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HomeMy WebLinkAbout06/11/2024 - Meeting Materials    Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA June 11, 2024 Tuesday 1:00 PM Council Work Room 451 South State Street, Room 326 Salt Lake City, UT  84111 SLCRDA.com BOARD MEMBERS: Alejandro Puy, Chair Darin Mano, Vice Chair Victoria Petro Chris Wharton Eva Lopez Chavez Dan Dugan Sarah Young 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: 10:16:58 Comments:A.   1.General Comments to the Board ~ 1:00 p.m.  5 min. The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to the 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: 1.Resolution: RDA Budget Amendment No.4 for Fiscal Year 2023-24 -  - The Board will accept public comment on a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes adjustments to budgets based on actual property tax increment received to satisfy obligations under state law, interlocal agreements with other taxing entities, reimbursement agreements with private property owners, and additional funding for agency operations and the Ballpark NEXT redevelopment strategy project.  C.Redevelopment Agency Business - The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Approval of Minutes ~ 1:05 p.m.  5 min. The Board will approve the meeting minutes of April 16, 2024, and May 14, 2024. 2.Resolution: RDA Budget Amendment No.4 for Fiscal Year 2023- 24 ~ 1:10 p.m.  10 min. The Board will consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes adjustments to budgets based on actual property tax increment received to satisfy obligations under state law, interlocal agreements with other taxing entities, reimbursement agreements with private property owners, and additional funding for agency operations and the Ballpark NEXT redevelopment strategy project.    3.Resolution: Northwest Quadrant Tax Increment Reimbursement Agreement Follow-up ~ 1:20 p.m.  20 min. The Board will receive a follow-up briefing about and, consider adopting a resolution that would approve a Tax Increment Reimbursement Agreement with NWQ, LLC for infrastructure and property improvements that advance the goals of the community reinvestment area. Up to 13 planned improvement projects are identified as eligible for post-performance reimbursement. The projects include a mix of system-wide improvements benefiting the broader area, such as constructing public roadways, and project-specific improvements benefiting a particular private property development, such as solar panels on a warehouse roof.  4.Resolution: Amendment to Housing Development Loan Funding Allocations for The Catherine ~ 1:40 p.m.  20 min. The Board will receive a briefing about and consider adopting a resolution that would amend the recent Housing Development Loan Program (HDLP) loan to The Catherine (Phase 1 and Phase 2) project at approximately 1881 West North Temple. The amendments would also include a conditional waiver of the 30-year deed restriction that is standard in HDLP loans and would require the Developer pay an above-market interest rate on the loan if the project does not progress as planned within two years. The project is a 372-unit development that would provide studio to three-bedroom rental apartments at 41-60% Average Median Income (AMI). It received $1.1 million in the most recent HDLP allocation in March 2024. 5.Resolution: USA Climbing Property Disposition at Approximately 310 South 500 West ~ 2:00 p.m.  20 min. The Board will receive a briefing and consider approving a resolution that would authorize the ground lease rate and terms for USA Climbing’s Headquarters and National 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. 6.Redevelopment Agency Budget for Fiscal Year 2024-25 Follow-up ~ 2:20 p.m.  30 min. The Board will receive a follow-up briefing about the proposed budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2024-25.  For more information visit tinyurl.com/SLCFY25. 7.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. 8.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: •Staffing updates; and •Scheduling Items.  9.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:   1.Informational: Pre-Disposition and Lessee Selection Report for Property Assemblage at 310 South 500 West in the Rio Grande District Written Briefing  - The Board will receive a written briefing about plans for the disposition of the property located at approximately 310 South 500 West. This item is related to a proposed ground lease to accommodate the development of a USA Climbing 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. Adjournment   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 12:00 p.m. on Friday, June 7, 2024, 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. ERIN MENDENHALL Mayor RDA BOARD TRANSMITTAL MARY BETH THOMPSON Chief Financial Officer Date Received: 04/30/2024 Mayor Erin Mendenhall, Executive Director Date sent to Council: 04/30/2024 TO:Salt Lake City RDA Board DATE: April 30, 2024 Alejandro Puy, RDA Chair FROM:Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Director SUBJECT:RDA Budget Amendment #4, FY 2023-24 SPONSOR:NA STAFF CONTACT: Danny Walz (801) 535-7209 or Mary Beth Thompson (801) 535-6403 or Greg Cleary (801) 535-6394 or Mike Burns (801) 535-6461 or Erin Cunningham (801) 535-7246 DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: The Administration recommends that subsequent to a public hearing, the RDA Board adopt the following amendment to the FY 2023-24 adopted budget. BUDGET IMPACT: The Fourth Amendment identifies appropriations for Agency operations and projects across multiple funds. REVENUE EXPENSE RDA FUND $ 8,780,203.00 $ 7,294,792.00 TOTAL $ 8,780,203.00 $ 7,924,792.00 DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 Erin Mendenhall (Apr 30, 2024 14:31 MDT) EXECUTIVE SUMMARY: The purpose of the briefing is to provide final budget proposals for the Fourth Amendment (“Amendment”). Mostly driven by a $7.7 million revenue increase in tax increment received over budget, the proposed budget expenditure changes are fall into two categories: 1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or contractual obligations or other expenses related to Agency operations: a. Taxing Entity Payments increased by $1,588,111. b. Tax Increment Reimbursements increased by $1,019,916. c. Primary Housing Contributions (not including School District Family & Workforce Housing Requirements) increased by $589,124. d. Agency Operations Fund Contributions increased by $790,676. e. Debt Service and Other Contractual Obligations increased by $530,435. f. Agency Operations Expenses increased by $228,117. 2. Discretionary expenses that may fall into the following types: a. Transition Holding Account program funds to be allocated to the next fiscal year’s budget would total $3,056,265. b. Appropriations for programs and projects recommended by the Agency: i. State Street Fund | Infrastructure and Studies Program 1. Ballpark NEXT Redevelopment Strategy project would increase by $415,000. The staff memo, included below, outlines greater details of project reallocations, and provides additional staff analysis. ATTACHMENTS: A. RDA Budget Amendment #3 Resolution B. Budget Amendment #3 Staff Memo C. Budget Amendment Summary PUBLIC PROCESS: Public Hearing 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO Fourth Budget Amendment for Fiscal Year 2023-2024 RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2023-2024. WHEREAS, on June 13, 2023, the Redevelopment Agency (RDA) Board of Directors (Board) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2023, and ending June 30, 2024, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's final annual budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this resolution is to amend the final annual budget of the RDA, as approved, ratified and finalized by the Board on June 13, 2023. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the annual budget of the RDA. 3. Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder, which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this day of , 2024, to be effective upon adoption. , Chair Approved as to form: Salt Lake City Attorney’s Office Allison Parks 2 The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting Erin Mendenhall, Executive Director Attest: City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] Contingent Appropriation and Notes Fiscal Year 2023-24 RDA Budget Amendment #4 Administration Proposed Board Approved Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One-time FTEs Section A: New Items 1 Tax Increment Revenue Central Business District $2,621,013.00 1 Tax Increment Revenue Block 70 $304,764.00 1 Tax Increment Revenue Depot District $649,230.00 1 Tax Increment Revenue Granary District $253,977.00 1 Tax Increment Revenue North Temple $504,760.00 1 Tax Increment Revenue North Temple Viaduct $284,199.00 1 Tax Increment Revenue Stadler Rail $16,694.00 1 Tax Increment Revenue 9-Line $317,508.00 1 Tax Increment Revenue State Street $1,329,972.00 1 Tax Increment Revenue Northwest Quadrant $1,052,539.00 1 Tax Increment Revenue Block 67 North $358,599.00 2 Transfer In Primary Housing $589,124.00 2 Transfer Out Depot District $129,846.00 2 Transfer Out Granary District $50,795.00 2 Transfer Out North Temple $100,952.00 2 Transfer Out Stadler Rail $1,669.00 2 Transfer Out 9-Line $31,751.00 2 Transfer Out State Street $132,997.00 2 Transfer Out Northwest Quadrant $105,254.00 2 Transfer Out Block 67 North $35,860.00 3 Transfer In Agency Operations $790,676.00 3 Transfer Out Central Business District $262,102.00 3 Transfer Out Depot District $97,385.00 3 Transfer Out Granary District $38,096.00 3 Transfer Out North Temple $126,150.00 3 Transfer Out North Temple Viaduct $4,263.00 3 Transfer Out Stadler Rail $835.00 3 Transfer Out 9-Line $5,663.00 3 Transfer Out State Street $132,998.00 3 Transfer Out Northwest Quadrant $105,254.00 3 Transfer Out Block 67 North $17,930.00 4 Charges and Services Agency Operations $153,117.00 4 Operation and Maintenance Agency Operations $75,000.00 5 Debt Service and Contractual Obligations North Temple $27,766.00 5 Debt Service and Contractual Obligations North Temple Viaduct $279,936.00 5 Debt Service and Contractual Obligations Block 67 North $35,860.00 5 Debt Service and Contractual Obligations Primary Housing $81,619.00 5 Debt Service and Contractual Obligations Northwest Quadrant $105,254.00 6 Transfer out Central Business District $(292,852.00) 6 Transfer In Block 70 $(292,852.00) 7 Taxing Entity Payments Central Business District $1,572,608.00 7 Taxing Entity Payments Block 70 $11,912.00 7 Taxing Entity Payments 9-Line $3,591.00 8 TI reimbursements Stadler Rail $14,190.00 8 TI reimbursements Northwest Quadrant $736,777.00 8 TI reimbursements Block 67 North $268,949.00 9 Transition Holding Accout Central Business District $786,303.00 9 Transition Holding Accout Depot District $421,999.00 9 Transition Holding Accout Granary District $165,086.00 9 Transition Holding Accout North Temple $249,892.00 9 Transition Holding Accout 9-Line $276,503.00 9 Transition Holding Accout State Street $648,977.00 9 Transition Holding Accout Primary Housing $507,505.00 10 Infrastructire Study State Street $415,000.00 Section B: Grants for Existing Staff Resourc Section C: Grants for New Staff Resources Section D: Housekeeping Section E: Grants Requiring No New Staff R Section F: Donations - Section G: Board Consent Agenda -- Grant Section I: Board Added Items Total of Budget Amendment Items -0 -- Total by Fund, Budget Amendment #4: Redevelopment Agency Central Business District 2,621,013.00 2,328,161.00 - Redevelopment Agency Block 70 11,912.00 11,912.00 Redevelopment Agency Depot District 649,230.00 649,230.00 Redevelopment Agency Granary District 253,977.00 253,977.00 Redevelopment Agency North Temple 504,760.00 504,760.00 Redevelopment Agency North Temple Viaduct 284,199.00 284,199.00 Redevelopment Agency Stadler Rail 16,694.00 16,694.00 Redevelopment Agency 9-Line 317,508.00 317,508.00 Redevelopment Agency State Street 1,329,972.00 1,329,972.00 Redevelopment Agency Northwest Quadrant 1,052,539.00 1,052,539.00 Redevelopment Agency Block 67 North 358,599.00 358,599.00 Redevelopment Agency Primary Housing 589,124.00 589,124.00 Redevelopment Agency Secondary Housing -- Redevelopment Agency Housing Development Fund -- Redevelopment Agency Westside Community Initiative -- Redevelopment Agency Program Income Fund -- Redevelopment Agency Revolving Loan Fund --- Redevelopment Agency Agency Operations 790,676.00 228,117.00 - - Total of Budget Amendment Items 8,780,203.00 7,924,792.00 --- Current Year Budget Summary, provided for infor FY 2023-24 Budget, Including Budget Amen Total Revenue RDA BA #1 Total RDA BA #2 Total RDA BA #3 Total RDA BA #4 Total Total To-Date Redevelopment Agency 80,803,841 -6,476,014 --$8,780,203.00 74,327,827 Total of Budget Amendment Items 80,803,841 -6,476,014 --74,327,827 Total Expense RDA BA #1 Total RDA BA #2 Total RDA BA #3 Total RDA BA #4 Total Total To-Date Redevelopment Agency 80,803,841 -6,476,014 --$7,924,792.00 74,327,827 Total of Budget Amendment Items 80,803,841 -6,476,014 --74,327,827 Certification Budget Manager Deputy Director, City Council/RDA Board MAYOR ERIN MENDENHALL Executive Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DANNY WALZ Director DATE: April 26, 2024 PREPARED BY: Erin Cunningham, Financial Analyst RE: RDA Budget Amendment #4, FY 2023-2024 REQUESTED ACTION: Discuss and consider the adoption of the proposed Fourth Amendment to the Annual RDA Budget for Fiscal Year 2024. BUDGET IMPACTS: The Fourth Amendment identifies appropriations for Agency operations and projects across multiple funds. EXECUTIVE SUMMARY: The purpose of the briefing is to provide final budget proposals for the Fourth Amendment (“Amendment”). Mostly driven by a $7.7 million revenue increase in tax increment received over budget, the proposed budget expenditure changes are fall into two categories: 1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or contractual obligations or other expenses related to Agency operations: a. Taxing Entity Payments increased by $1,588,111. b. Tax Increment Reimbursements increased by $1,019,916. c. Primary Housing Contributions (not including School District Family & Workforce Housing Requirements) increased by $589,124. d. Agency Operations Fund Contributions increased by $790,676. e. Debt Service and Other Contractual Obligations increased by $530,435. f. Agency Operations Expenses increased by $228,117. 2. Discretionary expenses that may fall into the following types: a. Transition Holding Account program funds to be allocated to the next fiscal year’s budget would total $3,056,265. b. Appropriations for programs and projects recommended by the Agency: i. State Street Fund | Infrastructure and Studies Program 1. Ballpark NEXT Redevelopment Strategy project would increase by $415,000. 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 ANALYSIS & ISSUES: This Budget Amendment outlines changes to multiple funds within the Agency's budget for Fiscal Year 2024. The final tax increment distribution from the County totaled $53,093,492, surpassing our initial budget by $7,693,255. As a result, adjustments are necessary for legally mandated expenses, including payments to taxing entities and contributions from Project Area funds to the Primary Housing and Agency Operations funds, as well as other contractual obligations. While Agency Operations expenses are not legally mandated, they are necessary to maintain Agency operations. Beyond these obligated expenses, Staff is proposing discretionary appropriations. If this budget amendment is approved, it would allocate $3,056,265 across various funds to the Transition Holding Account program for use in the Fiscal Year 2025 Budget. Additionally, Staff recommends adding $415,000 to the Infrastructure Studies and Planning program, within the State Street project area fund for the Ballpark NEXT Redevelopment Strategy project. Revenue & Other Sources Adjustments Revenue & Other Source Changes by Project Area Funds All project areas have experienced higher than anticipated tax increment revenues. Notably, the Central Business District, State Street, and Northwest Quadrant have led this increase. The Central Business District alone saw an increase of $2,621,013 over the projected budget, signaling a rebound from the decline experienced over the past few years. State Street and Northwest Quadrant also contributed significant amounts with increases of $1,329,972 and $1,052,539 respectively. Collectively, these three areas have driven a substantial portion of the overall increase, contributing to the total tax increment rise of $7,693,255, which represents about 65% of the increase. In prior years, funds were transferred from the Central Business District Fund to the Block 70 Fund to serve as reserves for debt service. With the tax increment revenue for Block 70 above the budgeted amount, there is less need to draw upon these reserves for debt payments. Revenue Description Fund FY24 Budget Change FY24 BA4 Tax Increment Central Business District 24,644,694 2,621,013 27,265,707 Block 70 1,829,228 304,764 2,133,992 Depot District 5,422,435 649,230 6,071,665 Granary District 1,103,309 253,977 1,357,286 North Temple 1,008,715 504,760 1,513,475 North Temple Viaduct 2,774,419 284,199 3,058,618 Stadler Rail 141,297 16,694 157,991 9 Line 2,653,781 317,508 2,971,289 State Street 4,423,811 1,329,972 5,753,783 Northwest Quadrant 1,398,548 1,052,539 2,451,087 Block 67 North 0 358,599 358,599 Tax Increment Total 45,400,237 7,693,255 53,093,492 Transfer from CBD Eccles Debt Service Reserve Block 70 747,501 (292,852)454,649 Account Total 46,147,738 7,400,403 53,548,141 Revenue & Other Source Changes by Housing & Agency Operations Funds The Primary Housing and Agency Operations funds are supported by revenue from project area funds. The Primary Housing Fund is used to manage the Agency's legally required affordable housing contributions. Contributions to the Agency Operations Fund are largely determined by set percentages in agreements with taxing entities. Due to the increase in tax increment received from the project areas, there have been increased allocations to these two funds. The Primary Housing Fund revenue budget will increase by $589,124, bringing the new total to $2,957,760. Similarly, the Agency Operations Fund experienced an addition of $790,676, resulting in a revised revenue budget of $5,219,338. Fund Revenue Description FY24 Budget Change FY24 BA4 Primary Housing Transfer In from Depot District 1,084,487 129,846 1,214,333 Transfer In from Granary District 220,662 50,795 271,457 Transfer In from North Temple 201,743 100,952 302,695 Transfer In from Stadler Rail 14,130 1,669 15,799 Transfer In from 9-Line 265,378 31,751 297,129 Transfer In from Block 67 North 0 35,860 35,860 Transfer In from State Street 442,381 132,997 575,378 Transfer In from Northwest Quadrant 139,855 105,254 245,109 Primary Housing Total 2,368,636 589,124 2,957,760 Agency Operations Transfer In from Central Business District 2,464,469 262,102 2,726,571 Transfer In from Depot District 813,365 97,385 910,750 Transfer In from Granary District 165,496 38,096 203,592 Transfer In from North Temple 100,872 126,150 227,022 Transfer In from North Temple Viaduct 41,616 4,263 45,879 Transfer In from Stadler Rail 7,065 835 7,900 Transfer In from 9-Line 253,543 5,663 259,206 Transfer In from State Street 442,381 132,998 575,379 Transfer In from Northwest Quadrant 139,855 105,254 245,109 Transfer In from Block 67 North 0 17,930 17,930 Agency Operations Total 4,428,662 790,676 5,219,338 Total 6,797,298 1,379,800 8,177,098 Obligated Expenses & Other Uses Adjustments Taxing Entity Payments The Agency receives 100% of the tax increment from certain project areas and is obligated to reimburse specific percentages back to the taxing entities based on interlocal agreements or initial project setups. Reflecting these requirements, the budget amendment for Fiscal Year 2024 shows a combined increase of $1,588,111, which adjusts the total appropriations for tax entity payments from the initial $10,501,863 to $12,089,974. Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Central Business RDA-FY24-CBD-Taxing Entity Payments-CBD 9,621,707 1,572,608 11,194,315 District Block 70 RDA-FY24-B70-Taxing Entity Payments-B70 548,768 11,912 560,680 9 Line RDA-FY24-9L-Taxing Entity Payments-9L 331,388 3,591 334,979 Total 10,501,863 1,588,111 12,089,974 Tax Increment Reimbursement Agreements The Agency has entered into tax increment reimbursement agreements in some project areas, wherein developers are reimbursed for certain improvement costs through the tax increment resulting from increased property values Fund FY24 Appropriation FY24 Budget Change FY24 BA4 tied to their projects. The budget adjustments in the table result in a total change of $1,019,916, updating the combined budget for tax increment reimbursements to $2,119,002 across the listed project areas. Quadrant North Primary Housing Fund Contributions In compliance with Utah Code 17C, the Agency sets aside a minimum of 10% of the tax increment from most project area funds specifically for affordable housing. Furthermore, for the 9 Line and State Street project areas, the interlocal agreements with the School District stipulate that these contributions must be directed specifically towards family and workforce housing. The required budget for these allocations has changed, as shown in the provided image, with an increase of $589,124, adjusting the total budget to $2,957,760. District Fund-DD District Fund-GD Temple Fund-NT Fund-SR Fund-9L Required Family & Workforce Housing-9L Fund-SS Required Family & Workforce Housing-SS Quadrant Fund-NWQ North Fund-B67N Agency Operations Expenses The Agency Operations Fund receives a specified percentage of the tax increment from each project area, determined by interlocal agreements with the taxing entities involved. This year, the fund has seen an increase in contributions totaling $790,676. However, the Staff recommends increasing expenses by only $228,117 to address rising operating costs. The surplus of $562,559 would be added to the fund balance to act as a financial buffer to help bridge the gap between the expiration of the Depot District and Granary District project areas and the ramp- up of tax increment collection in newer project areas. The Depot District will expire after Fiscal Year 2025 (Tax Year 2024), and the Granary District will follow a year later. Agency Operations RDA-FY24-OPS-Administrative Fees-NPA 1,000,000 0 1,000,000 RDA-FY24-OPS-Charges & Services-NPA 296,883 153,117 450,000 Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Stadler Rail RDA-FY24-SR-TI Reimbursements-SR 120,102 14,190 134,292 Northwest RDA-FY24-NWQ-TI Reimbursements-NWQ 978,984 736,777 1,715,761 Block 67 RDA-FY24-B67N-TI Reimbursements-B67N 0 268,949 268,949 Total 1,099,086 1,019,916 2,119,002 Depot RDA-FY24-DD-Internal Transfers - Primary Housing 1,084,487 129,846 1,214,333 Granary RDA-FY24-GD-Internal Transfers - Primary Housing 220,662 50,795 271,457 North RDA-FY24-NT-Internal Transfers - Primary Housing 201,743 100,952 302,695 Stadler Rail RDA-FY24-SR-Internal Transfers - Primary Housing 14,130 1,669 15,799 9 Line RDA-FY24-9L-Internal Transfers - Primary Housing 144,592 18,642 163,234 RDA-FY24-9L-Internal Transfers - School District 120,786 13,109 133,895 State Street RDA-FY24-SS-Internal Transfers - Primary Housing 182,405 64,487 246,892 RDA-FY24-SS-Internal Transfers - School District 259,976 68,510 328,486 Northwest RDA-FY24-NWQ-Internal Transfers - Primary Housing 139,855 105,254 245,109 Block 67 RDA-FY24-B67N-Internal Transfers - Primary Housing 0 35,860 35,860 Total 2,368,636 589,124 2,957,760 Fund FY24 Appropriation Project FY24 Budget Change FY24 BA4 RDA-FY24-OPS-Operating & Maintenance-NPA 375,000 75,000 450,000 RDA-FY24-OPS-RDA Personnel-NPA 2,756,779 0 2,756,779 Total 4,428,662 228,117 4,656,779 Debt Service and Other Contractual Obligations In addition to the obligated expenses above, the Agency has debt service and other contractual obligations that are impacted by the increased tax increment revenue as follows: •North Temple School Construction Reserves: A project has been established as a reserve fund per an interlocal agreement with the School District, mandating the Agency to earmark portions of tax increment for the construction of a prospective school. The total change of $27,766 will result in an amended budget of $98,376. •North Temple Viaduct Debt Service: The Agency created the North Temple Viaduct project area to mitigate the debt incurred by the City from bond issuance for infrastructure improvements in 2012. Initially, the tax increment wasn't enough to cover debt service, requiring General Fund assistance. Apart from a small percentage of increment transferred to the Agency Operations Fund, the remainder of the increment is transferred to the City’s General Fund to facilitate debt service payments. The total change of $279,936 will result in an amended budget of $3,012,739. •Northwest Quadrant Shared Costs Reserve: A project has been established as a reserve fund per the interlocal agreement with the City to cover shared costs. This project will utilize tax increment financing for redevelopment activities that benefit the entire project area, are system-wide, or that advantage multiple property owners or parcels. The increase of $105,254 will result in a total of $245,108 added to the reserve this fiscal year. •Japantown & the Block 67 North Interlocal Agreement: Per the interlocal agreement with the City, the Agency is obliged to direct 10% of the tax increment toward the Japantown neighborhood. Although the agreement mandates support for Japantown, it does not require a specific project. Agency staff recommends these funds be designated to the RDA Arts & Culture Program, earmarking $35,860 for a new Japantown Art project. The Agency also expects to request additional funding for this project in the coming budget cycle. •School District Required Family & Workforce Housing: As previously mentioned, the funds from the 9 Line and State Street contributions are transferred into the Primary Housing Fund and expended from there. These funds can be used with other allocations, such as the Housing Development Loan Program's Notice of Funding Availability (NOFA) but are tracked separately to comply with the interlocal agreement with the School District. The recent increase in contributions from these project area funds totals $81,619, bringing the overall amount to $462,381. Improvements-NT Construction Reserves Improvements-NWQ B67N North RDA-FY24-NT- PRJ-000086 North Temple Infrastructure Temple School 70,610 27,766 98,376 North RDA-FY24-NTV-Salt Temple Lake City Debt Service- 2,732,803 Viaduct NTV 279,936 3,012,739 Northwest RDA-FY24-NWQ-PRJ-000087 NWQ Quadrant Infrastructure Shared Costs Reserve 139,854 105,254 245,108 Block 67 RDA-FY24-B67N-RDA New Project: Japantown North Arts & Culture Program-Art 0 35,860 35,860 Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Primary Housing RDA-FY24-1H-School District Required Family & Workforce Housing-NPA 380,762 81,619 462,381 Discretionary Expenses & Other Uses Adjustments Transition Holding Accounts During the last fiscal year, the Agency established the Transition Holding Account program to manage surplus revenue not earmarked for obligated expenses. Rather than allocating these funds within this amendment, the Agency carries them over to the next fiscal year’s budget for simpler reconciliation by the Board. This timing aligns with the simultaneous presentation of the Fiscal Year 2025 budget and the final amendment for the current year. Staff recommends appropriating the additional $3,056,265 expected in the following funds in the next fiscal year. Central District District Temple Housing Ballpark NEXT Redevelopment Strategy Project Following the 2024 baseball season, the Salt Lake Bees baseball team will be moving to a new park in South Jordan. This has created an opportunity for the Ballpark site and adjacent parking lot, located at 1300 South and West Temple (approx. 13.5 acres) to be re-envisioned and potentially redeveloped. The Agency facilitated the Ballpark NEXT Design Competition and followed up with a Community Visioning Process which elevated a set of Guiding Principles to integrate into the next steps. With the Fiscal Year 2024 Budget, the Board approved $300,000 for Ballpark Planning within the Ballpark NEXT Redevelopment Strategy project. An initial $150,000 was used to hire a consultant to create a Design Framework, leaving $150,000 remaining in the project budget. Upon the approval of a straw poll in the December 2023 Board meeting, the Agency released a Request for Proposals (RFP) for a specialized Ballpark NEXT Design Consultant Team to develop preferred concepts and an overall implementation plan for the Ballpark Site. The consultant's proposed total for the scope of work was $537,150, prompting the Agency to request an additional $415,000 to cover the scope and maintain a contingency of $27,850 for potential change orders. Initially, funds were to come from the Strategic Intervention program, but given the increase in tax increment received in the State Street project area, Staff is now recommending appropriating $415,000 of those funds to add to the Infrastructure Studies and Planning program to fund this project. Note that that the Ballpark Site is located outside the State Street Project Area however any activity outside a project area determined by the board to benefit the State Street Project Area is an allowable use of agency funds per Sections: 17C-1-409 and 17C-1-102. Total 3,324,029 530,435 3,854,464 Business RDA-FY24-CBD-Transition Holding Account-CBD District 0 786,303 786,303 Depot RDA-FY24-DD-Transition Holding Account-DD 0 421,999 421,999 Granary RDA-FY24-GD-Transition Holding Account-GD 0 165,086 165,086 North RDA-FY24-NT-Transition Holding Account-NT 0 249,892 249,892 9 Line RDA-FY24-9L-Transition Holding Account-9L 0 276,503 276,503 State Street RDA-FY24-SS-Transition Holding Account-SS 0 648,977 648,977 Primary RDA-FY24-1H-Transition Holding Account-NPA 0 507,505 507,505 Total 0 3,056,265 3,056,265 Deliverables will include a comprehensive site plan that identifies recommended right-of-way alignments, development pads, building massing and scale, land use mix, and programming to support residents (“Design Framework”). Primary goals of the Design Consultant RFP are to: •Ensure that the community’s Ballpark NEXT Guiding Principles are incorporated as a foundational element of the Design Framework. •Utilize a team of specialists to advise the Agency on the implementation of human centered design and programming, impact investment opportunities available through the Legacy Fund, and how to best incorporate these opportunities into the Project. •Incorporate additional community representative input checkpoints along the way to inform key design and programming decisions. •Incorporate the multiple moving pieces of the Project into a thoughtful Design Framework that includes existing conditions, neighborhood opportunities, and aligns with existing engagement efforts. •Create a collaborative concept to inform the future RFP for a development team (or teams) to implement the project. Approval of this request will result in a total project budget of $715,000, as outlined in the table below. Should the Board not approve the additional appropriation to this project, Staff recommends increasing the Transition Holding Account program appropriation. Fund FY24 Appropriation Project FY24 Budget Change FY24 BA4 State Street RDA-FY24-SS- Infrastructure Studies and PRJ-000051 RDA - Ballpark Next 300,000 415,000 715,000 Planning-SS Redevelopment Strategy 300,000 415,000 715,000 PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2023-2024 Budget. 2. Approval of the Fiscal Year 2023-2024 Budget Amendment #1. 3. Approval of the Fiscal Year 2023-2024 Budget Amendment #2. 