04/10/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, APRIL 10 , 2018
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, April 10, 2018 in Room 326, Committee Room,
City County Building, 451 South State .
In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall,
Chris Wharton, Amy Fowler, Charlie Luke, and Andrew Johnston.
Staff in Attendance: Jennifer Bruno, Council Executive Deputy Director;
Patrick Leary, Mayor' s Chief of Staff; David Litvack, Mayor' s Deputy
Chief of Staff; Danny Walz, RDA Chief Operating Officer; Tammy Hunsaker,
RDA Project Manager; Susan Lundmark, RDA Project Manager; Jill Wilkerson-
Smith, RDA Project Manager; Cara Lindsley, RDA Project Manager; Allison
Rowland, Council Public Policy Analyst; Katherine Lewis, Senior City
Attorney; DeeDee Robinson, Deputy City Recorder; and Cindi Mansell, City
Recorder.
Also Present: Susan Becker, Zion' s Public Finance, Inc. ; Jacob Splan,
Stadler Rail Construction Manager; and Fabio Muller, Stadler Rail
Director of Procurement and Logistics .
Director Kitchen presided at and conducted the meeting.
The meeting was called to order at 2 : 05 p.m.
A. 2:05:19 PM GENERAL COMMENTS TO THE BOARD
Terry Marasco spoke representing the west side communities and said
they were the neediest part of Salt Lake. He referenced the Public Market
Study and recent Inland Port, and said the most vocal support for the
City in that regard was also the west side . He said they deserved
attention and the Public Market at Fair Park would help greatly.
B. PUBLIC HEARINGS
#1 . 2:08:12 PM Stadler Rail Single-Property Community Reinvestment
Area Plan. The Board will accept public comment about the creation of a
single-property Community Reinvestment Area (CRA) to facilitate the
development of Stadler Rail . View Attachments
Director Mendenhall moved and Director Fowler seconded to close the
public hearing, which motion carried, all directors voted aye .
C. 2:08:51 PM REDEVELOPMENT AGENCY BUSINESS (RDA)
#1 . Stadler Rail Single-Property Community Reinvestment Area Plan
& Interlocal Agreement. The Board will discuss and consider approval of
a resolution authorizing the adoption of a single-property Community
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Reinvestment Area (CRA) to facilitate the development of Stadler Rail
and a resolution approving the Interlocal Agreement authorizing use of
a portion of Tax Increment to support the implementation of the Stadler
Rail Community Reinvestment Area Plan. View Attachments
Danny Walz, Jill Wilkerson-Smith, Allison Rowland, and Susan Becker
briefed the Council with attachments and a Power Point presentation . Ms .
Wilkerson-Smith provided background on the RDA Tax Increment
Reimbursement Policy, project information, Stadler 90o participation
request from Salt Lake City (SLC) , CRA Plan and Budget components . She
said Stadler had made rail cars for the past 75 years . She said the
company was based in Switzerland and currently had 20 locations with
7, 000 employees . She said the only Stadler location in the United States
was located in SLC at 500 West 900 North. She said this facility employed
150 workers and the company planned to expand into a new facility located
at 5600 West and Interstate 80 (I-80) in the Northwest Quadrant (NWQ) .
Ms . Becker reviewed the Financial Benefit Analysis, including
proposed development, 20-year property tax revenues at current
valuation, 20-year property tax revenues with proposed development, and
comparative development information. She reviewed 20-year revenues,
expense calculations, Municipal cost of services (average year) , job
creation, infrastructure and other benefits . She discussed 20-year tax
increment distribution, Stadler infrastructure improvements, relative
project gap (infrastructure costs) , and Finance Committee rankings at
the 70, 80, and 900 levels .
Ms . Becker referenced benefits of the proposed CRA and said the
Stadler development would provide a ratio of at least 3 : 1 revenues to
expenses for SLC' s General Fund; would provide significantly higher-
than-average property values; the industrial development that would take
place would include 976 jobs (150 of which were jobs retained from
current operations) with average wages above the area median wage; there
were significant infrastructure costs associated with the development at
the SLC site; and upfront costs opened additional acres for
development/accelerated development in the surrounding area.
Director Mendenhall discussed being accountable for tax dollars and
inquired if the third-party analysis took into consideration incentives
from any other taxing entity. Ms . Becker referenced comparative
development (taxable value per acre) and explained consideration was
given to all potential arenas and there was still a gap resulting from
extra-ordinary infrastructure costs . Ms . Wilkerson-Smith referenced
project costs and infrastructure gap. Mr. Walz discussed requirements
relative to ongoing monitoring and tax increment distribution and said
funding allowed for areas slightly outside project area boundaries .
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The Board expressed concern that participation by other taxing
entities was unknown. Mr. Walz said any participation knowledge would
not change the Staff recommendation because there would still be
remaining burden to Stadler. Discussion followed regarding taxing entity
participation not being taken into account by the Finance Committee and
the financial analysis still demonstrating a gap. Inquiry was raised
regarding typical process, with Mr. Walz stating typically it would
involve all participation within the analysis . He said Staff felt the
90o was still warranted even though that information was not originally
available .
Further discussion followed regarding the 90o participation amount.
Director Rogers referenced the map with the outlying CRA area (underneath
I-80) and inquired how that would work to ensure fluidity with the Inland
Port. Mr. Splan discussed the test track (allows freight line travel)
and the shared-use industry spur that connects to the shoreline and would
go through Stadler to serve all properties to the west to the Mountain
View Corridor. He said open access was included in the purchase agreement
for the NWQ and serving everything south of I-80 . He said to serve the
area north of I-80 would be a separate conversation.
