion. FINANCIAL HIGHLIGHTS As of June 30, 2023, assets and deferred outflows of the Agency exceeded its liabilities and deferred inflows by $263,579,243 (net position). Of the total amount, $176,458,287 is available to meet ongoing obligations to creditors. The remaining net position amount of $87,120,957 is either restricted or invested in capital assets, net of related debt, and therefore not available to meet the Agency's ongoing obligations. Net position increased by $28,041,649. A significant portion of total assets is the unrestricted cash amounting to $68,456,820. Statutorily, the Agency is required to spend the tax increment funds received within the boundaries of the project area for which it was collected, except for affordable housing projects that benefit any area within the City. No one project or project area has access to all of the unrestricted cash balance shown above. Restricted cash of $45,357,777 reflects remaining bond proceeds for the Eccles Theater and the Regent Street projects, and other funds already committed to specific projects. Another significant portion of assets is the loans receivable balance. Loans are awarded to individuals and businesses for acquisition, rehabilitation, new construction or façade renovation, and continue to be an important aspect of the Agency’s blight elimination mission. For fiscal year 2023, the Agency originated $30,315,133 in new loans. The amount of principal received on outstanding loans was $663,707. The Agency’s loans receivable balance, including accrued interest is $67,920,453 an increase of $13,030,255. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis serves as an introduction to the Agency's basic financial statements and the notes to the financial statements. This report also contains information in addition to the basic financial statements that will help the reader to gain a more in-depth understanding of the Agency. The Statements of Net Position show the Agency’s total assets, deferred outflows, liabilities and deferred inflows with the difference shown as net position for the most recent fiscal year. Increases or decreases over time in net position give an indicator as to whether the financial condition of the Agency is improving or declining. The Statements of Revenues, Expenses and Changes in Net Position show the changes to net position that occurred during the most recent fiscal year. These changes are recorded when the underlying event that causes the change occurs regardless of when the cash transaction takes place. Therefore revenues and expenses are recorded in this statement for some items that the resulting cash flows occur in a future period. Examples are future debt interest payments when the fiscal year ends between interest payments, and earned, but not yet received, interest on loans. Redevelopment Agency of Salt Lake City Management's Discussion and Analysis June 30, 2023 6 The Statements of Cash Flows show the inflows and outflows of cash for the most recent fiscal year as a result of transactions in four categories. The categories are operating activities, capital and related financing activities, non-capital and related financing activities and investing activities. Notes to the Financial Statements contain additional information important to a complete understanding of the information contained in the basic financial statements. Notes to the financial statements begin on page 15 of this report. OTHER INFORMATION Required supplemental schedules containing pension information and other supplementary information containing selected data by project area are included in this report immediately following the notes to the financial statements and can be found on pages 36-42. FINANCIAL ANALYSIS As mentioned earlier, changes in net position may over time indicate the Agency’s financial position. A significant portion of the Agency’s net position, 82.8%, is comprised of its unrestricted amounts and amounts invested in capital assets - net of related debt, and results from the Agency’s ongoing purpose of eliminating urban blight. The Agency has issued debt to support several large scale economic development and public infrastructure projects. As an incentive to a developer, the Agency may sell land for less than its cost or market value. Newly developed properties generate increased property taxes, a portion of which the Agency receives to pay debt and finance ongoing activities. The remaining portion of net position, 17.2%, represents resources that have restrictions on how they can be used. REDEVELOPMENT AGENCY OF SALT LAKE CITY Net Position Fiscal 2023 Fiscal 2022 Current and other assets $ 295,641,061 $ 274,450,675 Capital assets 41,763,180 41,633,453 Total assets $ 337,404,241 $ 316,084,128 Deferred outflow of resources $ 4,613,873 $ 5,110,747 Bonds payable $ 50,537,363 $ 56,380,000 Other liabilities 3,570,374 3,397,092 Total liabilities $ 54,107,737 $ 59,777,092 Deferred inflow of resources $ 24,331,134 $ 25,880,190 Net position Invested in capital assets - net of related debt $ 41,763,180 $ 41,633,454 Restricted for capital construction 45,357,776 63,592,306 Unrestricted 176,458,287 130,311,834 Total net position $ 263,579,243 $ 235,537,594 Agency Activities Redevelopment Agency of Salt Lake City Management's Discussion and Analysis June 30, 2023 7 The Agency’s receipt of incremental property taxes, the increase in property taxes in excess of the tax base when the project area was created, is generated from higher property values due to redevelopment activities. Incremental property taxes received increased by $146,513 or 0.46%, during the fiscal year. Total operating expenses of the Agency decreased by $1,312,782 or 3.9%. This change was due to an decrease in overall redevelopment activities of the Agency of $1,299,326 and a decrease in Depreciation Expense of $13,456. REDEVELOPMENT AGENCY OF SALT LAKE CITY Changes in Net Position Fiscal 2023 Fiscal 2022 Revenues Program revenues Rental and other income $ 2,789,666 $ 2,012,684 General revenues Transfers in from Salt Lake City Corporation 22,627,900 39,855,868 Interest and investment valuation income 4,995,349 (442,423) Gain/(Loss) on sale of capital assets — (6,054,782) Grants and other contributions 32,252,004 32,105,491 Miscellaneous income (expense) 332 (1,222) Total revenues 62,665,251 67,475,616 Expenses Personnel services 2,262,907 1,588,385 Operating and maintenance 1,529,860 1,239,009 Charges and services 28,026,607 30,291,307 Depreciation and amortization 650,024 663,479 Interest and fiscal charges 2,043,494 3,973,156 Change in equity interest in joint venture 110,709 (640,830) Total expenses 34,623,601 37,114,506 Increase/(Decrease) in net position 28,041,649 30,361,110 Net position, beginning 235,537,594 205,176,484 Net position, ending $ 263,579,243 $ 235,537,594 Capital Asset and Debt Administration Capital Asset investments by the Agency consist of land, land improvements, buildings, construction in process and a small amount of equipment. The investment in capital assets, net of accumulated depreciation, increased by $129,726 in fiscal year 2023. REDEVELOPMENT AGENCY OF SALT LAKE CITY Capital Assets, Net of Depreciation Fiscal 2023 Fiscal 2022 Land and easement rights $ 21,324,975 $ 20,455,049 Parking facilities and plaza 6,617,037 7,211,355 Other buildings 387,242 493,897 Equipment 85,290 124,518 Construction in progress 13,348,636 13,348,636 Total $ 41,763,180 $ 41,633,455 Additional information relating to the capital assets of the Agency can be found in Note 6, on page 22 of this report. Redevelopment Agency of Salt Lake City Management's Discussion and Analysis June 30, 2023 8 Long-term debt (net) of the Agency totaled $44,462,363 as of June 30, 2023. The tax increment bonds require semi-annual interest payments and annual principal payments. Principal payments for the 2013 bonds began in April 2016. Principal payments for the 2015 bonds began in April 2018. Principal payment on the 2019 refunding bonds began in April 2020. REDEVELOPMENT AGENCY OF SALT LAKE CITY Long-Term Debt Fiscal 2023 Fiscal 2022 2013 Tax increment bonds, net $ — $ 3,765,000 2015A and 2015B Tax increment bonds 8,845,000 10,075,000 2019 Tax Increment refunding bonds, net 41,720,000 42,540,000 Total $ 50,565,000 $ 56,380,000 Additional information on the Agency’s long-term debt can be found in Note 7, beginning on page 23 of this report. Requests for information Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Redevelopment Agency of Salt Lake City, 451 South State Street, Room 118, P.O. Box 145518 Salt Lake City Utah, 84114-5518. * * * * * 9 Basic Financial Statements The accompanying notes are an integral part of this statement 10 Redevelopment Agency of Salt Lake City Statement of Net Position June 30, 2023 Assets Current assets Unrestricted cash and cash equivalents $ 68,456,820 Restricted cash and cash equivalents 45,357,777 Loans and other long-term receivables, current portion 724,895 Other current receivables 1,309,908 Lease receivable, current portion 393,438 Prepaid expenses 88,665 Total current assets 116,331,503 Non-current assets Capital assets, at cost Land and rights 21,324,975 Parking facilities and plaza 55,022,531 Other buildings 576,742 Office furniture and equipment 391,601 Construction in progress 13,348,636 Accumulated depreciation (48,901,305) Net capital assets 41,763,180 Loans and other long-term receivables, net of current portion 67,195,558 Lease receivable, net of current portion 24,889,855 Land and buildings held for resale 36,796,546 Investment in joint venture 50,427,599 Total non-current assets 221,072,739 Total assets 337,404,241 Deferred Outflows Deferred outflows - Pension 346,956 Deferred outflows - refunding of debt 4,266,916 Total assets and deferred outflows $ 342,018,114 The accompanying notes are an integral part of this statement 11 Redevelopment Agency of Salt Lake City Statement of Net Position June 30, 2023 Liabilities Current liabilities Accounts payable and accrued liabilities $ 2,745,152 Accrued compensation, current portion 37,680 Accrued interest payable 333,401 Bonds payable, current portion 6,075,000 Total current liabilities 9,191,233 Non-current liabilities Accrued compensation, net of current portion 285,056 Net pension liability 169,084 Bonds payable, net of discounts and current portion 44,462,363 Total non-current liabilities 44,916,503 Total liabilities 54,107,737 Deferred inflows Deferred inflows - Leases 24,326,002 Deferred inflows - Pensions 5,132 Total deferred inflows 24,331,134 Net Position Net investment in capital assets 41,763,180 Restricted for construction and loan commitments held in escrow 45,357,776 Unrestricted 176,458,287 Total net position 263,579,243 Total liabilities, deferred inflows and net position $ 342,018,114 The accompanying notes are an integral part of this statement 12 Redevelopment Agency of Salt Lake City Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended June 30, 2023 Operating revenues Rental and other income $ 1,153,608 Interest income from loans receivable 738,088 Interest income from leases 897,970 Miscellaneous income (expense) 332 Total operating revenues 2,789,998 Operating expenses Personnel services 2,262,907 Operating and maintenance 1,529,860 Charges and services 28,026,607 Depreciation 650,024 Total operating expenses 32,469,399 Operating Gain (Loss) (29,679,400) Non-operating revenues (expenses) Interest income (loss) 4,995,349 Grants and other contributions 32,252,004 Changes in equity interest in joint venture (110,709) Interest and fiscal charges (2,043,494) Total non-operating revenues (expenses) 35,093,150 Gain/(Loss) before operating transfers 5,413,750 Transfers in from Salt Lake City Corporation 22,627,900 Change in net position 28,041,649 Net position, beginning of year 235,537,594 Net position, end of year $ 263,579,243 The accompanying notes are an integral part of this statement 13 Redevelopment Agency of Salt Lake City Statements of Cash Flows For the Fiscal Year Ended June 30, 2023 Cash flows from operating activites Cash received from rentals $ 1,177,647 Cash from miscellaneous income 333 Cash paid to suppliers (29,841,379) Cash paid to employees (2,320,521) Loans disbursed (9,784,191) Principal collected on loans receivable 663,707 Interests collected on loans receivable 668,787 Net cash used in operating activities (39,435,617) Cash flows from capital and related financing activities Payments for acquisition of land and buildings held for sale (5,513,295) Proceeds from sale of capital assets 194,455 Principal received on lease receivable 379,715 Principal payments made on bonds payable (5,815,000) Interest and fiscal charges paid on bonds payable (1,562,318) Net cash used in capital and related financing activities (12,316,443) Cash flows from non-capital and related financing activities Transfers in from Salt Lake City Corporation 22,627,900 Contributions from other taxing entities 32,252,004 Net cash from non-capital and related financing activities 54,879,904 Cash flows from investing activities Interest received from investments and cash and cash equivalents 4,995,349 Distributions received from Interest in Joint Venture 730,930 Net cash from investing activities 5,726,279 Net change in cash and cash equivalents 8,854,123 Cash and cash equivalents, beginning of year 104,960,474 Cash and cash equivalents, end of year 113,814,597 The accompanying notes are an integral part of this statement 14 Redevelopment Agency of Salt Lake City Statements of Cash Flows For the Fiscal Year Ended June 30, 2023 Statement of net position presentation of cash and cash equivalents Unrestricted $ 68,456,820 Restricted 45,357,777 Total cash and cash equivalents, end of year $ 113,814,597 Reconciliation of operating loss to net cash used for operating activities Operating loss $ (29,679,400) Adjustment to reconcile operating loss to net cash used for operating activities Depreciation 650,024 Principal forgiven on loans receivable 159,530 Increase/(decrease) from: Change in interest receivable (69,300) Change in other receivables (419,763) Change in prepaid expenses (52,665) Change in pension assets 484,040 Change in deferred outflows-pension (67,581) Change in accounts payable 27,985 Change in accrued compensation 31,857 Change in net pension liability 169,084 Changes in deferred inflows-pension (675,012) Changes in deferred inflows - leases (873,932) Total (30,315,133) Loans disbursed (9,784,191) Principal collected on loans 663,707 66 Net cash used for operating activities $ (39,435,617) Schedule of Non-Cash Activities Recognition of equity interest in joint venture $ (841,639) Transfer of loans to Salt Lake City Corporation (622,448) 15 Notes to the Financial Statements Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 16 1. Summary of Significant Accounting Policies Organization and History The Redevelopment Agency of Salt Lake City (the Agency) was established in 1969 by Salt Lake City Corporation (the City) pursuant to the provisions of the Community Development and Renewal Agencies Act. The Agency is charged with the responsibility for the elimination of blight through the process of redevelopment in designated project areas. This objective is generally accomplished through: installation of public improvements, grants and loans provided to residents and businesses for improvements, and acquisition and preparation of land sites and sale of such land for development by the private or public sector. As an incentive to a developer, the Agency may sell land for less than its cost or market value. Basis of Presentation The Agency, a separate legal entity that operates as an enterprise fund, is a blended component unit of the City and is included in the City’s annual comprehensive financial report. The accompanying financial statements include certain funds which were established in accordance with bond requirements. The records of the Agency are maintained on the accrual basis of accounting. Cash and Cash Equivalents The Agency considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments Investments are shown at fair value, based upon quoted market prices. A portion of the Agency’s investments at June 30, 2023, are deposited in the pooled cash account of the City. The City’s pooled cash account is invested primarily in the Public Treasurer’s Investment Fund (the Treasurer’s Fund) which is not registered with the Securities and Exchange Commission. Regulatory oversight of the Treasurer’s Fund is provided by the Money Management Council, which is subsequently monitored by the State of Utah. The fair market value of the Agency’s position in the fund is the same as the value of the fund shares owned by the Agency. Allowance for Doubtful Receivables Historically, the Agency has not experienced any significant losses from bad debts in the past. However, the Agency acquired two additional housing loan portfolios. Management believes there are potential impairments with those loan portfolios at June 30, 2023, therefore, a reserve for bad debt expense was established at the time of transfer. The current allowance totals $2,500,000. The allowance will be reviewed each year as portfolio performance changes. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 17 Lease Receivables Lease receivables are recorded by the Agency as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the Agency charges the lessee. Capital Assets Property, equipment, and land are carried at cost. Depreciation of equipment and structures is computed using the straight-line method over the estimated useful lives that range from 5 to 35 years. No depreciation is recorded on construction in process until the construction project is complete and the asset is placed into service. When assets are retired or otherwise disposed of, costs and related accumulated depreciation, if any, are removed, and any resulting gain or loss is included in revenues or expenses. The capitalization threshold for capital assets is $20,000. Land and Buildings Held for Resale Land and buildings held for resale, purchased as part of the Agency’s redevelopment efforts, are carried at the lower of cost or net realizable value. The cost of buildings and improvements that the Agency determines not to be recoverable are expensed. Gains and losses (including impairment) on land and buildings held for resale are included in revenues and expenses. Deferred Outflows and Deferred Inflows of Resources In addition to assets, financial statements will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense) until then. In addition to liabilities, the financial statement will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. Deferred inflows related to leases where Agency is the lessor is reported in the statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on a straight-line basis over the term of the lease. Transfers In and Transfers Out Transfers In are property taxes, sales taxes received and other fees collected by the City and transferred to the Agency. Transfers In of property taxes are the portion of the incremental property tax in the designated program areas attributable to increases over the base year in which the properties were designated as redevelopment areas. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 18 Transfers Out are expenditures of program funds through another City department or operating expenditures for internal services of the City. Revenue Recognition Rental revenue, interest revenue from loans, and miscellaneous revenue are reported as operating revenues. Transactions which are capital, financing or investing related, including transfers in, are reported as non-operating revenues. Revenue for services is recognized at the time the service is performed. Revenue from private donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Operating and Non-Operating Revenue and Expenses Operating revenues and expenses result from providing goods and services relating to the primary operations of the Agency. Other revenues and expenses are reported as non-operating. All expenses related to operating the Agency are reported as operating expenses. Interest expense and financing costs are reported as non-operating expenses. Restricted and Unrestricted Resources Some projects may receive more than one source of funding. The Agency is restricted by some sources to apply funds only to specific approved projects. The Agency priority is to utilize restricted funds, before using unrestricted funds. Pensions For purposes of measuring the net pension asset or liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Utah Retirement Systems Pension Plan (URS) and additions to/deductions from the URS’s fiduciary net position have been determined on the same basis as they are reported by URS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Agency to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 19 2. Cash and Cash Equivalents The following is a summary of cash and cash equivalents at June 30: Cash and cash equivalents Money market accounts $ (17,768,787) Investments in the pooled investment account of Salt Lake City Corporation 131,583,284 Petty Cash 100 $ 113,814,597 Financial statement presentation Unrestricted cash and cash equivalents $ 68,456,820 Restricted cash and cash equivalents, current portion 45,357,777 $ 113,814,597 The Agency maintains funds in the City’s pooled cash and investment accounts. The Agency pays the City or receives from the City an allocation of interest expense or income based upon each of the RDA's fund's relative balance in the pooled accounts. Deposits It is the policy of the City to invest public funds in accordance with principles of sound treasury management and in compliance with state and local laws, regulations, and other policies governing the investment of public funds, specifically according to the terms and conditions of the Utah State Money Management Act of 1974 (the Act) and Rules of the State Money Management Council as currently amended, and the City’s own written investment policy. City policy provides that not more than 25% of the total City funds or 25% of the Qualified Depository’s allotment, whichever is less can be invested in any one Qualified Depository. Not more than 20% of total City funds may be invested in any one certified out-of-state depository institution. However, there shall be no limitation placed on the amount invested with the Treasurer’s Fund and other money market mutual funds, provided that the overall standards of investments achieve the City’s policy objectives. All of the Agency’s deposits during the years ended June 30, 2023, were made with Qualified Depositories. Deposit Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The State of Utah does not require collateral on deposits. As of June 30, 2023, none of the Agency’s cash balance was covered by federal depository insurance. The Agency’s cash balance of $113,814,597 as of June 30, 2023, was uninsured and was not collateralized and therefore was exposed to some degree of custodial credit risk. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 20 Investments The Agency’s investment balance as of June 30, 2023, included in cash and cash equivalents, was $129,433,923. The City may place public money in investments authorized by the Act (U.C.A 51-7-11). The Utah State Treasurer shall ensure that all purchases and sales of securities are settled within 15 days of the trade date. In general, these investments can be any of the following subject to restrictions specified in the Act: Obligations of the U.S. Treasury and most Government-Sponsored Agencies; Commercial paper; Bankers Acceptances; Publicly traded fixed rate corporate obligations; Certain variable rate securities and deposits; Deposits with the State Public Treasurer’s Investment Pool; Certain fixed rate negotiable deposits with a qualified depository or through a certified dealer; Qualifying repurchase agreements; Open-end managed money market mutual funds; Utah State Treasurer’s Investment Pool; and Investment with deferred compensation plan administrators. The Agency did not enter into any reverse repurchase agreements during the year ended June 30, 2023. The Agency does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Fair Value of Investments The Agency measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: • Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than quoted market prices; and, • Level 3: Unobservable inputs. At June 30, 2023, the Agency had $131,583,284 in investments in the pooled investment account of the City, which were invested in the State Public Treasurer’s Investment Pool. These investments were valued by applying the fair value factor, as calculated by the Utah State Treasurer, to the Agency’s average daily balance in the Treasurer’s Fund at June 30, 2023. Such valuation is considered a Level 2 valuation for GASB Statement No. 72 purposes. 3. Restricted Net Position Certain components of net position are restricted by provisions of the applicable bond resolutions adopted and entered into by the Agency (Note 7). The following is a summary of restricted net position at June 30. Restricted for construction improvements under the related bond resolutions $ 21,028,828 Restricted for construction by appropriation 24,328,949 Total restricted net position $ 45,357,777 Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 21 4. Loans and Other Long-Term Receivables The following is a summary of loans and other long-term receivables at June 30. Tax increment rehabilitation loans bearing interest from 0% to 5%. Principal and interest are payable in monthly installments; includes accrued interest of $155,269 $ 28,677,267 Loans bearing interest at 2.5% to 3%, interest payable monthly; collateralized by property, letters of credit, and restricted cash accounts; includes accrued interest of $0 5,180,754 Housing loans bearing interest from 0% to 3%, with principal and interest due monthly; collateralized by property; includes accrued interest of $271,341 18,197,187 Housing Trust Fund loans bearing interest from 0% to 5%, principal and interest payments due monthly or annually; includes $0 accrued interest, net of allowance for doubtful accounts of $2,500,000 17,905,103 Total 69,960,311 Less current portion (724,895) Total loans and other long-term receivables $ 69,235,416 As of June 30, 2023, the Agency had committed to, and approved funding for, additional loans totaling $34,306,462, which funds had not yet been disbursed. 5. Lease Receivables The Agency has accrued a receivable for three parking structure leases. The remaining receivable for these leases was $25,283,294 for the year ended June 30, 2023. Deferred inflows related to these leases were $24,326,002 as of June 30, 2023. Interest revenue recognized on these leases was $897,970 for the year ended June 30, 2023. Principal receipts of $393,438 were recognized during the fiscal year. The interest rate on the leases is 3.5%. Final receipt is expected in fiscal year 2052. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 22 As of June 30, 2023, the Agency anticipates the following payments on lease receivables. Fiscal Year Ended June 30, Principal Interest Total 2024 $ 392,417 $ 884,367 $ 1,276,784 2025 406,508 870,276 1,276,784 2026 458,233 855,085 1,313,318 2027 475,701 838,638 1,314,339 2028 492,737 821,602 1,314,339 2029-2033 3,026,961 3,810,403 6,837,365 2034-2038 3,829,401 3,701,373 7,530,774 2039-2043 4,725,443 3,586,401 8,311,844 2044-2048 6,062,344 3,464,495 9,526,839 2049-2052 5,413,547 3,337,023 8,750,570 Total $ 25,283,293 $ 22,169,663 $ 47,452,956 6. Capital Assets The following is a summary of transactions affecting capital assets for the year ended June 30, 2023: Description Balance July 1, 2022 Additions Transfers Retirements Balance June 30, 2023 Office furniture and equipment $ 500,836 $ — $ — $ (109,235) $ 391,601 Parking facilities and plaza 55,022,531 — — — 55,022,531 Other buildings 666,918 — (90,177) — 576,741 Construction in process 13,348,636 — — — 13,348,636 Land and rights 20,455,049 — 869,927 — 21,324,976 Total 89,993,970 — 779,750 (109,235) 90,664,485 Accumulated depreciation Office furniture and equipment (376,318) (39,228) — 109,235 (306,311) Parking facilities (47,811,176) (594,318) — — (48,405,494) Other buildings (173,022) (16,478) — — (189,500) Total accumulated depreciation (48,360,516) (650,024) — 109,235 (48,901,305) Net capital assets $ 41,633,453 $ (650,024) $ 779,750 $ — $ 41,763,180 Land and rights includes approximately $10,598,000 for Block 79, site of the Delta Center Arena sports complex. Block 79 was leased to Larry H. Miller Arena Corporation for 50 years at $1 per year. The lease will expire on June 7, 2040. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 23 7. Bonds Payable The following is a summary of bonds payable at June 30, 2023. Series 2015A tax increment revenue bonds 2.57% due 2020 through 2029 $ 8,845,000 Series 2019 tax increment revenue refunding bonds (Advanced Refund Series 2013); 1.95% to 2.976%, due 2020 through 2031 41,720,000 Less deferred outflows (4,266,916) Less unamortized discounts (27,637) Total bonds payable 46,270,447 Less amount due within one year 6,075,000 Total bonds payable less amount due within one year $ 40,195,447 The following is a summary of transactions affecting bonds payable for the year ended June 30, 2023: Balance July 1, 2022 Additions Principal Payments and Reductions Balance June 30, 2023 Due Within One Year Federally taxable tax increment revenue bonds Series 2013 $ 3,765,000 $ — $ (3,765,000) $ — $ — Subordinate tax increment revenue bonds Series 2015A 10,075,000 — (1,230,000) 8,845,000 1,300,000 Federally taxable subordinate tax revenue refunding bonds Series 2019 42,540,000 — (820,000) 41,720,000 4,775,000 Less unamortized discounts and deferred outflows (4,831,373) — 536,819 (4,294,554) — Total bond obligations $ 51,548,627 $ — $ (5,278,181) $ 46,270,447 $ 6,075,000 In October 2013, the Agency issued $64,730,000 in federally taxable tax increment revenue bonds, with interest rates ranging from 3.0% to 6.0%. The bond proceeds were used to fund the construction of the Eccles Theater. The Agency received net proceeds of $63,929,046, including accrued interest of $1,377,835, and net of issuance costs of $735,103 (which were expensed on the statement of revenues and expenses and changes in net position), and a discount of $65,851, which is being amortized over the life of the bonds using the straight-line interest method. In May 2015, the Agency issued $12,215,000 in Series 2015A subordinate tax increment revenue bonds and $1,060,000 in Series 2015B taxable subordinate tax increment revenue bonds (total of $13,275,000) for the construction of the Regent Street Improvements. The interest rates on the Series 2015A and 2015B bonds are 2.57% and 2.66%, respectively. The Agency received net proceeds of $12,543,274, including accrued interest of $631,975 and issuance costs of $99,752, which were both expensed as incurred. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 24 In November 2019, the RDA issued Tax Increment Revenue Refunding Bonds Series 2019 at a par amount of $44,640,000, for the purpose of refunding a portion of the Agency's outstanding Taxable Tax Increment Revenue Bonds, Series 2013 (Performing Arts Center Project). The difference between the cash flows required to service the old debt and the cash flows required to service the new debt was $6,133,692. The Agency also incurred a cost of issuance of $347,995, which was expensed as incurred. The bonds carry coupon rates of 1.90% to 2.976% and have a final maturity date of April 1, 2031. The True Interest Cost of the bonds is 2.745%. The refunding of the Series 2013 bonds resulted in net present value savings of $2,305,750. Bond principal and interest maturities are as follows. Year ending June 30, Principal Interest Total Obligation 2024 $ 6,075,000 $ 1,333,604 $ 7,408,604 2025 6,265,000 1,191,945 7,456,945 2026 6,455,000 1,038,946 7,493,946 2027 6,670,000 876,253 7,546,253 2028 6,885,000 701,961 7,586,961 2029-2033 18,215,000 1,019,062 19,234,062 Less unamortized discounts and deferred outflows (4,294,554) — (4,294,554) Total $ 46,270,446 $ 6,161,771 $ 52,432,217 8. Pension Plans General Information about the Plan Plan Description Eligible plan participants are provided with pensions through the Utah Retirement Systems (URS). The URS are comprised of the following pension trust funds: • Public Employees Noncontributory Retirement System (Noncontributory System) • Tier 2 Public Employees Contributory Retirement System (Tier 2 Public Employees System),which is a multiple-employer, cost-sharing, public employee retirement system The Tier 2 Public Employees System became effective July 1, 2011. All eligible employees beginning on or after July 1, 2011, who have no previous service credit with any of the Utah Retirement Systems, are member of the Tier 2 Retirement System. The URS are established and governed by the respective sections of Title 49 of the Utah Code Annotated 1953, as amended. The URS defined benefit plans are amended statutorily by the State Legislature. The Utah State Retirement Office Act in Title 49 provides for the administration of the URS under the direction of the Utah State Retirement Board (URS Board), whose members are appointed by the Governor. URS are fiduciary funds defined as pension (and other employee benefit) trust funds. URS is a component unit of the State of Utah. Title 49 of the Utah Code grants the authority to establish and amend the benefit terms. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 25 URS issues a publicly available financial report that may be obtained by writing to the Utah Retirement Systems, 560 East 200 South, Salt Lake City, Utah 84102 or by visiting the website: www.urs.org. Benefits Provided URS provides retirement, disability, and death benefits. Retirement benefits are as follows: System Final Average Salary Years of Service Required and/or Age Eligible for Benefit Percentage per Year of Service COLA** Noncontributory System Highest 3 years 30 years any age 2.0% per year all years Up to 4% 25 years any age* 20 years age 60* 10 years age 62* 4 years age 65 Tier 2 Public Employees System Highest 5 years 35 years any age 1.5% per year all years Up to 2.5% 20 years age 60* 10 years age 62* 4 years age 65 *with actuarial deductions ** All post-retirement cost-of-living adjustments are non-compounding and are based on original benefit except for Judges, which is a compounding benefit. The cost-of-living adjustments are also limited to the actual Consumer Price Index (CPI) increase for the year, although unused CPI increases not met may be carried forward to subsequent years. Contributions As a condition of participation in the URS, employers and/or employees are required to contribute certain percentages of salary and wages as authorized by statute and specified by the URS Board. Employer contributions are actuarially determined as an amount that, when combined with employee contributions (where applicable) is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded actuarial accrued liability. Contributions rates as of June 30, 2023, are as follows: Employee Paid Employer Paid Employer 401(k) Noncontributory System 15 Local Government Div - Tier 1 N/A 17.97 % N/A Tier 2 DC Only 211 Local Government N/A 6.19 % 10.00 % For the year ended June 30, 2023, the employer and employee contributions to the URS were as follows: Employer Contributions Employee Contributions Noncontributory System $ 103,603 N/A Tier 2 Public Employees System 154,707 N/A Total Contributions $ 258,310 $ — Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 27 Year ended December 31, Net Deferred Outflows (Inflows) of Resources 2023 $ (38,169) 2024 4,064 2025 48,337 2026 175,121 2027 1,424 Thereafter 6,092 Actuarial assumptions The total pension asset in the December 31, 2022 actuarial valuations was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.50% Salary increases 3.25 - 9.25%, average, including inflation Investment rate of return 6.85%, net of pension plan investment expenses, including inflation Mortality rates were adopted from an actuarial experience study dated January 1, 2020. The retired mortality tables are developed usng URS retiree experience and are based upon gender, occupation, and age as appropriate with projected improvement using 80% of the ultimate rates from the MP-2019 improvement assumption using a base year of 2020. The mortality assumption for active members is the PUB-2010 Employees Mortality Table for public employees, teachers, and public safety members, respectively. The actuarial assumptions used in the January 1, 2022, valuation were based on an experience study of the demographic assumptions as of January 1, 2020, and a review of economic assumptions as of January 1, 2021. The long-term expected rate of return on pension plan investments was determined using a building-block method, in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class and is applied consistently to each defined benefit pension plan. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 28 Expected Return Arithmetic Basis Asset class Target Asset Allocation Real Return Arithmetic Basis Long-Term Expected Portfolio Real Rate of Return Equity securities 35.00 % 6.58 % 2.30 % Debt securities 20.00 % 1.08 % 0.22 % Real assets 18.00 % 5.72 % 1.03 % Private equity 12.00 % 9.80 % 1.18 % Absolute return 15.00 % 2.91 % 0.44 % Cash and cash equivalents — % (0.11) % — % Totals 100.00 % 5.17 % Inflation 2.50 % Expected arithmetic nominal return 7.67 % The 6.85% assumed investment rate of return is comprised of an inflation rate of 2.50% and a real return of 4.35% that is net of investment expense. Discount Rate The discount rate used to measure the total pension liability was 6.85 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate, and that contributions from all participating employers will be made at contractually required rates that are actuarially determined and certified by the URS Board. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current, active, and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments, to determine the total pension liability. The discount rate does not use the Municipal Bond Index Rate. Sensitivity of the Proportionate Share of the Net Pension Asset and Liability to Changes in the Discount Rate The following presents the proportionate share of the net pension liability calculated using the discount rate of 6.85 percent, as well as what the proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (5.85 percent) or 1 percentage point higher (7.85 percent) than the current rate: 1% Decrease Discount Rate 1% Increase 5.95% 6.95% 7.95% Noncontributory System $ 793,981 $ 125,982 $ (432,166) Tier 2 Public Employees System 188,334 43,102 (68,780) Total $ 982,315 $ 169,084 $ (500,946) Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 29 Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued URS financial report. Defined Contribution Savings Plans The Defined Contribution Savings Plans are administered by the URS Board and are generally supplemental plans to the basic retirement benefits of the URS, but may also be used as a primary retirement plan. These plans are voluntary, tax-advantaged retirement savings programs authorized under sections 401(k), 457(b), and 408 of the Internal Revenue code. Detailed information regarding plan provisions is available in the separately issued URS financial report. The Agency participates in the following Defined Contribution Savings Plans with URS: • 401(k) plan • 457(b) plan • Roth IRA plan • Traditional IRA plan Employer and employee contributions to the URS Defined Contribution Savings Plans for the years ended June 30, were as follows. 2023 2022 2021 401(k) Plan Employer contributions $ 62,175 $ 33,006 $ 37,442 Employee contributions 79,079 55,449 43,410 457(b) Plan Employer contributions — — — Employee contributions 43,280 34,450 9,830 Roth IRA Plan Employer contributions — N/A N/A Employee contributions 15,120 11,511 13,364 Traditional IRA Plan Employer contributions — N/A N/A Employee contributions 1,981 — — Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 30 9. Equity Interest in Joint Venture Formation In March 2013, the Agency, along with Salt Lake City (City) and Salt Lake County (County), executed an Interlocal Cooperation Agreement to form and create a separate legal entity, the Utah Performing Arts Center Agency (UPACA), an interlocal entity that will own, operate, maintain and improve the George S. and Dolores Doré Eccles Theater (Theater). Structure The Agency owns 41.85%, with the City owning 33.15%, and the County owning 25% in UPACA. UPACA is governed by a board of trustees consisting of nine members. Board membership is comprised of three representatives appointed by the County and six representatives appointed by the City/Agency. Each representative has one vote and each representative's term continues until a successor is appointed. Operation In March 2013, an Operating Agreement was entered into by UPACA, the Agency, the City and the County assigning responsibility for the operation and management to the County Center for the Arts (CFA) through December 31, 2041. CFA accounts for UPACA on a calendar year. Net operating income is distributed annually to the partners in amounts outlined in organizational agreements after required contributions to operating and capital reserve accounts. The County is responsible for any operating deficits of the Eccles Theater. The Agency is responsible for any operating loss of the Eccles Site. Equity The Agency began construction on the Theater in 2014. The Theater, which hosts national touring Broadway shows, concerts, comedy and other entertainment events, opened its doors on October 20, 2016. The first full year of operations for UPACA ended December 31, 2017. The Agency formally transferred all assets to UPACA as of July 2017, for accounting purposes. The Agency's equity interest in the net position of UPACA at December 31, 2022 was $50,427,599. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 31 Summary financial information for UPACA for 2022 is as follows: Utah Performing Arts Center Agency Summary Financial Information As of and for the Year Ended December 31, 2022 Pooled Cash and Investments $ 13,142,789 Accounts Receivable and prepaid expenses 942,857 Capital assets, net of accumulated depreciation 115,398,120 Total assets 129,483,766 Accounts payable and accrued expenses 4,122,957 Show proceeds held for others 4,474,030 Due to Salt Lake County 390,724 Total liabilities 8,987,711 Total net position $ 120,496,055 Charges for services $ 8,597,041 Contributions and other revenues 50,000 Operating expenses (5,358,196) Interest expense (45,163) Depreciation (2,691,556) Income (loss) before distributions 552,126 Distributions to owners (2,563,210) Change in Net Postion $ (2,011,084) Audited financial statements for UPACA may be obtained from Salt Lake County Arts and Culture, 50 West 200 South, Salt Lake City, UT 84101, or by calling 385-468-1020. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 32 10. Commitments and Contingencies During the year ended June 30, 2013, the City issued $15,000,000 of Bond Anticipation Notes (BANS) to begin construction on the Eccles Theater. These bonds were issued in expectation of the issuance of the Tax Increment Bonds (as discussed in Note 7) and the Sales Tax Revenue Bonds issued by the City (as discussed below). The City received the proceeds of the BANS and paid design and pre-construction costs. During the year ended June 30, 2014, the City issued Series 2013A Sales Tax Revenue Bonds in the amount of $51,270,000 to aid in financing the construction of the Eccles Theater. With the proceeds of these bonds, the City paid off the BANS and the remaining net proceeds of $34,349,587 were transferred to the Agency as a contribution from the City. Bond issuance costs and accrued interest of $1,920,413 were recognized by the Agency as expense. In addition, upon issuance of the bonds, the Agency used private donations of $2,596,649 and contributed $1,104,957 of its own funds into an escrow account for capitalized interest on the bonds. In December 2019, the City completely refunded the Series 2013A bonds by issuing Series 2019B taxable sales and excise tax revenue refunding bonds in the amount of $58,540,000, saving the Agency over $11,000,000 in principal and interest payments. As of June 30, 2023, anticipated cumulative payments remaining under the agreement were $76,689,609. Anticipated payments are included in the table below. The Agency will remit principal and interest payments semi-annually to the City per the debt service schedules as a contribution to the City (expense). Total anticipated payments are as follows. Annual Year ending June 30, Obligation 2024 2,188,086 2025 2,187,723 2026 2,186,443 2027 2,184,427 2028 2,186,796 2029-2033 23,472,420 2034-2038 42,283,714 Total $ 76,689,609 As discussed previously, proceeds from the Series 2013 Agency bonds and Series 2013A City bonds provided financing for the construction of the Eccles Theater on Block 70 within the Central Business District (CBD). The remaining non-refunded portion of the Agency's Series 2013 bonds were paid in fiscal year 2023. The Series 2019 taxable tax increment revenue refunding bonds issued by the Agency mature in 2031. The Series 2019 taxable sales and excise tax revenue refunding bonds (advance refunding of Series 2013A) issued by the City are payable through fiscal year 2038. The annual debt service will be funded by the incremental property taxes generated from the CBD Project area, Block 70 Community Development Area (CDA) and private donations. Annual principal and interest payments on the bonds associated with the Theater are expected to require approximately 30% of tax increment revenues generated from CBD and Block 70, beginning in fiscal year 2016. As of June 30, 2023, the total principal and interest remaining to be paid on all bonds for the Eccles Theater project was $123,749,493. The Agency has pledged future tax increment revenues to repay the remaining Series 2019 Tax Increment and Series 2019A Sales Tax Revenue Refunding bonds. Through inter-local agreements entered into with the City and Salt Lake County (the County), CBD tax increment revenue that would have been remitted to these agencies has been pledged to the Agency through tax year 2040. In December 2011, the Agency entered into an agreement with Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 33 the City in which the Agency will retain a portion of the City's Taxing Entity Committee (TEC) allocation, in order to pay principal and interest on the Theater bond obligations. Each year, beginning in tax year 2015 through 2040, the City will continue to receive from the Agency a dollar amount equal to the 2014 TEC allocation. The original inter-local agreement specified that the Agency will retain 80% of the remaining TEC allocation. This inter-local agreement was subsequently amended in May 2013 to provide that the Agency will retain up to 100% of the remaining TEC allocation, as is necessary to fund debt service payments. The Agency is required to reimburse the City for any portion of this additional TEC allocation that is utilized for debt service on the Eccles Theater, with the balance accruing interest at the City's general fund rate. The Agency is required to commit CBD tax increment in an amount equal to the City allocation under these agreements. Similarly, in October 2012, the Agency entered into an interlocal agreement with the County wherein the Agency is entitled to retain the County's portion of the CBD tax increment up to a maximum of $43,000,000. The County will continue to receive from the Agency a dollar amount equal to the 2014 TEC allocation each year beginning in tax year 2015 through 2040, and the Agency will retain the remaining TEC allocation to fund debt service on the Eccles Theater project. During the fiscal year ended June 30, 2023, the Agency transferred $6,520,478 in CBD incremental tax revenue to Block 70 for Eccles debt service per the agreements, and transferred an additional $2,469,853 in available CBD tax increment revenue. In addition, the Agency entered into an inter-local agreement with the City and the Salt Lake City School District (SLCSD) wherein the Agency is entitled to receive the City's and SLCSD's portions of the tax increment from the Block 70 CDA for twenty-five years, beginning in the tax year 2016, for the purpose of funding debt service on the Eccles Theater. The tax increment funds are not limited to funding debt service, but will also be used to fund the creation of a cultural core and for debt service on the Regent Street improvement bonds. In addition, in September 2012, the Agency entered into an agreement with the County wherein the Agency is entitled to receive the County’s portion of the Tax Increment from the Block 70 CDA for 25 years, beginning in tax year 2016, up to a maximum of $7,000,000 for the purposes of funding debt service on the Eccles Theater. During the year ended June 30, 2023, the Agency received an additional $4,150,044 in incremental property taxes under these agreements. The Agency expended $9,564,596 to cover the principal and interest payments due during the year. During the year ended June 30, 2007, the Agency entered into a reimbursement agreement with Rio Grande Development LLC, a developer of a project within the Agency's Depot District Project Area. Tremonton Hospitality LLC, dba Urban Suites assumed the agreement through an assignment and assumption agreement signed in June 2016. NF IV-VA SSCI Salt Lake LLC assumed the agreement through an assignment and assumption agreement signed in Fiscal Year 2021. Under this agreement, the Agency is obligated to repay to the developers, from the tax increment revenue increases received from the prospective projects, at the lesser of $2,020,000 or 37.5% of the tax increment increases over the reimbursement term, plus accrued interest, but not to exceed the tax increment revenues received by the Agency from the individual projects. These obligations are also subject to the developers paying property taxes in a timely manner and the receipts of certificates project completion. For the year ended June 30, 2023, the Agency paid the developers $73,047. During the year ended June 30, 2010, the Agency entered into a reimbursement agreement with 222 S. Main Investments, LLC, a developer of a project within the Agency’s Central Business District Project Area. Under this agreement, the Agency is obligated to repay to the developers 85% of the tax increment revenues received by the Agency from the respective project up to the lesser of: 1) total developer costs less $127,300,000 or 2) $6,000,000, plus accrued interest of 5.9%, over the reimbursement term, which expires in January 2031. These obligations are also subject to the developers paying property taxes on a timely basis, the receipt of certificates of project completion, and annual certificates of compliance with the other terms of the reimbursement agreement. For the year ended June 30, 2023, the Agency recorded expenses of $559,841. Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 34 During the year ended June 30, 2015, the Agency entered into a reimbursement agreement with Liberty Gateway Properties, L.C. (Liberty) for a mixed-use housing project located on 500 West between South Temple and 100 South, in the Agency’s Depot District Project Area. The agreement provides a tax increment reimbursement to the Developer for costs incurred in connection with the associated parking garage component of the project from the tax increment created from the property. Under the agreement, the Agency will pay the Developer a reimbursement amount equal to the sum of 1) $3,000 multiplied by the actual number of eligible at-grade structured parking stalls (up to a maximum of 48 stalls), plus 2) $6,000 multiplied by the actual number of below- grade structured parking stalls (up to a maximum of 112), together with simple interest accrued thereon. The maximum that will be reimbursed is $816,000. The reimbursement term is for the tax years 2015 through 2022. The Agency will make an annual payment to the Developer during the reimbursement term in an amount equal to 72% of the tax increment for such year actually received by the Agency until the earlier to occur of 1) Developer has received an amount equal to the reimbursement amount or 2) the expiration of the reimbursement term. These obligations are subject to the Developer paying property taxes on a timely basis, receipts of certificates of project completion, and other annual reporting duties as defined in the reimbursement agreement. For the year ended June 30, 2023, the Agency recorded expenses of $129,148. During the year ended June 30, 2017, the Agency and Larry H. Miller Arena Corporation (the "Lessee"), entered into a Participation and Reimbursement Agreement for the renovation of the Delta Center Arena at 301 West South Temple, as part of the Central Business District Neighborhood Redevelopment Project Area Plan. This agreement outlines the Agency's commitment to partially reimburse the Lessee for public area upgrades through tax increment financing, with a cap of $15,946,396 for Tax Increment (TI) Reimbursement Payments and $6,753,604 for Grant Reimbursement Payments, ensuring the total reimbursement does not exceed $22,700,000. The Reimbursement Term will expire December 31, 2040, with annual payments contingent on the Lessee's compliance with specific conditions, including project completion, property tax payments, and maintaining the Arena as the home venue for Utah Jazz NBA games. The Agency retains the right to issue bonds secured by the tax increment, with the understanding that this will not absolve it of its obligations under this agreement. The Agency's financial commitment, encompassing both TI and Grant Reimbursement Payments, is firmly capped, and any shortfall in tax increment generation will not extend the Agency's obligations beyond the agreed term. For the year ended June 30, 2023, the Agency recorded expenses of $657,881, which consisted of $350,899 of TI Reimbursement Payments and $306,982 of Grant Reimbursement Payments. During the year ended June 30, 2019, the Agency entered into a reimbursement agreement with Stadler US, Inc, a developer of a project located within the Agency’s Stadler Rail Project Area. Under the agreement, the Agency is obligated to reimburse the developers, from the tax increment revenues received from the respective projects, up to $9,610,721 over a twenty (20) year term, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. For the year ended June 30, 2023, the Agency made reimbursements to Stadler for tax years 2019-2022 totaling $350,941. During the year ended June 30, 2020, the Agency entered into a reimbursement agreement with NWQ, LLC, a developer of a project located within the Agency’s Northwest Quadrant Project Area. Under the agreement, the Agency is obligated to reimburse the developers, from the tax increment revenues received from the respective projects, up to $28,000,000 over a nineteen (19) year term, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. The first reimbursement was made for tax years 2019-2021. The total reimbursement paid for the year ended June 30, 2023 to NWQ LLC, was $154,107. During the year ended June 30, 2020, the Agency entered into a reimbursement agreement with West Quarter Residential I, LLC, a developer of a project located within the Agency’s Block 67 Project Area. Under the agreement, the Agency is obligated to reimburse the developers, from the tax increment revenues received from Redevelopment Agency of Salt Lake City Notes to Financial Statements June 30, 2023 35 the respective projects, up to $15,000,000 over a twenty (20) year term as a pass-through from Salt Lake County for transportation funds from the State of Utah, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. The first year of reimbursement was anticipated to be for the 2022 tax year. No payments were made during the ended June 30, 2023. In March, 2008, the Agency and the State of Utah (State) entered into a lease agreement for the rental by the State of 250 parking stalls in a parking structure owned by the Agency. The lease requires monthly payments of $20 per stall, for a total of $5,000 per month. The lease term is 20 years. In addition, the lease includes a provision for the repayment of a portion of the construction costs to be paid by the State of $350,000 over the term of the parking rental agreement. The repayment terms requires interest of 3% and monthly payments of $2,077, in addition to the monthly rent payments. The balance of the unpaid amount as of June 30, 2023, was $69,533, which has been recorded as a note receivable. 11. Concentrations Operating revenues are not adequate to fund operations of the Agency. The Agency received $46,422,496 of transfers of tax increment from various taxing entities during the year ended June 30, 2023, which were recorded as non-operating revenues of $32,252,004 in Grants and other contributions, and $14,170,492 in Transfers In. These funds are critical for the continuing operations of the Agency. 36 Required Supplementary Information June 30, 2023 Redevelopment Agency of Salt Lake City 37 Redevelopment Agency of Salt Lake City Schedule of the Proportionate Share of the Net Pension Liability December 31, 2022 Last 10 Years* ___________________________________________________________________________________________ Noncontributory System 2023 2022 2021 2020 2019 2018 2017 2016 Proportion of the net pension liability 0.07% 0.08% 0.09% 0.04% 0.07% 0.06% 0.05% 0.07% Proportionate share of the net pension liability $ 125,982 $(465,973) $ 351,656 $ 285,453 $ 301,169 $ 405,107 $ 297,064 $ 317,700 Covered payroll $ 573,163 $ 631,023 $ 743,599 $ 312,019 $ 558,845 $ 477,356 $ 432,740 $ 611,285 Proportionate share of the net pension liability as a percentage of its covered payroll 21.98% (73.84)% 47.29% 91.49% 53.89% 84.86% 68.65% 51.97% Plan fiduciary net position as a percentage of the total pension liability 97.50% 107.70% 93.70% 87.00% 91.90% 87.30% 87.80% 90.20% Tier 2 Public Employees System 2023 2022 2021 2020 2019 2018 2017 2016 Proportion of the net pension liability 0.04% 0.04% 0.05% 0.02% 0.02% 0.03% 0.04% 0.02% Proportionate share of the net pension li bilit /( t) $ 43,102 $ (18,067) $ 12,332 $ 9,117 $ 2,007 $ 3,445 $ (83) $ (726) Covered payroll $ 942,654 $ 792,345 $ 761,977 $ 248,511 $ 222,660 $ 269,084 $ 245,666 $ 117,554 Proportionate share of the net pension li bilit /( t) as a percentage of its covered payroll 4.57% (2.28)% 1.62% 3.67% 0.09% 1.28% (0.03)% (0.62)% Plan fiduciary net position as a percentage of the total pension liability 97.70% 103.80% 90.80% 90.80% 97.40% 95.10% 100.20% 103.50% *In accordance with paragraph 81.a of GASB 68, employers will need to disclose a ten-year history of their proportionate share of the Net Pension Liability/(Asset) in their RSI. The ten-year schedule will need to be built prospectively. The schedule above is for the eight years currently available. 38 Redevelopment Agency of Salt Lake City Schedule of Contributions June 30, 2023 Last 10 Fiscal Years* ___________________________________________________________________________________________ Noncontributory System 2023 2022 2021 2020 2019 2018 2017 2016 Actuarial determined contributions $ 103,603 $ 114,810 $ 134,849 $ 56,778 $ 105,455 $ 91,614 $ 140,147 $ 175,299 Contributions in relation to the contractually required contribution (103,603) (114,810) (134,849) (56,778) (105,455) (91,614) (140,147) (175,299) Contribution deficiency $ — $ — $ — $ — $ — $ — $ — $ — Covered employee payroll $ 573,163 $ 625,677 $ 734,726 $ 309,377 $ 575,011 $ 499,259 $ 432,740 $ 637,982 Contributions as a percentage of covered payroll ** 18.08% 18.35% 18.35% 18.35% 18.34% 18.35% 32.39% 27.48% Tier 2 Public Employee System *** 2023 2022 2021 2020 2019 2018 2017 2016 Actuarial determined contributions $ 17,566 $ 17,836 $ 16,191 $ 5,582 $ 5,169 $ 40,101 $ 33,041 $ 16,040 Contributions in relation to the contractually required contribution (17,566) (17,836) (16,191) (5,582) (5,169) (40,101) (33,041) (16,040) Contribution deficiency $ — $ — $ — $ — $ — $ — $ — $ — Covered employee payroll $ 942,654 $ 228,743 $ 230,509 $ 276,833 $ 204,783 $ 268,954 $ 244,828 $ 122,688 Contributions as a percentage of covered payroll ** 1.86% 7.80% 7.02% 2.02% 2.52% 14.91% 13.50% 13.07% *In accordance with paragraph 81.a of GASB 68, employers will need to disclose a ten-year history of their proportionate share of the Net Pension Liability/(Asset) in their RSI. The ten-year schedule will need to be built prospectively. The schedule above is for the eight years currently available. **Contributions as a percentage of covered payroll may be different than the URS Board certified rate due to rounding or other administrative issues. ***Contributions in Tier 2 include an amortization rate to help fund the unfunded liabilities in the Tier 1 systems. Tier 2 systems were created effective July 1, 2011. 39 Supplementary Information June 30, 2023 Redevelopment Agency of Salt Lake City Redevelopment Agency of Salt Lake City Combining Statements of Net Position Information by Project Area June 30, 2023 9-Line Block 70 CDA CBD Citywide Housing Depot District Granary District Housing Development Trust North Temple North Temple Viaduct Northwest Quadrant Northwest Quadrant Housing Program Income Fund Project Area Housing RDA Admin Revolving Loan Fund Stadler State Street Sugarhouse Project West Capital Hill West Temple Gateway Total Assets Cash and cash equivalent (unrestricted) $ 3,072,061 $(17,729,058)$ 14,215,990 $ 10,698,233 $ 4,035,812 $ 6,266,190 $ 6,514,036 $ 3,030,782 $ 58,395 $ 1,042,251 $ 873,866 $ 9,171,682 $ 2,321,522 $ 2,631,180 $ 15,080,779 $ 12,249 $ 6,101,351 $ 60,758 $ 912,693 $ 86,049 $ 68,456,820 Loans and other receivable — 1,309,908 3,727,703 17,128,528 — 136,962 22,547,385 4,475,342 — — — 26,261,003 — — 18,926,823 — — — — — 94,513,654 Cash and cash equivalent (restricted)25,246,305 1,990,429 91,584 8,311,474 2,345,770 645,664 2,060,459 3,774,933 43,721 12,295 194,908 636,507 3,727 45,357,777 Land and water rights — 4,790,823 15,664,227 — — — — — — — — 869,927 — — — — — — — — 21,324,976 Improvements - other than buildings — — 55,022,530 — — — — — — — — — — — — — — — — — 55,022,530 Buildings — — — — — — — — — — — — 576,742 — — — — — — — 576,742 Machinery and equipment — — 191,265 — — — — — — — — 34,975 — 165,361 — — — — — — 391,601 Construction in process — 12,683,590 665,047 — — — — — — — — — — — — — — — — — 13,348,636 Accumulated depreciation — — (48,510,558)— — — — — — — — (34,975)(189,500)(166,272)— — — — — — (48,901,305) Land and buildings held for sale — — 4,615,001 1,000,000 18,633,492 — — — — — — 6,402,452 3,454,690 — 1,247,515 — — 1,414,806 28,590 — 36,796,546 Investment in Joint Venture — 50,427,599 — — — — — — — — — — — — — — — — — — 50,427,599 Other assets 2,344 4,688 9,375 — 23,047 — — 2,148 — — — — — 33,000 — — — 7,031 4,688 2,344 88,665 Total Assets 3,074,405 76,733,854 47,591,008 28,918,346 31,003,825 6,403,152 31,407,190 8,153,936 58,395 3,102,710 873,866 46,479,998 6,207,174 2,675,563 35,450,025 12,249 6,101,351 1,482,595 1,582,478 92,120 337,404,241 Deferred outflows — 4,266,916 — — — — — — — — — — — 346,956 — — — — — — 4,613,873 Total assets and deferred outflows $ 3,074,405 $ 81,000,771 $ 47,591,008 $ 28,918,346 $ 31,003,825 $ 6,403,152 $ 31,407,190 $ 8,153,936 $ 58,395 $ 3,102,710 $ 873,866 $ 46,479,998 $ 6,207,174 $ 3,022,520 $ 35,450,025 $ 12,249 $ 6,101,351 $ 1,482,595 $ 1,582,478 $ 92,120 $ 342,018,114 Liabilities Accounts payable and accrued liabilities $ — 1,838,407 (108,528)— 123,958 1,000 — — — — — 288,282 19,521 64,890 23,261 — — 63,000 428,361 3,000 $ 2,745,152 Accrued compensation - current — — — — — — — — — — — — — 37,680 — — — — — — 37,680 Accrued interest payable - current — 333,401 — — — — — — — — — — — — — — — — — — 333,401 Bonds payable - current portion — 6,075,000 — — — — — — — — — — — — — — — — — — 6,075,000 Pension liability — — — — — — — — — — — — — 169,084 — — — — — — 169,084 Long term compensation liability — — — — — — — — — — — — — 285,056 — — — — — — 285,056 Advances from (to) other funds — 1,150,000 (1,150,000)— — — — — — — — — — — — — — — — — — Bonds payable, net — 44,462,363 — — — — — — — — — — — — — — — — — — 44,462,363 Total liabilities — 53,859,171 (1,258,528)— 123,958 1,000 — — — — — 288,282 19,521 556,711 23,261 — — 63,000 428,361 3,000 54,107,737 Deferred inflows — — — — — — — — — — — 24,326,002 — 5,132 — — — — — — 24,331,134 Fund Balance Net position, beginning 1,370,211 24,045,385 44,022,184 26,197,294 28,084,228 4,543,887 27,928,124 7,348,647 34,412 2,085,658 573,696 21,045,331 6,149,883 1,922,779 34,604,624 240,381 2,631,695 667,394 1,551,432 490,347 235,537,594 Revenues 4,342,047 11,057,955 30,114,898 5,119,245 7,592,514 1,942,255 8,079,495 1,807,482 2,745,502 1,587,495 1,674,276 12,625,595 78,669 4,666,017 1,253,972 144,088 7,806,726 768,782 634,645 16,980 104,058,639 Expenses 2,637,853 7,961,740 28,032,048 2,398,193 4,796,875 1,286,360 4,600,429 1,002,193 2,721,519 570,444 1,374,106 7,858,340 40,899 