4. *Pending* Approval of the Fiscal Year 2023-2024 Budget Amendment #3. ATTACHMENTS: 1. Supplemental Slides of Expenditures Key Changes by Fund R E D E V E L O P M E N T A G E N C Y F I S C A L Y E A R 2 0 2 3 - 2 0 2 4 B U D G E T A M E N D M E N T # 4 Total Increase in Tax Increment Revenue $7,693,255 Central Business District 2,621,013 State Street 1,329,972 Northwest Quadrant 1,052,539 Depot District 649,230 North Temple 504,760 Block 67 North 358,599 9 Line 317,508 Block 70 304,764 North Temple Viaduct 284,199 Granary District 253,977 Stadler Rail 16,694 Tax Increment Revenue Changes Summary of Expense Changes Total Project Area Funds Changes 292,852 415,000 Tax Incrment Increase Eccles Bond Debt Service Reserves Reduction Remaining Tax Increment Revenue Obligated Project Area Expenses Ballpark NEXT Redevelopment Strategy Transition Holding Accounts Agency Operations Fund Changes 790,676 16 53 37 ,,15 15 79 57652,,050509 562,559 Incoming Transfers Charges & Services Operating & Maintenance Fund Balance Note: Obligated Internal Transfers are the required transfers from Project Area Funds to Primary Housing and Agency Operations, which are based on a percentage of tax increment. Obligated Internal Transfers Transition Holding Account School District Required Family & Workforce Housing Incoming Transfers 507,50581,619589,124 Primary Housing Fund Changes 2,548,760 7,400,4037,693,255 4,436,643 Central Business District State Street Primary Housing Depot District 9 Line North Temple Granary District Transition Holding Account Program Total Transition Holding Account Funds Included in Fiscal Year 2025 Budget $3,056,265 786,303 648,977 507,505 421,999 276,503 249,892 165,086 Project: Ballpark NEXT Redevelopment Strategy Total Increase in Tax Increment Revenue in the State Street Project Area $1,329,972 Remaining to Transition Holding Account $648,977 Additional Project Funding Request $415,000 Changes in Obligated Expenses $265,995 E x p e n s e k e y c h a n g e s b y F u n d Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Programs Administration Assessment-CBD Programming-CBD Administration Fund-CBD Debt Service-CBD Payments-CBD CBD Project CBD Planning Programs Account-CBD Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Central Business District Obligation RDA Operations RDA-FY24-CBD-Gallivan -372,775 0 0 0 0 372,775 RDA-FY24-CBD-Gallivan - Management & Maintenance Assessment-CBD 573,975 0 0 0 0 573,975 RDA-FY24-CBD-Gallivan -250,000 0 0 0 0 250,000 RDA-FY24-CBD-Internal Transfers -2,464,469 0 0 0 262,102 2,726,571 RDA-FY24-CBD-Internal Transfers -8,477,030 0 0 0 0 8,477,030 RDA-FY24-CBD-Property Management and Maintenance-CBD 1,075,000 0 0 0 0 1,075,000 RDA-FY24-CBD-Taxing Entity 9,621,707 0 0 0 1,572,608 11,194,315 RDA-FY24-CBD-TI Reimbursements-1,300,000 0 0 0 0 1,300,000 Discretionary Capital Reserves RDA-FY24-CBD-Gallivan - Planning-PRJ-000061 RDA - Gallivan Plaza 509,738 0 0 0 0 509,738 RDA Operations RDA-FY24-CBD-Transition Holding 0 0 0 0 786,303 786,303 24,644,694 0 0 0 2,621,013 27,265,707 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation Capital Reserves Project RDA-FY24-B70-Commercial Relocation-B70 PRJ-000080 Bennion Jewelers Relocation 100,000 0 0 0 0 100,000 RDA-FY24-B70-Eccles - Maintenance & PRJ-000084 Regent Street Repairs-B70 Parking Structure Reserves 100,000 0 0 0 0 100,000 PRJ-000085 Regent Street Maintenance 80,000 0 0 0 0 80,000 RDA-FY24-B70-RDA Arts & Culture Program-B70 PRJ-000082 Eccles Fundraising Fulfillment 125,000 0 0 0 0 125,000 PRJ-000083 Eccles Theater- Operating Reserve for Ancillary Spaces 475,000 0 0 0 0 475,000 RDA Operations Programs RDA-FY24-B70-Eccles Debt Service- B70 9,599,991 0 0 0 0 9,599,991 RDA-FY24-B70-Taxing Entity Payments- B70 548,768 0 0 0 11,912 560,680 Discretionary Capital Reserves Project RDA-FY24-B70-RDA Arts & Culture Program-B70 PRJ-000081 Regent Street Event Programming 25,000 0 0 0 0 25,000 11,053,759 0 0 0 11,912 11,065,671 Key Changes: Block 70 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-DD-Internal Transfers - Administration Fund-DD 813,365 0 0 0 97,385 910,750 RDA-FY24-DD-Internal Transfers - Primary Housing Fund-DD 1,084,487 0 0 0 129,846 1,214,333 RDA-FY24-DD-Property Management and Maintenance-DD 150,000 0 0 0 0 150,000 Discretionary RDA Capital Reserves Programs RDA-FY24-DD-Commercial Assistance Reserves-DD 500,000 0 0 0 0 500,000 RDA-FY24-DD-Infrastructure Improvements-DD 3,680,056 0 (3,680,056)0 (3,680,056)0 Capital Reserves Project RDA-FY24-DD-Infrastructure Improvements-DD New Project: Depot District Infrastructure, Design, Construction, & Site Work 0 0 3,680,056 0 3,680,056 3,680,056 RDA Operations Programs RDA-FY24-DD-Internal Transfers - Secondary Housing Fund-DD 1,000,000 0 0 0 0 1,000,000 RDA-FY24-DD-Transition Holding Account-DD 0 0 0 0 421,999 421,999 7,227,908 0 0 0 649,230 7,877,138 Key Changes: Depot District Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-GD-Internal Transfers - Administration Fund-GD 165,496 0 0 0 38,096 203,592 RDA-FY24-GD-Internal Transfers - Primary Housing Fund-GD 220,662 0 0 0 50,795 271,457 RDA-FY24-GD-Property Management and Maintenance-GD 5,000 0 0 0 0 5,000 Discretionary RDA Capital Reserves Programs RDA-FY24-GD-Commercial Assistance Reserves-GD 1,003,435 0 0 0 0 1,003,435 RDA Operations Programs RDA-FY24-GD-Transition Holding Account-GD 0 0 0 0 165,086 165,086 1,394,593 0 0 0 253,977 1,648,570 Key Changes: Granary District Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation Capital Reserves RDA-FY24-NT-Infrastructure PRJ-000086 North Temple Project Improvements-NT School Construction Reserves 70,610 0 0 0 27,766 98,376 RDA Operations RDA-FY24-NT-Internal Transfers - Programs Administration Fund-NT 100,872 0 0 0 126,150 227,022 RDA-FY24-NT-Internal Transfers - Primary Housing Fund-NT 201,743 0 0 0 100,952 302,695 Discretionary RDA Capital Reserves RDA-FY24-NT-Commercial Assistance Programs Reserves-NT 543,277 0 0 (325,959)(325,959)217,318 RDA-FY24-NT-Infrastructure Improvements-NT 100,000 0 0 0 0 100,000 RDA-FY24-NT-Strategic Intervention-NT 285,490 0 0 (285,490)(285,490)0 Capital Reserves RDA-FY24-NT-Infrastructure PRJ-000022 RDA - City Creek Project Improvements-NT Daylighting Design Plan Budget 50,000 0 0 0 0 50,000 RDA-FY24-NT-Strategic Intervention-NT New Project: Whipple Property Acquisition 0 0 0 611,449 611,449 611,449 RDA Operations RDA-FY24-NT-Transition Holding Programs Account-NT 0 0 0 0 249,892 249,892 1,351,992 0 0 0 504,760 1,856,752 Key Changes: North Temple Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-NTV-Internal Transfers - Administration Fund-NTV 41,616 0 0 0 4,263 45,879 RDA-FY24-NTV-Salt Lake City Debt Service-NTV 2,732,803 0 0 0 279,936 3,012,739 2,774,419 0 0 0 284,199 3,058,618 Key Changes: North Temple Viaduct Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-SR-Internal Transfers - Administration Fund-SR 7,065 0 0 0 835 7,900 RDA-FY24-SR-Internal Transfers - Primary Housing Fund-SR 14,130 0 0 0 1,669 15,799 RDA-FY24-SR-TI Reimbursements-SR 120,102 0 0 0 14,190 134,292 141,297 0 0 0 16,694 157,991 Key Changes: Stadler Rail Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-9L-Internal Transfers - Administration Fund-9L 253,543 0 0 0 5,663 259,206 RDA-FY24-9L-Internal Transfers - Primary Housing Fund-9L 144,592 0 0 0 18,642 163,234 RDA-FY24-9L-Internal Transfers - School District Required Family & Workforce Housing-9L 120,786 0 0 0 13,109 133,895 RDA-FY24-9L-Taxing Entity Payments- 9L 331,388 0 0 0 3,591 334,979 Discretionary Capital Reserves Project RDA-FY24-9L-RDA Arts & Culture Program-9L New Project: 9-Line Public Art Project 150,000 0 0 0 0 150,000 RDA Capital Reserves Programs RDA-FY24-9L-Accessory Dwelling Unit Program-9L 1,455,680 0 0 0 0 1,455,680 RDA-FY24-9L-Commercial Assistance Reserves-9L 500,000 0 0 0 0 500,000 RDA-FY24-9L-Strategic Intervention-9L 500,000 0 0 0 0 500,000 RDA Operations Programs RDA-FY24-9L-Transition Holding Account-9L 0 0 0 0 276,503 276,503 3,455,989 0 0 0 317,508 3,773,497 Key Changes: 9 Line Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-SS-Internal Transfers - Administration Fund-SS 442,381 0 0 0 132,998 575,379 RDA-FY24-SS-Internal Transfers - Primary Housing Fund-SS 182,405 0 0 0 64,487 246,892 RDA-FY24-SS-Internal Transfers - School District Required Family & Workforce Housing-SS 259,976 0 0 0 68,510 328,486 Discretionary Capital Reserves Project RDA-FY24-SS-Infrastructure Studies and Planning-SS PRJ-000051 RDA - Ballpark Next Redevelopment Strategy 300,000 0 0 0 415,000 715,000 RDA Capital Reserves Programs RDA-FY24-SS-Commercial Assistance Reserves-SS 1,239,049 0 0 0 0 1,239,049 RDA-FY24-SS-Strategic Intervention-SS 3,364,709 0 0 0 0 3,364,709 RDA Operations Programs RDA-FY24-SS-Transition Holding Account-SS 0 0 0 0 648,977 648,977 5,788,520 0 0 0 1,329,972 7,118,492 Key Changes: State Street Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation Capital Reserves Project RDA-FY24-NWQ-Infrastructure Improvements-NWQ PRJ-000087 NWQ Shared Costs Reserve 139,854 0 0 0 105,254 245,108 RDA Operations Programs RDA-FY24-NWQ-Internal Transfers - Administration Fund-NWQ 139,855 0 0 0 105,254 245,109 RDA-FY24-NWQ-Internal Transfers - Primary Housing Fund-NWQ 139,855 0 0 0 105,254 245,109 RDA-FY24-NWQ-TI Reimbursements- NWQ 978,984 0 0 0 736,777 1,715,761 1,398,548 0 0 0 1,052,539 2,451,087 Key Changes: Northwest Quadrant Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Program-B67N Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Block 67 North Obligation Capital Reserves Project RDA-FY24-B67N-RDA Arts & Culture New Project: Japantown Art 0 0 0 0 35,860 35,860 RDA Operations Programs RDA-FY24-B67N-Internal Transfers - Administration Fund-B67N 0 0 0 0 17,930 17,930 RDA-FY24-B67N-Internal Transfers - Primary Housing Fund-B67N 0 0 0 0 35,860 35,860 RDA-FY24-B67N-TI Reimbursements- B67N 0 0 0 0 268,949 268,949 0 0 0 0 358,599 358,599 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Capital Reserves Programs RDA-FY24-1H-School District Required Family & Workforce Housing-NPA 380,762 0 0 0 81,619 462,381 Discretionary Capital Reserves Project RDA-FY24-1H-Other Housing-NPA PRJ-000088 Sunday-Anderson Senior Center - SLCO Partnership 1,013,820 0 0 0 0 1,013,820 RDA Capital Reserves Programs RDA-FY24-1H-HDLP - Competitive-NPA 1,000,000 0 0 0 0 1,000,000 RDA Operations Programs RDA-FY24-1H-Transition Holding Account-NPA 0 0 0 0 507,505 507,505 2,394,582 0 0 0 589,124 2,983,706 Key Changes: Primary Housing Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Discretionary Capital Reserves Project RDA-FY24-2H-Other Housing-NPA PRJ-000088 Sunday-Anderson Senior Center - SLCO Partnership 1,000,000 0 0 0 0 1,000,000 1,000,000 0 0 0 0 1,000,000 Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Secondary Housing Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Discretionary Capital Reserves Project RDA-FY24-HDF-Shared Equity Housing- NPA PRJ-000089 Neighborworks for Shared Equity Workforce 1,400,000 0 0 0 0 1,400,000 RDA Capital Reserves Programs RDA-FY24-HDF-Accessory Dwelling Unit Program-NPA 1,000,000 0 0 0 0 1,000,000 RDA-FY24-HDF-HDLP - Competitive- NPA 7,836,967 (6,476,014)0 0 (6,476,014)1,360,953 10,236,967 (6,476,014)0 0 (6,476,014)3,760,953 Key Changes: Housing Development Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Discretionary Capital Reserves Project RDA-FY24-WCI-Shared Equity Housing- NPA PRJ-000089 Neighborworks for Shared Equity Workforce 700,000 0 0 0 0 700,000 RDA Capital Reserves Programs RDA-FY24-WCI-Wealth Building Housing Opportunities-NPA 1,135,469 0 0 0 0 1,135,469 1,835,469 0 0 0 0 1,835,469 Key Changes: Westside Community Initiative Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Obligation RDA Operations Programs RDA-FY24-PIF-Operating & Maintenance-NPA 330,000 0 0 0 0 330,000 Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Program Income Fund Discretionary Capital Reserves Project RDA-FY24-PIF-Gallivan - Maintenance & Repairs-NPA PRJ-000057 Gallivan Repairs 214,692 0 0 0 0 214,692 RDA-FY24-PIF-Infrastructure Improvements-NPA PRJ-000078 Sugar House DI Demolition 550,000 0 0 0 0 550,000 RDA Operations Programs RDA-FY24-PIF-Charges & Services-NPA 355,000 0 0 0 0 355,000 1,449,692 0 0 0 0 1,449,692 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Discretionary RDA Capital Reserves RDA-FY24-RLF-Commercial Revolving Programs Loans-NPA 226,750 0 0 0 0 226,750 226,750 0 0 0 0 226,750 Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Revolving Loan Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-OPS-Administrative Fees- NPA 1,000,000 0 0 0 0 1,000,000 RDA-FY24-OPS-Charges & Services- NPA 296,883 0 0 0 153,117 450,000 RDA-FY24-OPS-Operating & Maintenance-NPA 375,000 0 0 0 75,000 450,000 RDA-FY24-OPS-RDA Personnel-NPA 2,756,779 0 0 0 0 2,756,779 4,428,662 0 0 0 228,117 4,656,779 Key Changes: Agency Operations Fund A d d i t i o n a l i n f o r m a t i o n Appropriation Cost Center Fiscal Year Fund Program Region Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments, projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags: Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center. Fiscal Year: The original year the funds were appropriated. Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be monitored. Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal, policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing, Commercial, Infrastructure, and Operations programs. Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which means this Worktag may not always be used. Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix. Workday Worktags & the RDA Budget All project budgets must pull from appropriations. Once project budgets have been approved by the Board, the Agency can move forward with spending. Project budgets may have multiple appropriations. Project Budgets Appropriations for programs that carry forward each year. For instance, in the Housing Development Loan Program, a set amount is allocated for loans. Staff will request additional Board approval to use these funds for specific loan projects. Funds not awarded to projects roll forward to the next year, unless reappropriated by the Board. Capital Reserves Appropriations Annual appropriations for operational expenses. Considered approved to spend when appropriated. If not spent or encumbered by the end of the fiscal year, drops to fund balance. Typically, these would be for RDA operating expenses. Occasionally may be associated with a project budget (for example, an office remodel). Operations Appropriations Each appropriation supports either the operations of the Agency or projects associated with its various programs. Appropriations & Project Budgets Project Area Funds Must be used within the boundaries of the project area, except for money transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legally obligated reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) •West Capitol Hill (WCH) Note: Region acronyms are the same as project area acronyms. If there is “NPA” noted in an appropriation, it stands for “Non-Project Area.” Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Received transfers in from other funds to fund the Agency’s operational expenses. Redevelopment Agency Funds PENDING MINUTES – NOT APPROVED The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City met on Tuesday, April 16, 2024. The following Board Members were present: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Darin Mano, Eva Lopez Chavez Present Agency Leadership: Mayor Erin Mendenhall, Danny Walz – Director, Cara Lindsley – Deputy Director Present City Staff: Katie Lewis – City Attorney, Allison Parks – City Attorney, Cindy Lou Trishman – City Recorder, Stephanie Elliott – Minutes & Records Clerk, Scott Corpany – Staff Assistant, Cindy Gust-Jenson – Council Executive Director, Allison Rowland – Council Staff, Ben Luedtke – Public Policy Analyst, Tracy Tran – Project Manager, Lauren Parisi – Senior Project Manager – Redevelopment Agency, Ashley Ogden – Senior Project Manager – Redevelopment Agency, Marcus Lee – Project Coordinator - Redevelopment Agency, Lucas Goodrich – Project Coordinator - Redevelopment Agency, Lynn Jacobs – Transportation Engineer III Director Chair Puy presided at and conducted the meeting. The meeting was called to order at 1:02 pm MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 1 A.Comments: 1.General Comments to the Board ~ 1:00 p.m. 5 min. The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to the 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.) Nathan Strain spoke on the Rio Grande District Vision and Implementation Plan and urged the Council to work with the State to redesign the railroad tracks to create more safety. Aidan Goddard spoke on the Green Loop, Tracks Expansion, and the need to implement these plans to create the option to live car-free in the City.   B.Public Hearing - individuals may speak to the Board once per public hearing topic for two minutes, however written comments are always accepted: 1.Resolution: RDA Budget Amendment No.2 for Fiscal Year 2023- 24 ~ 2:00 p.m.  5 min. The Board will accept public comment for a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes re-appropriating funding for several previous projects in the Depot District and Station Center areas. The changes consolidate appropriations to align with the City's new Workday financial system structure. Most of the funding is for public infrastructure improvements in Station Center which is located between 200 South to 400 South and 500 West to 600 West. Ben Luedtke introduced the item. There was no public comment. C.Redevelopment Agency Business - The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Approval of Minutes ~ 1:05 p.m.  5 min. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 2 The Board will approve the meeting minutes of February 13, 2024. Motion: Moved by Director Dugan, seconded by Director Mano to approve the Minutes of February 13, 2024 AYE: Daniel Dugan, Sarah Young, Alejandro Puy, Eva Lopez Chavez, Darin Mano ABSENT: Victoria Petro, Chris Wharton Final Result: 5 – 0 Pass 2.Resolution: Annual Housing Funding Priorities Fiscal Year 2024-25 ~ 1:10 p.m.  20 min. The Board will receive a briefing about, and consider a resolution that would adopt the Affordable Housing Funding Priorities for Fiscal Year 2024-25. These Funding Priorities guide the upcoming fiscal year’s housing activities including the requirements of the competitive affordable housing Notice of Funding Availability (NOFA). Motion: Moved by Director Dugan, seconded by Director Mano to Adopt Resolution 03 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Eva Lopez Chavez, Darin Mano Final Result: 7 – 0 Pass Allison Rowland, Lauren Parisi, and Tracy Tran presented the following information: •Housing allocation funds policy and strategy •Recommended annual housing priorities ◦Wealth building opportunities ◦Affordable family housing with amenities for children ◦Deeply affordable housing ◦Neighborhood commercial and services ◦Expand Opportunity •High-opportunity areas around the City •Housing funds allocations •Housing activities Directors discussed: •Limitations of other housing projects that fall outside the current priority area •Accessory Dwelling Units (ADU) RFP prioritization •Timeline to make decisions on which projects to fund •HUD’s definition of “family” in policy was nonrestrictive ◦Anyone who declared they were a family was treated as a family ◦The intent of “Amenities for Families” such as having a playground or other children's opportunities •Homeownership programs and opportunities •Policy consideration of programs suggested •Mixed homeownership and rental opportunities MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 3 Director Puy requested regular updates on these items and more plans to address issues ahead of time. 3.Informational: Rio Grande District Vision and Implementation Plan ~ 1:30 p.m.  30 min. The Board will receive a briefing about the Rio Grande District Vision & Implementation Plan. The two-block area is located in the Depot District Project Area between 500 to 600 West and 200 to 400 South. The RDA owns approximately eleven acres in the Rio Grande District and an additional four acres near 600 West and 100 South. The Rio Grande District is envisioned to have new and reconstructed streets, public open spaces, upgraded utilities to allow for taller building heights, a shared parking structure, and a mix of land uses supporting transit-oriented development. The public hearing will be held before item C4 at 2:00 p.m. Cara Lindsey, Ashley Ogden, and Marcus Lee presented the following information: •Name change from Station Center to Rio Grande District •Vision Statement – Places community wellness at the heart of the framework •Design Moves ◦Establish compact, walkable blocks ◦Restore the site for all living things ◦Enable low carbon mobility ◦Champion the Green Loop •Design Standards and Guidelines ◦Public Realm ◾300 South Festival Street ◾Arts Campus Alley ◾500 West Green Loop ◦Mobility Network ◾Active Transportation ( wide sidewalks, crosswalks, bike connection to other streets) ◾Shared (mass) Parking ◾Land Use and Urban Form ◾Primary Gateway to the City ◾High-Density Development ◾Residential, Commercial Mixed-Used ◾Ground Floor Uses ◾Festival Streets and Retail Zones ◾Parkfront Zones ◾Building Heights and Density Request for Increase ◾Sustainable Design ◾Sewer, Storm Water, and other reusable sources •Community Benefits •Implementation ◦RDA Role ◾Primary Land Owner ◾Infrastructure Developer MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 4 ◾Programming Manager ◾District Curator ◦Governance Framework Matrix ◾Phase 1: Start-Up ◾Phase 2: Stabilization ◾Phase 3: Long Term Growth ◾Next Steps ◾Align Neighborhood Stakeholders ◾Conduct Business Planning ◾Consider the Development of Rio Grande District Policies •Next Steps ◦Publish the Vision and Implementation Plan on the project web page ◦Zoning Text Amendment to allow for taller building heights in G-MU ◦HRTZ Application ◦Develop construction drawings for public improvements ◦Developer RFP for north block sites Directors discussed: •The wall separating the location connecting the project's west side •Concerns over the delegation of authority to an outside body ◦The RDA was not looking to set up an entity with an outside governance ◦Agency focused plan that maintained RDA long-term ownership Director Puy requested more clarification on the “Governance Structure” to ensure alignment with their goals before approving that piece. Cindy Gust-Jenson advised Directors to review the plan and give feedback to the RDA, suggested moving it to a future RDA meeting for further discussion and formal consideration, and expressed the need for Directors to be involved in this project and the next steps. •Katie Lewis agreed with Cindy Cust-Jenson on the next steps of the plan. Directors requested a solution to approve the Request for Purchase without finalizing the Governance Structure. Straw Poll: 7-0 In favor of RDA publishing the Rio Grande District Plan Request for Purchase without the Governance Structure included. All Council Members present were in favor. 4.Resolution: RDA Budget Amendment No.2 for Fiscal Year 2023- 24 ~ 2:05 p.m.  10 min. The Board will consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes re-appropriating funding for several previous projects in the MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 5 Depot District and Station Center areas. The changes consolidate appropriations to align with the City's new Workday financial system structure. Most of the funding is for public infrastructure improvements in Station Center which is located between 200 South to 400 South and 500 West to 600 West. Motion: Moved by Director Petro, seconded by Director Wharton to adopt Resolution 04 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Eva Lopez Chavez, Darin Mano Final Result: 7 – 0 Pass 5.Resolution: RDA Budget Amendment No.3 for Fiscal Year 2023- 24 ~ 2:15 p.m.  20 min. The Board will receive a briefing about a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes several reallocations related to funding a property acquisition in the North Temple project area, among other items. Ben Luedtke briefed the Council regarding the item. 6.Resolution: Renaming of the Redevelopment Agency of Salt Lake City ~ 2:35 p.m.  20 min. The Board will receive a briefing about, and consider adopting a resolution that would rename the Redevelopment Agency of Salt Lake City to the Salt Lake City Community Reinvestment Agency. The new name would align with changes to state law governing such agencies. Danny Walz presented the following information: •RDA felt the name change would reflect the new goals of the agency •Title 17C – Governing Code of Redevelopment Agencies •Mission Statement ◦Economic Opportunities ◦Neighborhood Vibrancy ◦Equity & Inclusion •Programs and Policies ◦Housing Development Loan Program ◦Sustainable Development Policy ◦Real Property Disposition Policy ◦Art Policy ◦Commercial Assistance Program ◦Equitable + Inclusive Development Work Plan •Redevelopment Agency of Salt Lake City name change to Salt Lake City Community Reinvestment Agency MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 6 •Advisory Committee name changed to Advisory Community Agency Motion: Moved by Director Dugan, seconded by Director Lopez Chavez to adopt Resolution 05 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Eva Lopez Chavez, Darin Mano ABSENT: Alejandro Puy Final Result: 6 – 0 Pass 7.Informational: Gallivan Center 20-Year Plaza Plan ~ 2:55 p.m.  20 min. The Board will receive a briefing about developing a Gallivan Center 20-Year Plaza Plan. The interim update includes potential design changes to the plaza, project prioritization and stakeholder feedback. The plan will provide recommendations for future management and operations, programming, and capital improvements. Lucas Goodrich and Jesse Allen and Erika Chmielewski (GSBS Architects Consultants) presented the following information: •Guiding Principles ◦Center Stage ◦6-sided and 4-season activation ◦Third-Place •Restructuring of activating the edges versus the center •Food and Beverage Anchor •Ice Rink future 8.Informational: Sugar House RDA Properties and S-Line Streetcar Extension Updates ~ 3:15 p.m.  20 min. The Board will receive a briefing about extending the S-Line Streetcar one block from McClelland Street to Highland Drive and potential impacts to the adjacent property owned by the RDA. In 2021 the Utah Legislature approved $12 million for the project. Tracy Tran, Jon Larsen, Lynn Jacobs, and Marcus Bennett (UTA Project Manager) presented the following information: •Help improve S-line and carrier into Sugar House •S-Line extension up to Highland Drive •Schedule •Property Impacts and shifting of property ◦Public property leased to UTA •RDA Properties Owned MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 7 9.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. No report from the Executive Director. 10.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: •Request for Proposal Status; •Project Milestones; and •Scheduling Items. Dany Walz gave the following announcements: •The County rescinded the Sunday Anderson Senior Center Awarded Request for Purchase (RFP) due to a procurement conflict of interest •Bicycle Collective new hub location in the Granary District was completed •Closed on the $2.1 million affordable housing loan for Victory Heights 1 and 2, converting an old medical office into 88 units of affordable housing 11.Report of the Chair and Vice Chair TENTATIVE  5 min. Report of the Chair and Vice Chair. No report from the Chair or Vice Chair.   D.Written Briefings – the following briefings are informational in nature and require no action of the Board. Additional information can be provided to the Board upon request: NONE.   E.Consent – the following items are listed for consideration by the Board and can be discussed individually upon request. A motion to approve the consent agenda is approving all of the following items: 1.Set Date – Resolution: Budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2024-25 -  - MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 8 The Board will set the dates of Tuesday, May 21, 2024 and Tuesday, June 4, 2024 at 7 p.m. to accept public comment and consider approving a resolution adopting the final budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2024-25. 2.Set Date – Resolution: RDA Budget Amendment No.3 for Fiscal Year 2023- 24 -  - The Board will set the date of Tuesday, May 14, 2024 at 2 p.m. to accept public comment and consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes several reallocations related to funding a property acquisition in the North Temple project area, among other items. Motion: Moved by Director Petro, seconded by Director Dugan to approve the Consent Agenda. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Eva Lopez Chavez, Darin Mano Final Result: 7 – 0 Pass 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. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 9 Adjournment   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.   MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 10 Meeting adjourned at 3:30 pm Minutes Approved: _______________________________ Redevelopment Agency Chair Alejandro Puy _______________________________ City Recorder Please refer to Meeting Materials (available at https://data.slc.gov by selecting City Council Meeting Information) for supportive content including electronic recordings and comments submitted prior to or during the meeting. Websites listed within the body of the Minutes may not remain active indefinitely. This document along with the digital recording constitutes the official minutes of the Salt Lake City Redevelopment Agency meeting held Tuesday, April 16, 2024 and is not intended to serve as a full transcript. Please refer to the electronic recording for entire content pursuant to Utah Code §52-4-203.   MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, April 16, 2024 11 PENDING MINUTES – NOT APPROVED The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City met on Tuesday, May 14, 2024. The following Board Members were present: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Darin Mano, Eva Lopez Chavez Present Agency Leadership: Danny Walz – Director Present City Staff: Katherine Lewis – City Attorney, Cindy Lou Trishman – City Recorder, Stephanie Elliott – Minutes & Records Clerk, Taylor Hill – Constituent Liaison/Policy Analyst, Scott Corpany – Staff Assistant, Ben Luedtke – Public Policy Analyst, Kate Werrett – RDA Project Manager Director Chair Puy presided at and conducted the meeting.   The meeting was called to order at 1:03 pm MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 1 Comments:A.   1.General Comments to the Board ~ 1:00 p.m. 5 min. The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to the 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.) Roger Miller spoke against the sales tax increase to bring the National Hockey League to Salt Lake City.   B.Public Hearing - individuals may speak to the Board once per public hearing topic for two minutes, however written comments are always accepted: 1.Resolution: RDA Budget Amendment No.3 for Fiscal Year 2023-24 -  - The Board will accept public comment for a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes several reallocations related to funding a property acquisition in the North Temple project area, among other items. Ben Luedtke introduced the item. There was no public comment. Motion: Moved by Director Dugan, seconded by Director Petro to close the public hearing and defer action to later in the RDA Meeting. ABSTAIN: Victoria Petro, Daniel Dugan, Sarah Young, Alejandro Puy, Eva Lopez Chavez, Darin Mano ABSENT: Chris Wharton Final Result: 0 – 0 Pass C.Redevelopment Agency Business - The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Approval of Minutes ~ 1:05 p.m.  5 min. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 2 The Board will approve the meeting minutes of March 19, 2024.   Motion: Moved by Director Dugan, seconded by Director Petro to approve the meeting minutes. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Alejandro Puy, Eva Lopez Chavez, Darin Mano ABSENT: Chris Wharton Final Result: 6 – 0 Pass 2.Resolution: RDA Budget Amendment No.3 for Fiscal Year 2023- 24 ~ 1:10 p.m.  10 min. The Board will consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes several reallocations related to funding a property acquisition in the North Temple project area, among other items.   Motion: Moved by Director Mano, seconded by Director Dugan to adopt Resolution 06 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Alejandro Puy, Eva Lopez Chavez, Darin Mano ABSENT: Chris Wharton Final Result: 6 – 0 Pass 3.Resolution: RDA Budget Amendment No.4 for Fiscal Year 2023- 24 ~ 1:20 p.m.  20 min. The Board will receive a briefing about a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes adjustments to budgets based on actual property tax increment received to satisfy obligations under state law, interlocal agreements with other taxing entities, reimbursement agreements with private property owners, and additional funding for agency operations and the Ballpark NEXT redevelopment strategy project.   Ben Luedtke and Danny Walz presented the item and discussed the Budget requests with the Board. Straw Poll: Support for Budget Amendment No. 4. All Directors present were in favor. 4. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 3 Resolution: Authorizing Use of State Street Community Reinvestment Area Funds Outside of the Area Boundaries for Ballpark Properties ~ 1:40 p.m.  20 min. The Board will receive a briefing about, and consider adopting a resolution that would determine the use of the Project Area Funds on the Ballpark Properties will benefit the State Street Project Area. The Ballpark site at approximately 77 West 1300 South, along with multiple adjacent properties, are not included within but are surrounded by the Community Reinvestment Area (CRA) boundaries. The resolution would provide an ongoing authorization to use Board appropriated project area funds from the State Street CRA for the Ballpark properties. There is a corresponding appropriation in Budget Amendment No.4 for the Ballpark NEXT redevelopment strategy project.   Danny Walz presented the following to the Board:​​​​​ •Initially, the properties were not included in the Ballpark Area plan •Development of the Ballpark area benefiting from the addition of these properties •Staff requested the Board’s approval of the fund usage on the Ballpark Properties Motion: Moved by Director Wharton, seconded by Director Mano to adopt Resolution 07 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Darin Mano, Eva Lopez Chavez Final Result: 7 – 0 Pass 5.Resolution: Northwest Quadrant Tax Increment Reimbursement Agreement ~ 2:00 p.m.  20 min. The Board will receive a briefing about and, consider adopting a resolution that would approve a Tax Increment Reimbursement Agreement with NWQ, LLC for infrastructure and property improvements that advance the goals of the community reinvestment area. Up to 13 planned improvement projects are identified as eligible for post-performance reimbursement. The projects include a mix of system-wide improvements benefiting the broader area, such as constructing public roadways, and project-specific improvements benefiting a particular private property development, such as solar panels on a warehouse roof.   Danny Walz and Kate Werrett presented the following to the Board: •Master Plan established in August 2016 •Zoning and Overlay District established 2016-2018 •Community Reinvestment Area (CRA) established January 2018 •Development agreement in January 2018 •Northwest Quadrant Community Reinvestment Area (NWQ LLC Developer) Tax Increment (TI) Reimbursement Policy established in August 2018 •NWQ LLC TI Reimbursement Agreement entered in May 2020 •Tax increment reimbursement for light industrial warehouse development •Infrastructure improvements ◦Soil remediation MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 4 ◦Access to utilities and renewable energy investments •Creation of potential increased assessed value within the underutilized area •New development projected to create 7,300 new jobs 6.Straw Poll – Releasing State Street Strategic Intervention Funds for Property Acquisition ~ 2:20 p.m.  10 min. The Board will consider a straw poll to release State Street Intervention Funds for property acquisition.   Discussion for this item was held during a closed session. Straw Poll: Support for releasing State Street strategic intervention funds for property acquisition. All Directors present were in favor. 7.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.   No report or announcements from the Executive Director. 8.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: •Front Loan Update; and •Scheduling Items.   Danny Walz gave an update on the Front Climbing Gym loan and financial information, stated there was little risk found for repayment and the loan was approved. 9.Report of the Chair and Vice Chair TENTATIVE  5 min. Report of the Chair and Vice Chair.   