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04/12/2016 - Minutes MINUTES OF THE 768th MEETING OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday,April 12, 2016 451 South State Street, Room 326 Salt Lake City, Utah 1:00 p.m. 1. Roll Call. 1:07:10 PM The following members of the Board of Directors of the Redevelopment Agency of Salt Lake City were present: Lisa Adams, Chairperson Derek Kitchen, Vice-Chairperson Stan Penfold, Director Andrew Johnston, Director James Rogers, Director Erin Mendenhall, Director Absent: Charlie Luke, Director Also Present: Jackie Biskupski, Chief Administrative Officer Justin Belliveau, Interim Executive Director Others Attending: Ed Butterfield, Senior Project Manager Jill Wilkerson-Smith, Project Manager Kort Utley, Project Manager Ben Davis, Project Manager David Arteaga, Project Coordinator Cara Lindsley, Project Coordinator Tammy Hunsaker, Project Coordinator Amanda Holty, Marketing and Communications Coordinator Katie Lewis, Agency Legal Counsel Crayola Berger, Accountant II Jolynn Walz, Office Manager Kalli Ruiz, Office Facilitator Katherine Potter, Senior Advisor Cindy Gust-Jensen, Salt Lake City Council Office David Litvack, Salt Lake City Mayor's Office Chris Zraek, Form Development George Chapman, Salt Lake City Resident RDA Board Meeting Minutes Tuesday,April 12,2016 Page 2 2. Briefing by the Staff. 1:07:25 PM A. State St. Project Area Open House Ms. Lundmark stated that the Agency held its first open house for the proposed State Street Project Area on March 30, 2016. The event was well attended and staff received a lot of feedback not only at the meeting,but also through additional comments that have come in through emails and phone calls. Ms. Lundmark said that an additional open house for the State Street Project Area will be held May 3, 2016 at the Salt Lake County Complex from 5:00 p.m. —7:00 p.m. B. Design Competition Arctic Court Ms. Lundmark explained that a Jury Award Winner was entry#9 and a People's Choice Award Winner was entry#6. Ms. Lundmark provided a visual for each of the designs. Both winners were honored at the Utah Heritage Foundation's Annual Heritage Awards. Director Mendenhall asked if staff would please email Board members a copy of all of the entries that were submitted. C. Developer Forum The Agency is hosting another Developer Forum on April 27, 2016 at Red Iguana II. The focus of this forum will be on the North Temple Project Area, concerns and challenges for the area, and RDA and Economic Development programs available to encourage development. 3. 1:12:00 PM Approval of the Minutes from the Meeting held March 15, 2016. Director Rogers made a motion to approve the minutes from the meeting held March 15, 2016. Vice-Chairperson Kitchen seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. View Minutes 4. 1:12:21 PM Report of the Chief Administrative Officer. There was no report of the Chief Administrative Officer. 5. 1:12:56 PM Public Comments. Mr. George Chapman stated that he had some concerns with the Agency's implementation plans. He said he felt that the construction of parking structures conflicts with the goal of creating a walkable community. He stated that he disagrees with the proposal of relocating the Sugar House Fire Station and also feels that streetcar should not be a priority for the RDA. He said that neighborhood bus route expansion will be limited by the Streetcar. Mr. Chapman stated that any improvements going towards the 500 West Park Blocks might attract the homeless population more and suggested instead looking of using the funds to eliminate homelessness. He further added that he is opposed of the replacement of Single Room RDA Board Meeting Minutes Tuesday,April 12,2016 Page 3 Occupancy residence, due to concerns of crime. 6. Redevelopment Business Action Items. A. 1:15:42 PM Review of 2016/2017 Administrative Budget and Staffing Document The RDA Board will consider the proposed administrative budget and the staffing document to be included in the 2016-2017 Annual Implementation Budget. View Attachment Interim Executive Director Belliveau presented the 2016/2017 Administrative Budget and Staffing Document. (See the Budget and Staffing Document attached) He explained that the information has already been reviewed and recommended by the Redevelopment Advisory Committee (RAC) and by Mayor Biskupski. Director Penfold stated that although he is comfortable with the direction the budget is going he is not prepared to vote on it. He felt due to the Agency's funding restrictions and the uncertainty of the changes to the RDA that are being proposed by the Administration, it would be better to deter action until more information