4,128,119 431,832 372,220 4,337,070 16,581 1,031,961 418,208 76,016,990 Net transfers in (out)(543,115)6,525,166 (8,169,250)2,322,243 (2,355,107)(378,582)3,081,321 (294,533)(40,800) (274,226) (1,374,106) 3,585,025 — 20,125,624 550,000 (21,751) (867,414) 750,744 6,323 337 22,627,900 Total net position, ending 3,074,405 27,141,600 46,105,034 28,918,346 30,879,867 5,199,782 31,407,190 8,153,936 58,395 3,102,710 873,866 25,812,585 6,187,654 2,460,677 35,426,764 12,249 6,101,351 1,419,595 1,154,117 89,120 263,579,243 Total liabilities, deferred inflows and net position $ 3,074,405 81,000,771 44,846,506 28,918,346 31,003,825 5,200,782 31,407,190 8,153,936 58,395 3,102,710 873,866 50,426,869 6,207,174 3,022,520 35,450,025 12,249 6,101,351 1,482,595 1,582,478 92,120 $ 342,018,114 40 41 Redevelopment Agency of Salt Lake City Combining Statement of Revenues and Expenses and Changes in Net Position by Fund Fiscal Year Ended June 30, 2023 9-Line Block 70 CDA CBD Citywide Housing Depot District Granary District Housing Develop- ment State Street North Temple North Temple Viaduct CDA Northwest Quadrant Northwest Quadrant Housing / UIPA Program Income Fund Project Area Housing RDA Admini- stration Revolving Loan Fund Stadler Sugarhouse Project West Capital Hill West Temple Gateway Total Revenue Net transfers In(Out)$ (543,115) $ 6,525,166 $ (8,169,250)$ 2,322,243 $ (2,355,107)$ (378,582) $ 3,081,321 $ (294,533) $ (40,800) $ (274,226)$ (1,374,106)$ 3,585,025 $ — $ 20,125,624 $ 550,000 $ (21,751) $ (867,414) $ 750,744 $ 6,323 $ 337 $ 22,627,900 Grants and Other Contributions 2,601,746 1,925,503 25,941,783 — 5,316,113 1,081,675 — 988,936 2,720,019 1,371,125 1,545,843 (171,737)— (15,544,598) — 138,526 4,337,070 — — — 32,252,004 Interest on Investments — 144,087 2,336,613 332,754 370,203 147,486 218,740 110,886 25,483 74,259 128,433 408,211 68,669 84,659 1,398 5,562 — 1,457 525,969 10,478 4,995,349 Rental & other income — — 45,138 66,056 — — 307,005 — — — — 2,013,893 — — 357,574 — — — — — 2,789,666 Miscellaneous revenue — — — — — — — — — — — — — 332 — — — — — — 332 Changes in Equity in JV — (110,709)— — — — — — — — — — — — — — — — — — (110,709) Gain/Loss on sale of capital assets — — — — — — — — — — — — — — — — — — — — — Total revenue $ 2,058,631 $ 8,484,047 $ 20,154,284 $ 2,721,052 $ 3,331,209 $ 850,580 $ 3,607,066 $ 805,289 $ 2,704,702 $ 1,171,158 $ 300,169 $ 5,835,393 $ 68,669 $ 4,666,017 $ 908,972 $ 122,337 $ 3,469,656 $ 752,201 $ 532,293 $ 10,815 $ 62,554,541 Expense Personal Services $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 2,262,907 $ — $ — $ — $ — $ — $ — $ 2,262,907 O & M — — — — — — — — — — — — — 14,572 — — — — — — 14,572 Charges & Services 354,437 3,344,338 17,470,961 — 535,570 194,685 128,000 — 2,680,719 154,107 — 1,068,139 14,421 1,817,568 86,832 350,470 — — 929,609 412,042 29,541,896 Depreciation — — 600,473 — — — — — — — — — 16,478 33,072 — — — — — — 650,024 Interest & Fiscal Charges — 2,043,494 — — — — — — — — — — — — — — — — — — 2,043,494 Contribs to SLC — — — — — — — — — — — — — — — — — — — — — Total expense 354,437 5,387,832 18,071,434 — 535,570 194,685 128,000 — 2,680,719 154,107 — 1,068,139 30,899 4,128,119 86,832 350,470 — — 929,609 412,042 34,512,892 Changes in net position $ 1,704,194 $ 3,096,215 $ 2,082,850 $ 2,721,052 $ 2,795,639 $ 655,895 $ 3,479,066 $ 805,289 $ 23,983 $ 1,017,051 $ 300,169 $ 4,767,254 $ 37,771 $ 537,897 $ 822,140 $ (228,132) $ 3,469,656 $ 752,201 $ (397,316) $ (401,227) $ 28,041,649 42 Redevelopment Agency of Salt Lake City Selected Financial Information by Project Area Fiscal Year Ended June 30, 2023 9-Line Block 70 CDA CBD Citywide Housing Depot District Granary District Housing Develop- ment State Street North Temple North Temple Viaduct CDA Northwest Quadrant Northwest Quadrant Housing / UIPA Program Income Fund Project Area Housing RDA Admini- stration Revolving Loan Fund Stadler Sugarhouse Project West Capital Hill West Temple Gateway Total Grants and Other Contributions $ 2,601,746 $ 1,925,503 $ 25,941,783 $ — $ 5,316,113 $ 1,081,675 $ — $ 988,936 $ 2,720,019 $ 1,371,125 $ 1,545,843 $ (171,737) $ — $ (15,544,598) $ — $ 138,526 $ 4,337,070 $ — $ — $ — $ 32,252,004 Loans receivable principal received — — — 39,930 — — 321,379 — — — — — 38,642 — — 263,757 — — — — 663,707 Interest on investments — 144,087 2,336,613 332,754 370,203 147,486 218,740 110,886 25,483 74,259 128,433 408,211 68,669 84,659 1,398 5,562 — 1,457 525,969 10,478 4,995,349 Bonds payable — 50,537,363 — — — — — — — — — — — — — — — — — — 50,537,363 Interest and fiscal charges — 1,562,318 — — — — — — — — — — — — — — — — — — 1,562,318 Debt principal paid — 5,815,000 — — — — — — — — — — — — — — — — — — 5,815,000 Origination of loans — — 225,437 2,622,658 — 136,962 4,768,750 4,475,342 — — — — — — 1,872,994 — — — — — 14,102,143 Refunds of tax increment 284,437 505,445 12,704,953 — 202,195 — — — — 154,107 — — — — — 350,941 — — — — 14,202,078 Personal Services — — — — — — — — — — — — — 2,262,907 — — — — — — 2,262,907 Operating & Maintenance — — — — — — — — — — — — — — 1,529,860 — — — — — 1,529,860 Charges & Services 354,437 3,344,338 17,470,961 — 535,570 194,685 128,000 — 2,680,719 154,107 — 1,068,139 14,421 1,817,568 86,832 350,470 — — 929,609 412,042 29,541,896 Budgetary transfers in (out)(336,889) 6,623,842 (9,381,157) 1,993,593 (1,807,887)(316,685)— (657,924) (197,990)(36,542) (310,605)103,535 4,340,960 (16,250)— — Depreciation 613,146 16,478 33,855 663,479 MAYOR ERIN MENDENHALL DANNY WALZ Executive Director Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE:December 22, 2023 PREPARED BY:Ashley Ogden, Senior Project Manager Marcus Lee, Project Coordinator Cara Lindsley, Deputy Director RE:USA Climbing at Station Center – Property Disposition at approximately 310 South 500 West REQUESTED ACTION:Review the proposed term sheet and consider approving via attached resolution POLICY ITEM:Property Disposition, Budget BUDGET IMPACTS:Proposed ground lease abatement and ~$8 million in direct financial contribution and outside costs EXECUTIVE SUMMARY: The RDA has been engaged in discussions with USA Climbing centered on the opportunity of locating their permanent headquarters and national training facility on RDA-owned property at approximately 310 South 500 West, which is within the bounds of the Station Center redevelopment project. The RDA and USA Climbing have negotiated the proposed term sheet (Attachment A), and key terms are summarized in this memo. The RDA proposes to enter into a 99-year ground lease agreement with USA Climbing and requests that the Board consider approving the requested lease abatement, which involves no lease payments being charged while the facility is under construction and stabilization, and subsequent escalation of the lease rate until 60% of fair market value (FMV) is reached. In addition, the proposed terms call for multiple areas of direct RDA investment in the project that will require Board approval and are being proposed separately in FY2024 Budget Amendment #2. If both the proposed term sheet and budget amendment are approved, the RDA and USA Climbing will enter into an exclusive negotiation agreement to memorialize these commitments until all conditions are met and final ground lease and development agreements can be executed. BACKGROUND: USA Climbing is the national governing body of the sport of competition climbing in the United States and as a 501(c)3 nonprofit, promotes the disciplines of bouldering, lead, and speed climbing, as well as the collegiate and paraclimbing series. The organization is sanctioned by the International Federation for Sport Climbing, the International Olympic Committee, and the United States Olympic & Paralympic Committee. Sport Climbing became an official Olympic event at the 2020 Tokyo games and multiple American athletes have already qualified for the 2024 Paris Summer Olympics. SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 WWW.SLC.GOV · WWW.SLCRDA.COM TEL 801-535-7240 · FAX 801-535-7245 USA Climbing relocated to Salt Lake City from Boulder, Colorado, in 2018, and quickly announced their intentions to establish a National Training Center where athletes could receive specialized training to compete at the highest levels internationally. Since that time, the organization has been operating and training athletes in Granary District buildings that are slated for eventual redevelopment, while also searching for a site where they can develop a permanent headquarters and training facility. The Utah State Legislature appropriated $15 million to USA Climbing during the 2023 session to support the effort. In the Spring of 2023, the RDA was asked to explore potential opportunities to locate the new facility on RDA-owned property, and USA Climbing expressed interest in the Station Center area. As the Station Center Vision & Implementation Plan was actively in progress for most of this year, negotiations have happened concurrently with the visioning and planning of the district. USA Climbing has been a great partner, engaging in productive and transparent negotiations while being an active participant in Station Center workshops and outreach events. RDA Staff welcomes the opportunity to continue to work with USA Climbing to make the vision for the Station Center project a reality, with the headquarters and national training facility serving as the first anchor tenant and catalytic flag in the ground. Please refer to Attachment C, Station Center Site Plan. PROJECT DESCRIPTION: The project involves the construction of a national headquarters and training facility for USA Climbing on the southwest corner of 500 West and 300 South and is anticipated to include three primary components: 1. New construction of a primary structure that is 65-75 feet tall with a roughly 45,000 square foot (sf) footprint (exact specifications subject to further community engagement). This structure will include bouldering, lead, and speed climbing walls, as well as other support uses that are typical of a climbing facility. Most areas will be accessible by the community; some spaces will be reserved for the U.S. National Team’s exclusive use. 2. Rehabilitation of the historic Salt Lake Mattress Company building, anticipated to include publicly facing and accessible food, beverage, and retail uses, as well as private spaces for USA Climbing offices. 3. New construction of an outdoor plaza that will be utilized for USA Climbing-hosted competitions as well as other non-USA Climbing events (will be designed to accommodate 3,500 – 5,000 spectators). Adjacent building facades will include climbing walls to be used for regular training and competition events, with secure access controls that allow the public to view the climbing but prevent general access from the plaza. Design work is preliminary and if the project moves forward, USA Climbing will work with the Planning and Building Services Divisions to achieve a design that meets applicable zoning and building code requirements, in addition to receiving administrative design approval from the RDA. USA Climbing’s goal is to break ground on the facility in Fall 2024 and be operational in time to submit a bid to host the 2027 Climbing World Championships, a qualifying event for the 2028 Los Angeles Olympic Games. Please refer to Attachment E, Preliminary Project Renderings. COMMUNITY AND ECONOMIC IMPACT: In addition to the community benefits described in the “Summary of Key Terms” section below, which are captured in the proposed term sheet, the project will bring many additional community and economic benefits to the RDA’s Station Center redevelopment project, Salt Lake City, and the State of Utah: • • Supported by a $15 million investment from the State of Utah (already appropriated). Lends Station Center an identity and focus that aligns with the natural/cultural context of Salt Lake City and Utah. •Will regularly attract visitors to the district during off-peak hours and activate the neighborhood with ~6-10 large multi-day events per year. • • Provides near-term development activity at Station Center while developers for other sites are solicited. Will be a catalytic activation to generate excitement for the Station Center project, help attract developers/tenants, and spur adjacent private landowners to make plans for their properties. USA Climbing will hire 50-60 new employees.• •USA Climbing has an estimated event-related economic impact of ~$300 million over a 10-year period. •USA Climbing draws many national and international visitors and brings awareness to Salt Lake City as a world-class climbing destination. SUMMARY OF KEY TERMS: Lease Area •To include building footprints and setback areas between buildings and adjacent right-of-ways (approximately 1.12 acres) • • Outdoor plaza area to be leased at no cost (approximately 0.6 acres) These areas are highlighted in Attachment D. Lease Term • • 99 years, to commence upon execution of a ground lease agreement In last five (5) years of term - option to extend for an additional 50 years at FMV, unless otherwise negotiated and approved Lease Rate • • Based on fee simple FMV of lease area multiplied by 5% Annual lease rate to be escalated every 5 years based on previous 5 years’ average Consumer Price Index (CPI), with a minimum escalation of 2% and a maximum escalation of 5% (hereafter referred to as “escalated annual lease rate”). Lease Abatement The escalated annual lease rate shall be reduced according to the following schedule:• o o o o o Years 1-6: USA Climbing will not make any lease payments during the first six years to account for construction and stabilization. Year 7: USA Climbing shall make a payment that is equal to 45% of the escalated annual lease rate. Year 8: USA Climbing shall make a payment that is equal to 50% of the escalated annual lease rate. Year 9: USA Climbing shall make a payment that is equal to 55% of the escalated annual lease rate. Years 10-99: USA Climbing shall make annual payments that are equal to 60% of the escalated annual lease rate. Common Area Maintenance (CAM) Fees •CAM fees will be collected from Station Center lessees to contribute to the cost of maintaining public spaces in the neighborhood, including plazas, park strips, public art, alleyways, parking facilities, etc. • • Annual CAM fee for USA Climbing will be $1.50/sf of the gross floor area of the project, to be assessed upon receipt of an occupancy permit. The annual CAM fee shall be escalated using the same escalation method as the annual lease rate and charged at the same reduced schedule used for the lease abatement. Community Benefits •The proposed lease abatement is tied to USA Climbing providing certain community benefits and as such, if they are not provided, the lease rate will increase. A mechanism for this increase will be specified in a future ground lease agreement. •Some community benefits are physical improvements that will be memorialized in construction drawings, development agreements, cost-sharing agreements, and/or use agreements. These include: o o Activation of the historic Salt Lake Mattress Company Building as described above. Design, construction, and management of the outdoor plaza, which will primarily be used for USA Climbing-hosted events and made available for use by other entities for additional events. USA Climbing shall allow all reasonable requests by outside parties to utilize the plaza for special events and shall not charge the City or RDA for use of the space. •Other community benefits are programmatic and ongoing in nature and shall be memorialized in a 5-year community benefits plan that is provided by USA Climbing to RDA staff for their approval, and which may be amended from time to time with prior staff approval. RDA staff will present USA Climbing’s informational progress report to the RDA Board of Directors at the conclusion of each 5-year plan period. At this time, the following benefits have been noted in the Term Sheet: o Equitable and inclusive programming that may include offerings such as youth programming, workforce development opportunities, and access to the facility for community members who may not otherwise have access to the sport of climbing, based on income or other key measures. o Transportation demand management strategies to reduce auto dependency of employees and visitors and encourage the use of alternative modes of transportation. This may include discounted day passes for those that utilize public transit, and inclusion of shower, locker, and bicycle storage facilities. RDA Participation and Other Obligations Parking – The RDA is exploring the feasibility of financing and developing a shared parking structure on the south block of the neighborhood. •If developed, the RDA will lease parking privileges to interested property owners and tenants, including USA Climbing. •If the structure is not completed by the time the USA Climbing facilities are operational, the RDA shall lease adjacent property to USA Climbing at no cost, to be used as a temporary surface parking lot. The planned location of the parking structure and temporary lot (if needed) is shown in Attachment F. Outdoor Plaza – Prior to construction, USA Climbing and the RDA will determine a cost-sharing formula and the RDA will reimburse USA Climbing up to $1 million for agreed-upon plaza construction costs. Adaptive Reuse of Salt Lake Mattress Company Building – The RDA will reimburse USA Climbing up to $6 million for design and construction costs associated with seismic upgrades and building improvements needed to meet minimum building code requirements. After the 2020 earthquake, the RDA made a significant investment in the stabilization of this historic warehouse with the intent to rehabilitate and incorporate it into the Station Center development. Demolition of Existing Structures on Site – The RDA will reimburse USA Climbing up to $120,000 for costs related to the demolition of existing structures on site. Environmental Remediation – The RDA will reimburse USA Climbing for the cost differential between disposing of clean soils and contaminated soils that may be encountered on site. It is estimated that these costs will not exceed $200,000. Adjacent Public Improvements, Accessible Parking Spaces – USA Climbing will benefit from the planned Station Center public improvements, to include upgraded utilities, the reconstruction of 300 South, construction of new mid-block street connections and public plazas. It is the RDA’s intent to coordinate with USA Climbing, the design consultants, and pertinent City divisions when developing the public improvement plans and construction phasing strategy. The RDA will identify opportunities to incorporate accessible on-street parking spaces near the project to serve the organization’s paraclimbing athletes. Relocation of State Warehouse Users & Art Collection (not in term sheet) – In late 2022, the RDA purchased multiple State-owned parcels that will make up the future USA Climbing site. As part of that transaction, the RDA agreed to allow the State’s Department of Cultural & Community Engagement (C&CE) to continue using the existing warehouse structure, parking lot, and small storage shed on site, as their future permanent home is currently under construction near the State Capitol building. A handful of C&CE employees work on site and a historic art collection is housed there. The lease agreement indicates that this arrangement shall remain in place until 1) C&CE can move into the new facility or 2) through the end of 2028, whichever comes first. If the RDA desires to redevelop the property before either of the above milestones are reached, the RDA must work with C&CE to relocate the employees and art to another site that can accommodate their needs. The RDA and C&CE leadership will work together to identify potential locations where the art collection and office can be temporarily located until the new C&CE facilities at the State Capitol are completed, anticipated in Fall 2026. ASSOCIATED BUDGET REQUESTS: The table below summarizes RDA budget impacts associated with the USA Climbing project and attached term sheet. The planned Station Center parking structure and relocation of the State warehouse users and art collection are listed separately as outside costs because the parking structure will not solely benefit USA Climbing, and the State relocation would be a necessary RDA obligation for any redevelopment project that occurs before 2027. FINANCIAL USES IMPLEMENTATION RDA CONTRIBUTION Outdoor Plaza • • USA Climbing will fund design work. USA Climbing will fund and implement construction, with RDA contribution. USA Climbing will be responsible for management. RDA will be responsible for maintenance, utilizing USA Climbing CAM Fees. USA Climbing will fund and implement construction, with RDA contribution. $1 million • • •Adaptive Reuse of SL Mattress Co. Building $6 million $120,000Demolition•USA Climbing will fund and implement demolition, with RDA contribution. Environmental Remediation •USA Climbing will fund and implement remediation work, with RDA contribution. ~$200,000 (cost estimate) TOTAL DIRECT CONTRIBUTION TO USA CLIMBING PROJECT ~$7,320,000 Parking Structure • • • RDA exploring feasibility of ~$31 million financing/developing structure. USA Climbing will lease future parking allocation from RDA. RDA to work with State of Utah to find new temporary location until new permanent facility at State Capitol is completed (currently under construction). Relocation of State Warehouse Users & Art Collection ~$523,000 (cost estimate) TOTAL OUTSIDE COSTS NEXT STEPS: ~$31,523,000 It is requested that the Board review the proposed term sheet and consider approving via attached resolution. In addition, budget allocations necessary to support commitments made in the term sheet have been proposed in FY2024 Budget Amendment #2. If both the proposed term sheet and budget amendments are approved, next steps will include the following: •The RDA and USA Climbing will enter into an exclusive negotiation agreement to memorialize commitments by both parties until final ground lease and development agreements can be executed. • • • USA Climbing will refine the project design and launch a capital funding campaign to support construction costs, with the goal of securing permits and breaking ground in Fall 2024. RDA staff will work with USA Climbing to identify and incorporate short-term infrastructure needs into the larger Station Center public improvements planning, funding, and design strategy. When all conditions have been met (listed in Attachment A, Proposed Term Sheet), the RDA and USA Climbing will finalize and execute ground lease and development agreements. PREVIOUS BOARD ACTION: •On September 15, 2020, the RDA Board allocated $865,000 for the stabilization of the Salt Lake Mattress Company Building. •On November 10, 2022, the RDA Board adopted a resolution approving FY2023 Budget Amendment #2, which provided $500,000 for the RDA to contract with the consultant team to develop the Station Center Vision & Implementation Plan. ATTACHMENTS: A. Proposed Term Sheet B. Proposed Resolution C. Station Center Site Plan D. Proposed Lease Area E. Preliminary Project Renderings F. Proposed Parking Locations ATTACHMENT A USA CLIMBING AT STATION CENTER Draft Development and Ground Lease Agreement Term Sheet Purpose The purpose of ground leasing Redevelopment Agency property at Station Center to USA Climbing is to help facilitate the construction of their national headquarters and training facility as well as establish an exciting and catalytic anchor tenant for the development of Station Center. Parties The Redevelopment Agency of Salt Lake City (RDA) and USA Climbing. USA Climbing is the national governing body of the sport of competition climbing in the United States. USA Climbing is a non-profit entity that promotes the disciplines of bouldering, lead and speed climbing, as well as collegiate and paraclimbing series. Property to be Leased A portion of property near the southwest corner of 500 West 300 South, Salt Lake City, Utah 84101. The lease area shall encompass building footprints, setback areas between buildings and adjacent rights-of- way, and the outdoor plaza. An approximate depiction of the real property to be leased is shown in Exhibit A of this document and will be referred throughout as “Lease Area.” Project Description The project involves the construction of a headquarters and training facility for USA Climbing, which will include: 1. New construction of a primary structure that is about 65-75 feet tall with a roughly 45,000 sf footprint (exact specifications subject to further stakeholder engagement). This structure will include bouldering, lead, and speed climbing walls, as well as other support uses that are typical of a climbing facility. Most areas of the facility will be accessible by the community; some spaces will be reserved for the U.S. National Team’s exclusive use. The exterior building facades will include climbing walls. 