No report from the Chair or 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: 1. Informational: Redevelopment Agency Semi-Annual Property Report - MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 5  - The Board will receive a written briefing of all Tier 1 and Tier 2 properties owned by the RDA, as per the Land Disposition Policy. The May 2024 report includes the description, address, parcel ID, size, zoning and tier category of each property. In addition, the report details approximate acquisition date, current category of disposition, interim use and proposed permanent use for each property. Director Mano requested a report combining the RDA and City real estate holdings to show a complete list of both entities' properties. •Jennifer Bruno stated Council Staff would coordinate with the Mayor’s Office to gather a comprehensive list between Community and Neighborhoods (CAN) and the RDA   E.Consent – the following items are listed for consideration by the Board and can be discussed individually upon request. A motion to approve the consent agenda is approving all of the following items: 1.Set Date – Resolution: RDA Budget Amendment No.4 for Fiscal Year 2023- 24 -  - The Board will set the date of Tuesday, June 11, 2024 at 1 p.m. to accept public comment and consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget, including proposed project additions and modifications, and staffing changes. The amendment includes adjustments to budgets based on actual property tax increment received to satisfy obligations under state law, interlocal agreements with other taxing entities, reimbursement agreements with private property owners, and additional funding for agency operations and the Ballpark NEXT redevelopment strategy project. Motion: Moved by Director Mano, seconded by Director Wharton to approve. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Eva Lopez Chavez, Darin Mano Final Result: 7 – 0 Pass 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: MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 6 (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. Motion: Moved by Board Member Dugan, seconded by Board Member Wharton to enter into Closed Session for the purposes of strategy sessions to discuss the purchase, exchange, or lease of real property, and attorney-client matters. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Eva Lopez Chavez, Darin Mano Final Result: 7 – 0 Pass Closed Session Started at 1:55 pm Held via Zoom and in the Work Session Room (location) Board Members in Attendance: Board Members Petro, Puy, Wharton, Lopez Chavez, Mano, Dugan, and Young. City/RDA Staff in Attendance: Megan Yuill, Lindsey Nikola, Danny Walz, Katherine Lewis, Allison Parks, Jennifer Bruno, Lehua Weaver, Ben Luedtke, Allison Rowland, Whitney Fernandez Gonzalez, Amanda Greenland, Kathryn Hackman, Jim Sirrine, Austin Taylor, Marcus Lee, Tracy Tran, Lucas Goodrich, Makena Hawley, Kate Werrett, Lauren Parisi, Matthew Brown, and Cindy Lou Trishman. Closed Session ended at 2:32 pm Motion: Moved by Board Member Dugan, seconded by Board Member Lopez Chavez to exit Closed Session. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Eva Lopez Chavez, Darin Mano Final Result: 7 – 0 Pass MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 7 Adjournment  G.   MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 8 Meeting adjourned at 2:51 pm Minutes Approved: _______________________________ Redevelopment Agency Chair Alejandro Puy _______________________________ City Recorder Please refer to Meeting Materials (available at https://data.slc.gov by selecting City Council Meeting Information) for supportive content including electronic recordings and comments submitted prior to or during the meeting. Websites listed within the body of the Minutes may not remain active indefinitely. This document along with the digital recording constitutes the official minutes of the Salt Lake City Redevelopment Agency meeting held Tuesday, May 14, 2024 and is not intended to serve as a full transcript. Please refer to the electronic recording for entire content pursuant to Utah Code §52-4-203.   MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, May 14, 2024 9 ERIN MENDENHALL Mayor RDA BOARD TRANSMITTAL MARY BETH THOMPSON Chief Financial Officer Date Received: 04/30/2024 Mayor Erin Mendenhall, Executive Director Date sent to Council: 04/30/2024 TO:Salt Lake City RDA Board DATE: April 30, 2024 Alejandro Puy, RDA Chair FROM:Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Director SUBJECT:RDA Budget Amendment #4, FY 2023-24 SPONSOR:NA STAFF CONTACT: Danny Walz (801) 535-7209 or Mary Beth Thompson (801) 535-6403 or Greg Cleary (801) 535-6394 or Mike Burns (801) 535-6461 or Erin Cunningham (801) 535-7246 DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: The Administration recommends that subsequent to a public hearing, the RDA Board adopt the following amendment to the FY 2023-24 adopted budget. BUDGET IMPACT: The Fourth Amendment identifies appropriations for Agency operations and projects across multiple funds. REVENUE EXPENSE RDA FUND $ 8,780,203.00 $ 7,294,792.00 TOTAL $ 8,780,203.00 $ 7,924,792.00 DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 Erin Mendenhall (Apr 30, 2024 14:31 MDT) EXECUTIVE SUMMARY: The purpose of the briefing is to provide final budget proposals for the Fourth Amendment (“Amendment”). Mostly driven by a $7.7 million revenue increase in tax increment received over budget, the proposed budget expenditure changes are fall into two categories: 1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or contractual obligations or other expenses related to Agency operations: a. Taxing Entity Payments increased by $1,588,111. b. Tax Increment Reimbursements increased by $1,019,916. c. Primary Housing Contributions (not including School District Family & Workforce Housing Requirements) increased by $589,124. d. Agency Operations Fund Contributions increased by $790,676. e. Debt Service and Other Contractual Obligations increased by $530,435. f. Agency Operations Expenses increased by $228,117. 2. Discretionary expenses that may fall into the following types: a. Transition Holding Account program funds to be allocated to the next fiscal year’s budget would total $3,056,265. b. Appropriations for programs and projects recommended by the Agency: i. State Street Fund | Infrastructure and Studies Program 1. Ballpark NEXT Redevelopment Strategy project would increase by $415,000. The staff memo, included below, outlines greater details of project reallocations, and provides additional staff analysis. ATTACHMENTS: A. RDA Budget Amendment #3 Resolution B. Budget Amendment #3 Staff Memo C. Budget Amendment Summary PUBLIC PROCESS: Public Hearing 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO Fourth Budget Amendment for Fiscal Year 2023-2024 RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2023-2024. WHEREAS, on June 13, 2023, the Redevelopment Agency (RDA) Board of Directors (Board) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2023, and ending June 30, 2024, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's final annual budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this resolution is to amend the final annual budget of the RDA, as approved, ratified and finalized by the Board on June 13, 2023. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the annual budget of the RDA. 3. Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder, which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this day of , 2024, to be effective upon adoption. , Chair Approved as to form: Salt Lake City Attorney’s Office Allison Parks 2 The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting Erin Mendenhall, Executive Director Attest: City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] Contingent Appropriation and Notes Fiscal Year 2023-24 RDA Budget Amendment #4 Administration Proposed Board Approved Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One-time FTEs Section A: New Items 1 Tax Increment Revenue Central Business District $2,621,013.00 1 Tax Increment Revenue Block 70 $304,764.00 1 Tax Increment Revenue Depot District $649,230.00 1 Tax Increment Revenue Granary District $253,977.00 1 Tax Increment Revenue North Temple $504,760.00 1 Tax Increment Revenue North Temple Viaduct $284,199.00 1 Tax Increment Revenue Stadler Rail $16,694.00 1 Tax Increment Revenue 9-Line $317,508.00 1 Tax Increment Revenue State Street $1,329,972.00 1 Tax Increment Revenue Northwest Quadrant $1,052,539.00 1 Tax Increment Revenue Block 67 North $358,599.00 2 Transfer In Primary Housing $589,124.00 2 Transfer Out Depot District $129,846.00 2 Transfer Out Granary District $50,795.00 2 Transfer Out North Temple $100,952.00 2 Transfer Out Stadler Rail $1,669.00 2 Transfer Out 9-Line $31,751.00 2 Transfer Out State Street $132,997.00 2 Transfer Out Northwest Quadrant $105,254.00 2 Transfer Out Block 67 North $35,860.00 3 Transfer In Agency Operations $790,676.00 3 Transfer Out Central Business District $262,102.00 3 Transfer Out Depot District $97,385.00 3 Transfer Out Granary District $38,096.00 3 Transfer Out North Temple $126,150.00 3 Transfer Out North Temple Viaduct $4,263.00 3 Transfer Out Stadler Rail $835.00 3 Transfer Out 9-Line $5,663.00 3 Transfer Out State Street $132,998.00 3 Transfer Out Northwest Quadrant $105,254.00 3 Transfer Out Block 67 North $17,930.00 4 Charges and Services Agency Operations $153,117.00 4 Operation and Maintenance Agency Operations $75,000.00 5 Debt Service and Contractual Obligations North Temple $27,766.00 5 Debt Service and Contractual Obligations North Temple Viaduct $279,936.00 5 Debt Service and Contractual Obligations Block 67 North $35,860.00 5 Debt Service and Contractual Obligations Primary Housing $81,619.00 5 Debt Service and Contractual Obligations Northwest Quadrant $105,254.00 6 Transfer out Central Business District $(292,852.00) 6 Transfer In Block 70 $(292,852.00) 7 Taxing Entity Payments Central Business District $1,572,608.00 7 Taxing Entity Payments Block 70 $11,912.00 7 Taxing Entity Payments 9-Line $3,591.00 8 TI reimbursements Stadler Rail $14,190.00 8 TI reimbursements Northwest Quadrant $736,777.00 8 TI reimbursements Block 67 North $268,949.00 9 Transition Holding Accout Central Business District $786,303.00 9 Transition Holding Accout Depot District $421,999.00 9 Transition Holding Accout Granary District $165,086.00 9 Transition Holding Accout North Temple $249,892.00 9 Transition Holding Accout 9-Line $276,503.00 9 Transition Holding Accout State Street $648,977.00 9 Transition Holding Accout Primary Housing $507,505.00 10 Infrastructire Study State Street $415,000.00 Section B: Grants for Existing Staff Resourc Section C: Grants for New Staff Resources Section D: Housekeeping Section E: Grants Requiring No New Staff R Section F: Donations - Section G: Board Consent Agenda -- Grant Section I: Board Added Items Total of Budget Amendment Items -0 -- Total by Fund, Budget Amendment #4: Redevelopment Agency Central Business District 2,621,013.00 2,328,161.00 - Redevelopment Agency Block 70 11,912.00 11,912.00 Redevelopment Agency Depot District 649,230.00 649,230.00 Redevelopment Agency Granary District 253,977.00 253,977.00 Redevelopment Agency North Temple 504,760.00 504,760.00 Redevelopment Agency North Temple Viaduct 284,199.00 284,199.00 Redevelopment Agency Stadler Rail 16,694.00 16,694.00 Redevelopment Agency 9-Line 317,508.00 317,508.00 Redevelopment Agency State Street 1,329,972.00 1,329,972.00 Redevelopment Agency Northwest Quadrant 1,052,539.00 1,052,539.00 Redevelopment Agency Block 67 North 358,599.00 358,599.00 Redevelopment Agency Primary Housing 589,124.00 589,124.00 Redevelopment Agency Secondary Housing -- Redevelopment Agency Housing Development Fund -- Redevelopment Agency Westside Community Initiative -- Redevelopment Agency Program Income Fund -- Redevelopment Agency Revolving Loan Fund --- Redevelopment Agency Agency Operations 790,676.00 228,117.00 - - Total of Budget Amendment Items 8,780,203.00 7,924,792.00 --- Current Year Budget Summary, provided for infor FY 2023-24 Budget, Including Budget Amen Total Revenue RDA BA #1 Total RDA BA #2 Total RDA BA #3 Total RDA BA #4 Total Total To-Date Redevelopment Agency 80,803,841 -6,476,014 --$8,780,203.00 74,327,827 Total of Budget Amendment Items 80,803,841 -6,476,014 --74,327,827 Total Expense RDA BA #1 Total RDA BA #2 Total RDA BA #3 Total RDA BA #4 Total Total To-Date Redevelopment Agency 80,803,841 -6,476,014 --$7,924,792.00 74,327,827 Total of Budget Amendment Items 80,803,841 -6,476,014 --74,327,827 Certification Budget Manager Deputy Director, City Council/RDA Board MAYOR ERIN MENDENHALL Executive Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DANNY WALZ Director DATE: April 26, 2024 PREPARED BY: Erin Cunningham, Financial Analyst RE: RDA Budget Amendment #4, FY 2023-2024 REQUESTED ACTION: Discuss and consider the adoption of the proposed Fourth Amendment to the Annual RDA Budget for Fiscal Year 2024. BUDGET IMPACTS: The Fourth Amendment identifies appropriations for Agency operations and projects across multiple funds. EXECUTIVE SUMMARY: The purpose of the briefing is to provide final budget proposals for the Fourth Amendment (“Amendment”). Mostly driven by a $7.7 million revenue increase in tax increment received over budget, the proposed budget expenditure changes are fall into two categories: 1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or contractual obligations or other expenses related to Agency operations: a. Taxing Entity Payments increased by $1,588,111. b. Tax Increment Reimbursements increased by $1,019,916. c. Primary Housing Contributions (not including School District Family & Workforce Housing Requirements) increased by $589,124. d. Agency Operations Fund Contributions increased by $790,676. e. Debt Service and Other Contractual Obligations increased by $530,435. f. Agency Operations Expenses increased by $228,117. 2. Discretionary expenses that may fall into the following types: a. Transition Holding Account program funds to be allocated to the next fiscal year’s budget would total $3,056,265. b. Appropriations for programs and projects recommended by the Agency: i. State Street Fund | Infrastructure and Studies Program 1. Ballpark NEXT Redevelopment Strategy project would increase by $415,000. 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 ANALYSIS & ISSUES: This Budget Amendment outlines changes to multiple funds within the Agency's budget for Fiscal Year 2024. The final tax increment distribution from the County totaled $53,093,492, surpassing our initial budget by $7,693,255. As a result, adjustments are necessary for legally mandated expenses, including payments to taxing entities and contributions from Project Area funds to the Primary Housing and Agency Operations funds, as well as other contractual obligations. While Agency Operations expenses are not legally mandated, they are necessary to maintain Agency operations. Beyond these obligated expenses, Staff is proposing discretionary appropriations. If this budget amendment is approved, it would allocate $3,056,265 across various funds to the Transition Holding Account program for use in the Fiscal Year 2025 Budget. Additionally, Staff recommends adding $415,000 to the Infrastructure Studies and Planning program, within the State Street project area fund for the Ballpark NEXT Redevelopment Strategy project. Revenue & Other Sources Adjustments Revenue & Other Source Changes by Project Area Funds All project areas have experienced higher than anticipated tax increment revenues. Notably, the Central Business District, State Street, and Northwest Quadrant have led this increase. The Central Business District alone saw an increase of $2,621,013 over the projected budget, signaling a rebound from the decline experienced over the past few years. State Street and Northwest Quadrant also contributed significant amounts with increases of $1,329,972 and $1,052,539 respectively. Collectively, these three areas have driven a substantial portion of the overall increase, contributing to the total tax increment rise of $7,693,255, which represents about 65% of the increase. In prior years, funds were transferred from the Central Business District Fund to the Block 70 Fund to serve as reserves for debt service. With the tax increment revenue for Block 70 above the budgeted amount, there is less need to draw upon these reserves for debt payments. Revenue Description Fund FY24 Budget Change FY24 BA4 Tax Increment Central Business District 24,644,694 2,621,013 27,265,707 Block 70 1,829,228 304,764 2,133,992 Depot District 5,422,435 649,230 6,071,665 Granary District 1,103,309 253,977 1,357,286 North Temple 1,008,715 504,760 1,513,475 North Temple Viaduct 2,774,419 284,199 3,058,618 Stadler Rail 141,297 16,694 157,991 9 Line 2,653,781 317,508 2,971,289 State Street 4,423,811 1,329,972 5,753,783 Northwest Quadrant 1,398,548 1,052,539 2,451,087 Block 67 North 0 358,599 358,599 Tax Increment Total 45,400,237 7,693,255 53,093,492 Transfer from CBD Eccles Debt Service Reserve Block 70 747,501 (292,852)454,649 Account Total 46,147,738 7,400,403 53,548,141 Revenue & Other Source Changes by Housing & Agency Operations Funds The Primary Housing and Agency Operations funds are supported by revenue from project area funds. The Primary Housing Fund is used to manage the Agency's legally required affordable housing contributions. Contributions to the Agency Operations Fund are largely determined by set percentages in agreements with taxing entities. Due to the increase in tax increment received from the project areas, there have been increased allocations to these two funds. The Primary Housing Fund revenue budget will increase by $589,124, bringing the new total to $2,957,760. Similarly, the Agency Operations Fund experienced an addition of $790,676, resulting in a revised revenue budget of $5,219,338. Fund Revenue Description FY24 Budget Change FY24 BA4 Primary Housing Transfer In from Depot District 1,084,487 129,846 1,214,333 Transfer In from Granary District 220,662 50,795 271,457 Transfer In from North Temple 201,743 100,952 302,695 Transfer In from Stadler Rail 14,130 1,669 15,799 Transfer In from 9-Line 265,378 31,751 297,129 Transfer In from Block 67 North 0 35,860 35,860 Transfer In from State Street 442,381 132,997 575,378 Transfer In from Northwest Quadrant 139,855 105,254 245,109 Primary Housing Total 2,368,636 589,124 2,957,760 Agency Operations Transfer In from Central Business District 2,464,469 262,102 2,726,571 Transfer In from Depot District 813,365 97,385 910,750 Transfer In from Granary District 165,496 38,096 203,592 Transfer In from North Temple 100,872 126,150 227,022 Transfer In from North Temple Viaduct 41,616 4,263 45,879 Transfer In from Stadler Rail 7,065 835 7,900 Transfer In from 9-Line 253,543 5,663 259,206 Transfer In from State Street 442,381 132,998 575,379 Transfer In from Northwest Quadrant 139,855 105,254 245,109 Transfer In from Block 67 North 0 17,930 17,930 Agency Operations Total 4,428,662 790,676 5,219,338 Total 6,797,298 1,379,800 8,177,098 Obligated Expenses & Other Uses Adjustments Taxing Entity Payments The Agency receives 100% of the tax increment from certain project areas and is obligated to reimburse specific percentages back to the taxing entities based on interlocal agreements or initial project setups. Reflecting these requirements, the budget amendment for Fiscal Year 2024 shows a combined increase of $1,588,111, which adjusts the total appropriations for tax entity payments from the initial $10,501,863 to $12,089,974. Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Central Business RDA-FY24-CBD-Taxing Entity Payments-CBD 9,621,707 1,572,608 11,194,315 District Block 70 RDA-FY24-B70-Taxing Entity Payments-B70 548,768 11,912 560,680 9 Line RDA-FY24-9L-Taxing Entity Payments-9L 331,388 3,591 334,979 Total 10,501,863 1,588,111 12,089,974 Tax Increment Reimbursement Agreements The Agency has entered into tax increment reimbursement agreements in some project areas, wherein developers are reimbursed for certain improvement costs through the tax increment resulting from increased property values Fund FY24 Appropriation FY24 Budget Change FY24 BA4 tied to their projects. The budget adjustments in the table result in a total change of $1,019,916, updating the combined budget for tax increment reimbursements to $2,119,002 across the listed project areas. Quadrant North Primary Housing Fund Contributions In compliance with Utah Code 17C, the Agency sets aside a minimum of 10% of the tax increment from most project area funds specifically for affordable housing. Furthermore, for the 9 Line and State Street project areas, the interlocal agreements with the School District stipulate that these contributions must be directed specifically towards family and workforce housing. The required budget for these allocations has changed, as shown in the provided image, with an increase of $589,124, adjusting the total budget to $2,957,760. District Fund-DD District Fund-GD Temple Fund-NT Fund-SR Fund-9L Required Family & Workforce Housing-9L Fund-SS Required Family & Workforce Housing-SS Quadrant Fund-NWQ North Fund-B67N Agency Operations Expenses The Agency Operations Fund receives a specified percentage of the tax increment from each project area, determined by interlocal agreements with the taxing entities involved. This year, the fund has seen an increase in contributions totaling $790,676. However, the Staff recommends increasing expenses by only $228,117 to address rising operating costs. The surplus of $562,559 would be added to the fund balance to act as a financial buffer to help bridge the gap between the expiration of the Depot District and Granary District project areas and the ramp- up of tax increment collection in newer project areas. The Depot District will expire after Fiscal Year 2025 (Tax Year 2024), and the Granary District will follow a year later. Agency Operations RDA-FY24-OPS-Administrative Fees-NPA 1,000,000 0 1,000,000 RDA-FY24-OPS-Charges & Services-NPA 296,883 153,117 450,000 Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Stadler Rail RDA-FY24-SR-TI Reimbursements-SR 120,102 14,190 134,292 Northwest RDA-FY24-NWQ-TI Reimbursements-NWQ 978,984 736,777 1,715,761 Block 67 RDA-FY24-B67N-TI Reimbursements-B67N 0 268,949 268,949 Total 1,099,086 1,019,916 2,119,002 Depot RDA-FY24-DD-Internal Transfers - Primary Housing 1,084,487 129,846 1,214,333 Granary RDA-FY24-GD-Internal Transfers - Primary Housing 220,662 50,795 271,457 North RDA-FY24-NT-Internal Transfers - Primary Housing 201,743 100,952 302,695 Stadler Rail RDA-FY24-SR-Internal Transfers - Primary Housing 14,130 1,669 15,799 9 Line RDA-FY24-9L-Internal Transfers - Primary Housing 144,592 18,642 163,234 RDA-FY24-9L-Internal Transfers - School District 120,786 13,109 133,895 State Street RDA-FY24-SS-Internal Transfers - Primary Housing 182,405 64,487 246,892 RDA-FY24-SS-Internal Transfers - School District 259,976 68,510 328,486 Northwest RDA-FY24-NWQ-Internal Transfers - Primary Housing 139,855 105,254 245,109 Block 67 RDA-FY24-B67N-Internal Transfers - Primary Housing 0 35,860 35,860 Total 2,368,636 589,124 2,957,760 Fund FY24 Appropriation Project FY24 Budget Change FY24 BA4 RDA-FY24-OPS-Operating & Maintenance-NPA 375,000 75,000 450,000 RDA-FY24-OPS-RDA Personnel-NPA 2,756,779 0 2,756,779 Total 4,428,662 228,117 4,656,779 Debt Service and Other Contractual Obligations In addition to the obligated expenses above, the Agency has debt service and other contractual obligations that are impacted by the increased tax increment revenue as follows: •North Temple School Construction Reserves: A project has been established as a reserve fund per an interlocal agreement with the School District, mandating the Agency to earmark portions of tax increment for the construction of a prospective school. The total change of $27,766 will result in an amended budget of $98,376. •North Temple Viaduct Debt Service: The Agency created the North Temple Viaduct project area to mitigate the debt incurred by the City from bond issuance for infrastructure improvements in 2012. Initially, the tax increment wasn't enough to cover debt service, requiring General Fund assistance. Apart from a small percentage of increment transferred to the Agency Operations Fund, the remainder of the increment is transferred to the City’s General Fund to facilitate debt service payments. The total change of $279,936 will result in an amended budget of $3,012,739. •Northwest Quadrant Shared Costs Reserve: A project has been established as a reserve fund per the interlocal agreement with the City to cover shared costs. This project will utilize tax increment financing for redevelopment activities that benefit the entire project area, are system-wide, or that advantage multiple property owners or parcels. The increase of $105,254 will result in a total of $245,108 added to the reserve this fiscal year. •Japantown & the Block 67 North Interlocal Agreement: Per the interlocal agreement with the City, the Agency is obliged to direct 10% of the tax increment toward the Japantown neighborhood. Although the agreement mandates support for Japantown, it does not require a specific project. Agency staff recommends these funds be designated to the RDA Arts & Culture Program, earmarking $35,860 for a new Japantown Art project. The Agency also expects to request additional funding for this project in the coming budget cycle. •School District Required Family & Workforce Housing: As previously mentioned, the funds from the 9 Line and State Street contributions are transferred into the Primary Housing Fund and expended from there. These funds can be used with other allocations, such as the Housing Development Loan Program's Notice of Funding Availability (NOFA) but are tracked separately to comply with the interlocal agreement with the School District. The recent increase in contributions from these project area funds totals $81,619, bringing the overall amount to $462,381. Improvements-NT Construction Reserves Improvements-NWQ B67N North RDA-FY24-NT- PRJ-000086 North Temple Infrastructure Temple School 70,610 27,766 98,376 North RDA-FY24-NTV-Salt Temple Lake City Debt Service- 2,732,803 Viaduct NTV 279,936 3,012,739 Northwest RDA-FY24-NWQ-PRJ-000087 NWQ Quadrant Infrastructure Shared Costs Reserve 139,854 105,254 245,108 Block 67 RDA-FY24-B67N-RDA New Project: Japantown North Arts & Culture Program-Art 0 35,860 35,860 Fund FY24 Appropriation FY24 Budget Change FY24 BA4 Primary Housing RDA-FY24-1H-School District Required Family & Workforce Housing-NPA 380,762 81,619 462,381 Discretionary Expenses & Other Uses Adjustments Transition Holding Accounts During the last fiscal year, the Agency established the Transition Holding Account program to manage surplus revenue not earmarked for obligated expenses. Rather than allocating these funds within this amendment, the Agency carries them over to the next fiscal year’s budget for simpler reconciliation by the Board. This timing aligns with the simultaneous presentation of the Fiscal Year 2025 budget and the final amendment for the current year. Staff recommends appropriating the additional $3,056,265 expected in the following funds in the next fiscal year. Central District District Temple Housing Ballpark NEXT Redevelopment Strategy Project Following the 2024 baseball season, the Salt Lake Bees baseball team will be moving to a new park in South Jordan. This has created an opportunity for the Ballpark site and adjacent parking lot, located at 1300 South and West Temple (approx. 13.5 acres) to be re-envisioned and potentially redeveloped. The Agency facilitated the Ballpark NEXT Design Competition and followed up with a Community Visioning Process which elevated a set of Guiding Principles to integrate into the next steps. With the Fiscal Year 2024 Budget, the Board approved $300,000 for Ballpark Planning within the Ballpark NEXT Redevelopment Strategy project. An initial $150,000 was used to hire a consultant to create a Design Framework, leaving $150,000 remaining in the project budget. Upon the approval of a straw poll in the December 2023 Board meeting, the Agency released a Request for Proposals (RFP) for a specialized Ballpark NEXT Design Consultant Team to develop preferred concepts and an overall implementation plan for the Ballpark Site. The consultant's proposed total for the scope of work was $537,150, prompting the Agency to request an additional $415,000 to cover the scope and maintain a contingency of $27,850 for potential change orders. Initially, funds were to come from the Strategic Intervention program, but given the increase in tax increment received in the State Street project area, Staff is now recommending appropriating $415,000 of those funds to add to the Infrastructure Studies and Planning program to fund this project. Note that that the Ballpark Site is located outside the State Street Project Area however any activity outside a project area determined by the board to benefit the State Street Project Area is an allowable use of agency funds per Sections: 17C-1-409 and 17C-1-102. Total 3,324,029 530,435 3,854,464 Business RDA-FY24-CBD-Transition Holding Account-CBD District 0 786,303 786,303 Depot RDA-FY24-DD-Transition Holding Account-DD 0 421,999 421,999 Granary RDA-FY24-GD-Transition Holding Account-GD 0 165,086 165,086 North RDA-FY24-NT-Transition Holding Account-NT 0 249,892 249,892 9 Line RDA-FY24-9L-Transition Holding Account-9L 0 276,503 276,503 State Street RDA-FY24-SS-Transition Holding Account-SS 0 648,977 648,977 Primary RDA-FY24-1H-Transition Holding Account-NPA 0 507,505 507,505 Total 0 3,056,265 3,056,265 Deliverables will include a comprehensive site plan that identifies recommended right-of-way alignments, development pads, building massing and scale, land use mix, and programming to support residents (“Design Framework”). Primary goals of the Design Consultant RFP are to: •Ensure that the community’s Ballpark NEXT Guiding Principles are incorporated as a foundational element of the Design Framework. •Utilize a team of specialists to advise the Agency on the implementation of human centered design and programming, impact investment opportunities available through the Legacy Fund, and how to best incorporate these opportunities into the Project. •Incorporate additional community representative input checkpoints along the way to inform key design and programming decisions. •Incorporate the multiple moving pieces of the Project into a thoughtful Design Framework that includes existing conditions, neighborhood opportunities, and aligns with existing engagement efforts. •Create a collaborative concept to inform the future RFP for a development team (or teams) to implement the project. Approval of this request will result in a total project budget of $715,000, as outlined in the table below. Should the Board not approve the additional appropriation to this project, Staff recommends increasing the Transition Holding Account program appropriation. Fund FY24 Appropriation Project FY24 Budget Change FY24 BA4 State Street RDA-FY24-SS- Infrastructure Studies and PRJ-000051 RDA - Ballpark Next 300,000 415,000 715,000 Planning-SS Redevelopment Strategy 300,000 415,000 715,000 PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2023-2024 Budget. 2. Approval of the Fiscal Year 2023-2024 Budget Amendment #1. 3. Approval of the Fiscal Year 2023-2024 Budget Amendment #2. 