Mr. Muller read a letter from Stadler Rail Chief Executive Officer
Martin Ritter (who could not be present) . Summary of the letter (not
provided) includes : this project was a tremendous opportunity for
Stadler, SLC, and the surrounding communities; encouraging support of a
privately-owned company; importance of presence in the NWQ; vision to
build state-of-the-art trains by transferring industry leading common
sense technology from Switzerland to Utah; development would create
skilled jobs, future hiring, infrastructure improvements, road
connections, utilities, and state-of-the-art transit solutions; training
and education programs in conjunction with local educational facilities
to facilitate a skilled workforce; Stadler being committed to the United
States market; referencing importance of timing; and encouraging
adoption of the CRA and Interlocal Agreement.
Director Fowler thanked the RDA and Stadler Staff for the
opportunity to meet, tour, and discuss questions . She said the concern
was not about the partnership, but the unknown ability to collect tax
increment. Mr. Walz said Stadler realized the risk involved.
Director Wharton said the Board had previously heard from other
businesses that wanted to be included in the area, but were told amending
the area could impact legislation. Mr. Walz said Staff heard that some
property owners to the south felt they were not included and/or offered
the same opportunity. He said Staff had done their best efforts to
convey commitment to create additional project areas south of I-80;
specifically, with regard to this single property CRA process . He said
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this process was available to any property owner in SLC and was created
for the purpose of encouraging business retention and job growth. He
said some areas were also within the Inland Port Authority jurisdiction
and subject to losing tax increment, but the program was also offered
citywide .
The Board discussed Senate Bill 234 and its effects . Mr. Walz
reviewed the tax increment, allocations, other taxing entities involved,
SLC municipal costs of services/average per year, and overall financial
benefit goal . He said the program was constructed to ensure not giving
away too much tax increment to a use that could create additional City
expenses . He discussed this particular project and said the revenue
potential was more than the undeveloped area property. Discussion
followed regarding the vocational training program (apprenticeship) with
the Applied Technology Center in conjunction with Salt Lake Community
College . Director Rogers suggested recruitment techniques be associated
or partnered with the West High School Science, Technology, Engineering
and Math (STEM) Program students . Further discussion followed regarding
the wage median comparison, with Ms . Becker stating she was surprised at
the consistent high salary range with a low end of $14 hourly.
Director Fowler moved and Director Mendenhall seconded to approve
Resolution R-12-2018 adopting the Stadler Rail Community Reinvestment
Area Plan and Resolution R-13-2018 authorizing the RDA Executive Director
to execute the Interlocal Agreement between Salt Lake City Corporation
and the Redevelopment Agency committing the City' s increment to the RDA
at a 90% participation rate, with the following additional language to
be added to the interlocal agreement: City and RDA acknowledge that the
City' s commitment of tax increment to RDA for the project area
development was subject to the Utah Inland Port Authority' s right to
take up to 100% of the tax increment generated within the project area
for the purposes set forth in Utah Code 11-58-602, enacted by the Utah
Legislature as SB234 in the 2018 Legislative session, which motion
carried, all directors voted aye . Director Luke was absent for the vote.
#2 . Report and Announcements from the Executive Director. Report
of the Executive Director, including a review information items,
announcements, and scheduling items. The Board of Directors may give
feedback or policy input.
Item not held.
#3. 2:58:28 PM Report and Announcements from RDA Staff. 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:
• Update on Request For Proposals
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• Scheduling items
Mr. Walz provided a quick update on properties, including the 255
South State Street property and the Overniter Motel . Inquiry was raised
as to whether Open Houses or tours were being held at these locations,
with Mr. Walz stating they could if questions were received and it was
warranted. Director Rogers said the market was flush with opportunities
and suggested that might be a good way to start marketing. Mr. Walz said
there were still tenants in the Overniter and Staff was engaged in
relocation efforts .
Mr. Walz provided a quick update on property disposition, including
Jefferson corner, 156 West 900 South, West Temple Gateway, and 208 West
900 South.
The Board requested study materials prior to their upcoming
Minneapolis Tour to review projects relative to SLC's State Street.
#4 . 3:05:26 PM Report of the Chair and Vice Chair. The Chair may
review the minutes of a previous Board meeting.
Director Kitchen discussed unintended consequences of SB234 and
drafting letter to the taxing entities and those with authority for
Inland Port Board Authority. He said draft copies would be distributed
and encouraged Board feedback. He encouraged budget feedback if the Board
had any thoughts, ideas, or special interests leading into the budget
cycle .
D. WRITTEN BRIEFINGS
None .
E. 3:0 6:43 PM CONSENT
Director Mendenhall moved and Director Luke seconded to approve the
Consent Agenda, which motion carried, all directors voted aye .
#1 . Set the date - RDA Budget Amendment No. 4 for Fiscal Year 2017-
18 . The Board will set the date of Tuesday, May 8, 2018 at 2: 00 p.m. to
accept public comment about a resolution amending the final budget of
the Redevelopment Agency for Fiscal Year 2017-18. View Attachments
F. TENTATIVE CLOSED SESSION. The Board will consider a motion to enter
into Closed Session, in keeping with Utah Code §52-4-205 for any allowed
purpose .
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Item not held.
The meeting adjourned at 3 : 06 p .m.
Redevelopment Agency Chair
Secretary
This document is not intended to serve as a full transcript as
additional discussion may have been held; please refer to the audio or
video for entire content pursuant to Utah Code §52-4-203 (2) (b) .
This document along with the digital recording constitute the
official minutes of the Salt Lake City Redevelopment Agency meeting held
April 10, 2018 .
clm
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