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HomeMy WebLinkAbout12/10/2024 - Meeting Materials    Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA December 10, 2024 Tuesday 2:00 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: 11:03:03 Comments:A.   1.General Comments to the Board ~ 2:00 p.m.  5 min. The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to 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: NONE.   C.Redevelopment Agency Business - The RDA Board of Directors will receive information and/or hold discussions and/or take action on:   1.Approval of Minutes ~ 2:05 p.m.  5 min. The Board will approve the meeting minutes of September 10, 2024 and October 8, 2024.  2.Informational: Ballpark NEXT Urban Design Framework Update ~ 2:10 p.m.  30 min. The Board will receive a briefing about re-envisioning the City-owned Smith’s Ballpark and parking lot. The Ballpark NEXT Design framework includes three design scenarios; reuse of the existing stadium in its entirety, adaptive reuse of a portion of the stadium, and removal of the stadium. 3.Informational: Accessory Dwelling Unit Financing Program ~ 2:40 p.m.  20 min. The Board will receive a briefing and potentially conduct a straw poll, on RDA staff’s recommended selection from the Notice of Funding Availability (NOFA) organized to fund a new Accessory Dwelling Unit (ADU) Financing Program. The recommended selection, the Community Development Corporation of Utah (CDCU), would use the $2.9 million in funding to assist qualified homeowners with the construction of 15-20 ADUs on their properties. For 2025-26, the program would be restricted to the 9-Line Project area only.   4.Resolution: Rio Grande District Vision and Implementation Plan ~ 3:00 p.m.  20 min. The Board will receive a briefing and consider a resolution adopting 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.  5.Leadership Structure Change Discussion - RDA Bylaws Amendment TENTATIVE  30 min. The Board will have a discussion and consider approving a proposal to adjust Council/Board leadership positions. 6.Report and Announcements from the Executive Director TENTATIVE  5 min. Report of the Executive Director, including a review of information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input. 7.Report and Announcements from RDA Staff TENTATIVE  5 min. The Board may review Board information and announcements. The Board may give feedback on any item related to City business, including but not limited to scheduling Items.  8.Report of the Chair and Vice Chair TENTATIVE  5 min. Report of the Chair and Vice Chair.   D.Written Briefings – the following briefings are informational in nature and require no action of the Board. Additional information can be provided to the Board upon request: NONE.     Adjournment   E.Consent – the following items are listed for consideration by the Board and can be discussed individually upon request.  A motion to approve the consent agenda is approving all of the following items: NONE.   F.Tentative Closed Session The Board will consider a motion to enter into Closed Session. A closed meeting described under Section 52-4-205 may be held for specific purposes including, but not limited to:  1.discussion of the character, professional competence, or physical or mental health of an individual;  2.strategy sessions to discuss pending or reasonably imminent litigation;  3.strategy sessions to discuss the purchase, exchange, or lease of real property:   (i)disclose the appraisal or estimated value of the property under consideration; or   (ii)prevent the public body from completing the transaction on the best possible terms;  4.strategy sessions to discuss the sale of real property, including any form of a water right or water shares, if:   (i)public discussion of the transaction would:    (A)disclose the appraisal or estimated value of the property under consideration; or    (B)prevent the public body from completing the transaction on the best possible terms;   (ii)the public body previously gave public notice that the property would be offered for sale; and<   (iii)the terms of the sale are publicly disclosed before the public body approves the sale  5.discussion regarding deployment of security personnel, devices, or systems; and  6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code § 78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. G.   CERTIFICATE OF POSTING On or before 5:00 p.m. on _____________________, the undersigned, duly appointed City Recorder, does hereby certify that the above notice and agenda was (1) posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701, and (2) a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda, including but not limited to adoption, rejection, amendment, addition of conditions and variations of options discussed. The City & County Building is an accessible facility. People with disabilities may make requests for reasonable accommodation, which may include alternate formats, interpreters, and other auxiliary aids and services. Please make requests at least two business days in advance. To make a request, please contact the City Council Office at council.comments@slc.gov, 801-535-7600, or relay service 711. 