2. Rehabilitation of the historic Salt Lake Mattress Company building, anticipated to include publicly facing and accessible food, beverage, and retail uses, as well as private spaces for USA Climbing offices. 3. New construction of an outdoor plaza that will be utilized for USA Climbing-hosted competitions as well as other non-USA Climbing events (will be designed to accommodate 3,500 – 5,000 spectators). Lease Terms 1. Term: 99 years, to commence upon execution of a ground lease agreement. Execution of a ground lease agreement is contingent on both parties satisfying the conditions outlined in the last section of this document. Ownership of the improvements constructed on the Lease Area will revert to RDA ownership at the end of the term. In the last five years of the term, USA Climbing may exercise an option to renew the lease for an additional 50 years. The lease rate for the additional lease period will be fair market value, unless otherwise negotiated and approved by the administration and legislative body. 1 2. Lease Rate: As set forth in more detail below, the lease rate will be based on a portion of the fair market value of the Lease Area and will be increased incrementally over time. The outdoor plaza space shall not be included in the calculation of the lease rate. Stated another way, the outdoor plaza shall be leased at no cost. a. The annual lease rate will be the fee simple, fair market value of the Lease Area (not including the outdoor plaza space, as determined by an RDA-commissioned appraisal) multiplied by 5% (Annual Lease Rate). If a ground lease agreement is not executed within 18 months of the approval of this term sheet by the RDA Board of Directors, the RDA shall reserve the right to commission an updated appraisal on which the Annual Lease Rate will be based. b. The Annual Lease Rate will be increased, or escalated, every five years. This escalator is based on the average consumer price index (CPI) rate over the previous five years, with a minimum escalation rate of 2% and a maximum escalation rate of 5%. The first escalation will take place at the start of the 6th year of the lease and be based on the average CPI rate calculated for the first 1-5 years of the lease. The Annual Lease Rate, inclusive of the escalation, shall be referred to as the “Escalated Annual Lease Rate.” c. The Escalated Annual Lease Rate shall be reduced according to the following schedule: i. Years 1-6: USA Climbing will not make any lease payments during the first six years to account for construction and stabilization. ii. Year 7: USA Climbing shall make a payment that is equal to 45% of the Escalated Annual Lease Rate. iii. Year 8: USA Climbing shall make a payment that is equal to 50% of the Escalated Annual Lease Rate. iv. Year 9: USA Climbing shall make a payment that is equal to 55% of the Escalated Annual Lease Rate. v. Years 10-99: USA Climbing shall make annual payments that are equal to 60% of the Escalated Annual Lease Rate. 3. Common Area Maintenance (CAM) Fees: CAM fees will be collected from Station Center lessees to contribute to the cost of maintaining public spaces in the neighborhood. The annual CAM fee for USA Climbing will be $1.50 per square foot of the gross floor area of their project, inclusive of the new structure and the Salt Lake Mattress Company Building (Annual CAM Fee). Gross floor area shall be interpreted to mean the sum in square feet of all floors of the building, measured from the exterior face of the exterior walls. The Annual CAM Fee will be assessed upon USA Climbing receiving its occupancy permit, be charged at the same reduced rate as the schedule provided in 2.c.i-v, and escalated in the same manner as outlined in 2.b. 4. Community Benefits: During the term of the lease, USA Climbing is committed to providing the community benefits described below. The lease rate outlined above is tied to USA Climbing providing these benefits, and as such, should USA Climbing not provide these benefits, the lease rate will increase as specified in more detail in the agreements. a. Equitable and inclusive programming that may include offerings such as youth programming, workforce development opportunities, and access to the facility for community members who may not otherwise have access to the sport of climbing, based on income or other key measures. b. Transportation demand management strategies to reduce auto dependency of employees and visitors and encourage the use of alternative modes of transportation. This may 2 include discounted day passes for those that utilize public transit, and inclusion of shower, locker, and bicycle storage facilities. c. Activation of the historic Salt Lake Mattress Company Building, anticipated to include – at ground level - food and beverage and retail components that are open and clearly accessible by the general public during regular operating hours. The second floor will house private USA Climbing offices and the basement may be utilized for storage. d. Design, construction, and management of the outdoor plaza, which will primarily be used for USA Climbing-hosted events and made available for use by other entities for additional events. i. Design – USA Climbing shall work collaboratively with the RDA to develop the design for the outdoor plaza, which shall be incorporated into the construction drawings for the larger project at USA Climbing’s sole expense. ii. Construction – The plaza shall be constructed by USA Climbing and built at the same time as the rest of the project. Prior to construction, USA Climbing and the RDA will determine a cost-sharing formula and the RDA will reimburse USA Climbing for agreed-upon plaza construction costs, in an amount not to exceed $1 million, unless a greater amount is approved by the RDA Board of Directors. iii. Management – USA Climbing will be responsible for managing the use of the plaza, for both USA Climbing and non-USA Climbing-hosted events. It is anticipated that USA Climbing will host six (6) multi-day competition events per year, in addition to smaller events associated with their programming. USA Climbing events may take precedence over other plaza uses but when there is no scheduling conflict, USA Climbing shall allow all reasonable requests by outside parties to utilize the plaza for special events. USA Climbing shall not charge the City or RDA for the use of the plaza. Other Station Center lessees that contribute to the CAM fund will be charged a reduced rental rate for the use of the plaza. iv. Maintenance – USA Climbing shall contribute to a CAM fund that will be utilized to fund maintenance of the outdoor plaza, as well as other publicly owned parks, plazas, park strips, public art, alleyways, parking facilities, etc., within the neighborhood. CAM fees will also be used to fund enhanced street and sidewalk maintenance beyond the baseline City maintenance level. The RDA or future neighborhood governance entity shall be responsible for implementing maintenance activities funded by the CAM assessment. e. Tracking and Reporting. Some of the community benefits described above are physical improvements that will be memorialized in construction drawings, development agreements, cost-sharing agreements, and/or use agreements. Others are programmatic and ongoing in nature and shall be memorialized in a 5-year community benefits plan that is provided by USA Climbing to RDA Staff for their approval, and which may be amended from time to time with prior Staff approval. RDA Staff will present USA Climbing’s informational progress report to the RDA Board of Directors at the conclusion of each 5-year plan period. 5. Additional Terms: a. Parking: The RDA is exploring the feasibility of financing and developing a shared parking structure on the south block of the neighborhood. i. If developed, the RDA will lease parking privileges to interested property owners and tenants, including USA Climbing, based on operational needs, estimated demand, and parking management best practices. 3 ii. If the parking structure is not completed by the time the USA Climbing project is operational, the RDA shall lease adjacent RDA-owned property to USA Climbing at no cost for a temporary surface parking lot. USA Climbing shall be responsible for funding and constructing all site improvements necessary for the surface parking lot. The planned location of the parking structure and temporary surface parking lot (if needed) is shown in Exhibit B. iii. Should the parties need surface parking for an extended period, the parties will work together to negotiate a solution to accommodate USA Climbing’s parking needs within one block of their facility, with the goal of ultimately eliminating the surface parking lot. b. Salt Lake Mattress Building: As part of the construction of the project, USA Climbing will take on the responsibility of paying the up-front costs of rehabilitating the historic Salt Lake Mattress Building. Subject to future Board approval, the RDA will reimburse USA Climbing up to $6 million for design and construction costs associated with seismic upgrades and building improvements needed to meet minimum building code requirements, unless a greater amount is approved by the RDA Board of Directors. c. Demolition of Existing Buildings: The Lease Area currently contains existing structures. USA Climbing will take on the responsibility of paying the up-front costs of demolition. Subject to future Board approval, the RDA will reimburse USA Climbing up to $120,000 for these costs, unless a greater amount is approved by the RDA Board of Directors. d. Contaminated Soil Disposal: It is possible that USA Climbing will encounter soils contaminated with semi-volatile organic compounds (SVOCs) during excavation for their building. Potentially contaminated soils should be screened and stockpiled during excavation and disposed of in accordance with applicable laws. USA Climbing will take on the responsibility of paying the up-front costs of disposing of contaminated soils, and, subject to future Board approval, the RDA will reimburse USA Climbing for the cost differential associated with transporting and disposing of contaminated soil versus non- contaminated soil. It is anticipated that the cost differential will not exceed $200,000. e. RDA to Develop Certain Adjacent Public Improvements: As part of the planned redevelopment of the neighborhood, RDA will design and install utilities with increased capacity to support increased density, reconstruct 300 South between 500 West and 600 West, and extend the City grid by building out new midblock street connections, as illustrated in Exhibit C. It is the RDA’s intent to coordinate with USA Climbing, the design consultants, and pertinent City divisions when developing plans for the public improvements adjacent to USA Climbing’s lease area. i. Accessible Parking Spaces – The RDA recognizes that USA Climbing works with paraclimbing athletes who may require special accommodation. As such, the RDA commits to working with USA Climbing to identify opportunities to incorporate accessible on-street parking spaces near the project, along the planned Market Street alignment. Conditions to Execution of Lease and Development Agreements • • USA Climbing to receive approval of these development agreement and lease terms by the RDA Board of Directors. Compliance with all applicable laws and regulations, including any applicable RDA policies such as the Sustainable Development and Public Art policies. If any waivers of RDA policies are requested, such waivers must be considered by the RDA Board of Directors. 4 • • The Project shall align with the RDA’s administrative design review process, which shall require RDA’s review and approval to ensure the design and development plans are consistent with the term sheet. USA Climbing to receive all City approvals required to construct the Project, including obtaining any necessary zoning approvals from the City’s Planning Division and a will-issue demolition and building permit from the City’s Building Services Division. • • USA Climbing to provide evidence of insurance in such amounts and coverage as deemed necessary by the RDA. Parties agree on the form of a Development Agreement, which shall include, but is not limited to: o USA Climbing’s commitment to construct the Project consistent with the RDA Board- approved term sheet, all City approvals, and a schedule of development. An RDA-approved community benefit plan/strategy. RDA to approve USA Climbing’s financial sources and uses and firm financial commitments for sources of funding and donations consistent with the schedule of development. o o o o USA Climbing’s commitment to comply with all applicable laws and regulations. An obligation for USA Climbing to provide the RDA quarterly progress reports on the construction of the Project. o Remedies should USA Climbing not comply with the terms of the Development Agreement may include, but not be limited to, filing a breach of contract claim, terminating the ground lease, damages, injunctive relief, or any other remedies available at law. •Parties to agree on the form of a Lease Agreement, which shall include, but is not limited to: o o USA Climbing’s obligation to pay the applicable Lease Rate and CAM fees. USA Climbing’s commitment to maintain the Project, during the term, consistent with the RDA-Board approved term sheet. o USA Climbing shall not be permitted to assign the lease to an unaffiliated entity without the RDA’s consent, which may be withheld at the RDA’s sole discretion. Submission and approval of the community benefits plan. An obligation for USA Climbing to provide the RDA annual progress reports on the performance of the public benefits. o o o o Continual operation of USA Climbing’s headquarters, outdoor plaza, and activation of the Salt Lake Mattress Building consistent with the term sheet and the community benefits plan. Remedies should USA Climbing not comply with the terms of the Lease Agreement may include, but not be limited to, filing a breach of contract claim, terminating the ground lease, increasing the Lease Rate, damages, injunctive relief, or any other remedies available at law. •Receive approval from the RDA and City Attorney’s Office on all matters pertaining to the legality, sufficiency, and form and substance of all other documents that are deemed reasonably necessary for the execution of the transaction. 5 Exhibit A: Lease Area 6 Exhibit B: Proposed Future Parking Areas Temporary Surface Parking Lot Shared Parking Structure 7 Exhibit C: Planned Neighborhood Midblock Street Connections 8 ATTACHMENT B REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Authorizing Lease Rate and Terms for USA Climbing Headquarters and Training Facility at Approximately 500 West 300 South RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AUTHORIZING LEASE RATE AND TERMS FOR USA CLIMBING HEADQUARTERS AND TRAINING FACILITY AT RDA-OWNED PROPERTY AT APPROXIMATELY 500 WEST 300 SOUTH IN THE DEPOT DISTRICT PROJECT AREA. WHEREAS, the Redevelopment Agency of Salt Lake City (RDA) desires to ground lease real property located at approximately 500 West and 300 South in Salt Lake City (Property) for the purpose of redeveloping it in a manner consistent with RDA’s Depot District Project Area Plan. WHEREAS, USA Climbing (USAC), a non-profit and national governing body of the sport of competition climbing in the United States, intends to ground lease the Property from the RDA and construct their national headquarters and training facility (Project) at the Property. The Project will also include certain public benefits including equitable and inclusive programming, transportation demand management strategies, use and activation of the historic Salt Lake Mattress Company building, and construction of an outdoor plaza to be utilized for USAC-hosted competitions as well as other non-USAC community events. Certain details of the Project, ground lease terms, and public benefits are more particularly described on the term sheet attached as Exhibit A (Term Sheet). WHEREAS, the RDA is willing to provide USAC a below-market ground lease of the Property to facilitate the development of the Project in exchange for USAC’s commitment to develop and maintain the public benefits in the Project as detailed on the Term Sheet. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City that the Board approves the terms outlined on the Term Sheet for the Project and that the Board authorizes the RDA administration to negotiate the final agreements consistent with the Term Sheet or more beneficial to the RDA, and execute the ground lease and any other relevant documents consistent with this Resolution and incorporating such other terms and agreements as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day of , 202 . _________________________________ , Chair Approved as to form: Salt Lake City Attorney’s Office Allison Parks The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder EXHIBIT A TERM SHEET ATTACHMENT C STATION CENTER SITE PLAN ATTACHMENT D PROPOSED LEASE AREA ATTACHMENT E PRELIMINARY PROJECT RENDERINGS ATTACHMENT F PROPOSED PARKING LOCATIONS City Creek Daylighting at Folsom Trail SLC RDA Board of Directors Salt Lake City, UT Context Project Site City Creek Context 4 4 2 3 1 0 0 0 W E S T FOLSOM AVE. 11 1 66 2 5 12 5 16 16 17 3 6 5 6 5 5 16 5 65 6 5 6 16 16 16 5 6 16 11 10 16 5 6 16 5 12 6 5 16 A3 LA40215 1515 LANDSCAPING - 1000 WEST NODE 21 21 EXISTING CONCRETE SIDEWALK, SEE CIVIL DRAWINGS PROPOSED CONCRETE SIDEWALK, SEE CIVIL DRAWINGS CONCRETE TRAIL - SEE CIVIL DRAWINGS DETECTABLE WARNING STRIP - SEE CIVIL DRAWINGS CRUSHED STONE PAVING - SEE DETAIL B4/LA401 RAILROAD TIE ACCENT - SEE DETAIL B4/LA402 BENCH - TYPE A - SEE DETAIL A1/LA401 BENCH - TYPE B - SEE DETAIL A3/LA401 RAILROAD TIE PAVING - SEE DETAIL B2/LA401 TRASH RECEPTACLE - SEE DETAIL A4/LA401 1 2 3 4 5 6 7 8 9 10 OVERHEAD PEDESTRIAN LIGHT (PROVIDE 1` 6" MIN. FROM FACE OF CURB TO OVERHEAD LIGHT) - SEE ELECTRICAL DRAWINGS BOLLARD LIGHTS - SEE ELECTRICAL DRAWINGS EXISTING STREET LIGHTS EXISTING LIGHTS UNDER FREEWAY UNDERPASS LANDSCAPE BOULDERS - SEE DETAIL B1/LA401 METAL EDGING - SEE DETAIL B3/LA401 THERMOPLASTIC CROSSING RELOCATED EXISTING BENCH EXISTING CITY CREEK BOX CULVERT 11 12 13 14 15 16 17 18 21 OVERHEAD PEDESTRIAN LIGHTS EXISTING STREET LIGHTS PATHWAY BOLLARD LIGHTS MATCHLINE EXISTING LIGHTS UNDER FREEWAY UNDERPASS BOX CULVERT RAIL ROAD TIE PAVING PHASE 1 NODES CRUSHED STONE THERMOPLASTIC CROSSING CONTRACTOR TO MEET ALL MANUFACTURER REQUIREMENTS AND COORDINATE COLOR AND PATTERNING WITH SALT LAKE CITY APPROXIMATE AREA OF CONTAMINATED SOILS REV DATE DESCRIPTION Designed By Drawn By Checked By Approved By CADD Filename Sheet No. UTA Contract No. DrawingSALT LAKE CITY SLC_MUP_1 FOLSOM TRAIL 18-23997P TC TC KR, MP TS 1. VERIFY LOCATIONS OF PERTINENT SITE IMPROVEMENTS INSTALLED UNDER OTHER SECTIONS. IF ANY PART OF THIS PLAN CANNOT BE FOLLOWED DUE TO SITE CONDITIONS, CONTACT OWNER'S REPRESENTATIVE IMMEDIATELY PRIOR TO COMMENCING WORK. 2. COORDINATE WITH CIVIL AND LIGHTING PLANS. LA101 Site Materials Plan.dwg 90 0 W E S T 2 7 12 3 3 2 2 1 1 1 1 15 6 9 8 10 6 7 36 12 5 5 15 11 5 9 16 11 16 9 16 16 16 17 5 16 6 6 5 12 6516 5 6 16 5 6 16 5 4 44 6 5 16 6 16 2 5 6 6 16 5 6 7 2 5 ' M I N . 