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Home My WebLink About01/13/2026 - Meeting Materials Board of Directors of the SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY AGENDA January 13, 2026 Tuesday 2:00 PM Council Work Room 451 South State Street, Room 326 Salt Lake City, UT 84111 CRA.SLC.GOV BOARD MEMBERS: Victoria Petro Alejandro Puy Chris Wharton Eva Lopez Chavez Erika Carlsen 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 CRA 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: 12:55:50 Comments:A. 1.General Comments to the Board ~ 2:00 p.m. 5 min. The CRA Board of Directors will receive public comments regarding Community Reinvestment Agency business in the following formats: 1.Written comments submitted to the CRA Board offices: 451 South State Street, Suite 304, P.O. Box 145476, Salt Lake City, UT. 84114-5476. 2.Comments to the CRA Board of Directors. (Comments are taken on any item not scheduled for a public hearing, as well as on any other CRA 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.Community Reinvestment Agency Business - the CRA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Election of Chair and Vice Chair ~ 2:05 p.m. 15 min. The Board will take a straw poll to nominate the Board Chair (a one-year term) and Vice Chair (a one-year term). The process includes expressions of interest from Board Members, nominations for each position, and then voting each for the Chair and Vice Chair positions. 2.Board Appointment: Reinvestment Advisory Committee – Ian Joyce ~ 2:20 p.m. 5 min. The Board will interview Ian Joyce, resident of District 7, prior to considering appointment to the Reinvestment Advisory Committee for a term ending January 21, 2030. 3.Resolution: Accessory Dwelling Unit Financing Program Term Sheet Modifications ~ 2:25 p.m. 20 min. The Board will receive a briefing about and will consider adopting a resolution approving modifications to the term sheet for Accessory Dwelling Unit (ADU) Financing Program with the Community Development Corporation of Utah (CDCU). The request would remove two program terms: CDCU’s right of first refusal on all borrower homes and partial loan forgiveness for owners. 4.Informational: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building ~ 2:45 p.m. 30 min. The Board will receive a briefing and consider options for incorporating the Salt Lake Mattress Company building into the USA Climbing project. While the Board previously approved terms for the disposition of CRA-owned property for USA Climbing’s headquarters and national training center, further evaluation found the Mattress Building would require additional structural reinforcement, increasing project costs to $7.3 million. USA Climbing cannot absorb costs beyond the $6 million provided by the CRA. As an alternative, USA Climbing proposed reconstructing the building using concrete masonry block clad with the historic brick, which would require an additional $250,000. The Board will discuss the $1.3 million funding gap, the historic brick alternative, and other options. 5.Straw Poll: City Creek Daylighting Design Plans ~ 3:15 p.m. 20 min. The Board will receive a briefing on a request to straw poll the use of $216,000 from the North Temple Fund-Strategic Intervention Program to complete the construction drawings for the City Creek Daylighting Project in the North Temple Project Area. 6.Board Appointment: Reinvestment Advisory Committee – Adrienne Bell ~ 3:35 p.m. 5 min. The Board will interview Adrienne Bell, resident of District 4, prior to considering appointment to the Reinvestment Advisory Committee for a term ending January 21, 2030. 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 of the Chair and Vice Chair TENTATIVE 5 min. Report of the Chair and Vice Chair. 9.Report and Announcements from CRA 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: 1. Staff Updates, 2. Project Updates, 3. Gallivan Center Updates, and 4. Scheduling items. 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.Board Appointment: Reinvestment Advisory Committee – Adrienne Bell - - The Board will consider approving the appointment of Adrienne Bell, resident of District 4, to the Reinvestment Advisory Committee for a term ending January 21, 2030. 2.Board Appointment: Reinvestment Advisory Committee – Ian Joyce - - The Board will consider approving the appointment of Ian Joyce, resident of District 7, to the Reinvestment Advisory Committee for a term ending January 21, 2030. 3.Board Reappointment: Reinvestment Advisory Committee – Baxter Reecer - - The Board will consider approving the reappointment of Baxter Reecer, resident of District 5, to the Reinvestment Advisory Committee for a term ending January 21, 2030. 4.Board Reappointment: Reinvestment Advisory Committee – Amy Rowland - - The Board will consider approving the reappointment of Amy Rowland, resident of District 3, to the Reinvestment Advisory Committee for a term ending January 21, 2030. 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 5:00 p.m. on Thursday, January 8, 2026, 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. KEITH REYNOLDS 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. Item C1 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 MOTION SHEET COMMUNITY REINVESTMENT AGENCY of SALT LAKE CITY TO:Board Members FROM: City Staff DATE:January 13, 2026 RE: Election of the CRA Board Chair and Vice Chair for Calendar Year 2026 MOTION 1 I move that the Board ratify the nominations of Board Member ________ as Chair and Board Member ________ as Vice Chair for calendar year 2026. SALT LAKE CITY BOARD MEMBER TRANSMITTAL To: Salt Lake City Council Chair Submission Date: 12/09/2025 Date Sent To Council: 12/17/2025 From: Otto, Rachel Subject: Board appointment Recommendation: Reinvestment Advisory Committee Recommendation: The Administration recommends the Council approve the appointment of Ian Joyce to the Reinvestment Advisory Committee for a 4 year term starting on the date of City Council advice and consent and ending on the third Monday in January. Ian Joyce currently lives in District 7. Approved:* Otto, Rachel Item C3 MOTION SHEET THE COMMUNITY REINVESTMENT AGENCY of SALT LAKE CITY TO:CRA Board Members FROM: Allison Rowland Budget & Policy Analyst DATE:January 13, 2026 RE: RESOLUTION: AMENDING AND RESTATING TERMS FOR THE ACCESSORY DWELLING UNIT FINANCING PROGRAM MOTION 1 – ADOPT I move that the Board adopt the resolution amending and restating terms for the Accessory Dwelling Unit Financing Program. MOTION 2 – NOT ADOPT I move that the Council not adopt the resolution and proceed to the next agenda item. SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY ACCESSORY DWELLING UNIT (ADU) FINANCING PROGRAM TERM SHEET MODIFICATION CRA BOARD OF DIRECTORS MEETING – JANUARY 13, 2026 REQUEST After discussions with CDCU in negotiating program documents, CRA staff and CDCU are requesting to modify the term sheet. This memo requests Board approval through resolution to remove two program terms in the CRA’s Accessory Dwelling Unit (ADU) Financing Program: 1.CDCU’s right of first refusal on all borrower homes 2. Partial loan forgiveness BACKGROUND •Timeline o NOFA released July 2024 o Proposals received September 2024 o Proposals ranked October 2024 o Applicant recommended November 2024 by CRA Finance Committee o Applicant selected December 2024 by CRA Board o Program term sheet approved March 2025 by CRA Board •$2.9 million available o $1.9 million - 9-Line only o $1 million - Unrestricted PROGRAM HIGHLIGHTS •Program is managed by Community Development Corporation of Utah (CDCU) •Program offers financing and income and affordability verification •Program provides construction to second mortgage loan that is available to either: o (1) homeowners earning up to 80% of AMI and renting their ADU at market rate, or o (2) homeowners earning greater than 80% of AMI and renting their ADU at a rate affordable to renters earning 80% of AMI or less. •Program will utilize the full $2.9 million in CRA funds to pay for program servicing, a loan loss reserve fund, and a revolving loan fund. •Program will finance 15-20 ADUs. CDCU PROGRAM DETAILS Loan Terms Up to $200,000 30-year amortization 5-year term with 5-year extension option 3% fixed rate $2,000 origination fee Interest only for first 12 months with a capitalized construction period interest reserve funded from loan proceeds. Forgiveness Terms Up to 10% of the loan balance forgiven for homeowners whose ADUs are rent-restricted to 80% AMI or below Other Services Included Required participation in good landlord training and financial counseling programs. Use of RDA Funds Revolving loan fund Loan loss reserve Program servicing Affordability Compliance In-house, $200/yr fee paid by borrower Marketing Web, social media, events, and community partnerships ANALYSIS 1.Market rents for 1-bedroom ADUs in Glendale or Poplar Grove are closer to 55% of Area Median Income (AMI) affordability. Restricting rents to 80% AMI affordability is unlikely to cause loss of potential rental income. 2.A homeowner renting at 55% AMI affordable rents should be able to operate their rental ADU with an acceptable market return. 3.Loan forgiveness results is a taxable event that would require the CRA and CDCU to distribute IRS forms to each borrower and result in additional administrative burden. ANALYSIS CONSIDERATION After discussions with CDCU in negotiating program documents, CRA staff and CDCU are requesting to modify the term sheet. This memo requests Board approval through resolution to remove two program terms in the CRA’s Accessory Dwelling Unit (ADU) Financing Program: 1.CDCU’s right of first refusal on all borrower homes 2. Partial loan forgiveness SALT LAKE CITY TRANSMITTAL To: Community Reinvestment Agency Chair Salt Lake City Council Chair Submission Date: 12/26/2025 Date Sent to Council: 12/29/2025 From: Department * Community Reinvestment Agency Employee Name: Stine, Robyn E-mail robyn.stine@slc.gov Community Reinvestment Agency Director Signature Mayor's Office Chief of Staff Signature Community Reinvestment Agency Director Signed Date 12/26/2025 Chief of Staff's Signed Date 12/28/2025 Subject: ADU Financing Program Term Sheet Modiﬁcations Additional Staff Contact: Austin Taylor, austin.taylor@slc.govBrowne Sebright, browne.sebright@slc.gov Presenters/Staff Table Austin Taylor, austin.taylor@slc.govBrowne Sebright, browne.sebright@slc.gov Document Type Resolution Budget Impact? Yes No Recommendation: Consider approving modiﬁcations to the term sheet for ADU FinancingProgram with Community Development Corporation of Utah Background/Discussion CRA staﬀ and CDCU are requesting to modify the term sheet. This memo requests Board approval through resolution to remove two program terms in the CRA’s Accessory Dwelling Unit (ADU) Financing Program:1. CDCU’s right of ﬁrst refusal on all borrower homes2. Partial loan forgiveness Public Hearing Is there a City or State statutory requirement to hold a public hearing for this item?