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06/06/2002 - Minutes PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, DUNE 6, 2002 The City Council of Salt Lake City, Utah met in Work Session on Thursday, June 6, 2002, at 5:30 p.m. in Room 326, Committee Room, City County Building, 451 South State Street. In Attendance: Council Members Carlton Christensen, Van Turner, Nancy Saxton, Jill Remington Love, Dave Buhler, and Dale Lambert. Absent: Councilmember Eric Jergensen Also In Attendance: Cindy Gust-Jenson, Executive Council Director; Mayor Ross C. "Rocky" Anderson; Rocky Fluhart, Chief Administrative Officer; David Nimkin, Mayor's Chief of Staff; D. J. Baxter, Mayor' s Senior Advisor; Gary Mumford, Council Deputy Director/Senior Legislative Auditor; Russell Weeks, Council Policy Analyst; Michael Sears, Council Budget and Policy Analyst; Janice Jardine, Council Planning and Policy Analyst; Sylvia Jones, Council Constituent Liaison; Margaret Hunt, Community and Economic Development Director; David Dobbins, Community and Economic Development Deputy Director; Jerry Burton, Police Department; Laurie Dillon, Budget Analyst; Gordon Hoskins, Controller/Accounting; Randall Hillier, Capital Improvement Program Administration/Budget and Policy Analyst; Susi Kontgis, Budget Analyst; Nelson Knight, Capitol Hill/Historic Preservation Planner; Rick Graham, Public Services Director; David Oka, Redevelopment Agency Director; Kay Christensen, Budget Analyst; and Scott Crandall, Deputy Recorder. Councilmember Buhler presided at and conducted the meeting. The meeting was called to order at 5:33 p.m. AGENDA ITEMS #1. FRASER BULLOCK, CHIEF OPERATING OFFICER OF THE SALT LAKE OLYMPIC ORGANIZING COMMITTEE, WILL MAKE A PRESENTATION TO THE MAYOR AND CITY COUNCIL. Mr. Bullock presented a check to the City for the Sports Complex used during the 2002 Winter Olympic Games. #2. HOLD A FOLLOW-UP DISCUSSION REGARDING DOWNTOWN AND MAIN STREET. View Attachment Councilmember Buhler said the Council needed to discuss the issue and then develop objectives or a policy statement which could be incorporated into an official document. He said a drafting committee could be created to prepare the document. He said input was needed from all Council Members. Councilmember Buhler asked each Council Member to speak about the issue. Comments included: identifying and addressing community needs; business owners perspective; vacancies; controlling housing and commercial growth; enlivening the downtown area; restaurants; entertainment; misperceptions; identifying reasons for people to come downtown; parking issues; appropriate housing development; noise; mass transit; difficulty in getting to downtown; convenient shopping; reduction of bus service to downtown; how involved the Council and Administration should be in determining the destiny of Main Street; downtown malls; allowing businesses to make decisions; revitalization; discount retail; walkable downtown; targeting specific groups; Gateway; light rail; business leadership; parking validation system; art activities; clear signage for parking; future decision making objectives; combined effort; cooperative marketing; community involvement; zoning options; growth controls; and long range planning. 02 - 1 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, DUNE 6, 2002 Councilmember Lambert asked about the recommendation to extend the light rail loop from 400 South to 700 South along 400 West. Mr. Weeks said staff felt the extension would link that area to downtown and encourage housing and commercial development in the Granary District and West Temple Gateway project areas. He said delays could occur because the Utah Department of Transportation was reluctant to use 400 South. Councilmember Saxton said the loop was in the original design and felt additional public transportation on the route would allow the City to monitor development potential. She asked about decisions and implementation needed for the re-design of Main Street. Mr. Weeks said according to the Thomas Consultant study, implementation should have begun in 2000 with completion in 2011. He said the study mainly dealt with redoing storefronts on the northern portion of Main Street. Councilmember Lambert asked about the recommendation to build a new public safety building and use the existing site for housing. Mr. Weeks said he felt the proposed housing would be compatible. Councilmember Lambert asked how many units and what population would be served by the development. Mr. Weeks said a 12-story building was acceptable. Ms. Jardine said 60 to 70 units were anticipated and would be available to a full market range. Councilmember Lambert asked if the idea had been discussed with the Redevelopment Agency (RDA) . Mr. Weeks said no. Cindy Gust-Jenson said the RDA and the Administration wanted to work with the Council to review data and input which had been received on the Olympic proposal. She said information could be prioritized to help the drafting committee. Councilmember Saxton said specific housing possibilities in the downtown area needed to be identified. Councilmember Christensen asked Council Members to contact Ms. Gust-Jenson if they wanted to serve on the drafting committee. He said information prepared by the committee would be reviewed by the Council and forwarded to the Administration for feedback. #3. HOLD A DISCUSSION ON UNRESOLVED BUDGET ISSUES. View Attachment Michael Sears, Janice Jardine, Russell Weeks, Gary Mumford, Jerry Burton, and Rick Graham briefed the Council with the attached handout. The Council discussed the following proposed legislative intent statements: Statement No. 1: Funding of compensation liability. Councilmember Lambert said he wanted to know when liabilities were projected to occur before establishing a reserve. He said if the amount was the same every year, he did not see a need for a reserve. Ms. Gust-Jenson said the statement would be revised to include Councilmember Lambert' s concern. Councilmember Saxton said decisions needed to be made with policy guidelines in mind. She said if Council Members did not agree with existing policies, changes should be made. Councilmember Christensen said the Council should review the policies prior to the next budget cycle. Statement No. 2: Retirement payouts. No objections. Statement No. 3: Overtime within the Police Department. Ms. Gust-Jenson said several positions could be added to the staffing proposal. She said the additional positions would allow more officers to be trained which would help address the ongoing vacancy problem. Councilmember Lambert asked what percent benefits were of total salaries. Mr. 02 - 2 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, DUNE 6, 2002 Burton said approximately 40%. He said hourly overtime rates compared to regular salaries with benefits, were almost the same. Councilmember Lambert asked if the City would actually save money by increasing the number of officers in order to reduce overtime. Ms. Gust-Jenson said additional work was needed to determine any savings. Councilmember Christensen asked how many officers the department was down. Mr. Burton said approximately 20. Councilmember Christensen said he felt the gap was too large to fill with overtime. He said he was concerned about other lost benefits with lack of police presence in the community. Ms. Gust-Jenson said they would continue to work with the Administration and come back to the Council. Statement No. 4: Overtime within the Fire Department. No objections. Statement No. 5: Parking meter collection. No objections. Statement No. 6: Volunteers. Councilmember Saxton suggested using retired personnel for seasonal positions. Statement No. 7: Process service. No objections. Statement No. 8: Grant writing team. Councilmember Saxton said she wanted to know why the transfer was not made last year. She said she also wanted to know the number of grants made by each writer and how many were successful per writer. Statement No. 9: Grant monitoring. Ms. Gust-Jenson said a request by Councilmember Saxton had been given to the Administration regarding the number of grants received and how the funds were spent. Statement No. 10: Economic development promotion. Councilmember Lambert said the Downtown Alliance needed to be added to the list. Councilmember Love said she wanted to know how organizations worked together and how they were staffed. Mr. Sears asked if the Council wanted to include the funding formula. The Council was in favor. Statement No. 11: Impacts of special events. Ms. Gust-Jenson said staff needed to work with the Administration concerning the collection of fees. She asked if the Council wanted to increase fees. Councilmember Love said she did not want to discourage events by imposing stricter guidelines. She said she wanted to know what was currently being collected in fees. Councilmember Saxton said she did not want the City to provide free police coverage for events. She said more information was needed about the process. Councilmember Christensen said applicants needed to know what City services were available for events. Council Members were in favor of getting more information. Ms. Gust-Jenson said some organizations were willing to pay but the policy was not clear enough for the City to bill them. Councilmember Christensen said the provision needed to be corrected. Statement No. 12: Speed boards. No objections. Statement No. 13: Privatization of the City' s Impound Lot operations. No objections. Statement No. 14: Youth programs. Council Members wanted to defer this item pending more information. Statement No. 15: Engineering costs. No objections. 02 - 3 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, DUNE 6, 2002 Discussion was held on other budget issues. Councilmember Turner said he did not want to outsource the Impound Lot. He said employees prepared a proposal showing cutbacks and increases. He said the operation provided a service to residents and he felt if the operation ran more efficiently, rates could be raised. He said one component of the Fleet Management audit dealt with the competitive bid process for outsourcing City functions. He said he felt the audit would provide direction for addressing the Impound Lot issue. Councilmember Christensen said he understood money was available to keep the Impound Lot for several months. Mr. Sears said funding was available until the end of September, 2002. Councilmember Love asked if a rate increase would increase costs to other departments. Mr. Sears said the employee' s proposal had been given to the Administration. He said Council staff had not verified the information. Councilmember Christensen asked if the Administration had looked at the information. Mr. Graham said they had not had a chance to analysis the numbers. Councilmember Love asked if the $126,000 could not be saved through the competitive bid process, would the decision to outsource the operation be reconsidered. Mr. Graham said if the bid process did not meet the City's expectations, the Council would have to revisit the issue. Councilmember Lambert said he was concerned because other government entities did not operate impound lots. He said the information in the handout needed to be verified. Councilmember Saxton said the City had a responsibility to provide an impound service to the public. She said she was concerned about increasing costs to the taxpayers who used the service. She said employees would have an opportunity to move into other City positions if the Impound Lot was outsourced. She said the employees also had an opportunity to bid on the Request for Proposal (RFP) . Mr. Sears said the RFP allowed employees to continue their employment for one year from the time the contract went out. He said the Administration was exploring other options. Councilmember Love said she felt the decision for not operating an impound lot was a policy decision, not a budget issue. Council Members were in favor of outsourcing the Impound Lot. #4. HOLD A FOLLOW-UP DISCUSSION REGARDING THE PROPOSED USE OF PIONEER PARK AS AN OLYMPIC CULTURAL CENTER. View Attachment Michael Sears briefed the Council with the attached handout. Ms. Gust-Jenson said questions were raised regarding long-term maintenance, site selection criteria, gift restrictions, other possible sites, and who would be allowed to participate or host events. Councilmember Love said she wanted information on how theme park entrances would look, what they would take away from the park, and how they would be programmed. Councilmember Saxton said she understood fencing was planned for paid events. She said fencing or gating would have a large impact and wanted to know what was being proposed. She said she attended community meetings where suggestions for alternate locations had been presented. She said more time was needed to solicit input and ideas from the public. Councilmember Turner said he felt long-term maintenance would be easier if events were programmed properly. He said he thought there would be enough profit to cover ongoing maintenance costs. He said permanent restroom facilities needed to be included in the proposal. He said the historical aspect of Pioneer Park also needed to be considered. He said a large piece of property was needed to accommodate the proposal and he was open to any location close to downtown. He said he wanted an additional park but until 02 - 4 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, JUNE 6, 2002 a new location was found, the City would continue to look at Pioneer Park. Ms. Gust-Jenson said Councilmember Turner's idea regarding maintenance costs being covered by profit, needed to be analyzed and would be added to the list of questions. Councilmember Christensen said a set amount was currently being spent and asked how that factored into the proposal. Councilmember Love said she wanted to know from an operational standpoint, how many events per year were needed to break even. Councilmember Lambert said criteria for selecting a site needed to be clearly defined so the public understood which locations would work. He said homeless issues also needed to be addressed and explained to the public. Councilmember Love said she wanted feedback from the Administration on whether or not there was a market for the proposal outside of downtown. Mayor Anderson said he wanted a list of the questions being asked so the Administration could address them. Councilmember Lambert suggested establishing a small year round Olympic museum on Main Street where the public could look at memorabilia and relive Olympic events. He said this would be in addition to the Pioneer Park proposal. Councilmember Christensen said an additional meeting could be scheduled in June to further address the issue and consider legislative action. The meeting adjourned at 7:43 p.m. sc 02 - 5 MAIN STREET REVITALIZATION 1 of 10 POLICY ISSUES Pobc O lions Ness ofPoteict Responsibility d Pdtenfia!Steps for Potential Steps for ?*',.w. e Y P Budget Implications Com3n�nts _ .': ''Conflict ora6on Cooncil _ftCAc ., e ` Opportunities .. _ t, ., In , tom nq P 4-e0 t The Central Business District is the Doesn't have direct impact on the City's TC,SCP,RDT,DTP,GWP,EDP City's commercial core. expenditure budget. 2 Districts surrounding the CBD Doesn't have direct impact on the City's TC,SCP,RDT,DTP,GWP,EDP complement its centrality, expenditure budget. 3 Existing anchors should be linked Infrastructure improvements may be TC,SCP,RDT,DTP together. needed. 4 Anchors are needed in the south end of Infrastructure improvements may be TC,SCP,RDT,DTP the CBD. needed. An art museum/cultural complex is Land acquisition costs,infrastructure TC,SCP,RDT,DTP 5 needed. improvements may be needed. Streets should be pedestrian-oriented, Capital and RDA Funds may need to 6 particularly Main Street.. be used as streets are reconfigured TC,SCP,RDT,DTP and reconstructed. Downtown should have unique retail Doesn't have direct impact on the City's TC,RDT,DTP 7 businesses not found In regional malls. expenditure budget. B Downtown should have a balance of Appropriate public safety staffing will TC,ROT,DTP day and night activities, need to be budgeted. g Housing should be encouraged in and Utility capacity improvements may be TC,RDT,DTP,GWP,EDP around Downtown, needed. Parking for shoppers should be Imp lementation of a Parkiny Authority, — provided or promoted. TC,RD7,DTP 70 partnership or program may require capital or on-going expenditures. t_ rPIT t Support the common policy May require Opportunity to Doesn't have direct impact on the City's Help implement Help implement With the exception of Item 5,this option appears to be the general direction the City has taken, options/themes refinement or updating collaborate with all expenditure budget. recommendations in recommendations in including implementation of the Thomas Consultants study,and Towards a Walkable Downtown of existing policies, interested groups. earlier studies, earlier studies, plan.Issues may need refinement. particularly one by particularly Thomas Thomas Consultants. Consultants. Determine a new direction for the future May require a Opportunity to City may fund additional study. Voice support for new Help pay for new A major question the City Council would have to determine is:Were previous studies' 2 of Downtown. rethinking of all collaborate with all study of Central study 4 necessary. recommendations based on physical,historical,cultural and economic realities,or did succeeding policies. interested groups. Business District's role studies feed off previous ones? in the City. MAIN STREET REVITALIZATION 2 of 10 POLICY ISSUES �PbbIioIPrfvate, .. eY -PO o fi AreasofPof iba1, esponsrbtyrty6; `s*' Po 'flat Steps for Potential Steps for : �' 8utlgetlmpllcabons+� ,,.