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07/09/2019 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake City, Utah, met on Tuesday, July 9, 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, James Rogers, and Andrew Johnston. Staff in Attendance : Cindy Gust Jenson, Council Executive Director; 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; Tammy Hunsaker, RDA Project Manager; Susan Lundmark, RDA Project Manager; Tracy Tran, RDA Project Manager; Corinne Piazza, RDA Project Manager; Benjamin Luedtke, Council Public Policy Analyst; Allison Rowland, Council Public Policy Analyst; Lara Fritts, Economic Development Director; and Cindi Mansell, City Recorder. Others in Attendance : David Brint and Whitney Weller, Brinshore Development Director Fowler presided at and conducted the meeting. The meeting was called to order at 2 : 09 p.m. A. GENERAL COMMENTS TO THE BOARD None . B. PUBLIC HEARINGS None . C. REDEVELOPMENT AGENCY BUSINESS #1 . 2:10:28 PM Approval of Minutes . Director Rogers moved and Director Luke seconded to approve the minutes of the RDA Board meeting held Tuesday, June 4, 2019 and Friday, June 28 , 2019, which motion carried, all directors voted aye . View Minutes (M 19-6) #2 . 2:10:45 PM RDA Capital Improvement Program Projects . The Board will discuss the Mayor's proposed RDA capital improvement projects for Fiscal Year 2019-20. Capital improvement projects typically involve the construction, purchase or redevelopment of buildings, infrastructure or public spaces. Generally, projects have a useful life of five or more years and cost $50, 000 or more. View Attachments 19 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 Jennifer Bruno, Benjamin Luedtke, and Danny Walz briefed the Board with attachments . Mr. Luedtke reviewed the specific projects, funding, and related policy questions . Discussion followed regarding the Central Business District 100 South Infrastructure Improvements ($229, 621) . Mr. Luedtke said the project did not have a scope, funding target, or total cost estimate . He said funding could be spent on design for a larger project like reconstruction or smaller improvements/repairs such as landscaping, streetscapes, and pedestrian crossings . Discussion followed, with the Board expressing concern regarding the lack of knowledge/details about the project. Director Mendenhall said this came out of conversations that started last year with Downtown Alliance and property owners who brought it to the Board' s attention that investments had not been made in that pedestrian pathway in over 20 years . She said they were asking for investment that would result in immediate improvements/benefits (seating, planter, or art installation options) . Inquiry was raised about future maintenance, with Mr. Luedtke stating that was unknown until the project scope was complete . Director Valdemoros suggested a policy or directive that required funding to provide for future maintenance . Mr. Walz said projects were brought to the Board to inform them so that when actual funding decisions were made, the Board considered that as part of their decision. He said Staff would anticipate bringing this back to the Board as part of the amendment to the funding policy. Discussion followed regarding Block 70, Regent Street Parking Structure Capital Reserve ($100, 000) . Mr. Luedtke said this involved contractual obligation until September 2073 to contribute towards maintenance, long-term capital repairs, and possible replacement. The request was made for the City Attorney' s office to review this agreement as well as future contractual obligations for the RDA (Block 70 parking structure) . Ms . Bruno provided historical facts on the current situation and policy reasons that allowed the Eccles Theater project to be built with no parking. Further discussion followed regarding the Depot District Station Center Shared Parking Structure . Director Mendenhall questioned investment in parking structures going forward, or revenue generating potential from such investment . Mr. Walz said the general approach was whether it was revenue neutral (baseline approach) ; he said this was not in policy, just best practice . He said as Staff delves into details of this parking structure, those numbers and that information would be provided. Direction was provided to add this discussion to future policy 19 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 discussion points. Mr. Luedtke addressed the North Temple and West Capitol Hill projects . Discussion followed regarding the process to identify catalytic projects (what this meant/what it looked like) . Mr. Luedtke said the Board had discussed it could consist of faster generation of property tax increment, ways to remove barriers to private development, or better connect the neighborhood. Mr. Walz provided project status updates . Mr. Luedtke reviewed the Project Area Art request (envisioned as a new RDA program) . Mr. Walz said a policy was working on two components : reinstating or updating the old policy requiring developments on a certain scale; and to what extent this was put into policy or the Agency continued to provide funding on an annual basis (either in project areas or smaller scale projects) . He said this would return to the Board for discussion as to what level to commit future funding. Discussion followed regarding potential review of policy questions or deeper discussion prior to adoption of the Capital Improvements Plan (CIP) Plan. #3 . 