* Yes No The City Council reserves the option to hold and notice for a public hearing pursuant to their practices for public engagement. Does the City have a general practice to hold a public hearing for this item?* Yes No Public Process This page has intentionally been left blank SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 115 WWW.SLC.GOV · WWW.CRA.SLC.GOV 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 STAFF MEMO DATE: December 23, 2025 PREPARED BY: Austin Taylor, Project Manager Browne Sebright, Project Manager RE: ADU Financing Program Term Sheet Modifications REQUESTED ACTION: Consider approving modifications to the term sheet for ADU Financing Program with Community Development Corporation of Utah POLICY ITEM: ADU Financing Program BUDGET IMPACTS: Approximately $1.9M in 9-Line Project Area funds and $1M in Housing Development funds EXECUTIVE SUMMARY On July 29, 2024, the Salt Lake City (“City”) Community Reinvestment Agency (“CRA”) released a $2.9M Notice of Funding Availability (“NOFA”) to fund an Accessory Dwelling Unit (“ADU”) financing program. The CRA received three program proposals by the NOFA closing date on September 27, 2024. The proposals were reviewed by an internal review committee and forwarded to the CRA Finance Committee, which recommended funding $2.9 million to the Community Development Corporation of Utah (“CDCU”) proposal. Through a straw poll, the CRA Board of Directors (“Board”) confirmed CDCU as the recipient of NOFA funds at the December 10, 2024, Board meeting and approved the Program’s term sheet at the March 18, 2025 Board meeting. After discussions with CDCU in negotiating program documents, CRA staff and CDCU are requesting to modify the term sheet. This memo requests Board approval through resolution to remove two program terms in the CRA’s Accessory Dwelling Unit (ADU) Financing Program: 1. CDCU’s right of first refusal on all borrower homes 2. Partial loan forgiveness BACKGROUND In its October 2024 proposal, Community Development Corporation of Utah (CDCU) responded to the Community Reinvestment Agency’s (CRA) Notice of Funding Availability (NOFA). CDCU proposed a construction loan program which would lend to SLC Westside homeowners for the construction of ADUs. Among other terms, the program proposed giving borrowers a grant or partial loan forgiveness to make their projects more affordable and requiring borrowers to grant CDCU a right of first refusal. Both terms were approved in the CRA Board’s approval of the program in March 2024. Upon further discussion and analysis, both CRA and CDCU believe that neither the right of first refusal nor partial loan forgiveness terms are necessary. CRA staff is asking for approval to remove these terms from the ADU Financing Program. Please see Attachment A for the proposed modifications to the term sheet. ANALYSIS Right of First Refusal A right of first refusal grants a specific party the first opportunity to purchase a property before it is offered to the general market. When CDCU proposed this program, its leadership believed the right could be useful for ensuring the ADU continues to be rented at an affordable rate if borrowers decide to sell their homes. However, if CDCU purchases a property with an ADU, they would be unable to lease the primary home and continue leasing the ADU due to the City’s ADU owner occupancy requirement. Additionally, a deed restriction requiring affordable rents (required for >80% Area Median Income (AMI) borrowers) already gives CDCU the authority it needs to ensure affordability. CDCU has asked that this term be eliminated. Partial Loan Forgiveness When the CRA Board approved the ADU Financing Program in March 2025, the program proposed offering loan forgiveness of up to 10% of the balance for borrowers who meet all the following qualifications: 1. The borrower household earns more than 80% of the Area Median Income 2. The borrower commits to leasing the ADU or house to a tenant household earning 80% or less of the Area Median Income at affordable rents (as defined by the US Department of Housing and Urban Development) 3. The borrower allows a deed restriction to be placed on their property specifying the rental affordability restriction 4. The borrower passes all CDCU’s annual rental affordability inspections 5. The borrower pays their loan off within 5 years The original intent of the partial loan forgiveness term assumed that the cash flow from an affordable rental unit may not provide an acceptable rate of return for the homeowner. Upon further analysis, CRA staff determined that this partial loan forgiveness is both unnecessary and administratively burdensome. First, we found that market rents for a 1-bedroom ADU in the Glendale and Poplar Grove areas (9- Line Project Area) are generally closer to 55% of Area Median Income affordability. Units created by this program are likely to rent at rates below 80% of AMI, and thus a rental restriction requiring affordability at 80% of AMI is unlikely to result in loss of potential rent at a level that warrants loan forgiveness. Second, we found that a homeowner borrowing $180,000 to build a $200,000 ADU could easily operate their ADU with an acceptable market return at a 55% AMI rent: In the unlikely event that the borrower were able to achieve 80% AMI rents, their returns would be substantial: Lastly, CRA’s finance team learned that loan forgiveness is a taxable event and requires the City and CDCU to distribute IRS Form 1099 to each borrower who receives forgiveness. This administrative work was not originally contemplated and could be burdensome for the CRA, CDCU, and individual homeowners, and should be avoided, if possible. Given our financial analysis, CRA staff does not believe borrowers need loan forgiveness to achieve affordable rents. We are recommending this term be removed from the ADU Financing Program. PREVIOUS BOARD ACTION: • March 23, 2021: The Board adopted the 9-Line Community Reinvestment Area Budget Amendment • October 12, 2021: The Board adopted the amended FY 2021-2022 Budget, allocating $147,535 of Secondary Housing Fund money for an Accessory Dwelling Unit Program • April 12, 2022: The Board adopted Second Budget Amendment for FY 2021-2022 budget, allocating $300,000 of 9-Line Project Area funds for an Accessory Dwelling Unit Program. Project Cost 200,000$ Market Rent (~55% AMI)1,250$ DSCR 1.15 Downpayment 10%Operating Expense 15%(188)$ Cash on Cash 7.0% Loan to Cost 90%Capital Reserves 5%(63)$ Loan Amount 180,000$ Vacancy 10%(125)$ Interest Rate 3%NOI 875$ Term 30 Loan Payment (759)$ Cap Rate 5.5% Monthly Payment (759)$ Monthly Cash Flow 116$ Implied Value 190,909$ Project Cost 200,000$ 80% AMI Rent 1,840$ DSCR 1.70 Downpayment 10%Operating Expense 15%(276)$ Cash on Cash 31.7% Loan to Cost 90%Capital Reserves 5%(92)$ Loan Amount 180,000$ Vacancy 10%(184)$ Interest Rate 3%NOI 1,288$ Term 30 Loan Payment (759)$ Cap Rate 5.5% Monthly Payment (759)$ Monthly Cash Flow 529$ Implied Value 281,018$ • June 14, 2022: The Board adopted the FY 2022-2023 Budget, allocating $10,000 of Secondary Housing Fund money for an Accessory Dwelling Unit Program • June 13, 2023: The Board adopted the FY 2023-2024 Budget, allocating $1,455,680 of 9-Line Project Area funds and $1,000,000 of Housing Development Fund money for an Accessory Dwelling Unit Program • December 10, 2024: The Board selected CDCU as the recipient of the 2024 ADU Financing Program NOFA funding • March 18, 2025: The Board approved the ADU Financing Program’s term sheet with CDCU. ATTACHMENTS • Attachment A: Proposed Modifications to Term Sheet • Attachment B: Resolution ATTACHMENT A – PROPOSED MODIFICATIONS TO TERM SHEET Amended and Restated Term Sheet Partnership with Community Development Corporation of Utah For Accessory Dwelling Unit Financing Program Purpose To allocate $2.9 million in funds to Community Development Corporation of Utah for the administration and delivery of an Accessory Dwelling Unit (“ADU”) ﬁnancing program. Parties Community Development Corporation of Utah (“CDCU” or "Recipient") and the Salt Lake City Community Reinvestment Agency (“CRA”). Program Description CDCU shall make all reasonable eﬀorts to disperse all loan funds by June 30, 2027 to administer an ADU ﬁnancing program for Salt Lake City’s Westside. This shall be accomplished by providing homeowners with ﬁnancial assistance, oﬀering below-market rate interest rate loans and marketing and outreach. Eligible Activities CRA funds will be used for a revolving loan fund, a loan loss reserve, and program servicing for the purpose of ADU construction west of I-15 in Salt Lake City municipal boundaries. Proposed Funding Terms $2,913,215 will be allocated in two accounts based on their source of funding.  Amount: A total of $2,913,215 o 9-Line Project Area $1,913,215 o Westside (west of I-15) $1,000,000 The CRA will disburse funds to CDCU on a per-project basis. Each installment will equal the amount required to fund the project’s loan and cover eligible fees, contingent upon adherence to the requirements and conditions outlined below. This allocation and disbursement schedule may be subject to future changes as approved by the CRA Board. CRA funds contributed to the program’s revolving loan fund and loan loss reserve funds remain property of the CRA. Funds not distributed from the revolving loan fund and loan loss reserve fund will revert back to the CRA on June 30, 2027. Principal and interest payments made back into the revolving loan fund will become the property of the CRA. Aﬀordability and Compliance Financing will be available to two types of homeowners: 1. Homeowners earning 80% of AMI or below who construct an ADU on their property.  These homeowners will not be restricted in renting the ADU; the ADU can be lived in by the homeowner or rented to anyone at any price.  These homeowners must qualify using their household income at the time of application to the program and at ﬁnancial close.  Earning greater than 80% of AMI after loan closing does not disqualify the homeowner from participating in the program nor renting at market rates. 2. Homeowners earning greater than 80% of AMI who construct an ADU on their property.  