4. *Pending* Approval of the Fiscal Year 2023-2024 Budget Amendment #3. ATTACHMENTS: 1. Supplemental Slides of Expenditures Key Changes by Fund R E D E V E L O P M E N T A G E N C Y F I S C A L Y E A R 2 0 2 3 - 2 0 2 4 B U D G E T A M E N D M E N T # 4 Total Increase in Tax Increment Revenue $7,693,255 Central Business District 2,621,013 State Street 1,329,972 Northwest Quadrant 1,052,539 Depot District 649,230 North Temple 504,760 Block 67 North 358,599 9 Line 317,508 Block 70 304,764 North Temple Viaduct 284,199 Granary District 253,977 Stadler Rail 16,694 Tax Increment Revenue Changes Summary of Expense Changes Total Project Area Funds Changes 292,852 415,000 Tax Incrment Increase Eccles Bond Debt Service Reserves Reduction Remaining Tax Increment Revenue Obligated Project Area Expenses Ballpark NEXT Redevelopment Strategy Transition Holding Accounts Agency Operations Fund Changes 790,676 16 53 37 ,,15 15 79 57652,,050509 562,559 Incoming Transfers Charges & Services Operating & Maintenance Fund Balance Note: Obligated Internal Transfers are the required transfers from Project Area Funds to Primary Housing and Agency Operations, which are based on a percentage of tax increment. Obligated Internal Transfers Transition Holding Account School District Required Family & Workforce Housing Incoming Transfers 507,50581,619589,124 Primary Housing Fund Changes 2,548,760 7,400,4037,693,255 4,436,643 Central Business District State Street Primary Housing Depot District 9 Line North Temple Granary District Transition Holding Account Program Total Transition Holding Account Funds Included in Fiscal Year 2025 Budget $3,056,265 786,303 648,977 507,505 421,999 276,503 249,892 165,086 Project: Ballpark NEXT Redevelopment Strategy Total Increase in Tax Increment Revenue in the State Street Project Area $1,329,972 Remaining to Transition Holding Account $648,977 Additional Project Funding Request $415,000 Changes in Obligated Expenses $265,995 E x p e n s e k e y c h a n g e s b y F u n d Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Programs Administration Assessment-CBD Programming-CBD Administration Fund-CBD Debt Service-CBD Payments-CBD CBD Project CBD Planning Programs Account-CBD Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Central Business District Obligation RDA Operations RDA-FY24-CBD-Gallivan -372,775 0 0 0 0 372,775 RDA-FY24-CBD-Gallivan - Management & Maintenance Assessment-CBD 573,975 0 0 0 0 573,975 RDA-FY24-CBD-Gallivan -250,000 0 0 0 0 250,000 RDA-FY24-CBD-Internal Transfers -2,464,469 0 0 0 262,102 2,726,571 RDA-FY24-CBD-Internal Transfers -8,477,030 0 0 0 0 8,477,030 RDA-FY24-CBD-Property Management and Maintenance-CBD 1,075,000 0 0 0 0 1,075,000 RDA-FY24-CBD-Taxing Entity 9,621,707 0 0 0 1,572,608 11,194,315 RDA-FY24-CBD-TI Reimbursements-1,300,000 0 0 0 0 1,300,000 Discretionary Capital Reserves RDA-FY24-CBD-Gallivan - Planning-PRJ-000061 RDA - Gallivan Plaza 509,738 0 0 0 0 509,738 RDA Operations RDA-FY24-CBD-Transition Holding 0 0 0 0 786,303 786,303 24,644,694 0 0 0 2,621,013 27,265,707 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation Capital Reserves Project RDA-FY24-B70-Commercial Relocation-B70 PRJ-000080 Bennion Jewelers Relocation 100,000 0 0 0 0 100,000 RDA-FY24-B70-Eccles - Maintenance & PRJ-000084 Regent Street Repairs-B70 Parking Structure Reserves 100,000 0 0 0 0 100,000 PRJ-000085 Regent Street Maintenance 80,000 0 0 0 0 80,000 RDA-FY24-B70-RDA Arts & Culture Program-B70 PRJ-000082 Eccles Fundraising Fulfillment 125,000 0 0 0 0 125,000 PRJ-000083 Eccles Theater- Operating Reserve for Ancillary Spaces 475,000 0 0 0 0 475,000 RDA Operations Programs RDA-FY24-B70-Eccles Debt Service- B70 9,599,991 0 0 0 0 9,599,991 RDA-FY24-B70-Taxing Entity Payments- B70 548,768 0 0 0 11,912 560,680 Discretionary Capital Reserves Project RDA-FY24-B70-RDA Arts & Culture Program-B70 PRJ-000081 Regent Street Event Programming 25,000 0 0 0 0 25,000 11,053,759 0 0 0 11,912 11,065,671 Key Changes: Block 70 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-DD-Internal Transfers - Administration Fund-DD 813,365 0 0 0 97,385 910,750 RDA-FY24-DD-Internal Transfers - Primary Housing Fund-DD 1,084,487 0 0 0 129,846 1,214,333 RDA-FY24-DD-Property Management and Maintenance-DD 150,000 0 0 0 0 150,000 Discretionary RDA Capital Reserves Programs RDA-FY24-DD-Commercial Assistance Reserves-DD 500,000 0 0 0 0 500,000 RDA-FY24-DD-Infrastructure Improvements-DD 3,680,056 0 (3,680,056)0 (3,680,056)0 Capital Reserves Project RDA-FY24-DD-Infrastructure Improvements-DD New Project: Depot District Infrastructure, Design, Construction, & Site Work 0 0 3,680,056 0 3,680,056 3,680,056 RDA Operations Programs RDA-FY24-DD-Internal Transfers - Secondary Housing Fund-DD 1,000,000 0 0 0 0 1,000,000 RDA-FY24-DD-Transition Holding Account-DD 0 0 0 0 421,999 421,999 7,227,908 0 0 0 649,230 7,877,138 Key Changes: Depot District Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-GD-Internal Transfers - Administration Fund-GD 165,496 0 0 0 38,096 203,592 RDA-FY24-GD-Internal Transfers - Primary Housing Fund-GD 220,662 0 0 0 50,795 271,457 RDA-FY24-GD-Property Management and Maintenance-GD 5,000 0 0 0 0 5,000 Discretionary RDA Capital Reserves Programs RDA-FY24-GD-Commercial Assistance Reserves-GD 1,003,435 0 0 0 0 1,003,435 RDA Operations Programs RDA-FY24-GD-Transition Holding Account-GD 0 0 0 0 165,086 165,086 1,394,593 0 0 0 253,977 1,648,570 Key Changes: Granary District Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation Capital Reserves RDA-FY24-NT-Infrastructure PRJ-000086 North Temple Project Improvements-NT School Construction Reserves 70,610 0 0 0 27,766 98,376 RDA Operations RDA-FY24-NT-Internal Transfers - Programs Administration Fund-NT 100,872 0 0 0 126,150 227,022 RDA-FY24-NT-Internal Transfers - Primary Housing Fund-NT 201,743 0 0 0 100,952 302,695 Discretionary RDA Capital Reserves RDA-FY24-NT-Commercial Assistance Programs Reserves-NT 543,277 0 0 (325,959)(325,959)217,318 RDA-FY24-NT-Infrastructure Improvements-NT 100,000 0 0 0 0 100,000 RDA-FY24-NT-Strategic Intervention-NT 285,490 0 0 (285,490)(285,490)0 Capital Reserves RDA-FY24-NT-Infrastructure PRJ-000022 RDA - City Creek Project Improvements-NT Daylighting Design Plan Budget 50,000 0 0 0 0 50,000 RDA-FY24-NT-Strategic Intervention-NT New Project: Whipple Property Acquisition 0 0 0 611,449 611,449 611,449 RDA Operations RDA-FY24-NT-Transition Holding Programs Account-NT 0 0 0 0 249,892 249,892 1,351,992 0 0 0 504,760 1,856,752 Key Changes: North Temple Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-NTV-Internal Transfers - Administration Fund-NTV 41,616 0 0 0 4,263 45,879 RDA-FY24-NTV-Salt Lake City Debt Service-NTV 2,732,803 0 0 0 279,936 3,012,739 2,774,419 0 0 0 284,199 3,058,618 Key Changes: North Temple Viaduct Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-SR-Internal Transfers - Administration Fund-SR 7,065 0 0 0 835 7,900 RDA-FY24-SR-Internal Transfers - Primary Housing Fund-SR 14,130 0 0 0 1,669 15,799 RDA-FY24-SR-TI Reimbursements-SR 120,102 0 0 0 14,190 134,292 141,297 0 0 0 16,694 157,991 Key Changes: Stadler Rail Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-9L-Internal Transfers - Administration Fund-9L 253,543 0 0 0 5,663 259,206 RDA-FY24-9L-Internal Transfers - Primary Housing Fund-9L 144,592 0 0 0 18,642 163,234 RDA-FY24-9L-Internal Transfers - School District Required Family & Workforce Housing-9L 120,786 0 0 0 13,109 133,895 RDA-FY24-9L-Taxing Entity Payments- 9L 331,388 0 0 0 3,591 334,979 Discretionary Capital Reserves Project RDA-FY24-9L-RDA Arts & Culture Program-9L New Project: 9-Line Public Art Project 150,000 0 0 0 0 150,000 RDA Capital Reserves Programs RDA-FY24-9L-Accessory Dwelling Unit Program-9L 1,455,680 0 0 0 0 1,455,680 RDA-FY24-9L-Commercial Assistance Reserves-9L 500,000 0 0 0 0 500,000 RDA-FY24-9L-Strategic Intervention-9L 500,000 0 0 0 0 500,000 RDA Operations Programs RDA-FY24-9L-Transition Holding Account-9L 0 0 0 0 276,503 276,503 3,455,989 0 0 0 317,508 3,773,497 Key Changes: 9 Line Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-SS-Internal Transfers - Administration Fund-SS 442,381 0 0 0 132,998 575,379 RDA-FY24-SS-Internal Transfers - Primary Housing Fund-SS 182,405 0 0 0 64,487 246,892 RDA-FY24-SS-Internal Transfers - School District Required Family & Workforce Housing-SS 259,976 0 0 0 68,510 328,486 Discretionary Capital Reserves Project RDA-FY24-SS-Infrastructure Studies and Planning-SS PRJ-000051 RDA - Ballpark Next Redevelopment Strategy 300,000 0 0 0 415,000 715,000 RDA Capital Reserves Programs RDA-FY24-SS-Commercial Assistance Reserves-SS 1,239,049 0 0 0 0 1,239,049 RDA-FY24-SS-Strategic Intervention-SS 3,364,709 0 0 0 0 3,364,709 RDA Operations Programs RDA-FY24-SS-Transition Holding Account-SS 0 0 0 0 648,977 648,977 5,788,520 0 0 0 1,329,972 7,118,492 Key Changes: State Street Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation Capital Reserves Project RDA-FY24-NWQ-Infrastructure Improvements-NWQ PRJ-000087 NWQ Shared Costs Reserve 139,854 0 0 0 105,254 245,108 RDA Operations Programs RDA-FY24-NWQ-Internal Transfers - Administration Fund-NWQ 139,855 0 0 0 105,254 245,109 RDA-FY24-NWQ-Internal Transfers - Primary Housing Fund-NWQ 139,855 0 0 0 105,254 245,109 RDA-FY24-NWQ-TI Reimbursements- NWQ 978,984 0 0 0 736,777 1,715,761 1,398,548 0 0 0 1,052,539 2,451,087 Key Changes: Northwest Quadrant Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Program-B67N Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Block 67 North Obligation Capital Reserves Project RDA-FY24-B67N-RDA Arts & Culture New Project: Japantown Art 0 0 0 0 35,860 35,860 RDA Operations Programs RDA-FY24-B67N-Internal Transfers - Administration Fund-B67N 0 0 0 0 17,930 17,930 RDA-FY24-B67N-Internal Transfers - Primary Housing Fund-B67N 0 0 0 0 35,860 35,860 RDA-FY24-B67N-TI Reimbursements- B67N 0 0 0 0 268,949 268,949 0 0 0 0 358,599 358,599 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Capital Reserves Programs RDA-FY24-1H-School District Required Family & Workforce Housing-NPA 380,762 0 0 0 81,619 462,381 Discretionary Capital Reserves Project RDA-FY24-1H-Other Housing-NPA PRJ-000088 Sunday-Anderson Senior Center - SLCO Partnership 1,013,820 0 0 0 0 1,013,820 RDA Capital Reserves Programs RDA-FY24-1H-HDLP - Competitive-NPA 1,000,000 0 0 0 0 1,000,000 RDA Operations Programs RDA-FY24-1H-Transition Holding Account-NPA 0 0 0 0 507,505 507,505 2,394,582 0 0 0 589,124 2,983,706 Key Changes: Primary Housing Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Discretionary Capital Reserves Project RDA-FY24-2H-Other Housing-NPA PRJ-000088 Sunday-Anderson Senior Center - SLCO Partnership 1,000,000 0 0 0 0 1,000,000 1,000,000 0 0 0 0 1,000,000 Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Secondary Housing Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Discretionary Capital Reserves Project RDA-FY24-HDF-Shared Equity Housing- NPA PRJ-000089 Neighborworks for Shared Equity Workforce 1,400,000 0 0 0 0 1,400,000 RDA Capital Reserves Programs RDA-FY24-HDF-Accessory Dwelling Unit Program-NPA 1,000,000 0 0 0 0 1,000,000 RDA-FY24-HDF-HDLP - Competitive- NPA 7,836,967 (6,476,014)0 0 (6,476,014)1,360,953 10,236,967 (6,476,014)0 0 (6,476,014)3,760,953 Key Changes: Housing Development Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Discretionary Capital Reserves Project RDA-FY24-WCI-Shared Equity Housing- NPA PRJ-000089 Neighborworks for Shared Equity Workforce 700,000 0 0 0 0 700,000 RDA Capital Reserves Programs RDA-FY24-WCI-Wealth Building Housing Opportunities-NPA 1,135,469 0 0 0 0 1,135,469 1,835,469 0 0 0 0 1,835,469 Key Changes: Westside Community Initiative Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Obligation RDA Operations Programs RDA-FY24-PIF-Operating & Maintenance-NPA 330,000 0 0 0 0 330,000 Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Program Income Fund Discretionary Capital Reserves Project RDA-FY24-PIF-Gallivan - Maintenance & Repairs-NPA PRJ-000057 Gallivan Repairs 214,692 0 0 0 0 214,692 RDA-FY24-PIF-Infrastructure Improvements-NPA PRJ-000078 Sugar House DI Demolition 550,000 0 0 0 0 550,000 RDA Operations Programs RDA-FY24-PIF-Charges & Services-NPA 355,000 0 0 0 0 355,000 1,449,692 0 0 0 0 1,449,692 Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Discretionary RDA Capital Reserves RDA-FY24-RLF-Commercial Revolving Programs Loans-NPA 226,750 0 0 0 0 226,750 226,750 0 0 0 0 226,750 Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Key Changes: Revolving Loan Fund Note: The "Change" column totals all amendments, and the "BA 4" column shows the overall amended budget. If BA 3 is not approved, its changes will not be included in BA 4. Expense Type Appropriation Type FY24 Appropriation Project Adopted Budget BA 1 BA 2 BA 3 Change BA 4 Obligation RDA Operations Programs RDA-FY24-OPS-Administrative Fees- NPA 1,000,000 0 0 0 0 1,000,000 RDA-FY24-OPS-Charges & Services- NPA 296,883 0 0 0 153,117 450,000 RDA-FY24-OPS-Operating & Maintenance-NPA 375,000 0 0 0 75,000 450,000 RDA-FY24-OPS-RDA Personnel-NPA 2,756,779 0 0 0 0 2,756,779 4,428,662 0 0 0 228,117 4,656,779 Key Changes: Agency Operations Fund A d d i t i o n a l i n f o r m a t i o n Appropriation Cost Center Fiscal Year Fund Program Region Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments, projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags: Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center. Fiscal Year: The original year the funds were appropriated. Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be monitored. Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal, policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing, Commercial, Infrastructure, and Operations programs. Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which means this Worktag may not always be used. Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix. Workday Worktags & the RDA Budget All project budgets must pull from appropriations. Once project budgets have been approved by the Board, the Agency can move forward with spending. Project budgets may have multiple appropriations. Project Budgets Appropriations for programs that carry forward each year. For instance, in the Housing Development Loan Program, a set amount is allocated for loans. Staff will request additional Board approval to use these funds for specific loan projects. Funds not awarded to projects roll forward to the next year, unless reappropriated by the Board. Capital Reserves Appropriations Annual appropriations for operational expenses. Considered approved to spend when appropriated. If not spent or encumbered by the end of the fiscal year, drops to fund balance. Typically, these would be for RDA operating expenses. Occasionally may be associated with a project budget (for example, an office remodel). Operations Appropriations Each appropriation supports either the operations of the Agency or projects associated with its various programs. Appropriations & Project Budgets Project Area Funds Must be used within the boundaries of the project area, except for money transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legally obligated reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) •West Capitol Hill (WCH) Note: Region acronyms are the same as project area acronyms. If there is “NPA” noted in an appropriation, it stands for “Non-Project Area.” Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Received transfers in from other funds to fund the Agency’s operational expenses. Redevelopment Agency Funds NWQ, LLC TAX INCREMENT REIMBURSEMENT Phases 2 & 3 RDA BOARD MEETING – JUNE 11, 2024 MASTER PLAN, AUGUST 2016 •Establishes the vision and land use plan for future development, from which subsequent zoning amendments were based. ZONING & OVERLAY DISTRICTS, 2016 - 2018 •Establishes natural areas to protect sensitive lands and developable areas zoned as M1: Light Manufacturing. CRA ESTABLISHED, JANUARY 2018 •Enables the collection of tax increment to facilitate economic development and master plan implementation. •An interlocal agreement between Salt Lake City and the RDA establishes that the RDA collect 75% of tax increment for project area development activities over a 20-year term. The remaining 25% is retained by the City. DEVELOPMENT AGREEMENT, JANUARY 2018 •The RDA and City entered into a Master Reimbursement and Development Agreement with NWQ, LLC. •The Agreement establishes “reimbursement qualified expenses” that are eligible for a tax increment reimbursement. NWQ TI REIMBURSEMENT POLICY, AUGUST 2018 •Establishes the policies and procedures for evaluating and approving a Tax Increment Reimbursement Agreement. •Applications for a reimbursement of $1 million or more of tax increment shall be subject to a public benefits analysis completed by a third-party consultant. NWQ TI REIMBURSEMENT AGREEMENT, MAY 2020 •The RDA and NWQ, LLC entered into a tax increment reimbursement agreement for Phase I with a maximum reimbursement of $28 million. NWQ, LLC’s Phases 2 & 3 are adjacent to the already developed International Center, Phase 1, and within the area identified for development through the Northwest Quadrant Master Plan. APPLICANT: NWQ, LLC PROPERTY: 954.37 total acres Phase 2: 342.51 acres Phase 3: 611.86 acres RDA PARTICIPATION: 70% TERM: 20 Years or the sum of the remaining collection years of the Project Area, whichever is less MAXIMUM REIBURSEMENT: $49,562,855 ELIGIBLE EXPENSES: $288,283,201 •Systemwide Improvements: $48,173,936 Improvements that benefit the larger area within Phase 2 & 3 •Project-Specific Improvements: $240,109,264 NWQ, LLC’s improvements specific to Phase 2 & 3 of property development. Note: After the May presentation, the developer added a 3.81-acre parcel to Phase 3. This parcel will consist of a dedicated public roadway and swales. The amendment caused no change to the Reimbursable Improvements costs, tax increment projections, or the Maximum Reimbursement. Note: NWQ, LLC may only receive a reimbursement after the improvements are developed and the property generates sufficient tax increment. Note: Annual reimbursements subject to verification of the actual costs incurred by NWQ, LLC. NWQ, LLC’s Phases 2 & 3 will include light industrial warehousing that may accommodate manufacturing, warehouse, and distribution tenants of varying size. Private investment for the planned system-wide improvements and the Phase 2 & 3 development includes over $1.8 billion million in capital expenditures. Approximately 14.7 million square feet of development will be generated to support over 7,300 jobs (PH 2: 2,842 & PH 3: 4,516 jobs). Source Moderate Scenario Value High Scenario Value Total City Tax Increment $81,506,526 $94,405,437 City Portion (25%)$20,376,632 $23,601,359 RDA Portion (75%)$61,129,894 $70,804,078 Note: Tax increment values are projections over the remaining 15 years of the Project Area term based on the Public Benefits Analysis completed by LRB Public Finance Advisors. Use %Moderate Scenario High Scenario Tax Increment Reimbursement 70%$42,790,926 $49,562,855 Affordable Housing 10%$6,112,989 $7,080,408 RDA Administration 10%$6,112,989 $7,080,408 Shared Costs 10%$6,112,989 $7,080,408 Total Uses of Tax Increment 100%$61,129,894 $70,804,078 Note: Tax increment uses are projections based on the Public Benefits Analysis completed by LRB Public Finance Advisors. •There are significant extraordinary infrastructure improvements in the NWQ area, including soil remediation, access to utilities and renewable energy investments. •Tax increment participation will assist with removing development impediments and the system-wide infrastructure investment will lead to substantial development within the remaining NWQ area. •The Development has the potential to create billions of new assessed value within an underutilized area that has generated very little tax revenue historically for the City. •The Development is projected to create over 7,300 new jobs. •“But for” the use of tax increment, this area will remain underutilized and vacant. ATTACHMENT D: PUBLIC BENEFITS ANALYSIS o o o Parcel ID # Bldg. SF FAR% Total Acreage Total SF Tax Dist. Land Value Building Value Total Final Value Bldg. Value / SF Land Value / SF TOTALS:6,425,388 0.37 390.18 16,996,241 70,746,800 842,972,484 913,719,284 Avg.135.34$ 3.73$ Additional Tables Below Used as Comparisons for other Western Salt Lake Valley Industrial Uses Average 18.46 7,494,140.00$8.06$Average: Average 18.46 24,837,660.00$45.17$ Payment Year Tax Year Year Appendix E.3 NWQ, LLC Public Benefits Analysis 11.15.2023 (Appendix E Version).xlsx Property Tax Participation Rate for Budget Property Tax Increment for Budget Appendix E.3 NWQ, LLC Public Benefits Analysis 11.15.2023 (Appendix E Version).xlsx Payment Year 2024 Tax Year 2023 Year Appendix E.4 NWQ, LLC Public Benefits Analysis 11.15.2023 (Appendix E Version).xlsx 2023 Class B/C Road Funds Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Total 112,529.63$ Class B/C Road Fund Road Revenues Weighted # of miles Weighted $ per mile 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 TOTALS NPV @ 4% minus Job Creation Manufacturing Jobs Total Annual Salaries 7,252,136 32,609,307 82,111,499 134,074,945 205,979,828 251,090,980 295,939,672 345,795,984 378,618,231 422,405,598 430,853,709 439,470,784 448,260,199 457,225,403 466,369,911 Average Employee/SF or Room Industrial Construction Jobs Total Annual Salaries 4,500,000 5,737,500 7,022,700 8,357,013 8,524,153 8,694,636 8,868,529 9,045,900 9,226,818 9,411,354 79,388,603 2019 2023 Average 43,584 48,037 ASSUMPTIONS: CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM:Allison Rowland Senior Budget & Policy Analyst DATE:June 11, 2024 RE:RESOLUTION: AMENDMENT TO HOUSING DEVELOPMENT LOAN FUNDING ALLOCATIONS FOR THE CATHERINE ISSUE-AT-A-GLANCE The Board will review and consider approving an amendment to an affordable housing project that received $1,134,323 in the most recent Notice of Funding Availability (NOFA) competition for Fiscal Year 2024 (FY24) funds allocated to the RDA’s Housing Development Loan Program (HDLP). The developer of "The Catherine” Phases 1 and 2, at approximately 1881 W. North Temple, was recently informed that the project did not receive the 4% Federal Low-Income Housing Tax Credit (LIHTC) credits needed to make the project viable. The developer, 22 Communities is an experienced and well-regarded developer of affordable housing that has been working with RDA staff to find a workable alternative for this project. The project is a 372-unit development that originally was awarded a low-interest loan for $1 million of “dormant” Federal housing program income, as well as $134,323 from the RDA budget. As proposed, it would provide studio to three-bedroom rental apartments at 41-60% Average Median Income (AMI). The proposed amendment would shift the loan type to an acquisition loan to ensure the developer is able to buy the property; this would be converted later to a construction-to-permanent loan. The amendment would require a conditional waiver of the HDLP deed restrictions, and because RDA policy does not address this situation, the staff needs Board approval to proceed. The condition of the waiver is that if the project is unable to secure tax credits and financing in the next two years, and close on a construction-to-permanent loan, the developer would be required to pay the RDA an above-market interest rate for the loan. In that case, the conditional waiver also would allow the 30-year affordable deed restriction to be removed. The RDA Finance Committee reviewed and unanimously recommended this request on May 29, 2024, with a clarification that Phase 1 HUD HOME requirements and regulations be met prior to closing. Item Schedule: Briefing: June 11, 2024 Set Date: N/A Public Hearing: N/A Potential Action: June 11, 2024 Page | 2 Goal of the briefing: Discuss and consider adopting the resolution that would amend the Housing Development Loan Program (HDLP) loan to The Catherine Phase 1 and Phase 2 projects. ADDITIONAL INFORMATION A. Background. The Catherine development project (Phases 1 and 2) was included on the list of projects approved by the Board last March for $15.4 million in affordable housing loans offered through the FY24 Notice of Funding Availability (NOFA), issued in 2023. The purpose of these low-interest loans is to incentivize the inclusion of affordable housing in new construction, as well as preservation and rehabilitation projects. (For additional information, see Attachment C1, or see the March staff report.) City loan funding for the development project was combined from two sources—“dormant” Federal housing program income and the RDA budget—for a total of $1,134,323. At completion, the project would provide 372 rental apartments, ranging in size from studio to three-bedroom units, and priced at 41-60% Average Median Income (AMI). The terms originally approved by the Board for each phase of the development are identical, as listed below. Interest Rate Term Amortization Repayment Type Phase 1 2.0%16 year 40 year Cash Flow Phase 2 2.0%16 year 40 year Cash Flow Since the project did not receive LIHTC credits, the developer will not be able to buy the property before the end of this year. Instead, the developer has executed a new purchase and sale agreement for the property with a lower price and a much quicker closing date than originally anticipated. If the amendment to the HDLP loans is approved by the Board, it would allow the funds to be used for acquisition, and the loan could later be converted to a construction-to-permanent one. B. Proposed New Terms. The developer has requested a loan modification with a conditional waiver of the deed restriction. The proposal would change the original loan type to an acquisition loan that later could be converted to a construction-to-permanent loan. The conditional waiver of the deed restriction would allow the standard HDLP 30-year affordable deed restriction to be removed, provided the developer agrees to repay the HDLP loan at an above-market interest rate. This rate would be set to the two-year US Treasury Yield at the time of closing plus 800 basis points (8 percentage points) calculated from the time of interest accrual. The condition is meant to avoid setting a precedent that could encourage other developers to attempt to use the HDLP as a low-cost source for acquisition loans. The deed restriction would be waived, and the loan’s interest rate would be raised, only if the project is unable to secure tax credits and financing within the next two years, and cannot meet the conditions required to close on a construction-to-permanent loan. This type of agreement falls within existing RDA policies. Construction Phase Interest Rate Term Amortization Repayment Type Phase 1 Page | 3 - Acquisition 1.0%2 years Balloon or Conversion - Construction- to-Permanent 2.0%16 years 40 years Cash Flow Phase 2 - Acquisition 1.0%2 years Balloon or Conversion - Construction- to-Permanent 2.0%16 years 40 years Cash Flow C. Future Steps. The developer intends to reapply for tax credits in the coming months, and these may be awarded as early as July. The 4% LITHC has become more competitive in recent years as construction prices have risen and more projects seek this source of funding. Each year, a limited amount of funding is allocated to projects on a first-come, first-served basis. By the time the Catherine Phase 1 and 2 was considered, most funding had already been allocated. D. Site Conditions. The existing land use for this property is Industrial. The developer has completed a Phase 1 environmental review, which did not detect any hazardous materials associated with the property. This environmental review is also required as a condition of the HOME funds that were allocated in March. POLICY QUESTIONS 1. Does the Board agree that the terms of the proposed loan and conditional waiver are sufficiently rooted in RDA policy, and strict in their terms, that they are unlikely to attract less scrupulous developers who wish to cite precedent to obtain similar terms? ATTACHMENTS Attachment C1. Summary of RDA Finance Committee Recommended FY24 HDLP Funding. REDEVELOPMENT AGENCY OF SLC THE CATHERINE PHASE 1 AND 2 HOUSING DEVELOPMENT LOAN PROGRAM LOAN TERM AMENDMENT RDA BOARD OF DIRECTORS MEETING – JUNE 11, 2024 BACKGROUND •The Catherine Phase 1 and Phase 2 o Developer: 22 Communities o Funded through competitive Housing Development Loan Program (HDLP) NOFA process o RDA Board allocated $15M to 13 of the 15 projects o Both projects ranked 10 of 15 o Allocations ▪Phase 1: $1M in HOME Program Income Funds ▪Phase 2: $134,323 in RDA Funds PROJECT SUMMARY •2 phase project: o Phase 1: 228 Units - 100% affordable to households between 41%-60% AMI. o Phase 2: 144 Units – 100% affordable to households between 41%-60% AMI. •Mix of studio, one-, two-, and three-bedroom units. •Due to the lack of bond cap at the last PAB, Developer is seeking to restructure the loan into an acquisition loan. PROPOSED AMENDMENTS 1.Amend the loan type for each phase to an acquisition loan that may convert to a construction to permanent loan within 2 years 2.Allow for conditional waiver of affordable deed restriction that would allow removal of 30 year deed restriction by requiring Developer to pay an above market interest rate if project cannot secure tax credits, financing, and meet other conditions required to close on construction to permanent loan within 2 years. APPROVED TERMS VS PROPOSED AMENDMENTS Amended Request:$1,134,323 between HOME and RDA Funds ORIGINAL APPROVAL PROPOSED AMENDMENT Amount:Phase 1: $1,000,000 HUD HOME Funds Phase 2: $134,323 RDA Funds Phase 1: $1,000,000 HUD HOME Funds Phase 2: $134,323 RDA Funds Loan Type Construction to Permanent Acquisition loan that may convert to Construction to Permanent loan Repayment Type Cash Flow Acquisition: Balloon payment or conversion to Construction to Permanent loan Construction to Permanent: Cash flow Interest Rate:2%*Acquisition: 1%*, may be subject to change. See “Other” section below. Construction to Permanent: 2%* Term/Am:16 yr/40 yr Acquisition: 2 years (24 months) Construction to Permanent: 16 yr/40 yr Other:Deed restriction of 30 years or same period as senior financing, whichever is greater Deed restriction of 30 years with conditional waiver to requirement: If unable to secure tax credits and financing within 24 months and property cannot fulfill affordable housing obligation, developer could request removal of deed restriction. Removal of deed restriction will require the loan to be paid in full with an interest rate of the 2 Year US Treasury Yield at time of closing + 8% calculated from the time of interest accrual. *Interest rate after reductions from meeting project priorities. CONSIDERATIONS •The HDLP policy allows for acquisition loans. o The LTV is 78%, under the 90% threshold as outlined in the policy. o The developer has maximized other lending sources and will obtain a loan from a senior lender. •The amendment will help with project’s ability to acquire the property. •The RDA has taken steps to ensure the Developer will not be incentivized to flip the property to market due to the low interest rate by requiring a significantly higher interest rate should the deed restriction be waived on the property. •If approved, Developer will purchase the property this month. RDA FINANCE COMMITTEE RECOMMENDATION •Approve loan amendments with the requirement that Phase 1 HUD HOME requirements and regulations are met prior to closing. 1 MAYOR ERIN MENDENHALL Executive Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DANNY WALZ Director DATE:May 23, 2024 PREPARED BY:Tracy Tran, Senior Project Manager, and Marcus Lee, Project Coordinator RE:Consideration and Adoption of a Resolution Approving the Amendment of a Funding Allocation from the 2023 Notice of Funding Availability for Affordable Housing. REQUESTED ACTION:Consider approving an amendment to a loan and a conditional waiver of the deed restriction to 22 Communities for The Catherine Phase 1 and 2, located at approximately 1881 W North Temple. POLICY ITEM:Affordable housing. BUDGET IMPACTS:$1,134,232 total: $1,000,000 in HUD HOME funds and $134,232 in RDA funds EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) issued a competitive Notice of Funding Availability (“NOFA”) on November 17, 2023, to solicit applications through the Housing Development Loan Program (“HDLP”). Through the HDLP, the RDA intends to commit low-cost financial assistance to projects to incentivize the development and preservation of affordable housing within city limits. The program provides flexibility to accommodate a wide range of projects that may be dependent upon a myriad of underwriting standards by outside lenders. The RDA Board adopted a policy for FY2023-2024 that required all projects applying for funding through the HDLP to include either deeply affordable housing units or affordable family-sized units in this competitive HDLP NOFA. In March 2024, the RDA Board allocated over $15 million to thirteen of the fifteen eligible affordable housing developments. Of those thirteen projects approved for funding, 22 Communities (“Developer”), proposed both The Catherine Phase 1 and The Catherine Phase 2, which both had a ranking of 10 out of the 15 projects. The Catherine Phase 1 received $1,000,000 in HOME Program Income Funds and The Catherine received $134,323 in RDA Funds for a construction to permanent loan for each phase. The Developer is seeking an amendment to the approval requesting to modify the loan type to an acquisition loan that could be converted to a construction to permanent loan with a conditional waiver of the deed restriction requirement within the HDLP policy. The conditional waiver could allow that the 30-year affordable deed restriction be removed by requiring that the Developer pay an 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 2 above market interest rate if the projects are unable to secure tax credits, financing, and meet conditions required to close on construction to permanent loan within 2 years. RDA FINANCE COMMITTEE RECOMMENDATION: The RDA Finance Committee (“Committee”) will review and provide a recommendation on the request on May 29, 2024. The Committee’s recommendation will subsequently be forwarded to the Board. ANALYSIS & ISSUES: Guiding Policy The subject loans are being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”) and the Housing Development Loan Program Policy (“HDLP Policy”). The Funds Policy establishes policies for allocating and directing resources for the development and preservation of housing by various funding sources and the HDLP Policy provides low-cost financial assistance to incentivize the development and preservation of affordable housing within Salt Lake City municipal boundaries. Overall, the HDLP Policy provides a centralized application, underwriting, and approval process. These loans applied in the FY2023-2024 competitive Notice of Funding Availability and are subject to the FY2023-2024 HDLP Annual Affordable Housing Funds Guidelines + Application Handbook. Overview of Proposal •Due to the limited amount of funds available through the State of Utah’s Private Activity Bond (“PAB”) and the number of applications, the Developer’s bond allocation for the 4% LIHTC request was not funded in the April 3, 2024, PAB meeting. With this delay, the Developer will need to re-apply as additional bond cap becomes available. This has altered the Developer’s ability to acquire the property by the end of 2024. In response, the Developer has executed a new purchase and sale agreement for the property that has a lower price, but a much quicker closing date than originally planned. •By purchasing the property earlier than anticipated, the Developer will secure financing from a senior lender for the acquisition and is requesting to amend their HDLP loans to allow them to use the funds for acquisition that could be converted to a construction to permanent loan. •The Developer is seeking a conditional waiver to the deed restriction requirement if they are unable to secure tax credits, financing, and meet conditions required to convert the loan to a construction to permanent loan within 2 years. •The project details such as total units, affordability levels, and public benefits are not anticipated to change. See Attachment B for updated Project Summaries. Loan Type The Developer applied for a construction to permanent loan for both The Catherine Phase 1 and The Catherine Phase 2. The Developer is requesting to modify the loan type for both phases to an acquisition loan that could convert to a construction to permanent loan within a 2-year term. HDLP Policy allows for both acquisition loans as well as construction to permanent loans. Although these loan types are allowed within the HDLP Policy, this proposed modification has a different set of loan terms that would provide funds earlier for acquisition and is a change from what was previously approved. The HDLP Standard Loan Terms and Conditions requires the following for funds used for property acquisition: 3 •Maximize Other Sources: Applicants must demonstrate that they have maximized other available financing sources thereby limiting HDLP funding to the lowest amount necessary to close the funding gap and assure project feasibility. •Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is appraised value inclusive of the RDA’s loan and all senior debt. The developer will obtain a loan from a senior lender and the requested loan amounts between the RDA and senior debt is less than 90% LTV. Conditional Waiver – Deed Restriction The HDLP Standard Loan Term and Conditions for property acquisition require: •A restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for at least the same period as the senior financing or a minimum of 30 years, whichever is greater. In this case, a 30-year deed restriction would be placed upon the property to ensure that the continued use of the specified units would be for affordable housing. The HDLP Policy does not provide language about the ability to remove deed restrictions. The Developer has requested that the deed restriction could be removed in the case the Developer is unable to secure tax credits, financing, and meet closing conditions within two years. To ensure that the Developer commits to building affordable housing and does not flip the property to the market for a profit, the RDA suggests adding a provision that if the Developer is unable to secure tax credits, financing, and meet the conditions to convert to a construction to permanent loan, the 30-year deed restriction on the property could be removed and the RDA’s 1% acquisition interest rate would be replaced by the rate of the United States Treasury Yield Curve of the loan term at time of closing plus 800 basis points calculated from the time of interest accrual (i.e. 2-Year yield + 8%) for the repayment of the HOME and RDA funds. This provision is backed by existing RDA policies and guidelines within the RDA’s Revolving Loan Program. A comparison of the original approval and the proposed amendments can be found below: 4 THE CATHERINE PHASE 1 AND PHASE 2** ORIGINAL APPROVAL PROPOSED AMENDMENT Amount:Phase 1: $1,000,000 HUD HOME Funds Phase 2: $134,323 RDA Funds Phase 1: $1,000,000 HUD HOME Funds Phase 2: $134,323 RDA Funds Loan Type:Construction to Permanent Acquisition loan that may convert to Construction to Permanent loan Repayment Type:Cash flow Acquisition: Balloon payment or conversion to Construction to Permanent loan Construction to Permanent: Cash flow Interest Rate:2%*Acquisition: 1%*, may be subject to change. See “Other” section below. Construction to Permanent: 2%* Term/Am:16 yr/40 yr Acquisition: 2 years (24 months) Construction to Permanent: 16 year/40 year Other:Deed Restriction of 30 years or same period as senior financing, whichever is greater Deed restriction of 30 years with conditional waiver to requirement: If unable to secure tax credits and financing within 24 months and property cannot fulfill affordable housing obligation, developer could request removal of deed restriction. Removal of deed restriction will require the loan to be paid in full with an interest rate of the 2-Year US Treasury Yield at time of closing + 8% calculated from the time of interest accrual. *Interest rate after reductions from meeting project priorities. **See Summary Sheets in Attachment B for additional project details PREVIOUS BOARD ACTION: •March 19, 2024: The Board approved the FY2023-2024 Competitive Housing Development Loan Program funding allocations. •April 11, 2023: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year 2023-2024. •March 8, 2022: The Board adopted revisions to the Housing Development Loan Program Policy to direct review of applications to the RDA Finance Committee. •February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy. 5 •March 2021: The Board adopted the Housing Development Loan Program Policy. •February 2021: The Board adopted the Housing Allocation Funds Policy. 