04/23/2019 - Minutes (7) MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, APRIL 23 , 2019
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, April 23, 2019 in Room 326, Committee Room,
City County Building, 451 South State .
In Attendance: Directors Erin Mendenhall, Amy Fowler, Charlie Luke, Chris
Wharton, Analia Valdemoros, and Andrew Johnston.
Absent: Director James Rogers
Staff in Attendance: Jennifer Bruno, Council Executive Deputy Director;
David Litvack, Mayor' s Deputy Chief of Staff; Danny Walz, RDA Chief
Operating Officer; Jill Wilkerson-Smith, RDA Deputy Chief Operating
Officer; Katherine Lewis, Senior City Attorney; Kort Utley, RDA Senior
Project Manager; Cara Lindsley, RDA Project Manager; Tammy Hunsaker, RDA
Project Manager; Corinne Piazza, RDA Project Coordinator; Susan
Lundmark, RDA Project Coordinator; Jonathan Goates, RDA Project Manager;
Jennifer McGrath, Deputy Community & Neighborhoods Development Director;
Tom Millar, Transportation Planner; Benjamin Luedtke, Council Public
Policy Analyst; Allison Rowland, Council Public Policy Analyst; and Cindi
Mansell, City Recorder.
Guests in Attendance: Athens Hotel Development Team: Mark Sanford,
Director of Development; Robert McIver, Chief Financial Officer; and
Scott Howell, Developer.
Director Fowler presided at and conducted the meeting.
The meeting was called to order at 2 : 07 p.m.
A. GENERAL COMMENTS TO THE BOARD
2:07:48 PM Kasandra VerBruggnen, Spy Hop Executive Director, said
they looked forward to seeing the 900 South Street Improvement Project
become a reality. She discussed being part of the Central 9th Community
Neighborhood Area and the desired amenities and improvements that would
attract more visitors . She encouraged the Board to approve the 900 South
Streetscape and undergrounding improvements .
B. PUBLIC HEARINGS
#1. 2:09:45 PM RDA Budget Amendment No. 4 for Fiscal Year 2018-19 .
The Board will accept public comment about a resolution amending the
final budget of the Redevelopment Agency of Salt Lake City for Fiscal
Year 2018-19. Budget amendments happen several times each year to reflect
adjustments in the Redevelopment Agency's budget, including proposed
project additions and modifications. The proposed amendment includes
funding for Station Center, streetscape improvements and power line
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TUESDAY, APRIL 23 , 2019
undergrounding on 900 South, a new housing notice of funding availability
(NOFA) round, and seed funding for the recently created 9-Line and State
Street projects areas, among other changes. View Attachments
Director Mendenhall moved and Director Johnston seconded to close
the public hearing and defer action to a future meeting, which motion
carried, all directors present voted aye .
C. REDEVELOPMENT AGENCY BUSINESS
#1 . 2:10:34 PM Approval of Minutes . Director Wharton moved and
Director Mendenhall seconded to approve the minutes of the RDA Board
meeting held Tuesday, March 26, 2019, which motion carried, all directors
present voted aye. View Minutes
(M 19-6)
#2 . 2:10:54 PM Central Ninth Streetscape Improvements and
Undergrounding Follow-up. The Board will receive a follow-up briefing
about street improvements and power line undergrounding in the Central
Ninth neighborhood as part of the West Temple Gateway project area . View
Attachments
Benjamin Luedtke, Danny Walz, Kort Utley, Tom Millar, and Jonathan
Goates briefed the Board with attachments .
Mr. Luedtke referenced previous discussion elements, including
discussion of consolidation of 10 projects across departments into one
large coordinated 900 South project. He said discussion also included a
working group to compile a City Policy for undergrounding power lines,
along with the possibility of salvaging traffic signals .
Mr. Luedtke referenced the chart update of 10 projects showing
existing funding, gaps, and current status . He said the plan entailed
hiring a consultant team to decrease Staff workload. He addressed the
various funding gaps and sources, and caveats on Public Utilities
projects in that some were listed as TBD (to-be-determined) because it
was too early in the design phase to have refined cost estimates (some
of these projects may need to be designed in a closely coordinated versus
designed effort) . He said additional utility costs would not be known
until further into construction. He reviewed the policy questions on
consolidation (periodic updates, potential funding sources to be used to
fill the funding gap, etc. )
Mr. Luedtke reviewed the alternative funding chart, and discussion
followed regarding including the $1 . 3 million requested in new funding
as part of Budget Amendment No. 4 (BAM 4) . Director Johnston expressed
concern relative to potential project cost increases . He said he was
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TUESDAY, APRIL 23 , 2019
supportive but was in favor of having that discussion and making a
specific plan. Discussion followed regarding allocation of $1 . 3 million
and maintenance coming in substantially higher. Director Johnson
expressed concern they would be stuck with that allocation and then have
to figure out funding for the remainder. The Board discussed that while
they supported the consolidated plan idea, there were
items/projects/systems that were not necessarily part of what the RDA
was doing. Although the Board wanted the project to move forward, they
did not want to make commitment for a certain project and then have to
back fund additional maintenance or other expenses with General Fund
monies .