2:35:16 PM North Temple Urban Renewal Area Interlocal Agreement with Salt Lake City School District. The Board will be briefed about, and will consider adopting, a resolution that would amend an interlocal agreement between the RDA and Salt Lake City School District. The current agreement states that the RDA will set aside up to $2 million in tax increment generated by the North Temple Urban Renewal Area for the construction of a new school in the area. However, the school district no longer anticipates a need for an additional school in the area and is requesting the set-aside funds be used for infrastructure related to safe school crossings. View Attachments Danny Walz and Jill Wilkerson-Smith briefed the Board with attachments . Ms . Wilkerson-Smith said there was 10o set aside in this project area for the School District to save up for potential construction of a new school . She said in recent discussions, they indicated interest in changing the use of the $2 million to go for safety infrastructure for surrounding schools . She said the amount would not change and they wanted to take it to a vote in August. Director Johnston questioned the scope, intent, and specific areas . Ms . Wilkerson-Smith said Jackson and Franklin schools were identified (High-Intensity Activated Crosswalk Beacon (HAWK) signals or safety crossings) . A more detailed discussed followed with Mr. Walz stating Staff could speak to concerns in the agreement language and requested the Board communicate those to Staff (specific to schools or North Temple 19 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 Area) . Mr. Walz said the funding was School District Funding, but the City or RDA would be the pass-thru for the tax increment. He said Staff could follow-up on process and provide more information. Director Rogers inquired if either of those schools fell within the project area. Mr . Walz said they were not, but they served residents within the project area. Discussion followed regarding concerns on funding use . Mr. Walz said the School District did not intend to build a new school in the project area. Director Fowler suggested direction on resolution wording. Director Rogers discussed the Tiger Grant and whether those funds could be utilized. The Board discussed draft language in this amendment to address Board concerns or intent statements . Ms . Wilkerson-Smith said she would take the concerns to the School District for their consideration in early August and Board consideration on the August 20 agenda. #4 . 2:42:48 PM Loan to Brinshore Development for Project at 255 South State Street. The Board will be briefed about, and will consider adopting, a resolution that would approve an approximately $6. 4 million loan request and a $5 million seller's note to Brinshore Development for a mixed-use, mixed-income affordable housing project at 255 South State Street. View Attachments Danny Walz , Kort Utley, Allison Rowland, and Corinne Piazza briefed the Board with attachments . Ms . Rowland suggested the Board also consider the policy decisions included in the packet materials (RDA policies/potential exclusions or exceptions) . Mr. Utley reviewed the loan terms and said the RDA Finance Committee rendered unanimous approval . Discussion followed regarding the 50-year deed restriction recorded on the property (and associated economics) . Mr. Utley said Staff and the developer were looking for repayment as quickly as possible. The Board discussed creative financing, long-term policy, and loan terms (1% for 30 years) as being a long-term commitment . Director Rogers inquired as to policy to bump loan rates over years or related considerations . Discussion included consideration of assets, the Central Business District, selling or retaining property on an interim basis, and other items for future discussion. Director Mendenhall discussed community land trust opportunities on future projects . Mr. Walz said Staff typically preferred to retain assets so they could continue to reuse and receive value (as opposed to dedication within a community land trust) . He discussed return on investment options and said discussion could involve the seller' s notes not included within the Real Property Disposition Policy and future policy discussions . He said Staff realized the current program did not 19 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 fit the affordable housing role and that would need to be a part of the pending items conversation. Director Mendenhall discussed preserving affordability, and said she wanted a piece to consider inventory of RDA- owned properties to include discussion relative to community land trust, incentivizing, or encouraging developers to consider adjacent parcels (potential combining, etc. ) She said going forward (in terms of pending discussion items) , there should also be discussion relative to seller' s notes and other loan considerations . Director Wharton moved and Director Luke seconded to adopt Resolution R-10-2019 approving the Term Sheets for the loans to Brinshore Development, LLC for acquisition and redevelopment of real property located at 255 South State Street, which motion carried, all directors voted aye . #5 . 2:56:41 PM 2019 Notice of Funding Availability for Affordable Housing Update. The Board will receive an update about the 2019 Notice of Funding Availability (NOFA) for affordable housing. The Board recently set aside more than $10. 