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02/09/2016 - Minutes MINUTES OF THE 766th MEETING OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY Tuesday, February 09, 2016 451 South State Street, Room 326 Salt Lake City, Utah 2:00 p.m. 1. 2:02:21 PM Roll Call 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 Charlie Luke, Director James Rogers, Director Erin Mendenhall, Director Also Present: Jackie Biskupski, 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 Damon Georgelas,Agency Legal Counsel Crayola Berger, Accountant II Jolynn Walz, Office Manager Kalli Ruiz, Office Facilitator Micah Peters, Clearwater Homes Kyle Jardine, PEG Development RDA Board Meeting Minutes Tuesday,February 9,2016 Page 2 2. 2:03:11 PM Briefing by the Staff. DJ Baxter The RDA Board invited DJ Baxter to the meeting in order to honor him for the eight years he served as Redevelopment Agency's Executive Director. They expressed their gratitude for his hard work, vision, and dedication to the Agency and to Salt Lake City. The RDA Board presented Mr. Baxter with a book of pictures that displayed projects that he had worked on throughout his career. Board members also presented flowers to DJ's wife, Amy Defreese and thanked her for allowing so much of Mr. Baxter's personal time to be dedicated towards the RDA. Convention Hotel Committee Interim Executive Director Belliveau explained that a replacement is needed to serve on the Convention Hotel Selection Committee. Board Members selected Justin Belliveau to serve on the Convention Hotel Selection Committee. GUCOA Interim Executive Director Belliveau stated that an interim replacement for the Agency's representative on the GUCOA Board(Gallivan Utah Center Owners Association) is needed. RDA Board members recommended Justin Belliveau to serve on the GUCOA. 3. 2:12:55 PM Approval of the Minutes from the Meeting held January 12, 2016. Director Rogers made a motion to approve the minutes from the meeting held January 12, 2016. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. View Minutes 4. 2:13:16 PM Report of the Chief Administrative Officer. Chief Administrative Officer Biskupski thanked the RDA Board and Staff for explaining and guiding her and her team through the reconsideration process. She also thanked Justin Belliveau for serving as interim director in Mr. Baxter's absence. 5. Public Comments. No public comments were presented. 6. Redevelopment Business Action Items. A. 2:16:44 PM Request for Reconsideration by the Chief Administrative Officer of the resolution to enter into an Exclusive Negotiations Agreement for development of the property located at 340 West 200 South in the Central Business District Project Area. RDA Board Meeting Minutes Tuesday,February 9,2016 Page 3 Discussion to reconsider Resolution No. 765.01 authorizing the RDA to enter into an exclusive Negotiations Agreement with the joint venture of PEG Development and Clearwater Homes Regarding the Development of RDA-owned Property. View Attachment Interim Executive Director Belliveau stated that Mayor Biskupski has requested the RDA Board reconsider Resolution No. 765.01, which authorized the RDA to enter into an Exclusive Negotiations Agreement with the joint venture of PEG Development and Clearwater Homes for the development of RDA-owned Property located at 340 West 200 South. Interim Executive Director Belliveau explained the reconsideration process and stated that Chief Administrative Officer Biskupski would like to reopen the discussion and talk about the level of affordable housing within this project, long term housing needs, and whether any additional RDA resources are needed to meet those needs. 2:20:32 PM Director Penfold made a motion to reconsider Resolution No. 765.01. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. Director Mendenhall asked whether a housing analysis could be performed to decide if further RDA resources are needed to enhance RDA projects and meet the housing goals and needs. Interim Executive Director Belliveau said he felt there could be an evaluation of City and RDA housing need and goals during each land disposition. He explained that this evaluation could be utilized in during this particular project as staff continues to work with the developer to analyze the feasibility of this project, and to review the constraints of the site. Director Mendenhall expressed concern with delaying this project with such a process. The Developers of the project, Micah Peters of Clearwater Homes and Kyle Jardine of PEG Development were asked to address the Board. Mr. Peters that given direction from the Board at last month's meeting and then being informed of the Mayor's concerns, his team will develop a matrix that outlines multiple scenarios of affordability based on varying levels of Area Median Income (AMI) and the relationship between each scenario of affordability and the associated incentive that may be required to enable the developer to achieve each scenario. All scenarios of affordability shown on this matrix will be based on a minimum of 20% of the total units being affordable as required by the Board. This matrix will be presented to the Board for approval at a later date. Director Penfold asked whether RDA Staff has considered ways to structure a discussion with the Board on how to develop a policy on when to allow a land write down for a project. Interim Executive Director Belliveau said that staff has started those conversations and hopes to provide more information for consideration at the March Board Meeting. RDA Board Meeting Minutes Tuesday,February 9,2016 Page 4 Director Penfold asked whether this project could be used as a pilot project to help guide policy, without delaying the project. Interim Executive Director Belliveau said yes. Mr. Peters stated that new developments may not be the only vehicle to achieve affordable housing. He suggested that the City approach developers of other recently constructed multi- family units, to explore whether they would be willing to set aside a small percentage of their units for a certain AMI category in exchange for financing incentives. He also suggested that the City approach owners of older housing structures and offer loans for upgrades and improvements provided they are willing to set aside some units to help accomplish affordable housing goals. Director Penfold asked RDA staff to track these suggestions to be considered as part of a future policy discussion. Vice-Chairperson Kitchen stated that he thought that during the January meeting, Staff was directed to research the AMI range of 50%-70%. He asked Mayor Biskupski whether there was a range that she preferred to see within the project. Chief Administrative Officer Biskupski said that the 50%-70%AMI range was in line with her thoughts and expressed her appreciation for today's discussion. Director Rogers stated there have been many conversations concerning affordable housing during RDA and City Council meetings; however no final decisions are ever made. He requested that at the next Board meeting options, incentives, and implementation steps for affordable housing are presented and solidified so that RDA Staff has the direction they need to move forward. 