06/11/2019 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11, 2019
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, June 11, 2019 in Room 326, Committee Room,
City County Building, 451 South State .
In Attendance: Directors Erin Mendenhall, Amy Fowler, Chris Wharton,
Charlie Luke, Analia Valdemoros, Andrew Johnston, and James Rogers .
Staff in Attendance: Cindy Gust-Jenson, Executive Council Director;
Jennifer Bruno, Council Executive Deputy Director; David Litvack,
Mayor' s Deputy Chief of Staff; Danny Walz, RDA Chief Operating Officer;
Katherine Lewis, Senior City Attorney; Kort Utley, RDA Senior Project
Manager; Cara Lindsley, RDA Project Manager; Corinne Piazza, RDA Project
Coordinator; Benjamin Luedtke, Council Public Policy Analyst; and Scott
Crandall, Deputy City Recorder.
Guests in Attendance: Sean Neves, Congregation Group; Whitney Weller,
Brinshore Development Senior Vice President; and David Brint, Brinshore
Development Co-founder/Principal .
Director Fowler presided at and conducted the meeting.
The meeting was called to order at 2 : 11 p.m.
A. GENERAL COMMENTS TO THE BOARD
None .
B. PUBLIC HEARINGS
#1. 2:11:36 PM RDA Budget Amendment No. 5 for Fiscal Year 2018-2019.
The Board will accept public comment, and may consider discussing and
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. This amendment addresses proposed housekeeping items that
would "true-up" actual tax increment received compared to budgeted
estimates in the City budget for Fiscal Year 2018-19. The proposed items
also finalize distribution of those funds to taxing entities and
organizations that have reimbursement agreements with the RDA. View
Attachment
There were no public comments .
Director Wharton moved and Director Mendenhall seconded to close
the public hearing, which motion carried, all directors voted aye, except
Director Johnston, who was absent for the vote .
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MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11 , 2019
C. REDEVELOPMENT AGENCY BUSINESS
#1 . 2:11:51 PM Resolution: RDA Budget Amendment No. 5 for Fiscal
Year 2018-2019. The Board will discuss and 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. This amendment
addresses proposed housekeeping items that would "true-up" actual tax
increment received compared to budgeted estimates in the City budget for
Fiscal Year 2018-19. The proposed items also finalize distribution of
those funds to taxing entities and organizations that have reimbursement
agreements with the RDA. View Attachment
Danny Walz briefed the Board with attachments . He said this budget
amendment was basically housekeeping items as well as accepting the
additional tax increment forwarded by Salt Lake County. He said the only
other item would be allocation of funds for sale of the Marmalade Block
previously authorized by the Board.
Director Luke moved and Director Rogers seconded to adopt Resolution
R-7-2019 approving the fifth budget amendment as proposed by the
Administration including recapture of $395,573, Housing Trust Fund
allocation, to go into a holding account in the Primary Housing Fund,
which motion carried, all directors voted aye, except Director Johnston,
who was absent for the vote .
#2 . 2:25:01 PM Resolution: Loan to Congregation Group, LLC for
Project at 25 North 900 West. The Board will be briefed about, and
consider adopting, a resolution that would authorize a loan of up to
$850, 000 to Congregation Group, LLC for a project located at 25 North
900 West. The proposed project is to develop a distillery, bar and grill,
and working urban fruit orchard. The project includes the adaptive reuse
of the 12, 000-square-foot Utah Quality Service building, located at 25
North and 900 West, and two properties immediately north at 35 North and
37 North. View Attachment
Danny Walz, Cara Lindsley, and Sean Neves briefed the Board with
attachments/PowerPoint. Ms . Lindsley provided details of the proposed
location within the North Temple Project Area. She discussed the
distillery concept (gin, whiskey, brandy) , bar and grill, and working
urban fruit orchard. She said the project included an outdoor dining
area and spirit garden, with a planned outdoor mural wall . She said the
entire project cost was $3 . 6 million and intent was to break ground this
summer with a six-month construction schedule . She discussed financing
and loan terms being within the RDA loan policy and not requiring
waivers .
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MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11, 2019
Mr. Neves discussed the project (beginning in 2012) and said the
orchard portion spoke to the type of equipment being installed (cognac
stills/dating pre-World-War-2 era) . He said they were lucky to lock down
the amazing property with excess land and have opportunity to till the
earth, plant fruit trees, and include an amazing educational opportunity
illustrating cradle-to-grave use of fruit. He discussed the concept to
witness the creation of spirits . He said it involved a complex licensing
scenario. He said although a restaurant was desired, they could not hit
the food ratio requirements and would initially apply for a bar license.