6 ATTACHMENTS: •Attachment A: FY2023-2024 Competitive HDLP Funding Allocations •Attachment B: Project Summary Sheets – The Catherine Phase 1 and The Catherine Phase 2 •Attachment C: HOME Funds Requirements •Attachment D: Resolution 7 ATTACHMENT A: FY2023-2024 COMPETITIVE HDLP FUNDING ALLOCATIONS PROJECT/APPLICANT ADDRESS LIHTC Awarded? WEIGHTED PROJECT PRIORITY SCORE/INTEREST RATE REDUCTION* FUNDIN G REQUE ST PRELIMINARY TERMS** RDA Committ ed Funds Possible Additional RDA Funds HOME Program Income HOME Development Fund HOME ARP Development TOTAL FUNDING RECOMMENDATI ON FUNDIN G RANKIN G Norbridge Court Artspace 511 W 200 S Yes, 9% Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 8 $895,000 Interest Rate: 1.0% Term: 30 year Amortization: 30 year Hard Repayments $895,000 $895,000 7 Bumper House SMH Builders 269 W Brooklyn Ave Yes, 4% Transportation Opportunities: 1 Neighborhood Safety: 1 Public Art: 1 TOTAL: 3 $3,000,000 Interest Rate: 1.5% Term: 17 year Amortization: 40 year Hard Repayments $0 14 New City Plaza Apartments Housing Connect 1966 S 200 E Yes, 4% Target Populations: 3 Commercial Vitality: 1 Historic Preservation/Adaptive Reuse: 1 TOTAL: 5 $895,000 Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments $895,000 $895,000 5 515 Tower - Conversion Phase I Perpetual Housing Fund 515 E 100 S Yes, 9% Family Housing: 3 Target Populations: 3 Expand Opportunity: 1 Historic Preservation/Adaptive Reuse: 1 Transportation Opportunities: 1 Commercial Vitality: 1 TOTAL: 10 $2,650,000 Interest Rate: 2.0% Term: 15 year Amortization: 15 year Cash Flow Repayments $0***3 2nd South Apartments Hermes Affordable Services, LLC 934-948 W 200 S Yes, 4% Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Public Art: 1 TOTAL: 8 $3,000,000 Interest Rate: 2.0% Term: 30 year Amortization: 30 year Cash Flow Repayments $2,420,000 $2,420,000 6 The Catherine Phase 1 22 Communities 1881 W N Temple Applying, 4% Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 4 $2,524,802 Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments $1,000,000 $1,000,000 10 The Catherine Phase 2 22 Communities 1881 W N Temple Applying, 4% Family Housing: 3 Transportation Opportunities: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 6 $1,569,441 Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments $134,323 $134,323 10 Citizens West 4 Developed. By Women. & Ivan Carroll 515 W 300 N Yes, 9% Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 $400,000 Interest Rate: 1.0% Term: 15 year Amortization: 30 year Hard Repayments $400,000 $400,000 2 Fairmont Heights I Lincoln Avenue Communities 2557 S 1100 E Applying, 9% Target Populations: 3 Expand Opportunity: 1 Transportation Opportunities: 1 Architecture & Urban Design: 1 TOTAL: 6 $3,200,000 Interest Rate: 1.0% Acquisition Term: 2- year Balloon or conversion to Permanent: Term: 16 year Amortization: 40 year $1,000,000 $1,000,000 13 Project Open 3 Perpetual Housing Fund 529 W 400 N No Family Housing: 3 Homeownership : 3 Missing Middle: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Public Art: 1 TOTAL: 12 $710,000 Interest Rate: 1.0% Term: 18 month Balloon Repayment $710,000 $710,000 1 Pharos Apartments Housing Authority of Salt Lake City 915 W 200 N No Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 $880,000 Interest Rate: 2.5% Term: 15 year Amortization: 40 year Cash Flow Repayments $47,101 $726,291 $106,608 $880,000 12 Book Cliffs Lodge Housing Authority of Salt Lake City 1159 S W Temple No Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 $740,000 Interest Rate: 2.5% Term: 15 year Amortization: 30 year Cash Flow Repayments $740,000 $740,000 11 Liberty Corner Cowboy Partners 1265 S 300 W Yes, 4% Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 TOTAL: 10 $4,500,000 Interest Rate: 2.0% Term: 40 year Amortization: 40 year Cash Flow Repayments $1,236,714 $1,530,677 $1,732,609 $4,500,000 4 8 9Ten West Great Lakes Capital 910 W N Temple Yes, 4% Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 7 $2,000,000 Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments $1,000,000 $1,000,000 9 Alliance House 1805 Rebuild Alliance House & Cowboy Partners 1805 S Main St No Target Populations: 3 Missing Middle: 3 Neighborhood Safety: 1 TOTAL: 7 $500,000 Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments $500,000 $500,000 8 TOTAL $27,464,243 $4,241,714 $1,665,000 $6,939,710 $726,291 $1,501,608 $15,074,323 * Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from Project Priorities met may require Board approval. ** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2023-2024 Housing Development Loan Program ( HDLP) Guidelines. Changes to repayment type may occur ( hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or it required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loan; consideration may be made for other government entity loans if required through their policies. Funds may be disbursed in a lump sum if required by senior lender(s). *** While reviewing applications, the Committee took into consideration their February 1, 2024 High Opportunity Area HDLP funding recommendation and agreed to maintain their submitted recommendation to fund 515 Tower – Conversion 1 with High Opportunity Area funds. The Committee’s competitive HDLP funding recommendations incorporate the previously submitted High Opportunity Area recommendation. NOTE: For all loan awards greater than $899,999, the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels, but it would not restrict the ability to have backup generators for emergencies. Funding Recommended by Finance Committee Funds Availability Total Available Recommended Funding Funds Remaining RDA Committed Funds $4,241,714 $4,241,714 $ - Possible Additional RDA Funds $1,665,000 $1,665,000 $ - HOME Program Income $6,939,710 $6,939,710 $ - HOME Development Fund $726,291 $726,291 $ - HOME ARP Development $1,501,608 $1,501,608 $ - HOME Community Housing Development Organization Funds $351,841 $0 $351,84 1 Total Potential HDLP Funds $15,426,164 $15,074,323 $351,841 Legend: Grey box: Applicant qualifies for but doesn't want these funds. Black box: Applicant does not qualify for these funds. 9 ATTACHMENT B: PROJECT SUMMARY SHEETS – THE CATHERINE PHASE 1 AND THE CATHERINE PHASE 2 PROJECT NAME: 6 – The Catherine Phase I ADDRESS: 1881 W North Temple 10 OVERVIEW Developer 22 Communities Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Industrial RDA FUNDING REQUEST Funding Request $1,000,000 (HUD HOME funds) Total Project Cost Acquisition: $7,250,000 Construction to Perm: $69,452,555 Loan to Cost Acquisition: 13.8% Construction: 1.4% PROPOSED TERMS Interest Rate Acquisition: 1%1 Construction to Perm: 2% Term, Amortization Acquisition: 2 Yr, Balloon or Conversion Construction to Perm: 16 Yr, 40 Yr Repayment Terms Acquisition: Balloon or Conversion Construction to Perm: Cash flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units 90+ Energy Star Score Condition of Approval 100% Electric Yes Priorities Met Transportation Opportunities, Architecture & Urban Design, Commercial Vitality, Public Art TIMELINE Acquisition June 2024 Construction Start March 2025 1 Conditional waiver to affordable deed restriction of 30 years: if unable to secure tax credits and financing within 24 months and property cannot fulfill affordable housing obligation, developer could request removal of deed restriction. Removal of deed restriction will HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41- 60% AMI <40% AMI Studio 80 --80 - 1 Bed 44 --44 - 2 Bed 80 --80 - 3 Bed 24 --24 - 4 Bed ----- Total 228 --228 - LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N)Yes, 4% Tax Credits Reserved (Y/N)No ACQUISITION SOURCES Source Amount % of Total RDA -HDLP Phase 1 $1,000,000 13.8% RDA -HDLP Phase 2 $134,323 1.8% Seller’s Note $741,238 10.2% Senior Debt $5,374,439 74.1% Total $7,250,000 100% ACQUISITION USES Source Amount % of Costs Acquisition $7,250,000 100% Total $7,250,000 100% CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $21,767,665 require the loan to be paid in full with an interest rate of the 2-Year US Treasury Yield at time of closing + 8% calculated from the time of interest accrual. PROJECT NAME: 6 – The Catherine Phase I ADDRESS: 1881 W North Temple 11 PERMANENT SOURCES Source Amount % of Total Senior Debt $27,541,202 39.7% OWHLF $3,000,000 4.3% SLC HOME Funds $1,000,000 1.4% Other Sources $1,524,802 2.2 LIHTC Equity $30,627,027 44.1% State Tax Credit Equity $4,759,524 6.9% Deferred Fee $1,000,000 1.4% Total $69,452,555 100% USES Use Amount % of Cost Land2 $5,710,000 8.2% Hard Costs $43,906,872 63.2% Soft Costs $3,225,662 4.6% Developer Fee $5,636,749 8.1% Financing Expense $7,889,000 11.4% Contingency $2,504,272 3.6% Reserves $580,000 0.8% Total $69,452,555 100% 2 Land cost is based on appraised value. PROJECT NAME: 6 – The Catherine Phase I ADDRESS: 1881 W North Temple 12 PROJECT SUMMARY From Developer: “This phase of the project will include 228 units, all of which will be restricted units. There will be 80 studio units, 44 one-bedroom units, 80 two-bedroom units, and 24 three-bedroom units. The units will be available to tenants living at 60% AMI or below. The project will provide eighteen (18) "Type A" units for persons with long-term mobility impairments.” DEVELOPER SUMMARY From Developer: “Jake has over a decade of development, design, and project management experience with public, for-profit, and nonprofit entities. While at the Salt Lake City Housing and Neighborhood Development Department, Jake planned the disposition and redevelopment of city-owned assets and oversaw CDBG funded construction projects. Following that, Jake spearheaded the creation and early growth of CW Urban, a fast-growing Utah development company. He stayed on as the Director of Acquisition and Development, overseeing acquisitions, entitlements, and design for all infill and mixed-use developments. Next, Jake was the Director of Real Estate Development at Neighborhood Housing Solutions, a non-profit Real Estate Development company. He was responsible for all single-family subdivisions and multi-family tax credit developments. This work included the acquisition and initial concept planning for a 100-acre master-planned community in Smithfield Utah, and the development and management of a LIHTC multi-family portfolio. Most recently he was a managing member of Defy Co.labs where he was the Director of Development and Design and spearheaded a 140- unit LIHTC project called Colony B along with multiple other entitlement projects. Jake has been the development lead on over 20 development projects and underwritten hundreds more equating to over 1000 units over multiple Utah communities. Each project has had its unique challenges from environmental clean up to mechanical parking garages or unique entitlement processes. Jake has faced each challenge with creativity, passion and joy for the privilege to participate in the building of communities where people will live out their lives. Jake holds a bachelor’s degree in Business Management, a master’s degree in Real Estate Development, and an Urban Planning Certificate from the University of Utah.” PROJECT NAME: 6 – The Catherine Phase I ADDRESS: 1881 W North Temple 13 SITE MAP PROJECT RENDERINGS PROJECT NAME: 6 – The Catherine Phase I ADDRESS: 1881 W North Temple 14 PROJECT NAME: 7 – The Catherine Phase II ADDRESS: 1881 W North Temple 15 OVERVIEW Developer 22 Communities Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Industrial RDA FUNDING REQUEST Funding Request $134,323 (RDA funds) Total Project Cost Acquisition: $7,250,000 Construction to Perm: $45,194,612 Loan to Cost Acquisition: 1.9% Construction to Perm: .3% PROPOSED TERMS Interest Rate Acquisition:1%1 Construction to Perm: 2% Term, Amortization Acquisition: 2 Yr, Balloon or Conversion Construction to Perm: 16 Yr, 40 Yr Repayment Terms Acquisition: Balloon or Conversion Construction to perm: Cash flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family Sized Units 90+ Energy Star Score Condition of Approval 100% Electric Yes Priorities Met Family Housing, Transportation Opportunities, Commercial Vitality, Public Art TIMELINE Acquisition June 2024 Construction Start March 2025 HOUSING UNITS 1 Conditional waiver to affordable deed restriction of 30 years: if unable to secure tax credits and financing within 24 months and property cannot fulfill affordable housing obligation, developer could request removal of deed restriction. Removal of deed restriction will Bedroom Count Total Units Market Rate 61-80% AMI 41- 60% AMI <40% AMI Studio 45 --45 - 1 Bed 30 --30 - 2 Bed 45 --45 - 3 Bed 24 --24 - 4 Bed ----- Total 144 --144 - LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N)Yes, 4% Tax Credits Reserved (Y/N)No ACQUISITION SOURCES Source Amount % of Total RDA -HDLP Phase 1 $1,000,000 13.8% RDA -HDLP Phase 2 $134,323 1.8% Seller’s Note $741,238 10.2% Senior Debt $5,374,439 74.1% Total $7,250,000 100% ACQUISITION USES Source Amount % of Costs Acquisition $7,250,000 100% Total $7,250,000 100% CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $37,095,412 PERMANENT SOURCES Source Amount % of Total Senior Debt $17,033,754 37.7% OWHLF $2,500,000 5.5% SLC RDA Funds $134,323 .3% Other Funds $1,435,118 3.2% LIHTC Equity $20,011,725 44.3% State Tax Credit Equity $3,079,692 6.8% Deferred Fee $1,000,000 2.2% Total $45,194,612 100% require the loan to be paid in full with an interest rate of the 2-Year US Treasury Yield at time of closing + 8% calculated from the time of interest accrual. PROJECT NAME: 7 – The Catherine Phase II ADDRESS: 1881 W North Temple 16 PERMANENT USES Use Amount % of Cost Land2 $3,600,000 8.0% Hard Costs $29,314,459 64.9% Soft Costs $2,169,453 4.8% Developer Fee $4,014,863 8.9% Financing Expense $4,062,000 9.0% Contingency $1,733,837 3.8% Reserves $300,000 0.7% Total $45,194,612 100% PROJECT SUMMARY From Developer: “22 Communities LLC (22) (Applicant, Sponsor, Developer, Owner) and KTG Holdings, LLC (KTG) acting as the Sponsor, and Developer, Owner (collectively as "Parties”) are pleased to apply for the April 2024 Private Activity Bond round for the new construction of The Catherine Phase 1. The Catherine will be a 2-phase 2-building 378 unit apartment project directly southeast of the 1940 W North Temple Trax station at 1881 W North Temple, Salt Lake City, Utah. Of the 378 units listed above,144 units will be a part of this Phase 2 Application and will be restricted to incomes at 60% of the Area Median Income (AMI). DEVELOPER SUMMARY From Developer: “Jake has over a decade of development, design, and project management experience with public, for-profit, and nonprofit entities. While at the Salt Lake City Housing and Neighborhood Development Department, Jake planned the disposition and redevelopment of city-owned assets and oversaw CDBG funded construction projects. Following that, Jake spearheaded the creation and early growth of CW Urban, a fast-growing Utah development company. He stayed on as the Director of Acquisition and Development, overseeing acquisitions, entitlements, and design for all infill and mixed-use developments. Next, Jake was the Director of Real Estate Development at Neighborhood Housing Solutions, a non-profit Real Estate Development company. He was responsible for all single-family subdivisions and multi-family tax credit developments. This work included the acquisition and initial concept planning for a 100-acre master-planned community in Smithfield Utah, and the development and management of a LIHTC multi-family portfolio. Most recently he was a managing member of Defy Co.labs where he was the Director of Development and Design and spearheaded a 140- unit LIHTC project called Colony B along with multiple other entitlement projects. Jake has been the development lead on over 20 development projects and underwritten hundreds more equating to over 1000 units over multiple Utah communities. Each project has had its unique challenges from environmental clean up to mechanical parking garages or unique entitlement processes. Jake has faced each challenge with creativity, passion and joy for the privilege to participate in the building of communities where people will live out their lives. Jake holds a bachelor’s degree in Business Management, a master’s degree in Real Estate Development, and an Urban Planning Certificate from the University of Utah.” 2 Land cost is based on appraised value. PROJECT NAME: 7 – The Catherine Phase II ADDRESS: 1881 W North Temple 17 SITE MAP PROJECT RENDERINGS PROJECT NAME: 7 – The Catherine Phase II ADDRESS: 1881 W North Temple 18 ATTACHMENT C: HOME FUNDS REQUIREMENTS 19 As part of the FY2023-2024 NOFA, Numerous HUD HOME funds are available. An overview of the HOME Program is available here: https://www.hudexchange.info/programs/home/home-overview/ and is located within 24 CFR 92.1 of the Code of Federal Regulations. Details on the different categories of funds are available here: FUNDS CATEGORY AMOUNT*ADDITIONAL DETAILS HOME Program Income**$6,939,710 24 CFR 92 (F) https://www.hudexchange.info/programs/home/home-overview/ HOME ARP Development**$1,501,608 https://www.hudexchange.info/programs/home-arp/overview/ HOME Development Fund**$726,291 24 CFR 92.206(a): https://www.ecfr.gov/current/title-24/subtitle- A/part-92/subpart-E/subject-group-ECFRf448ea7bbdfb69a/section- 92.206 HOME Community Housing Development Organization Funds** $351,841 Additional Requirements are located here: •24 CFR 92.208 •24 CFR 92.300 •24 CFR 92.301 ATTACHMENT D: RESOLUTION 20 21 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. AMENDMENT: Affordable Housing – FY2023-2024 Competitive Housing Development Loan Program (HDLP) Funding Allocation Amendments RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING CERTAIN CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, the RDA Board of Directors (“Board”) approved the Housing Funds Allocation Policy (“Funds Policy”), Resolution R-1-2022, which establishes policies with respect to dedicating and directing resources for the development and preservation of housing based on funding source (“Housing Funds”). WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan application and review process for the Competitive Housing Development Loan Program (“HDLP”) funds pursuant to the HDLP policy set forth in resolution R-2-2022 (the “HDLP Policy”) and the RDA’s Housing Funding Priorities for Fiscal Year 2023-2024 set forth in R-8- 2023. WHEREAS, pursuant to Resolution R-1-2024, passed by the Board on March 19, 2024, the Board previously allocated $15,426,164 of Competitive HDLP funds to a number of affordable housing development applicants (“2024 HDLP Allocation”). WHEREAS, as part of the 2024 HDLP Allocation, the Board approved a $1,000,000 allocation to The Catherine Phase 1 and a $134,323 allocation to The Catherine Phase 2 (collectively with The Catherine Phase 1, the “Catherine Project”) to fund construction of affordable housing located at 1881 West North Temple in Salt Lake City. WHEREAS, following the Board’s approval of the HDLP funding allocations, RDA staff received a request to amend the proposed loan terms for the Catherine Project to accommodate use of the funds for property acquisition in addition to construction, along with changes to the terms. WHEREAS, the Finance Committee has reviewed the amendment request and recommends the term amendments described in Exhibit A be approved by the Board. 1 22 WHEREAS, following the Board’s approval of the proposed amendments set forth on Exhibit A, the RDA shall provide a 24-month conditional commitment period, starting from March 19, 2024, during which the approved applicant shall have the opportunity to obtain needed financial, legal, and regulatory approvals, as well as satisfy other conditions determined by the RDA, to finalize the loan terms. WHEREAS, pursuant to the HDLP Policy, applicants that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocation and amended preliminary terms as further described in Exhibit A, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, the loan agreements, and other relevant documents consistent with the funding allocations and preliminary terms contained on Exhibit A and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this day of June 2024. Alejandro Puy, Chair Approved as to form: Salt Lake City Attorney’s Office Sara Montoya Date:May 24, 2024 The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting. Erin Mendenhall, Executive Director Attest: City Recorder 2 23 EXHIBIT A: THE CATHERINE PROJECT PROPOSED TERM AMENDMENTS PROJECT/APPLICA NT ADDRESS LIHTC Awarded? WEIGHTED PROJECT PRIORITY SCORE/INTEREST RATE REDUCTION* FUNDIN G REQUE ST AS- APPROVED PRELIMINAR Y TERMS*** PROPOSED PRELIMINA RY TERMS** RDA FUNDS HOME Progra m Incom e TOTAL FUNDING RECOMMENDATI ON FUNDIN G RANKIN G The Catherine Phase 1 22 Communities 1881 W N Temple Applying, 4% Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 4 $1,000,000 Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 1.0%**** Acquisition: 2 Yr Term, Balloon or Conversion. Construction to Perm: Term: 16 year Amortization: 40 year Cash Flow Repayments $1,000,00 0 $1,000,000 10 The Catherine Phase 2 22 Communities 1881 W N Temple Applying, 4% Family Housing: 3 Transportation Opportunities: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 6 $134,323 Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 1.0%**** Acquisition: 2 Yr Term, Balloon or Conversion. Construction to Perm: Term: 16 year Amortization: 40 year Cash Flow Repayments $134,323 $134,323 10 TOTAL $1,134,323 $134,323 $1,000,00 0 $1,134,323 * Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from Project Priorities met may require Board approval. ** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2023-2024 Housing Development Loan Program ( HDLP) Guidelines. Changes to repayment type may occur ( hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or it required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loan; consideration may be made for other government entity loans if required through their policies. Funds may be disbursed in a lump sum if required by senior lender(s). *** While reviewing applications, the Committee took into consideration their February 1, 2024 High Opportunity Area HDLP funding recommendation and agreed to maintain their submitted recommendation to fund 515 Tower – Conversion 1 with High Opportunity Area funds. The Committee’s competitive HDLP funding recommendations incorporate the previously submitted High Opportunity Area recommendation. ****If the Developer is unable to secure tax credits, financing, or meet conditions to convert the loan to a construction to permanent loan, and cannot fulfill the affordable housing obligation, the 30-year deed restriction on the property could be removed and the RDA’s 1% acquisition interest rate would be replaced by the rate of the United States Treasury Yield Curve of the loan term at time of closing plus 800 basis points (i.e. 2-Year yield + 8%) of the repayment of the HOME and RDA funds. NOTE: For all loan awards greater than $899,999, the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels, but it would not restrict the ability to have backup generators for emergencies. 24 3 USA Climbing at Rio Grande RDA Board Meeting June 11, 2024 Requested Action Consideration of the resolution and proposed ground lease terms with USA Climbing to facilitate the construction of the organization’s permanent headquarters and national training facility in the Rio Grande District. Next Steps If approved, the RDA and USA Climbing will enter into an exclusive negotiation agreement to memorialize both parties’ commitments until all conditions are met and final ground lease and development agreements can be executed. USA Climbing Headquarters & National Training Center Provide competitive athletes with the terrain, spaces, and support they need to achieve their best. Host large-scale climbing events such as National Championships, World Cups, and World Championships, with spectator counts up to 1,500 indoors and 5,000 outdoors. Serve as a resource to provide indoor climbing access to the entire community, including underserved populations. Serve as the headquarters of the USA Climbing organization. Provide true accessibility for all as a principal aspect of the design. USA Climbing Project Goals: A Catalytic Activation Opportunity to have something tangible happening while V&I Plan is finalized and other developers secured. Exciting use that could help attract developers/tenants for other sites. May spur other South Block landowners to make plans for their properties. Would lend the Rio Grande District an identity and focus that aligns with natural/cultural context of SLC. Would attract visitors to district during off- peak hours (early mornings and evenings). 6 - 10 large multi-day events planned to be held per year. Would bring awareness to SLC as a world-class climbing destination. Site & Project Details Located at southwest corner of 500 W/300 S New structure: 65-75 feet tall; approx. 45,000 sf footprint Adaptive reuse of SL Mattress Co. Building Outdoor plaza that can be utilized for USAC- hosted competitions and other public events Lease Area To include: Building footprints (including SL Mattress) and setback areas between buildings and adjacent ROWs (~1.12 acres) Outdoor plaza (~0.6 acres) = ~1.72 acres *Plaza area to be leased at no cost Lease Rate Fee simple Fair Market Value of Lease Area x 5% Annual Lease Rate to be escalated every 5 years, based on previous 5 years’ average consumer price index (CPI) Minimum escalation of 2% and maximum of 5% YR 1: $7,289,295 x 5% = $364,465/year Requested Lease Abatement Years 1-6: No lease payments made during construction/stabilization Year 7: 45% of Escalated Annual Lease Rate due Year 8: 50% of Escalated Annual Lease Rate due Year 9: 55% of Escalated Annual Lease Rate due Years 10-99: 60% of Escalated Annual Lease Rate due YR 10: $379,043.37 * 60% = $227,426.02 Common Area Maintenance (CAM) fees to be collected from all Rio Grande District lessees. USA Climbing CAM fee = $1.50/sf of gross floor area To be charged with same levels of escalation/abatement as the annual lease rate. Common Area Maintenance (CAM) Fees FINANCIAL USES IMPLEMENTATION RDA CONTRIBUTION Adaptive Reuse of SL Mattress Co. Building USAC will fund and construct, with RDA contribution.$6 million Outdoor Plaza - USAC will fund and construct, with RDA contribution. -USAC will manage future plaza. -RDA will maintain future plaza, utilizing CAM fees. $1 million Demolition USAC will fund and implement demolition, with RDA contribution.$120,000 Environmental Remediation USAC will fund and implement remediation, with RDA contribution.~$200,000* TOTAL DIRECT CONTRIBUTION TO USAC PROJECT:~$7,320,000 Relocation of State Warehouse Users & Art Collection RDA to work with State of Utah to find temporary location until permanent facility at Capitol is completed (currently under construction).~523,000* Shared Parking Structure RDA exploring feasibility of financing/developing structure. USAC will lease future parking allocation from RDA.~$31 million* TOTAL OUTSIDE COSTS:~$31,523,000 Associated Budget Impacts *Cost estimates Additional Community Benefits Rehab and activation of SL Mattress Co. Building Design, construction, management of outdoor plaza 5-year community benefits plan with progress reports to RDA BOD, to include: youth programming through partnerships with K-12 schools, workforce development opportunities, efforts to expose non-traditional community members to sport based on income or other key measures, and transportation demand management strategies to reduce auto dependency and encourage use of alternative modes of transportation. Next Steps Execute Exclusive Negotiation Agreement (ENA) to memorialize commitments. USAC to refine design and launch capital funding campaign to support construction costs. Coordinate on design and construction of District-wide public improvements. When all conditions have been met, execute ground lease and development agreements. Salt Lake Mattress Co. Building Former State-owned warehouse at 500 West/300 South Proposed Location of Shared Parking Structure & Interim Parking MAYOR ERIN MENDENHALL Executive Director REDEVELOPMENT AGENCY of SALT LAKE CITY DANNY WALZ Director STAFF MEMO DATE:May 24, 2024 PREPARED BY:Ashley Ogden, Senior Project Manager Marcus Lee, Project Coordinator Cara Lindsley, Deputy Director RE:USA Climbing at Rio Grande District – 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 ~$7.3 million in financial contribution 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 Rio Grande District 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 RDA investment in the project, which would be funded via allocations that were made as part of FY2024 Budget Amendment #2. If the proposed term sheet is approved, 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. 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 are preparing to compete at the 2024 Paris Summer Olympics. 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 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 Rio Grande District. As the Rio Grande District Vision & Implementation Plan was actively in progress, negotiations were concurrent 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 Rio Grande District planning workshops and outreach events. RDA Staff welcomes the opportunity to continue to work with USA Climbing to make the vision for the Rio Grande District 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 B, Rio Grande District 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 late Summer 2025 and, if feasible, 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 D, 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 Rio Grande District, Salt Lake City, and the State of Utah: •Supported by a $15 million investment from the State of Utah (already appropriated). •Lends the Rio Grande District 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 in the Rio Grande District while developers for other sites are solicited. •Will be a catalytic activation to generate excitement for the Rio Grande District project, help attract developers/tenants, and spur adjacent private landowners to make plans for their properties. •Will result in the creation of 50-60 new jobs. •USA Climbing has an estimated events-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 Years 1-6: USA Climbing will not make any lease payments during the first six years to account for construction and stabilization. o Year 7: USA Climbing shall make a payment that is equal to 45% of the escalated annual lease rate. o Year 8: USA Climbing shall make a payment that is equal to 50% of the escalated annual lease rate. o Year 9: USA Climbing shall make a payment that is equal to 55% of the escalated annual lease rate. o 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 Rio Grande District developers 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 Activation of the historic Salt Lake Mattress Company Building as described above. o 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 E. 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 Rio Grande District 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 Rio Grande District 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 IMPACTS: The table below summarizes RDA budget impacts associated with the USA Climbing project and attached term sheet. The planned shared 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. $1 million Adaptive Reuse of SL Mattress Co. Building •USA Climbing will fund and implement construction, with RDA contribution. $6 million Demolition •USA Climbing will fund and implement demolition, with RDA contribution. $120,000 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 Shared Parking Structure •RDA exploring feasibility of financing/developing structure. •USA Climbing will lease future parking allocation from RDA. ~$31 million Relocation of State Warehouse Users & Art Collection •RDA to work with State of Utah to find new temporary location until permanent facility at State Capitol is completed (currently under construction). ~$523,000 (cost estimate) TOTAL OUTSIDE COSTS ~$31,523,000 NEXT STEPS: It is requested that the Board review the proposed term sheet and consider approving via attached resolution. If 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 late Summer 2025. •RDA staff will work with USA Climbing to identify and incorporate short-term infrastructure needs into the larger Rio Grande District 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 April 16, 2024, the RDA Board adopted a resolution approving FY2024 Budget Amendment #2, which allocated $8,100,000 to activities related to Rio Grande District property disposition and site work. ATTACHMENTS: A. Proposed Resolution and Term Sheet B. Rio Grande District Site Plan C. Proposed Lease Area D. Preliminary Project Renderings E. Proposed Parking Locations ATTACHMENT A 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 , 2024. , 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 USA CLIMBING AT RIO GRANDE DISTRICT Draft Development and Ground Lease Agreement Term Sheet Purpose The purpose of ground leasing Redevelopment Agency property 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 Rio Grande District. 