06/12/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, JUNE 12 , 2018
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, June 12, 2018 in Room 326, Committee Room,
City County Building, 451 South State .
In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall,
Chris Wharton, Charlie Luke, Amy Fowler, and Andrew Johnston.
Staff in Attendance: Cindy Gust-Jenson, Council Executive Director;
Jennifer Bruno, Council Deputy Executive Director; Jacqueline Biskupski,
Mayor/Chief Executive Officer; Patrick Leary, Mayor' s Chief of Staff;
Margaret Plane, City Attorney; Benjamin Luedtke, Council Policy Analyst;
Tammy Hunsaker, Project Manager; Susan Lundgren, Project Manager; Danny
Walz, Chief Operating Officer; Corinne Piazza, Project Manager; Jill
Wilkerson-Smith, Project Manager; DeeDee Robinson, Deputy City Recorder,
and Kory Solorio, Assistant City Recorder.
Others in Attendance: Jesse Dean, Downtown Alliance Director of Urban
Development; Mike Farrell, Internet Properties; Jason LeCates, Whiskey
Street/White Horse Tavern Managing Partner/Business Owner; Peter
Corroon, Spy Hop Owner; and Cassandra Rugan, Executive Director/Spy Hop.
Director Kitchen presided at and conducted the meeting.
The meeting was called to order at 1 : 24 p .m.
A. COMMENTS
There were no public comments .
B. PUBLIC HEARINGS
None .
C. REDEVELOPMENT AGENCY BUSINESS (RDA)
#1 . 1:25:18 PM Approval of Minutes. The Board considered the meeting
minutes of Tuesday, May 29, 2018 and Tuesday, June 5, 2018. View Minutes
Director Fowler moved and Director Rogers seconded to approve the
minutes as proposed, which motion carried, all directors present voted
aye .
(M 18-6)
#2 . 1:25:43 PM Naming of Regent Street Walkway in Honor of Vasilios
Priskos . The Board discussed and considered a resolution adopting City
Code 3. 65 (naming of City Assets) as a one-time policy for the purpose
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of naming the walkway between Main Street and Regent Street adjacent to
the Eccles Theater in honor of Vasilios Priskos. View Attachments
Susan Lundmark, Danny Walz, Jesse Dean, and Jennifer Bruno briefed
the Board. Ms . Lundmark explained there was currently not a policy
regarding the naming of RDA-owned assets . She discussed the option of a
one-time adoption of Salt Lake City Code 3 . 65 (Naming of City Assets)
and said under this City ordinance, the Walkway would be considered a
Major Asset . She further discussed the ordinance-based process
(alternative option) and said if the Board agreed to utilize this as a
one-time RDA Policy, it would be considered the Mayor was now providing
the 15-day notice of the naming request. She said if the Board did not
want to utilize the legislative process for naming the Walkway, a
resolution was attached that adopted City Code 3 . 65 as a one-time policy
which allowed the 15-days to lapse so the Mayor could proceed with the
naming. Ms . Bruno offered clarification regarding the two options (each
with an attached resolution) .
Mr. Dean, Downtown Alliance, explained the Downtown Alliance Board
of Directors wanted to consider ways to honor Mr. Priskos for his
numerous contributions to downtown SLC. He said there were several
proposals received and the Board voted unanimously in November 2017 to
forward a letter to the Mayor and City Council with the request for
renaming the walkway.
Director Mendenhall moved and Director Fowler seconded to adopt
revised Resolution R-16-2018 adopting City Code 3. 65 (Naming of City
Assets) as a One-Time Policy for the Purpose of the Executive Director
(15-day notice period to lapse) to Name the Walkway between Main Street
and Regent Street adjacent to the George S. & Delores Dore Eccles Theater
"Vasilios Priskos Walkway", which motion carried, all directors present
voted aye .
#3 . 1:36:35 PM Follow-Up Discussion on Policy Guidance for the
Notice of Funding Availability (NOFA) for Affordable Housing. The Board
discussed revisions made to the Notice of Funding Availability Policy
based on previous board input, and considered approving the resolution.
