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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 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 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) 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 #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 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 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 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 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 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 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. 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 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 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 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. 18 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 #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) . 18 - 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 10 , 2018 This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held July 10, 2018 . clm 18 - 10