He said the future hope was for a restaurant but they would also have a
distillery license with the Federal Government as well as the State of
Utah. Director Johnston spoke in approval of the building reuse, and
activation to get the North Temple area developing. Director Rogers spoke
about reuse of trees and the positive development for the neighborhood
and community.
Director Mendenhall moved and Director Wharton seconded to adopt
Resolution R-8-2019 approving the term sheet for the loan up to $850 ,000
to Congregation Group, LLC for construction of Congregation Spirits
Distillery on property located at 25 North 900 West, which motion
carried, all directors voted aye .
#3 . 2:40:26 PM Informational : 255 South State Street Redevelopment
Status Report. The Board will receive a project update on the
redevelopment of RDA-owned property located at 255 South State Street.
The project is envisioned as a mixed-use, mixed-income affordable housing
development that would consist of two buildings separated by a mid-block
walkway. The proposed project also includes the adaptive reuse of the
historic Cramer House, located approximately at the rear of the property
on Floral Street and 200 South. View Attachment
Danny Walz , Kort Utley, Corrine Piazza, David Brint and Whitney
Weller briefed the Board with attachments/PowerPoint. Mr. Walz explained
Staff bought this property out of foreclosure (failed project) and
thanked the Board and Mayor for their support in sharing Staff vision.
He said given the complexity of the project and magnitude of Agency
participation, Staff thought it would be beneficial for the Board to
meet the developers and receive an update . Director Fowler said this
went along with bringing the idea before the Board before starting a
project (define expectations and interests to developers up front) .
Mr. Utley highlighted the Request-for-Qualification (RFQ)
including: broad range of housing types, active ground floor use, mid-
block walkway to connect State Street, historic structure preservation
and restoration, quality design project, and timely manner. He said
Brinshore Development was selected and were prepared to provide an
overview of the proposed project.
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TUESDAY, JUNE 11 , 2019
David Brint and Whitney Weller provided an overview of the property
and development concept . Mr. Brint said they met the RFQ intents and
reviewed the project proposal, funding, elements, and time schedule .
Inquiry was raised about the land, with Mr. Brint stating there would be
$13 million from RDA loans . He said there was agreement of $5 million
out-of-pocket costs to be repaid and discussed other funding and
repayment terms . Director Fowler said the official ask would come before
the Board next month and this meeting was to alleviate any concerns
before that time . She discussed concerns associated with the $12 million
ask but said the benefits stemmed from a partnership wherein the Agency
would be repaid. The Board discussed various project elements (multi-
family housing market and need, kid-friendly amenities, open space,
parking, design, and music program) .
The Board conducted a unanimous Straw Poll in support of the
proposal to return before the Board with the formal request.
#4 . 2:14:30 PM Review of Motion Sheet for Fiscal Year 2019-2020
Annual Budget Adoption. The Board will review a draft motion sheet for
adoption of the RDA Fiscal Year 2019-20 annual budget. View Attachment
Jennifer Bruno and Benjamin Luedtke briefed the Board with
attachment/PowerPoint. Ms . Bruno said the Board would meet this evening
to consider formal adoption of the budget. She said Staff wanted to run
through potential motions to ensure information accuracy. Further review
followed of the Key Changes, with Ms . Bruno highlighting the updated
information and individual tracking of the Housing Trust Fund in the RDA
(separate from Primary Housing Fund) . She said this ensured the funds
were tracked and managed separately, although both were still managed by
purposes of the Housing Trust Fund.
Director Fowler said several Board Members were able to meet with
a Housing advocate who had concerns about the funding relocation. She
said the intent was not to take away funding but rather the idea around
housing policies in that the development belonged in a department
offering development. She said similar discussions were taking place at
the State level . She said due to the end of the budget year and need to
move forward, for this year placing the funds in an area with expertise
would be a good trial that would entail future policy discussion (which
might entail an outside consultant, review of best practices, housing
program and housing development programs, etc. ) . She said the Board
needed to ensure effective spending of taxpayer dollars as well as
streamlining process . Discussion followed regarding transparency,
consistency, and efficiency being top priorities . Director Fowler said
the intent was not to get rid of the Housing Trust Fund.
