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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 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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 . 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 (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 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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. 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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, 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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. 18 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 12 , 2018 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 . dr 18 - 9