° -� -Pobcy Confl(eY' ColtaboraHon - �- CauncN � `.� s �, > - •„-• � w OpportLnTHes - _ _ -- *11 m> Define leadership for economic Work with Downtown Doesn't have direct impact on the City's State preference for The Downtown Alliance is attempting to establish a process for economic development that would development. Alliance,Downtown expenditure budget.City may allocate kind of leadership in include organizations and property owners involved in the Downtown.One idea is to empower one Merchants funding for staff to participate in a economic person with the authority to initiate and promote economic development.Another idea is to Association,Chamber committee or roundtable. development issues. establish a"blue-ribbon"committee to present ideas to City political leaders.One issue Is:Should of Commerce,Utah downtown economic development be guided by a single person or should it involve a more 3 Economic collective group? Development Corporation, Administration,County and State. Downtown parking:Validation,Parking Garages or lots may Downtown Alliance Implementation of a Parking Authority, Potential CIP RDA Strategic Plan The Downtown Alliance appears close to starting a uniform parking validation program.However,a Garages or Parking Lots? conflict with private partnership or program may require allocation. for CBD calls for few issues still need to be worked out.The Alliance may request the use of some RDA funds.The enterprise. capital or on-going expenditures. support of uniform RDA Strategic Plan says that the RDA will work with owners to help create a uniform validation validation system. program but not provide ongoing costs.The 1988 R/UDAT study calls for exploring creating a 4 Some funds also parking authority to build public parking downtown.The Administration has created free public allocated for public parking on 300 South Street and has proposed acquiring surface parking lots near light rail stations. parking levels on future parking structure. Commuter Rail and light rail transit Utah Transit Authority.The City does not contribute to the Potential CIP Potential RDA The current Wasatch Front Regional Council long-range transportation plan calls for the Airport to Wasatch Front operation or funding of mass transit. allocations. Allocations University light rail line—including the downtown loop—to be constructed between the years 2020 Regional Council,Salt The City may participate with to 2030.One issue is:Should Salt Lake City seek to have the line finished before the time 5 Lake County Council agreements and easements,etc. scheduled in the long-range transportation plan? of Govemments,Utah League of Cities& Towns Major Anchors/In-till Development Private Property Doesn't have direct impact on the City's Potential CIP Potential RDA The major studies and plans call for developing or attracting a major anchor In the southem Owners,Developers General Fund budget but may require allocations. Allocations downtown.However,the studies and others have noted that downtown has several successful 6 Capital or RDA funds. anchors but few ways of linking the anchors to each other.One issue is:Should the City concentrate on developing links—including in-fill development—to existing anchors,or develop or attract an anchor located in the southem downtown? Developing Housing In and Around Private Property The City may wish to use housing or Potential revisions to Potential RDA Previous studies have emphasized the need for housing in and around the downtown to provide a Downtown Owners,Developers, RDA funds to construct housing zoning ordinance. Allocations stable resident population.The baseline study of the CBD for the Downtown Alliance says there are Housing Agencies, projects. Potential CIP 3,300 housing units in the CBD.(However,the figures include housing on 300 East.)One-third of Administration allocations. the units were built in the 1990s,according to the study.The Gateway Master Plan calls for a population of 13,000 in the next 50 years.The East Downtown Neighborhood Plan calls for 7 construction of medium to high density housing between 200 East and 700 East.The 1988 R/UDAT study called for the preparation of an inventory of potential sites for medium-to high-density housing.Three items the City Council may wish to consider are:1.)Has a housing site inventory. been done?2.)Given downtown land prices,should greater emphasis be placed on developing housing east and west of downtown?3.)How effective has been the mixed-use zone in the East Downtown to foster housing? MAIN STREET REVITALIZATION 3 of 10 POLICY ISSUES F r" VA` '- , 'Publ c?vale '1 _ ollc O bons s„ - Areas of Potential; Responsiltdity,d- -,, otenba!steps fors* _r -. 1 p ;� _Y P Budget lm flcatloiu" p P Potentia steps for ^sue. 7, r ` ` �- . �? r� � Policy Conflict Collaboration 8 p, Council � `�� � Comme� r 'i Opportunities - _ ,, e a?. t. Housing versus Infrastructure Infrastructure or utility capacity Potential CIP Potential RDA An RDA report in February 2000 that resulted from a series of meetings about fostering housing improvements may be needed. allocations. Allocations downtown said focus groups involved in the meetings"were quite vocal about the downtown area lacking residential services and the ambience necessary to encourage either investment in or purchase of downtown housing."The report went on to say that the focus groups"suggested 8 providing such infrastructure was a proper way for the public sector to involve itself in encouraging downtown housing."The report ultimately led to the writing of Towards a Walkable Downtown.One issue is:Should the development of infrastructure such as medians and trees on streets in the CBD be emphasized more than subsidizing housing development downtown? Main Street Manager Is this an appropriate Opportunity to If the City hires a Main Street manager Policy discussion The Main Street program is designed to be a comprehensive commitment to address the full scope role for government? collaborate with the it would probably require executive involving management of issues associated with downtown revitalization through a four-point approach that consists of:1) Is hiring a Main Street business community, level pay and benefits. of Main Street. Organization-building community consensus and cooperation in the revitalization process,2) 9 manager placing the Downtown Alliance Design-enhancing the physical appearance of the business district,3)Promotion-marketing the importance of one and Salt Lake Area business district's assets,4)Economic Restructuring-strengthening and expanding the business area of the City over Chamber of district's economic base.A Main Street manager could focus on smell,local business retention and another? Commerce. recruitment and a continuous,comprehensive public relations program that would emphasize the downtown. The ideas that follow have varying degrees of difficulty to implement.They • OI j_ are listed in no particular order. o s Move the light rail downtown loop to Airport to University Doesn't have direct impact on the City's This would involve moving the southem edge of the planned downtown loop from 400 South to 700 700 South. EIS,Downtown General Fund budget but may impact South.The loop would then be South Temple,Main Street,700 South and 400 West.Two goals for Master Plan Captial and Utliity funds. the original loop were:1.)To provide UTA with a loop to stage light rail trains as use of light rail grows.2.)The economic development of the Central Business District by linking Main Street to the 650-acre Gateway area.Reasons not to lengthen the loop:1.)A larger loop may not meet UTA's 1 needs.2.)The west edge of the loop on 400 West would cross 600 South,500 South and 400 South.3.)0 concentration of activity in the CBD is a goal,the longer loop could pull development further south.Reasons for extending the loop:1.)Long-term(50 to 75 years)a larger CBD may be necessary.2.)The Utah Department of Transportation opposed the placement of light rail on 400 South and may oppose completing the loop on 400 South.3.)If a goal is economic development,a longer loop would run almost the entire length of the Granary and Depot District RDA project areas. Build new Public Safety Building on Housing Agencies, The Capital Improvement Fund of the The existing Public Safety Building is at or near the end of its useful life.The City owns property on 600 South and sell existing site for Developers City would be expensed for this project. 600 South Street where a new Public Safety Building could be built.The existing building sits on 2.3 2 housing. Project may be debt financed or paid acres on 300 East—one of the main residential streets near downtown.The site is within a half from available pay-as-you-go block of a grocery store and next to banks,dry cleaners,cafes and other neighborhood amenities. allocations. A parcel 2.3 acres large could allow a signature residential development within walking distance of the CBD. Permanently locate the Utah Arts Administration,Utah Special Event Costs The 1988 R/UDAT study"strongly recommends that the Utah Arts Festival occur on Main Street or Festival on Main Street Arts Council State Street."The study recommended the festival locate there because of its potential"stimulus to downtown merchants.The festival will be held at Gallivan Center this year.If the festival is 3 successful,it may be worth considering keeping it there and letting events flow onto Main Street. Careful planning could allow light rail to continue to operate during the festival.Other proposed future locations may be too far from Main Street to draw people to Main Street. MAIN STREET REVITALIZATION POLICY ISSUES 4 of 10 ' 'r + : ` "e 4orrHie-t!h ns(atnoyn - p - Council RDA ' Commenst-asofpotenfial Potential Steps for Potential Stepsfor s "' 3ik l v'PolicyOpion Pojcy ` Bud9etlmPticaHMs ' , OpportutUes _ The ideas that follow have varying degrees of difficulty to implement.They v " Ka ,n,;s t t t p ltd`are listed in no particular order. Qw,nt wh sm' • Build art museunVarts complex on the Private property Opportunity to Doesn't have direct impact on the City's Potential RDA Four studies—the Second Century Plan,the R/UDAT study,the Downtown Master Plan,the southwest corner of Main Street and rights. collaborate with expenditure budget unless the complex allocations. Thomas Consultants study—have called for development of an art museum or"anchor 400 South. property owner, is to be City owned.Infrastructure or entertainment"building downtown.The Thomas Consultants study recommended that such a University of Utah, capacity improvements would need to structure be built on the southwest corner of the 400 South and Main Street interesection(Block Salt Lake County, be made regardless of the final use. 40).The block's owner has plans to develop the block,but no firm timetable for development.In the 4 Utah Arts Council, past,the owner has declined to allow a new federal courthouse to be built on the southwest corner of the intersection in part because a courthouse would hinder future development plans.However, an art museum/cultural complex might be a permanent addition to the downtown that would enhance the block's future development and be the kind of land use that would blend with the property owner's future plans.Locating a museum/cultural complex there probably would require a great deal of cooperation among the City,the landowner,the county and the state. Participate where possible in an Free market decision. Opportunity to Doesn't have direct impact on the City's Although there have been several attempts to market downtown Salt Lake City as a whole,the intensified,sustained marketing of the Should City collaborate with the expenditure budget unless the policy Downtown Alliance's telephone surveyindicates that downtown P e's people"dislike"the apparent lack ofparking government market business community, decision was made to fund marketing and traffic and congestion.Yet,the Downtown Alliance's baseline study indicates that there are one area of the City Downtown Alliance on an on-going or one-time basis. 35,900 parking spaces within the study area.(Page 5.)Other comments raised Ina variety of over another? and Satt Lake Area discussions about downtown have included that the downtown does not have retail unique enough Chamber of to warrant traveling to the downtown.Yet,the Downtown Alliance's baseline study said that the Commerce. main strength of the downtown is"the number of retail choices."The seeming contradictions point to a need fora marketing campaign more intense and more sustained than previous attempts.A potential marketing campaign might be two-pronged.One part of the campaign might be a long- s term goal of"branding"the downtown and establishing a profile of downtown to use to market to developers and retailers who have not yet located in downtown Salt Lake City.The other part of the campaign might involve marketing the downtown to people in Salt Lake County and regionally. According to the Downtown Alliance's telephone survey,36 percent of the people in Salt Lake County check daily newspapers when planning for entertainment,dining or shopping.Another 13 percent get their information from television or radio.Given that the survey also Indicates that 65 percent of Salt Lake County residents visit downtown Salt Lake City no more than every two weeks, a newspaper,television and radio marketing campaign appears to be warranted.Developing and paying for such a campaign appears to be something the business community might want to undertake.Government's role may be limited to promoting the campaign's message wherever it can. MAIN STREET REVITALIZATION 5 of 10 POLICY ISSUES ee: r ';ta ;.,�, Public/Private - '2, _ 'to r `•.° -4* - h ,. ', ,r, , PolicyO dons - Areas of Potential. Responsibi ity d - 'Po hbat5teps for Po Nat St' for I i P qi Potic Conflicf ,'5,...eon Budget lmplicafions s k - .1-,Comments - -` -t y � - Cound! RDA a * Opportunities . Encourage public events Both Doesn't have direct impact on the City's Allocate non- Examine policy for Consider public/private partnerships to host public recreation,cultural and entertainment events. expenditure budget unless the policy departmental/grant using tax increment Coordinated approach with target audiences to locate activities or events in specific areas. 1 decision was made to fund marketing funding to subsidize financing for non- on an on-going or one-time basis. public events capital expenditures Coordination of events plan Is this the appropnate Both Doesn't have direct impact on the City's Hire full-time program Have a centralized body or person responsible for coordination of public events.All participants, 2 role of government? expenditure budget. manager for all public public and pdvate would participate in the coordination activities. spaces Vacant space utilization Private property Both Doesn't have direct impact on the City's Direct Administration Offer incentives to Consider sponsorship of gallery or other minimal impact programs to fill vacant storefronts. rights:is this the expenditure budget. to develop temporary Landowners to Consider fines or fees for vacant buildings. 