These homeowners must rent either the ADU or the primary house at rents aﬀordable to households veriﬁed as earning 80% of AMI or below. This rental restriction shall last for the term of the loan.  These homeowners must agree to the following compliance procedures: o CDCU will screen the tenants of the restricted property for income qualiﬁcation upon lease application. Income veriﬁcation will take place before the lease begins. o Owners will comply with an annual veriﬁcation with CDCU to conﬁrm whether the tenant remained in the unit or if a new tenant has been selected. o Owners will agree that compliance documentation submitted to CDCU may be retained for audit purposes. CDCU will conduct annual aﬀordability compliance with a $200/year fee charged to each participating homeowner. All household income and aﬀordability standards shall be determined by the U.S. Department of Housing and Urban Development. Loan Terms for Homeowners  Up to $200,000 per property  30-year amortization  5-year term with 5-year extension option  3% ﬁxed interest rate  $2,000 origination fee paid by homeowner to CDCU, $200 of which is payable as an application fee and the remainder may be included in the loan amount.  Interest-only payments for ﬁrst 12 months, with a capitalized construction period interest reserve funded from loan proceeds. Ownership Requirements and Participation Financing shall be made available only to homeowners who use their property as their primary residence. Homeowners shall be required to participate in the Salt Lake City Good Landlord training program (which includes obtaining a business license) and CDCU’s ﬁnancial counseling programs. Payment Collection and Administrative Fee At the close-out of a loan, CDCU may collect a $1,000 administrative fee from the sum of the loan’s principal and interest payments. The remaining amount will be transferred back to the CRA. Marketing CDCU will use web, social media, in-person events, and community partnerships to engage Westside homeowners in the program. Materials and services, to the extent feasible, shall be oﬀered in both English and Spanish. CRA will share this information on its web and social media accounts, via press releases and direct mail, and by attending in-person events as staﬀ availability allows. Sustainability  Detached ADU projects must comply with the CRA Sustainable Development Policy, which requires all new construction projects to achieve a Designed to Earn the ENERGY STAR score of 90 or more and be designed to operate without onsite fossil fuel combustion.  Attached or internal ADU projects may be granted a waiver from sustainability requirements. Reporting and Accountability  CDCU shall provide quarterly progress reports through the administration of the program.  Quarterly reports should include, but are not limited to, the following items: o Number of loan applications o Number of loan applicants who meet threshold requirements o Number of construction loan commitments made o Number of construction loans closed o Details of each construction loan funded  Location of ADU project  Cost of ADU project  Size or design of ADU (including whether internal, attached or detached)  Requested amount  Funded amount  Household size  Household income/AMI level o Compliance of rented aﬀordable ADUs  Percent of rented aﬀordable ADUs in compliance  Report of rented aﬀordable ADUs not in compliance, if any Compliance and Legal Requirements Recipient is required to take the following actions to meet the CRA’s compliance and legal requirements:  Comply with all local, state, and federal regulations, including zoning, environmental, and fair housing laws.  Execute loan documents (e.g. promissory notes, loan agreements, security documents, restrictive use agreements) as requested by the CRA and its legal counsel.  Receive approval from the CRA and its legal counsel of all matters pertaining to title, legality of the loan, and the legality, suﬃciency, and the form and substance of all documents that are requested by CRA for the loan transaction.  Provide evidence of insurance in such amounts and with such coverage as requested by the CRA for the property.  Use grant funds solely for the purposes outlined in this term sheet. Any deviation requires prior written approval from the CRA.  Such other terms as requested by the CRA’s legal counsel and staﬀ. Conditions to Fund The funding is provided with the following pre-conditions that CDCU must meet to receive funding:  Provide to the CRA any additional sources of program ﬁnancing, including letters of commitment for additional funding.  Provide evidence and secure CRA approval of an aﬀordability compliance process.  Use of funds strictly for Eligible Activities related to the project.  CDCU, to the extent possible, ensures that all projects obtain required city approvals and building permits for each project. Events of Default The following occurrences will constitute an event of default:  Failure to meet program obligations or deadlines in the judgment of CRA.  Failure to monitor/maintain the aﬀordability requirements to the satisfaction of the CRA.  Failure to provide quarterly development reports.  Failure to comply with any other City, State, or Federal requirements.  Any use or appropriation of funds not in strict compliance with this term sheet or other agreement with the CRA.  Insolvency, bankruptcy, or cessation or project activities.  Any material misrepresentation or breach of the terms of the grant agreement. Remedies Remedies if CDCU fails to cure in the event of a default may include, but are not limited to:  If CDCU does not meet the initial conditions for funding, the CRA will not distribute funds.  Any unspent or improperly used funds must be returned to the CRA.  Once funds are distributed and upon an event of default, the CRA may: o File a breach of contract claim, which may include claims for:  Liquidated damages  Injunctive relief, and/or  Speciﬁc performance o File a direct action against CDCU to comply with their obligations. o Any other remedies available at law or equity. Indemniﬁcation CDCU will indemnify, hold harmless and defend the CRA, its agents and employees from losses, claims, demands, actions, damages or costs of any kind arising out of or related to CDCU’s administration of the ﬁnancing program. ATTACHMENT B - RESOLUTION SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY RESOLUTION NO. _____ AMENDING AND RESTATING TERMS FOR THE ACCESSORY DWELLING UNIT FINANCING PROGRAM RESOLUTION OF THE BOARD OF DIRECTORS OF SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY AMENDING AND RESTATING THE TERM SHEET FOR AN ACCESSORY DWELLING UNIT FINANCING PROGRAM TO BE MANAGED BY THE COMMUNITY DEVELOPMENT CORPORATION OF UTAH WHEREAS, the Salt Lake City Community Reinvestment Agency (CRA) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the Act). WHEREAS, the Act grants the CRA powers to use funds to provide for project area development within project area boundaries. WHEREAS, on January 20, 2021, the CRA approved the Interlocal Cooperation Agreement between Salt Lake County and the Redevelopment Agency of Salt Lake City (now known as the CRA) for the 9-Line Project Area which contemplated the CRA’s creation of an accessory dwelling unit (ADU) loan or subsidy program for the 9-Line Project Area. WHEREAS, on October 12, 2021, the CRA Board adopted the amended FY 2021-2022 Budget, allocating $147,535 of Secondary Housing Fund money for an ADU program. WHEREAS, on April 12, 2022, the CRA Board adopted the Second Budget Amendment for FY 2021-2022, allocating $300,000 of 9-Line Project Area funds for an ADU program. WHEREAS, on June 14, 2022, the CRA Board adopted the FY 2022-2023 Budget, allocating $10,000 of Secondary Housing Fund money for an ADU program. WHEREAS, on June 13, 2023, the CRA Board adopted the FY 2023-2024 Budget, allocating $1,455,680 of 9-Line Project Ara funds and $1,000,000 of Housing Development Fund funds for an ADU program. WHEREAS, on July 29, 2024, the CRA released a Notice of Funding Availability (NOFA) to fund programs that finance ADU construction and received three responses. WHEREAS, Community Housing Development Corporation of Utah (CDCU) was one of the applicants to the NOFA and proposed a program that met all of the NOFA threshold requirements. WHEREAS, the CRA Finance Committee reviewed all three program proposals in a meeting on November 20, 2024, and voted to recommend the CDCU proposal to the CRA Board for approval. WHEREAS, on March 18, 2025, the CRA Board approved the original ADU Financing Program term sheet. WHEREAS, based on discussions with CDCU in the negotiation of program documents, the CRA staff recommends certain modifications to the attached set of terms (the Amended and Restated Term Sheet) that omits both a right of first refusal that the original term sheet would have required from borrowers to CDCU and a partial loan forgiveness option. NOW, THEREFORE, BE IT RESOLVED by the Board that it approves the modifications to the proposed CDCU ADU Financing Program as reflected in the Amended and Restated Term Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations of the CRA hereunder. The Board authorizes the Executive Director to negotiate and execute the funding agreement and any other relevant documents consistent with the Amended and Restated Term Sheet, and incorporate such other terms and agreements as recommended by the City Attorney’s office. Passed by the Board of Directors of the Salt Lake City Community Reinvestment Agency, this ___day of, 2026. Chair Approved as to form: /s/ Jennifer Huntsman Salt Lake City Attorney’s Office Jennifer Huntsman Date: The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting. Erin Mendenhall, Executive Director Attest: City Recorder This page has intentionally been left blank 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 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY26 TO:CRA Board Members FROM:Kate Werrett, Budget and Policy Analyst DATE:January 13, 2026 RE:USA Climbing at Rio Grande District – Salt Lake Mattress Company Building ________________________________________________________________________________ ISSUE AT-A-GLANCE This staff report includes a request from the Community Reinvestment Agency (CRA) staff for guidance regarding potential modifications to Resolution No. 13 of 2024, which authorizes the lease rate and terms for the USA Climbing Headquarters and Training Facility located at approximately 500 West 300 South. Under this resolution, the CRA agreed to support USA Climbing (USAC) in the rehabilitation of the historic Salt Lake Mattress Company (SERTA Building) Building by providing $6 million in rehabilitation