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MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11 , 2019
#5. 3:12:03 PM Board Appointment: Redevelopment Advisory Committee
- Jason Head. The Board will interview Jason Head prior to considering
his appointment to the Redevelopment Advisory Committee (RAC) for a term
ending January 17, 2023. View Attachment
Director Fowler said Mr. Head' s name was on the Consent Agenda for
formal consideration.
#6. 3:15:16 PM 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.
#7 . 3:15:24 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 scheduling items .
None .
#5. 3:15:27 PM Report of the Chair and Vice Chair.
Director Fowler thanked those who participated in the budget
process .
D. WRITTEN BRIEFINGS
#1 . 3:16:55 PM Semi-Annual Report of RDA-owned Property - as of June
2019 . The Board will receive a written briefing of all Tier 1 and Tier
2 properties owned by the RDA, as per the Land Disposition Policy. The
report includes the description, address, parcel ID, size, zoning and
tier category of each property. In addition, the report details
approximate acquisition date, current category of disposition, interim
use and proposed permanent use for each property. View Attachment
E. CONSENT 3:17:0 9 PM
Director Luke moved and Director Wharton seconded to approve the
Consent Agenda, which motion carried, all directors voted aye .
#1 . Board Appointment: Redevelopment Advisory Committee - Jason
Head. The Board will consider approving the appointment of Jason Head to
the Redevelopment Advisory Committee for a term ending January 17, 2023.
View Attachment
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MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11 , 2019
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.
This portion of the meeting recessed at 3 : 17 p .m.
The meeting reconvened in Room 315, Council Chambers, at 7 : 13 p .m.
to conduct additional business .
The following Board Directors were present :
Andrew Johnston James Rogers Charlie Luke
Amy Fowler Erin Mendenhall Chris Wharton
Analia Valdemoros
Jennifer Bruno, Council Executive Deputy Director; Patrick Leary,
Mayor' s Chief of Staff; David Litvack, Mayor' s Deputy Chief of Staff;
Lynn Pace, Acting City Attorney; and DeeDee Robinson, Deputy City
Recorder; were present .
Director Fowler presided at and Director Valdemoros conducted the
meeting.
OPENING CEREMONY
#1 . 7 :09:30 PM Pledge of Allegiance.
#2 . 7 :09:52 PM Welcome/Review of Standards of Conduct.
POTENTIAL ACTION ITEMS
#1 . 7 :14 :03 PM Resolution: Budget for the Redevelopment Agency of
Salt Lake City for Fiscal Year 2019-2020 .
The Board will consider approving a resolution adopting the final budget
for the Redevelopment Agency of Salt Lake City, Utah for Fiscal Year
2019-20 . View Attachments
Director Fowler moved and Director Wharton seconded to adopt
Resolution R-9-2019, adopting the Fiscal Year 2020 RDA Budget reflected
in the attached Key Changes spreadsheet with the clarifications,
contingent appropriations and legislative intents as shown on the motion
sheet (and outlined below) which motion carried, all directors voted
aye .
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MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11 , 2019
Central Business District discretionary projects :
• That this budget is approved with the understanding that
$329, 621 ($100, 000 originally slated for Gallivan incubator
programming & $229, 621 originally slated for 100 South
Infrastructure improvements) be held in an unappropriated
holding account pending further board discussion about
prioritization of discretionary projects in the CBD. This
could include review of a process for prioritization of future
discretionary funds in project areas.
Usage of Fund Balance for the FY 2020 Administrative budget
• That this budget is approved with the understanding that going
forward, fund balance or one-time sources will not be used to
fund the Administrative budget
RDA CIP Projects - $2, 432,229 in CIP to be held in unappropriated holding
accounts to include RDA capital projects in the larger CIP discussion
later this summer, as follows:
a. $0 from Central Business District (capital project included
in motion above)
b. $100, 000 from Block 70
c. $581,503 from Depot District
d. $304,909 from North Temple
e. $440, 602 from West Capitol Hill
f. $1, 005,215 from Program Income Fund
Overall Budget Process Note: Unless the RDA Board expressly appropriates
funds, they're ineligible to be spent. The Board will discuss the
proposed FY20 RDA CIP projects in further detail during the Board's July
meeting, with potential approval at that meeting or in August.
The meeting adjourned at 7 : 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) .
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MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 11 , 2019
This document along with the digital recording constitute the
official minutes of the Salt Lake City Redevelopment Agency meetings
(afternoon and evening) held June 11, 2019 .
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