3 appropriate role of vacant space leasing upgrade vacant space govemment or an program outside agency? Encourage additional historic Both Doesn't have direct impact on the City's Support existing Support the existing Expand marketing and public information campaigns about historic structures and availability of preservation expenditure budget.Additional funding programs 9 programs preservation programs. Recreation, q for historic preservation will be required Cultural and if the City wishes to initiate or Entertainment participate in actual preservation. Retain existing historic resources in the Both Doesn't have direct impact on the City's Support existing Support existing Encourage historic building usage that complements future development and maintains original downtown expenditure budget.Additional funding programs programs intended uses. 5 for historic preservation will be required if the City wishes to initiate or participate in actual preservation. Consider options to locate the Olympic Potential conflict with Both Implementation of this project may Determine appropnate Develop Olympic related site that acts as a tourist draw and development anchor. Legacy park in the downtown area existing master plans require capital or on-going site and funding 6 and zoning depending expenditures. mechanism on location Determine appropriate recreational, Is this the appropriate Both Doesn't have direct impact on the City's Support Thomas Support Thomas Establish a task force or joint partnership to determine appropriate mix and possible expansion T cultural and entertainment mix role of govemment or expenditure budget. Consultants study Consultants study areas. an outside agency? recommendations recommendations Coordination of events plan Is coordination the Both Doesn't have direct impact on the City's Hire full-time program Have a centralized body or person responsible for coordination of public events.All participants, 1 role of govemment or expenditure budget. manager for all public public and private would participate in the coordination activities. an outside agency? spaces Develop comprehensive parking None Both(i.e.parking Implementation of a parking authority, Wait to see if uniform Provide additional parking to support downtown,coordinate the available parking into an strategies authorty and signage)partnership or program may require validation system is understandable payment system. 2 capital or on-going expenditures. successful,if not, Publicity explore creation of parking authority Create centralized economic resources Is this the appropriate Both(i.e. Doesn't have direct impact on the City's Determine appropnate Provide information for the creation of a comprehensive directory and information campaign.Allow role of government or comprehensive expenditure budget. benchmark measures the use of City resources for contact and information dissemination. an outside agency? directory,public and monitor existing 3 relations campaign, initiatives against point of contact.) measures • • • • MAIN STREET REVITALIZATION 6 of 10 POLICY ISSUES . q' Public/Private,`x p:Poyiey Options'. Areas ofPotental :Responsibdity& PotenbatSteps for Patents/Steps for.$`, � Poiicy Conflict -collaf-ration Budget lmpbcafions •Council; RDA Co�nmeMs #- '" - • e foaf(PD Icy a�e ,n Implement existing development Information may be Both Implementation of a programs,projects Support Use existing plans and reports such as the Thomas Consultants report.Take steps to implement studies outdated;parameters and partnerships may require capital or recommendations in strategies have changed. vnandtaction steps.Build upon existing strengths such as existing retail and office,TR4X, 9 on-going expenditures. previous studies Gallivan Center,etc. including Thomas t Consultants study and request quarterly report from Administration, Downtown Alliance and Chamber of Commerce Create centralized economic resources Is this the appropriate Both(i.e. Doesn't have direct impact on the City's Determine appropriate Provide information for the creation of a comprehensive directory,information campaign.Allow the role of government or comprehensive expenditure budget. benchmark measures use of City resources for contact and information dissemination.Time fora well-defined action outside agency? directory,public and monitor existin 2 relations campaign, initiatives a ainst g or adde with measurable benchmarks that ensue the action can be continued,modified,eliminated point of contact.) measures g or added to. Provide long-term economic incentives Should cities be Both Incentives could be financed from the Enhance business Focus on long-term diversified economic growth,include infusion of capital in office,residential, subsidizing private delay in collection of revenue from the loan programs, cultural and transportation infrastructure,provide more entrepreneurial and social opportunities, development? proposed project. request cost benefit offer tax credits,low interest loans,low lease rates,etc.City has a limited budget and a limited analysis to determine number of options to intervene in the market place. appropriate incentive levels.There is a question as to who is in charge of recruiting businesses,who is that person working with and if there is a plan in place to recruit 3 businesses to Salt Lake City.The Council may wish to request a briefing from the Administration on the existence and development of a business recruitment Economic plan that can be Development adopted as a policy document. MAIN STREET REVITALIZATION 7 of 10 POLICY ISSUES ` S Pubti4Private s rr,. '. 'k , Policy Options a Areas of Potential Responsibility& Budget imp cations Poten�alStepsfor P0�Ya1Stops for !T-* ,g^� .: -„ Polcy Conukt Collaboration ,'Coundl -Riot ` �' Cp,Rlmenls`" j " Oppoftunittes , t ; Establish maximum densities Limits development Both Doesn't have direct impact on the City's Explore establishing Assess what type of downtown is necessary.Who goes downtown and for what purpose?What expenditure budget. density maximums as activities or facilities would attract people who live and/or work in the outlying communities to come a type of non- back downtown at night or on the weekend?We need to understand the demographics of various q monetary incentive groups and create marketing strategies to attract them to different retail,commercial,financial, recreational,residential or institutional facilities.Plan intelligently and pursue prudent economic development policy for the future of downtown and Main Street. Encourage more jobs to be located in the downtown core,as well as residential units,to create more potential customers,pedestrian traffic and street life. Re-evaluate growth policy including Role of government to Both Doesn't have direct impact on the City's Meet with Governor to Consider what other cities have done,such as Saint Paul,MN(ordinance requiring property owners revitalization and business strategies determine strategies expenditure budget. discuss Salt Lake to pay for vacant buildings),Chicago,IL(vacant building ordinance),Alameda,CA(boarded g of the market City's role in future building and vacant parcel monitoring fee),Stockton,CA(offers downtown economic incentives growth of State such as enterprise zone facade improvement loans,employee recruitment assistance&training, fast-track permitting for downtown projects,hiring credits,reduced sewer hook-up fees for restaurants) Develop updated action items based on City Doesn't have direct impact on the City's Direct Administration Merge action items Establish a well-defined action agenda with measurable benchmarks to ensure progress.Aim for current plans and establish measurable expenditure budget. to develop updated and measures with long-term results. Determine what should happen first and prioritize what is most important. benchmarks action item list and RDA policies benchmark measure Economic development is a fluid and changing process.The overall consensus is:1)downtown is and consider doing fairly well overall 2)need to continue to develop contingencies and what if scenarios 3)focus adopting. on core values and core assets. The Council may wish g to request a briefing Identify common themes,assess economic development tools and their limitations,need core from the leadership to assume ownership of the long-term process. Administration on the existence and development of a business recruitment plan that can be adopted as a policy document. Evaluate future employment Both Doesn't have direct impact on the City's Request biannual Focus on long-term,diversified,Locally responsible economic growth.Need sound business 7 opportunities and potential for new expenditure budget. report on recruitment strategies and long-range planning for Downtown,not quick decisions. industry recruitment and additional job of Public and Private creation enterprises Establish maximum densities Limits development Both Doesn't have direct impact on the City's Explore establishing Assess what type of downtown is necessary.Who goes downtown and for what purpose?What expenditure budget, density maximums as activities or facilities would attract people who live and/or work in the outlying communities to come a type of non- back downtown at night or on the weekend?We need to understand the demographics of various Growth 1 monetary incentive groups and create marketing strategies to attract them to different retail,commercial,financial, recreational,residential or institutional facilities.Plan intelligently and pursue prudent economic development policy for the future of downtown and Main Street. Encourage more jobs to be located in the downtown core,as well as residential units,to create more potential customers,pedestrian traffic and street life. MAIN STREET REVITALIZATION B of 10 POLICY ISSUES � . PWicy Options `` reas ofPotenflaf Respon bilk/8 Bud et Im beatfons t?nbel Steps for PtitenGafj Steps for 1 „$"' ki -- �. � z ZPoflcy Conflict Oiororabon 9 p ,CoLncif C4'' p �. . iQortunRles _ _,. .. a , dit olft y `. Ras_'-fir Provide long-term economic incentives Should cities be Both Incentives could be financed from the Enhance business Stockton,CA offers downtown economic incentives such as enterprise zone facade improvement subsidizing private delay in collection of revenue from the loan programs, loans,employee recruitment assistance and training,fast-track permitting for downtown projects, development? proposed project. request cost benefit hiring credits,and reduced sewer hookup fees for restaurants. t analysis to determine appropriate incentive levels Reevaluate infrastructure capacity Why should existing Public only -Doesn't have direct impact on the City's Support existing Identify what aspects of the public infrastructure need to be revised,upgraded or replaced. 2 consistent with growth policy users have to pay for expenditure budget.Resulting capital master Plans including Additional water and sewer capacity may be needed to encourage housing and hotels.Some areas future development? plans will fund improvements. Public Utilities are lacking curb and gutter.Publicly provided or publicly managed parking may be needed to support nightlife and retail. Increase transportation systems, Traffic lights,closing Public only Doesn't have direct impact on the City's Support airport to Develop intermodal hub.Need TRAX route to the airport from downtown.Extend light rail lines to mobility,efficiency and utilization streets expenditure budget Resulting capital Downtown Light Rail Ogden,South Jordan and West Valley City sooner rather than later.Extend Sandy line to Lehi,not Infrastructure plans will fund improvements,although Line forward on just to Draper. the funding of mass transit is the City's WFRC Transportation responsibility. Plan.Request that the Administration 3 provide a cost benefit analysis of closing area of Main Street for pedestrian and entertainment purposes Update downtown beautification plan Doesn't have direct impact on the City's Explore partnership Continue to support Need more greenery downtown. 4 (ie trees,shrubbery,landscaping,and expenditure budget. possibilities with implementation ad) landowners Toward a Walkable Downtown study Re-evaluate housing and building code Public health and Public only Doesn't have direct impact on the City's Request the consider subsidies for To encourage renovation of historic buildings,eliminate or downgrade building code requirements requirements(seismic) safety plus potential expenditure budget. Administration to seismic improvements for seismic requirements for older buildings. t costs for change of examine changes to use the current housing Housing and building code requirements Provide a broad mix of housing types Is this the appropriate Both The City may wish to use housing or Review existing Review existing Encourage new housing in the downtown area and at Gateway,including affordable student 2 for all income levels role of govemment or RDA funds to construct housing policies policies housing.Encourage housing developments downtown with creative housing designs and outside agency? projects. marketing strategies. MAIN STREET REVITALIZATION 9 of 10 POLICY ISSUES 'z - PublldPrivate , Parcy Options AreasofPotential Responsibility& ' Budget lmplicatxons PotenOaf Steps For Potential Steps far PollcyconNict • Collaboration :`f Cpunhl '; i, RDAs x - Comments At Joildl Po/1 - is laisn P..- 040,, i _ Vacant space utilization Private property Both Doesn't have direct impact on the City's Request that the Offer incentives to Consider ideas such as St.Paul,MN(ordinance requiring property owners to pay for vacant rights:Is this the role expenditure budget. Administration Landowners to buildings),or Alameda,CA(boarded building and vacant parcel monitoring fees). 1 of govt.or groups like develop a temporary upgrade vacant space Retail Sales and Downtown Alliance? vacant space leasing Service program Determine appropriate retail mix Government Both Doesn't have direct impact on the City's Support Quantify the real problem:Is it the number of store vacancies or office vacancies on Main Street? interference in free p Are the malls suffering,have sales been decreasing for stores and restaurants located outside the 2 expenditure budget. implementation of market Thomas Consultants malls? study Determine appropriate office/business Is this the appropriate Both Doesn't have direct impact on the City's Support recruitment of Bringsmall businesses back to Main Street.Attract boutique shops to upper end of Main Street. mix role of government or 9 expenditure budget. corporate Focus recruitment on out of state retail.Try something more upscale on Main Street such as an outside agency? headquarters from Neiman Marcus,Saks or Bloomingdale's.Retail uses for Main Street should include predominantly outside of Utah restaurants,clubs and entertainment facilities. Retail should also include groceries,hardware,drug Office,Business stores,bakeries,electronics stores,bars,clubs,video rental,etc. and related uses While the rest of the local market on Main Street will continue to decline over time,the tourist market will continue to grow;yet neither the malls nor other retail shops are really marketing to tourists.Retail should include a unique and special shopping experience during tourists vacations. Create appropriate mix of Both Doesn't have direct impact on the City's Support presence of Create an education/training and humanitarian center downtown. Possible resources include:DSW Institutional t educational/institutional and other expenditure budget. university campuses Partners,Campus Pipeline,Bonneville Corporation,LDS Church Missionary Training Center,BVU governmental facilities downtown Continuing Education and Independent Studies Program and Utah Valley State College. Create and encourage pedestrian Both Doesn't have direct impact on the City's Support Support Need bus access to Main Street,or some alternative.Advertise free fare zone downtown.Need linkages throughout the downtown expenditure budget.Resulting capital implementation of implementation of shuttle buses. plans will fund infrastructure Towards a Walkable Towards a Walkable improvements. Downtown study, Downtown study, Pedestrian 1 Explore cost beneft Explore cost benefit analysis of the analysis of the installation of more installation of more green medians in green medians in downtown and east downtown and east downtown area downtown area Develop comprehensive parking None Both(i.e.parking Implementation of a parking authority, Wait to nee if uniform Create integrated parking plan;coordinate the use of all parking lots with consistent pricing and strategies authority and signage)partnership or program may require validation system is parking validations. Parking 1 capital or on-going expenditures. successful,if not, explore creation of parking authority MAIN STREET REVITALIZATION 10 of 10 POLICY ISSUES a ., d Public/Pflvate ` r ^- Areas of Potential Responsibility 6 ns t a. PoNcy Optlons ; a P Budget implications Potential Steps for Potential Steps torn Policy ConfiicY Cog56oretion Councii RDA ", Comiuerrts, a a t10gg Opportunities - ` R2 E Determine the appropriate Doesn't have direct impact on the City's Support airport to Develop the intermodal hub.Need bus access to Main Street.Need light-rail from the Airport to transportation mix expenditure budget. Downtown Light Rail downtown.Sup port mass transit.Need to accommodate cars downtown.Need shuttle buses. Line forward on WFRC Transportation Plan,Request the 1 Administration to provide a cost benefit analysis of closing Transportation area of Main Street for entertainment purposes Expand transit oriented development Both Doesn't have direct impact on the City's Explore expansion of Need transit oriented development. along transit corridor expenditure budget.Resulting capital expected of transit 2 plans will fund infrastructure oriented development improvements. ordinance Identify appropriate tourist/conference Is this government's Both Doesn't have direct impact on the City's Support continued The convention business is very competitive.If we can sell Salt Lake City to meeting planners,this mix. role? expenditure budget. expansion of the Salt will translate into 330,000 people coming to Utah and 250,000 people visiting Salt Lake City. Palace ConventionIncluding shopping,car rental and night life,this could translate into$200 million a 1 year. hotels,meals, Center in Salt Lake year. Miscellaneous City but retain the Salt Lake Arts Center in The convention center has already outgrown its capacity. Groups are turned away which in turn Downtown creates a lass of potential revenue for businesses and the City. Address mitigation of negative impacts Public only Doesn't have direct impact on the City's For downtown residents,noise must be limited in frequency,ending time and decibel level. 