funding. Subsequent construction cost estimates exceeded initial projections, and USAC is unable to cover the additional expenses. Two potential options have been identified for consideration to determine the path forward. CRA staff is seeking guidance from the CRA Board regarding these options and direction on how to proceed. Goal of the briefing: Receive details regarding changes to the existing resolution, discuss the proposed modifications, and provide direction to CRA staff. ADDITIONAL & BACKGROUND INFORMATION USA Climbing is developing construction plans for its headquarters, which will be located at approximately 500 West 300 South. This location is within the CRA’s Rio Grande District and is located within the expired CRA Depot District as well as the SL Central Housing and Transit Reinvestment Zone (HTRZ) project area. To support catalytic development within the CRA’s project area, the CRA is collaborating with USA Climbing on the headquarters project, which is anticipated to draw visitors, spur investment, and contribute to a more active and well-utilized surrounding area. The attached resolution includes the details of the term sheet and of the USAC agreement. The project’s public benefits included in the resolution include: Equitable and inclusive programming Transportation demand management strategies Activation of the historic Salt Lake Mattress Company Building Design, construction, management, and participation in the maintenance of an outdoor plaza The SERTA Building rehabilitation was anticipated to save the shell of the building, not the interior. USAC received a $7.3 million cost estimate to complete this renovation work. USAC does not have the capacity to contribute the additional $1.3 million required for the rehabilitation and has therefore proposed two options for moving forward: Page | 2 Option 1: The CRA provides an additional $1.3 million to support the rehabilitation of the building shell. To fund this request, the CRA would need to reallocate resources from other projects or programs. Option 2: USAC has proposed taking the building down and rebuilding the structure with concrete masonry brick walls and the original brick used as both interior and exterior facades throughout. The building would be more structurally sound and would be built to meet the CRA’s Sustainable Development Policy. NOTE: If this option is selected, USAC will need an additional $250,000 to move forward with this option. The CRA could use contingency funds to cover this additional cost. Additional details on the proposed adaptive reuse and the reconstruction options are located within the CRA transmittal. ATTACHMENTS 1.CRA Transmittal: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building 2.Resolution No. 13 of 2024 Authorizing Lease Rate and Terms for USA Climbing Headquarters and Training Facility at Approximately 500 West 300 South 3.Rio Grande District Vision and Implementation Plan USA Climbing at Rio Grande CRA Board of Directors January 13, 2026 Salt Lake Mattress Co. Building Request Consider proposed options for incorporation of the historic Salt Lake Mattress Company building into the USA Climbing project. Options include adaptive reuse OR reconstruction using historic materials. Salt Lake Mattress Co. Building Graphics from Rio Grande District Vision & Implementation Plan (2024) 1907 2020 (post earthquake)2020 (post reinforcement) Salt Lake Mattress Co. Building USA Climbing HQ & National Training Center 310 S. 500 West development site and vicinity USA Climbing HQ & National Training Center On July 9, 2024, CRA Board approved term sheet for ground lease of Rio Grande site. Three (3) primary project components: New construction of primary climbing training facility Outdoor plaza Rehabilitation and activation of Salt Lake Mattress Co. Building CRA committed to reimburse USA Climbing up to $6 million for costs associated with rehabilitating Mattress Building. Approximate lease area Proposed Design Northern (front) facade Interface between Mattress Building and new construction Eastern facade Northeast corner Southern (rear) facade Challenges Eastern facade Northeast corner Southern (rear) facade Challenges Adaptive Reuse - $7.3 million Reconstruction - $6.25 million Request Consider proposed options for incorporation of the historic Salt Lake Mattress Company building into the USA Climbing project. Options include adaptive reuse OR reconstruction using historic materials. Both options would result in an aesthetically similar end product. Both options require additional funding (at different scales). Both options involve removal/reappointment of large swaths of historic brick. Reconstruction would minimize safety concerns during construction. Reconstruction would result in a more energy efficient building that supports USA Climbing’s goal to achieve on-site net zero status. Next Steps 1. If the preferred option is adaptive reuse of the Mattress Building: Staff will explore potential funding sources to fill the $1.3 million gap, which may require future budget-related action by the CRA Board. The CRA Board may want to consider amending the term sheet to allow for increased financial contribution by the CRA. 2. If the preferred option is reconstruction of the Mattress Building: Adequate funding (up to $250,000) is already allocated to the Rio Grande District Property Disposition & Site Work Project. The CRA Board may want to consider amending the term sheet to allow for the reconstruction of the Mattress Building, as well as increased financial contribution by the CRA. Mattress Building Terms Community Benefits: “During the term of the lease, USA Climbing is committed to providing the community benefits described below...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.” Additional Terms: “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 [CRA] 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 [CRA] Board of Directors.” SALT LAKE CITY TRANSMITTAL To: Community Reinvestment Agency Chair Salt Lake City Council Chair Submission Date: 01/02/2026 Date Sent to Council: 01/06/2026 From: Department * Community Reinvestment Agency Employee Name: Stine, Robyn E-mail robyn.stine@slc.gov Community Reinvestment Agency Director Signature Mayor's Office Chief of Staff Signature Community Reinvestment Agency Director Signed Date 01/05/2026 Chief of Staff's Signed Date 01/06/2026 Subject: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building New transmittal or Revision New transmittal Revision Revision Updates: The BOD memo for the USAC – SL Mattress Company Building item has been revised based on additional information sent to us earlier this week. Additional Staff Contact: Ashley Ogden, ashley.ogden@slc.gov Presenters/Staff Table Ashley Ogden, ashley.ogden@slc.gov Document Type Information Item Budget Impact? Yes No Recommendation: Consider proposed options for incorporation of the Salt Lake Mattress Company building into the USA Climbing project and provide direction on how to proceed. Background/Discussion On July 9, 2024, the Community Reinvestment Agency Board of Directors (“CRA Board”) approved Resolution No. 13 of 2024 authorizing terms associated with the disposition of CRA-owned property for the development of USA Climbing’s (“USAC”) headquarters and national training center. Per the approved term sheet, the project is to include a) the new construction of the primary climbing training facility, b) the rehabilitation and activation of the historic Salt Lake Mattress Company building (“Mattress Building”), and c) the new construction of an outdoor plaza. The CRA committed to reimbursing USAC up to $6 million for design and construction costs associated with rehabilitation of the Mattress Building. USAC committed to activating the Mattress Building with publicly accessible food, beverage, and retail uses. After bringing a contractor on board and further evaluating what it will take to rehabilitate the Mattress Building, it was determined that additional structural reinforcement would be necessary to maintain a safe work environment during construction. In addition, swaths of the historic brick are unstable and would need to be removed and reappointed. This resulted in a higher-than-anticipated project cost of $7.3 million. USAC has indicated that the organization is unable to absorb any costs beyond the $6 million being provided by the CRA. As an alternative, USAC proposed to reconstruct the Mattress Building using concrete masonry block (CMU) that is clad with the historic brick. The building would be rebuilt to closely match historic conditions, including placement on site, dimensions, fenestration, and other unique features. Beneﬁts of this option include safer working conditions during construction (a key concern for all parties), a safe and eﬃcient building that meets modern seismic and energy building codes, and a lower project cost. Reconstruction of the Mattress Building would require an additional $250,000 (beyond the $6 million already allocated by the CRA). Staﬀ requests that the CRA Board consider both options and provide direction on how to proceed. Public Hearing Is there a City or State statutory requirement to hold a public hearing for this item?* Yes No The City Council reserves the option to hold and notice for a public hearing pursuant to their practices for public engagement. Does the City have a general practice to hold a public hearing for this item?