Mr. Walz said there appeared to be a mix up of projects the Board
and Council would have . He said as far as approving BAM 4 and the $1 . 3
million, that had already been budgeted/was being held, and was already
subject to the approval with the caveat of contingencies to add and Staff
would have to return with that amount in order to release funds . He said
costs included consolidation, information for future, and maintenance,
and the Board would be authorizing Staff to proceed and carry forward
with the design. He said it was important to set aside funds so that
Staff knew the Board recognized the need to move forward and they had
authority to begin compiling design information. The Board expressed
concern with continuing to fund cool projects that become extremely
expensive to maintain.
Discussion followed regarding positives of the consolidation piece,
with sentiment expressed that this should be done across the City, and
not just for the RDA. Director Mendenhall said there was need for policy
and a systematic approach to attaching maintenance, but she did not want
to burden the neighborhood with the weight of undone policy. She said
that could kill the success and this neighborhood could fail . She said
if policy lends to the need to implement a special assessment area like
the Central Business District, these businesses could not afford it. She
said she would be supportive of making allocations to get through 1000
of the design work in order to have solid numbers .
Further discussion followed regarding support of individual Board
Members . Mr. Utley explained that Staff would work with Transportation
and Engineering for the entire corridor. Mr. Millar_discussed timeframe
and explained the consolidated design approach study would begin as soon
as the City Council budget amendment (#5) was approved to incorporate
funds being received from Salt Lake County. He said it would begin with
doing all projects possible beginning this summer and having design
finished within a year to ensure any bids were best prices . He said they
could move forward with the Request-for-Proposal/advertising, but not
the contract selection until the budget amendment was approved.
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Director Fowler encouraged Staff to figure out a maintenance plan
for the entire corridor before returning with design. Ms . Bruno said Mr.
Luedtke had forwarded updated information from RDA Staff about
Administrative Staff estimates relative to baseline costs for the 9-line
Trail (expected typical City maintenance could help form future
conversations) .
The Board conducted a unanimous Straw Poll in favor of allocating
and setting aside the $1 . 316 million requested in BAM 4 for the Central
9th Streetscape Improvements and Undergrounding project, with the
understanding Staff would need to return with the maintenance plan and
final costs .
The Board conducted a unanimous Straw Poll in favor of the
consolidated plan proposal as outlined by RDA Staff.
#3. 2:53:56 PM RDA Budget Amendment No . 4 for Fiscal Year 2018-19.
The Board will receive a follow-up briefing about, and will consider
adopting, a resolution amending the final budget of the Redevelopment
Agency of Salt Lake City for Fiscal Year 2018-19. Budget amendments
happen several times each year to reflect adjustments in the
Redevelopment Agency's budget, including proposed project additions and
modifications. The proposed amendment includes funding for Station
Center, streetscape improvements and power line undergrounding on 900
South, a new housing notice of funding availability (NOFA) round, and
seed funding for the recently created 9-Line and State Street projects
areas, among other changes. View Attachments
Benjamin Luedtke and Danny Walz briefed the Board with attachments .
Mr. Luedtke provided a discussion recap from March 26 and said the Board
could determine to take action on any/all items today. He referenced the
Board' s desire for a maintenance policy. Discussion followed regarding
the projects and funding, with Director Mendenhall inquiring how these
improvements leveraged other area investments . She said daylighting and
trails could offer fabulous comparative information to know going forward
when having to consider reductions . Mr. Luedtke reviewed the Folsom
Trail, Lucy Avenue, and 300 North Pedestrian Overpass and TIGER Grant
funding. He said funding was reduced and the Lucy Avenue project was
pulled. He said given the lower funding amount and overall cost
increases, the funding shifted. He reviewed relative policy questions
(scope reductions, coordination with other projects, and next steps for
Daylighting Feasibility Study) and said the Folsom Trail touched upon
several RDA projects .
Director Mendenhall discussed bonding for catalytic projects in new
project areas . Mr. Walz said Staff was not to the level to recommend a
specific bond eligible project. He said they had held off until the
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project areas were established and Staff was definitely interested in
hearing ideas as this concept was part of a larger strategy. He said
since approval of the Community Reinvestment Area (CRA) , Staff reached
out to the County and other districts to initiate their process to
initiate interlocal agreements . He said with regards to the School
District, they had indicated support of the 9-Line project as proposed,
as well as strategies and goals . He said they provided input and comment
of what they wanted the RDA to focus on, would encourage housing that
would support and be available for families/maintaining those options as
well as housing at the area median income (AMI) level targeted for
teachers to stay and live in the City. He said for State Street, the
School was supportive of the corridor and idea of arterial, opportunities
for development, significance of impacts/barriers for school, and wanted
to ensure a plan that supported and offset the area. He said they had
concern with the size of the State Street Project Area; particularly,
the area to the west that becomes more industrial . They did not know if
that supported their goals as a School District . He said Staff wanted to
return for further discussion with options as to background and history
of the project area.