2 created by mixed use(i.e.noise issues) expenditure budget. Windows rattle,must use ear plugs to sleep.Ordinance must be enforced. Many residents downtown welcome outdoor entertainment.However,placement of bands and loud Attachment Number 4 summanzes how other cities address the policy concerns speakers can make a huge difference. e$ a contained in this matrix. MEMORANDUM DATE: May-28,2002 TO: City Council Members FROM: Russell Weeks,Janice Jardine,Sylvia Jones,Michael Sears,Lehua Weaver RE: City Council Discussion:Main Street and Downtown CC: Cindy Gust-Jenson,Rocky Fluhart,David Nimkin,Margaret Hunt, Gary Mumford,David Dobbins,Alison McFarlane,David Oka This memorandum is intended to provide an introduction to material compiled to further City Council discussion on the future of Main Street and Salt Lake City's downtown.The material includes: 1.)Matrices intended to identify policy issues related to the discussion. 2.) Policy issues raised during the City Council's April 25 public hearing on the downtown's future. 3.)A complete set of condensed remarks from the April 25 hearing sorted by category. The matrices include two categories titled Potential Steps for the City Council and Potential Steps for RDA. Comments in the two categories are intended as possibilities to generate discussion. The material also contains four attachments: 1. A list of Guiding Principles for Downtown Development adopted by the_Salt Lake Area Chamber of Commerce Board of Governors on May 21. 2. A telephone survey of Salt Lake County residents for The Downtown Alliance to gauge County residents'activities as they relate to the City's Downtown.The - survey was released May 21. 3. An"economic baseline study"titled Economic Change in Salt Lake City's Central Business District: 1990-2001.The Downtown Alliance released the study May 23. 4. Summaries of how other cities address policy concerns contained in the matrices. Council staff will address briefly some items raised in the Downtown Alliance's telephone survey and economic study in a later section of this memorandum. Staff also will attempt to flesh out two parts of the matrices because:One part contains ideas formulated by staff as ways in which the dynamic of the downtown might be changed.Another part contains staff's attempt to formulate comments by the public into policy issues.However,the memorandum first will address two future planned projects that will affect the downtown in the near-to mid-term. • A Government Services Administration representative confirmed May 23 that the GSA intends to build a federal courts complex west of the Frank Moss U.S District Courthouse for Utah. Kim Bailey of the GSA office in Denver said she had told representatives of the Utah Heritage Foundation of GSA's decision earlier this month.The project will include moving the Odd Fellows Hall to a vacant lot on Market Street. That building will be seismically retrofitted when it 1 is moved,and its facade will be restored,she said. The project also will leave the Shubrick Building intact.However,structures added to the building's original footprint will be removed,and businesses in the structures will be relocated or will close. Ms.Bailey said no designs have been made for the new court,but construction still is scheduled to start in 2006. • According to a news report,the federal Surface Transportation Board has approved Union Pacific's sale of part of its right of way to the Utah Transit Authority for a commuter rail line.The City Council is scheduled to set a date June 4 for a July 2 public hearing on issues related to the commuter rail line. The near-to mid-term future also probably will bring: 1.)Development of the eastern four acres of the Library Block. 2.)The location and development of an Olympic Legacy Park. 3.) The first phase of development of a multi-building residential complex on the block bordered by 300 South,600 East,400 South,and 500 Fast.4.)The possible development of a mixed-use project at 250 South 200 East. Downtown Alliance Survey and Study The telephone survey and baseline economic study commissioned by the Downtown Alliance appear to present paradoxes that might be explained in some respects by the boundaries of the study.The baseline study's boundaries are South Temple, 300 East,400 South and 500 West streets. Here are some key points of the economic study: • The economy within the study's boundaries is Utah's seventh largest local economy. "Only four counties and two cities—Salt Lake and Provo—have more employment and wages,"according to the study. (Page 5). • The estimated 4,500 residents within the boundaries make up a population larger than 149 of the state's 237 cities and towns.The study notes on Page 71 that only three of eight selected cities had downtown populations of more than 10,000 residents. • Office sector employment within the study's boundaries accounted for 80 percent of the job growth in the last decade.Restaurant employment and retail employment respectively accounted for 10 percent and 5 percent of job growth in the same period. • The study notes in several places that"entertainment"—professional basketball, symphonies,operas,ballet and other performing arts,restaurants and private social clubs —has seen sustained growth in the last decade and differentiates the Central Business District from other cities and towns and suburban retail centers. • The study notes on Page 32 that convention,tourism,and business travel may account for —at most— 15 percent of retail sales within the study area.According to the study, "The travel industry cannot be counted on to significantly change the level of retail sales in the CBD." • It also notes that if the current residents of the study area"had average income levels of $50,000 and made all of their expenditures in the CBD ... these expenditures would — 2 account for about 5 percent of total retail sales in downtown."(Page 32.)The study continues,"At the end of the day, retail revitalization will depend on increased spending by residents of Salt Lake City and suburban households in the CBD."(Page 32.) The latter statement appears to be the study's main paradox for a couple of reasons. First,the study appears to be one of the first that does not identify conventions and tourism as a major contributor to retail sales.The convention and tourism sector appears to help the CBD's economy through hotel bookings and perhaps restaurant revenue but not through purchases of retail goods. Second,although conventions,tourism and resident expenditures are identified as lesser contributors to retail sales,the study does not identify who is spending money on retail goods in the CBD.Third,even though the study notes that retail sales have fallen since 1996,it lists the "number of retail choices"as the main strength of the retail sector. (Page 32). (One minor note: In the study,Nordstrom sales are included in the apparel category,not in the department store category. [Pages 21 and 24]). In regard to the first item,the study may actually comport with a conclusion drawn from the Thomas Consultants study(and others)that the convention tourism sector is one to target to increase retail activity downtown. One way of looking at the Alliance study is that the convention tourism sector can be targeted because spending by tourists and people attending conventions is far from a point of saturation. In regard to the second item it should be noted that the Alliance study addresses only the residential population within the study's boundaries.The Thomas Consultants study identified the downtown's primary trade area as bordered by Interstate 215 on the West,the north and east corporate boundaries of Salt Lake City,and 3300 South Street on the south.The study and the writer,James A.Wood,recognize the importance of housing to the vitality of the downtown. When Mr.Wood presented the study on May 23 he identified the Lower Avenues and Capitol Hill as keys to the vitality of the Central Business District. The Alliance study also included apartments and condominiums on the west side of 300 East Street in its housing inventory.The 278 units on the west side of 300 East make up about 8.5 percent of the study's total housing inventory.Generally, 300 East Street has been identified in previous studies as part of the East Downtown support district.There are 18 apartment houses and condominium complexes on 300 East Street between South Temple and 400 South streets if one includes the east side of the street as well as the west side. The telephone survey released by the Downtown Alliance on May 21 indicated that 32 percent of the people surveyed countywide said they had visited the downtown"within the past week"for dining,shopping,or entertainment. Seventeen percent said they had visited the downtown for the same purpose within the previous two to three weeks of the time of the survey. (Page 5.)The survey also indicated that the top two downtown activities of the people surveyed were shopping and dining. (Page 7.)Given the survey's statistics,the Central Business District appears to draw people from beyond even the primary trade area identified in the Thomas Consultants study.It also appears to indicate that there is a large percentage of people in Salt Lake County that may be an untapped market. In regard to the third item,one of the Alliance study's main points is,"Although the retail trade sector,in teams of employment and wages,is not the largest sector in the CBD,it generally receives a disproportionate share of attention and is considered a principal indicator of economic -- conditions in any downtown area."(Page 20.)A subtext of the study might be:Retail is fairly • strong but can be improved,but other strengths of the Central Business District must be nurtured. • One final point.The Alliance study identified about 2 million square feet of leased retail space within the study area which includes the Gateway Associates' development.The Thomas Consultants'study identified 1.67 million square feet.of retail on Main Street from South Temple to 400 South Street including 1.28 million square feet within the Crossroads Plaza and ZCMI 'Center malls.For purposes of comparison,an April 2000 study titled Downtown Portland Retail Strategy identified 1.9 million square feet of retail space in the 17 blocks of its downtown"core." Portland has a total population of 529,121. Salt Lake City has a total population of 181,743. However,the Metropolitan Statistical Area(MSA)anchored by Portland contains 1.57 million people—roughly 46 percent of Oregon's 3.42 million residents.The Metropolitan Statistical Area that includes Salt Lake City contains 1.33 million people(Salt Lake,Davis and Weber counties)—roughly 60 percent of Utah's 2.33 million residents. If one combines the Provo-Orem Metropolitan Statistical Area's 368,536 residents,with the Salt Lake-Ogden MSA, the population figure climbs to 1.7 million people,a figure higher than the Portland-Vancouver, Washington MSA. One difference between Portland and Salt Lake City,then, appears to be Portland's concentration of residents within its boundaries versus the diffusion of residents within Salt Lake County.Even so,as potential markets to attract people to a downtown,the total populations in and surrounding Portland and Salt Lake City appear to be roughly equal. Five Things That Could Change Downtown's Dynamic This section is included because Council staff has placed a section in the matrices with the same title. Staff has included this section not to propound the ideas over others but to more fully explain them because the ideas are staff's attempt to think long-term and"outside the box." The ideas are presented in no particular order. Move the light rail downtown loop to 700 South The current Airport to University Environmental Impact Study for light rail calls for a downtown loop involving Main Street, South Temple,400 South and 400 West streets. Completion of the line including the loop is listed in the Wasatch Front Regional Council's transportation plan as being built in the years 2020 to 2030. If the City Council pursues—or does not pursue—moving completion of the light rail line further up the Regional Council's list,it may wish to consider moving the southern edge of the planned downtown loop from 400 South to 700 South.The loop then would be South Temple, Main Street,700 South and 400 West. Changing the southern edge of the loop probably would require amending the existing Airport to University environmental impact study. Two goals for.the original loop were: • To provide UTA with a loop to stage light rail trains as use of light rail grows. • Economic development of the Central Business District by linking Main Street to the 650-acre Gateway area and creating a downtown circulator. There are perhaps five reasons not to lengthen the loop.First,a larger loop might not meet the Utah Transit Authority's needs. UTA officials have said in the past that the main reason a loop would benefit UTA is that,as the light rail system grows,UTA will need a loop so light rail trains can move fluidly through Salt Lake City's downtown.An analogy would be airplanes circling before getting clearance to land.A longer loop might delay UTA timetables for arriving and departing from light rail stations. Second,placing the southern part of the loop at 700 South 4 Street would require extending the 400 West Street portion of the loop from 400 South to 700 South.As a result,light rail trains would have to cross 600 South, 500 South and 400 South streets a block east of freeway exits and entrances.The nearness to the on-and off-ramps and the construction involved in crossing the three streets might make the Utah Department of Transportation reluctant to support the idea. Construction also probably would affect automobile 'access to downtown. Third, if concentration of activity in the CBD is a goal,the longer loop could pull development further south.Fourth,the 1996 Railroad Consolidation Plan and the Gateway Master Plan and Gateway Specific Plan call for the relocation of the 900 South freeway viaduct from West Temple to 400 West Street and the creation of a boulevard on that street. However,the existing freeway viaduct was reinforced during I-15 construction,and moving it to 400 West Street might take two decades.Fifth,the City has built grassed medians along 400 West Street south of 400 South Street. There are perhaps three reasons for lengthening the loop to 700 South. First,Long-term (50 to 75 years)a larger CBD may be necessary,and expansion could be guided by placing the light rail line on 700 South Street.If transportation systems define area boundaries,downtown may be limited by placing light rail on 400 South Street. Second,discussions among the City, UTA and the Utah Department of Transportation to place a light rail line on 400 South Street were long and arduous.UDOT was reluctant to have the line on a thoroughfare that linked Interstate 80 and Foothill Boulevard to Interstate 15.In fact,the Airport to University environmental impact study calls for the light rail line to fork at 200 East Street and run along the sides of 400 South Street to 400 West Street as a compromise to UDOT.Parking along 400 South also was eliminated as part of the compromise. It is unknown to Council staff what UDOT's position is on extending the loop further on 400 South Street to 400 West Street,but the agency may continue to be reluctant to complete the loop. On the other hand,700 South Street is a City street and could be used to eliminate conflict with UDOT over traffic movement concerns on 400 South Street.Although track construction would involve intersections at 600 South,500 South and 400 South streets,completing the loop as planned will involve construction on four blocks of 400 South Street.Third,if economic development remains a goal of building the loop,a longer loop would benefit the City in several ways.The longer loop would run almost the entire length of the Granary and Depot District RDA project areas on 400 West Street and increase potential for future development.It would tie more closely transit oriented housing under development on 200 West Street to the downtown and perhaps provide the impetus to build the light rail station planned there.It would connect the Central Business District to a key downtown support area anchored by the Sears store. Build a new Public Safety Building at 600 South 200 East and sell existing site for housing It is Council staff's understanding that the existing Public Safety Building is at or near the end of its useful life.Based on recommendations in the 1994 Facilities Master Plan, the City has purchased property at the corner of 600 South and 200 East streets from what was the old Silver State Building on 600 South and including the former Odyssey House on 200 East.The site may be the best location to build a new Public Safety Building.The existing site then could be sold to develop housing.The existing Public Safety Building sits on about 2.3 acres at 200 South and 300 East—one of the main residential streets near downtown.The site is within a half block of a grocery store and next to banks,dry cleaners,cafes and other neighborhood amenities, some of which are part of the original East Downtown neighborhood.A parcel 2.3 acres-large could allow a signature residential development within walking distance of the Central Business District,reinforce 300 East as a key residential area,and perhaps spur more mid-to high-density housing development in the East Downtown. 