* Yes No Public Process This page has intentionally been left blank SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 115 WWW.SLC.GOV · WWW.CRA.SLC.GOV P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR RIN ENDENHALL Executive Director DANNY ALZ Director STAFF MEMO DATE: January 2, 2026 PREPARED BY: Ashley Ogden, Senior Project Manager RE: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building REQUESTED ACTION: Consider proposed options for incorporation of the historic Salt Lake Mattress Company building into the USA Climbing project POLICY ITEM: Real Property Disposition, Budget BUDGET IMPACTS: Proposed allocation of $250,000 - $1.3 million in additional funds EXECUTIVE SUMMARY: On July 9, 2024, the Community Reinvestment Agency Board of Directors (“CRA Board”) approved Resolution No. 13 of 2024 (Attachment A) authorizing terms associated with the disposition of CRA- owned property for the development of USA Climbing’s (“USAC”) headquarters and national training center. Per the approved term sheet, the project is to include a) the new construction of the primary climbing training facility, b) the rehabilitation and activation of the historic Salt Lake Mattress Company building (“Mattress Building”), and c) the new construction of an outdoor plaza. The CRA committed to reimbursing USAC up to $6 million for design and construction costs associated with rehabilitation of the Mattress Building. USAC committed to activating the Mattress Building with publicly accessible food, beverage, and retail uses. After bringing a contractor on board and further evaluating what it will take to adaptively reuse the Mattress Building, it was determined that additional structural reinforcement will be necessary to maintain a safe work environment during construction. In addition, swaths of the historic brick are unstable and will need to be removed and reappointed. These factors result in a higher-than-anticipated project cost of $7.3 million. USAC has indicated that the organization is unable to absorb any costs beyond the $6 million being provided by the CRA. As an alternative, USAC proposed to reconstruct the Mattress Building using concrete masonry block (CMU) that is clad with the historic brick. Aesthetically, the end result would be similar to what would be achieved via adaptive reuse: same building placement, elevations, fenestration patterns, etc. Benefits of this option include safer working conditions during construction (a key concern for all parties), a safe and efficient building that meets modern seismic and energy building codes, and a lower project cost. Reconstruction of the Mattress Building would require an additional $250,000 (beyond the $6 million already allocated by the CRA). Staff requests that the CRA Board consider both options (described in more detail below) and provide direction on how to proceed. BACKGROUND: The CRA acquired the Mattress Building in 2002 with the intent to rehabilitate and incorporate it into the redevelopment strategy for the neighborhood. Its presence – as one of few remaining historic structures in the immediate area - highlights the history and character of the Salt Lake City Warehouse National Historic District. The Rio Grande District Vision & Implementation Plan (“District Plan”) underscores the importance of the Mattress Building and Macaroni Flats, another historic warehouse that was adaptively reused under a partnership between Artspace (current owner) and the CRA, by placing them at either end of a north-south running plaza located at the heart of the District. In the spring of 2023, the CRA was asked to explore opportunities to locate a new headquarters and national training facility for USAC on CRA-owned property. When USAC expressed interest in the development site located at 310 South 500 West, CRA staff encouraged the incorporation of the adjacent Mattress Building in the project. The initial term sheet, approved by the CRA Board on July 9, 2024, reflects the outcome of negotiations. The CRA committed to reimburse USAC up to $6 million for design and construction costs associated with rehabilitation of the Mattress Building. Maintaining some of the district’s historic warehouse character by activating the Mattress Building with publicly accessible food, beverage, and retail uses is considered a community benefit that will be provided by USAC. ANALYSIS: Since approval of the term sheet, USAC and their team have been designing the project and exploring ways to incorporate the Mattress Building. Early iterations maintained the historic structure and new construction as separate buildings connected via elevated walkway. To accommodate the climbing facility’s space needs, the two buildings were ultimately merged, meaning that most of the eastern façade will not be visible from an exterior perspective. On the north side, the Mattress Building has a loading dock (formerly accessed by railcar) and first floor that are elevated above ground level. For floor levels to match across both historic and new buildings, the design shows the dock removed and ground floor of the Mattress Building lowered to sit at ground level. This adjustment results in a taller first floor and eliminates the functionality of the basement level. Despite these significant alterations to the interior of the building, the intent is to restore the three (3) visible exterior facades to closely match historic conditions. Exceptions include: • On the western façade, lower-level windows that historically served the basement will be raised to sit at ground level and provide transparency/sight lines in and out of the building. Existing window spacing will be maintained. Two (2) of these windows will be replaced with a man door and roll-up garage door to a trash collection room. • New windows have been added to the ground floor on the north and south elevations, with placement and dimensions that correspond with the afore-mentioned ground floor windows on the western façade. • Other exterior modifications include a flattening of the stepped parapet line, removal of a flue/chase on the western side of the building, and removal of the elevator shaft, which is not original to the building. Please see Attachment C for the latest site plan, renderings, and elevation drawings. Attachment D includes elevation drawings that highlight differences in existing/future conditions. In recent months, USAC engaged their construction contractor to create a work plan and cost estimate for the Mattress Building. A structural engineer produced an opinion of the safety of the building and recommended the installation of additional structural reinforcement before beginning any work. A local masonry expert found that large swaths of the historic brick are currently unstable and will need to be removed and reinstated, further compromising the building’s stability (these areas illustrated in Attachment E). Factors like these led to an estimated project cost of $7.3 million. USAC has indicated that they are unable to absorb any costs over the CRA-provided $6 million. To adaptively reuse the Mattress Building, an additional $1.3 million is needed. An alternative option raised by the USAC team would be to reconstruct the Mattress Building using concrete masonry block (CMU) that is clad with the historic brick on the interior and exterior. Aesthetically, the end result would be similar to what would be achieved via adaptive reuse: same building placement, elevations, fenestration patterns, etc. Instead of stabilizing and working around the building’s shell, the building would be deconstructed slowly, with the historic bricks removed one by one, cleaned of mortar and dirt, and stored on pallets until reappointed. Benefits of this option include safer working conditions during construction (a key concern for all parties), more safe and efficient building that meets modern seismic and energy building codes, and a lower project cost. To reconstruct the Mattress Building as described above, an additional $250,000 would be needed. Staff requests that the CRA Board consider the two (2) options outlined above (adaptive reuse vs. reconstruction) and provide direction on how to proceed. NEXT STEPS: 1. If the preferred option is adaptive reuse of the Mattress Building: • Staff will explore potential funding sources to fill the $1.3 million gap, which may require future budget-related action by the CRA Board. • The CRA Board may want to consider amending the term sheet to allow for increased financial contribution by the CRA. 2. If the preferred option is reconstruction of the Mattress Building: • Adequate funding (up to $250,000) is already allocated to the Rio Grande District Property Disposition & Site Work Project. • The CRA Board may want to consider amending the term sheet to allow for the reconstruction of the Mattress Building, as well as increased financial contribution by the CRA. PREVIOUS BOARD ACTION: • On September 29, 2020, the CRA Board conducted a straw poll releasing $865,000 to stabilize the Mattress Building, which had sustained serious damage from the March 2020 earthquake. • On April 16, 2024, the CRA Board adopted a resolution approving FY2024 Budget Amendment #2, which allocated $8,100,000 to the Rio Grande District Property Disposition & Site Work Project. • On July 9, 2024, the CRA Board adopted a resolution authorizing the lease rate and terms for the USA Climbing headquarters and training facility at approximately 500 West 300 South. • On December 10, 2024, the CRA Board adopted a resolution endorsing the CRA’s utilization of the Rio Grande District Vision & Implementation Plan. ATTACHMENTS: A – Resolution No. 13 of 2024 Authorizing Lease Rate and Terms for USA Climbing Headquarters and Training Facility at Approximately 500 West 300 South B – Photos of Salt Lake Mattress Company Building C – Project site plan, renderings, and elevation drawings D – Elevation drawings highlighting differences in existing/future conditions E – Photos highlighting areas of damaged/unstable brick Chair 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. 9 July Alejandro Puy 13 Alejandro Puy (Jul 27, 2024 15:41 GMT+2) ATTACHMENT A 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 Allison Parks (Jul 17, 2024 15:49 MDT) Jul 17, 2024 Jill o1 (Jul 29, 2024 09:5 MDT) Jill Love n in 4 Tris#(an (Jul 29, 2024 1:14 MDT) EXHIBIT A TERM SHEET 1 USA CLIMBING AT RIO GRANDE DISTRICT 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 Clim bing. 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 1 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. 2 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 3 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. 4 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 2. 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 3. 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. 5 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. RDA to review USA Climbing’s projected operating pro forma to ensure that future ground lease payments are supported and the Project will be maintained, during the term, consistent with the RDA Board-approved term sheet. 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. 6 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. 7 Exhibit 1: Lease Area 8 Exhibit 2: Proposed Future Parking Areas Temporary Surface Parking Lot Shared Parking Structure 9 Exhibit 3: Planned Neighborhood Midblock Street Connections ATTACHMENT B August 13, 1907 photograph of Salt Lake Mattress Company Building April 9, 2020 photograph of the building following the March 18, 2020 earthquake )8785(0$5.