is available. Vice-Chairperson Kitchen, Director Johnston and Director Mendenhall agreed. Director Mendenhall added that she wondered if additional staffing and/or resources would be necessary to support the Board with the upcoming changes proposed by the CAO. Director Rogers said he would like a flow chart or staffing document that explains the proposed Economic Development Department and how the RDA and its staff would tie into it. Katie Lewis clarified that per State Code the title of"Chief Administrative Officer"would change to "Executive Director", and a new title would be selected for the person handling the day to day operations of the RDA. Cindy Gust-Jensen indicated that if the Board wanted more details on Agency's Budgets or wanted the Council Office to handle the RDA Board agendas and meetings additional staffing, time, and/or resources may be necessary within the Council Office. She said much of this could be added to the Council Office's current process with little effort, but there could be some matters that require more attention and staff time than is currently allocated for RDA work. Chief Administrative Office Biskupski added that within the new structure she does not foresee any additional staffing resources being needed or the creation of additional work. Director Mendenhall said she would like to see a more collaborative investigation between all the elected officials to explore options concerning the upcoming changes and how to proceed with the separation of powers. Interim Executive Director Belliveau added that discussions will continue concerning the separation of powers and he felt future Board agendas may help guide the Board in addressing policy matters that they would like to see moving forward. RDA Board Meeting Minutes Tuesday,April 12,2016 Page 4 Interim Executive Director Belliveau stated that he is also comfortable with the RDA staff and workload, and does not feel additional resources would be necessary to handle the Agency's workload. Chairperson Adams requested that Mayor Biskupski work with RDA staff to decide on the new title of the person who manages the RDA. Director Rogers enters the meeting. Board members did not provide a formal motion, but directed staff to present a budget placeholder based on the proposed Administrative Budget until additional information is presented on the overall organizational structure at the May meeting. B. 1:44:44 PM Regent Street Hotel Design New Concept Plan The Board will consider approval of a revised conceptual design for the Regent Street Hotel and modification of the terms of the Option to Purchase Agreement with Form Development for the RDA-owned Property Located at 167-169 South Regent Street. View Attachment Ms. Lindsley explained that staff is returning to the Board for approval of the updated conceptual design and revisions to the Schedule of Development for the Regent Street Hotel project. She introduced Chris Zarek from Form Development. Mr. Zarek provided a presentation on the revised conceptual design for the Regent Street Hotel, which incorporates the former Felt Electric Building in the footprint of the hotel. Vice-Chairperson Kitchen said he has been contacted by local Chinese organizations, who are interested doing a public art installation along Plum Alley. He asked if he could put them in contact with the developer. Mr. Zarek said yes. Ms. Lindsley explained that if the Board approves the conceptual plan, the timeline for development would change. Ms. Lindsley stated that the completion of design would change from June 30, 2016 to no later than August 15, 2017 and construction would begin no later than September 30, 2017. Director Mendenhall thanked staff for their foresight when acquiring this property and their efforts working with the developer. Chairperson Adams and Director Penfold agreed. 1:57:58 PM Director Penfold made a motion to approve the revised conceptual design for the Regent Street Hotel and modification of the terms of the Option to Purchase Agreement (Resolution R-12-2016). Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. C. Station Center 1. 1:58:13 PM Consideration and Approval to Amend the Station Center Design RDA Board Meeting Minutes Tuesday,April 12,2016 Page 5 Standards and Guidelines Staff will present a requested change to the Station Center Design Standards and Guidelines for the Board's consideration. View Attachment Ms. Wilkerson-Smith reminded the Board that staff presented a proposed change to the Station Center Design Guidelines in March. At that meeting, the Board requested staff return with amended language regarding the exterior treatment of parking structures in the overall development. She presented the amended change that further defines the requirement that exterior walls of all parking structures that are visible in the public realm be designed in an attractive manner and incorporate materials other than plain concrete. Ms. Wilkerson-Smith referred the Board to the specific amended language in their memo. 1:59:31 PM Director Penfold made a motion to accept the amended language to the Station Center Design Standards. Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. 2. 1:59:53 PM Consideration and Adoption of a Resolution of the Board of Directors of the Redevelopment Agency of Salt Lake City Approving the Basic Concept Drawings for the Development of Parcel 1 of the Station Center Project The RDA Board will consider adopting a resolution approving the basic concept drawings for Parcel 1 of the Station Center Project. View Attachment Ms. Wilkerson-Smith said that staff is asking the Board to consider adopting a resolution approving the Basic Concept Drawings for the development of Parcel 1 of the Station Center Project. She introduced Dan Lofgren from Cowboy Partners to present the Basic Concept Drawings to the Board. Mr. Lofgren provided an overview of the Parcel 1 design and asked the Board for input. Director Johnston expressed concern that each development has a parking component and asked if it would make more sense to build centralized parking instead. Director Penfold explained that in past Board discussions regarding parking for the project, the Board concluded it would be best to incorporate parking within each individual development. 2:12:53 PM Director Penfold made a motion adopting a resolution (Resolution R-13-2016) approving the Basic Concept Drawings for Parcel 1 of the Station Center Project. Vice- Chairperson Kitchen seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. 3. 2:13:36 PM Consideration and Adoption of a Resolution Approving the Terms for an Option to Purchase Agreement, Schedule of Development, and Other Agreements with Boyer Cowboy Station, LC for the Development of RDA Owned Property at 580 West 300 South The RDA Board will consider adopting a resolution approving the terms of an Option to RDA Board Meeting Minutes Tuesday,April 12,2016 Page 6 Purchase Agreement, Development Agreement, Schedule of Development, and other agreements, for the sale of Parcel 1 of the Station Center Project. View Attachment Ms. Wilkerson-Smith said staff has negotiated terms to enter into an Option to Purchase Agreement for the sale of Parcel 1 of the Station Center Project with Boyer Cowboy Station, LC and is seeking authorization to execute these agreements. During the first phase, the Developer will undertake schematic design and seek financial commitments through May 2017. If the Developer successfully achieves the first phase schedule of milestones, the RDA will enter into an amended Option to Purchase Agreement with them that outlines the remaining schedule of milestones to closing. 2:17:47 PM Director Rogers made a motion adopting a resolution (Resolution R-14-2016) approving the terms for an Option to Purchase Agreement, Schedule of Development, and Other Agreements with Boyer Cowboy Station, LC. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. D. 2:18:18 PM RDA Strategic Plans Staff will present the 2015-2018 strategic plans for the RDA's Central Business District, West Temple Gateway, and Granary District project areas and request that the Board consider a motion to approve them. View Attachment Mr. Utley presented the Strategic Plans for Central Business District, West Temple Gateway and Granary District and highlighting priority projects and any updates to these plans which the Board previously adopted to set policy for the RDA project areas for the period spanning 2015- 2019. Director Penfold expressed concern that funds should not be the sole source for infrastructure improvements and encouraged staff to look at other City resources to combine with any RDA funding. Vice-Chairperson Kitchen asked that the following items be added to the Granary District Strategic Plan Objectives: 1) that the Fleet Block is listed as a catalytic development; 2) that the RDA seeks to contribute to high quality and mixed-income housing stock; and 3) to encourage the development and growth of businesses, technology, light manufacturing, research, and neighborhood services. Director Johnston stated that although he agrees that the Fleet Block is a priority it should not be listed in the objectives section. Vice-Chairperson Kitchen suggested instead adding the following under"Priority Projects": "RDA Staff will work with the Administration to assist in the Development of the Fleet Block to leverage the