5 In earlier discussions of the Downtown's future Council staff noted that although housing in the Gateway area has been built,and projects are under way or are planned elsewhere,the Central Business District and its surrounding areas contain 11,383 fewer residents than they did in 1960. Staff also said that to reach its 1960 population level the Downtown area would have to capture slightly more than 1 percent of the 1 million-people projected growth along the Wasatch Front by the year 2020.A question to consider is:Is attracting 11,000 people in the next 18 years to live in or near the Downtown an achievable goal or a goal in which the bar could be raised? Permanently locate the Utah Arts Festival on Main Street The 1988 R/UDAT study"strongly recommends that the Utah Arts Festival occur on Main Street or State Street."The study recommended the festival locate there because of its potential "stimulus to downtown merchants."The festival will be held at Gallivan Center this year.If the festival is successful,it may be worth considering keeping it there and letting the event flow onto Main Street. Careful planning could allow light rail to continue to operate during the festival. Other proposed future locations may be too far from Main Street to draw people to Main Street retail stores. Build an art museum/arts complex on the southwest corner of Main Street and 400 South Four studies—the Second Century Plan,the RJUDAT study,the Downtown Master Plan, the Thomas Consultants study—have called for development of an art museum or"anchor entertainment"building downtown.The Downtown Alliance baseline economic study on Page 75 lists,"the absence of a large and significant visual arts museum"as one of the weaknesses in the Central Business District's entertainment and culture sector. Other major downtown studies have noted the lack of anchors in the southern part of the CBD.The Thomas Consultants study recommended that an"anchor entertainment"structure be built on the southwest corner of 400 South and Main Street. (Block 40).The block's owner has plans to develop the block,but no firm timetable for development.In the past,the owner has declined to allow a new federal courthouse to be built on the southwest corner of the intersection in part because a courthouse would hinder future development plans.However,an art museum/cultural complex might be a permanent addition to the downtown that would enhance the block's future development and be the kind of land use that would blend with the property owner's future plans. Locating a museum/cultural complex there probably would require a great deal of cooperation among the City,the landowner, the county,the state and possibly the University of Utah.However,the location of an activity draw becomes more important with the General Services Administration's plans to build new court behind the Moss Courthouse.Given the anticipated size of the new facility,the institutional use of the area west of the existing courthouse could create a barrier to activity flowing from roughly Market Street to the hotel district on 500 South and 600 South streets. Participate where possible in an intensified.sustained marketing of the downtown Although there have been several attempts to market downtown Salt Lake City as a whole,the Downtown Alliance's telephone survey indicates that people"dislike"the apparent lack of parking and traffic and congestion.Yet,the Downtown Alliance's baseline study indicates that there are 35,900 parking spaces within the study area. (Page 5.)Other comments raised in a variety of discussions about downtown have included that the downtown does not have retail unique enough to warrant traveling to it.Yet,the Downtown Alliance's baseline study said that the main strength of the downtown is"the number of retail choices." -- 6 • The seeming contradictions appear to point to a need for a marketing campaign more intense and more sustained than previous attempts.A potential marketing campaign might be two-pronged. One part of the campaign might be a long-term goal of"branding"the downtown and establishing a profile of downtown to use to market to developers and retailers who have not yet located in downtown Salt Lake City.The other part of the campaign might involve marketing the downtown to people in Salt Lake County and regionally. According to the Downtown Alliance's telephone survey, 36 percent of the people in Salt Lake County check daily newspapers when planning for entertainment,dining or shopping. Another 13 percent get their information from television or radio.Given that the survey also indicates that 65 percent of Salt Lake County residents visit downtown Salt Lake City no more than every two weeks,a newspaper,television and radio marketing campaign appears to be warranted. Developing and paying for such a campaign appears to be something the business community might want to undertake. Government's role may be limited to promoting the campaign's message wherever it can.' Additional Policy Issues Raised in the Process The matrices also contain a section titled the same as the above sub-head. The section contains staffs attempt to summarize policy options and comments made by people who spoke at the City Council's previous two public meetings on downtown's future. Again, staff has attached a larger summary of the comments made during the public discussions. In the section staff has attempted to categorize the comments into separate policy areas. Staff also has attempted to formulate the comments into a policy perspective. For instance,several people at both meetings commented on a need for leadership in the future development of the downtown. From a policy perspective the comments might be viewed as: Should a single person or entity lead future development of downtown,or should leadership involve a more collective approach?Is there-a plan or a plan under development to recruit businesses or developers to the downtown that the City Council may wish to review and support? Matrix Key The first part of the matrix contains a variety of abbreviations in the comments section. Here is the key to the abbreviations: TC—Thomas Consultants study. SCP—Second Century Plan. RDT—Regional/Urban Design Assistance Team study. DTP— 1995-Downtown Plan. GWP—Gateway Master Plan and Gateway Specific Plan. EDP—East Downtown Master Plan. 7 To Airport NORTH TEMPLE ST o o Temple we 1O 3 Square 0 SOUTH TEMPLE ST 0 SOUTH TEMPLE ST o Delta Crossroads ZCMI o C 4' Depot District I Center Mall Center 10 S IL/ Salt hQ Project Area 1005 Palace co Salt CO z w Cr a i, co Z 200 S Gallivan w Intermodal ' o Center o 0 N Hub M J American a Stores 300 S w 300 S Pioneer o co Park w LI To University 400 S of Utah MN I ICity Hall Li 500 S co • • 0 0 0 • z 0 0 • • 600 S I 1 • 600 S • I i 700 S 1 —— MN 700 S o West Temple 0 twos Gateway 800S A Granary District Project Area `tk . Project Area tO 900 S I 900 S 's 00 0 V N y FAYETTE AVE w w a t- t- ui u) z a 2 Salt Lake City Planning Division Geographic Information System Map Legend June2002 0 Existing TRAX Line Route Existing TRAX Station Planned Future TRAX Line Route Planned Future TRAX Station -- Potential TRAX Line Route MIMI Potential TRAX Station GUIDING PRINCIPLES FOR DOWNTOWN DEVELOPMENT Presented to the Board of Governors, Salt Lake Chamber, May 21, 2002, by the Downtown Committee of the Board,Patricia Richards, Chair. 1. The vitality of the downtown area is dependent upon a strong user population base. The Salt Lake Chamber will encourage quality, multi-use downtown development such as offices and housing that will increase both the daytime and nighttime population of the downtown area. The Chamber will encourage projects that promote easy access to and movement throughout the downtown. 2. Property owners and investors will play a key role in the future of the downtown area. The Salt Lake Chamber, its development partners, and Salt Lake City government will offer public support and other assistance to these property owners on projects that will improve the downtown, and, where necessary, help them to secure the necessary components for their success. 3. The synergy of corporate, nonprofit, education, and government leadership located in the downtown area is a major factor to the success of the downtown community. The Salt Lake Chamber, its development partners, and Salt Lake City government will encourage new corporate headquarters to locate in the downtown area, and will support existing corporate headquarters to remain in the downtown area. The Chamber will encourage all new government offices, where possible, to be located in the downtown area. 4. The downtown area has important legacies that need to be preserved and promoted. Working with other groups, the Salt Lake Chamber will promote the establishment of Olympic landmarks where visitors can revisit major aspects of the Games. The Chamber will support other efforts such as a central calendar of downtown events that will work to make the downtown area an important destination for visitors throughout the region. 5. All stakeholders must work together to insure that downtown development succeeds. The Salt Lake Chamber recognizes the efforts of many civic groups that are working to improve the downtown, and urges that all these groups communicate, support each other, and be united in their overall objectives. Any Chamber effort will be inclusive in concert with other downtown organizations. 6. The success of the downtown is dependent upon strong leadership. The Salt Lake Chamber encourages the Mayor and City Council of Salt Lake City to convene a gathering of major property owners/stakeholders to focus on the downtown and Main Street Development. The Chamber encourages the use of government tools to create economic incentives for quality development. With this call for leadership, the Chamber pledges to support the City. 4f25 Valley Research Downtown Alliance May 2002 PP__. Prepared for Downtown Alliance Prepared by: Valley Research, Inc. t. Downtown Alliance Survey May 2002 Valley Research, Inc. Valley Research Staff Dennis Guiver—CEO Sheri Guiver, President Brian Robertson, Ph.D.—Consultant/Research Director For information or additional copies of this report, please contact Valley Research, Inc. 350 East 500 South, Suite 102 Salt Lake City, UT 84111-3351 (801)907-2000 <<>> Fax(801)907-2001 Email- valley@valley-research.com Web Site-www.vallev-research.com Valley Research,Inc. ii Downtown Alliance Survey May 2002 Table of Content I. Methodology 1 II. Results 2 Executive Summary 2 Frequency Tabulations 16 III. Verbatim Comments 33 IV. Cross Tabulations 81 Gender 81 Whether Have Children 94 Whether Respondent is Working 108 Religious Affiliation 121 Age of Respondent 135 Income 151 IV. Valley Research, Inc. 167 Valley Research,Inc. iii Downtown Alliance Survey May 2002 Methodology The Downtown Alliance Survey is based on telephone interviews conducted during May 2002 with 402 randomly selected respondents residing in Salt Lake County. The survey response rate was 22%while the cooperation rate was 64%. Once a household was identified, the person who was the decision maker on the activities in which the household participated was identified and interviewed. The questionnaire was administered in full to every respondent Nine attempts were made to call each telephone number and each selected adult respondent Sampling Error The percentages reported are within plus or minus 5%of the percentages that would be found if all etigtole respondents were interviewed. For example,if our survey showed that 50%Of respondents visited downtown during the past month, then the comparable figure for the population would be somewhere between 45%and 55%(at least we can be 95%confident that it would). Reducing Survey Biases Conducting a survey of public attitudes involves many procedures that may inadvertently introduce bias into the results. Every effort was made to reduce such bias; unfortunately,it is difficult to accurately measure the extent of these biases. Good surveying techniques, interviewer training,and dose interviewer supervision reduce the extent of these biases but they can never be entirely eliminated. It is possthle that the results would have changed had the questions been reworded, reordered, or different interviewing techniques(e.g.,face-to-face interviewing) implemented. Valley Research, Inc. Downtown Alliance Survey May 2002 Executive Summary Residents look to newspapers, family and friends for information. When planning entertainment,dining, or shopping activities for yourself or your family,where do you generally get your information about these activities? COUNT % A Daily newspaper 146 36% A Weekly newspaper 7 2% A Special newspaper(Such as City Weekly) 7 2% A Magazine(Such as Salt Lake Magazine) 3 1% Television 39 10% Radio 13 3% Family or friends 124 31% Internet websites 42 10% Or some other source .15 4% OK-REF 6 1% Total 402 100% Forty percent of residents indicated they looked to a newspaper to get information about shopping, dining, and entertainment. Thirty-six percent of respondents indicated they relied on a daily newspaper. Thirty-one percent of respondents asked family and friends for information on shopping, entertainment and dining. Ten percent of respondents relied on television and another 10% used the Internet. Valley Research, Inc. 2 Downtown Alliance Survey May 2002 Employed respondents typically go from home rather than from work. What were you doing most of last week? 60%- 48% 50%0- 40% 23% 22'/. 30%- 10'/0- 0'/0 _ Working Keeping house Going to Something else school When YOU go out for entertainment,dining,or shopping how often would you sirry you go directly from work? 60%0 50'/.- 40% 35% 40%- 30%- 17g'o 20% 6% All the time Most of the Some of the Rarely Never time time Valley Research,Inc. 3 Downtown Alliance Survey May 2002 When YOU go ut for entertainment,dining,or shopping how often would you say you go home first and then go out? • 60% - /o _ 42'/0 42°A 40% - 30% - • 20% - 11% 0 10% - 4 0 1% 0% I I MIN 1 All the time Most of the Some of the Rarely Never time time Overall, 48%of respondents were employed. Employed respondents were asked whether they went out for shopping, dining, or entertainment directly from work or whether they first went home. Among employed respondents, 35% indicated they never left directly from work Forty percent indicated they rarely left directly from work Seventeen percent of employed respondents indicated they left directly from work some of the time, while 6% left directly from work most of the time. Only 5%of employed respondents indicated they never or rarely went home prior to going out for shopping, entertainment, or dining. Forty wo percent of employed respondents indicated they went home prior to going out all of the time. Another 42%indicated they went home first before going out"most of the time.