View Attachments
Danny Walz and Tammy Hunsaker briefed the Board. Ms . Hunsaker said
per previous Board direction, a revised policy had been prepared. She
said once adopted, this would set forth the program purpose, project
eligibility and requirements, funding terms and conditions, evaluation
and approval process, funds availability, and long-term monitoring and
compliance .
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Director Mendenhall moved and Director Luke seconded to adopt
Resolution R-17-2018 providing for an Affordable Housing Notice of
Funding Availability Policy as proposed, which motion carried, all
directors present voted aye .
The Board requested the RDA Staff share any marketing plan
details/public communications/program recipients or application
information with the Council Staff.
#4 . 1:43:33 PM Construction Loan Request - 208 West 900 South (Spy
Hop Media Arts Center) . The Board discussed and considered approving a
resolution for a $1, 000, 000 construction loan request from Spy Hop
Productions to facilitate a media arts center at 208 West 900 South.
Funds would come from the RDA revolving loan fund and could be forgivable
after a period of five years. View Attachments
Danny Walz, Tammy Hunsaker, Peter Corroon, and Cassandra Rugan
briefed the Board. Ms . Hunsaker provided background on the project and
explained Spy Hop Productions had requested the forgivable loan for a
22, 000 sq. ft. media arts center development located at 208 West 900
South. She said this would be a Youth Media Center multiuse facility,
house Spy Hop' s offices, programming and classroom space, production
facilities, and a community event and performance venue.
Ms . Hunsaker discussed terms of the loan and request for non-profit
use assistance . She said there was an approximate two-year project delay
because of petroleum remediation issues that had now been resolved (which
attributed to financial impacts for Spy Hop) . She said this project would
include a development agreement, a special warranty deed requiring the
community-oriented service use, and option for repurchase (all for
additional insurance the project would be developed and operate as
intended) . Mr. Walz discussed funding terms and philosophy for this
particular fund use . He suggested the Board discuss policy to establish
use priority and objectives for the RDA revolving loan fund for future
requests .
Ms . Rugan discussed fund-raising efforts and said they have $2 . 9
million that also included a State appropriation (combination of
public/private funds) . She said they have a pro-forma budget that goes
out five years with the intent for completion. She discussed the ongoing
fundraising campaign, financial goals, construction details and
increasing costs with the hopes to break ground in September. Mr. Carroon
described renderings of the building.
Director Fowler moved and Director Luke seconded to adopt Resolution
R-18-2018 approving the term sheet for a loan to Spy Hop Productions
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(Spy Hop Forgivable Loan) for a development project located at 208 West
900 South, which motion carried, all directors present voted aye .
#5. 2:01:35 PM RDA Budget Amendment No. 4 for Fiscal Year 2017-18.
The Board considered adopting a resolution amending the final budget of
the Redevelopment Agency for Fiscal Year 2017-18. View Attachments
Danny Walz, Ben Luedtke, and Jennifer Bruno briefed the Board. Mr.
Luedtke explained this amendment included one housekeeping item that
clarified and formalized a motion made by the RDA and budgeted $1 . 3
million for the purchase of the property located at 255 South State
Street.
Director Fowler moved and Director Mendenhall seconded to adopt
Resolution R-19-2018 amending the final budget of the RDA (Fourth Budget
Amendment) for Fiscal Year 2017-2018, which motion carried, all directors
present voted aye .
#6. 2:03:03 PM RDA Budget Amendment No. 5 for Fiscal Year 2017-18 .
The Board considered adopting a resolution amending the final budget of
the Redevelopment Agency for Fiscal Year 2017-18. View Attachments
Danny Walz, Ben Luedtke, and Jennifer Bruno briefed the board. Mr.
Luedtke explained this amendment included one item that budgeted the
redistribution of a total of $6, 210, 791 . 33 in RDA funds set aside for
the purchase of Homeless Resource Centers (HRCs) properties to the
various project areas that funded the HRCs .
Director Fowler moved and Director Mendenhall seconded to adopt
Resolution R-20-2018 amending the final budget of the RDA (Fifth Budget
Amendment) for Fiscal Year 2017-2018, which motion carried, all directors
present voted aye .
#7 . 2:04:33 PM Review of Motion Sheet for Fiscal Year 2018-19 Annual
Budget Adoption. The Board reviewed a draft motion sheet for adoption of
the RDA Fiscal Year 2018-19 annual budget.