(767 )8 7 8 5 ( : 2 2 ' % , 1 ( & 2 8 5 7 6287+)8785()(67,9$/675((7 : ( 6 7 7<3 =21,1*$1$/<6,6 3$5&(/=21( *08 *$7(:$<0,;('86( 0,1,0800$;,080/276,=(',0(16,2161267$1'$5'67,38/$7('%<=21( 63(&,),&5(48,5(0(176 $&78$//276,=($&5(664)7352326('&2162/,'$7('3$5&(/ %8,/',1*/27&29(5$*(1267$1'$5'67,38/$7('%<=21(63(&,),& 5(48,5(0(176 $&78$/%8,/',1*&29(5$*(&29(5$*(64)764)7 %8,/',1*+(,*+75(48,5(0(176 0,1,080+(,*+7 0$;,080+(,*+7 6(7%$&.5(48,5(0(176 0,1,080121( 0$;,080 )2583722))$&$'( 6$/7/$.(&,7< +4 6287+($67 6$/7/$.(&,7<87 ( ( & $ % '' & % $ 5(9 '$7('(6&5,37,21 67*(25*( 10$,167 67*(25*(87 9&%2&20 3036 29(5$//6,7(3/$1 86 $ & / , 0 % , 1 * 1 $ 7 , 2 1 $ / 7 5 $ , 1 , 1 * &( 1 7 ( 5 '( 6 , * 1 5 ( 9 , ( : : 6 6 $ / 7 / $ . 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( & , 7 < 8 7 9&%2180%(5 '$7(129(0%(5 6&$/( & (;7(5,25(1/$5*5'(/(9$7,21 0$775(66 %8,/',1*($67 .(<('127(6 6&+('8/(':$//%$6(),1,6+6((:$//7<3( 6&$/( $ (;7(5,25(1/$5*('(/(9$7,21 0$775(66 %8,/',1* 6287+ 6&$/( $ (;7(5,25(1/$5*('(/(9$7,21 0$775(66 %8,/',1* :(67 6&$/( & (;7(5,25(1/$5*('(/(9$7,21 0$775(66 %8,/',1* 1257+ /(9(/ /(9(/ $%'&&& $' /(9(/ /(9(/ /(9(/ /(9(/ $%'&&&$' /(9(/ /(9(/ 6$/7/$.(&,7< +4 6287+($67 6$/7/$.(&,7<87 ( ( & $ % '' & % $ 5(9 '$7( '(6&5,37,21 67*(25*( 10$,167 67*(25*(87 9&%2&20 30 $ (;7(5,25(/(9$7,216 86 $ & / , 0 % , 1 * 1 $ 7 , 2 1 $ / 7 5 $ , 1 , 1 * &( 1 7 ( 5 & 2 1 6 7 5 8 & 7 , 2 1 ' 2 & 8 0 ( 1 7 6 : 6 6 $ / 7 / $ . ( & , 7 < 8 7 9&%2180%(5 '$7(129(0%(5 6&$/( & (;7(5,25(1/$5*5'(/(9$7,21 0$775(66 %8,/',1*($67 .(<('127(6 6&+('8/(':$//%$6(),1,6+6((:$//7<3( 6&$/( $ (;7(5,25(1/$5*('(/(9$7,21 0$775(66 %8,/',1* 6287+ 6&$/( $ (;7(5,25(1/$5*('(/(9$7,21 0$775(66 %8,/',1* :(67 6&$/( & (;7(5,25(1/$5*('(/(9$7,21 0$775(66 %8,/',1* 1257+ 1 OVERLAID EXHIBIT OF SL MATTRESS BUILDING EXTERIOR ELEVATIONS OVERLAID STUDY OF EXISTING AND NEW SL MATTRESS BUILDING - NORTH ELEVATION OVERLAID STUDY OF EXISTING AND NEW SL MATTRESS BUILDING - EAST ELEVATION OVERLAID STUDY OF EXISTING AND NEW SL MATTRESS BUILDING - SOUTH ELEVATION OVERLAID STUDY OF EXISTING AND NEW SL MATTRESS BUILDING - WEST ELEVATION /(9(/ /(9(/ (/(9 72(;,67,1*)/225 $' $ $' $ 5(029($//(;,67,1*%5$&,1*$7 (17,5(%8,/',1* (;,67,1*%8,/',1*5(029(,1 ,76(17,5(7< 5(029($//(;,67,1*%5$&,1*$7 (17,5(%8,/',1* &/($1$//67$,16$1'5(029( 0257$5)5206$/9$*('(;,67,1* %5,&.,1*22'&21',7,21$1' 35(3$5()25)8785(86('$7 (17,5('(02%8,/',1* 6$/7/$.(&,7< +4 6287+($67 6$/7/$.(&,7<87 ( ( & $ % '' & % $ 5(9 '$7('(6&5,37,21 67*(25*( 10$,167 67*(25*(87 9&%2&20 30 $' '(02(;7(5,25 (/(9$7,216 86 $ & / , 0 % , 1 * 1 $ 7 , 2 1 $ / 7 5 $ , 1 , 1 * &( 1 7 ( 5 & 2 1 6 7 5 8 & 7 , 2 1 ' 2 & 8 0 ( 1 7 6 : 6 6 $ / 7 / $ . 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( & , 7 < 8 7 9&%2180%(5 '$7(129(0%(5 6&$/( & 1257+:(67&251(53$5$3(7:$// 35(6(59$7,21352-(&7,0$*( .(<('127(6 (;,67,1*%8,/',1*5(029(,1,76(17,5(7< &/($1$//67$,16$1'5(029(0257$5)5206$/9$*('(;,67,1*%5,&.,1*22' &21',7,21$1'35(3$5()25)8785(86('$7(17,5('(02%8,/',1* 6&$/( $ (;,67,1*6287+:(67&251(5(/(9$7,219,(: ,0$*( This page has intentionally been left blank SALT LAKE CITY TRANSMITTAL To: Community Reinvestment Agency Chair Salt Lake City Council Chair Submission Date: 12/26/2025 Date Sent to Council: 12/29/2025 From: Department * Community Reinvestment Agency Employee Name: Stine, Robyn E-mail robyn.stine@slc.gov Community Reinvestment Agency Director Signature Mayor's Office Chief of Staff Signature Community Reinvestment Agency Director Signed Date 12/26/2025 Chief of Staff's Signed Date 12/28/2025 Subject: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building Additional Staff Contact: Ashley Odgen, ashley.ogden@slc.gov Presenters/Staff Table Ashley Odgen, ashley.ogden@slc.gov Document Type Information Item Budget Impact? Yes No Recommendation: Consider proposed options for incorporation of the Salt Lake Mattress Company building into the USA Climbing project and provide direction on how to proceed. Background/Discussion On July 9, 2024, the Community Reinvestment Agency Board of Directors (“CRA Board”) approved Resolution No. 13 of 2024 authorizing terms associated with the disposition of CRA-owned property for the development of USA Climbing’s (“USAC”) headquarters and national training center. Per the approved term sheet, the project is to include a) the new construction of the primary climbing training facility, b) the rehabilitation and activation of the historic Salt Lake Mattress Company building (“Mattress Building”), and c) the new construction of an outdoor plaza. The CRA committed to reimbursing USAC up to $6 million for design and construction costs associated with rehabilitation of the Mattress Building. USAC committed to activating the Mattress Building with publicly accessible food, beverage, and retail uses. After bringing a contractor on board and further evaluating what it will take to rehabilitate the Mattress Building, it was determined that additional structural reinforcement would be necessary to maintain a safe work environment during construction. In addition, swaths of the historic brick are unstable and would need to be removed and reappointed. This resulted in a higher-than-anticipated project cost of $7.3 million. USAC has indicated that the organization is unable to absorb any costs beyond the $6 million being provided by the CRA. As an alternative, USAC proposed to reconstruct the Mattress Building using concrete masonry block (CMU) that is clad with the historic brick. The building would be rebuilt to closely match historic conditions, including placement on site, dimensions, fenestration, and other unique features. Beneﬁts of this option include safer working conditions during construction (a key concern for all parties), a safe and eﬃcient building that meets modern seismic and energy building codes, and a lower project cost. Reconstruction of the Mattress Building would require an additional $250,000 (beyond the $6 million already allocated by the CRA). Staﬀ requests that the CRA Board consider both options and provide direction. Public Hearing Is there a City or State statutory requirement to hold a public hearing for this item?* Yes No The City Council reserves the option to hold and notice for a public hearing pursuant to their practices for public engagement. Does the City have a general practice to hold a public hearing for this item?* Yes No Public Process This page has intentionally been left blank SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 115 WWW.SLC.GOV · WWW.CRA.SLC.GOV P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR RIN ENDENHALL Executive Director DANNY ALZ Director STAFF MEMO DATE: December 26, 2025 PREPARED BY: Ashley Ogden, Senior Project Manager RE: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building REQUESTED ACTION: Consider proposed options for incorporation of the Salt Lake Mattress Company building into the USA Climbing project POLICY ITEM: Real Property Disposition, Budget BUDGET IMPACTS: Proposed allocation of $250,000 - $1.3 million in additional funds EXECUTIVE SUMMARY: On July 9, 2024, the Community Reinvestment Agency Board of Directors (“CRA Board”) approved Resolution No. 13 of 2024 (Attachment A) authorizing terms associated with the disposition of CRA- owned property for the development of USA Climbing’s (“USAC”) headquarters and national training center. Per the approved term sheet, the project is to include a) the new construction of the primary climbing training facility, b) the rehabilitation and activation of the historic Salt Lake Mattress Company building (“Mattress Building”), and c) the new construction of an outdoor plaza. The CRA committed to reimbursing USAC up to $6 million for design and construction costs associated with rehabilitation of the Mattress Building. USAC committed to activating the Mattress Building with publicly accessible food, beverage, and retail uses. After bringing a contractor on board and further evaluating what it will take to rehabilitate the Mattress Building, it was determined that additional structural reinforcement would be necessary to maintain a safe work environment during construction. In addition, swaths of the historic brick are unstable and would need to be removed and reappointed. This resulted in a higher-than-anticipated project cost of $7.3 million. USAC has indicated that the organization is unable to absorb any costs beyond the $6 million being provided by the CRA. As an alternative, USAC proposed to reconstruct the Mattress Building using concrete masonry block (CMU) that is clad with the historic brick. The building would be rebuilt to closely match historic conditions, including placement on site, dimensions, fenestration, and other unique features. Benefits of this option include safer working conditions during construction (a key concern for all parties), a safe and efficient building that meets modern seismic and energy building codes, and a lower project cost. Reconstruction of the Mattress Building would require an additional $250,000 (beyond the $6 million already allocated by the CRA). Staff requests that the CRA Board consider both options (described in more detail below) and provide direction on how to proceed. BACKGROUND: The CRA acquired the Mattress Building in 2002 with the intent to rehabilitate and incorporate it into the redevelopment strategy for the neighborhood. Its presence – as one of few remaining historic structures in the immediate area - highlights the history and character of the Salt Lake City Warehouse National Historic District. The Rio Grande District Vision & Implementation Plan (“District Plan”) underscores the importance of the Mattress Building and Macaroni Flats, another historic warehouse that was adaptively reused under a partnership between Artspace (current owner) and the CRA, by placing them at either end of a north-south running plaza located at the heart of the District. In the spring of 2023, the CRA was asked to explore opportunities to locate a new headquarters and national training facility for USAC on CRA-owned property. When USAC expressed interest in the development site located at 310 South 500 West, CRA staff encouraged the incorporation of the adjacent Mattress Building in the project. The initial term sheet, approved by the CRA Board on July 9, 2024, reflects the outcome of negotiations. The CRA committed to reimburse USAC up to $6 million for design and construction costs associated with rehabilitation of the Mattress Building. Maintaining some of the district’s historic warehouse character by activating the Mattress Building with publicly accessible food, beverage, and retail uses is considered a community benefit that will be provided by USAC. ANALYSIS: Since approval of the term sheet, USAC and their team have been designing the project and exploring ways to incorporate the Mattress Building. Early iterations maintained the historic structure and new construction as