2 5 ' M I N . LANDSCAPING - 900 WEST NODE LANDSCAPING - 900 WEST NODE 21 21 EXISTING CONCRETE SIDEWALK, SEE CIVIL DRAWINGS PROPOSED CONCRETE SIDEWALK, SEE CIVIL DRAWINGS CONCRETE TRAIL - SEE CIVIL DRAWINGS DETECTABLE WARNING STRIP - SEE CIVIL DRAWINGS CRUSHED STONE PAVING - SEE DETAIL B4/LA401 RAILROAD TIE ACCENT - SEE DETAIL B4/LA402 BENCH - TYPE A - SEE DETAIL A1/LA401 BENCH - TYPE B - SEE DETAIL A3/LA401 RAILROAD TIE PAVING - SEE DETAIL B2/LA401 TRASH RECEPTACLE - SEE DETAIL A4/LA401 1 2 3 4 5 6 7 8 9 10 OVERHEAD PEDESTRIAN LIGHT (PROVIDE 1` 6" MIN. FROM FACE OF CURB TO OVERHEAD LIGHT) - SEE ELECTRICAL DRAWINGS BOLLARD LIGHTS - SEE ELECTRICAL DRAWINGS EXISTING STREET LIGHTS EXISTING LIGHTS UNDER FREEWAY UNDERPASS LANDSCAPE BOULDERS - SEE DETAIL B1/LA401 METAL EDGING - SEE DETAIL B3/LA401 THERMOPLASTIC CROSSING RELOCATED EXISTING BENCH EXISTING CITY CREEK BOX CULVERT 11 12 13 14 15 16 17 18 21 OVERHEAD PEDESTRIAN LIGHTS EXISTING STREET LIGHTS PATHWAY BOLLARD LIGHTS MATCHLINE EXISTING LIGHTS UNDER FREEWAY UNDERPASS BOX CULVERT RAIL ROAD TIE PAVING PHASE 1 NODES CRUSHED STONE THERMOPLASTIC CROSSING CONTRACTOR TO MEET ALL MANUFACTURER REQUIREMENTS AND COORDINATE COLOR AND PATTERNING WITH SALT LAKE CITY APPROXIMATE AREA OF CONTAMINATED SOILS REV DATE DESCRIPTION Designed By Drawn By Checked By Approved By CADD Filename Sheet No. UTA Contract No. DrawingSALT LAKE CITY SLC_MUP_1 FOLSOM TRAIL 18-23997P TC TC KR, MP TS 1. VERIFY LOCATIONS OF PERTINENT SITE IMPROVEMENTS INSTALLED UNDER OTHER SECTIONS. IF ANY PART OF THIS PLAN CANNOT BE FOLLOWED DUE TO SITE CONDITIONS, CONTACT OWNER'S REPRESENTATIVE IMMEDIATELY PRIOR TO COMMENCING WORK. 2. COORDINATE WITH CIVIL AND LIGHTING PLANS. LA101 Site Materials Plan.dwg JE R E M Y S T . 12 114 3 6 6 15 6 6 12 11 5 15 12 6 16 16 3 16 5 5 6 17 16 5 16 5 6 16 5 16 6 151665 16 5 6 16 6 5 16 5 16 6 5 6 5 16 16 15 15 2 5 ' M I N . LANDSCAPING - JEREMY ST. LANDSCAPING - JEREMY ST. 2121 EXISTING CONCRETE SIDEWALK, SEE CIVIL DRAWINGS PROPOSED CONCRETE SIDEWALK, SEE CIVIL DRAWINGS CONCRETE TRAIL - SEE CIVIL DRAWINGS DETECTABLE WARNING STRIP - SEE CIVIL DRAWINGS CRUSHED STONE PAVING - SEE DETAIL B4/LA401 RAILROAD TIE ACCENT - SEE DETAIL B4/LA402 BENCH - TYPE A - SEE DETAIL A1/LA401 BENCH - TYPE B - SEE DETAIL A3/LA401 RAILROAD TIE PAVING - SEE DETAIL B2/LA401 TRASH RECEPTACLE - SEE DETAIL A4/LA401 1 2 3 4 5 6 7 8 9 10 OVERHEAD PEDESTRIAN LIGHT (PROVIDE 1` 6" MIN. FROM FACE OF CURB TO OVERHEAD LIGHT) - SEE ELECTRICAL DRAWINGS BOLLARD LIGHTS - SEE ELECTRICAL DRAWINGS EXISTING STREET LIGHTS EXISTING LIGHTS UNDER FREEWAY UNDERPASS LANDSCAPE BOULDERS - SEE DETAIL B1/LA401 METAL EDGING - SEE DETAIL B3/LA401 THERMOPLASTIC CROSSING RELOCATED EXISTING BENCH EXISTING CITY CREEK BOX CULVERT 11 12 13 14 15 16 17 18 21 OVERHEAD PEDESTRIAN LIGHTS EXISTING STREET LIGHTS PATHWAY BOLLARD LIGHTS MATCHLINE EXISTING LIGHTS UNDER FREEWAY UNDERPASS BOX CULVERT RAIL ROAD TIE PAVING PHASE 1 NODES CRUSHED STONE THERMOPLASTIC CROSSING CONTRACTOR TO MEET ALL MANUFACTURER REQUIREMENTS AND COORDINATE COLOR AND PATTERNING WITH SALT LAKE CITY APPROXIMATE AREA OF CONTAMINATED SOILS REV DATE DESCRIPTION Designed By Drawn By Checked By Approved By CADD Filename Sheet No. UTA Contract No. DrawingSALT LAKE CITY SLC_MUP_1 FOLSOM TRAIL 18-23997P TC TC KR, MP TS 1. VERIFY LOCATIONS OF PERTINENT SITE IMPROVEMENTS INSTALLED UNDER OTHER SECTIONS. IF ANY PART OF THIS PLAN CANNOT BE FOLLOWED DUE TO SITE CONDITIONS, CONTACT OWNER'S REPRESENTATIVE IMMEDIATELY PRIOR TO COMMENCING WORK. 2. COORDINATE WITH CIVIL AND LIGHTING PLANS. LA101 Site Materials Plan.dwg 80 0 W E S T 2 4 12 3 12 10 1 1 6 7 8 9 4 7 6 12 6 12 6 5 3 15 2 11 5 6 2 16 16 1717 5 16 6 6 5 16 6 16 5 6 5 5 6 16 16 16 6 16 9 5 11 16 5 16 5 16 6 5 5 5 16 6 5 16 5 6 5 21 21 LANDSCAPING - 800 WEST LANDSCAPING - 800 WEST EXISTING CONCRETE SIDEWALK, SEE CIVIL DRAWINGS PROPOSED CONCRETE SIDEWALK, SEE CIVIL DRAWINGS CONCRETE TRAIL - SEE CIVIL DRAWINGS DETECTABLE WARNING STRIP - SEE CIVIL DRAWINGS CRUSHED STONE PAVING - SEE DETAIL B4/LA401 RAILROAD TIE ACCENT - SEE DETAIL B4/LA402 BENCH - TYPE A - SEE DETAIL A1/LA401 BENCH - TYPE B - SEE DETAIL A3/LA401 RAILROAD TIE PAVING - SEE DETAIL B2/LA401 TRASH RECEPTACLE - SEE DETAIL A4/LA401 1 2 3 4 5 6 7 8 9 10 OVERHEAD PEDESTRIAN LIGHT (PROVIDE 1` 6" MIN. FROM FACE OF CURB TO OVERHEAD LIGHT) - SEE ELECTRICAL DRAWINGS BOLLARD LIGHTS - SEE ELECTRICAL DRAWINGS EXISTING STREET LIGHTS EXISTING LIGHTS UNDER FREEWAY UNDERPASS LANDSCAPE BOULDERS - SEE DETAIL B1/LA401 METAL EDGING - SEE DETAIL B3/LA401 THERMOPLASTIC CROSSING RELOCATED EXISTING BENCH EXISTING CITY CREEK BOX CULVERT 11 12 13 14 15 16 17 18 21 OVERHEAD PEDESTRIAN LIGHTS EXISTING STREET LIGHTS PATHWAY BOLLARD LIGHTS MATCHLINE EXISTING LIGHTS UNDER FREEWAY UNDERPASS BOX CULVERT RAIL ROAD TIE PAVING PHASE 1 NODES CRUSHED STONE THERMOPLASTIC CROSSING CONTRACTOR TO MEET ALL MANUFACTURER REQUIREMENTS AND COORDINATE COLOR AND PATTERNING WITH SALT LAKE CITY APPROXIMATE AREA OF CONTAMINATED SOILS REV DATE DESCRIPTION Designed By Drawn By Checked By Approved By CADD Filename Sheet No. UTA Contract No. DrawingSALT LAKE CITY SLC_MUP_1 FOLSOM TRAIL 18-23997P TC TC KR, MP TS 1. VERIFY LOCATIONS OF PERTINENT SITE IMPROVEMENTS INSTALLED UNDER OTHER SECTIONS. IF ANY PART OF THIS PLAN CANNOT BE FOLLOWED DUE TO SITE CONDITIONS, CONTACT OWNER'S REPRESENTATIVE IMMEDIATELY PRIOR TO COMMENCING WORK. 2. COORDINATE WITH CIVIL AND LIGHTING PLANS. LA101 Site Materials Plan.dwg Prior Design Site & Existing Conditions 800 W 900 W Segment 1 Segment 2 Plaza 1000 W Design Mountain Stream Jordan River Diversion Point Site Water System Water Concept Stream ChannelStream Channel Pond Cascade Mountain Pond Concept 10 0 0 W 100 S 9 0 0 W 8 0 0 W I- 1 5 Je r e m y S t Inspriation Rail Yard Train Cars Overall Site Plan Main Segment (Active)Seconardy Segment (Natural/Passive) Main Plaza (Urban) Stream ChannelStream Channel 10 0 0 W 100 S Folsom St S Temple 9 0 0 W 8 0 0 W I- 1 5 I- 1 5 Je r e m y S t Pond & Stream 1000 W to 900 W Potential Street MaterialADA RampWidened Planting Strip Seating Area Amphitheater Seating Mid-Block Entry Seating Area Stream Channel Secondary Path Existing TrailTables & Chairs Narrowed Crossing Distance Micro Plazas Bridges Amphitheater Seating 10 0 0 W 9 0 0 W Folsom St Conceptual Section Seating Area Bioswale Stream Overlook Stream Channel Existing Trail Amphitheater SeatingAmphitheater Seating 900 W to 800 W Small Plaza w/Seat Wall Shade Trees Micro Plaza Existing Path Entry Plaza Stream Channel Future Adjacent Property Access/Use Zone Secondary Path Bridge Plaza/Seating Area Seatwalls Tables & Chairs 9 0 0 W 8 0 0 W Je r e m y S t Main Plaza Entry Area Future Play / Skate Area (TBD) Pond Cascade Gravel Seating Area Moveable Wooden Benches Paving Accent Bands Seating Nooks Bike Lane Street Trees Mounded Planting Areas Permeable Pavers Bridge Stream Channel Conceptual Sections Movable Benches Micro Plazas Promenade Raised Planter Screen Wood Benches Planting Areas Planting Areas OverlookSeat Walls Bridge Pond Cascade Stream Channel Material Palette / Inspriation WOOD BENCHES AMPHITHEATER SEATING MAIN BRIDGE SECONDARY STREAM CROSSINGS ICONIC PLAY AREA / PUBLIC ART MOVEABLE FURNITURE PAVING PATTERNS URBAN CANOPY SEATWALLS Seatwalls | Benches Straight C-CurveS-Curve Wood Topper Concrete Pavers Folsom Street Folsom Street Planted BulboutsNarrowed Crossing Distance 24’ Travel Lane Expanded Planting Strip Extended Curb/Narrowed Crossing Distance Parallel ParkingStreet Trees Raised Crosswalk Folsom Street Existing Redesigned Public Art Potential Public Art Locations Potential Street-Crossing ArtPotential Building Murals Potential Lighting & Murals Installations (beneath highway) Public Art Ideas OVERPASS MURALS OVERPASS LIGHTING BUILDING MURALS STREET ART SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY DATE: November 22, 2023 PREPARED BY: Lauren Parisi, RDA Senior Project Manager RE: City Creek Daylighting at Folsom Trail REQUESTED ACTION: Briefing regarding the City Creek Daylighting Design Plan POLICY ITEM: North Temple Project Area BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: In June of 2022, the Redevelopment Agency of Salt Lake City (“RDA”) began working with the consulting team including CRSA Architecture Planning and Design, Bio-West Engineering, Avenue Consultants and Seven Canyons Trust (“Consultant”) to complete a “Design Plan” to daylight (bring to the surface) a portion of City Creek that runs underground within a culvert just north of the Folsom Trail from approximately 700 West to 1000 West. Originally recommended in Salt Lake City’s 1992 Open Space Plan, the daylighting of City Creek along Folsom Trail is envisioned to revitalize the former rail corridor into a thriving ecosystem and active community connection. As the preliminary design planning effort comes to a close, this memo provides a summary of the design process and plan (Attachment A) as well as next steps regarding implementation. DESIGN PLAN EFFORT: Technical Analysis. The City Creek Daylighting Design Plan builds off the Feasibility Study, published in June of 2020, that identified multiple concepts for daylighting the creek. The Consultant was directed to move forward with design of the first concept, which features an eight-foot-wide partial-flow stream channel. To do this, the Consultant conducted a detailed technical analysis of water quality data, flow data and soil samples. Current site conditions were also analyzed including existing infrastructure and grading along the trail. The results of this research are included under the Technical Analysis section of the Design Plan. Community Engagement. In addition to the technical analysis, the Consultant completed a robust community engagement effort to better understand the community’s vision for the City Creek at Folsom Trail. Engagement was phased to provide check-in points with the community throughout the design process, which included conducting multiple surveys, a stakeholder forum and a final design walk. In addition to engaging with the public, a technical advisory committee comprised of local experts provided feedback at critical points in the design process. More detailed information, including the results of the community engagement, is included under the Community Engagement section of the Design Plan. 2 City Creek Design. The final design plan features three distinct segments of creek/trail referred to as “The Active,” “The Natural” and “The Plaza.” The design language is inspired by the corridor’s previous identity as the Folsom rail-line. Secondary paths, plazas, and plantings find their shape from the interchanges and switches in a rail yard, while plantings, pavers, and seating draw from the stacked and linear boxes of train cars. The new channel will begin at a basin on the Plaza segment to store water for a constant base flow and reduce peak runoff by storing flow during peak periods. Paying homage to the creek’s canyon headwaters, a cascade at the inflow will oxygenate the water to prevent stagnation and related water quality issues. Wetland and riparian vegetation will enhance water quality before entering the more confined channel. The creek will then move into a channel with a continuous baseflow of approximately two to four cubic feet per second. The bottom of the channel will have coarse gravel and small cobbles with riparian vegetation growing on the banks. The channel will need to cross several existing roadways utilizing traditional culverts, inverted siphons, or other cost-effective options. In addition to the comprehensive design concept, the Consultant has produced construction drawings considered to be 40% complete. This includes elements such as the proposed width and grade of the constructed creek, drainage aspects, landscaping details, paving design and pedestrian amenities. 3 NEXT STEPS: Project implementation will be phased. The first phase includes the installation of landscaping, irrigation, and certain amenities by the Public Lands Department. These improvements will be primarily adjacent to the trail and focused on intersections and other nodes. This will occur within the “Folsom Corridor,” from 1000 West to 800 West, along South Temple from 800 to 600 West, and all the way to the North Temple FrontRunner Station. Design and construction of these first phase, trail-oriented improvements are funded by a $2 million allocation of the voter-approved General Obligation (GO) Bond for Parks, Trails, and Open Space. Construction may begin in 2024 or 2025. Subsequent phases will include additional landscaping improvements to support a new creek channel, and diverting City Creek waters from the buried culvert to the surface. It is anticipated that multiple funding sources, including the RDA’s North Temple project area funds, federal grants, and philanthropic dollars, will be needed to cover the total estimated project cost of approximately $12.1 million. The RDA, in collaboration with other city departments, will work to identify these funding sources for finalizing the design and implementing the creek daylighting. ATTACHMENT: Attachment A – City Creek Daylighting Design Plan A Redevelopment Agency of Salt Lake City & Seven Canyons Trust Collaboration. No v e m b e r 2 0 2 3 . DAYLIGHTING DESIGN PLAN. Thank you to our partners and funders who made the this plan possible, and a special thank you to the many community members who participated in the process and contributed to the document. All photographs and graphics courtesy of the Seven Canyons Trust or CRSA, unless otherwise noted. Seven Canyons Trust — Brian Tonetti & Jess Lofland Redevelopment Agency of Salt Lake City — Cara Lindsley & Lauren Parisi CRSA — Kelly Gillman, Bradley Kraushaar, Kenneth Sanhueza, Laura Smith, & Cooper Parson Avenue Consultants — Stacee Adams & Thomas McMurtry BIO-WEST, Inc. — Christopher Sands Land Acknowledgment. The stream, colloquially known as City Creek, flows through the ancestral lands of the Eastern Shoshone Tribe, Goshute Indian Tribe, Northwestern Band of the Shoshone Nation, Ute Indian Tribe, and Shoshone-Bannock Tribes [01]. The stream’s native names include nah- poh-pah (unknown language) and so’ho-gwa (Shoshoni language) [02]. Partners & Funders. City Creek at Folsom Trail Daylighting Design Plan02 T E A M . Technical Advisory Committee. Project Management Team. Salt Lake City Public Lands — Tom Millar, Tyler Murdock, & Makaylah Respicio-Evans Salt Lake City Public Utilities — Michael Guymon, Jason Draper, & Holly Lopez Salt Lake City Planning — Rylee Hall Salt Lake City Transportation — Will Becker Utah State University — Ryan Dupont University of Utah — Jenn Follstad Shah Residents & Business Owners — Paulo Aguilera & Victoria Karpos Redevelopment Agency of Salt Lake City Seven Canyons Trust Crocker Catalyst Foundation Willard L. Eccles Charitable Foundation Danuel Stanger Kevin & Alice Steiner Dominion Energy George S. & Dolores Doré Eccles Foundation Rocky Mountain Power Grant Kesler Scandia Snell & Wilmer Zeke Dumke III Sources: [01]Seven Canyons Trust, Land Acknowledgment (2020). [02]Stansbury, Map of the Great Salt Lake and Adjacent Country in the Territory of Utah (1852); and Chamberlin, Place and Personal Names of the Gosiute Indians of Utah (1913). I N T R O D U C T I O N . Section 01.City Creek at Folsom Trail Daylighting Design Plan City Creek on North Temple, circa 1867. Photo credit: Utah State Historical Society. The City Creek at Folsom Trail Daylighting Design Plan is a community-based vision for City Creek and additional improvements along the Folsom Trail between 700 West and 1000 West in the Poplar Grove neighborhood of Salt Lake City. This plan follows the City Creek Daylighting Feasibility Study published in June 2020, which identified two concepts for the daylighting of City Creek along the Folsom Trail. Each originate at a pond to be located on City- owned property at 39 South 800 West. The first concept was deemed most feasible by a collaborative team of Salt Lake City departments, which features an approximately eight-foot-wide partial-flow stream channel. daylighting [dey-lahy-ting] verb - The uncovering of a stream previously buried in a pipe or culvert. City Creek at Folsom Trail will revitalize a former rail corridor into a thriving ecosystem and community connection to create a beautiful, safe, and welcoming community centerpiece with more access to nature, improved water quality, and mitigated surface area flooding. The City Creek at Folsom Trail Daylighting Design Plan is a collaboration between the Redevelopment Agency of Salt Lake City and Seven Canyons Trust. CRSA, in partnership with BIO-WEST and Avenue Consultants, were selected to assist with the plan’s creation. Relevant plans and documents: Open Space Plan (1992) North Temple Boulevard Plan (2010) Westside Master Plan (2014) Pedestrian & Bicycle Master Plan (2015) City Creek Daylighting Feasibility Study (2020) Mission & Vision. City Creek at Folsom Trail Daylighting Design Plan06 RAIL TO The Folsom Trail is an off- street, paved trail located at 50 South (between South Temple and 100 South) from the North Temple FrontRunner Station to the Jordan River Trail in Salt Lake City. West of Interstate-15, it follows a former railroad right-of-way, acquired by Salt Lake City in 2007-2008. The first phase was completed in 2022, which included installation of the trail to 1000 West, lighting, crossings, and some site furniture. The Salt Lake City Open Space Bond, approved in 2022, allocated approximately $5 million towards the completion of the Folsom Trail between 1000 West and the Jordan River. Additional property acquisition may be required to make this connection [03]. Remaining funds will be put towards landscaping, amenities, and/ or creek daylighting. Folsom Trail. CREEK & TRAIL. Left to right: Folsom Trail looking east at 800 West. Folsom Trail looking west at 800 West. Folsom Trail looking east at 1000 West. As Salt Lake City urbanized at the turn of the 20th Century, the Plat of Zion was imposed on the geography of the Wasatch Front. Houses were concentrated along creeks and floodplains for its water source and cooling in the summertime. However, spring brought snowmelt and, with it, flooding. Floodwaters ravaged fields and houses along the banks. Instead of relocating houses out of the floodplain to prevent damage, creeks were channelized as they entered the broad valley bottom, straightening the previously meandering channels. In 1856, the two branches of City Creek were combined into a 12-foot ditch down the middle of North Temple [04]. This caused banks to steepen and erode, creating History. State Fairpark [05]. Even at that time, residents lamented the loss of the creek through downtown. From a 1921 Deseret News article: “To hide completely the flowing water within a conduit and to make of [North Temple] a stretch of ordinary pavement would be to throw away opportunity for which many cities would gladly pay a million dollars” [06]. Daylighting Salt Lake City’s creeks gained traction after the devastating 1983 floods, which saw City Creek flow in a sandbagged channel down State Street. The 1992 Open Space Plan highlighted a route for City Creek that would flow from Memory Grove, through the downtown core, into what would become The Gateway, and finally through the Folsom rail corridor on its way to the Jordan River [07]. In 1995, the transformation of a surface parking lot into what is now City Creek Park began. A public-private partnership between Salt Lake City and the Church of Jesus Christ of Latter-Day Saints exchanged the ownership of the lot for rights to underground parking. a safety issue for early settlers. The City’s creeks became the early sewer system due to their hydrology, flowing east- west out of the city. Pollution from sewage, agriculture, and industry degraded water quality. Many of the early canals, diversions, and dams left channels devoid of water. Regarded as a nuisance, this led to the burial of many portions of Salt Lake City’s creeks. Completed in 1914, the City Creek aqueduct transports creek water underground from Memory Grove to the Jordan River—spilling out at the Utah City Creek at Folsom Trail Daylighting Design Plan09Images left to right: City Creek burial on North Temple in 1910. City Creek flooding on State Street in 1983. Grant Tower exchange of Folsom rail-line in 1952. Photo credit: Utah State Historical Society & Richard Kindig. Benches, green space, and a stone-lined creek create an oasis in the heart of downtown Salt Lake City. The creek daylighting was extended onto Canyon Road upstream towards Memory Grove and later downstream onto North Temple adjacent to the Church Conference Center in 2000 [04]. In 2006, the United States Army Corps of Engineers initiated a feasibility study to extend the creek daylighting down the Folsom rail corridor [08]. The Folsom rail line was realigned in 2007 to 2008. And, in 2011, an overflow culvert was placed down the corridor to mitigate flooding [09]. For a variety of reasons, the feasibility study was never approved, and momentum waned. Renewed interest, including a 2020 feasibility study led by Salt Lake City and the design and construction of the Folsom Trail, reinvigorated the project. 