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06/11/2024 - MinutesThe Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City met on Tuesday, June 11, 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, Cara Lindsley – Deputy Director Present City Staff: Katherine Lewis – City Attorney, Cindy Lou Trishman – City Recorder, Thais Stewart – Deputy City Recorder , DeeDee Robinson – Minutes & Records Clerk, Taylor Hill – Constituent Liaison/Policy Analyst, Scott Corpany – Staff Assistant, Jennifer Bruno – Council Deputy Director, Allison Rowland – Council Staff, Ben Luedtke – Public Policy Analyst, Kate Werrett – RDA Project Manager, Tracy Tran – Project Manager, Marcus Lee – RDA Project Coordinator, Ashley Ogden – RDA Senior Project Manager Director Chair Puy presided at and conducted the meeting.   The meeting was called to order at 1:00 pm. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 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.) There were no public comments.   B.Public Hearing - individuals may speak to the Board once per public hearing topic for two minutes, however written comments are always accepted: 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. Ben Luedtke provided a brief introduction. There were no public comments. Motion: Moved by Director Dugan, seconded by Director Young to close the public hearing. AYE: Daniel Dugan, Sarah Young, Chris Wharton, Darin Mano, Eva Lopez Chavez ABSENT: Victoria Petro, Alejandro Puy Final Result: 5 – 0 Pass MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 2 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. Motion: Moved by Director Dugan, seconded by Director Lopez Chavez to approve. AYE: Daniel Dugan, Sarah Young, Chris Wharton, Darin Mano, Eva Lopez Chavez ABSENT: Victoria Petro, Alejandro Puy Final Result: 5 – 0 Pass 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. Motion: Moved by Director Dugan, seconded by Director Young to adopt Resolution 8 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Darin Mano, Eva Lopez Chavez ABSENT: Alejandro Puy Final Result: 6 – 0 Pass 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. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 3 Kate Werrett provided information regarding: NWQ LLC Tax Increment Reimbursement Phases 2 & 3 • The developer having previously omitted a parcel of land (3.8 acre parcel to be used as a dedicated road) and it was now added/included in the proposed term sheet, the amendment causing no change to the Reimbursable Improvement costs, tax increment projections, or the Maximum Reimbursement • Background: ◦ Master Plan created for the area – August 2016 ◦ Zoning & Overlay Districts – 2016-2018 ◦ Community Reinvestment Area (CRA) Established – January 2018 ◦ Development Agreement – January 2018 ◦ NWQ Tax Increment (TI) Reimbursement Policy – August 2018 ◦ NWQ TI Agreement – May 2020 • Project area map detailing the entire CRA project area (3,300 acres, 1,300 of which could be considered developable) • Site map detailing the phasing of the project • Request overview: ◦ Property size: 954.37 total acres ◦ RDA participation: 70% ◦ Term: 20-years or the sum of the remaining collection years of the project area, whichever was less ◦ Maximum reimbursement: $49,562,855 ◦ Eligible expenses: $288,283,201 • Project overview: ◦ Phases II & III would include light industrial warehousing that might accommodate manufacturing, warehouse, and distribution tenants of various size ◦ Private investment for the planned system-wide improvements and the Phase II & III development included over $1.8B in capital expenditures ◦ Approximately 14.7 million square feet of development would be generated to support 7,300 jobs • Tax increment sources: ◦ Projecting to create $94M ◦ City portion: 25% – $23,601,359 ◦ RDA portion: 75% – $70,804,078 • Tax increment uses: ◦ 70% to the developer ◦ 10% to affordable housing ◦ 10% to RDA Administration ◦ 10% for shared costs • Public Benefits Analysis ◦ Significant infrastructure improvements in the NWQ area, including soil remediation, access to utilities, and renewable energy investments ◦ TI participation assisting with removing development impediments, leading to substantial development in remaining NWQ area ◦ The development having the potential to create billions of new assessed value with an underutilized area MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 4 Motion: Moved by Director Young, seconded by Director Dugan to adopt Resolution 9 of 2024. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Darin Mano, Eva Lopez Chavez Final Result: 7 – 0 Pass Resolution: Amendment to Housing Development Loan Funding 1:40 Allocations for The Catherine 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. Allison Rowland provided an introduction to the briefing. Tracy Tran and Marcus Lee provided information regarding: The Catherine Phase 1 & 2 – Housing Development Loan Program Loan Term Agreement • Background: ◦ Developer: 22 Communities ◦ Funded through competitive Housing Development Loan Program (HDLP) Notice of Funding Availability (NOFA) process ◦ RDA Board allocated $15M to 13 of the 15 projects ◦ Both projects ranked 10 of 15 ◦ Allocations ◾Phase 1: $1M in HOME Program Income Funds ◾Phase 2: $134,323 in RDA Funds ◦ Mix of studio, one-, two-, and three-bedroom units ◦ Developer seeking to restructure the loan into an acquisition loan • Project summary • Proposed amendments: ◦ Amend the loan type for each phase to an acquisition loan that may convert to a construction to permanent loan within two years ◦ Allow for conditional waiver of affordable deed restriction – removing 30- year deed restriction by requiring the Developer to pay an above market interest rate if project cannot secure tax credits, financing, and other conditions required to close on construction to permanent loan within two years • Approved terms vs. proposed amendments MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 5 4. • Considerations: ◦ Housing Development Loan Policy (HLDP) policy allows for acquisition loans ◦ The amendment would help with the project’s ability to acquire the property ◦ RDA having taken steps to ensure the developer would not be incentivized to flip the property ◦ If approved, Developer would purchase the property this month • RDA Finance Committee having forwarded a positive recommendation with the requirement that Phase 1 HUD HOME requirements and regulations were met prior to closing Director Mano inquired regarding the remaining NOFA projects and if they were successful in their asks, asked for thoughts from RDA Staff in regards to upcoming NOFA requests and if the Board needed to reconsider the way funding was prioritized. Tracy Tran said the information would be provided to the Board. Motion: Moved by Director Young, seconded by Director Dugan to adopt Resolution 10 of 2024, with the requirement that the Phase I HUD HOME requirements and regulations are met prior to closing. AYE: Victoria Petro, Daniel Dugan, Sarah Young, Chris Wharton, Alejandro Puy, Darin Mano, Eva Lopez Chavez Final Result: 7 – 0 Pass 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. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 6 Ashley Ogden provided information regarding: USA Climbing at Rio Grande • Requested action: RDA Board to consider the resolution and proposed ground lease terms with USA Climbing (USAC) for the construction of the organization’s permanent headquarters and national training facility in the Rio Grande District • Next steps: if approved, RDA and USA Climbing enter an exclusive negotiation agreement until all conditions were met and final ground lease/development agreements could be executed • USA Climbing being the national governing body for the sport of competition climbing in the United States, relocated to Salt Lake City from Boulder, Colorado in 2018 • USA Climbing project goals: ◦ Provide athletes with spaces/support needed to achieve their best ◦ Host large-scale climbing events ◦ Provide indoor climbing access to the community, including underserved populations ◦ Provide true accessibility for all as a principal aspect of the design • The project being a catalytic activation in the Rio Grande District • Site and project details: ◦ Located at southwest corner of 500 West and 300 South ◦ New 65-75 foot tall building ◦ Approximately 45,000 square foot footprint ◦ Adaptive reuse of Salt Lake Mattress Company building ◦ An outdoor plaza that could be utilized for hosting competitions/other public events • Lease area details • Lease rate details • Requested lease abatement schedule details • Common Area Maintenance (CAM) fees to be collected from all Rio Grande District lessees, used to fund maintenance for publicly owned improvements the RDA was constructing, at $1.50/per square foot of gross floor area • Additional community benefits: ◦ Rehab and activation of Salt Lake Mattress Co. building ◦ Design, construction, management of outdoor plaza ◦ 5-year community benefits plan with progress reports to RDA BOD, including youth programming with K-12 schools, workforce development opportunities, etc. • Associated budget impacts – summary of other negotiated areas of RDA financial participation in the project as well as a few outside costs • Next steps: ◦ Execute agreement ◦ USAC to refine design and launch capital funding campaign for construction costs ◦ Coordination on design and construction of district-wide public improvements ◦ Execute ground lease/development agreements when conditions were met MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 7 Director Young said it was important for the Board to consider that the City was currently trying to undo the compartmentalization of an area downtown while, at the same time in the Rio Grande District, constructing what would be very high walls for this project; needing to pay attention