07/10/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JULY 10 , 2018
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, July 10, 2018 in Room 326, Committee Room,
City County Building, 451 South State .
In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall,
Amy Fowler, Charlie Luke, and Andrew Johnston.
Absent: Director Chris Wharton
Staff in Attendance: Jennifer Bruno, Council Executive Deputy Director;
David Litvack, Mayor' s Deputy Chief of Staff; Margaret Plane, City
Attorney; Danny Walz, RDA Chief Operating Officer; Tammy Hunsaker, RDA
Project Manager; Susan Lundmark, RDA Project Manager; Jill Wilkerson-
Smith, RDA Project Manager; Kort Utley, RDA Senior Project Manager; Cara
Lindsley, RDA Project Manager; Allison Rowland, Council Public Policy
Analyst; Katherine Lewis, Senior City Attorney; Kristin Riker, Public
Lands Deputy Director; Nancy Monteith, Landscape Architect; and Cindi
Mansell, City Recorder.
Also Present: David Garbett, Pioneer Park Coalition Executive Director;
Ryan Ritchie, Richie Group; Carlton Christensen, Salt Lake County
Director of Regional Development; and David Amott, Preservation Utah
Programs Director.
Director Kitchen presided at and conducted the meeting.
The meeting was called to order at 2 : 08 p.m.
A. 2:08:28 PM GENERAL COMMENTS TO THE BOARD
Jani Iwamoto discussed the background of the Japan Town community
and residing in the area for over 100 years (Salt Palace District) . She
said periodic expansion contributed to slow removal of the community,
which now also impacted Chins, Polynesians, and the Asian Association of
Utah. She discussed pending development, and said inclusion of the
internal street was not mid-block and diminished the planning fabric of
the streets by turning buildings inward and backs onto the streets . She
discussed the Master Plan and said parking had to be designed to provide
for alcohol, but should provide for entry via 3rd West instead of right
in front of the church. She requested the development not be about money
or high density (using public funds) and said the City had opportunity
to rectify the situation.
Raymond Uno said his Uncle founded the original church and he had
been involved/experienced the disbursement of the community and
destruction of the Japan Town area. He said construction of the Salt
Palace resulted in a loss of property, churches, and Japanese culture in
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Salt Lake City. He discussed cultural diversity and said what remained
could be built into something in which the community could be proud.
George Chapman addressed the proposal to provide $15, 000, 000 in
funding to the Ritchie Group for one level of downtown public parking on
the backs of local business and taxpayers . He said this seemed to
conflict from the City' s past practice of halting development of downtown
parking by developers . He said nothing should be done until the City
revised its demolition ordinance and provided consideration as to whether
there was adequate downtown parking or not. He compared this project to
the previous destruction of Sugarhouse and its walkability.
Brent Koga said he was a member of the Salt Lake City Buddhist
Temple and wanted to extend an invitation to the Annual Obon Festival on
Saturday. He said there would also be a 100-year celebration of the
Japanese Church of Christ on August 25, 2018 . He said this community had
been in this area for over 100 years and expressed concern regarding
development taking over the voices of the long-standing churches and
cultural community. He said these groups should take historical
precedence because of the large role they had played in this community
(money over community representation) .
Karen Kwan (Utah House of Representatives) said she was before the
Board as a personal citizen and member of the Chinese community. She
discussed the history of Plum Alley and how it used to look
(community/history/vibrancy) . She said today, a Chinese descendants
group was working to put up a monument to ensure the story was told for
community members . She said the Chinese culture might be lost but there
was still time to save the Japanese culture.
B. 2:20:55 PM PUBLIC HEARINGS
#1. Amending the Fiscal Year (FY) 2018-2019 RDA Budget. The Board
will accept public comment and consider amending the Fiscal Year 2018-
19 RDA annual budget.
Director Mendenhall moved and Director Johnston seconded to
continue the public hearing, which motion carried, all directors present
voted aye .
C. REDEVELOPMENT AGENCY BUSINESS
#1 . 2:21:54 PM Approval of Minutes. Director Mendenhall moved and
Director Fowler seconded to approve the minutes of the Redevelopment
Agency Board meeting held Tuesday, June 12, 2018, which motion carried,
all directors present voted aye. View Minutes
(M 18-6)
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#2 . 2:22:29 PM 528 Arctic Court Pre-disposition Property Report. The
Board will receive a briefing about the pre-disposition report for a
Tier 1 property located at 528 Arctic Court in the West Capitol Hill
Urban Renewal Project Area. View Attachments
Danny Walz and Susan Lundmark briefed the Board with attachments .