10 Sources: [03] Salt Lake City, Parks, Trail, and Open Space Bond (2023). [04] BIO- WEST, Riparian Corridor Study: City Creek Management Plan (2010). [05] Watson, The Stream That Built a City (1995). [06] Deseret News, City Creek Should Be Preserved (1921). [07] Salt Lake City, Open Space Plan (1992). [08] URS, Euclid Small Area Master Plan (2006). [09] J-U-B, Folsom Avenue Storm Drain Project (2011). City Creek daylighting at City Creek Park in Salt Lake City. Section 02.City Creek at Folsom Trail Daylighting Design Plan City Creek daylighting on Canyon Road in Salt Lake City. EXISTING CONDITIONS & TECHNICAL ANALYSIS. City Creek is a 15-mile small, mountainous stream that flows from City Creek Canyon, through the Capitol Hill, Greater Avenues, Downtown, Fairpark, and Poplar Grove neighborhoods of Salt Lake City, and into the Jordan River. The creek is characterized by a steep gradient within the canyon and confined and partially confined valley settings. The upper canyon demonstrates natural step-pool morphology with gravel-cobble and occasional boulder stream bed. The creek transitions to steep pool-riffle form in the lower canyon [09]. The banks support a robust riparian ecosystem of native mature trees and shrubs. As the creek flows into the valley, it winds through a series of parks and open spaces, including City Creek Natural Area, Memory Grove, Canyon Road, and City cubic feet per second (cfs) A measurement for flow rate or discharge in a stream equal to one cubic foot of water per second. Creek Park, with riparian- associated and ornamental species. The City Creek watershed drains approximately 24.7 square miles. The flow is snowmelt-driven with peak discharge between May and Downstream of West Temple, the creek continues underground beneath North Temple in the North Temple Conduit to the Jordan River. There is a diversion at approximately 600 West that has the ability to split flows between the North Temple Conduit and the Folsom Drain. The Folsom Drain runs between the Folsom Drain Junction Box, beneath the Folsom Trail, to the Jordan River. City Creek at Folsom Trail Daylighting Design Plan14 June. Average peak flow is 45 cubic feet per second (cfs) and average low flow is three cubic feet per second [10]. The highest recorded flow was 322 cfs in 1983 [09]. Salt Lake County currently measures flow at Memory Grove Park (1961 to 1963 and 1969 to present). Key. Soil Sample - No Concern Water Quality Sample Soil Sample - Concern Design Plan Figure 01. Map of Folsom Corridor. F E D C B A Folsom Trail Folsom Drain North Temple Culvert Folsom Trail - Proposed Folsom Trail - Detour Segments 16 The City Creek Daylighting Feasibility Study analyzed daylighting City Creek’s flow within the Folsom corridor. The corridor was divided into six segments (Figure 01). Three concepts were recommended: Concept 01. Daylight only the base flow in City Creek— approximately two to four cubic feet per second. Concept 02. Daylight the full design flow of the four- foot by 12-foot box culvert underneath the corridor, the Folsom Drain, at F E A S I B I L I T Y S T U D Y . Image: Partial flow design concept in City Creek Daylighting Feasibility Study. Photo credit: Landmark Design. City Creek at Folsom Trail Daylighting Design Plan by a team of Salt Lake City departments to move forward with Concept 01, the partial flow channel, in Segments B, C, and D (approximately 700 West to 1000 West). Opportunity exists in future phases to extend the creek channel to both upstream and downstream segments on the Folsom corridor. However, grading challenges and private property constraints will require additional design considerations [11]. Data Gap. The City Creek Daylighting Feasibility Study identified additional data was needed to inform this design plan. The data gap included flow and water quality at the North Temple diversion box, the Folsom Drain junction box, the Folsom Drain at 1000 West, and the Jordan River outfall. Additional technical analysis was competed to fill the gap, which is outlined in the following section. approximately 150 cubic feet per second and remove some or all of the culvert. Concept 03. Combine 01 and 02 to address property constraints in Segments E and F. Each concept was determined to be physically feasible. However, the costs ranged significantly, and the resulting channel varied in space needed, utilities impacted, and water conveyed. For the first phase, it was deemed 18 City Creek at Folsom Trail Daylighting Design Plan TECHNICAL ANALYSIS. As concluded in the City Creek Daylighting Feasibility Study, additional technical analysis was needed to fill the data gap and inform the design of the creek channel. Water Quality. Sampling locations included Memory Grove, North Temple Diversion, Detention Basin Junction, and 1000 West (Figure 01). In 2019, two samples were taken at Memory Grove and North Temple Diversion during snowmelt-driven high flow Figure 02. City Creek Flow Rate at Memory Grove in 2022 (cfs). by the State of Utah (6.5- 9.0), falling between 8.1 and 8.8. Turbidity was below the State threshold (10.0) except during spring run-off, which is not unusual. Escherichia coli was below the maximum State threshold (668) except downstream of 1000 West where the water is stagnated in the Folsom Drain. Coliform and E. coli measurements are of concern but not unusual for this urban context. It is important to keep the creek flowing in the new channel to prevent stagnant conditions. Upstream, City Creek has two designated uses: Class 2B - Protected for secondary contact recreation (and infrequent primary contact recreation) where there is low bodily contact or likelihood of ingestion, such as paddling, wading, and fishing. Class 3A - Protected for cold- water game fish species and other aquatic life necessary for their lifecycle. Based on the water quality results, a Class 2B designated use is recommended for the new creek channel. It is recommended that testing continue to quantify potential water quality improvements post-implementation. Flow. The closest continuous flow data is measured at Memory Grove. Additional flow measurements were conducted at the North Temple Diversion, Detention Basin Junction, and 1000 West in July, September, and October in 2022, which was a dry year with a short peak reaching only 16 cubic feet per second (cfs). Preliminary results suggest significant groundwater inputs between Memory Grove and North Temple diversion, including base flow at Memory Grove and inflow pumped from underground parking downtown. It is estimated flows double at North Temple. However, in one instance, flow Jan JulMar SepMay NovFebAugAprOctJun Dec 5 0 1 0 1 5 2 0 (05/02/2019) and summertime low flow (08/08/2019). In 2022, three samples were taken at all four locations in July, September, and October. Based on samples, water quality is typical for an urban stream. Measurements for pH were within the range established 20 City Creek at Folsom Trail Daylighting Design Plan Figure 03. Environmental Protection Agency Screening Levels. Frequency Factors Time 250 days Adult 8 hr. 250 days Youth & Adult 4 hr. 350 days Youth & Adult 24 hr. Industrial Recreational Residential Soils. Properties within and around the project area include multiple Environmental Protection Agency-identified brownfield and Superfund sites, which has resulted in contamination of soils and groundwater. A limited site investigation was previously conducted in July 2011, which identified concentrations of Polycyclic Aromatic Hydrocarbons above the Environmental Protection Agency’s regional screening levels in the several areas of the project area. A Phase II Environmental Site Assessment was completed in October 2022 to assess existing soil contamination. The investigation was limited to the first five feet below surface grade based on the understanding that construction will be limited to this area. A total of 39 distinct and four duplicate soil samples were collected from 19 soil borings within the project area—one shallow soil sample less than one foot below surface grade and one deep (one to three feet and/or three to five feet below surface grade). Samples were analyzed for Metals (Arsenic, Barium, Cadmium, Chromium, Lead, Mercury, Selenium, and Silver), Total Recoverable Petroleum Hydrocarbons, Volatile Organic Compounds, Total Petroleum Hydrocarbons – Gasoline Range Organics, Total Petroleum Hydrocarbons – Diesel Range Organics, and Polycyclic Aromatic Hydrocarbons. Recreational screening levels were used to analyze results (Figure 03). Soils less than one foot below surface grade near boings SB-2, SB-3, and SB-12 contain chemical concentrations above the recreational screening level. Soils at three to five feet below surface grade near SB-8 contain chemical concentrations above the industrial screening levels [13]. Any soil excavated in these areas should be properly handled and disposed of at a permitted landfill. Additional sampling and analysis should be completed at three to five feet below surface grade near soil boring SB-16 to determine if arsenic concentrations exceed accepted background levels. Sources: [09] BIO-WEST, Salt Lake City Riparian Corridor Study: City Creek Management Plan (2010). [10] Salt Lake County, Stream Care Guide (2014). [11] Salt Lake City, City Creek Daylighting Feasibility Study (2020). [12] BIO-WEST, City Creek Daylighting Project Hydrology Summary (2023). [13] BIO-WEST, Folsom Trail Soil Contamination Memorandum (2022). was 14 times bigger at North Temple compared to Memory Grove [12]. Groundwater inputs support continuous flow delivery even in below average drier months, where values may reach below two cfs. New low-flow diversion baffles were installed at North Temple in October 2022 to better deliver minimum flows. The one measurement conducted after installation shows a delivery of 2.32 cfs to the Detention Basin Junction, which was base flow in Memory Grove at the time [12]. However, more measurements are needed to test baffles and quantify groundwater inputs downstream of Memory Grove. Section 03. Folsom Trail Mural Project by Roots Art Kollective. C O M M U N I T Y E N G A G E M E N T . City Creek at Folsom Trail Daylighting Design Plan Public and stakeholder engagement provides the structure for the City Creek at Folsom Trail Daylighting Design Plan. Creative community engagement strategies were utilized to ensure equity in outreach and gathering the public’s thoughts, ideas, and visions for the future City Creek at Folsom Trail. All materials and engagement opportunities were offered in Spanish and English to accommodate the diverse presence within this community. Targeted social media advertising to zip codes touching the trail (84101, 84103, 84104, and 84116) was successful in reaching the target demographic. Mailers and two rounds of door hangers were sent to 600 properties buffering the corridor. Lawn signs were placed along the trail Engagement Quick Facts: Total Residents Involved: 1,527 Surveys Collected: 265 Visual Preference Completed: 701 Design Feedback Comments: 65 Activation/ Engagement Events: 13 ~300’ Mural Completed 24 City Creek at Folsom Trail Daylighting Design Plan and at key neighborhood nodes to engage residents on their own time. Popular community events, like the Fisher Mansion Beer Garden, were utilized to maximize project engagement. Additional fun, creative engagement events, like the design walks and celebration, were hosted to encourage further feedback from residents. Finally, the Folsom Trail Mural Project was implemented with local west- side artists to bring short-term activation to the corridor, while highlighting the daylighting of City Creek and Folsom Trail. SURVEY. The survey was launched September 12, 2022 and was available until September 30, 2022. The survey was distributed online and in- person. Six intercept surveying events engaged participants along the trail, at key community nodes, and during popular community events. homelessness, maintenance, and safety (38, 33, and 31 percent, respectively). Gentrification and evaporation, two main concerns identified at the start of the project, were only cited by 1 percent. Seventeen percent of participants were not concerned about the project. Figure 04. What would you like to see along the creek and trail? (%)Results. Survey participants mostly had never used the trail (46 percent). Interestingly, weekly users were next at 23 percent. Users mostly lived by the trail and/or used it for walking, biking, or rolling (both 48 percent). Some used it to commute (21 percent) or to shop and/or work nearby (both 17 percent). Visiting family or friends nearby was lowest at 9 percent. Participants prioritized seating areas, lighting, and trash and recycling cans, all of which already exist along the trail. This either underscores the need for additional amenities in this category or shows a lack of use among participants. Playgrounds were the lowest priority. This may underscore the safety concerns for children expressed in the following question. The main concerns about the project included unsheltered 1 0 0 2 0 3 0 4 0 5 0 There were 23 comments on the comment map—5 from intercept surveying and 18 online. Nine were concerns, nine amenities, three popular areas, and two uncategorized. S e a t i n g P l a c e m a k i n g / A r t D r i n k i n g F o u n t a i n T r a s h / R e c y c l i n g G r e e n I n f r a - s t r u c t u r e S i g n a g e L i g h t i n g W i l d l i f e H a b i t a t B i k e R a c k L a n d s c a p i n g D o g W a s t e S t a t i o n P l a y S p a c e Image left to right: Intercept surveying at 900 West along the Folsom Trail. Visual preference at Fisher Mansion Beer Garden. 26 City Creek at Folsom Trail Daylighting Design Plan VISUAL PREFERENCE. The visual preference was launched October 1, 2022 and was available until January 6, 2023. It was distributed online and in- person. The visual preference was also programmed at the two- day Fisher Mansion Beer Garden, which engaged residents in- person during this popular community festival. The Stakeholder Forum was hosted on January 11, 2023. Results. The visual preference asked participants to prioritize three elements across six categories: art and placemaking, gathering spaces, play spaces, secondary trails, landscaping, and other. Images were attached to the three elements to give participants a sense of possibilities. Preference points were given to each of the three engagement opportunities: Fisher Mansion Beer Garden Day One, Fisher Mansion Day Two, and Online (Figure 05). Stakeholder Forum. Eighteen technical experts, community leaders, and municipal staff joined the Stakeholder Forum at Sugar Space. A presentation introduced attendees to the project, background, existing conditions, community engagement, three characterizations: “Urban Industrial,” “Modern Greenway,” and “Nature Corridor,” and an early conceptual design. They were then spilt into three categories—Water, Community, and Recreation—for individual conversations prompted by questions about whether the characterizations met project expectations and their preferences. Then, the group came together for a final discussion about the individual conversations collectively. Figure 05. Visual preference across three engagement opportunities 1 0 Art/Placemaking Secondary TrailsGathering Spaces LandscapingPlay Spaces Other 2 3 S c u l p t u r e S o i l P a v i l i o n G r e e n I n f r a s t r u c t u r e N a t u r e P l a z a L i g h t G r a v e l B o a r d w a l k s N a t i v e P l a n t i n g s T r a d i t i o n a l S p l a s h P a d M u r a l P a v e d C r e a t i v e S e a t i n g X e r i s c a p e W o r k o u t D o g P a r k 28 City Creek at Folsom Trail Daylighting Design Plan DESIGN FEEDBACK.FOLSOM TRAIL MURAL PROJECT Design feedback was launched August 14, 2023 and was available until September 15, 2023. It was distributed online and in-person. Two design walks toured the designs with residents. Surveying was also programmed at the two-day Fisher Mansion Beer Garden, which engaged residents in- person during this popular community festival. On September 11, 2023, a separate meeting was held with business owners around the Folsom Trail to gather specific feedback from this stakeholder group. Results. The corridor was split into three distinctive segments based on the user experience of each and amenities provided therein: The Plaza – ~700 to 800 West The Natural – 800 to 900 West The Active – 900 to 1000 West Four questions were asked for each segment—what excites you, what do you dislike, what is missing, and do you have concerns. Some feedback was specific for each segment, and some was consistent across the segments. Generally, respondents found City Creek, green/natural space, trees and native vegetation, shade, and seating areas most exciting. They disliked the street crossings. They thought lighting, enforcement, and improved street crossings were missing. Finally, they were most concerned with the design attracting people experiencing homelessness, safety, maintenance, and activation. Eight business owners joined the business owners feedback event on September 11, 2023. This targeted event also led to online comments from business owners not able to attend the in-person meeting. Design Walks. Two design walks were held Image: Folsom Trail Mural Project by Roots Art Kollective. on September 30, 2023 to provide in-person tours of the design and solicit feedback. Approximately eight participants joined. In addition, an outreach table was hosted at The Plaza (35 South 800 West), which engaged an additional seven passersby. Roots Art Kollective, a team of three local Mexican-American artists, were chosen to paint the mural. Completed in September 2023, it fills the nearly 300-foot-long wall at 25 S 1000 W, overlooking the trail. The piece creates immediate activation and beautification— and will stimulate further art and placemaking efforts. The mural compliments larger engagement efforts on the plan by highlighting efforts, generating excitement, and building support. Section 04. Example of timber seating proposed at The Plaza. D E S I G N . City Creek at Folsom Trail Daylighting Design Plan The design language is inspired by the corridor’s previous identity as the Folsom rail-line. Secondary paths, plazas, and plantings find their shape from the interchanges and switches in a rail yard, while plantings, pavers, and seating draw from the stacked and linear boxes of train cars. City Creek. The new channel will begin at a basin to store water for a constant base flow and reduce peak runoff by storing flow during peak periods. Paying homage to the creek’s canyon headwaters, a cascade at the inflow will oxygenate the water to prevent stagnation and related water quality issues. Wetland and riparian vegetation will enhance water quality before entering the more confined channel. City Creek Quick Facts: Native Name: Nah-po-pah, so’ho-gwa (Goshute) [14] Watershed Size: 24.7 sq. mi. [15] Total Stream Length: 14.6 mi. Buried Length: 2.0 mi. [16] Average Peak Flow: 45 cfs Key. Native Accent Green Infrastructure Meadow Riparian Figure 06. Final Conceptual Design. Skate Park Movable Benches Restroom Nature Play Space Street Crossing Art Permeable Paving SeatwallRaised Crossing ADA Ramp Folsom Trail Cascade & Pond Paving AccentFolsom Drain Tables & ChairsCity CreekMural Secondary TrailRDA Property Bike Racks Amphitheater Seating Movable Benches Amphitheater Seating 34 City Creek at Folsom Trail Daylighting Design Plan Figure 07. Segment Cross Sections. The Plaza. The Active. Rail Tie BenchesMovable Benches Amphitheater Seating Seatwall Overlook Cascade Plaza Plaza Plaza PondPlaza PlazaCity Creek Plaza Parking - 20’ Parking - 20’ Travel Lane - 25’ Travel Lane - 24’ Parking - 20’ P a r k i n g 1 0 ’ Planting Planting Plaza City Creek P l a n t i n g P l a n t i n g P l a n t i n g P r o m e n a d e P l a n t i n g P l a n t i n g S i d e w a l k S i d e w a l k F o l s o m A v e n u e F o l s o m T r a i l F o l s o m T r a i l F o l s o m T r a i l Folsom Avenue - Existing. Folsom Avenue - Proposed. 