7 million towards affordable housing projects that would be determined through a competitive and transparent NOFA application process for housing proposals to the Redevelopment Agency Committee (RAC) for a term ending January 16, 2023. View Attachment Danny Walz, Tammy Hunsaker and Tracy Tran briefed the Board with attachments . Ms . Hunsaker said this was an informational briefing about the current Notice of Availability of upwards of $10 million in affordable housing development assistance dollars . She said two informational meetings were being held in efforts to publicize funding availability through a transparent and public process . She said RDA Staff would provide an overview of the application, requirements, and selection process at those public meetings in hopes of encouraging application by qualified developers demonstrating ability to design, build, and manage affordable and mixed-income housing. She said funding awarded through the NOFA would be added to other sources of public and private investment to maximize the impact on the community. Discussion followed regarding applicants and potential to have remaining or leftover funding. Ms . Hunsaker said if that occurred, Staff would return to the Board to discuss how to proceed. She said NOFA funds would be administered according to the policy adopted in June 2018 . She said that policy outlined 11 funding priorities : transit proximity, equity/geographic distribution, mixed income, displacement prevention, diversity and innovation of housing types, neighborhood revitalization, underserved populations, long-term affordability, sustainability, leveraging, and financial viability. She said to be eligible, projects must have units 60o area-medium-income (AMI) or below, and the policy laid out approval process and general terms to underwrite the loans . 19 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 Ms . Tran provided an update on the process timing and schedule : NOFA released on June 24, 2019; applications and deadlines posted on the Utah Procurement website and the RDA Website; two informational meetings (July 10 and July 19) ; application deadline of August 16; followed by Staff review and evaluation; projects reviewed by the Finance Committee; and the Board making the final funding decision. Further discussion followed regarding outreach efforts including: website, press release, on-line advertising, social media, public meetings, etc. The Board inquired as to the level of interest, with Ms . Hunsaker stating Staff hoped to glean a good idea of interest at the upcoming informational meetings . #6. 3:01:34 PM Internal Board policy discussion on RDA Housing Trust Fund. The Board will have an internal policy discussion to clarify intent for the RDA Housing Trust Fund, which is focused on providing loans to affordable housing developments. View Attachment Director Fowler said the Board had recently determined to relocate the Housing Trust Fund (including Funding our Future funds) over to the RDA. She said the intent was to streamline the development process and having the NOFA at the same time as the Housing Trust Fund dollars accomplished that intent (funding available for developers/Staff could figure out best program or process) . She said the Board had full faith that if funds were necessary from the Housing Trust Fund, it could be administered quickly and the Housing and Neighborhood Development (HAND) and Community and Neighborhood (CAN) Staffs could continue to perform their amazing work. #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. No discussion held. #8 . 3:04:00 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 50 Year Update; and Scheduling Items. Mr. Walz said the RDA 50th Anniversary event on June 21, 2019 was very successful . He thanked RDA Staff that compiled the publication and organized the event . He said the RDA had reinvested a total of more than $530 million back into communities across Salt Lake City, tallying up some notable figures along the way. These included providing $117 million in total loan funding; invested $170 million in public improvements; 19 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 facilitated the construction of approximately 7, 000 housing units throughout the City; dedicated $3 . 4 million to public art; committed $123 million in tax increment reimbursements; and completed 349 major redevelopment projects . Mr. Walz said the goal was to continue to monitor and track RDA history. This being her last meeting, the Board recognized Lara Fritts and the work she had completed during her tenure as the Economic Development Director. They thanked her for her service and expressed their appreciation for her many efforts . #9. 3:14:35 PM Report of the Chair and Vice Chair. Director Fowler reported the Board received a thank you for their program "Ant Flo", recognizing funding initiatives for Citywide distribution/availability of feminine hygiene products . She recognized the male officials who helped achieve this program and distributed "Flo Bros" official pins . 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 3 : 15 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) . 19 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JULY 9, 2019 This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held July 9, 2019 . clm 19 - 8