Danny Walz, Ben Luedtke, and Jennifer Bruno briefed the board. Ms .
Bruno said there were no major changes from the proposed budget and
highlighted two new Legislative Intents included on the motion sheet.
#8 . 2:05:45 PM Initial Policy Discussion on Tax Increment
Reimbursement Program for City-wide Housing. The Board reviewed initial
staff findings to provide input on formulating a Tax Increment
Reimbursement Policy for Housing. This discussion follows the Board's
request in November 2017 for Staff to formulate a policy to incentivize
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housing that would parallel the RDA's single-property tax increment
reimbursement policy. View Attachments
Danny Walz and Jill Wilkerson-Smith briefed the board. Ms .
Wilkerson-Smith reviewed the proposed Policy Objectives to provide tax
increment funding for new construction projects that provided needed
housing for Salt Lake City and provided tax increment funding to assist
with funding housing renovation projects . She discussed financial
models, new construction and renovation scenarios, new construction
versus renovation models, and considered whether adding commercial would
help.
Discussion followed regarding whether this tool would complement
other RDA programs and provide a usable funding source, the level of tax
increment participation the RDA should receive from the City, benefit
for limited projects, whether the RDA would provide additional tax
increment for achieving the Public Benefit Criteria or create a new list
that prioritized the type and level of affordable housing, level of
affordability, geographic equity, maximum term for the reimbursement
and/or deed restriction, program limits, and how much increment to retain
from the project for administrative expenses .
The Board discussed administration of the program and the highest
and best use for new construction on an extremely large project. Mr.
Walz said most projects of that scope would attempt to find up front
funding sources rather than something that would be repaid over the
course of 20 years . He discussed benefits wherein as a policy, one could
become involved in housing projects for operating/ongoing costs or offset
expenses (support services component) . He said there may not be enough
projects to warrant doing a full-fledged policy at this time.
Director Mendenhall said the prohibition of utilizing tax increment
for programmatic uses seemed to prevent use for support of operations .
Mr. Walz said in this case, they would be reimbursing the developer from
the tax increment versus running the program (separation) . Director
Fowler said this goes back to administration of all housing programs and
ensuring efficiency in tackling the affordable housing crises and not
duplicating efforts . The Board thanked Staff and determined not to take
action on this policy at this time.
#9. Report and Announcements from the Executive Director.
None .
#10 . 2:22:52 PM Report and Announcements from RDA Staff.
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Danny Walz and Corinne Piazza updated the Board on the 255 South
State Street project proposals and status, Overniter project, Granary
Mural grant project, 9-line and State Street Community Reinvestment Area
plan outreach, and miscellaneous scheduling items .
#11 . Report of the Chair and Vice Chair.
None .
D. WRITTEN BRIEFINGS
#1 . 2 :27 :41 PM RDA-owned Property Semi-annual Report - June 2018 .
View Attachments
Written Briefing Only.
E. CONSENT
#1 . 2 :28 :25 PM Set the date - 9-Line and State Street Project Area
Creation. The Board will set the date of Tuesday, August 21, 2018 at 2
p.m. to accept public comment about the first draft of the 9-Line and
State Street Community Reinvestment Area Plans. View Attachments
#2 . Tentative — Set Date to Amend the Fiscal Year 2018-19 RDA
Budget. The Board will set the date of July 10, 2018 at 2 p.m. to accept
public comment and consider amending the Fiscal Year 2018-19 RDA annual
budget .
Director Mendenhall moved and Director Rogers seconded to approve
the consent items as proposed, which motion carried, all directors
present voted aye .
F. CLOSED SESSION
Item not held.
This portion of the meeting recessed at 2 : 28 p .m.
The meeting reconvened in Room 315, Council Chambers, at 7 : 10 p .m.
to conduct additional business .
In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall,
Charlie Luke, Chris Wharton, Amy Fowler, and Andrew Johnston .
Staff in Attendance: Cindy Gust-Jenson, Council Executive Director;
Jennifer Bruno, Council Executive Deputy Director; Patrick Leary,
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Mayor' s Chief of Staff; Rusty Vetter, City Attorney; DeeDee Robinson,
Deputy City Recorder, and Kory Solorio, Assistant City Recorder.