to the activation 360 degrees around the project to avoid continued compartmentalization. Director Mano questioned what would happen in the event the project was not successful, both during construction or development fundraising, or even once constructed/operating the business model was not effective and the facility could not be maintained. Ashley Ogden said that was addressed in the term sheet and it specified that USAC must be the owner or tenant of those improvements, otherwise they would be required to seek the RDA’s permission to reassign the improvements or use to another entity. Danny Walz confirmed this was a ground lease, the RDA would continue to own the land, the RDA would have recourse throughout the agreement in terms of the status of the project and retained the ability to approve a reassignment or different use. Director Mano requested a small group meeting with City Attorneys and the RDA to understand/discuss the projects terms and what may happen in the event of default. Danny Walz said the details could be laid out in a meeting with RDA and attorneys to better understand the terms in place. 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. Jennifer Bruno clarified this item was listed on the agenda for any follow-up questions from Directors, otherwise to be aware of the motion sheet for the Formal meeting this evening to consider adopting the final budget for FY25, and further clarified that the holding accounts that were discussed in previous RDA budget work sessions would come back to the Board for final approval. Director Mano thanked Council and RDA Staff for helping the Board get to this point in the budget season. 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. Item not held. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 8 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. Danny Walz provided the following staff updates: • Office Facilitator, Felina Lazalde, took a promotion with the City’s Economic Development Department • Newly hired employee Meghan Fenton recently started as the new Office Facilitator • Newly hired project staff, Browne Sebright • Wayne Mills, previously with the Planning Department, was recently hired as an RDA Senior Project Manager • Lucas Goodrich, agency project staff for the last year and a half, was recently hired to become the new Director of the Gallivan Center • RDA’s Communication Manager, Amanda Greenland would be leaving the RDA after nine years, to be the City’s Public Affairs Manager with the IMS Department 9.Report of the Chair and Vice Chair TENTATIVE 5 min. Report of the Chair and Vice Chair. Item not held. MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 9 Report and Announcements from RDA Staff T(NT$TI9(8. 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.   Written briefing only. No discussion was held.   E.Consent – the following items are listed for consideration by the Board and can be discussed individually upon request. A motion to approve the consent agenda is approving all of the following items: 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 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 10 Adjournment   6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code § 78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. Item not held. G.   MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, June 11, 2024 11 Meeting adjourned at 2:02 pm. Minutes Approved: August 13, 2024. _______________________________ Redevelopment Agency Chair Alejandro Puy _______________________________ City Recorder – Cindy Trishman 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, June 11, 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, June 11, 2024 12 Alejandro Puy (Aug 28, 2024 13:11 MDT) $ndy Tr$.#(an (Aug 28, 2024 20:ф1 MDT) Approved August 13, 2024 - June 11, 2024 RDA Meeting Minutes Final Audit Report 2024-08-29 Created:2024-08-14 By:DeeDee Robinson (deedee.robinson@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAA180_A1I1zYsM0RqEaqaVYHbr-fc5uJCd "Approved August 13, 2024 - June 11, 2024 RDA Meeting Minut es" History Document created by DeeDee Robinson (deedee.robinson@slcgov.com) 2024-08-14 - 10:00:35 PM GMT Document emailed to alejandro.puy@slcgov.com for signature 2024-08-14 - 10:09:47 PM GMT Email viewed by alejandro.puy@slcgov.com 2024-08-14 - 10:21:02 PM GMT Email viewed by alejandro.puy@slcgov.com 2024-08-21 - 7:49:10 PM GMT Email viewed by alejandro.puy@slcgov.com 2024-08-28 - 9:04:23 AM GMT Signer alejandro.puy@slcgov.com entered name at signing as Alejandro Puy 2024-08-28 - 7:11:51 PM GMT Document e-signed by Alejandro Puy (alejandro.puy@slcgov.com) Signature Date: 2024-08-28 - 7:11:53 PM GMT - Time Source: server Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2024-08-28 - 7:11:55 PM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2024-08-29 - 2:51:03 AM GMT - Time Source: server Agreement completed. 2024-08-29 - 2:51:03 AM GMT