36 City Creek at Folsom Trail Daylighting Design Plan The creek will then move into a more confined channel with a continuous baseflow of approximately two to four cfs. The bottom of the channel will have coarse gravel and small cobbles with riparian vegetation growing on the banks. The channel will need to cross several existing roadways which will utilize traditional culverts, inverted siphons, or other cost-effective options. Development Design Guide. Trail-oriented development along the Folsom Trail and City Creek will fulfill the desire of residents and businesses to live and locate along streams, trails, and other amenities. They will bring density to corridor and offer additional amenities, such as bicycle storage, workrooms, rentals, and shower/locker facilities, that are not as feasible on public lands. They offer tenants and visitors connection to active transportation, recreational opportunities, and nature from their doorstep, while blurring the line between the corridor and adjacent properties. When developers integrate goals, they also improve their property values and bottom- line. Ultimately, a balancing of preservation/adaptive reuse and new mixed-use development will protect the character of the neighborhood, while diversifying housing, jobs, and entertainment to create a vibrant, healthy, and thriving neighborhood. Trail-oriented developments should achieve many, if not all, of the following guidelines for successful integration into the corridor and neighborhood: Add indoor and outdoor amenities at development to offer additional facilities to enhance user experience (Figure 06). Implement ADA-compliant connector trails with wayfinding signage on property to make Folsom Trail connection easy and accessible. Orient development, exits/ entrances, and active uses towards the corridor to create a bustling, lively ground- floor. Provide outdoor dining areas, covered patios, and overlooks on property adjacent to the corridor to activate it and increase resident surveillance. Put green infrastructure, such as green roofs, rain gardens, and bioswales, on property to mitigate stormwater runoff from roofs, parking lots, and other impervious surfaces into City Creek. Hire local artists to paint murals on blank walls adjacent to the corridor that uplift the diverse cultures on Salt Lake City’s west-side and add additional placemaking, sculptural elements, and artistic lighting at development to beautify the neighborhood and create a vibrant area. Provide an abundance of Indoor Outdoor Low Cost Medium Cost High Cost Figure 08. Amenities for developments adjacent to Folsom Trail. Discounts for users Restroom use Water refills Bicycle pump/ tool station Bicycle racks Dog water bowl Drinking water fountain Outdoor furniture Pet waste station Programming Trash/recycling bins Nature play space Outdoor exercise equipment Pavilion/gazebo Playground Public art Trail access Wayfinding signage Play field/court Plaza Splash pad Stage/ amphitheater Bicycle storage Bicycle valet Locker/shower facilities Bicycle rentals Widened hallways Workroom/on- site mechanic 38 City Creek at Folsom Trail Daylighting Design Plan well-designed bike racks on property to accommodate cyclists using trail. Ensure adequate, but wildlife-friendly and dark- sky compliant, lighting and design principles that provide safety for trail users and tenants alike. Equity. While adaptive reuse, preservation, and new mixed- use developments will certainly improve the livability of the corridor, developers should be mindful of equity, inclusion, and displacement related to gentrification. Equitable development reduces the risk of displacement by ensuring housing is available and affordable, provides jobs and resources that benefit the community, and fosters a sense of pride and ownership in the surrounding neighborhood. Salt Lake City is developing the Anti-Displacement Strategy, which contains a two-year action plan to “identifying priority actions that the City can take to help people stay and thrive in our community as we grow” [17]. These strategies will go a long way towards addresses challenges related to displacement. Individual developments along the Folsom Trail can also contribute to equity in substantial ways. Affordable housing options should be included in each new development to ensure impacted residents are not displaced. At minimum, existing affordable housing stock within a half-mile buffer to the corridor should be preserved. Developers should also consider hiring community stewards from the surrounding neighborhood to assist with engagement, programming, and maintenance. They can help build trust between the community and developers to keep residents invested in the improvement of their neighborhood, while creating jobs. Stewards should be multi- lingual and paid a living wage. Programming. Activation is a critical way to improve user safety and experience. More eyes on the trail and creek will lead to community surveillance of the corridor and quicker identification and response to issues. Programs, events, and gatherings will draw more users to the corridor and bring positive activity. Programming can also improve inclusion by expressing community identity, celebrate diverse traditions, promote shared values, and create a sense of place. They can showcase underrepresented voices and be a format for public discourse. Service-oriented volunteer efforts can get students and residents involved in on-the- ground meaningful activity, while meeting maintenance requirements for municipal departments, such as litter clean-up, noxious weed removal, plantings, seeding, and more. Teachings would develop stewardship around the corridor and a pathway for community members to get involved in their neighborhood improvement. Ultimately, efforts build support for implementation and ongoing investment in these areas as community member learn about and appreciate the value. Image left to right: Example of main bridge proposed at The Plaza. Example of skate park and public art proposed at The Plaza. BUDGET. The Plaza.The Plaza.The Natural.The Natural.The Active.The Active. 40 City Creek at Folsom Trail Daylighting Design Plan Demolition. Public Art. Soft Costs. Market Estimate Totals. Baseline Estimate Comparison. Landscaping Street & Curb $ 46,692 Focal Sculpture Street Crossings Artistic Lighting $ 120,940 $ 12,196,563 $ 8,554,277 Contingency Overhead Insurance Permits & Fees Engineering $ 4,305,411 $ - $ - $ - $ 103,440 $ 2,500 $ 5,000 $ 110,940 $ 5,647,140 $ 4,477,792 $ 526,077 $ 378,775 $ 70,705 $ 176,762 $ 282,819 $ 1,435,137 $ 526,077 $ 378,775 $ 70,705 $ 176,762 $ 282,819 $ 1,435,137 $ 526,077 $ 378,775 $ 70,705 $ 176,762 $ 282,819 $ 1,435,137 $ - $ - $ - $ - $ 2,500 $ - $ 2,500 $ 3,075,478 $ 1,862,242 $ 45,804 $ 3,888 $ 49,692 $ - $ 7,500 $ - $ 7,500 $ 3,473,945 $ 2,214,243 Site Structures. Bridges Restroom Rail Tie Benches Tables & Chairs Bike Racks Skate Park Nature Play Area Lighting $ 1,524,228 $ 152,750 $ 24,400 $ 132,703 $ - $ 4,000 $ 699,675 $ - $ 92,000 $ 1,105,528 $ 4,800 $ - $ - $ 3,000 $ 3,000 $ - $ 250,000 $ 61,500 $ 322,300 $ 14,400 $ - $ - $ 15,000 $ 3,000 $ - $ - $ 64,000 $ 96,400 Stream & Plantings. Pond Stream Channel Trees Groundcover $ 3,058,218 $ 257,500 $ 56,210 $ 148,660 $ 458,542 $ 920,912 $ - $ 217,717 $ 58,650 $ 756,718 $ 1,033,085 $ - $ 224,414 $ 109,980 $ 769,827 $ 1,104,221 Hardscaping. Pavers Concrete Crushed Stone Miscellaneous $ 3,138,074 $ 1,480,151 $ 424,559 $ 58,028 $ 111,885 $ 2,074,623 $ 212,456 $ - $ 46,856 $ 23,144 $ 282,456 $ 388,216 $ 41,351 $ 95,954 $ 255,474 $ 780,995 Sources: [14] Stansbury, Map of the Great Salt Lake and Adjacent Country in the Territory of Utah (1852); and Chamberlin, Place and Personal Names of the Gosiute Indians of Utah (1913). [15] Salt Lake County, Stream Care Guide (2014). [16] Seven Canyons Trust, Creek Channel Alignment Data (2018). [17] Salt Lake City, Anti- Displacement Strategy (2023). Permitting. There are no environmental permits needed for the project typically of other stream restoration projects. Expected required permits include: Salt Lake City Building Permit; Salt Lake City UPDES Storm Water Discharges Permit; and State of Utah Storm Water General Permit for Construction Activities. Additional permits may be needed if the project is within Utah Department of Transportation right-of-way beneath Interstate-15 and a noise permit may be needed when construction begins. Implementation. The City Creek at Folsom Trail Daylighting Design Plan brings us to the engineering phase. The next steps are to build momentum and raise the funding to construct the project. To learn more about how you can get involved, visit the project website: folsomtrail.org. NEXT STEPS. 42 City Creek at Folsom Trail Daylighting Design Plan MAINTENANCE. Hardscaping. Site Structures. Stream & Plantings. Public Art. Totals.354.5 Days 144 Days $ 134,500 Pavers Concrete Crushed Stone Miscellaneous 26.5 26 12 25 2 4 - 18 $ - $ - $ - $ - Bridges Restroom Rail Tie Benches Tables & Chairs Bike Racks Skate Park Nature Play Area Lighting 8 12 1 1 1 12 12 2 6 8 - 4 - 4 4 8 $ 10,000 $ 20,000 $ - $ 12,000 $ - $ - $ - $ 4,000 Pond Stream Channel Trees Groundcover 32 32 39 102 24 12 8 24 $ - $ 4,000 $ 12,000 $ 67,500 Focal Sculpture Street Crossings Artistic Lighting 4 6 1 4 8 6 $ 5,000 $ - $ - Labor Days.Contingency.Budget. City Creek at Folsom Trail Daylighting Design Plan. fo l s o m t r a i l . o r g MAYOR ERIN MENDENHALL DANNY WALZ Executive Director Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE:December 22, 2023 PREPARED BY:Marcus Lee, Project Coordinator Ashley Ogden, Senior Project Manager Cara Lindsley, Deputy Director RE:Tier 1 Pre-Disposition and Lessee Selection Report for Property Assemblage located at approximately 310 South 500 West REQUESTED ACTION: Written Briefing POLICY ITEM:Property Disposition N/ABUDGET IMPACTS: EXECUTIVE SUMMARY In accordance with the revised Real Property Disposition Policy that was adopted on March 23, 2021, when disposing of Tier 1 properties, the RDA is required to provide an update to the Board of Directors during the following stages of the disposition process: pre-disposition (prior to marketing the property), developer/lessee selection, and development/lease agreement. Per the same policy, the RDA may exclusively negotiate with a non-profit or governmental agency to dispose of property for community development or public use. This memorandum provides a pre-disposition and lessee selection report for a lease area that totals 1.72 acres and is located at approximately 310 South 500 West in the Depot District Project Area. ANALYSIS & ISSUES The information provided in Attachment A is intended to serve as a pre-disposition and lessee selection report for the lease of Tier 1 property located at approximately 310 South 500 West. The report provides an update to the Board as to the property’s reuse plan, method of disposition, selected lessee, timeline of disposition, and other information relevant to the disposition of the property. PREVIOUS BOARD ACTION •On September 15, 2020, the RDA Board allocated $865,000 for the stabilization of the Salt Lake Mattress Company Building. ATTACHMENTS: A. Tier 1 Pre-Disposition and Lessee Selection Report B. Proposed Project Renderings SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 WWW.SLC.GOV · WWW.SLCRDA.COM TEL 801-535-7240 · FAX 801-535-7245 Attachment A TIER 1 PRE-DISPOSITION AND LESSEE SELECTION REPORT Property to be leased located at approximately 310 South 500 West The following information serves as a pre-disposition and lessee selection report for the lease of Tier 1 property located at 310 South 500 West. The report includes the property’s reuse plan, method of disposition, selected lessee, timeline of disposition, and other information relevant to the disposition of the property. Property/Lease Area: 1.72-acre lease area located at approximately 310 South 500 West, to include proposed building footprints, setback areas between buildings and adjacent right- of-ways, and a proposed outdoor plaza area. The lease area spans multiple parcels that will be consolidated to create a development site. Current Status:The area contains the historic Salt Lake Mattress Company building, as well as a warehouse, accessory structure and parking lot that was purchased from, and is currently leased back by, the State of Utah Department of Community and Cultural Engagement. Project Area:Depot District Property Type: Tier 1 Justification: Tier 1 The property is specifically identified in a Salt Lake City adopted master plan. The property is fronting or adjacent to city-owned property, other than a public street, of at least 0.5 acres in size. Property’s Reuse Plan: The RDA has been exclusively negotiating with USA Climbing, the national governing body of the sport of competition climbing, for the opportunity to develop their permanent headquarters and national training facility on RDA-owned property at approximately 310 South 500 West, which is within the bounds of the Station Center redevelopment project. A separate agenda item and staff memo includes a draft term sheet that is being presented for the Board’s consideration. The proposed project is anticipated to include three primary components: 1. New construction of a primary structure that is 65-75 feet tall with a roughly 45,000 square foot (sf) footprint (exact specifications subject to further stakeholder engagement). This structure will include bouldering, lead, and speed climbing walls, as well as other support uses that are typical of a climbing facility. Most areas of the facility will be accessible by the community; some spaces will be reserved for the U.S. National Team’s exclusive use. 2. Rehabilitation of the historic Salt Lake Mattress Company building, anticipated to include publicly facing and accessible food, beverage, and retail uses, as well as private spaces for USA Climbing offices. 3. New construction of an outdoor plaza that will be utilized for USA Climbing-hosted competitions as well as other non-USA Climbing events (will be designed to accommodate 3,500 – 5,000 spectators). Adjacent building facades will include climbing walls to be used for regular training and competition events, with secure access controls that allow the public to view the climbing but prevent general access from the plaza. Design work is preliminary and if the project moves forward, USA Climbing will work with the Planning and Building Services Divisions to achieve a design that meets applicable zoning and building code requirements, in addition to receiving administrative design approval from the RDA. Method of Disposition: The RDA has exclusively negotiated with USA Climbing, a non-profit entity, proposed terms of a 99-year ground lease. The RDA’s Real Property Disposition Policy allows for disposition via exclusive negotiation in certain circumstances, including if the disposition is to a non-profit for a community development or public use. The RDA proposes to lease property to USA Climbing through exclusive negotiation because USA Climbing is a 501(c)3 and the proposed project is projected to achieve the following community development objectives: • • Will regularly attract visitors to the district during off-peak hours and activate the neighborhood with ~6-10 large multi-day events per year. Will be a catalytic activation to generate excitement for the Station Center project, help attract developers/tenants, and spur adjacent private landowners to make plans for their properties. USA Climbing will hire 50-60 new employees.• •USA Climbing has an estimated event-related economic impact of ~$300 million over a 10-year period. •USA Climbing draws many national and international visitors and brings awareness to Salt Lake City as a world-class climbing destination. • • Activation of the historic Salt Lake Mattress Company Building as described above. Equitable and inclusive programming that may include offerings such as youth programming, workforce development opportunities, and access to the facility for community members who may not otherwise have access to the sport of climbing, based on income or other key measures. Terms include the option to extend the lease term for an additional 50 years at fair market value, unless otherwise negotiated and approved. The annual lease rate is based on the fee simple, fair market value of the lease area, with the exception of the outdoor plaza area, which is proposed to be leased at no cost. The annual lease rate will escalate every five 5 years based on the previous 5 years’ average Consumer Price Index (CPI). A draft term sheet has been presented to the Board for their consideration and includes a proposed lease abatement that would reduce the lease rate according to the following schedule: • • • • • Years 1-6: USA Climbing will not make any lease payments during the first six years to account for construction and stabilization. Year 7: USA Climbing shall make a payment that is equal to 45% of the escalated annual lease rate. Year 8: USA Climbing shall make a payment that is equal to 50% of the escalated annual lease rate. Year 9: USA Climbing shall make a payment that is equal to 55% of the escalated annual lease rate. Years 10-99: USA Climbing shall make annual payments that are equal to 60% of the escalated annual lease rate. Property discounts are subject to approval by a majority vote of the Board if property is to be leased at a discount greater than 10% of the appraised fair market value. Lessee Selection: If the RDA Board approves the proposed term sheet and associated budget requests, the RDA and USA Climbing will enter into an exclusive negotiation agreement to memorialize the commitments until all conditions are met and final ground lease and development agreements can be executed. Estimated Timeline of Disposition: Pending RDA Board approval of the terms and associated budget requests, the RDA estimates the schedule of disposition of the property will be as follows: • • • • • RDA Board approval of term sheet/budget requests: Q1 2024 Both parties enter into exclusive negotiation agreement: Q1 2024 USA Climbing to refine project design and secure necessary City approvals: Q1 – Q3 2024 Both parties finalize/enter into ground lease and development agreements: Q3 – Q4 2024 USA Climbing breaks ground on project: Q3 – Q4 2024 Other Information Relevant to Disposition of the Property: In late 2022, the RDA purchased multiple State-owned parcels that will make up the future USA Climbing site. As part of that transaction, the RDA agreed to allow the State’s Department of Cultural & Community Engagement (C&CE) to continue using the existing warehouse structure, parking lot, and small storage shed on site, as their future permanent home is currently under construction near the State Capitol building. A handful of C&CE employees work on site and a historic art collection is housed there. The lease agreement indicates that this arrangement shall remain in place until 1) C&CE can move into the new facility or 2) through the end of 2028, whichever comes first. If the RDA desires to redevelop the property before either of the above milestones are reached, the RDA must work with C&CE to relocate the employees and art to another site that can accommodate their needs. The RDA and C&CE leadership will work together to identify potential locations where the art collection and office can be temporarily located until the new C&CE facilities at the State Capitol are completed, anticipated in Fall 2026. Attachment B – Proposed Project Renderings SALT LAKE CITY CORPORATION SWORN STATEMENT SUPPORTING CLOSURE OF MEETING I, ____________________, acted as the presiding member of the Redevelopment Agency of Salt Lake City, which met on ________________________ in an electronic meeting pursuant to Salt Lake City Proclamation. Appropriate notice was given of the Redevelopment Agency meeting as required by §52-4-202. A quorum of the Council was present at the meeting and voted by at least a two-thirds vote, as detailed in the minutes of the open meeting, to close a portion of the meeting to discuss the following: §52-4-205(l)(a) discussion of the character, professional competence, or physical or mental health of an individual; §52 -4-205(1)(b) strategy sessions to discuss collective bargaining; §52-4-205(l)(c) strategy sessions to discuss pending or reasonably imminent litigation; §52-4-205(l)(d) strategy sessions to discuss the purchase, exchange, or lease of real property, including any form of a water right or water shares, if public discussion of the transaction would: (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; §52-4-205(l)(e) 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) if the public body previously gave public notice that the property would be offered for sale; and (iii) the terms of the sale are publicly disclosed before the public body approves the sale; §52-4-205(1)(f) discussion regarding deployment of security personnel, devices, or systems; and §52-4-205(1)(g) 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. Other, described as follows: _____________________________________________________________ The content of the closed portion of the Council meeting was restricted to a discussion of the matter(s) for which the meeting was closed. With regard to the closed meeting, the following was publicly announced and recorded, and entered on the minutes of the open meeting at which the closed meeting was approved: (a)the reason or reasons for holding the closed meeting; (b)the location where the closed meeting will be held; and (c)the vote of each member of the public body either for or against the motion to hold the closed meeting. The recording and any minutes of the closed meeting will include: (a)the date, time, and place of the meeting; (b)the names of members Present and Absent; and (c)the names of all others present except where such disclosure would infringe on the confidentiality necessary to fulfill the original purpose of closing the meeting. Pursuant to §52-4-206(6), a sworn statement is required to close a meeting under §52-4-205(1)(a) or (f), but a record by tape recording or detailed minutes is not required; and Pursuant to §52-4-206(1), a record by tape recording and/or detailed written minutes is required for a meeting closed under §52-4-205(1)(b),(c),(d),(e),and (g): A record was not made. A record was made by: : Electronic recording Detailed written minutes I hereby swear or affirm under penalty of perjury that the above information is true and correct to the best of my knowledge. Presiding Member Date of Signature January 9, 2024 Alejandro Puy Alejandro Puy (Jan 10, 2024 12:02 MST)01/10/2024 RDA 1-9-24 Sworn Statement Final Audit Report 2024-01-10 Created:2024-01-10 By:STEPHANIE ELLIOTT (stephanie.elliott@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAAZEpMF7eLCVnEoNgPEgtA9bdxP3st98zX "RDA 1-9-24 Sworn Statement" History Document created by STEPHANIE ELLIOTT (stephanie.elliott@slcgov.com) 2024-01-10 - 6:35:48 PM GMT Document emailed to alejandro.puy@slcgov.com for signature 2024-01-10 - 6:39:43 PM GMT Email viewed by alejandro.puy@slcgov.com 2024-01-10 - 6:42:47 PM GMT Signer alejandro.puy@slcgov.com entered name at signing as Alejandro Puy 2024-01-10 - 7:02:02 PM GMT Document e-signed by Alejandro Puy (alejandro.puy@slcgov.com) Signature Date: 2024-01-10 - 7:02:04 PM GMT - Time Source: server Agreement completed. 2024-01-10 - 7:02:04 PM GMT