separate buildings connected via elevated walkway. To accommodate the climbing facility’s space needs, the two buildings were ultimately merged. The Mattress Building has a loading dock on the north side, which results in a first floor that is elevated above ground level. For floor levels to match across both historic and new buildings, the design shows the dock removed and ground floor of the Mattress Building lowered to sit at ground level. Despite making significant alterations to the interior of the building, the intent is to restore the three (3) visible exterior facades to match historic conditions. Please see Attachment C for the latest site plan, elevation drawings, and renderings. In recent months, USAC engaged their construction contractor to create a work plan and cost estimate for the Mattress Building. A structural engineer produced an opinion of the safety of the building and recommended the installation of additional structural reinforcement before beginning any work. A local masonry expert found that large swaths of the historic brick are currently unstable and will need to be removed and reinstated. Factors like these led to an estimated project cost of $7.3 million. USAC has indicated that they are unable to absorb any costs over the CRA-provided $6 million. To adaptively reuse the Mattress Building as described above, an additional $1.3 million is needed. An alternative option raised by the USAC team would be to reconstruct the Mattress Building using concrete masonry block (CMU) that is clad with the historic brick on the interior and exterior. The building’s placement, dimensions, fenestration patterns, etc. would match historic conditions as closely as possible, except for the aforementioned loading dock removal and adjustment of floor heights. The building would be deconstructed slowly, with the historic bricks removed one by one, cleaned of mortar and dirt, and stored on pallets until reappointed. Benefits of this option include safer working conditions during construction (a key concern for all parties), more safe and efficient building that meets modern seismic and energy building codes, and a lower project cost. To reconstruct the Mattress Building as described above, an additional $250,000 would be needed. Staff requests that the CRA Board consider the two (2) options outlined above and provide direction on how to proceed. NEXT STEPS: 1. If the preferred option is adaptive reuse of the Mattress Building: • Staff will explore potential funding sources to fill the $1.3 million gap, which may require future budget-related action by the CRA Board. 2. If the preferred option is reconstruction of the Mattress Building: • Adequate funding (up to $250,000) is already allocated to the Rio Grande District Property Disposition & Site Work Project. • The CRA Board may want to consider amending the term sheet to allow for the reconstruction of the Mattress Building. PREVIOUS BOARD ACTION: • On September 29, 2020, the CRA Board conducted a straw poll releasing $865,000 to stabilize the Mattress Building, which had sustained serious damage from the March 2020 earthquake. • On April 16, 2024, the CRA Board adopted a resolution approving FY2024 Budget Amendment #2, which allocated $8,100,000 to the Rio Grande District Property Disposition & Site Work Project. • On July 9, 2024, the CRA Board adopted a resolution authorizing the lease rate and terms for the USA Climbing headquarters and training facility at approximately 500 West 300 South. • On December 10, 2024, the CRA Board adopted a resolution endorsing the CRA’s utilization of the Rio Grande District Vision & Implementation Plan. ATTACHMENTS: A – Resolution No. 13 of 2024 Authorizing Lease Rate and Terms for USA Climbing Headquarters and Training Facility at Approximately 500 West 300 South B – Photos of Salt Lake Mattress Company Building C – Project Site Plan, Elevation Drawings, and Rendering Chair 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. 9 July Alejandro Puy 13 Alejandro Puy (Jul 27, 2024 15:41 GMT+2) ATTACHMENT A 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 Allison Parks (Jul 17, 2024 15:49 MDT) Jul 17, 2024 Jill o1 (Jul 29, 2024 09:5 MDT) Jill Love n in 4 Tris#(an (Jul 29, 2024 1:14 MDT) EXHIBIT A TERM SHEET 1 USA CLIMBING AT RIO GRANDE DISTRICT 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 Clim bing. 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 1 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. 2 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 3 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. 4 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 2. 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 3. 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. 5 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. RDA to review USA Climbing’s projected operating pro forma to ensure that future ground lease payments are supported and the Project will be maintained, during the term, consistent with the RDA Board-approved term sheet. 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. 6 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. 7 Exhibit 1: Lease Area 8 Exhibit 2: Proposed Future Parking Areas Temporary Surface Parking Lot Shared Parking Structure 9 Exhibit 3: Planned Neighborhood Midblock Street Connections ATTACHMENT B August 13, 1907 photograph of Salt Lake Mattress Company Building April 9, 2020 photograph of the building following the March 18, 2020 earthquake )8785(0$5.(767 )8 7 8 5 ( : 2 2 ' % , 1 ( & 2 8 5 7 6287+)8785()(67,9$/675((7 : ( 6 7 7<3 =21,1*$1$/<6,6 3$5&(/=21( *08 *$7(:$<0,;('86( 0,1,0800$;,080/276,=(',0(16,2161267$1'$5'67,38/$7('%<=21( 63(&,),&5(48,5(0(176 $&78$//276,=($&5(664)7352326('&2162/,'$7('3$5&(/ %8,/',1*/27&29(5$*(1267$1'$5'67,38/$7('%<=21(63(&,),& 5(48,5(0(176 $&78$/%8,/',1*&29(5$*(&29(5$*(64)764)7 %8,/',1*+(,*+75(48,5(0(176 0,1,080+(,*+7 0$;,080+(,*+7 6(7%$&.5(48,5(0(176 0,1,080121( 0$;,080 )2583722))$&$'( 6$/7/$.(&,7< +4 6287+($67 6$/7/$.(&,7<87 ( ( & $ % '' & % $ 5(9 '$7('(6&5,37,21 67*(25*( 10$,167 67*(25*(87 9&%2&20 3036 29(5$//6,7(3/$1 86 $ & / , 0 % , 1 * 1 $ 7 , 2 1 $ / 7 5 $ , 1 , 1 * &( 1 7 ( 5 '( 6 , * 1 5 ( 9 , ( : : 6 6 $ / 7 / $ . 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( & , 7 < 8 7 9&%2180%(5 '$7(129(0%(5 .(<('127(6 (;,67,1*0$6215<:$//725(0$,15()(5726758&785$/'5$:,1*67235(3$5( )255(48,5('6758&785$/6+25,1* &86720&$67,13/$&(&21&5(7((;7(5,25(/(0(17 .$55,(53$1(/6<67(0,168/$7('025,1256,0,/$50(7$/3$1(/),1,6+ 6725()52176<67(0 &857$,1:$//6<67(0 7$//*/$=(':,1'6&5((16<67(0%$6,62)'(6,*1&5/&,(/23267:,1'6&5((1 6<67(0 6&$/( &(;7(5,25(/(9$7,21 ($67'(6,*15(9,(: 6&$/( $(;7(5,25(/(9$7,21 1257+'(6,*15(9,(: (;7(5,25),1,6+6&+('8/( (;,67,1*&21',7,216 (;,67,1*&21&5(7(5(029(3$,175(3$,5$61(&(66$5< (;,67,1*0$6215<%5,&.5(029(3$,175(3$,55(32,17$6 1(&(66$5< (;326('&21&5(7( (;326('&21&5(7( 3529,'($5&+,7(&785$/*5$'(),1,6+ 35(&$67&21&5(7(3$1(/6<67(0 5(,1)25&('&21&5(7(3$1(/6<67(06$1':,&+(':,7+ 5,*,',168/$7,21 5()(5723$1(/(/(9$7,216$1':$// 7<3(6 0(7$/3$1(/ ,168/$7('0(7$/3$1(/6<67(0:,7+0(7$/3$1(/ 5$,16&5((1352),/(3$,17('&2/257%' ,168/$7('0(7$/3$1(/6<67(0:,7+0(7$/3$1(/ 5$,16&5((1352),/(3$,17('&2/257%' 3(5)25$7('0(7$/3$1(/6&5((1:$//352),/(3$,17(' &2/257%' :,1'2:7<3(6 6((6+((7$ (& 3 07 07 (;& (;% 07 /(9(/ /(9(/ /(9(/ 522)/(9(/ 0707 0707 0707 07 07 07 07 (& (& 723$5$3(7 07 7<3 7(1$17 (175$1&( 0$,1%8,/',1* (175$1&( 07 /(9(/ /(9(/ /(9(/ $(,. 522)/(9(/ %*'+)&&&- 07 07 070707 0707 0707 07 07 (&(& '85$%/(0$7(5,$/6 */$66/(*(1' $5($2)'85$%/(0$7(5,$/621*5281'/(9(/ 2)($&+(/(9$7,21 127($//0$7(5,$/6&21&5(7(0(7$/ 3$1(/5(6725('0$6215<$1':22' &/,0%,1*:$//60((77+(5(48,5(0(1762) 25',1$1&(623(5&(17$*(2)'85$%/( 0$7(5,$/6,6 *5281'/(9(/*/$=('$5($65()(572 7$%/(%(/2:)25$5($$1'3(5&(17$*(6 21($&+(/(9$7,21 $5($2)'85$%/(0$7(5,$/621833(5/(9(/6 2)($&+(/(9$7,21 127($//0$7(5,$/6&21&5(7(0(7$/ 3$1(/5(6725('0$6215<$1':22' &/,0%,1*:$//60((77+(5(48,5(0(1762) 25',1$1&(623(5&(17$*(2)'85$%/( 0$7(5,$/6,6 833(5/(9(/*/$=('$5($65()(572 7$%/(%(/2:)25$5($$1'3(5&(17$*(6 21($&+(/(9$7,21 *5281'/(9(/*/$663(5&(17$*($1$/<6,6 *08'(6,*167$1'$5'5(48,5(0(17 1257+(/(9$7,2164)72)*/$=,1*64)72):$//$5($ ($67(/(9$7,2164)72)*/$=,1*64)72):$//$5($ 6287+(/(9$7,2164)72)*/$=,1*64)72):$//$5($ :(67(/(9$7,2164)72)*/$=,1*64)72):$//$5($ 833(5/(9(/*/$663(5&(17$*($1$/<6,6 *08'(6,*167$1'$5'5(48,5(0(17 1257+(/(9$7,2164)72)*/$=,1*64)72):$//$5($ ($67(/(9$7,2164)72)*/$=,1*64)72):$//$5($ 6287+(/(9$7,2164)72)*/$=,1*64)72):$//$5($ :(67(/(9$7,2164)72)*/$=,1*64)72):$//$5($ 6&$/( $(;7(5,25(/(9$7,21 6287+ '(6,*15(9,(: 6&$/( &(;7(5,25(/(9$7,21 :(67 '(6,*15(9,(: 6$/7/$.(&,7< +4 6287+($67 6$/7/$.(&,7<87 ( ( & $ % '' & % $ 5(9 '$7( '(6&5,37,21 67*(25*( 10$,167 67*(25*(87 9&%2&20 303 (;7(5,25(/(9$7,21 86 $ & / , 0 % , 1 * 1 $ 7 , 2 1 $ / 7 5 $ , 1 , 1 * &( 1 7 ( 5 '( 6 , * 1 5 ( 9 , ( : : 6 6 $ / 7 / $ . ( & , 7 < 8 7 9&%2180%(5 '$7(129(0%(5 .(<('127(6 (;,67,1*0$6215<:$//725(0$,15()(5726758&785$/'5$:,1*67235(3$5( )255(48,5('6(,60,&6+25,1* &86720&$67,13/$&(&21&5(7((;7(5,25(/(0(17 &86720&$67,13/$&(&21&5(7((;7(5,25(/(0(17:,7+0(7$/75,0(/(0(17723 &257(167((/$63/$&(+2/'(5 &86720&$67,13/$&(&21&5(7((;7(5,25(/(0(17:,7+&$59('2873,(&(6 6/23('72'5$,1:$7(5 %,&<&/(5$&.6 32:(55(&(37$&/( (;7(5,25),1,6+6&+('8/( (;,67,1*&21',7,216 (;,67,1*&21&5(7(5(029(3$,175(3$,5$61(&(66$5< (;,67,1*0$6215<%5,&.5(029(3$,175(3$,55(32,17$6 1(&(66$5< (;326('&21&5(7( (;326('&21&5(7( 3529,'($5&+,7(&785$/*5$'(),1,6+ 35(&$67&21&5(7(3$1(/6<67(0 5(,1)25&('&21&5(7(3$1(/6<67(06$1':,&+(':,7+ 5,*,',168/$7,21 5()(5723$1(/(/(9$7,216$1':$// 7<3(6 0(7$/3$1(/ ,168/$7('0(7$/3$1(/6<67(0:,7+0(7$/3$1(/ 5$,16&5((1352),/(3$,17('&2/257%' ,168/$7('0(7$/3$1(/6<67(0:,7+0(7$/3$1(/ 5$,16&5((1352),/(3$,17('&2/257%' 3(5)25$7('0(7$/3$1(/6&5((1:$//352),/(3$,17(' &2/257%' :,1'2:7<3(6 6((6+((7$ (& 3 07 07 (;& (;% 07 This page has intentionally been left blank City Creek Daylighting Design Concept Th e P l a z a Th e N a t u r a l Th e A c t i v e Budget Request FUNDING SOURCE FUNDING AMOUNT Utah Outdoor Recreation Grant $600,000 CRA Existing Funding Allocation $185,195 Budget Request $216,000 TOTAL $1,001,195 SALT LAKE CITY TRANSMITTAL To: Community Reinvestment Agency Chair Salt Lake City Council Chair Submission Date: 12/26/2025 Date Sent to Council: 12/29/2025 From: Department * Community Reinvestment Agency Employee Name: Stine, Robyn E-mail robyn.stine@slc.gov Community Reinvestment Agency Director Signature Mayor's Office Chief of Staff Signature Community Reinvestment Agency Director Signed Date 12/26/2025 Chief of Staff's Signed Date 12/28/2025 Subject: Straw Poll for City Creek Daylighting Design Plans Additional Staff Contact: Lauren Parisi; lauren.parisi@slc.gov Presenters/Staff Table Lauren Parisi; lauren.parisi@slc.gov Document Type Information Item Budget Impact? Yes No Budget Impact: 216,000 Recommendation: Approve the straw poll for $216,000 to go to City Creek Daylighting construction drawings. Background/Discussion Board reviewed design plan in 2023. Public Hearing Is there a City or State statutory requirement to hold a public hearing for this item?