2:47:30 PM Vice-Chairperson Kitchen made a motion to affirm Resolution No. 765.01 (Resolution R-5-2016) with the expectation that RDA Staff and the Developer identify and present a way to expand the proposed range of affordability of the project and what financial support may be required from the RDA. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. B. 2015-2016 Budget: 1. Public Hearing for Adoption of the Second Amendment to the 2015- 2016 Annual Implementation Budget. The RDA Board will hold a Public Hearing to accept comments from the public regarding the proposed Second Amendment to the 2015-2016 RDA Budget. View Attachment 2:49:20 PM Chairperson Adams opened the public hearing and called for comments on the proposed second amendment to the 2015-216 RDA Budget. There were no public comments. Director Penfold made a motion to close the public hearing. Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved and the public hearing was closed. RDA Board Meeting Minutes Tuesday,February 9,2016 Page 5 2. 2:49:31 PM Consideration and Adoption of a Resolution of the Board of Directors of the Redevelopment Agency of Salt Lake City Adopting the Second Amendment to the Annual Implementation Budget for the Fiscal Year Commencing July 1, 2015 and Ending June 30, 2016. Staff has proposed, and RAC has recommended, several amendments to the 2015-2016 Budget to reallocate funds received from various sources and amend the current staffing document. View Attachment Interim Director Belliveau stated that Staff is requesting that the Administrative Secretary position be increased from an 80%/20% shared position with CED to a full-time position for the Agency, due to the increase in RDA staff members and the complexity of the projects additional support needed. He explained that no additional funding is required. Interim Director Belliveau explained that the second change to the 2015/2016 Budget is a temporary position to support the opening of the Eccles Theater. Due to the importance of maintaining continuity through the completion and opening of the Eccles Theater, the Mayor proposes adding this position and current occupant, Katherine Potter, to the RDA through completion of the Eccles Theater and the remainder of 2016. Director Penfold made a motion to approve the Second Amendment to the 2015/2016 Annual Implementation Budget(Resolution R-3-2016). Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. C. 2:51:32 PM Consideration and Adoption of a Resolution of the Board of Directors of the Redevelopment Agency of Salt Lake City Approving an Amendment to the Purchase and Sale Agreement with Everest Builders for the Development of Agency-Owned Property Located at 500 North and Arctic Court. Everest Builders is requesting a three month extension to complete the building permit process for the proposed 12-unit town home development on Parcel 4 of the Marmalade Block at 500 North and Arctic Court. View Attachment Mr. Butterfield explained that Staff is returning to the Board with an amendment to the Purchase and Sale Agreement with Everest Builders. He stated that Everest Builders is requesting a three month extension to complete the building permit process for the proposed 12-unit town home development on the Marmalade Block at 500 North and Arctic Court. He added that the amendment would extend the closing date to May 23, 2016. 2:53:00 PM Director Penfold made a motion to approve the resolution (Resolution R-4-2016)to amend the purchase and sale agreement. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. RDA Board Meeting Minutes Tuesday,February 9,2016 Page 6 7. Redevelopment Business Updates. A. Budget 1. 2:53:22 PM 2016/2017 Budget Schedule Staff has prepared an updated schedule for the 2016-17 budget process, the schedule is informational and no action is required View Attachment Interim Director Belliveau reviewed the draft 2016/2017 Budget Meeting Schedule with the RDA Board. Chairperson Adams asked for Staff to present budgets and budget options on affordable housing contributions within each project area during the March 2016 meeting. 2. 2:58:14 PM 10-Year Budget Projections Staff has prepared 10 year budget projections in preparation for the 2016/2017 budget process. The spreadsheets provided in the written briefing reflect likely available tax increment after contractual and other fixed obligations. The projections are informational and no action is required View Attachment Interim Director Belliveau said as the Board begins the budget process,the 10-year Budget Projections are a good resource to consider as the basis for the Agency's likely allocation of tax increment in each project area. He explained the numbers will be finalized once Staff has receives the disbursement from Salt Lake County in April. 8. Redevelopment Business/Written Briefings. None. 9. Consent. None. 10. Closed Meeting. A. 2:58:57 PM 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 Johnston 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. Vice- Chairperson Kitchen seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. RDA Board Meeting Minutes Tuesday,February 9,2016 Page 7 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 3:00 PM on Tuesday, February 9, 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; Charlie Luke, Director. The following members of the staff of the Redevelopment Agency of Salt Lake City were present: Justin Belliveau, Interim Executive Director; Crayola Berger, Accountant; Jolynn Walz, Office Manager; Kalli Ruiz, Office Facilitator; Tammy Hunsaker, Project Coordinator. Others present: Tom Berggren, Agency Legal Counsel; Damon Georgelas, Legal Counsel; Katie Lewis, Legal Counsel; Jennifer Bruno, Salt Lake City Council Office, 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 Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved and the closed meeting. The meeting was adjourned at 4:00 PM. 11. Adjournment. There being no further business, the meeting was adjourned. Lisa R. Adams, Chairperson