° Valley Research,Inc. 4 Downtown Alliance Survey May 2002 One in three respondents have been downtown for entertainm nt,dining,or shopping within the past week. When was the last time you visited downtown for something besides work such as entertainment,diming,or shopping? 60%- 50%- 35 40%- 32% 30%- 17% 20%- 13% 10'/e . ■ 30/. OYe Whims the 2-3 weeks About a Moro that Never Unsure past week ago month ago one month ago Thirty-two percent of respondents indicated they have been downtown for activities such as dining,shopping,or entertainment during the past week Seventeen percent of respondents visited downtown 2-3 weeks ago and 13%of respondents visited downtown about one month ago. Thirty-five percent of respondents indicated the last time they visited downtown for dining,shopping,or entertainment was more than one month ago. Three percent indicated they never visit downtown. Valley Research,Inc. 5 Downtown Alliance Survey May 2002 When visiting downtown, eight in ten take their own automobile. When you visit downtown,how do you get there? 83% 90% - 80% - 70% - 60% - 50% - 40% - 25% 30% - 20% - 6% 4% 10% - 0% 1% 0% Own Ride with Take Bus Take TRAX Bicycle Walking automobile others NOTE Respondents could provide more than one answer. Eighty-three percent of those who visit downtown indicated they took their own automobile. Twenty-five percent of those visiting downtown indicated they took TRAX Six percent rode with others while 4% indicated they took the bus. Valley Research,Inc 6 Downtown Alliance Survey May 2002 Dining andshopping were the most cited reasons for visiting downtown during their latest visit. These same activities were the most frequently cited activities for any trips to downtown. What was purpose of your latest visit? AND When you do visit downtown, do you or your family come downtown for... Latest Visit Any Visit Sporting events 13% 38% Concerts 5% 35% Shopping 32% 55% Dining 30% 55% Theater or Opera 3% 23% The Symphony 0% 16% Arts&cultural events 2% 20% Music 0% 18% Movies 4% 26% Nightlife activities 3% 14% Religious activities 2% 24% Any other activities 20% 9% Never go downtown 3% 3% Unsure 1% 0% Respondents were asked to indicate the purpose of their latest visit to downtown. Respondents were then asked to indicate which activities for which they or their family had come downtown. During their latest visit, 32%of respondents indicated they visited downtown for shopping. Another 30%visited downtown for dining. Thirteen percent visited downtown to attend a sporting event. When asked about any visits to downtown, 55% indicated they had visited downtown for shopping and another 55% indicated they had visited downtown for dining. Thirty-eight percent of respondents attended sporting events and 35% attended concerts. Other activities mentioned by respondents were movies (26% of respondents visiting downtown for this purpose), religious activities(24%), and theater or opera(23%), among others. Valley Research,Inc. 7 Downtown Alliance Survey May 2002 One in three respondents visit downtown for shopping and dining at least once a month. How often would you or your family visit downtown for... less than Once a month Once every 2- once every 3 or more 3 months months Never Sporting events 13% 9% 14% 63% Concerts 9% 9% 17% 65% Shopping 33% 10% 11% 46% Dining 36% 9% 9% 45% Theater or opera 4% 7% 10% 78% The symphony 5% 3% 8% 84% Arts&cultural events 6% 5% 9% 81% Music 7% 4% 7% 82% Movies 11% 7% 6% 76% Nightlife activities 9% 2% 1% 87% Religious activities 8% 5% 10% 76% Shopping and dining were among the most frequently mentioned activities for visiting downtown. Thirty-six percent of respondents indicated they visited downtown at least once a month for dining(with 9%visiting downtown every 2-3 months and 9%visiting less than once every 3 months). One in three respondents visited downtown at least once a month for shopping (with 10% visiting downtown every 2-3 months and 11%visiting less than once every 3 months). Thirteen percent of respondents came downtown at least once a month for sporting events, with 9%visiting downtown every 2-3 months and another 14%visiting downtown less than once every 3 months for sporting events. El ven percent visited downtown to go to the movies at least once a month, while 9% visited downtown at least once a month for nightlife activities. Valley Research, Inc. 8 Downtown Alliance Survey May 2002 Respondents cite a number of factors they like about downtown. Parking problems and the traffic are the main factors that respondents cite for disliking downtown. When asked what they liked about downtown,respondents cited a number of reasons. Respondents liked the number and types of activities that are available downtown. Other cited the atmosphere and character. Respondents also indicated they like the deanliness of downtown,especially in comparison to other cities. Other respondents indicated the liked the convenience and the fact that it was dose. Some respondents mentioned specific activities like the range of shopping or dining options. Among the three quarters of respondents who indicated there was something they disliked about downtown,the main complaint was the lack of parking or having to pay to park downtown. Respondents also disliked the traffic and congestion. Other respondents felt that downtown was too crowded,and did not like the empty stores and the ongoing construction. Valley Research,Inc. 9 Downtown Alliance Survey May 2002 Parking and traffic or congestion are the main factors that k ep residents from coming downtown more often. What factors keep you from coming downtown more often? Reason Parking 27% Traffic or congestion 22% if is easier to go elsewhere 20% There are no activities of interest to me or my family 5% Lads of transportation, late night mass transit 3% What I am looking for is elsewhere 1% There are no shops of interest to me or my family 0% pther 12% Nothing 9% Unsure 0% When asked what keeps them from coming downtown more often, 27% indicated parking was a factor. Twenty-two percent indicated traffic and congestion were factors that kept them from coming downtown more often. Twenty percent of respondents indicated that it was simply easier to go elsewhere. The lack of activities or shops was listed as a reason for not coming downtown more often by only a small minority of respondents. Valley Research, Inc. J0 Downtown Alliance Survey May 2002 Respondents offered a number of suggestions for other activities that should be offered downtown. Respondents cited a range of activities and events they felt should be offered downtown and that they felt would attract more adults and families downtown. These include: 1. A new movie theater. 2. More activities for children such as a museum,amusement park,or new park. 3. More concerts including free entertainment and outdoor concerts. 4. Family oriented activities that families could do together such as festivals, fairs,street fairs,or theater. 5. A greater variety of cultural events. 6. Expanding the offerings of arts events like theater,the symphony,ballet, and opera. 7. A wider range of shops. 8. A wider variety of restaurants including less expensive options for dining. In addition to these suggestions,respondents also indicated that resolving some of the parking problems would also be factors to attract people downtown; including offering free parking. Valley Research,Inc. 11 • Downtown Alliance Survey May 2002 Respondents would prefer information about downtown activities in the newspaper or on television. What would be the most effective way of providing you with information about what is happening downtown to allow you to plan activities? A Daily newspaper 38% A Weekly newspaper 3% A Special newspaper(Such as City Weekly) 4% A Magazine(Such as Salt Lake Magazine) 1% Television 27% Radio 7% Family or friends 3% Internet websites 11% Or some other source 5% ‘Unsure 1% Overall, 45% of respondents indicated the most effective way to provide them with information about downtown activities was through the newspaper. Thirty- ight percent specifically cited a daily newspaper. Twenty-seven percent indicated that television would be the most effective method to provide them with . information. Eleven percent felt an Internet website would be the most effective method of providing information about downtown activities, while 7% mentioned radio. Valley Research,Inc. 12 Downtown Alliance Survey May 2002 Demographics Gender 59% 60% 50%, 41% 40% 30% 20% 10% 0% Female Male Age 60% 50%- 40%- 27,6. o 30% 23/o 18% 15% 15% 20%- 10%- I . . 1% 18-29 30-39 40-49 50-59 6(H- Unsure • Valley Research,Inc. 13 Downtown Alliance Survey May 2002 Income 60% - 50%. - 40% - 30% 30% - 240/. 2O% - 11%• 7% 10'/0 1O% - 8% 9'/a Under $15,O0O- $25,O0O- $5O,O0O- $75,00O- $1O0,O00 DK-REF $15,O0O $24,999 $49,999 $74,999 $99,999 and over • Marital Status 7O•/o - 62% • 6O%o - • 50% - 400% - 30% - 17% • 2Oo%- 11% 7% 1v. 10%- 2% O•i. mammon Married Divorced Widowed Separated Never Unsure married • Valley Research, Inc. 14 Downtown Alliance Survey May 2002 Number of People in the Household 60% - 50% - 40% - 32% 27% 30% - 17% III 14% 20% - 7% 10% - . II - 2% 1% 1 2 3 4-5 6-7 8+ Unsure • Number of Children 17 and Younger 60% - 50% 50% - 40% - 30% - 17% 19% 20% - 8% I 4% 10% - 1% 1% 0% I I - MINI 0 ' 1 2 3 4 5+ Unsure . Religions Affiliation 59% 50°% - 40% - 30% - 14% 14% 20% - 5% 7% 10% - _ 2'/0 IDS Protestant Catholic Some other No religion Unsure • religion - Valley Research,Inc. 15 Patricia A.Richards Endowment&Foundation Markets Senior Vice President Institutional Trust&Custody WELLS National Director MAC U1228-050 FARGO 299 South Main Street(84111) P.O.Box 25491 Salt Lake City,UT 84125 801 246-1462 801 246-1430 Fax May 28, 2002 Dave Buhler City Council District 6 Salt Lake City Council 451 South State Street, Rm 304 Salt Lake City, UT 84111 Dear Dave: Enclosed is a copy of the economic report published last week by the Downtown Alliance, along with some additional charts which I obtained at an Alliance board meeting last month. This report is the first of its kind on the downtown economy and should help to inform our activities going forward. I hope you find it useful. çversrtrulY yours, Encl. / SELECTED TABLES AND CHARTS i FOR THE DOWNTOWN ALLIANCE Prepared By Bureau of Economic and Business Research David Eccles School of Business University of Utah • Table 1 Estimated Change Employment in the Central Business District Cate,o> _ _ y :z�y.,47:r 990 << fT .i..... .#:,_., t, g rY';`.:'::` .-:.. _: �.:." . :`2:00'1 Ch�aiigeA�'�� ;...%Cfiange:; , Office 41,100 51,350 10,250 25.0% Hotels 1,250 1,800 550 44.0% Manufacturing 500 500 0 --- Restaurants 3,350 4,475 1,125 33.5% Retail 1,550 2,100 550 35.5% Miscellaneous 500 750 250 50.0% Total 48,250 60,975 12,725 26.0% Source: Bureau of Economic and Business Research, University of Utah. Map 1 CBD Employment by Block-2002* _ 1 ' Noitbtern.ple ' "---' • 1 1 -1.....,:-. ______ .i.:etrf.gi,,),g!.',', Block 84 Block 85 Block 86 ,.&: ';`.:: fit':: :' ' DR* — _ Emp. 2,500 Emp.<500 Entp.<500 11 .!p 0M,ipti Emp.;.:,..5rJO Blocks 80,83 at fr...; Ii045',44 ;:, 1,,,,,,,,.2....,.. ,,,,,,,„ ,,,, 7e. imp.3,000 utbtern ie ---- ---1 i „.i'.:jr. Block 78 Block 76 Block 75 Mill Block 73 :•,.., ''P;.: Emp.<500 Imp. 3,trts Emp. 6,200 Emp.500•• Salt Palace 1 00 Emp.<500 Block 6S Mock 66 Block 67 : Ilf 1 Block Block 72 ....:1:11ock 69 Imp.<500 M11/4 900 Emp.<S 00 i I.'t. E 71mp. 3,450 &up. 2,650 Emp. 290 1 I Block 61 Emp.<500 Block 60 Stop.<SOO Block 59 0 Imp.<500 p4 Block 52 =1 ffll 0 Block 56 :5 ,. ..1 rS Block 55 Emp. 1,050 Co on cet r ,441:1W'', : Kra 52 P. 2,500 Emit. 1,950 Block 53 ; . 54 ;f.,4'„,: or.;. .,,if ••••••••• =..... c) C3 F-- 11 $' eN1 — : :'../. 1-1 Baca 43 Bkidk 42 Block 41 Block 40 Block 39 Emp.<500 Kmp.<500 MoP, 1,350 •1409- 900 ]. --__ *" e." '— ' 'l:: ,, ---1 I H II II II II It II mll I*Employment estimates estimates assume"full occupancy"of office buildings. Source: Bureau of Economic and Business Research, David Eccles School of Business, University of Utah. Table 2 Selected Retail Sales in the Central Business District (Millions) • 1040.*:;!:2$00 i::!1,00,44i41: 0itt NIT:!Ot41,10.Pialttek *Wg,ChEN 4104.- -tiel tOriitiiDOiWigt Wiaia2104TVOilaiM i4raii.t:iktL 1990 $267.0 $351.8 --- 1991 $300.9 $380.4 8.14 1992 $297.8 $365.5 -3.92 1993 $332.0 $395.6 8.24 1994 $382.4 $411/1.3 12.29 1995 $393.9 $445.1 0.18 1996 $430.6 $472.6 6.18 1997 $411.1 $441.1 -6.67 1998 $401.2 $423.8 -3.90 1999 $395.0 .. $408.3 -3.67 2000 $373.1 $373.1 -8.62 Source: Utah State Tax Commission. .... Chart 1 Selected Retail Sales: CBD's Share of Countywide Sales (Millions of Constant 2000 Dollars) 20% T1. _ < , . ..._J 18°/O • • ' ,�1` ,, ,T . r ;. r �1 1.t. _ S3.-,m' 7,-: , Y LS r,C�`� t1I 'Sj77.77,75. rY• •;. tf ' ' -�' r i rt f 1 r. T i..L:Z S11+,I. ' F 6{ :1 f.'e 6+":',i° . M., fi .p r rL ' i':'s �� I 1 a E t i4rt�' y-�. �,...;„ O v a 3 12 /° t� fl , , z 'L �� S J 'fir •� � I. O O i _ ., : ; r l �, I _ ' �.._. RGi 1 aC .X^I• :. �� -, J � d L—e n:;. r s I „ ,;,77,yr r a r. xi. f F ° d '''' �y,-.4 >;i H t 3 v :,� �✓ Nrs-.rr p O° I s • • i' 't ^4 � � 1 1 l RX �f I`' ;'1 f "3G �'`+u '4w Si'�Y7���> [ t .ru'�.-�-1.� (•� K ri.:T. :-t �^ T ';'! n a�" "^ '. .,- =h -'f'S1 1"0 `':.'Fy -'�. F t•�, a '� r tr I, v��•r a :.t 8 1 >• }4 v L vYF 7a fn�k'.w•+ •s.r� .t vt a a + 6 /O ar . r ,a 1 ,LDS r�',!:: , .� +�,.n• 1fl �'I ` .: .. j ', - r- r '• c ,, i '1 I , ;i :.f 1996 to 2000 •,' 4°/O r i r, 'I I r I I I , � �� 1 �k_• � a'a•.: 7 r, jr�� C T ..,: CBD's share falls by 28% j„a.�'' r: �Fy' `� ..1-,}. 1,. . rig"*7+''.a .. ..T: •: L rc:$. ! �L .:, ..s,''''h•=•.. O ." -.r, 1 I.,r Aam .. _r .F.. _ r 1 �' f ,',sW G "a_.�: .y••I. •tF� s._ �� t.r �n.Y':..._. ?CF.•`i�rr. .:.✓.«i:,�i;.z e, 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 CBD's Share of Countywide Retail Sales Source: Utah State Tax Commission. , Chart 2 Landownership in the CBD SL County State 5% 4�O Federal Gov't 1% RDA 4% ■Private&Other ■LDS Church ■SL City 0 RDA 0 SL County •State ■Federal Gov't Source: Salt Lake County Assessor's Office,RDA of Salt Lake City, Property Management Offices of Salt Lake City and County,Utah Department of Construction and Facilities Management and Zions Securities. ECONOMIC CHANGE IN SALT LAKE CITY=S CENTRAL BUSINESS DISTRICT-1990 TO 2001 Prepared For Downtown Alliance-Salt Lake City Prepared by James A.Wood Bureau of Economic and Business Research David Ecdes School of Business University of Utah May 2002 Table of Contents A Brief Summary of Economic Change in the CBD-1990 to 2001 3 I.Economic Profile of the Central Business District 5 II.Summary of Structural Change in the CBD 7 III.CBD Economy:Employment and Wages,Land Use and Ownership 9 A.Employment and Wages 9 B.Employment By Block 11 C.Land Use and Land Ownership in the Central Business District 14 D.Methodology for Deriving Employment and Wage Estimates 17 IV.An Economic Analysis of Central Business District Sectors 20 A.Retail Trade 20 B.Office Sector 20 C.Government Sector 49 D.The CBD Economy and the Church of Iesus Christ of Latter-day Saints 53 E.Hotel Sector 59 F.Housing and the Central Business District 64 G.Financial Sector 72 IL Entertainment Sector 75 I. Public and Private Investment and the Fiscal Role of the CBD 77 V.The Next Five Years 80 2 A Brief Summary of Economic Change in the CBD-1990 to 2001 — 'This study is an examination of the economic change in Salt Lake City's Central Business District -- (CBD)since 1990. It is a descriptive rather than prescriptive study. The objective was not to produce an economic development or retail strategy but rather to produce an economic profile of the CBD and give an economic perspective to the public discussion now underway about the future of Salt Lake City's downtown. •The central themes of the CBD economy over the past eleven years are briefly summarized below. In the body of the study these themes are discussed in detail using economic data,trends and analysis. The CBD is defined as the geographic area from North Temple to 400 South and 300 East to 500 West. •This summary begins with the most fundamental of all economic indicators--employment. The number of employees in the CBD in 2001 was nearly 61,000,an increase of 12,000 since 1990. During the 1990 to 2001 period the average annual growth rate for employment in the CBD was a respectable 2.0 percent. •Eighty percent of the job growth in the CBD was in the office sector,while the restaurant sector accounted for 10 percent of new employment growth and the retail sector another 5 percent. •In 1996 retail sales in the CBD peaked at$473 million. By 2000,sales had declined 21 percent, to$373 million. (Retail sales are in constant or inflation adjusted dollars)Thus,despite a growing number of workers downtown and an expanding tourism sector,retail sales declined. The principal cause for the decline—intense competition from the expansion of suburban retail. •For much of the 1990s the hotel,office and retail sectors experienced very low vacancy rates, however,a construction boom in all three sectors,partly induced by the Olympics,has created excess capacity. Office,retail and hotel vacancy rates are now at their highest levels in 10 years. •No other period in the history of the CBD compares to the 1990s in the magnitude and range of public and private investment. The value of construction in the CBD since 1990 totals$1.4 billion,which represents an extraordinary commitment to the future of the CBD by public and private entities as well as the Church of Jesus Christ of Latter-day Saints. •Entertainment has become an increasingly important sector in the CBD. During the 1990s, existing entertainment venues(Delta Center,Abravanel Hall and Capitol Theater)have been complemented with the addition of the Rose Wagner Center for the Performing Arts,25 new restaurants, 15 private clubs and The Gateway, plus later this year,a new$18 million planetarium and$65 million public library. In sharp contrast to the retail sector,the CBD has a substantial competitive advantage in entertainment venues and events vis-a-vis the suburbs. •An unprecedented housing boom is underway in the CBD. The current housing inventory is = 3,300 units. Forty percent-1,354 units—of the inventory has been built since 1990. 