Ms . Lundmark discussed the current status and intent for the property.
Director Mendenhall requested photos to illustrate follow-up or progress
from Preservation Utah.
#3. 2:24:30 PM Pioneer Park Project Funding Request. The Board will
receive a briefing about the Pioneer Park Project and consider by motion
a budget appropriation that includes funding for additional costs of
construction for a new multi-purpose field, walking path, lighting, and
tree plantings. View Attachments
Danny Walz , Tammy Hunsaker, Jennifer Bruno, and Kristin Riker
briefed the Board with attachments . Ms . Hunsaker provided context to the
funding request, including funding details and proposed uses . She
explained Parks and Public Lands was working on this Pioneer Park project
and costs came in $90, 000 higher than previously estimated. She said to
close the $90, 000 gap, Parks and Public Lands had requested $70, 000 from
the RDA and an additional $20, 000 from the Pioneer Park Coalition.
Director Mendenhall inquired as to availability of Parks Impact
Fees funds . Ms . Riker discussed the fund status, stating there were some
previous funds that should have been returned years ago that would have
to be refunded. She said Staff did not approach this funding direction
because it would require a budget amendment (submitted mid-August/would
not have opportunity to approve until November/bids only good until July
31) . She expressed concern with continued cost increases in the current
construction market.
Director Rogers inquired as to improvements for the park and how
many trees would have to be removed. Ms . Riker explained 53 trees would
be removed, with about half of those being in poor condition. She said
24 would be replanted and the reason why all were not being replanted at
this time was because the park hoped to undergo changes and there was
not motivation to plant trees in areas that might eventually entail
restrooms, stage, or something additional for the community. Ms . Riker
said the Pioneer Park Coalition was interested in contributing to the
project and had been approached regarding the recent overrun.
David Garbett addressed the funding gap contribution and explained
the growth from the original contribution amount to nearly double
($300, 000) and now included the additional $20, 000 request. He said the
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Pioneer Park Coalition would have interest in the RDA covering the full
$90, 000 gap in funding because that was a lot of money for his group.
Discussion followed regarding the existing $70, 000 funding
allocated for downtown place making/wayfinding within the Capital
Improvement Plan (CIP) holding account and whether that funding could
fit the intent of this project . Further discussion followed regarding
cost overrun account holdings versus place making, with Mr. Walz offering
explanation for ideas and definition of place making and criteria of
program funding (essentially any public space that would be available
for public use amenity, offer to programming of concerts, events, passive
use) . Ms . Hunsaker said the intent was to enhance public space, provide
increased downtown area identity, and improve pedestrian flows, enhanced
spaces, mid-block crossways, etc. for potential developers .
Director Kitchen said ideally, this should be funded through the
cost overrun account. He inquired if there would be possibility for the
Administration to reimburse the RDA at some point with a budget
amendment. Mr. Walz said Staff could initiate that process . Ms . Bruno
suggested requesting Administration also look at using those fees (that
would otherwise be refunded) in addition to the cost overrun account.
Director Kitchen moved and Director Johnston seconded to
appropriate the full $90 , 000 additional costs funding amount (due to
time sensitivity) from the Downtown Place making Fund (via the CIP cost
overrun account/also consider impact fee possibilities/in addition to
making the Place making Fund whole again) , which motion carried, all
directors presented voted aye .
#4 . 2:43:40 PM Consideration of Initial Steps for Funding an
Underground Parking Structure on Block 67 . The Board will receive a
briefing and consider initial steps to provide funding for an underground
parking structure at the block bounded by 100 South, 200 South, 200 West
and 300 West (Block 67) , just west of the Salt Palace Convention Center.
The large-scale mixed-use project would ultimately include residential,
commercial (retail, dining and hotels) , and office space, as well as a
large parking structure. The Ritchie Group has requested the creation of
a new RDA project area in order to help fund an underground parking
structure for the development, which also would offer a share of paid
parking spaces to the public. In the first of several planned steps for
this project, the Board will consider:
a . Adoption of a resolution authorizing RDA staff to prepare a draft
Community Reinvestment Project Area (CRA) plan for Block 67,
including a project area plan and budget, with a Public Benefits
Analysis of the proposed project.
b. Adoption of a resolution approving an Interlocal Agreement with
Salt Lake County to allow the transfer of a $15 million loan from
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State Highway Funds to the RDA to support the construction of an
underground parking structure for the proposed project. The RDA
would repay the County for these funds with tax increment from the
proposed project. View Attachments
Danny Walz, Kort Utley, Jill Wilkerson-Smith, and Allison Rowland
briefed the Board with attachments . Ms . Rowland said the goal today was
to consider initial steps towards funding construction of the proposed
underground parking structure . She referenced the policy questions
raised to the Board, options and alternatives, and timing considerations .