Director Mendenhall said there was a lengthy time frame involved in
the creation of the State Street Project Area. She said there were
preliminary discussions with the School District, and going forward, she
wanted to have conversation about incorporating those taxing entities
into more of the development process (at least for updates along the
way) . She said these could be opportunities for leadership to hear where
they were at in the process (more regular and frequent communication) .
Mr. Walz said Staff involved them on the process and idea, but did
recognize that deeper conversations or negotiations were necessary in
the development of that plan.
Director Mendenhall inquired about fund balance for Project Areas
with ongoing funding obligations . She said when discussing operations
and maintenance, she wanted a summary of ongoing obligations per project
area. Mr. Walz said this was an ongoing question with Finance and split
into two different types of funding and obligation reserves . He said the
bulk of obligations were bonding for Eccles Theater and the Central
Business District . He said that was information Staff hoped to return to
the Board for discussion on the potential for debt service obligations
shortfall . He said reimbursement agreements were generally tied to tax
increment and others tied to more specific properties . He said ideally,
the Agency would have reserve (similar to the General Fund) but should
target and verify an amount relative to policy. Ms . Bruno said although
the RDA was not governed the same as the City (best practices/good
financial management and not State Law requirements) , it made sense to
consult with the Finance Department and possibly operate the same as the
City from a financial practice .
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Director Johnston discussed light pole banners and community
interest to replace light-pole banners along North Temple and other
neighborhoods . He said he wanted to see a process, partnership, cost
estimates, or future discussion for this concept. He said the issue was
not purchase of the banners, rather placement, access or maintenance. He
said for a small funding amount, this could build morale for the project
areas and payoff in public goodwill .
Director Valdemoros inquired as to the $4 . 5 million housing Notice
of Funding Availability (NOFA) for Areas of High Opportunity. Mr. Walz
said nothing submitted had been viable, and Staff was prepared to present
options to go forward (relative to not having success) . Discussion
followed regarding various marketing efforts .
Director Valdemoros inquired as to expanding the Adaptive Reuse
Grant Program. Mr. Walz said Staff was proposing additional funding
because the program had been very successful in terms of accomplishing
the purpose of targeting adaptive reuse of buildings . He said Staff would
consider variations or continuation of this program.
Director Wharton moved and Director Mendenhall seconded to approve
Resolution R-4-2019 approving Budget Amendment No. 4 as proposed by
Administration contingent upon Administration returning to the Board
with a proposed maintenance funding plan for the Central 9c' Streetscape
Improvements as well as an update on final project costs, which motion
carried, all directors present voted aye. Director Rogers was absent and
Director Johnston was not present for this vote.
#4 . 3:22:21 PM Union Station Hotel Loan for $7 million. The Board
will be briefed about, and will consider adopting, a resolution that
would approve the term sheet for the loan of up to $7 million to Athens
Hotel Development, LLC for construction of a hotel located at 18 North
Rio Grande Street. View Attachments
Danny Walz and Cara Lindsley briefed the Board with attachments .
Mr. Walz said this exciting opportunity could activate, restore, and
adaptively reuse the Union Pacific Depot (cornerstone of original Gateway
Plan) .
Ms . Lindsley provided an overview and background of the project :
boutique hotel, 210-225 guest rooms, ground floor of Union Station
Building would be historically preserved and renovated to include a
restaurant and spaces on the ground floor as well as signature hotel
suites, cost $80 million, and developers anticipated breaking ground in
2020 with less than a two-year construction timeframe . She provided a
financial overview of the project and loan terms, stating the applicant
anticipated attracting about 600 of loan to cost from its senior lender
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and was also anticipating a commitment of approximately $25, 000, 000 . She
said gap financing would be $7, 000, 000 (about 9%) through the RDA Loan
Program.
Inquiry was raised regarding the gap financing percentage, with Mr.
Walz stating they typically prefer to be under 10% . He further discussed
how that determination was made when considering scope, gap, and public
benefit. He said relative to collateral and guarantees, this project was
different in that collateral on structures themselves included over 300
equity commitment, 60o traditional financing, as well as a corporate
guarantee .