3 •Seventy percent of new housing units and sixty percent of new restaurants in the CBD are west of West Temple. The concentration of entertainment and housing in the CBD is shifting west. •The square footage of office space on Main Street has doubled since 1990 with the addition of One Utah Center,the renovated Joseph Smith Memorial Building, Gateway Tower West and the Webs Fargo Center. These four buildings added 1.5 million square feet of office space to Main Street. By 2001, nearly one quarter of all office square footage in the CBD was located on Main Street. •Since 1990, the CBD has undergone exceptionally rapid expansion in public and private investment, new housing development, enhanced entertainment options combined with the worldwide exposure of the 2002 Olympics. Rapid expansion of facilities and infrastructure, however, is a two-edged sword not only creating some excess capacity—it is hoped only temporary—but also laying the groundwork for future growth in the CBD. 4 I.Economic Profile of the Central Business District $A close examination of the economic change and current conditions of the CBD shows that with 61,000 employees and$2 billion in wages,the CBD is one of the largest economies in the state. Only four counties and two citiesCSalt Lake and ProvoChave more employment and wages.t A current economic profile is shown below. Economic Profile of the CBD-2001 Employment 60,975 Wages Paid $2.0 billion Office Square Footage 13.3 million sq.ft. Office Vacancy Rate(ncludes space 13.5% available for sublease) Retail Sales $373 million Retail Square Footage 2.0 million sq.ft. Retail Square Footage in Malls 1.5 million sq.ft. Commercial Bank Deposits $3.0 billion Hotel Rooms(Limited to CBD) 3,000 Hotel Occupancy(Downtown) 64.5% Maximum Est.Retail Spending by All Types $67 million of Travelers Convention Attendees Nights 109,088 Retail Spending by Convention Attendees $17 million Property Tax Revenue $15.6 million Sales Tax Revenue $5.66 million Public and Private Investment(1990-2001) $1.35 billion Housing Units 3,304 Parking Spaces 35,900 tSalt Lake City has employment of211,000 and Provo 81,000. 5 $The change between 1990 and 2001 for some of the most important economic indicators of the CBD are summarized below: Change in Major Economic Indicators :riryi ..:r:�:[;ik� � _ f�f`� a.a rr'f o: j{�'-',iI'• L• �' ' F•• �•. '/.r:Fj,`� � %... rr• y.+ r:.•r .: /:. ..:.... r � vv}. i rf�r}::-'�I.Y•rf+ ?Sf Employment • 49,150 60,975 11,825 24.0% Wages(constant 2001 $1.3 billion $2.0 billion $700 million 53.8% dollars) Office Square Footage 10.2 million SF 13.3 million SF 3.1 million SF 30% Retail Sales(constant $351.8 million $373.1 million* $21.3 million 6.1% 2000 dollars) Retail Square Footage 1.38 million SF 2.0 million SF .62 million SF 44.9% Housing Units 1,950 3,304 1,354 69% Commercial Bank $2.2 billion $3.0 billion $800 million 36.4% Deposits *Retail sales in 2000. 6 II.Summary of Structural Changes in the CBD $Despite the increase in employment in the CBD since 1990C11,825 new jobsCthere have been only minor changes in the overall structure of employment. Office employment has dropped from 85.percent of total employment to 84 percent. Furthermore,the sheer size of the office sector prevents or at least makes unlikely much change in the relative shares of other employment sectors. SHowever,within the office sector there has been a shift in the composition of employment. In 1990 the CBD=s two largest office employersCthe Church of Jesus Christ of Latter-day Saints and governmentCaccounted for 26 percent of all office employment. Since 1990 the employment for both the LDS Church and government has increased by about 2,000 workers but their relative share remains unchanged at 26 percent. Therefore,growth in the office sectorC9,350 new jobsChas come primarily from expansion of professional and administrative offices in the private sector rather than LDS Church and government job growth. $What would have certainly been an historic change as well as structural change in Salt Lake City=s office sector was regrettably short-lived. The location of American Storey headquarters in the CBD would have given the city,for the first time ever,a headquarters location of a Fortune 500 firm. If the merger of American Stores and Albertson=s had not occurred,the CBD would have at least 2,000 to 3,000 more employees and very likely another large office building on Main Street. In economic development terms,American Stores=location in the CBD was the equivalent of the 2002 Olympics for the state of Utah. The presence of American Stores had the potential to change the growth path of the CBD. SWhile structural change for the CBD economy as a whole was not particularly profound,there were significant changes at the sector level. (1).The rapidly increasing importance of food and beverage sales within the retail sector, which coincides with a more entertainment based CBD. (2).The extraordinary growth in housing units in the CBD and the growing share, although still modest,of condominium housing units. (3).The commercial and residential development around Block 61(300 West 300 South: Caputo=s,Uffens Marketplace,Artspace,Big City Soup,etc.)complemented by the improved environment at Pioneer Park. The gradual development of this block over the past ten years has been part of the structural shift in both retail and housing. (4).A structural shift in the CBD economy is bound to follow the completion of The Gateway,a mixed use development with over 600,000 square feet of retail,500 housing units and more than 300,000 square feet of office space. Gateway as an Urban Entertainment Center has introduced a bold and controversial concept to the CBD. It=s 7 too soon too detect any impacts on the economic structure or the retail sector but there has been a dramatic impact on the geographic distribution of retail space. (5). The completion of the Grand America Hotel, a 775-room(395 suites)five-star hotel has certainly changed the internal composition of the hotel sector. The quality of this new - hotel is unique to the downtown market and may shift the structure of the hotel market toward higher-end conventions and travelers. $There has been a structural change in investments over the past ten years. At no time in the history of the CBD has there been more public investment. About$425 million in new investment which includes: RDA assistance to various projects,Matheson Courts complex, Salt Lake Public Library, expansion of the Salt Palace Convention Center,Rose Wagner Performing Arts Center and new planetarium. TRAX represents another$430 million and although that investment is spread throughout Salt Lake County the benefits nevertheless disproportionately favor the CBD. SThere has been a shift in the location of restaurants and housing. Of the 25 new restaurants added to the CBD since 1990, 15 or 60 percent are located west of West Temple. Likewise of the 1,354 housing units built since 1990,970 or 70 percent are located west of West Temple. Thus,the concentration of restaurants and housing within the CBD is shifting west. SOf ice space square footage on Main Street doubled during the 1990s due to the completion of four large office bufidingsCGateway West,Joseph Smith Memorial Building,One Utah Center and Wells Fargo Center. At the beginning of the decade there was approximately 1.5 million square feet of office space on Main Street and by 2001 it had increased to 3.0 million square feet. SThe 2002 Olympics have the potential of changing the structure of the CBD economy. First, the Olympics were one of several factors that induced the extraordinary public and private investment. Second,the Olympics brought a concentration of new investment to the hotel sector as well as world-wide exposure to Salt Lake City that,it is hoped,will stimulate long-term growth for the CBD=s tourist and convention business. Third,the Olympics were important in encouraging the expansion of entertainment options,particularly the addition of new clubs and restaurants. And fourth,the future 10-acre Olympic park will provide an important public amenityCnearly doubling open public spaceCand further broaden the CBD=s public infrastructure. 8 III.CBD Economy:Employment and Wages,Land Use and Ownership Over the past forty years,Salt Lake City=s CBD has been the subject of a number of studies beginning with ADowntown Salt Lake City-Second Century Plan®published in September of 1962. All of these studies have focused on planning,transportation or retail strategies for downtown,none has examined in any detailed or comprehensive way the economy of the CBD. In contrast,this study focuses exclusively on the economy of the CBDCits performance and changing characteristics and structure. A.Employment and Wages In summary: $During the 1990s employment in the CBD increased from 49,100 to 60,975,a respectable annual growth rate of 2.0 percent. Office employment,with over 51,000 employees, dominates the CBD economy. Retail employment including restaurants accounts for about 6,600 jobs. $The Church of Jesus Christ of Latter-lay Saints is the single largest employer with 7,000 employees. The government sector,including city,county,state and the federal government,has about 6,000 employees. $Employment is highly concentrated in the CBD.Sixty percent of the employment is located in the 10 blocks extending from North Temple to Fourth South and bisected by Main Street. The most basic or fundamental measure of the CBD economy is total employment. Total employment in 2001 is estimated to be 60,975. These employees work in several types of establishments:offices,malls,freestanding retail(non-food),restaurants,hotels,manufacturers and miscellaneous establishments. Office workers are the dominate category of downtown employment. Eighty-four percent of all workers are employed in office buildings while only 10.7 percent are employed in retail establishments(malls,freestanding retail and restaurants). About 3 percent of all CBD employees work in the hotel sector. The few hundred workers in manufacturing establishments are concentrated primarily in the publishing and newspaper industries while miscellaneous establishments includes employees at the Delta Center,Salt Palace, Family History Library,Museums,Symphony Hall,etc.,see Table 1. Since 1990 employment in the CBD has increased at an average annual growth rate of 2.0 percent compared to 4.0 percent for both the State and Salt Lake County. Total employment has grown by about 25 percent or 11,825 jobs. Employment growth has been tied to an expansion in office space,new free standing restaurants and The Gateway. Office employment increased by about 9,350 jobs followed by employment growth at restaurants of 1,125. The absolute and percentage change in employment by each category is shown in Table 2. 9 • Table 1 Employment Estimates for CBD-2001 ;$?3,�•�%r/3::1...Nt.,>.'¢,33.,''•�3�r %;?`�?�icH.,ib ;i..rt,^'.3::� :„'^:<>,..�.,.:.;-'t: ,', !'.:, .,p{�.y_r7777,717TIV-i..ic.,- ;al /'>i>. t .c / i £ fr-/ .tni/ y, - _.; - ; is <! r _ z 5 a £t 6 ?R ; :+:>?irrrS �.. {. Office 51,350 84.2% Restaurants 4,475 7.3% Retail(Malls and Freestanding Retail) 2,100 3.4% Hotels 1,800 3.0% Manufacturing 500 0.8% Miscellaneous 750 1.2% Total 60,975 100.0% Source:Bureau ofEconomic and Business Research,David Eccles School of Business, University of Utah. Table 2 ir.vvwv Estimated Change in Employment in the Central Business District >��fr'•� :Sal?% ��3 p�. /''>)/r,�'. r! /. la �l, •.y , . / ; t{v!4 # r g4R7 l ! .lr >�":vtd 1ii7,-;,:i ;,4,L..; ,,;/ jrl vF 5 : �.s �z ..:;r,,..:.,....,,». .,.». 2;..�xi rfnc �,:.;:.� r�iis,.br�.S ..�_r:../'riw.;x:•l Office 42,000 51,350 9,350 22.3% Hotels 1250 1,800 550 44.0% Manufacturing 500 500 0 — Restaurants 3,350 4,475 1,125 33.5% Retail 1,550 2,100 550 35.5% . .... ... I 500 750 250 50.0% Total 49,150 60,975 11,825 24.0% Source:Bureau of Economic and Business Research,David Eccles School of Business, University of Utah. 10 Although employment has increased in recent years the CBD=s share of total countywide — employment has declined as the rapid growth in suburban areas has outpaced employment growth downtown. In 1990 the CBD accounted for 13.1 percent of countywide employment. By 2002, the CBD=s share had dropped to 11.0 percent. Total wages paid to workers in the CBD in 2001 were approximately$2.0 billion,of which more than 90 percent were paid to office workers. As was the case with employment,the CBD=s share of countywide wages has fallen since 1990,declining from 13.0 percent to 10.5 percent. The average wage for a downtown worker in 2001 is estimated to be$32,500 compared to the countywide average of$34,500. Over the past eleven years,in current(inflation adjusted) dollars,the total wages paid in the CBD have increased from$1.3 billion in 1990 to an estimated $2.0 billion in 2001. Estimated wages by employment category are given Table 4 Table 4 Wages Paid in the CBD in Millions (Current 2001 Dollars) Office $1,235.7 $1,820.0 47.3% Restaurants $28.1 $46.0 63.7% Retail(nonfood) $20.8 $28.7 38.0% Hotels $16.4 $30.1 83.5% Miscellaneous $15.0 $26.8 78.6% Manufacturing $12.7 $14.0 10.2% Total $1,328.7 S1,965.6 47.9'% Source:Bureau of Economic and Business Research and Utah Department of Workforce Services. B.Employment by Block The spatial distribution of employment in the CBD shows a relatively high concentration of employment within a few square blocks. There are 41 blocks in the CBD but nearly 60 percent of all employment is located in the 10 blocks extending from North Temple to Fourth South and bisected by Main Street. Block 88,the headquarters block for the Church of Jesus Christ of Latter-day Saints has the highest employment of any blockC6,750 workers. The block-by-block employment numbers include all categories of workers with the exception of freestanding retail. Due to the large number of small retail shops and restaurants in the CBD it was not possible to include each establishment in the estimates,however,the total number of employees in this group represent only about 5 percent of CBD employment. One more note 11 about the dataCoffice employment represents potential employment at full occupancy of office buildings. Since office vacancy rates can fluctuate dramatically it was deemed appropriate to use potential office employment. Therefore, the total employment estimates at the block level differ slightly from overall employment estimates in Table 1. Employment by block is shown in Table 5 and Map 1. Table 5 Blocks Ranked by Employment-Top 20 :<�lr.:.,_{'FrrF qr>5?s' y5::s�"�$.;f?i i}},':rvi}P•. .3.'rr'.?