She said the developer requested an initial funding incentive of $15
million and the County would provide this amount thru the Utah State
Transportation Fund for a new item referred to as a regionally
significant transportation facility. She said the County would pay the
State back through an authorized funding mechanism that increased motor
vehicle fees collected by Salt Lake County. She said the County would
then be reimbursed from Salt Lake City' s tax increment from the project
area over a period of time (per project agreement) and the fund would be
repurposed for future regionally significant transportation projects
(i .e . somewhat of a revolving loan fund) .
Ms . Rowland said in addition, the developer was also working with
RDA Staff towards a larger reimbursement agreement that was not yet
finalized. She said if the Board did not approve the public subsidy, she
understood the developer would scale back and build an above ground
parking structure and eliminate the proposed public mid-block street.
She discussed timing and alternatives to not adopting these resolutions
or identify other funding reimbursement options .
Director Mendenhall inquired as to the reimbursement structure . Ms .
Bruno said many of these technical details were not necessarily included
in the interlocal agreement. She said written answers to these Staff
questions were preferred in order to continue conversations with Salt
Lake County. Ms . Rowland said many of those were included in the Policy
Questions handout.
Director Kitchen inquired as to third-party analysis concerning
effects to the Central Business District area and why the Board was being
asked to make an exception to the Tax Increment (TI) Policy. Ms .
Wilkerson-Smith said while the project proposal followed the basic
outlines of the recently adopted single-property TI Policy, it was not
actually applicable to this proposal because it would establish a new
project area focused on residential and commercial redevelopment (rather
than business retention and expansion) .
Director Kitchen referenced the policy questions and specifically
inquired about Staff time . He said he would appreciate Administrative
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response on the amount of Staff time this would require when they already
had two new project areas, the Northwest Quadrant, Depot District,
Granary District, and many other projects ongoing. Mr. Walz said a
considerable amount of Staff time had been spent in getting to this
point. He said the proposal was complex/unique and was initiated by the
developer in terms of obtaining RDA assistance . He said the request was
made with a sense of urgency and Staff was already invested to get to
this point; moving forward, this would continue to be a significant
amount of Staff time to meet the developments .
Inquiry was raised as to whether the proposal would be a pro or con
for Japantown Street (i .e . investment of millions by private
developer/policy standpoint/public benefit derived/accomplish type of
development desired downtown) and whether the project had been considered
in terms of direction of third-party analysis . Director Johnston
discussed the two phases and inquired which phase included the public
parking. Mr. Utley explained the $15 million incentive pass-thru to the
RDA from Salt Lake County was the first public gesture of support of the
project in terms of financing. He said without that investment, the
developer would pick a different approach.
Mr. Christensen addressed expectations of future mechanisms by
which those funds could be accessed or utilized. Discussion followed
regarding what happened when the $15 million increase in motor vehicle
fees was repaid/what would the County do with that increase after
repayment. Mr. Christensen explained that was not a new fee and in this
particular case, was sales tax driven, variable, and currently generated
more than needed for existing debt. He said the Legislature set aside a
portion and because there was not ability to bond against it, the
Transportation Commission had ability to forward or advance funds, create
a mechanism, and repayment would be a portion of sales tax each year
until whole .
Director Fowler inquired as to the project (parking versus non-
parking) and said the concept might involve a more broad/long-term
picture . She said if this evolved into what the County was envisioning
as a sort of revolving loan fund, what sort of criteria did the County
have towards regionally significant transportation projects if the City
were to participate (i .e . if Salt Lake City were reaping that revolving
loan fund, how would they get it back) . She inquired if SLC would have
the ability to re-use after repayment or if it would preclude them from
future availability of funds . Mr. Christensen said that was in the early
stages of dialogue . Director Fowler said she hoped to see more structured
criteria. Director Mendenhall said she was uncomfortable with creation
of a loan fund over which they would not have authority for a sizeable
investment as well as with the potential impact on Japantown.
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Mr. Ritchie provided a visual representation for the Board, and
discussed pedestrian flow, 3rd South activation, initial focus on the
inside of the building, and methodology. Ms . Bruno provided focus
direction on the interlocal and said these questions were key and could
help define the process early. Director Luke said he felt the specifics
mentioned by Director Mendenhall were important to determine whether the
project fit the scope of what would be envisioned in this location. The
Board discussed 1st South being ignored for some time, trying to bring
enhanced value, and differing ideas . Director Mendenhall said she wanted
to see everyone involved sharpen their pencils together and return with
concise request considerations . She said more collaboration could
happen, including exploration to support and compliment the project.