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 12 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 Rio Grande District property 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 Rio Grande District property 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 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. 3 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. 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, or if the proposed temporary parking location becomes unavailable for this use, 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. 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. 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 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. 4 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. •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. o An RDA-approved community benefit plan/strategy. o 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 USA Climbing’s commitment to comply with all applicable laws and regulations. o 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 USA Climbing’s obligation to pay the applicable Lease Rate and CAM fees. o 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. o Submission and approval of the community benefits plan. o An obligation for USA Climbing to provide the RDA annual progress reports on the performance of the public benefits. 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. o 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 Temporary Surface Parking Lot Shared Parking Structure Exhibit B: Proposed Future Parking Areas 7 Exhibit C: Planned Neighborhood Midblock Street Connections 8 ATTACHMENT B RIO GRANDE DISTRICT SITE PLAN ATTACHMENT C PROPOSED LEASE AREA ATTACHMENT D PRELIMINARY PROJECT RENDERINGS .,.USA VcuMBING VCBd ',.USA VcuMBtNG ■■••·· VCB ATTACHMENT E PROPOSED PARKING LOCATIONS Page | 1 RDA BUDGET STAFF REPORT REDEVELOPMENT AGENCY BOARD of SALT LAKE CITY TO:RDA Board Members FROM: Jennifer Bruno, Ben Luedtke and Allison Rowland DATE:May 21, 2024 RE: Redevelopment Agency (RDA) Budget – FY 2025 BUDGET BOOK PAGES: Key Changes pages 81-90, Department Overview 119-121 and 241-244, Staffing doc: 313 The Redevelopment Agency is a tool of the City, as enabled by State law, that allows for the capture of property tax increment in defined areas to reinvest back in those same communities. The stated mission of the City’s RDA is “to revitalize neighborhoods and business districts to improve livability, spark economic growth, and foster authentic communities, serving as a catalyst for strategic development projects that enhance the City’s housing opportunities, commercial vitality, public spaces, and environmental sustainability.” Note that the RDA is in the process of being renamed the Community Reinvestment Agency or CRA to align with state law which is expected to be completed by the start of the new fiscal year on July 1, 2025. The Mayor’s FY 2025 Redevelopment Agency Recommended Budget includes tax increment spending in all project areas for projects, loan funds, as well as department administration. See page 241 of the Mayor’s Recommended Budget book for an overview of the Department including the full mission statement and core values. Staff has also included Attachment 1 showing the RDA’s updated guiding framework adopted by the Board in December 2021, which comprises the mission statement, core values and livability benchmarks. The total proposed FY 25 budget is $84.7 million which is $3.9 million more (5%) than FY24. RDA revenue includes property tax increment, loan proceeds, parking garage and commercial space rental revenues, interest income, an annual transfer from Funding Our Future for affordable housing, and private donations for the Eccles Theater. The largest non-donation source of revenue by far is tax increment, which will generate $55.4 million in FY 25 from twelve active project areas (up 18.4% from $46.8 million in FY 24). The Administration provided the following policy goals for the proposed FY 25 budget: •“Affordable Housing - In accordance with the FY25 Affordable Housing Funding Priorities, this goal prioritizes the deployment of the Agency’s housing funds for the development of affordable housing units targeted for families and the deeply affordable as well as the facilitation of wealth building opportunities and home ownership.  •Commercial Opportunities – The Agency has been collaborating with City staff in Economic Development and Housing Stability to inform the Board on existing commercial funding programs prior to presenting proposed/amended programs to the Board in the coming months. The proposed budget includes allocations for Commercial Assistance Programs that will be made available as the Agency’s programs are updated and approved.  Project Timeline: 1st Briefing: May 21, 2024 2nd Briefing: TBD Budget Hearing: May 21, and June 4, 2024 Potential Action: June 11 or 13 (TBD) Page | 2 •Infrastructure – The proposed budget includes the allocation of funds for the continued development of public infrastructure projects such as Folsom Corridor and Japantown, as well as potential improvements and capital repairs to the Gallivan Center. •Public Art – The proposed budget also includes allocations of funds across multiple project areas for the installation of public art. In the 9-Line area, additional funds are requested for the installation of a second westside public art installation within the project area. Funding allocations have also been requested for the re-installation of the “Gulls of Salt Lake City” sculpture as well as a public art project within the CBD area.” State law requires that tax increment be used within the project area where it was generated unless it is used for housing affordable at 80% area median income (AMI) or below, or the Board makes a determination that spending funds outside the project area directly benefits that project area (such as was recently done for investment in properties around the Smith’s Ballpark). Other agency revenue sources are more flexible and may be spent outside of project areas for housing and economic development purposes, again within state law limitations. (These are listed in the Additional Information section below). Some RDA divisions are funded through pass-through allocations from project areas or other revenue sources (see chart below), which increases flexibility of those funds but reduces available budget in project areas where they originate. The proposed budget for the RDA adds one financial analyst FTE for coordinating RDA activities across multiple project area budgets and funds. This brings the total RDA employee count to 22, and 13 FTEs for Gallivan- related maintenance and programming. Note: the budget for Gallivan-related maintenance and programming is now handled in a donation account, which is unique for a public space). Gallivan funding and FTEs were transferred to the RDA from the Public Services Department in the FY21 annual budget. The following chart outlines the operating budget for each division of the RDA, and separates those that are funded through tax increment, and those that are funded through pass-through revenue from project areas: Page | 3 2024-25 Proposed Dollars % Centra l Business District $ 24,644,694 $ 29,893,016 $ 5,248,322 21% Block 7 0 (Eccles Thea ter Block) $ 11,053,759 $ 11,065,164 $ 11,405 0% Depot District $ 7,227 ,908 $ 7,095,401 $ (132,507)-2% Granary District $ 1,394,593 $ 1,748,249 $ 353,656 25% North Temple $ 1,351,992 $ 1,952,466 $ 600,47 4 44% North Temple Viaduct $ 2 ,7 74,419 $ 3,155,765 $ 381,346 14% Northwest Quad CRA (North of I-80) $ 1,398,548 $ 2 ,603,998 $ 1 ,205,450 86% Westside Community Initiative (I nland Port Legislation set aside for h ousing ) $ 1,835,469 $ 1,835,469 $ - 0% Stadler Rail $ 141,2 97 $ 168,744 $ 27,447 19% State S treet - new in FY 23 $ 5,788,520 $ 6,517,836 $ 729,31 6 13% 9 Line - new in FY 2 3 $ 3,455,989 $ 3,307,218 $ (148,771 )-4% Block 67 North - new in FY 25 - West Quarter Block $ 365,771 $ 365,771 West Capitol Hill (no lo nge r c o lle c ting) $ 384,332 Administration $ 4,428,662 $ 5,167,581 $ 738,91 9 17% Housing Develoment Fund** $ 10,236,967 $ 2 ,902,000 $ (7 ,334,967)-72% Primary Housing Fund $ 2,394,582 $ 3,602,241 $ 1,207,659 50% Secondary Housing Fund $ 1,000,000 $ 1,000,000 $ - 0% Progra m Income Fund $ 1,449,692 $ 1,559,233 $ 109,541 8% Revolving Loan Fund* $ 2 2 6,7 50 $ 332,400 $ 105,650 47 % TOTALS $80,803,8 41 $84,656,884 $ 3,853,043 5% Project Areas - Funded primarily with Tax I ncrement: Accounts funded internally (with transfers from General Fund or other project areas) Other *RDA Staff indicates the "Commercial Assistance Program" line item in many of the project areas may b e administered through the Revolving Loan Fund although it would be tracked in each project area. **The Housing Development Fund was much higher in FY 24 due to one-time infusion of money from dormant HUD Funds. Expenditu res by Project Area/Accou n t Difference2023-24 Adopted Page | 4 The FY 25 budget continues the process of bringing budgeting for RDA dollars into context with other City department budgets, and it is included in the Mayor’s Recommended Budget book. The Department budget is shown in summary form on page 241, and staffing document on page 313. Key changes are listed on pages 80-90. The RDA budget can have follow-up discussions through May and June as needed. It will also have public hearings on May 21 and June 4, with tentative adoption scheduled for June 11 or 13. Central Business District, 29,893,016 Depot District, 7,095,401 Granary District, 1,748,249 North Temple, 1,952,466 Block 70 , 11,065,164 State Street, 6,517,836 9 Line, 3,307,218 North Temple Viaduct , 3,155,765 Northwest Quadrant CRA, 2,603,998 Stadler Rail, 168,744 Block 67, 365,771 Westside Community Initiative (Housing $ from Inland Port), 1,835,469 FY 25 Project Areas funded through Tax Increment FY 25 Multi-use Funds - funded through other sources including transfers from project areas Revolving Loan Fund, 332,400 Program Income Fund, 1,559,233 Secondary Housing Fund, 1,000,000 Primary Housing Fund, 3,602,241 Housing Development Trust Fund, 2,902,000 Page | 5 KEY ELEMENTS OF THE MAYOR’S FY 2025 RDA BUDGET PROPOSAL Staff has highlighted key areas of the Mayor’s Recommended FY 2025 RDA Budget: 1.One additional Financial Analyst FTE – The proposed FY 25 budget proposes to add an additional FTE to assist with financial analysis and tracking within the RDA. The fully loaded (salary and benefits) annual cost for this FTE is$137,653. The Administration reports the position is planned to be funded for 10 months to recognize the time from job posting to hiring at a cost of $112,211. The Council may wish to request how this FTE may assist in further coordinating RDA financing with overall City financing plans for bonding and investment in the City. 2.RDA funding for affordable housing – The Mayor’s Recommended FY 2025 budget reflects a continuation 0f the policy approach started in FY 20, to streamline affordable housing development under the RDA and affordable housing programming under the Housing Stability Division of the Community and Neighborhoods Department. Still, some recent efforts to develop permanent supportive housing and community land trust activities have been managed in Housing Stability. One of the initial goals was to create a “one-stop shop” for housing developers seeking financial assistance to deliver affordable housing, recognizing that the RDA can make affordable housing investments Citywide. The total housing investment proposed in the FY 25 RDA budget is $9.3 million, a decrease from FY 24 levels (although the FY 24 budget was an anomaly due to the one-time transfer of dormant HUD funds). It should be noted that the Board could choose to allocate additional funds for housing programs from any of the project areas (subject to project area regulations), or program income fund. For example, there are several strategic intervention fund holding accounts that are intentionally flexible for a variety of potential investment including affordable housing which the Board could instead dedicate to housing programs. See chart below for more details on distribution of funds: Annually, the RDA proposes a variety of strategies to implement various housing goals of the City with its funding sources. The Board adopted the FY 25 strategy in April. See Attachments 2 & 3 for the final guiding document and strategy. The focus areas for this year are: a. Wealth Building Opportunity – Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. b. Affordable Family Housing w/ Amenities for Children – Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes with at least three or more bedrooms. Affordable family housing is generally defined as units with three or more bedrooms affordable to those earning 80% of the area median income (AMI) or below. c. Deeply Affordable Housing – Expand the availability of units for extremely low-income households, thereby providing more housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those earning 40% of the area median income (AMI) or below. d. Neighborhood Commercial and Services - Promote an array of commercial spaces that support the neighborhoods, such as daycares, restaurants, and retail spaces. This priority ensures that as housing continues to be built throughout the City, residents and neighbors continue to have access to neighborhood services and amenities. e. Expand Opportunity - Provide affordable housing within areas that have access to resources that may improve a person’s chances of upward economic mobility as identified on RDA’s High Opportunity Area Map. In previous years, the RDA Board dedicated funding towards areas of high opportunity. With the majority of that funding expended, including this priority maintains that the Board wants to see affordable housing expanded to Salt Lake City’s eastside neighborhoods. The following chart summarizes the sources and proposed uses in the various accounts: Page | 6 FY 2024 Adopted FY 2025 Proposed Change 9 Lin e Project Area ADU fu nds (capital account continued from FY 24)1,455,680 0 Secon da ry Hou sin g & Develop men t Fu n d (formerly Project Area Hou sin g Fu n d) Sources Transfer from Depot District 1,000,000 0 (1,000,000) Transfer from State Street 0 1,000,000 1,000,000 Uses Housing Development Loan Program 0 1,000,000 1,000,000 Sunday-Anderson Senior Center 1,000,000 0 (1,000,000) Total Secon d a ry Hou sin g Fu n d 1,000,000 1,000,000 0 Prima ry Hou sin g & Develop men t Fu n d (formerly Citywid e Hou sin g Fu n d ) Sources Transfer from Depot 1,084,487 1,238,620 154,133 Transfer from State street 442,381 586,886 144,505 Transfer from 9 Line 265,378 303,072 37,694 Transfer from Granary 220,662 276,886 56,224 Transfer from North Temple 201,743 308,749 107,006 Transfer from NWQ 139,855 250,011 110,156 Transfer from Block 67 North 0 36,577 Loan Repayments 23,567 77,820 54,253 Transfer from Stadler Rail 14,130 16,115 1,985 Transition Holding Account 2,379 507,505 505,126 0 0 Uses 0 Housing Development Loans 1,000,000 2,684,859 1,684,859 Salt Lake School District Housing 380,762 417,382 36,620 Sunday Anderson Senior Center 1,013,820 0 (1,01 3,820) West Capitol Hill/Arctic Court Infill Housing 0 500,000 500,000 Total Primary Hou sin g & Developmen t Fu n d 2,394,582 3,602,241 794,702 Westsid e Commu n ity I n itia tive (NWQ Hou sin g) Sources Increment set-aside from Utah Inland Port Authority 1,401,589 1,835,469 433,880 Transition Holding Account 433,880 0 (433,880) Uses Strategic Intervention Holding Account 0 1,000,000 1,000,000 Wealth Building Housing Opportunity (Holding Account)1,135,469 835,469 (300,000) Wealth Building Housing Opportunity (Neighborworks)700,000 0 (700,000) Total Westside Commu n ity I n itiative 1,835,469 1,835,469 0 Hou sin g Developmen t Fu n d Sources Funding Our Future Housing Transfer 1,840,000 2,590,000 750,000 Loan Repayments 220,953 312,000 91,047 Reallocaiton of excess North Temple Viaduct Increment 1,700,000 0 (1,700,000) Transfer from Dormant HUD Funds (one-time)6,476,014 0 (6,476,014) Uses Competitve Housing Development Loans 7,836,967 902,000 (6,934,967) ADU Program Incentives (Citywide)1,000,000 0 (1,000,000) Wealth Building Housing Opportunities 0 2,000,000 2,000,000 Neighborworks Shared Equity Housing Project 1,400,000 0 (1,400,000) Total Hou sin g Develop men t Fu n d 10,236,967 2,902,000 (719,047) Total All Hou sing Fu nding 16,922,698 9,339,710 (7,582,988) RDA Hou sin g Fu n din g Page | 7 f. Family and Workforce Housing Holding Account – The Administration is proposing a line item specific to family and workforce housing in the Primary Housing Fund, and has provided the following additional information: “This is a separate appropriation that recently started to meet the requirement within the Interlocal Agreements with the School District for the State Street and 9-Line project areas. There is not a proposed use for them at this time. They could be appropriated via Board approval to a HDLP NOFA recommended project that meets the requirements (similar to how the High Opportunity Funds were utilized). Or they could be appropriated to a property acquisition or project that is developed intentionally to meet the requirements.” The Board may wish to discuss this allocation further with the Administration. g. Westside Community Initiative – This initiative is funded from the 10% set aside from tax increment in the Inland Port jurisdictional boundary, as mandated by the State’s Inland Port enabling legislation. It started receiving revenue in FY 22. The Administration provided the following information about the “Wealth Building Opportunities” line item within this fund: “It would be a competitive NOFA for projects that “Facilitate the ability for low- moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models.” 3.Administrative Budget – The FY 2025 proposed Administrative budget for the RDA represents an 11% increase ($435,007) over the FY 24 budget. It includes transfers of tax increment revenues from various project areas to cover the approximately $5.2 million in administrative costs, which includes 1 additional FTE to the central RDA staff and raising the total to 35 FTEs (which includes 13 FTEs relating to the Gallivan Center). The 13 FTEs related to the Gallivan Center are budgeted in the donation account, although they are considered under the purview of the RDA, as reflected in the staffing document. The following charts delineate the sources of funding for the Administrative budget, as well as the specific uses: Page | 8 FY 2 02 4 Adopted FY 2025 Proposed $ Change % Change Central Business District 2 ,464,469$ 2,72 6,570$ 262,101$ 11% Depot District 813,365$ 928,965$ 115,600$ 14% Granary District 165,496$ 207,666$ 42,170$ 2 5% North Temple 100,87 2$ 2 31,561$ 13 0,689$ 130% North Temple Viaduct (lim ited to 1 .5% of increm ent)41,616$ 46,796$ 5,180$ 12% Stadler Rail 7 ,065$ 8,058$ 993$ 14% Northwest Quadrant CRA (7.5% of total increm ent set by agreem ent)139,855$ 250,011$ 110,156$ 79% State Street 442,381$ 485,760$ 43 ,379$ 10% 9 Line 253,543$ 263,906$ 10,363$ 4% Block 67 18,288$ 18,288$ n/a Block 70 (does not allow for Adm inistrative collection)-$ -$ -$ n/a NWQ Housing Fund (10% from I nland Port Area - not intended for Adm in)-$ -$ -$ n/a Revolving Loan Fund -$ -$ -$ Program Income Fund -$ -$ -$ Primary Housing Fund -$ -$ -$ Tota l 4,428,662$5,167,581$ 435,007$ 11% RDA Ad min istra tive Bu d get - Sou rces Central Business District 53% Depot District 18% Granary District 4% North Temple 5% North Temple Viaduct (limited to 1.5% of increment) 1% Stadler Rail 0% Northwest Quadrant CRA (7.5% of total increment set by agreement) 5%State Street 9% 9 Line 5% Block 67 0% Page | 9 a. No official policy guides how much each district contributes to the administrative budget, although to some extent it is related to available increment. The Central Business District is typically the largest contributor, although the percentage has varied. In FY 25 it is proposed to provide 53% of the administrative budget compared to 56% in FY 24 (the CBD project area expires in 2042). Several recent project areas either cap or prohibit spending project area funds on Administrative costs (usually as a result of negotiations with various taxing entities). The Board may wish to ask the Administration to evaluate the overall strategy for funding the administrative budget in future years, particularly as the Depot District and Granary District project areas expire in the next couple years which provide 22% of the total Administrative Budget funding. The Administration has indicated draft recommendations will be developed for the Board to review. Staff note: there is no statutory prohibition against using General Fund dollars to fund Redevelopment Agency employees, since they are City employees. The City’s elected officials could elect to reimburse RDA for a portion of the housing duties that they perform. b.Because RDA revenues are estimated and can come in either higher or lower than projected, the Board may wish to discuss policy guidance on how the RDA should handle unexpected shortfalls in tax increment revenues, particularly as it relates to the administrative budget, which is generally a fixed and ongoing cost (salary and benefits). Staff is inquiring about the level of fund balance remaining after this budget. Board Members previously expressed interest in aligning project area fund balances with fixed costs and contractual obligations to ensure sufficient funding is available to cover those expenses if tax increment significantly decreases in a future year. RDA Administrative Budget - Uses FY 2024 Adopted FY 2025 Proposed Change % Personal Services - RDA 2,756,779$ 3,170,296$ 413,51 7$ 15% Operating and Maintenance 375 ,000$ 450,000$ 7 5,000$ 21% Charges and Services 296,883$ 450,000$ 7 8,323$ 39% Administrative Fees 1,000,000$ 1,000,000$ -$ 0% Allocation to fu nd balance -$ 97,285$ -$ 0% Total RDA Bu dget 4,428,662$ 5,167,581$ 430,007$ 11% CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 4.Redevelopment Agency Capital Project and Holding Account Proposals – The FY2025 RDA budget includes funding for 35 capital projects and/or capital reserve accounts. Overall funding for RDA capital projects is $29,153,507 across all project areas and funds which is $4,551,689 more than the adopted annual budget last year. The table below provides a summary of the FY2025 proposed projects, provides a brief description, the dates that funding was approved by the Board in earlier budget openings, and potential policy questions for the Board to consider. Holding accounts are sometimes created when the RDA staff recognizes that multiple years of funding are needed to facilitate a major project (such as the Rio Grande District infrastructure project), or when a proposal is still in the development process (such as the Commercial Assistance Loan Program). FY2025 Review of All RDA Account Balances with New Workday Financial System – The Board adopted a FY2023 legislative intent to review all RDA accounts with positive balances to ensure the projects and programs still align with current Board policy priorities. The City is shifting to a new financial system called Workday which went live on July 1, 2023, to coincide with the start of FY2024. The Board may wish to ask the Administration when this review could begin in FY2025. Advisory Board Review of RDA Capital Project Proposals – The Board may wish to consider whether it would add value to encourage the Administration, in future years, to have RDA capital project requests go through the same public process/resident advisory board vetting and recommendations that General Fund CIP applications do. The Board has previously discussed that opportunities to leverage RDA funds with other City and private resources are enhanced when the information is processed in concert. An alternative approach could be to ask the Redevelopment Agency Committee or RAC to review and provide funding recommendations to the Board. Capital Project Accounts Do Not Lapse at End of Fiscal Year – If approved by the Board, then these would be considered capital accounts and funds would not lapse to the project area’s fund balance if unspent by the end of the fiscal year. Project Area Project Name FY2025 Proposed Description Policy Questions Strategic Intervention Fund Holding Account $ 2,540,597 Labeled "Downtown for All" funding for projects that support families such as daycares, opportunities for play, and family-sized housing as well as amenities for every generation of individuals, families, residents, and visitors. The Board may wish to ask if there is a specific project in mind that accomplishes this goal, and discuss whether these funds should be kept flexible for a variety of possible uses. The Board could provide more specific prioritization of the funds. Central Business District (subtotal $3,940,597)Gallivan Center Playground $ 500,000 A playground for children of all ages. The project will focus on creating safe, accessible play structures to enhance the community’s recreational facilities. The Board may wish to ask how a playground was selected as a top priority for Gallivan Center from the list of nearly 40 projects in the 20-year Plaza Plan prioritization list? Page | 11 Project Area Project Name FY2025 Proposed Description Policy Questions Maintenance and Repairs of Gallivan Center $ 250,000 For capital maintenance of the Gallivan Center potentially of the structure, parking garage, or larger amenities. Note there is also $238,733 in the Program Income Fund for a total of $488,733 to maintain RDA-owned property at Gallivan Center. The Board may wish to ask which capital maintenance needs are greatest at the Gallivan Center. In recent years, the Board has approved multiple appropriations for the parking garage and staircase. Japantown Art $ 300,000 Installation of a public art piece with Japantown. Note there is also $36,577 for this project in the proposed Block 67 budget. The Board may wish to ask would these funds be used for a single large artwork or spread across multiple smaller projects, and does the Board want to prioritize either approach? CBD Public Art $ 250,000 New public art in the CBD The Board may wish to discuss whether these funds should be combined with the $300,000 for Japantown Art, or where else in the downtown to prioritize new public artworks. Japantown Construction Documents $ 100,000 Drafting of construction documents to implement the Japantown Design Strategy. The funding will be used to create detailed construction plans that are crucial for guiding redevelopment efforts and revitalizing the neighborhood while honoring its historical significance. The Board may wish to continue the discussion of a potential bond to fund construction of Japantown improvements. The total estimated cost was $7,447,172 in the April 2021 report. However, inflation and supply chain impacts since then could have doubled the total cost for all the improvements. West Capitol Hill (expired project area; no longer collects tax increment) Arctic Court Infill Home Construction $ 384,332 Prior year budget amendments redirected funds from the new infill construction at 524 North Arctic Court to Marmalade Plaza due to rising construction costs. Note there is another $500,000 for the project in the Primary Housing Development Fund for a total project cost of $884,332. Some Board Members previously discussed a desire to construct an entry-level home, affordable family-sized home, adding the property to the City's Community Land Trust, and why the total project cost exceeds the median home price in the City by over $250k. Page | 12 Project Area Project Name FY2025 Proposed Description Policy Questions Rio Grande District Infrastructure Improvements Holding Account $ 3,705,316 Additional funding for public infrastructure improvements to the two block Rio Grande District between 200 South and 400 South and 500 West and 600 West. Improvements include creation of new street segments to create smaller block sizes, utility upgrades to allow greater building densities, and a Festival Street (300 South) amenities. The Board approved $3,680,056 for this project in the FY2024 annual budget. The Board may wish to ask how the project would move forward if there isn't enough property tax increment to cover the total project cost. 2024 is the final year for the Depot District to collect property tax. Commercial Assistance Program Holding Account $ 500,000 This is one of multiple proposed holding accounts for commercial assistance pilot programs in different project areas. The Administration is developing draft policies for the pilot program that would come to the Board for review and adoption. Some prior year appropriations were repurposed for uses while the programs are still in development. The Board may wish to ask whether these funds may be needed to close the funding gap for the Rio Grande District infrastructure improvements (see item above). The Board may also wish to ask why a new program is proposed to be created in the final year of the Depot District's property tax increment collection, and what could be accomplished. Depot District (Last year of property tax increment collection; subtotal $4,705,316) Home Inn Rio Grande Maintenance $ 500,000 Adds to a reserve account to cover obligated maintenance and repairs at the Home Inn property in the Depot District owned by the RDA. The building provides 50 units of transitional housing. The Board may wish to ask if the funding level would fully meet the estimated cost for maintenance needs. Granary District (Second to last year of property tax increment collection) Commercial Assistance Program Holding Account $ 1,263,697 This is one of multiple proposed holding accounts for commercial assistance pilot programs in different project areas. The Administration is developing draft policies for the pilot program that would come to the Board for review and adoption. The Board approved $1,003,435 in the FY2024 annual budget for the same program. The Board may also wish to ask why a new program is proposed to be created in the last two years of the Granary District's property tax increment collection, and what could be accomplished. North Temple (subtotal $1,312,156) 10% School Fund Holding Account $ 100,344 Based on an Interlocal Agreement with the SLC School District, the Agency is obligated to set aside 10% of the tax increment generated for improvements that benefit schools served by the project area. Page | 13 Project Area Project Name FY2025 Proposed Description Policy Questions Strategic Intervention Fund Holding Account $ 861,812 A holding account for multiple potential uses depending on opportunities that arise in the project area such as property acquisition, public infrastructure improvements, site development, etc. The Board may wish to discuss whether these funds should be kept flexible for the variety of possible uses or the Board could provide more specific prioritization of the funds. Property Reuse Planning $ 300,000 Site costs and evaluation of development options for Agency-owned parcels along the Folsom Corridor. City Creek Daylighting $ 50,000 Concept and feasibility designs for resurfacing or "daylighting" a portion of City Creek from I- 15 to 1000 West. This project would be adjacent to the separate Folsom Trail project. Project goals include increasing access to nature, improving water quality and mitigating surface flooding. The Board may wish to discuss with the Administration how the project would move forward if property tax increment is insufficient to fully fund the total estimated cost which could be millions of dollars. Regent Street Parking Structure Capital Reserves Holding Account $ 100,000 Additional funding to a reserve account to meet potential obligations in the future that are required under the contract with PRI which provides parking for the Eccles Theater. Under the agreement, the Agency is required to contribute towards the maintenance and long term capital repairs of the parking structure. The Board approved over $365,907 for this holding account in the last three fiscal years. The Board may wish to ask when a structural assessment could be done to determine the age, remaining useful life, and costs for major repairs and replacement. Eccles Theater Ancillary Spaces Operating Reserve $ 475,000 The Board may wish to ask for examples of when these reserve funds would be used and whether the amount is sufficient to cover expenses in the event of an economic downturn. Block 70 (subtotal $780,323) Eccles Theater Fundraising Fulfillment Reserve $ 125,000 Project set up to manage various gift agreements related to the Eccles Theater and Regent Street. Page | 14 Project Area Project Name FY2025 Proposed Description Policy Questions Reinstallation of "The Gulls" Sculpture $ 55,323 Reinstallation of the sculpture, formerly installed in the façade of the Prudential Federal Savings building, which is now the Eccles Theater. The 100 bronze and nickel sculptures were originally installed in the 1960s. The Board may wish to ask whether the funds include fabricating replacements for the sculptures that disappeared or were damaged over the years. Regent Street Event Programming Reserve $ 25,000 Activation and programming of McCarthy Plaza and Regent Street. The intent is to leverage funds with other sources and coordinate efforts with County operations and theater staff. Northwest Quadrant (subtotal $353,900) Shared Costs Holding Account $ 353,900 Additional funding to a reserve account for a portion of the tax increment as approved within the project area budget. The funds are first prioritized for redevelopment activities that benefit the entire NWQ Project Area, are system wide, or that benefit multiple property owners or parcels. If this funding is approved, then the holding account would have a balance of over $1 million. State Street Strategic Intervention Fund Holding Account $ 4,003,894 A holding account for multiple potential uses depending on opportunities that arise in the project area such as property acquisition, public infrastructure improvements, site development, etc. The Board may wish to discuss whether these funds should be kept flexible for the variety of possible uses or the Board could provide more specific prioritization of the funds. 