Fleet Block to ensure both affordable in housing and business incubation. " Director Penfold said although he does not object to any of the suggestions, the Board cannot RDA Board Meeting Minutes Tuesday,April 12,2016 Page 7 dictate development if the Agency does not own the property. Director Rogers requested that the Administration provide an update to the RDA Board on the progress, goals, and vision for the Fleet Block. Director Penfold stated that he is interested in learning if the RDA could participate in a programming role once the Fleet Block is developed. Interim Executive Director Belliveau said there may be some legal limitations on the RDA's ability to fund programming if we do not own the underlying asset, which is owned by Salt Lake City Corporation and not the RDA. 2:41:27 PM Director Rogers made a motion to approve the Strategic Plans for the Central Business District and West Temple Gateway and to return with the Granary Strategic Plan for approval once additional concerns and comments have been evaluated. Director Penfold seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. E. 2:42:01 PM Review of Changes to Utah Code 17C and Proposed Resolutions to Proceed with Creation of Community Reinvestment Areas The Board will need to adopt new resolutions directing the RDA staff to create a project area plan for the two new Community Reinvestment Areas. View Attachment (State Street) View Attachment (9-Line) Ms. Lewis presented the changes to the Community Development and Renewal Agencies Act (Utah Code 17C) made during the 2016 legislative session. She explained that due to the legislative changes staff felt it necessary for the Board to adopt two new resolutions directing them to proceed with project area plans for the 9-Line and State Street as Community Reinvestment Areas, which are now the only eligible type of project area. 2:57:28 PM Director Mendenhall made a motion adopting a resolution to proceed with the creation of the 9-Line (Resolution R-15-2016) and State Street(Resolution R-16-2016) (CRAs). Director Penfold seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. Vice-Chairperson Kitchen was not present for the vote. 7. Redevelopment Business Updates. A. 2:58:04 PM Proposed Revisions to Redevelopment Agency Board of Directors' Bylaws Salt Lake City Attorney's Office will present proposed changes to the Agency's bylaws. View Attachment Ms. Lewis presented the proposed changes to the RDA bylaws. She explained that the three main categories being addressed are: (1) to overlap or conflict with State law; (2) identifying external- facing operations that could be regulated through resolution; and(3) separation of powers. (see attached proposed version of bylaws) RDA Board Meeting Minutes Tuesday,April 12,2016 Page 8 Ms. Lewis added that the RDA Board will need to decide what role the Redevelopment Advisory Committee (RAC) will play under the new format. Director Penfold suggested changing the title of the "Regular Meeting"to "Regular/Special Meetings". Ms. Lewis said that if Board members have any other suggestions to please let her know and to also start thinking about the next steps the role of the Board as the policy and legislative entity. Vice-Chairperson Kitchen stated that he, Chairperson Adams, and Mayor Biskupski helped in initiating these changes and thanked everyone who had been involved. He said that this is a big change to the RDA and a massive shift in power, but felt the changes are necessary to align things with State code and that it will be good for achieving the City's economic goals and growth. However, he is concerned about the four vacant Director positions within the City and the overall morale of City employees,particularly the morale of RDA staff. He said he felt staff members need to know what their role is as part of the new Economic Development Department, who they report to and how to operate on a day to day basis. He added that it is also important to get clarity on the overall leadership position for the RDA, currently served by the Interim Executive Director to lead the RDA. Vice-Chairperson Kitchen urged the City Administration to fill the Economic Development Director position quickly and to find someone who has expertise in real estate finance, experience in real estate development, and successful completion of massive Redevelopment Agency projects, such as the Eccles Theater. Ms. Lewis said that moving forward, discussions will take place with the RDA Chair and Vice- Chair concerning the agendas and what items should be listed and what items would instead be handled under the administrative function. Chairperson Adams requested that the following items be added to the