Discussion followed regarding phases and options . Ms . Bruno
clarified the setup of the financing now was that the first $15 million
would not be post performance . She said as increment came in, the RDA
would be committing that increment to the County first and any additional
to the developer (assuming it would be available) .
Director Luke said he had concerns about doing anything else to
further the treatment of that community and felt design and mitigation
should be further addressed. He inquired if there were a way to relocate
internal issues associated with the mid-block versus adjacent streets .
Discussion followed regarding the long history of impacts to the
community as well as what would happen if the Board were to hold off on
approval of the resolutions (i .e. affects to project and financing) . Mr.
Ritchie discussed the project, design process, phasing, enhancements,
traffic routing, future potential and ideas . Discussion followed that
perhaps the Board could delay the interlocal piece to allow the
developer, County representatives, and RDA Staff work to resolve some of
the issues . Mr. Christensen suggested moving forward to provide
commitment to engage the developer.
Director Mendenhall said she was comfortable moving ahead today
with clear conditions for next steps to come to a project and funding
consensus the Board would be comfortable supporting. Director Luke
encouraged all parties involved to conduct some real discussion with
greater solutions for the communities at stake before this moved forward.
Discussion followed regarding options, community being important, and
willingness to show collaboration to move forward, and ultimate benefit
to be derived from the public benefit analysis .
Director Mendenhall moved and Director Fowler seconded to adopt
both resolutions related to preparing the Block 67 Draft CRA Plan and
approving the Interlocal Agreement with the County as follows :
Adopt Resolution R-22-2018 Survey Area Resolution to Initiate the
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Creation of the Proposed Block 67 Project Area; Resolution R-23-2018
authorizing approval of an Interlocal Cooperation Agreement between the
Redevelopment Agency of Salt Lake City and Salt Lake County providing
for the transfer of County transportation funds for certain
transportation projects within Salt Lake County and Salt Lake City; to
incorporate Policy Questions 1, 11, and 13 into both resolutions; RDA
Staff to work with the applicant to explore commitment to include a
certain number of affordable residential units in the project; RDA Staff
to conduct an analysis of when the Central Business District (CBD) would
reach the minimum tax increment target (with and without removing Block
67) ; in advance of any City Council decision on amending the current CBD
project area boundaries, the RDA Staff produce a cost/benefit analysis
to determine whether the increased economic activity expected from the
project would be sufficient to replace the $40, 528 currently generated
yearly for the City from this block; and that the interlocal agreement
be amended to included language that requires the developer to provide
timely information so that the Administration can fulfill the conditions
precedent to the transfer of funds from Salt Lake County (Section
2/Interlocal) ; and the adoption of this interlocal agreement in no way
commits the RDA Board or Salt Lake City Council to future approvals or
actions, which motion carried, all directors present voted aye . See
Motion Sheet
Director Kitchen requested articulation on what the Board was
expecting relative to collaboration with the Japanese community.
Director Luke said the hope was for the RDA Staff to facilitate
discussion with County representatives (Mr. Christensen particularly due
to his institutional knowledge) , and the downtown community to include
wholesale redesign or things that could be done to enhance the area
directly across from Japantown to include active discussion and
creativity for options to integrate with already completed design work
that supports, respects, recognizes, compliments, integrates, and
accomplished benefits for all parties involved.
Director Johnston addressed exception to policy for future
development. Mr. Walz clarified there were no exceptions to current
policy because there was no policy. He said RDA Staff could draft a
policy and return to the Board.
#5. Northwest Quadrant Tax Increment Policy. The Board may be
briefed about, and consider adopting, a resolution for a Northwest
Quadrant Tax Increment Reimbursement Policy to support implementation of
the Northwest Quadrant Community Reinvestment Area Plan. View
Attachments
Item not held.
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#6. 4:20:24 PM 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.
Mr. Walz provided various project and staffing updates to the Board.
#7 . 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 scheduling
items .
Item not held.
#8. Report of the Chair and Vice Chair. The Chair may review the
minutes of a previous Board meeting.
Item not held.
D . WRITTEN BRIEFINGS
None .
E . CONSENT
None .
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 .
Item not held.
The meeting adjourned at 4 : 21 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) .
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This document along with the digital recording constitute the
official minutes of the Salt Lake City Redevelopment Agency meeting held
July 10, 2018 .
clm
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