9-Line (subtotal $2,297,272) 9-Line Public Art $ 300,000 The Board may wish to ask whether these funds would be combined with the $300,000 for iconic Westside art approved in the FY2024 budget or would be for separate projects? Page | 15 Project Area Project Name FY2025 Proposed Description Policy Questions Strategic Intervention Holding Account $ 1,994,272 A holding account for multiple potential uses depending on opportunities that arise in the project area such as property acquisition, public infrastructure improvements, site development, etc. The Board may wish to discuss whether these funds should be kept flexible for the variety of possible uses or the Board could provide more specific prioritization of the funds. Some Board Members have expressed a desire to prioritize additional funding for the 9-Line ADU pilot program which is a requirement of the interlocal agreement with Salt Lake County to unlock additional property tax increment for the project area. Block 67 Japantown Art $ 36,577 Installation of a public art piece with Japantown. Note there is also $300,000 for this project in the proposed Central Business District budget. The Board may wish to ask would these funds be used for a single large artwork or spread across multiple smaller projects, and does the Board want to prioritize either approach? Demolition of former Deseret Industries Site in Sugar House $ 500,000 The address is 2234 South Highland Drive. The Board approved $550,000 for this demolition in the FY2024 annual budget. The Board may wish to ask whether the adjacent old Fire Station #3 would also be demolished, and whether additional funding is anticipated to be needed. In the FY2024 annual budget the $550,000 was estimated to fully fund the project but costs have doubled. Program Income Fund (subtotal $738,733)Maintenance and Repairs of Gallivan Center $ 238,733 For capital maintenance of the Gallivan Center potentially of the structure, parking garage, or larger amenities. Note there is also $250,000 in the Central Business District budget for a total of $488,733 to maintain RDA-owned property at Gallivan Center. The Board may wish to ask which capital maintenance needs are greatest at the Gallivan Center. In recent years, the Board has approved multiple appropriations for the parking garage and staircase. Primary Housing Fund (subtotal $3,602,241) Arctic Court Infill Home Construction $ 500,000 Prior year budget amendments redirected funds from the new infill construction at 524 North Arctic Court to Marmalade Plaza due to rising construction costs. Note there is another $384,332 for the project in the West Capitol Hill budget for a total project cost of $884,332. Some Board Members previously discussed a desire to construct an entry-level home, affordable family-sized home, adding the property to the City's Community Land Trust, and why the total project cost exceeds the median home price in the City by over $250k. Page | 16 Project Area Project Name FY2025 Proposed Description Policy Questions Housing Development Loans Holding Account $ 2,684,859 For inclusion in an upcoming Notice of Funding Availability (NOFA). Salt Lake City School District Family Sized Housing Holding Account $ 417,382 This set aside for family sized housing is a requirement of some interlocal agreements between the RDA and Salt Lake City School District. These funds could be included in an upcoming Notice of Funding Availability (NOFA) Secondary Housing Fund Housing Development Loan Program Competitive NOFA Holding Account $ 1,000,000 Note there are also housing development line items in other funds. Keeping the accounts separate is largely to help with tracking and reporting for compliance. The funds would be combined and/or added to a competitive Notice of Funding Availability (NOFA). Note there is also $902,000 in the Housing Development Fund for this same NOFA. Strategic Intervention Holding Account $ 1,000,000 A holding account for multiple potential uses depending on opportunities that arise in the project area such as property acquisition, public infrastructure improvements, site development, etc. The Board may wish to discuss whether these funds should be kept flexible for the variety of possible uses or the Board could provide more specific prioritization of the funds. Westside Community Initiative (subtotal $1,835,469) Wealth Building Housing Opportunities Holding Account $ 835,469 The Board approved $1,135,469 for this program in the FY2024 annual budget. Note there is also $2 million in the Housing Development Fund for the same program. The Board may wish to ask the Administration for a status update and timeline of next steps for the program's implementation, and whether any additional resources are needed. Page | 17 Project Area Project Name FY2025 Proposed Description Policy Questions Housing Development Loan Program Competitive NOFA Holding Account $ 902,000 For inclusion in an upcoming competitive Notice of Funding Availability (NOFA). Note there is also $1 million in the Secondary Housing Fund for this same NOFA. This funding includes $1.7 million from the North Temple Viaduct transfer to the Debt Service Fund above the annual bond payment. The Board recently expressed a preference that these funds be reinvested along the North Temple Corridor. The current proposal is to make the funds available citywide. The Board may wish to discuss whether to designate the funds for housing development along the North Temple Corridor or use citywide. Housing Development Fund (subtotal $2,902,000) Wealth Building Housing Opportunities Holding Account $ 2,000,000 The Board approved $1,135,469 for this program in the FY2024 Westside Communities Initiative annual budget. Note that WCI proposed budget also has $835,469 for the same program. The Board may wish to ask the Administration for a status update and timeline of next steps for the program's implementation, and whether any additional resources are needed. TOTAL $ 29,153,507 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 5.Other policy areas of the FY 2025 RDA budget a. Program Income Fund – The primary source of funds for this account are revenues generated from the Gallivan parking structure (approximately $1.2 million per year). The budget also includes rents for RDA commercial spaces. It is the most flexible funding in the RDA portfolio, as State law does not place limitations or expectations for how and where funds are spent. In recent years this account has been used to fill funding gaps for infrastructure projects in the Central 9th area and Rio Grande District, provided funding to assist with strategic acquisition along North Temple, as well as provide seed funds for new project areas (9-Line and State Street). When the Depot District and Granary District expire in the next couple years, Program Income Fund might be increasingly relied upon to fill the funding gap for the RDA’s Administrative Budget. This year the Administration is proposing to use these funds as follows: b. “Strategic Intervention” Holding Accounts – Over the last few budget cycles the Board has approved several allocations for “Strategic Intervention” in several project areas. RDA Staff provided the following policy information about goals for these funds. These funds have been used for timely investments in property purchases (several recent purchases have nearly or fully depleted existing strategic intervention accounts), along with other uses. The Board must approve releasing the funds from a holding account for specific uses. The Board may wish to discuss these line items with more specificity such as prioritizing policy goals for each area, given the quantity of funds that could build up. The Board could also discuss with the Administration using some of these funds for affordable housing development. •The Administration provided this information for general context on this approach: “The overarching goal of the Strategic Intervention line items within the various funds is to provide an appropriation into a program that may or may not have a specific project identified Program Income Fund Sources FY 2024 Adop ted FY 2025 Proposed Change Parking Structure Income 1,242,336$ 1,290,184$ 47,848$ Rents 161,264$ 229,449$ 68,185$ Loan Repayments 38,640$ 33,600$ (5,040)$ Interest on Loans 7,452$ 6,000$ (1,452)$ -$ Proposed Uses -$ Capital Project - Sugarhouse DI Demo 550,000$ 500,000$ (50,000)$ Gallivan Maintenance & Repairs 214,692$ 238,733$ 24,041$ Charges and Services 355,000$ 457,500$ 102,500$ Operating and Maintenance 330,000$ 363,000$ 33 ,000$ Total Program Income Fu nd 1,449,692$ 1,559,233$ 109,541$ FY 2025 Prop osed Central Business District (Identified separately as "Downtown for Every one" project) $ 2 ,540,597 Westside Community Initiative $ 1,000,000 North Temple $ 861,812 State Street $ 4,003,894 9 Line $ 1,994,27 2 Tota l $ 10,400,575 Strategic Interven tion Fu n ds Page | 19 yet. This program’s approved uses include property acquisition, site development costs and community benefits. If there is an approved project, or projects, within a program appropriation, those are identified as such. Otherwise, it is anticipated that staff will return to the Board for approval to appropriate funds to specific projects. “ •The Administration has provided the following additional information about the $2.5 Million “Downtown for All” project in the CBD: “This Strategic Intervention program appropriation is identified for a “Downtown for All” project to implement the Mayor’s goal of creating a thriving and equitable downtown. This would provide funding for projects that support families such as daycares, opportunities for play, and family-sized housing as well as amenities for every generation of individuals, families, residents, and visitors.” c. Commercial Assistance Programs – The RDA Board has allocated money in various project areas (most of the funding is since the FY 23 budget) for “Commercial Assistance” in a variety of ways. Because these funds were budgeted in capital accounts they do not lapse to fund balance. The Board has been meeting with RDA staff to discuss plans for moving forward with these programs and coordinating the policies with the Economic Development Loan Fund and Housing Stability Division’s CDBG economic development plans. d. Transition Holding Accounts and Midyear Budget Amendments – It should be noted that the Board sometimes approves millions in additional funding for projects and programs in Commercial Assistance Funding Ap p rop ria tion Title/District Fisca l Yea r Rema in in g Amou n t Commercia l Ad a p tive Reu se Loa n s Granary District 2023 882,176 Commercia l Assista n ce Reserves 9 Line 2024 500,000 Depot District 2024 500,000 Granary District 2024 1,003,435 North Temple 2024 217 ,318 Program Income Fund 2023 0 State Street 2024 1,239,049 Commercia l Assista n ce Reserves Tota l 3,459,802 Commercia l Revolvin g Loa n s Central Business District 2023 568,354 North Temple 2023 18,675 Program Income Fund 2023 811,857 Revolving Loan Fund 2023 2,994,965 Revolving Loan Fund 2024 22 6,750 State Street 2023 500,000 Commercia l Revolvin g Loa n s Tota l 5,120,600 Commu n ity & Cu ltu ra l I n itia tive Central Business District 2023 338,717 Granary District 2023 67 3,930 Commu n ity & Cu ltu ra l I n itia tive Tota l 1,012,647 Total Commercial Assistan ce Fu nding 10,475,225 Page | 20 budget amendments throughout the fiscal year, particularly when the City receives actual tax increment revenue information from the County in April. Based on feedback from previous budget years, the Mayor’s Recommended Budget continues an approach called “transition holding accounts” that carry forward actual property tax increment received (after meeting legal obligations) to be considered in the next annual budget. This approach is meant to streamline budgeting by avoiding multiple funding requests for the same projects in the final budget amendment of the year and in the annual budget. The Council asked for this to be included in the context of the overall budget discussion so all funding requests and ideas could be considered in context. The Board may wish to discuss how they would like to allocate these funds and note that the Mayor’s Recommended Budget proposes fully using the $3 million available across project areas and funds. The only limitation on these funds is that they need to be used in accordance with the project area guidelines. e. Japantown Investment – ➢The FY 25 budget allocates $100,000 from the Central Business District to facilitate construction documents for the Japantown Streetscape improvements. The Board has expressed a desire to see these street improvements happen in the near term, as discussions are ongoing regarding the investment in the Sports, Entertainment, Cultural and Convention district. See policy question regarding bonding (via the City or RDA) for these costs. ➢The FY 25 budget also adds $336,577 between the Central Business District ($300,000) and Block 67 ($36,577) for “Japantown Art”. When combined with previous years allocation the total available for this purpose is $436,577 (not including transition holding account funds from FY 24). f. Property Management and Maintenance Budget. This is a line item that appears in various project areas and is not covered by the centralized RDA Administrative budget. It covers things like maintenance, security, and insurance for properties owned or managed by the RDA. Actual expenditures vary year to year, and any unspent funds lapse to that project area’s fund balance. Central Bu siness District 786,303$ Depot 421,999$ Granary 165,086$ North Temple 249,892$ State Street 648,977$ 9 Line 276,503$ Primary Hou sing Development Fund 507,505$ Total 3,056,265$ Transition Holdin g Accou nts FY 2024 Adop ted FY 2025 Prop osed Change % Change Central Business District $ 1,000,000 $ 1,127,250 $ 1 27,250 1 3% Depot District $ 150,000 $ 172,500 $ 22,500 1 5% Granary District $ 5,000 $ - $ (5,000)-1 00% North Temple $ - $ 50,000 $ 50,000 n/a State Street $ - $ 50,000 $ 50,000 n/a 9 Line $ - $ 50,000 Tota l $ 1,155,000 $ 1,449,7 50 $ 294,750 26% Property Management and Maintenance Page | 21 •Due to the unique nature of some RDA properties, the RDA obtains insurance separately from the City’s “self-insured” approach for City properties. The Board may wish to ask the Administration to evaluate if there are any opportunities for savings or streamlining in this area for certain RDA properties. g. Revolving Loan Fund (RLF) – The FY 2025 budget proposes $345,000 in additional revenue to lend. The source of funding for the RLF is primarily repayments on loans and interest earnings. Combined with previous years of funding the Administration indicates that there is $3.6 million available to lend. The outstanding balance of existing loans being repaid over the coming decades is over $26 million from 15 loans. h. Regent Street Maintenance – The Block 70 (Eccles Theater) project area budget includes an $80,000 ongoing allocation to the City General Fund to cover costs for maintenance of Regent Street, given the enhanced features of the street are beyond typical City standards, and cost more than a typical city street to maintain. The Attorney’s Office indicates that tax increment funds can be used to maintain public infrastructure. The Board may wish to ask the Administration if this transfer is the long-term plan for maintenance on Regent Street when the Block 70 CRA ends in 2040, and what the City’s policy may be in other enhanced-infrastructure areas (e.g., Central Ninth streetscape improvements, Rio Grande Area festival street the Depot District, daylighting City Creek near North Temple). i. Gallivan Employees and Maintenance - The proposed budget continues the management of the 13 Gallivan employees and maintenance under the RDA (accounting is separated from the General Fund). ➢The Board may wish to ask the Administration for a review of how this approach is working compared to the previous approach of managing those employees in the General Fund (Public Services Department), particularly as it relates to service level and programming. ➢The Board may wish to use this discussion to inform future policy discussions, as the Administration has indicated they are exploring alternative models for programming and maintenance of “enhanced” public spaces coming to downtown such as Pioneer Park, Main Street pedestrianization, the Sports, Entertainment, Cultural and Convention district, and potentially the Green Loop. j. Trend in Increment Received - During the FY 19 budget cycle the Administration noted that actual increment received in a number of districts was unexpectedly lower than in previous years, which did not track with the overall increase in total property valuation in the City and construction of new buildings in some RDA project areas. Since that time the Administration worked with County staff and a consultant who have determined that it was an “anomaly,” and actual revenue received since then tracks more consistently with valuations. For FY 25 the RDA has continued the practice of projecting tax revenues at roughly 80% of what was actually received in the previous year, to help account for these potential fluctuations. The below charts illustrate the fluctuations in tax increment revenue received in selected project areas for Board context (Central Business District is shown on an independent chart due to the relatively larger dollar amount differences). This trend information is available for all project areas if the board is interested. Page | 22 k. North Temple Viaduct Debt service – The RDA created the North Temple Viaduct project area specifically to help offset the debt service costs on a City-issued bond to rebuild and shorten the North Temple Viaduct in 2012, allowing the current TRAX alignment, and to facilitate development that has now materialized in the adjacent area. All increment except a small percentage for administration is transferred to the general fund to offset this annual payment. The chart below provides a summary of tax increment received, annual debt service payment made by the City and the tax increment as a percentage of those debt payments. In the early years of this arrangement, the tax increment generated was not sufficient to cover the full debt service payment, so the general fund covered the remainder. However, starting in FY19, actual tax increment received exceeded debt service payments. In FY 21, the Board re-purposed this surplus to re-invest on North Temple in the soon-to-open State Fair Park International Public Market. In FY 23, the Board approved using the excess $1 million of this available overage to invest in the Housing Development Fund, to increase the number of affordable units in the City. In FY 24 this source was used to increase the Housing Development Fund by $1.7 million. With the calendar year 2024 audit, the Administration will determine if, based on Taxing Entity Agreements, any of this overage should be paid back to taxing entities. $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 C E N T R A L B U S I N E S S D I S T R I C T TA X I N C R E M E N T R E V E N U E $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 TA X I N C R E M E N T R E V E N U E Depot District State Street North Temple Viaduct Northwest Quadrant CRA State Street 9 Line Block 70 (Eccles)Granary District North Temple Page | 23 l. Eccles Theater Site Operations & Regent Street Activation – Per the terms of the operating agreement with Salt Lake County, the City/RDA are responsible for any operating costs (net of revenues) that the County experiences in operating the ancillary sites around the Eccles Theater (Black Box, Regent Street Plaza, and Winter Garden). The FY 25 budget proposes $475,000 for this purpose, which is flat from FY 24. The FY 25 budget also includes continuing the allocation started in FY 24 for an additional $25,000 to program the McCarthy Plaza and Regent Street, which the RDA reports to be a very successful endeavor. Consistent with the Council’s initial goals for the construction of the Eccles Theater, the UPACA Board continues to ask County staff to find innovative ways to increase programming in the spaces, with a primary goal of activation rather than purely revenue generation. m. Block 70/Eccles Theater Debt Reserve – In previous budget years the RDA has funded a certain reserve to cover debt service for the Eccles Theater, to cover years when tax increment for the block is insufficient to cover payments (originally projected to be a span of 5-8 years, depending on projections). As of FY 25, the Finance Department believes the combination of increment from Block 70 and the current level of debt service reserve is sufficient to cover debt on the Eccles Theater GENERAL POLICY QUESTIONS 1.Bonding for catalytic or specific projects – The Board may wish to ask the Administration whether they have a recommendation for bond-eligible projects in any project area, especially new project areas like the State Street or 9-Line project areas, given tax increment flow has started. Based on previous discussions, the Board and Administration agreed that bonding early in project areas, as was done for Block 70 and Regent Street/Eccles Theater, makes financial sense, since bonding capacity is maximized early in a project area. 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 North Temple Viaduct Annual Bond Payments by Year and RDA Tax Increment Contribution RDA Tax Increment Transfer to General Fund for Debt Service Total Annual Debt Service Payment for Series 2012A Bond Tax Increment as Percent of Debt Payment Page | 24 a. Bonding may also make sense for a project that is of particular immediate interest or importance to the Board, such as Japantown Street improvements. Given the City’s favorable interest rates, the Council may wish to initiate this conversation with the City finance department to conduct an analysis. b. The City has the ability to issue bonds for projects supported or offset by RDA tax increment (the North Temple Viaduct rebuild project was financed this way), or it can issue bonds as an agency (A portion of Eccles theater debt and Regent Street Improvements were financed this way via Block 70 increment). 2.Project Area/Workload Prioritization – The Board may wish to continue the discussion of project area and/or staff workload prioritization. Staff is continuing to work on Housing and Transit Reinvestment Zones (HTRZs), the recent discussions about a Sports, Entertainment, Cultural and Convention District, and is in continued discussions about new project areas to facilitate developments around the Granary District, which is soon to expire. The RDA is also continuing property disposition work in three expired project areas that no longer collect tax increment to offset these costs (Sugar House, West Capitol Hill, and West Temple Gateway). RDA staff also is critical to the City’s efforts during State legislative discussions about changes to the City’s development tools, which is an increasing workload compared to previous years. Affordable housing development in the City is also an overarching workload handled by RDA staff, as is work on some of the programs approved by the Board in recent years, such as the ADU program. In January 2020 the Board approved two resolutions establishing survey boundaries for potential Community Reinvestment Areas at the University of Utah Research Park, and discussions are ongoing. The two new FTEs added in FY2023 and the new financial analyst FTE proposed in FY2025 may help with this increased workload, but the Board may wish to have additional discussions. 3.Public/Private Partnership Models and proposals with alternate governance models - As the City and RDA consider the public-private partnership ideas that are periodically raised, the Board/Council have shared feedback that they prefer to keep elected officials in the appropriate policy- making and budgetary role. The Board/Council may wish to formalize this feedback in a policy document to guide future administrative conversations about alternate governance and management. Prior to adopting a policy, the Board could request a comprehensive review of these different models to identify pros and cons and establish role clarity, transparency expectations, and staff accountability upfront. 4.Consistency between RDA and City Policies – Currently the Board adopts policies to guide RDA investment that typically mirror City policies, although in some cases they are different and/or more targeted to RDA activities. The Board could adopt a blanket policy indicating that if the RDA does not have a policy for a given area, City policy applies. 5.Fund Balances for Project Areas with Ongoing Funding Obligations – The Board may wish to review with the Administration the levels of fund balances (“savings accounts” or “cash reserves”) for project areas with ongoing obligations such as the Central Business District which has bond debt service payments and agreements (such as Eccles, Regent Street, and Gallivan) and significantly contributes to the RDA’s annual administration costs. Finance is working with the RDA staff to provide cash balance amounts for each project area. 6.Pooled Resources vs. Project Area Resources – Some initiatives and projects previously funded with RDA tax increment have been funded by transferring funds out of one project area, into a pooled account, such as the Primary Housing Fund or Revolving Loan Fund (via appropriation from Fund Balance). Because these accounts are flexible in terms of serving all project areas, this allows for a project area with limited tax increment to complete projects it might otherwise not be able to afford. Page | 25 There are not clear guiding policies that would help determine when it is appropriate to use this approach for a given project or initiative, but in the past it has enabled the RDA to respond to unique opportunities and projects. ADDITIONAL & BACKGROUND INFORMATION 1.Gallivan Utah Center Owners Association (GUCOA) - GUCOA is the managing agency for the entire block through Covenants, Conditions & Restrictions (CCRs) and is responsible for maintenance and programming. The RDA is the majority owner (over 51%). The CCRs originally contemplated a contractor to provide maintenance and programming which has been provided by the Public Services Department after an RFP process. An assessment is levied on the first floor of adjacent commercial properties to contribute funding to administration, programming, and events. The programming contract has requirements for a set number of events that must be open to the public annually. Gallivan also provides many free events to activate the space consistent with the Council/Board’s public policy goals for downtown. 2.Project Area Expiration Dates -Project areas have a designated expiration (aka sunset) date. State law allows RDAs to continue spending tax increment already collected in expired project areas such as Sugar House. Sometimes project areas can be extended/renewed for a longer length which happened to the Central Business District. The table below summarizes project area timeframes from creation to expiration. Project Area Initial Collection Year Last Collection Year Central Business District*†1983 2042 West Capitol Hill**1998 2022 Depot District†1999 2024 Granary District†2000 2025 North Temple†2012 2039 North Temple Viaduct CDA 2012 2037 Northwest Quadrant 2019 2038 Block 70 CDA 2016 2040 Stadler Rail 2019 2038 Block 67 2021 2040 9-Line 2021 2040 State Street 2021 2040 NOTE: Only project areas that generate tax increment are listed in the table *The RDA Board extended the CBD from the original expiration year of 2007 ** The RDA Board extended the original expiration year to focus on 300 West streetscape improvements †In October 2021 the Board approved two-year extensions for these project areas. State law was changed to allow extensions for projects areas negatively impacted by the COVID-19 pandemic 3.Statutory Definition of Project Area Development (Utah Code 17C-1-102(48)) - The section of Utah Code below is a key list of allowable uses of RDA funds. The Utah Legislature updated this statute in the 2016 General Session. (47)"Project area development" means activity within a project area that, as determined by the board, encourages, promotes, or provides development or redevelopment for the purpose of implementing a project area plan, including: (a)promoting, creating, or retaining public or private jobs within the state or a community; (b)providing office, manufacturing, warehousing, distribution, parking, or other facilities or improvements; Page | 26 (c)planning, designing, demolishing, clearing, constructing, rehabilitating, or remediating environmental issues; (d)providing residential, commercial, industrial, public, or other structures or spaces, including recreational and other facilities incidental or appurtenant to the structures or spaces; (e)altering, improving, modernizing, demolishing, reconstructing, or rehabilitating existing structures; (f)providing open space, including streets or other public grounds or space around buildings; (g)providing public or private buildings, infrastructure, structures, or improvements; (h)relocating a business; (i)improving public or private recreation areas or other public grounds; (j)eliminating blight or the causes of blight; (k)redevelopment as defined under the law in effect before May 1, 2006; or (l)any activity described in Subsections (48)(a) through (k) outside of a project area that the board determines to be a benefit to the project area. Note: in the 2022 legislative session some changes were made to limit a taxing entity’s ability to invest in certain retail uses in HB 151 – in summary it it prohibits a city or its RDA from making or entering into an agreement to make certain incentive payments for retail facilities. While retail incentives are limited, there some exceptions, including: -census tract areas with the median income below 70% AMI (to ease food and service deserts, etc), -mixed use developments with a certain amount of housing units, or 10% of the units being affordable, -retail facilities under 20,000 sqft, retail for small businesses, etc. - Incentives can still be used for public infrastructure, structured parking, main street or historic programs, and environmental mitigation. -If incentives for retail developments are used, a report must be issued to GOEO. -If a taxing entity violates any of the incentives restrictions or doesn't submit a report, GOEO can send a notice to the state auditor. There is still the ability to cure the problem or appeal the determination of GOEO. ATTACHMENTS 1. Attachment 1 - RDA Guiding Framework Transmittal December 2021 (Mission, Core Values and Livability Benchmarks) 2.Attachment 2 – Presentation on Housing Funding Priorities for FY 25 3.Attachment 3 – Transmittal: Housing Funding Priorities for FY 25 Exhi bi t A t o t he Re s ol ut i on Guiding Fra me work This Guiding Framework is a strategic operational document outlining the methodology for evaluating and prioritizing projects requesting RDA financial assistance. The RDA’s Mis s ion and Values form the foundation of the Guiding Framework, declaring the RDA’s purpose and the intended economic, s ocia l, and physical outcomes expected of RDA projects and partnerships. MIS S ION:The Redevelopment Agency of Salt La ke City strengthens neighborhoods and business districts to improve livability, create economic opportunity and fos ter authentic, equitable communities, s e rving as a catalyst for strategic development projects that enhance the City’s housing opportunities, comme rcial vita lity, public spaces, and environmental s us tainability. VALUES :Economic Opportunity-Equity & Inclus ion-Neighborhood Vibrancy- We inves t in the long-term prosperity and growth We prioritize people-focused projects and We cultivate distinct and livable places that are contextually sensitive, durable, connected, and sustainable. of our local economy.programs that encourage everyone to participate in and be ne fit from development decisions that shape their communities. PROJ ECT EVALUATION PROCESS: The RDA prioritize s projects that demonstrate a commitment to the Mis s ion and Values, evaluating projects via three steps, which answer the following questions: 1.) Doe s the project meet the minimumTHRESHOLDS required for RDA pa rticipa tion? 2.) To wha t degree does the project be ne fit the public by achieving de fine d LIVABILITY BENCHMARKS, thereby warranting RDA assistance? 3.) Doe s the project meet the CRITERIAoutlined in e xis ting RDA progra ms and policie s , such as the RDA Loan Program or Tax Increment Reimbursement Program? ˜ ˜ ˜ Alignme nt with adopted City policies &plans Alignme nt with RDAProject Area Work Plans* Financial viability with a demonstrated and reasonable need for public assistance Step 1: THRESHOLDS Economic Opportunity Equity & Inclus ion Tra ns it Opportunities Mixe d-Income Neighborhoods Neighborhood Safety Community Engagement &Support Hous ing for Everyone Dis place me nt Mitiga tion Neighborhood Vibrancy Public Space Public Art Architecture &Urba n Des ign Sustainability Wa lka bility Building Preservation, rehabilitation, or adaptive reuse ˜ ˜ ˜ ˜ ˜ ˜ Le ve ra ging Time line s s Return of Investment Permanent Job Creation &Retention Afforda ble Commercial Spaces Owne rs hip ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ Step 2: LIVABILITY BENCHMARKS Afforda ble Hous ing Preservation ˜Mis s ing Middle &Unique Building Type s Step 3: PROGRAM CRITERIA Evaluation of project according to respective RDA policies , programs and procedures *Spanning a 1-3 year time frame, Project Are a Work Plans identifyredevelopment objectives and strategic redevelopment projects for each project area, along with a corresponding schedule &budget for each project. The Project Are a Work Plans will be based on relevant City policies and plans and the Project Are a Plans that we re adopted when the project area was created and will provide direction for the annual RDA budget process. 