Director Kitchen presided at and Director Rogers conducted the
meeting.
G. UNFINISHED BUSINESS
#1 . 7:10:08 PM Resolution: Budget for the Redevelopment Agency of
Salt Lake City for Fiscal Year 2018-19. The Board will consider approving
a resolution adopting the final budget for the Redevelopment Agency of
Salt Lake City, Utah for Fiscal Year 2018-19. View Attachments
Director Mendenhall moved and Director Luke seconded to adopt
Resolution R-21-2018 adopting the Annual Budget for the Fiscal Year
commencing July 1, 2018 and ending June 30, 2019, reflected in the Key
Changes spreadsheet with the clarifications, contingent appropriation
and legislative intents as shown on the motion sheet as outlined below,
which motion carried, all directors voted aye .
RDA CIP Projects - $1, 734, 966 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. $344, 356 from Central Business District
b. $400, 056 from Depot District
c. $31, 800 from North Temple
d. $400, 754 from West Capitol Hill
e . $558, 000 from West Temple Gateway
Contingent Appropriation - No funds in the Salt Lake City Redevelopment
Agency (RDA) 2018-19 fiscal year budget be used for any civil legal
matter that involves Impact Litigation. "Impact Litigation" is defined
as litigation in which the Redevelopment Agency is a plaintiff or
otherwise initiates such matter, that addresses constitutional or policy
issues that affect both branches of City government, filed against
another governmental or quasi-governmental entity, and the Board finds
that could potentially have long-lasting budgetary or reputational
consequences for the City. Before initiating Impact Litigation, the
Executive Director shall first notify the RDA Board in writing of an
intent or need to file such litigation. If the RDA Board determines
that the Impact Litigation is an appropriate use of RDA funds, then,
through Board action at an open and public meeting, the restriction set
forth in this motion shall be removed with respect to the requested
Impact Litigation.
1 . Except as provided in Paragraph 2 below, the foregoing budget
limitation shall apply to the use and expenditure of the
Attorney' s Office and Governmental Immunity funds and to the
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use and expenditure of personal services funds and payments to
any RDA contracted person or entity, unless funds have been
obligated or appropriated by contract prior to the effective
date of this motion.
2 . Impact Litigation does not include :
a. Lawsuits and other legal matters in which the RDA is
initially named as a defendant or respondent; or
b. Usual and customary activities conducted in the normal course
of RDA business, including:
i . Enforcement of contractual rights; or
ii . Matters related to utilities or environmental matters
in which the RDA has any actual or potential interest .
Legislative Intents - The Board adopts the following legislative intents
to provide policy direction to the Administration and identify
information requests to further coordination across RDA and City housing
programs .
1 . RDA Interim Study Item - Housing Funding Coordination:
The Board asks that the Administration study, on an interim basis,
the City' s efforts in various departments for funding affordable
housing, and report back to the Board mid-year. The Board requests
that the Administration look to coordinate program components and
targets between Housing and Neighborhood Development (HAND)
Division and the Redevelopment Agency (RDA) to ensure that the
various programs and their targeted goals, like area median income
(AMI) targets, are complementary of each other. To the extent that
programs overlap, the Board requests the Administration evaluate
how best to coordinate activities so efforts are not duplicated.
a. Funding History - As a part of this effort, the Board requests
data showing the actual investments/loans to projects from
both HAND and RDA housing programs, the number of units and
what AMI targets those projects met for the past 5 years .
2 . RDA Legislative Intent - Homeless Services Funding:
It is the intent of the RDA Board that agency tax increment not be
the sole funding source for direct provision of services to the
homeless population, such as treatment beds and case management .
The RDA Board believes it is appropriate to the mission of the RDA
to support the homeless population in the form of providing
accessible housing, and in the form of physical improvements to
areas that can support the homeless community. That said, the Board
intends to evaluate exceptions to this general intent on a case by
case basis, and will consider tax increment allocation based on the
participation from other entities, the potential benefit to RDA
project areas, as well as the need targeted.
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H. ADJOURNMENT
The meeting adjourned at 7 : 11 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) .
This document along with the digital recording constitute the
official minutes of the Salt Lake City Redevelopment Agency meetings
(afternoon and evening) held June 12, 2018 .
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