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 Budget & Policy Analyst DATE:December 10, 2024 RE: INFORMATIONAL: ACCESSORY DWELLING UNIT FINANCING PROGRAM Board Members will receive a briefing, and potentially conduct a straw poll, on a recommendation for using $2,913,215 to fund a proposed new Accessory Dwelling Unit (ADU) Financing Program. Most of this amount must be used in the 9-Line Community Reinvestment Area, per the 9-Line Interlocal Cooperation Agreement with Salt Lake County. However, the Board allocated $1,000,000 of the total from the Housing Development Fund and encouraged RDA staff to consider proposals in any areas of the City west of the I-15 freeway. Three proposals were submitted to the Notice of Funding Availability (NOFA) for this program, and the RDA Finance Committee unanimously recommended funding the proposal submitted by the Community Development Corporation of Utah (CDCU), using the full $2.9 million allocation. A summary of CDCU’s proposed program can be found on page 7 of the transmittal, and RDA staff summaries of all three applications can be found in Attachment C1, below. Pending the Board’s direction, RDA staff would negotiate the final agreement with CDCU for approval at a future Board meeting. ADDITIONAL AND BACKGROUND INFORMATION A.CDCU Proposal. The RDA’s recommended application, from the Community Development Corporation of Utah (CDCU), would assist qualified homeowners with the construction of ADUs which would be offered as rental units on the homeowners’ properties, beginning in 2025. CDCU would establish a combination grant and loan program, as well as helping participants with property management and establishing a loan-loss reserve fund. The program would be piloted for up to two years, or until the full $2.9 million is spent. CDCU anticipates facilitating the construction of 15-20 ADUs during that period. The program would be open to two types of homeowners: those who earn up to 80% of AMI, and those who earn more than that. Lower-income homeowners could rent their ADUs at market rate, while higher-income owners would be required to keep the rental price affordable to those earning 80% of AMI or less. CDCU Item Schedule: Briefing: December 10, 2024 Set Date: n/a Public Hearing: n/a Potential Action: TBD Page | 2 would be charged with compliance monitoring. The organization also would offer a website for applications to the program, and would market it through websites, social media, events, and community partnerships. B.Compliance and Program Assessment. The RDA reported the following in terms of monitoring measuring success for the ADU program: “Overall program compliance, including the RDA’s role in compliance, will be determined as part of the negotiations with CDCU. CDCU has tentatively proposed to manage affordability compliance in-house. In other areas, such as the ADU development process, compliance will be overseen by the City’s existing departments at their normal touchpoints (Planning, Building, Engineering, etc.).” C.9-Line CRA Revenue for the RDA. When Salt Lake City and Salt Lake County established the 9-Line Community Reinvestment Area in 2021, the parties agreed (in part) to condition the RDA’s portion of the tax increment revenue received upon establishing an ADU program, developing an anti-displacement policy, and creating a sustainable development policy by 2025. This means that by establishing an ADU program, and meeting the other two conditions, beginning in 2026 the RDA’s share of project area revenue would rise to 60% of the tax increment from 50% currently. The projected FY25 County portion of tax increment is $652,769. POLICY QUESTIONS 1. The Board may wish to request additional information on the other two applications for these funds, specifically, what were the advantages and disadvantage of each? 2. The Board may wish to request that alternatives to application-via-website be offered for those who may not have trouble-free access to the internet. Similarly, the Board could request that special efforts be made as part of CDCU’s outreach to contact these homeowners. 3. The Board may wish to inquire how CDCU would make the outreach and the application process accessible to homeowners who primarily speak Spanish or other languages rather than English. ATTACHMENT Attachment C1. RDA Staff Summaries of ADU Program Applications. Attachment C1. RDA Staff Summaries of ADU Program Applications. SUMMARY OF APPLICATIONS Community Development Corporation of Utah (Ranked 1st with a score of 25.8/30) CDCU’s application proposes a program that offers financing and property management assistance. The proposed program consists of a combination grant and loan product that is available to either (1) homeowners earning up to 80% of AMI and renting their ADU at market rate, or (2) homeowners earning greater than 80% Page | 4 of AMI and renting their ADU at a rate affordable to renters earning 80% of AMI. CDCU’s proposal does not include outside funding but the applicant is “in constant conversation with other national CDFIs and financial institutions to build a loan fund pool for affordable and innovative financial solutions.” The program would offer a website where homeowners could apply for the ADU financing program. CDCU proposes to market this program through websites, social media, events, and community partnerships. CDCU currently offers complimentary programs, including a financial coaching & education program, a home buyer education program, and the Tenant Resource Center. CDCU is asking for the full $2.9 million in RDA funds to pay for program servicing, a loan loss reserve fund, a grant fund, and a revolving loan fund. It proposes launching this program in 2025. NeighborWorks Salt Lake (Ranked 2nd with a score of 21.3/30) NeighborWorks proposes a holistic program, offering guidance for homeowners from design to property management. Its program envisions different loans for homeowners earning 80% of AMI or less, those earning 80% of AMI or more, and those earning between 100% and 120% of AMI—with each group eligible for a different loan amount. NeighborWorks proposes an online application in both English and Spanish. NeighborWorks currently offers a