11.24.21 SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY DATE: March 29, 2024 PREPARED BY: Lauren Parisi & Tracy Tran, RDA Senior Project Managers RE: FY 2024-25 Annual Housing Funding Priorities REQUESTED ACTION: Consider adoption of a resolution to establish the FY 2024-25 Housing Funding Priorities POLICY ITEM: Affordable Housing BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City’s (“RDA”) Housing Development Loan Program (“HDLP”) policy requires that the RDA Board of Directors (“Board”) approves housing funding priorities (“Funding Priorities”) on an annual basis. These Funding Priorities guide the upcoming fiscal year’s housing activities including the requirements of the HDLP's competitive affordable housing notice of funding availability (NOFA). At their March 2024 meeting, the Board reviewed and discussed potential Funding Priorities for the upcoming fiscal year 2024-2025 (“FY 25”). More detail regarding the information presented at this meeting can be found within the March RDA Board Memo. The Board seemed to come to a consensus regarding the approval of four priorities including: • Wealth Building Opportunity • Affordable Family Housing with Amenities for Children • Deeply Affordable Housing • Neighborhood Commercial and Services In March 2024, the Board expended nearly all of the remaining high opportunity area funds, which are focused on incentivizing affordable housing in high opportunity areas (east side of Salt Lake City). Since these funds are no longer available, RDA Staff wanted to check if the Board would be interested in adding an Expand Opportunity priority to the list above that could further incentivize affordable housing in high opportunity areas. A map of the high opportunity areas has been included under Attachment A. This memo outlines the intent of each of the four Funding Priorities and a potential fifth priority if the Board would like to include. Two resolution options are included under Attachment B for the Board’s consideration to approve the FY 25 Funding Priorities. 1 ANALYSIS: FY 25 Annual Housing Funding Priorities. The intent of each priority that will be used to guide housing decisions throughout the upcoming fiscal year are described below. 1. Wealth Building Opportunity – Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. 2. Affordable Family Housing – Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes that have at least three or more bedrooms and includes family-oriented amenities. 3. Deeply Affordable Housing – Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those earning 40% of the area median income (AMI) or below. 4. Neighborhood Commercial and Services – Promote an array of commercial spaces that support the neighborhoods, such as daycares, restaurants, and retail spaces. This priority ensures that as housing continues to be built throughout the City, residents and neighbors continue to have access to neighborhood services and amenities. 5. Potential Priority: Expand Opportunity – Provide affordable housing within areas that have access to resources that may improve a person’s chances of upward economic mobility as identified on RDA’s High Opportunity Area Map. In previous years, the RDA Board dedicated funding towards areas of high opportunity. With the majority of that funding expended, including this priority maintains that the Board wants to see affordable housing expanded to Salt Lake City’s eastside neighborhoods. Housing Development Loan Program – Competitive NOFA. To utilize the competitive HDLP notice of funding availability (NOFA) to promote the Funding Priorities, RDA staff recommends making affordable family housing with amenities for children and/or deeply affordable housing into thresholds requirements in order for a project to be eligible for funding. To meet the family housing threshold, at least 10% of a project’s units must have three or more bedrooms and be affordable to households earning 60% of the area median income as established by the U.S. Department of Housing and Urban Development (“HUD”). To meet the deeply affordable housing threshold, at least 10% of a project’s units must be affordable to those earning 40% AMI or below as established by HUD. Similar to previous years, the priorities the Board approves for the upcoming fiscal year will be weighted more in scoring than other benchmarks. Projects will also be eligible for interest rate reductions for meeting other RDA benchmarks as outlined in the HDLP guidelines. FY 25 Housing Fund Projections. RDA staff will share the housing fund projections for the upcoming fiscal year when it becomes available. 2 NEXT STEPS: • Pursuant to the Housing Development Loan Program Policy, the Board may wish to consider the adoption of the attached resolution to approve the Funding Priorities for FY 25. • RDA staff will present proposed funding allocations to housing activities as a part of the FY 25 budget discussion. ATTACHMENTS: Attachment A - High Opportunity Area Map and Table Attachment B – Resolution Options: FY 25 Affordable Housing Funding Priorities Resolution 3 ATTACHMENT A – HIGH OPPORTUNITY AREA MAP High opportunity areas are geographical locations within the city that provide conditions that expand a person’s likelihood for social mobility. These areas have been identified through an analysis of a variety of economic, housing, health, and community metrics. With these multiple indicators, a single composite, or standardized score is calculated for each census tract. Scores may range from 0 to 10, with 1 indicating low opportunity and 10 indicating high opportunity. A Census Tract with an Opportunity Index score of 7 or higher shall be designated as an Area of High Opportunity. HIGH OPPORTUNITY AREA MAP 4 HIGH OPPORTUNITY AREA TABLE SCORING NOTES The High Opportunity Index uses an eleven-point rating scale to evaluate metrics associated with high economic opportunity by census tract. Scores 0-2 indicate very low opportunity, 3-4 indicates low opportunity, 5-6 indicate moderate opportunity, 7-8 indicate high opportunity, and 9-10 indicate very high opportunity. For the methodology, scoring for the Opportunity Index was done by evaluating each tract on the variables in Attachment A as compared to other census tracts in the city. A normalization formula is used to establish the thresholds for scoring in 11 equal scoring ranges (0-10). Each tract’s normalized scores for all variables were then multiplied by their determined weight and aggregated. The aggregate scores are then put through the same normalization formula to determine the overall Opportunity Index score. Tract Opportunity Index Score Tract Opportunity Index Score 1001 3 1028.01 2 1002 5 1028.02 4 1003.06 3 1029 2 1003.07 2 1030 6 1003.08 1 1031 8 1005 1 1032 6 1006 0 1033 7 1007 5 1034 8 1008 5 1035 7 1010 8 1036 10 1011.01 6 1037 8 1011.02 9 1038 7 1012 8 1039 7 1014.01 3 1040 9 1014.02 4 1041 8 1015 8 1042 9 1016 6 1043 6 1017 8 1044 7 1018 4 1047 8 1019 7 1048 5 1020 6 1049 5 1021 7 1118.02 6 1023 5 1140 6 1025.01 4 1141 7 1025.02 6 1145 1 1026 3 1147 3 1027.01 3 1148 8 1027.02 1 5 ATTACHMENT B – RESOLUTIONS: FY 25 AFFORDABLE HOUSING FUNDING PRIORITIES RESOLUTION 6 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2024-25 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2024-25 WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (Board) adopted the Housing Funds Allocation Policy and the Housing Development Loan Program Policy, which provide that the Redevelopment Agency of Salt Lake City (RDA) will present to the Board an overall funding strategy and specific funding priorities (Funding Priorities) for how housing monies should be allocated to the housing funds and housing loan program for the upcoming fiscal year. WHEREAS, the Housing Development Loan Program Policy provides that the specific Funding Priorities shall be subject to approval by the Board. WHEREAS, the Board desires to adopt the Funding Priorities identified in this resolution to direct resources for the development of affordable housing for fiscal year 2024-25. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Redevelopment Agency of Salt Lake City hereby adopt following Funding Priorities for fiscal year 2024-25: Funding Priority Objective Deeply Affordable Housing Threshold requirement for Housing Development Loan Program applications Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Affordable Family Housing with Amenities for Children Threshold requirement for Housing Development Loan Program applications Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes that have at least three or more bedrooms and includes family-oriented amenities. Wealth Building Opportunity Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. Resolution - Option A 7 Neighborhood Commercial and Services Promote an array of commercial spaces that support the neighborhoods, such as daycares, restaurants, and retail spaces. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 2024. ________________________________ Alejandro Puy, 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 8 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2024-25 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2024-25 WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (Board) adopted the Housing Funds Allocation Policy and the Housing Development Loan Program Policy, which provide that the Redevelopment Agency of Salt Lake City (RDA) will present to the Board an overall funding strategy and specific funding priorities (Funding Priorities) for how housing monies should be allocated to the housing funds and housing loan program for the upcoming fiscal year. WHEREAS, the Housing Development Loan Program Policy provides that the specific Funding Priorities shall be subject to approval by the Board. WHEREAS, the Board desires to adopt the Funding Priorities identified in this resolution to direct resources for the development of affordable housing for fiscal year 2024-25. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Redevelopment Agency of Salt Lake City hereby adopt following Funding Priorities for fiscal year 2024-25: Funding Priority Objective Deeply Affordable Housing Threshold requirement for Housing Development Loan Program applications Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Affordable Family Housing with Amenities for Children Threshold requirement for Housing Development Loan Program applications Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes that have at least three or more bedrooms and includes family-oriented amenities. Wealth Building Opportunity Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. Resolution - Option B 9 Neighborhood Commercial and Services Promote an array of commercial spaces that support the neighborhoods, such as daycares, restaurants, and retail spaces. Expand Opportunity Provide affordable housing within areas that have access to resources that may improve a person’s chances of upward economic mobility as identified on RDA’s High Opportunity Area map. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 2024. ________________________________ Alejandro Puy, 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 10 Annual HOUSING FUNDING PRIORITIES Fy 2024-25 APRIL 16, 2024 HOUSING DEVELOPMENT FUND WESTSIDE COMMUNITY INITIATIVE FUND SECONDARY HOUSING FUND ADOPTED Q1 2021 YEARLY BOD APPROVAL PRIMARY HOUSING FUND HOUSING ALLOCATION FUNDS POLICY HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY This policy established guidelines for allocating/directing resources for housing by funding source. Also requires "Annual Housing Funding Strategy" (right) be brought in front of Board every year. To be included in RDA budget For your approval today To be included in RDA budget WEALTH BUILDING OPPORTUNITY recommended annual housing priorities Priorities to focus on this FY; Seeking Board feedback today AFFORDABLE FAMILY HOUSING w/ AMENITIES for CHILDREN DEEPLY AFFORDABLE HOUSING NEIGHBORHOOD COMMERCIAL AND SERVICES HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY EXPAND OPPORTUNITY UPDATED HIGH OPPORTUNITY AREA MAP 2 3 4 5 6 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates (1,2, 3, 4) Salt Lake County Assessor (5) CoStar Group (6) HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. NUMBER OF COMMERCIAL PARCELS HAVE DECREASED WITHIN SALT LAKE CITY COMMERCIAL GROWTH RATE IS SLOWING, WHILE OCCUPANCY AND LEASE RATES HAVE INCREASED PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 AT LEAST 8,431 RENTING HOUSEHOLDS FALL IN THE "EXTREMELY LOW INCOME” LIMIT SET BY HUD FOR FY23. 1 HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTAL RATE Data - other metrics Data - current and future slc deed-restricted affordable housing developments map LAND ACQUISITION/ DISPOSITION HOUSING DEVELOPMENT LOAN PROGRAM EQUITY BUILDING NOFA recommended housing ACTIVItIES Tools/programs by which to achieve Priorities; Seeking Board feedback today HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY housing ACTIVItIES Housing Development Loan Program Competitive NOFA Require affordable family housing and/or deeply affordable housing as threshold Utilize interest rate reduction benchmarks for competitive NOFA (Alignment with RDA's Guiding Framework); annual priorities will have greater ranking weight )064I/( '6/% "--0$"5I0/4 "//6"- )064I/( 13I03I5I&4 HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE FUND housing fund allocations FY25 ANNUAL HOUSING FUNDING STRATEGY ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES NEIGHBORHOOD COMMERCIAL AND SERVICES DEEPLY AFFORDABLE HOUSING WEALTH BUILDING OPPORTUNITY AFFORDABLE FAMILY HOUSING HOUSING DEV. LOAN PROGRAM LAND ACQUISITION/ DISPOSITION EQUITY BUILDING NOFA EXPAND OPPORTUNITY next steps The RDA Board may wish to consider the adoption of the FY 25 Annual Housing Priorities RDA staff will present proposed funding allocations to housing activities as a part of the FY 25 budget discussion HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY Redevelopment Agency FY24-25 Budget Presented by Danny Walz REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Redevelopment Agency Funds 2 Project Area Funds Must be used within the boundaries of the project area, except for revenues transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legal reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) •West Capitol Hill (WCH) Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Receives transfers in from other funds to fund the Agency’s operational expenses. REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Agency Budget Process =- •Tax Increment Revenue •Loan Payments •Rent Payments •Parking Structure Income •Interest from Investments •Internal Fund Transfers •External Fund Transfers •Transition Holding Account •Tax Increment Reimbursements •Taxing Entity Payments •Primary Housing Contributions •Debt Service •Contractual Obligations •Property Management & Maintenance •Administrative and Operating Expenses •Proposed Programs and Projects Revenue Sources Obligated Expenses Discretionary Expenses 3 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Overview of Expense Changes by Fund 4 FY24 Proposed Changes FY25 Recommended FTE: 21 FTE: +1 FTE: 22 Fund Type Fund Name FY 2024 Adopted Budget Change FY 2025 Recommended Budget Project Area Central Business District 24,644,694 5,248,322 29,893,016 Block 70 11,053,759 11,405 11,065,164 Depot District 7,227,908 (132,507)7,095,401 Granary District 1,394,593 353,656 1,748,249 North Temple 1,351,992 600,474 1,952,466 North Temple Viaduct 2,774,419 381,346 3,155,765 Stadler Rail 141,297 27,447 168,744 9-Line 3,455,989 (148,771)3,307,218 State Street 5,788,520 729,316 6,517,836 Northwest Quadrant 1,398,548 1,205,450 2,603,998 Block 67 North 0 365,771 365,771 West Capitol Hill 0 384,332 384,332 Housing Primary Housing 2,394,582 1,207,659 3,602,241 Secondary Housing 1,000,000 0 1,000,000 Housing Development Fund 10,236,967 (7,334,967)2,902,000 Westside Community Initiative 1,835,469 0 1,835,469 Multi-Use Program Income Fund 1,449,692 109,541 1,559,233 Revolving Loan Fund 226,750 105,650 332,400 Operations Redevelopment Agency Operations 4,428,662 641,634 5,070,296 Total 80,803,841 3,755,758 84,559,599 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Organizational Chart 5 REDEVELOPMENT AGENCY DIRECTOR GALLIVAN STAFF (12 POSITIONS) GALLIVAN DIRECTOR OFFICE FACILITATOR OFFICE MANAGER RDA DEPUTY DIRECTOR COMM/ OUTREACH COORDINATOR COMM/ OUTREACH MANAGER SR. PROJECT MANAGER SR. PROJECT MANAGER SR. PROJECT MANAGER PROJECT MANAGER PROJECT MANAGER PROJECT COORDINATOR SR. PROJECT MANAGER SR. PROJECT MANAGER PROPERTY MANAGER PROJECT MANAGER PROJECT MANAGER PROJECT COORDINATOR FINANCIAL ANALYST DATA MANAGER SPECIAL PROJECTS FINANCIAL ANALYST REVENUE PROJECTIONS REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Project Area Tax Increment Revenue 7 Fund 2020-A 2021-A 2022-A 2023-A 2024-B 2024-A 2025-B % Central Business District 32,241,850 31,160,698 29,210,363 25,941,783 24,644,694 27,265,707 27,265,707 0% Depot District 5,331,207 5,375,538 5,165,393 5,316,113 5,422,435 6,071,665 6,193,098 2% Granary District 737,929 926,661 975,276 1,081,675 1,103,309 1,357,286 1,384,433 2% Block 70 2,151,501 2,145,823 2,156,531 1,925,503 1,829,228 2,133,992 2,133,992 0% North Temple 526,266 633,123 674,845 988,936 1,008,715 1,513,475 1,543,745 2% North Temple Viaduct 1,550,077 2,100,528 2,573,995 2,720,019 2,774,419 3,058,618 3,119,790 2% West Capitol Hill (113,393) 526,903 - - - - - Northwest Quadrant 197 1,684,441 1,035,350 1,371,125 1,398,548 2,451,087 2,500,109 2% Stadler Rail 69,903 101,927 108,334 138,526 141,298 157,991 161,151 2% 9-Line - - 1,871,603 2,601,746 2,653,781 2,971,289 3,030,715 2% State Street - - 3,289,619 4,337,070 4,423,811 5,753,783 5,868,859 2% Block 67 North - - - - - 358,599 365,771 2% Total 42,495,537 44,655,642 47,061,309 46,422,496 45,400,237 53,093,492 53,567,370 1% A = Actual | B = Budget | F = Forecast REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director 200,220 229,449 561,600 1,290,184 1,835,469 2,590,000 3,056,265 3,210,658 53,567,370 Loan Payments - Interest Rents Loan Payments - Principal Parking Structure Income Inland Port Housing Funding Our Future Transition Holding Account Interest from Investments Tax Increment Revenue & Other Sources Estimated Revenue* 66,541,215 *Excluding internal transfers 8 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Housing Fund Revenue & Other Sources 9 $1MM– Supplemental Transfer from SS to 2H 507,505 2,590,000 113,820 276,000 1,835,469 16,115 36,577 250,011 276,886 303,072 308,749 1,238,620 1,586,886 Transition Holding Account Funding Our Future Loan Payments - Interest Loan Payments - Principal Inland Port Housing Stadler Rail Block 67 North Northwest Quadrant Granary District 9-Line North Temple Depot District State Street R e v e n u e I n t e r n a l T r a n s f e r Estimated Revenue* 9,339,710 *Including internal transfers EXPENSE PROJECTIONS REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director 417,382 2,599,534 5,167,581 8,477,030 180,000 250,000 363,000 385,447 417,382 454,244 591,807 636,577 1,849,750 3,108,969 3,468,976 9,644,668 12,441,752 School District Required Family & Workforce Housing Primary Housing Fund Administration (Agency Operations) Fund Internal Transfers - Debt Service Eccles - Maintenance & Repairs Gallivan - Programming Operating & Maintenance Gallivan - Administration Assessment School District Required Family & Workforce Housing Infrastructure Improvements Gallivan - Management & Maintenance Assessment RDA Arts & Culture Program Property Management and Maintenance Salt Lake City Debt Service TI Reimbursements Eccles Debt Service Taxing Entity Payments I n t e r n a l T r a n s f e r E x p e n s e Obligated Expenses 11 Estimated Obligations* 50,454,099 *Including internal transfers & excluding the Agency Operations Fund. REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Discretionary Expenses Project Area Funds 12 Program > Project CBD B70 DD GD NT 9L SS WCH Total Charges & Services 50,000 50,000 50,000 50,000 200,000 Commercial Assistance Reserves 500,000 1,263,697 1,763,697 Commercial Studies and Planning 300,000 300,000 New Project: North Temple Property Reuse Planning 300,000 300,000 Gallivan - Maintenance & Repairs 250,000 250,000 PRJ-000057 Gallivan Repairs 250,000 250,000 Infrastructure Improvements 600,000 3,705,316 50,000 4,355,316 Available for Project Assignment 3,705,316 3,705,316 New Project: Japantown Construction Documents 100,000 100,000 New Project: Gallivan Playground 500,000 500,000 PRJ-000022 RDA - City Creek Daylighting Design Plan Budget 50,000 50,000 Internal Transfers - Secondary Housing Fund 1,000,000 1,000,000 Property Management and Maintenance 50,000 50,000 100,000 RDA Arts & Culture Program 450,000 80,323 300,000 830,323 New Project: Japantown Art 300,000 300,000 New Project: CBD Public Art Project 150,000 150,000 PRJ-000081 Regent Street Event Programming 25,000 25,000 New Project: Reinstallation of "The Gulls"55,323 55,323 New Project: 9-Line Public Art Project 300,000 300,000 Strategic Intervention 2,540,597 861,812 1,994,272 4,003,894 9,400,575 Available for Project Assignment 861,812 1,994,272 4,003,894 6,859,978 New Project: Downtown for All 2,540,597 2,540,597 Housing Construction & Rehabilitation 384,332 384,332 PRJ-000015 RDA - Arctic Court Infill Home Construction 384,332 384,332 Total 3,840,597 80,323 4,255,316 1,263,697 1,261,812 2,394,272 5,103,894 384,332 18,584,243 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Discretionary Expenses Housing & Multi-Use Funds 13 Housing Funds Housing Funds Total Multi-Use Funds Multi-Use Funds Total Program > Project 1H 2H WCI HDF RLF PIF Charges & Services 457,500 457,500 Commercial Revolving Loans 332,400 332,400 Gallivan - Maintenance & Repairs 238,733 238,733 PRJ-000057 Gallivan Repairs 238,733 238,733 HDLP - Competitive 2,684,859 1,000,000 902,000 4,586,859 Infrastructure Improvements 500,000 500,000 PRJ-000078 Sugar House DI Demolition 500,000 500,000 Operating & Maintenance 363,000 363,000 School District Required Family & Workforce Housing*417,382 417,382 Strategic Intervention 1,000,000 1,000,000 Housing Construction & Rehabilitation 500,000 500,000 PRJ-000015 RDA - Arctic Court Infill Home Construction 500,000 500,000 Wealth Building Housing Opportunities 835,469 2,000,000 2,835,469 Total 3,602,241 1,000,000 1,835,469 2,902,000 9,339,710 332,400 1,559,233 1,891,633 *School District Required Family & Workforce Housing is an obligated expense, but the utilization of the program is discretionary provided it meets the requirements of the interlocal agreement. REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Fund Name Revenue or Expense Appropriation Type Program FY 2024 Adopted Budget Change FY 2025 Recommended Budget Redevelopment Agency Operations Revenue 4,428,662 738,919 5,167,581 Expense Operations Program RDA Personnel 2,756,779 413,517 3,170,296 Administrative Fees 1,000,000 0 1,000,000 Charges & Services 296,883 153,117 450,000 Operating & Maintenance 375,000 75,000 450,000 Expense Total 4,428,662 641,634 5,070,296 Total 0 97,285 97,285 Agency Operations Fund 14 Note: FY23 Amended Budget | C&S - $419,281 | O&M - $660,000 STAFFING REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director 22 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Redevelopment Agency Grade FY 2022 FY2023 FY 2024 FY 2025 Comments Director 41 1 1 1 1 Deputy Director 37 1 1 1 1 Senior Project Manager 35 2 2 4 5 1 New position(s) Financial Analyst III 29 1 1 0 1 1 New position(s) Financial Analyst IV 32 0 0 1 1 Project Manager 33 7 7 4 5 1 New position(s) Communications Manager 32 1 1 1 1 Communications Coordinator 25 0 0 1 1 Property Administrator 26 1 1 0 0 Property Manager 30 0 0 1 1 Project Coordinator 28 1 1 4 2 2 Position(s) eliminated Office Manager 21 1 2 1 1 Special Projects Assistant 21 1 1 1 1 Office Facilitator II Non-Union 20 2 1 1 1 Redevelopment Agency Total 19 19 21 22 Redevelopment Agency Staffing 16 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director Gallivan Staffing 13 REDEVELOPMENT AGENCY FY24-25 BUDGET PROPOSAL Presented by Danny Walz, Department Director 17 Gallivan Plaza Grade FY 2022 FY2023 FY 2024 FY 2025 Comments Plaza & Comm Events Div Director 32 1 1 1 1 Operations Manager 31 1 1 1 1 Facilities Maintenance Supervisor 25 0 0 0 0 Gallivan Event Adv/Mktg Manager 25 2 2 2 2 Plaza Marketing/Activities Supr 23 1 1 0 0 Event Coordinator II 23 0 0 1 1 Office Facilitator II Non-Union 22 1 1 1 1 General Maintenance Worker I 16 5 5 2 1 General Maintenance Worker II 18 0 0 1 1 General Maintenance Worker III 21 0 0 2 3 Office Technician I 19 1 1 1 1 Custodian II 11 1 1 1 1 Gallivan Total 13 13 13 13 With support from: Erin Cunningham, Financial Analyst THANK YOU Presented Danny Walz, Department Director APPENDIX: PROGRAM & PROJECT DESCRIPTIONS Housing Programs > Projects 20 Housing Development Loan Program (HDLP) – Competitive - $4,586,859 •A permanent and annually renewable loan program that consolidates and centralizes resources for the development and preservation of affordable housing. Funds are awarded through a Notice of Funding Availability (NOFA) on a competitive basis. {Capital Reserves Program} Wealth Building Housing Opportunities - $2,835,469 •Affordable Housing through Wealth Building opportunities such as homeownership or shared equity models. {Capital Reserves Program} School District Required Family & Workforce Housing - $417,382 •Housing solutions for families and the workforce, mandated by interlocal agreements with the Salt Lake City School District. Funds may be combined with other housing programs provided the project meets the requirements of the agreement. {Capital Reserves Program} Housing Construction & Rehabilitation - $884,332 •Support for new housing development and renovation of existing structures. {Capital Reserves Program} •> Project: PRJ-000015 RDA -Arctic Court Infill Home Construction -$884,332 •Prior year budget amendments redirected funds from the new infill construction at 524 North Arctic Court to Marmalade Plaza due to rising construction costs. Staff committed to requesting re-funding from the Board in future budget proposals. {Capital Reserves Project} Commercial Programs > Projects 21 Commercial Assistance Reserves - $1,763,697 •Reserve funds to ensure resources are available for commercial programs currently being revised by the Agency. {Capital Reserves Program} Commercial Revolving Loans - $332,400 •Offers loans to support local businesses, part of the broader Commercial Assistance Program. {Capital Reserves Program} Studies & Planning Programs > Projects Commercial Studies and Planning - $300,000 •Research and planning for commercial development strategies. •>New Project: New Project: North Temple Property Reuse Planning -$300,000 •Appropriation of funds to support site costs and evaluation of development options for Agency-owned parcels along the Folsom Corridor. Infrastructure Programs > Projects 22 Infrastructure Improvements - $5,309,560 •Diverse infrastructure improvements are funded, including utilities, streets, public transportation, lighting, and the creation of curbs, sidewalks, and open spaces. These efforts aim to enhance safety, connectivity, walkability, accessibility, and enjoyment in neighborhoods and business districts. •> Available for future projects -$3,705,316 •Staff will return with proposed projects for infrastructure improvements. •>New Project: Gallivan Playground -$500,000 •Funding for the Gallivan Center Playground project aims to develop an inclusive and engaging playground for children of all ages. The project will focus on creating safe, accessible play structures to enhance the community’s recreational facilities. •> New Project: Japantown Construction Documents -$100,000 •Appropriation of $100,000 to fund the drafting of construction documents to implement the Japantown Design Strategy. The funding will be used to create detailed construction plans that are crucial for guiding redevelopment efforts and revitalizing the neighborhood while honoring its historical significance. •>Project: PRJ-000022 RDA -City Creek Daylighting Design Plan Budget -$50,000 •Appropriation of funds to support a design plan to daylight (bring to the surface) a portion of City Creek that runs north of the Folsom Trail from 800 West to 1000 West. Project goals include increasing access to nature, improving water quality and mitigating surface flooding. •> Project: PRJ-000078 Sugar House DI Demolition -$500,000 •Site and demolition costs in anticipation of offering property for affordable housing development. •>Project: PRJ-000086 North Temple School Construction Reserves -$100,344 •A project has been established as a reserve fund per an interlocal agreement with the School District, mandating the Agency to earmark portions of tax increment for the construction of a potential new school, improvements to existing schools, or infrastructure improvements for the benefit and safety of students. •>Project: PRJ-000087 NWQ Shared Costs Reserve -$353,900 •A project has been established as a reserve fund per the interlocal agreement with the City to cover shared costs. This project will utilize tax increment financing for redevelopment activities that benefit the entire project area, are system-wide, or that advantage multiple property owners or parcels. RDA Arts & Culture Program > Projects 23 RDA Art Program - $1,466,900 •Dedicated to enriching the community by supporting local artists and promoting cultural diversity through exhibitions, performances, and educational initiatives. •>New Project: 9-Line Public Art Project -$300,000 •Installation of a public art piece within the 9-Line Project Area. •>New Project: CBD Public Art Project -$150,000 •Installation of a public art piece within the Central Business District. •>New Project: Japantown Art -$336,577 •Installation of a public art piece with Japantown. •>New Project: Reinstallation of "The Gulls of Salt Lake City“ -$55,323 •Reinstallation of the sculpture, formerly installed in the façade of the Prudential Federal Savings building, which is now the Eccles Theater. •>PRJ-000081 Regent Street Event Programming -$25,000 •Funds for additional activation and programming of McCarthy Plaza and Regent Street. The intent is to leverage funds with other sources and coordinate efforts with County operations and theater staff, whenever possible. •>PRJ-000082 Eccles Fundraising Fulfillment -$125,000 •Project set up to manage various gift agreements related to the Eccles Theater and Regent Street. •>PRJ-000083 Eccles Theater-Operating Reserve for Ancillary Spaces -$475,000 •Project created to track an operating reserve set aside for operating expenses related to the Eccles Theater Strategic Intervention Programs > Projects 24 Strategic Intervention - $10,400,575 •Uses include property acquisition, site development, and community benefits, e.g., when allocation between housing or commercial use is has not been determined. •>Available for future projects -$7,859,978 •Staff will return with proposed projects for infrastructure improvements. Note: Funds received from Salt Lake County in the State Street project area have restricted uses defined in the interlocal agreement. •>New Project: Downtown for All -$2,540,597 •Appropriation of funds to support Mayor’s goal of creating a thriving and equitable downtown. This would provide funding for projects that support families such as daycares, opportunities for play, and family-sized housing as well as amenities for every generation of individuals, families, residents, and visitors. Debt Service > Projects Eccles Debt Service - $9,644,668 •Debt service for the Eccles Theater. Salt Lake City Debt Service - $3,108,969 •Repayment of debts incurred by Salt Lake City in redevelopment projects. Eccles & Gallivan Programs > Projects 25 Eccles - Maintenance & Repairs - $180,000 •Upkeep and repair of Eccles Theater funded facilities and projects. •>PRJ-000084 Regent Street Parking Structure Reserves -$100,000 •Project created to reserve funds for repairs related to the Regent Street parking structure. •>PRJ-000085 Regent Street Maintenance -$80,000 •Project created for maintenance required for Regent Street. Gallivan - Maintenance & Repairs – $488,733 •Maintenance and repair at the Gallivan Center. •>PRJ-000057 Gallivan Repairs -$488,733 •Project created for repairs associated with the Gallivan Center property owned by the Agency. Gallivan - Administration Assessment - $385,447 •Fees related to the Block 57 Owners Group, formerly Gallivan Utah Center Owners Association. Gallivan - Management & Maintenance Assessment - 591,807 •Fees related to the Block 57 Owners Group, formerly Gallivan Utah Center Owners Association. Gallivan – Programming - $250,000 •Development and management of programs and events at the Gallivan Center. Tax Increment Programs > Projects 26 Taxing Entity Payments - $12,441,752 •Payments to taxing entities as part of interlocal agreements. TI Reimbursements - $3,468,976 •Reimbursements related to tax increment reimbursement agreements. RDA Operations Programs > Projects 27 PRG92030 RDA Charges & Services - $1,107,500 •Expenses for services such as consulting, legal advice, accounting, marketing, audits, travel, software, or other service-related expenses. PRG92059 Operating & Maintenance - $813,000 •Expenses for utilities, facility maintenance, equipment, supplies, and other costs related to Agency operations. PRG92061 Property Management and Maintenance - $1,949,750 •Management and maintenance of properties under the agency’s control, typically within a project area. •>PRJ-000064 RDA -Home Inn Rio Grande Maintenance -$500,000 •This project reserves funds for these obligated for maintenance and repairs related to maintaining the Home Inn property in the Depot District owned by the Agency. PRG92023 Administrative Fees - $1,000,000 •Fees from the City to distribute the costs of shared resources. PRG92063 RDA Personnel - $3,170,296 •Agency employee compensation including salaries, wages, benefits, and other forms of remuneration. MAYOR ERIN MENDENHALL DANNY WALZ Executive Director Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE:May 24, 2024 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 Rio Grande District 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 Rio Grande District project, help attract developers/tenants, and spur adjacent private landowners to make plans for their properties. •Will result in the creation of 50-60 new jobs. • • USA Climbing has an estimated events-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, 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, the RDA estimates the schedule of disposition of the property will be as follows: • • • • • RDA Board approval of term sheet: Q3 2024 Both parties enter into exclusive negotiation agreement: Q3 2024 USA Climbing to refine project design and secure necessary City approvals: Q3 2024 – Q3 2025 Both parties finalize/enter into ground lease and development agreements: Q2 – Q3 2025 USA Climbing breaks ground on project: Q3 2025 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