Director Mendenhall discussed public benefit and transit
alternatives . She said proximity adjacent to TRAX was a natural when
considering a multi-model transit approach. She said perhaps not for
this loan, but she wanted more detail or stringency regarding what
transit alternatives qualified as public benefits . She inquired if there
were guarantee regarding a hotel' s maintenance of a transit program for
employees (not just create but maintain) . Mr. Walz said Staff was
considering not just transit, but all public benefits across projects .
Director Mendenhall said the design process put mechanical factors in
place .
Mr. McIver provided a quick overview of the site plan and renderings
to provide project context. He said the Athens Group were excited about
the opportunity to redevelop and re-energize the train station.
Director Wharton inquired as to thoughts to engage/enhance the
Gateway or contribute to the area (in addition to visitors staying at
the hotel or taking the train) . Mr. McIver said they anticipated and
needed to be the center of activity for the community. He said the
current Grand Hall was open from 10-5 (yet appeared closed/not inviting) .
He said as an active hotel, these hours would be vastly expanded,
including food and beverage options, gatherings, fun activities within
the Grand Hall (envisioned as a flexible space that could be used for
different purposes throughout the year) . He said the ultimate goal was
to create an upscale boutique hotel that provided a level of
sophistication as well as interactive fun that was lacking in the SLC
lodging market today. He said the historic nature of the Union Station
Building provided great competitive advantage for long-term viability
that could not be replicated. He said the project was envisioned to be
a great return for the community as well as investors .
Director Johnston discussed the renderings and building placement
(circular east/west elevation/missing front historic tie) . Mr. McIver
said the result was the best they could possibly provide on the existing
space available while meeting all site plan requirements .
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Director Valdemoros moved and Director Luke seconded to approve
Resolution R-5-2019 approving the term sheet for the loan to Athens Hotel
Development, LLC for construction of a hotel located at 18 North Rio
Grande Street, which motion carried, all directors present voted aye.
#5. 4:01:12 PM Project Area Creation Priorities. The Board will be
briefed about project area creation priorities. A primary function of
the RDA Board is to create community reinvestment areas, otherwise known
as CRAs or project areas. The Board will discuss the prioritization of
new and extended project areas currently under consideration, and will
receive an update on the 9-Line and State Street project areas. View
Attachments
Danny Walz and Susan Lundmark briefed the Board with attachments .
Mr. Walz said this was part of an ongoing conversation. He said Staff
proposed ideas in February 2018 and received Board direction on
finalizing and creating the 9-Line, Northwest Quadrant, and State Street
areas . He said it was time to return to the Board for direction.
Ms . Lundmark reviewed the Project Area Creation Overview (13 total,
3 in process, 10 potential ideas) . Inquiry was raised as to the number
of additional projects that could be completed with additional Staff.
Mr. Walz said there were variables associated with each project, but he
would guess 3-5 additional projects . He said Staff was asking and
encouraging the Board to review the list, ask questions off line, and be
prepared to conduct a meaningful discussion regarding top priorities .
#6. 4:08:15 PM Guiding Framework and Project Evaluation Process. The
Board will be briefed about RDA Staff's proposed guiding framework and
evaluation process for prioritizing various redevelopment projects. The
intent of the framework would be to clarify the organization's purpose
and outline a methodology for prioritizing projects that align most
closely with the RDA's goals. In addition, Staff is seeking input on a
project evaluation process that would help determine a project's priority
level based on the public benefits it creates. View Attachments
Director Fowler said this item had been pulled from the agenda due
to timing. She encouraged the Board to read through the report, come up
with questions, and be prepared to provide input next month.
#7 . Report and Announcements from the Executive Director. 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.
None .
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TUESDAY, APRIL 23, 2019
#8 . 4 :09:34 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:
• National Development Council Training;
• Public Market Feasibility Study;
• RDA Anniversary Monday June 10, 2019 - 50 year anniversary;
and
• Scheduling Items .
#9 . Report of the Chair and Vice Chair.
None .
D. WRITTEN BRIEFINGS
None .
E. 4 :11:01 PM CONSENT
Director Luke moved and Director Wharton seconded to approve the
Consent Items as presented, which motion carried, all directors present
voted aye .
#1 . Set Date - Resolution: Budget for the Redevelopment Agency of
Salt Lake City for Fiscal Year 2019-20 . The Board will set the dates of
Tuesday, May 21 , 2019 and Tuesday, June 4, 2019 at 7: 00 p.m. to accept
public comment and consider approving a resolution adopting the final
budget for the Redevelopment Agency of Salt Lake City, Utah for Fiscal
Year 2019-20. View Attachments
F. (TENTATIVE) CLOSED EXECUTIVE SESSION. The Board will consider a
motion to enter into Closed Session, in keeping with Utah Code §52-4-
205 for any allowed purpose .
Item not held.
The meeting adjourned at 4 : 11 p .m.
Redevelopment Agency Chair
Secretary
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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 23, 2019 .
clm
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