complimentary financial education program. NeighborWorks proposes partnering with Strawtegi on this program, which would provide design and construction services. Strawtegi specializes in sustainable construction techniques using local and carbon- neutral materials. Strawtegi proposes using this funding to launch an off-site modular ADU production facility that will offer 3 ADU options. NeighborWorks offers $1.5 million of its own funding and is asking for the full $2.9 million in RDA funds to pay for administrative costs, marketing, office expenses, staff time, legal and consulting fees, and the creation of a loan fund. It proposes launching its program in 2025. Viking Capital (Ranked 3rd with a score of 18.6/30) Viking Capital proposes a purely financial program and exhibits the greatest amount of lending experience and financial capacity. Its program envisions a dual loan and grant program, sized up to a 45% debt-to-income ratio, that would allow the homeowner to rent at rates affordable to tenants earning 80% of AMI. Leveraging its vast pool of lending partners, Viking Capital is offering to bring up to $150,000 of funds per loan to the program. Along with or in place of a grant, Viking Capital offers the option to reduce the borrower’s monthly debt service payment by using RDA funds to buy down the interest rate or cover lending fees. Viking Capital proposes vetting any ADU builders interested in being part of the program’s list of vetted builders. This program would use RDA funds to give grants to homeowners, buy down interest rates, or cover lending fees. Viking Capital has not indicated having done prior lending work in Utah. Viking Capital proposes launching its program in 2025. Comparison Chart CDC Utah NeighborWorks Salt Lake Viking Capital Review Committee Score 25.8 out of 30 21.3 out of 30 18.6 out of 30 Loan Terms Up to $200,000 30-year amortization 5-year term with 5-year extension option 3% fixed rate $2,000 origination fee Up to $250,000 <80% AMI: recapture loan 80-100% AMI: 50/50 recapture and below-market interest loan 100-120% AMI: low-interest loan Up to $200,000 6% fixed rate 2-year term Page | 5 Interest only for first 12 months with a capitalized construction period interest reserve funded from loan proceeds. Grant Terms Up to $50,000 N/A $50,000 to $100,000 Other Services Included Required participation in landlord training and financial counseling programs. Pre-selected ADU builder (Strawtegi) with 3 ADU models Educational components and workforce development List of vetted ADU builders Outside Funding Committed $0 $1.5 million Up to $150,000 per loan RDA Funding Request $2.9 million $2.9 million $2,325,000 (includes 2 years of operating expenses) Use of RDA Funds Revolving loan fund Grant fund Loan loss reserve Program servicing Loan fund Operating expenses Salaries and wages Office expenses Marketing Professional fees Partnership expenses Operating expenses (marketing, administrative) Grant fund Interest rate buydown Lender and dealer fees Affordability Compliance In-house, $200/yr fee In-house, $50/yr fee Not specified Marketing Web, social media, events, and community partnerships Web, social media, events, community partnerships, and print flyers Web, social media, direct mail Proposed Program 2025 2025 2025 Launch Projected ADUs Constructed 15-20 10 60 Page | 1 INFORMATIONAL MEMO CITY COUNCIL and REDEVELOPMENT AGENCY BOARD of SALT LAKE CITY December 3, 2024 At the request of several Council Members, the Chair has scheduled a discussion on a proposal for a change in leadership structure for the City Council and Redevelopment Agency Board. The proposal would alter the overall leadership structure of the Council/Board, with one Chairperson, and two vice-chairpersons. One of the vice-chairpersons would assist the Chair in their duties with City Council agenda setting and related matters, and the other vice-chairperson would assist the Chair in their duties with RDA agenda setting and related matters. There is no legal requirement for the RDA Board to elect separate persons to serve as RDA Chair/Vice Chair than the Council Chair/Vice Chair, although it has historically been the City’s practice for those to be four different people. Under the proposal, there would be three leadership positions. If the Council is interested in this concept, staff can request the Attorney’s office prepare two resolutions – one that would amend the Bylaws of the Board of the Redevelopment Agency of Salt Lake City, and one that would amend the Council Rules of Procedure. The Board and Council would need to act on both during RDA and Council Meeting on December 10 in order for changes to be effective in time for the first meeting in January, when those positions are selected. If a majority of the Council/Board approve these resolutions, the Council/Board may also wish to consider how this may affect the proposed ordinance adding leadership stipends, which is also slated for consideration on December 10th. By way of reminder, the current draft ordinance sets leadership stipends as follows: Council Chair: $3,000 Council Vice Chair: $2,000 Redevelopment Agency Chair: $1,500 Redevelopment Agency Vice Chair: $1,000 The Council may also wish to discuss some of the logistical implications of this type of change, such as: Who would attend Chair and Vice Chair meetings and how frequently? If three Council Members are in leadership, would meetings be scheduled with all three? How would RDA staff be involved in Chair and Vice Chair meetings? Who would Chair the RDA Meetings? How would City and RDA policy issues be decided? Who would be the official spokesperson for the RDA? How would seniority among Council Members and leadership be handled?