May Board agenda for further discussion. • Agency's Bylaws • Land Disposition • Role of RAC and the RDA's Loan Committee B. 3:39:06 PM Budget Process - RDA Project Area Implementation Schedule RDA staff is presenting the Project Area Implementation Schedule for review as part of the 2016/2017 budget process to highlight all on-going projects managed or incentivized by the RDA. View Attachment RDA Board Meeting Minutes Tuesday,April 12,2016 Page 9 Mr. Butterfield and Mr. Utley presented the Project Area Implementation Schedule and highlighted all on-going projects managed or incentivized by the RDA and the future milestones for the 2016/2017 Budget year for each project area. Director Penfold asked staff for a breakdown of all funding sources for the Pioneer Park Project. Mr. Utley stated he would provide it at the May meeting. Director Penfold asked for an update on the art pieces that the RDA owns and the rotation schedule for them. Mr. Butterfield said staff would provide that information in a future weekly report. 8. 4:03:48 PM Redevelopment Business Written Briefings. Chairperson Adams requested that the Board look over the following written briefings and contact RDA staff if there are any questions. A. Redevelopment Agency Design Principles Staff is providing a written briefing on proposed RDA design principles that will be presented at the May Board meeting. View Attachment B. Eccles Theater Update Update on Eccles Theater concerning early ticket sales,project budget, and grand opening. View Attachment C. Update on Status of RDA Loan Funds In response to the request of the Board of Directors, RDA staff has prepared a written briefing summarizing the amount of loan funds currently available. " View Attachment 9. Consent. A. 4:04:13 PM Consideration and Adoption of a Resolution Approving an amendment to the Purchase and Sale Agreement with Benchmark Modern for its acquisition of the Jefferson Walkway properties in the West Temple Gateway Project Area. Benchmark Modern, the developer of the Jefferson Walkway project, has requested an amendment to the Purchase and Sale Agreement changing the delivery condition of the property, the timing of platting, and extending the outside closing date by 60-days. View Attachment Vice-Chairperson Kitchen made a motion approving the resolution (Resolution R-17-16) for the amendment to the Purchase and Sale Agreement with Benchmark Modern for its acquisition of the Jefferson Walkway properties. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. 10. 4:04:51 PM Closed Meeting. RDA Board Meeting Minutes Tuesday,April 12,2016 Page 10 A. Consider Adopting A Motion To Enter Into A Closed Meeting In Keeping With Utah Code To Discuss Pending Litigation and/or The Acquisition/Disposition Of Real Property and/or Attorney-Client Matters That Are Privileged Pursuant To Utah Code Ann. § 78b-1-137(2). Director Penfold made a motion to enter into a closed meeting to discuss matters of pending litigation and/or the acquisition/disposition of real property and/or attorney-client matters and that the Board meeting would stand adjourned at the conclusion of the closed meeting. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. The closed meeting of the Board of Directors of the Redevelopment Agency of Salt Lake City was held at the City and County Building, 451 South State Street, in Room 326 at 4:04 PM on Tuesday, April 12, 2016. The following members of the Board of Directors of the Redevelopment Agency of Salt Lake City were present: Lisa Adams, Chairperson; Derek Kitchen, Vice Chairperson; Stan Penfold, Director; Andrew Johnston, Director; James Rogers, Director. The following members of the staff of the Redevelopment Agency of Salt Lake City were present: Justin Belliveau, Interim Executive Director; Jolynn Walz, Office Manager; Kalli Ruiz, Office Facilitator, and Tammy Hunsaker, Project Manager. Others present: Margaret Plane, Legal Counsel; Katie Lewis, Legal Counsel; Cindy Gust-Jenson, City Council Office; Jennifer Bruno, City Council Office; David Litvack, Deputy Chief of Staff; Patrick Leary, Chief of Staff; and Jackie Biskupski, Chief Administrative Officer. The Board discussed the acquisition/disposition of real property and attorney client matters that are privileged pursuant to Utah Code. There being no further business, Chairperson Adams called for a motion to exit the closed meeting. Director Penfold made a motion to exit the closed meeting and Vice-Chairperson Kitchen seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved and the closed meeting. The meeting was adjourned at 4:25 PM. 9. Adjournment. There being no further business the meeting was adjourned. Lisa R. Adams, Chairperson