* Yes No The City Council reserves the option to hold and notice for a public hearing pursuant to their practices for public engagement. Does the City have a general practice to hold a public hearing for this item?* Yes No Public Process This page has intentionally been left blank SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 115 WWW.SLC.GOV · WWW.CRA.SLC.GOV P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR RIN ENDENHALL Executive Director DANNY ALZ Director SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY STAFF MEMO DATE: December 23, 2025 PREPARED BY: Lauren Parisi, CRA Senior Project Manager RE: City Creek Daylighting REQUESTED ACTION: Straw Poll for City Creek Daylighting Design Plans POLICY ITEM: North Temple Project Area BUDGET IMPACTS: $216,000 from the North Temple Fund-Strategic Intervention Program EXECUTIVE SUMMARY: The Salt Lake City Community Reinvestment Agency (CRA) requests a straw poll to approve the use of $216,000 from the North Temple Fund-Infrastructure Improvements Program to complete the construction drawings for the City Creek Daylighting Project in the North Temple Project Area. In November 2025, the Utah Division of Outdoor Recreation awarded Salt Lake City $600,000 to complete these plans as a part of their FY2026 Outdoor Recreation Initiative (ORI). It is estimated that the plans will cost approximately $1 million to complete, which leaves a $400,000 gap in project funding after the ORI grant is accounted for. The CRA currently has approximately $185,195 appropriated to the City Creek Daylighting project and is now requesting an additional $216,000 to fill the funding gap and keep this project moving forward. Originally recommended in Salt Lake City’s 1992 Open Space Plan, the daylighting of City Creek along Folsom Trail is envisioned to revitalize the former rail corridor into a thriving ecosystem and active community connection. BACKGROUND INFORMATION: In Q4 of 2023, the CRA, Public Lands and Public Utilities completed the Design Plan for the daylighting of City Creek along the Folsom Trail Corridor between 700 West and 1000 West. Daylighting refers to bringing City Creek, which is currently in an underground culvert, back to the surface to represent a more natural condition. The Design Plan builds off an initial Feasibility Study, completed in 2020, that recommended bringing a portion of the creek’s flow to the surface and maintaining the remainder of the flow in the culvert. This is referred to as a “partial-flow stream channel.” Construction plans were started in conjunction with the Design Plan effort; however, they have yet to be finalized. It’s estimated to cost approximately $1 million to complete the construction plans, and the city has secured $600,000 from the State’s Outdoor Recreation Initiative. 2 If approved by the CRA Board of Directors (Board) via a straw poll, CRA staff will work to finalize the design plans in collaboration with a consultant, Public Lands, Public Utilities, and local nonprofit Seven Canyons Trust. ANALYSIS & ISSUES: To date, approximately $185,194.99 has been allocated for City Creek Daylighting design plans. This amount was pledged as a local match for the grant request to the State, of which the CRA was awarded $600,000. This brings the total amount of funding secured to $785,194.99. Therefore, this straw poll requests an additional $216,000 from North Temple Infrastructure Improvements appropriations to fill the funding gap. The current, unbudgeted North Temple Infrastructure Improvements appropriations total $488,676.50. If the Board approves a $216,000 allocation for the City Creek Daylighting design plans, the remaining balance would be $274,676.50. FUNDING HISTORY FOR CITY CREEK DAYLIGHTING Unbudgeted Appropriations Budget Total Project Budget $488,676.50 Existing Project Budget Appropriations Budget Total Project Budget $185,194.99 STRAW POLL REQUEST Proposed Changes to Unbudgeted Appropriations Budget Straw Poll Request Amount Remaining Total $488,676.50 $216,000.00 $272,676.50 Revised Project Budget Appropriations Existing Proposed Total Revised Project Budget 401,194.99 3 PREVIOUS BOARD ACTION: The cost of the Design Plan completed in 2023 was $200,000, of which the CRA contributed approximately $105,000. Seven Canyons Trust donated $95,000, which included a cash contribution toward the design consultant’s fee and an in-kind donation of their staff time. The plan was presented to the CRA Board in December of 2023 where Board members expressed their general support. This page has intentionally been left blank SALT LAKE CITY BOARD MEMBER TRANSMITTAL To: Salt Lake City Council Chair Submission Date: 12/03/2025 Date Sent To Council: 12/17/2025 From: Otto, Rachel Subject: Board appointment Recommendation: Reinvestment Advisory Committee Recommendation: The Administration recommends the Council approve the appointment of Adrienne Bell to the Reinvestment Advisory Committee for a 4 year term starting on the date of City Council advice and consent and ending on the third Monday in January. Adrienne Bell currently lives in District 4. Approved:* Otto, Rachel UPDATES TO THE BOARD OF DirEctors JANUARY 2026 GALLIVAN CENTER UPDATES Winter Activation: Gallivan Center continues to be a premier winter destination, activating downtown through high-volume skating, new instructional programming, and Olympic- and hockey-inspired experiences aligned with future citywide initiatives. Community Programming: Expanded year-round programs are driving strong participation while supporting inclusive access, local artists, small businesses, and downtown vitality. Economic Impact: The bi-weekly food truck rally reinforces Gallivan Center’s role as a downtown economic engine, generating significant vendor participation and meal service. UP D A T E S SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY Victory Heights Ribbon Cutting Victory Heights converts a former medical office building into 88 affordable residential units, including studios and three- and four-bedroom homes. The development serves households earning approximately 25–50 percent of the Area Median Income, helping expand access to affordable housing in a high-opportunity area. In 2023, the Redevelopment Agency Board approved $1.865 million and $280,000 in CRA loans to support two phases of the project. This investment helped make the redevelopment financially viable and advanced the City’s affordable housing goals. The ribbon-cutting ceremony will take place on February 10 at 11:00 a.m.th Salt Lake City Community Reinvestment Agency Ballpark Activation Funding Availability The CRA is proposing a solicitation to support community organizations interested in hosting events at the Ballpark. The intent of the CRA funds is to supplement the overall cost of events, providing coordinated access to the venue. CRA staff recommends a total program budget of $90,000 from the Ballpark Management and Activation program. The funding anticipates that six awardees will receive a complimentary Ballpark rental (valued at $5,760) and up to $10,000 for their event, covering up to 75% of eligible event costs. Proposing to open the call for event applications soon in order to allow community groups and Cornerstone ample time to prepare for the events with a clear understanding of the available resources. Salt Lake City Community Reinvestment Agency UP D A T E S SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY CRA Staff Updates On January 5, 2026, Hayden Callaway joined the CRA as a Project Coordinator. Hayden is currently pursuing dual master’s degrees in City & Metropolitan Planning and Public Policy at the University of Utah. His graduate work includes community planning, land use and zoning analysis, housing policy, program evaluation, and public finance. Hayden previously worked as a Planning Apprentice and Housing Policy Intern with CAN Administration, contributing to community plans, zoning history analysis, housing and displacement policy frameworks, and citywide community engagement initiatives. THANK YOU SALT LAKE CITY BOARD MEMBER TRANSMITTAL To: Salt Lake City Council Chair Submission Date: 12/03/2025 Date Sent To Council: 12/17/2025 From: Otto, Rachel Subject: Board appointment Recommendation: Reinvestment Advisory Committee Recommendation: The Administration recommends the Council approve the appointment of Adrienne Bell to the Reinvestment Advisory Committee for a 4 year term starting on the date of City Council advice and consent and ending on the third Monday in January. Adrienne Bell currently lives in District 4. Approved:* Otto, Rachel SALT LAKE CITY BOARD MEMBER TRANSMITTAL To: Salt Lake City Council Chair Submission Date: 12/09/2025 Date Sent To Council: 12/17/2025 From: Otto, Rachel Subject: Board appointment Recommendation: Reinvestment Advisory Committee Recommendation: The Administration recommends the Council approve the appointment of Ian Joyce to the Reinvestment Advisory Committee for a 4 year term starting on the date of City Council advice and consent and ending on the third Monday in January. Ian Joyce currently lives in District 7. Approved:* Otto, Rachel SALT LAKE CITY BOARD MEMBER TRANSMITTAL To: Salt Lake City Council Chair Submission Date: 12/03/2025 Date Sent To Council: 12/17/2025 From: Otto, Rachel Subject: Board reappointment Recommendation: Reinvestment Advisory Committee Recommendation: The Administration recommends the Council approve the reappointment of Baxter Reecer to the Reinvestment Advisory Committee for a 4 year term starting on the date of City Council advice and consent and ending on the third Monday in January. Baxter Reecer currently lives in District 5. Approved:* Otto, Rachel SALT LAKE CITY BOARD MEMBER TRANSMITTAL To: Salt Lake City Council Chair Submission Date: 12/09/2025 Date Sent To Council: 12/17/2025 From: Otto, Rachel Subject: Board reappointment Recommendation: Reinvestment Advisory Committee Recommendation: The Administration recommends the Council approve the reappointment of Amy Rowland to the Reinvestment Advisory Committee for a 4 year term starting on the date of City Council advice and consent and ending on the third Monday in January. Amy Rowland currently lives in District 3. Approved:* Otto, Rachel