�'fi<'a'ri5>!r .:t�.,3 `.%) :'' �:':X#+6�?'�•:f:" ;h q �'i:s'�•v'i ',:,,'y�rrrr/�r��{, •� i• $::;: 2 Y::+:?..•... '.f ''•I}.••:/'j"'''•r'•y'.f•'.:.:;:; :;:;:•;`•: F c; i r� °i S •uFt;v.$ kk°i� 'r'rrk 2 s:>.:? +' e 4'h � 4 •;':.... v •9 t f •:r,-; ..:oY` if rtr,.+in'Sc``'H f!:,::sd� `SY�C �y, %t 1,.,..;S.,t ,?:?<>.:{ ,;yf •ty.;{ :::�'�%{� iiJ i?)::/i:.L:1 30•yi.';';.:.}, srr.>::; :?'','.;9':' :>h:', ,;�. ...t+d. ..r ftS:>%?s>:n.r. � •r : �+ {r.,..£: ;,:;!;rr"..` 3. �3.... v :jf:• .. iil!�: <:��.�./'4 .•Y,.?c:r,'•,'• /rS, .r�.r� hl:?�7.{r, n?)l A rrr +i� :f,L• '..' / f:.•;,.•r:: :z} /,r i;�:�.!w: .s�•�!•i!ri �;}f��. �'• ..t.;j•.:;;�:..:::•; 5T �-�ii":i ••Y�,'.4: v»a». .'.''s:f %'L ..;;fs! :: .x.;.: �r+L:u:!r<!..3r! f} b ""F: };r•.•:f.. ::�:::;::?N:l�??��?�%:. f;�:;:;::?Yy'rr{{le';4';'�xl•'n.. ?':f 1 88 6,750 12 51 2,050 2 - 75 6,200 12 56 2,050 3 57 5,450 14 58 2,000 4 76 3,875 15 53 1,950 5 71 3,450 16 74 1,750 6 80,83 3,000 17 55 1,450 7 70 2,905 18 39 _ 1,350 8 69 2,900 19 38 900 9 72 2,650 20 66 900 10 52 2,500 Remaining 21 blocks each have less than 900 10 84 2,500 emp. Source:Bureau of Economic and Business Research,David Eccles School of Business,University of Utah. 12 CBD EmpoymMnatpb y1 B ock-2002" S .e:vg'g':5:779air7 gAYY Y ncit ' r' "F ihatigi rot, d . „.„.„,... jaC[,...,„ ,... .,..., A>OR � 4111't::‘, idUf 'Y—"-.... . - .......,,,...:".„,,,,,. ,„„,,:,,:,,„....,:,:,,:,,,,, ,,z,„,,,:„:„„„,„,„ ...,.. ,,:,,,„, :„:„,„„,„,,•„:„•,„„„,„,„ 1„,,,,.„„, „ 77= iiPagi; 3 h` � � t L rli �� �%Mp mio ,,,,,, 7m7:7 17 gzi , ,...,,,,,.. , — „,-, , s,.. 3tt ,:,.::•„„: ,„„„,„ :,:„,,:„.„:,, , • , . c C�..k�:.,3�S .�.., "A ., r^`,a. E o-.z .. ,T,r3 Naga, vii4teg 1„,:in mr,:m y „ . S�Si "Employment estimates assume"full occupancy of office buildings. Source:Bureau of Economic and Business Research David Eccles School of Business,University of Utah. I iUI { C. Land Use and Land Ownership in the Central Business District Land use statistics show that office space ranks as the number one type of land use. Nearly one out of every five acres in the downtown area is used for office space. Retail use ranks a distant second. The 35 acres classified as Aother@ includes a fair amount of vacant land scattered throughout the CBD. Keep in mind that land use differs from land ownership. Therefore, Table 1 below shows that government use of land totals 33 acres but Table 2 shows that government owns 94 acres. Government owned land has several uses including civic, open space and housing. Table 1 Approximate Land Use by Type of Use ,� t? oj • +ram}.'. f '}}^;...,:..+ v :•y<:n%t �I';:<'«?.::.:. S`%:.., :/;:: .+n%:::+:k „-,...v":N:. :>::':'G;"is:vr;a ;:J.4at;:;�L}G ..,;a:;: r'% Office 67 19.3 Retail 46 13.2 Other 35 10.0 Government 33 9.5 Civic 30 8.6 Hotels 25 7.2 Church 25 7.2 Commercial 23 6.6 Parking Structures • 21 6.0 ' and Lots Open Public Space 20 5.7 Housing 12 3.4 Industrial 11 - 3.2 *About 85 percent of CBD acreage is included in Table 1. Those blocks that are only partial blocks in the CBD were not included. Source: Salt Lake County Assessor=s Office. Although it=s been 155 years since land in the CBD was first distributed by Brigham Young and _ 14 Heber C.Kimball,current ownership patterns continue to emphasize the unique relationship between the LDS Church and the downtown economy. Presently,the LDS Church owns about 78 acres or 19 percent of the land in the CBD. These holdings are comprised primarily of the headquarters block(Block 88),Temple Square(Block 87),Church History Museum and Family Library block(Block 86),the Olympic Medals Plaza(Block 85),much of Blocks 75 and 76 (ZCMI and Crossroads blocks)plus scattered sites throughout the CBD. The relationship of land ownership to economic development is beyond the scope of this baseline study,but without doubt the LDS Church has been the primary economic force in the downtown economy due,in large part,to substantial land holdings. Governments also own a large share of the land in the CBD. Federal,state and local governments own 94 acres or 23 percent of the land in the CBD. The remaining 238 acres are privately owned,see Table 2 and Chart 1. Table 2 Land Ownership in the CBD Privately Owned 238 58.0 LDS Church 78 19.0 Salt Lake City 38 9.3 RDA 15 3.7 Salt Lake County 21 5.1 State of Utah 17 4.1 Federal Government 3 0.8 Total 410 100.0 Source:Salt Lake County Assessor—s Office,property management offices of Salt Lake City and Salt Lake County,Department of Facilities and Construction Management,State of Utah and Zions Securities Corporation. 15 Chart 1 Land Ownership in the CBD State % odors'Gov't I% RDA 4% • • .1' M Private & Other ®LDS Church E S.L. City ®RDA ®S.L. County IN State ■Federal Source: Salt Lake County Assessor's Office,RDA of Salt Lake City, Property Management Offices of Salt Lake City and County,Utah Department of Construction and Facilities Management and Zions Securities. 16 I D.Methodology for Deriving Employment and Wage Estimates The Utah Department of Workforces Services is typically the source of employment data. — However,in the case of the Downtown Alliance=s CBD,the geographic area is too small for reliable Workforce Services=estimates. For example,Workforce Services uses boundaries for the ADowntown Community®which extends to 1300 South and 700 East,an area much larger than the CBD. Therefore,it was nereccary to develop a methodology that would produce employment estimates for a relatively small geographic area.That methodology was based on ratios established between type of use and number of employees. Office employment-Office employment was derived from the relationship between office square footage and employment. Office market real estate agents at two of the leading commercial real estate firms in Salt Lake City(CB Richard Ellis and Collier=s Commerce CRG)were asked to estimate the number of office workers per square foot. In addition,Karen Wikstrom of Wikstrom Economic and Planning Consultants,Inc.was also consulted. Wikstrom Economic and Planning Consultants has had experience with the downtown economy and in 1990 completed a study for UTAYegarding TRAX alignment. The study produced employment estimates for the CBD. Using these three sources the following consensus estimates were used in this study: (1)One office employee every 600 square feet- For selected government offices to include City and County Building,Federal Reserve Bank and Frank E.Moss Federal Courthouse. (2)One office employee every 225 square feet- Office buildings built prior to 1990. (3)One office employee every 200 square feet- Office buildings built post 1990. All sources noted enhanced space efficiencies in new office buildings. These relationships were then applied to the square footage of office space in the CBD in 1990 and 2001. There are currently an estimated 13.3 million square feet of office space in the CBD. In 1990 the estimated square footage was 10.2 million square feet. The total square footage of office space was adjusted,both in 1990 and 2001 by the vacancy rate,which in 1990 was about 13 percent and in 2001 about 11 percent. The vacancy rates reflect vacancy in office buildings for lease, owever,there is 4.5 million square feet of office space that is either institutional or owner7user(Church Headquarters,City and County Building,etc.). For institution and owner/user buildings full occupancy was assumed. To determine the growth in office employment between 1990 and 2001 the square footage in the following buildings was used. 17 Table 1 ,� q Office Space Developed Since 1990 :j. %{F,.n .,.,fp � ' :fl.>.K;S£:..,....'I": ..,+:,'Yl.:�i�,'+{. +}:Y':>~'.':�i::}S;l ;:' $:J ,om :.u.:::s";i frw::•:.a a£t ..3+-$s:^....•,. ,{;>{.:: .v .� :y,r :r:% •$v . .::.<:::::::::.:::::........::::..:,.>:+s?>Y..•>,....:.:.::..,i..::.: :,.:::>:: :;�:. :!i' , �:" �:{i ii'ik�ii:;i: 2-i : :.� �%•'{ LI .:,::;::;s:.ksu's:;NcYfstti.:...,•.n.s;:.::xy;{w:kiYiSfa`,��'.vil1.•' aiG4::a'.J.xwiF>. .......:..u.xxi::av/F.:x:.: ::::: �:4...':�'h.i�A>:F:/:GC.. ,r G.;.tv ";{: tfii! One Utah Center 201 South Main Street 1991 419,000 Department of Workforce Services 140 East 300 South 1991 140,000 Broadway Center 111 East 300 South 1992 240,529 Joseph Smith Memorial Building 15 East South Temple 1993 337,400* Social Hall/IRS 150 East Social Hall Ave. 1996 161,146 Deseret News 30 East 100 South 1997 90,000 Gateway Tower West South Temple and Main 1998 279,875 Wells Fargo Center 300 South Main Street 1998 535,270 Matheson Courts Complex 450 South State Street 1998 420,000 30 East 300 South 30 East 300 South 1999 23,095 One Gateway. 400 West 100 South 2001 161,000 Gateway(Board of Regents) 400 West 100 South 2001 85,000 Total 2,892,315 *Building is 482,000 square feet but only 70 percent is used as office space. Source: Collier=s International and Bureau of Economic and Business Research,David Eccles School of Business,University of Utah. The seven non-owner occupied/institutional buildings(excluding the Wells Fargo Center)have a total of 1,218,984 occupied square footage. This estimate assumes a vacancy rate of 11 percent. The three owner occupiedfmstitutional buildings(excluding Matheson Courts Complex)have a total of 567,400 square feet of occupied space. However,the conduction of the new office space demolished about 300,000 square feet of existing office space in the CBD. Only the net additional space was used,which totaled 1,486,384 square feet. To this estimate was added the 250,000 square feet of office space used by the Salt Lake Organizing Committee in the Wells Fargo Center. The remainder of the building was assumed to be vacant. A total of 1,736,381 square feet of office space build since 1990 was therefore occupied. At 1 employee every 200 square feet this space yields 8,700 employees. To this estimate was added the additional 300 workers generated by the Matheson Courts Complex bringing the total to 9,000 employees. The final adjustment was a 4 percent increase for shift workers:janitorial, security, etc.,which brings total employment generated by new office buildings built since 1990 to -- a rounded 9,350. 18 Retail Employment-Retail workers were divided into two categories:food and non-food workers. In 1990,Wikstrom Economic and Planning Consultants used 1,000 square feet per retail worker for the non-food category. This estimate was used in the study. For the food related retail workers an estimate of one worker for every 75 square feet was used. This relationship was established through a survey of several restaurants in the CBD. Hotel Employment-The number of hotel workers was derived from an employment survey of hotels in the CBD. The relationship established was between the number of workers in a specific hotel divided by total rooms in that hotel. In the CBD,each hotel room requires 0.6 of a worker. Manufacturing employment-Estimated from firm data in Utah Directory of Business and Industry. Miscellaneous-Includes estimate of employees in facilities such as Salt Palace Convention Center,State Historical Society,Road Home(homeless shelter),Delta Center,History Museum (Church of Jesus Christ of Latter-day Saints),Family History Library,Salt Lake Public Library, Hansen Planetarium,etc. Wages-The Department of Workforce Services was the source of all average annual wage rate data. Wages were determined by multiplying the average annual wage rates for employment sectors by the estimated employment. The estimated average annual wage for office workers was derived from a weighted average annual wage rate for all employees in Salt Lake County in services(excluding hotel workers),trade,government and finance,insurance and real estate sectors. For the non-food related retail workers the average statewide wage for employees in apparel sales was used. For food related retail workers the average wage of those working in the Aeating and drinking@ establishments. Likewise the statewide average wage for AHotels&Other Lodging Places@ was used for hotel workers and the average wage for printing and publishing for CBD manufacturing employment. The average annual office rate was used for employees in the miscellaneous category. 19 IV.An Economic Analysis of Central Business District Sectors The CBD economy has been divided into eight sectors: (1) retail, (2)office, (3)hotels, (4) housing, (5)government, (6)church, (7)financial and(8)entertainment/culture. Each of these sectors will be analyzed regarding their economic structure, trends, strengths and weaknesses. A.:Retail Trade Sector In summary: $Although the retail trade sector, in terms of employment and wages, is not the largest sector in the CBD, it generally receives a disproportionate share of attention and is considered a principal indicator of economic conditions in any downtown area. $In 1996 retail sales peaked in the CBD at$473 million but by 2000 sales had fallen 21 percent to$373 million, (constant 2000 dollars). $What caused the sudden change in retail sales activity? There are a number of factors that contributed to the reversal. First, the expansion of the Salt Palace interrupted the downtown convention business. Second, the reconstruction of I-15, which began in the summer of 1997 and provided even more incentive for county residents to shop in the suburbs Third; construction of TRAX the Gateway West office tower and two underground parking facilities below Main Street resulted in periodic closure of downtown intersections and long-term closure of Main Streetfrom North Temple to 100 South. Fourth, increasing competition from new retail power centers and Abig box®facilities in suburban Salt Lake County. $The mix of retail sales has changed substantially during the 1990s. Department stores sales have dropped nearly 40 percent and by 2000 accounted for only 13 percent of all retail activity. The share of clothing sales has remained relatively constant at about 21 percent Most remarkable has been the expansion of restaurant food and beverage sales, which increased by 103 percent(in constant 2000 dollars). In 2000 restaurant food and beverage sales accounted for almost 30 percent of the retail trade activity in the CBD. Restaurant food and beverage sales now exceed clothing sales in downtown Salt Lake City. $The retail sector has 2 million square feet of leased space. Malls dominate CBD retail with 76 percent of all leased space located in three mallsCCrassroads, Gateway and ZCMI Center. Non-mall restaurants and fast food locations account for about 15 percent of total space while only 9 percent of retail space is free standing non-food retail. $The competition for the retail dollar is intense. In the 1990s there was 4.5 million square feet of new retail space developed in the county. Thus, in the past ten years the amount of new retail space added in the suburbs was more than double the total retail space developed in CBD over the past 150 years. Countywide the inventory of retail space is nearly 22 million square feet. The CBD accounts for less than 10 percent of total retail space countywide. 20 The retail trade sector has important linkages to the entertainment,lodging,office and housing sectors and thereby contributes to the vitality and diversity of the CBD. The importance of the retail sector is pervasive and difficult to measure,nevertheless,the best single indicator of the sector's strength is retail sales. For the purposes of this analysis retail sales data include only those categories relevant to downtown retail. For instance,sales of automobiles,gasoline,general merchandise,etc.were not included. The broad retail categories used in the study were:clothing,furniture,fast food,food and eating, drinking and specialty retail(books,stationary,gifts,luggage,sporting goods,hobbies,etc.) The Utah State Tax Commission provides annual data on retail sales activity by type of retail category at the zip code level.2 The two zip codes that correspond closely with the boundaries of the CBD are 84101 and 84111. Annual retail sales data,for the relevant retail categories,in each zip code were combined.3 The sales data show that between 1990 and 1996 retail sales activity was increasing at about 8.3 percent annually. Countywide retail sales activity for the same categories was increasing at 9.9 percent annually. In 1997 a sudden shift occurred,retail sales activity in the CBD began to contract. Over the next four years retail sales fell 21 percent while countywide sales increased 20 percent. Consequently the CBD=s share of countywide sales fell from 18 percent to 11.7 percent. See Tables 1 and 2 and Charts 1 and 2. Sales by Sector-Retail sales data by category show that the restaurant sector has had the best performance in the 1990s. Restaurant sales now exceed clothing,shoes and apparel sales,which would include Nordstrom=s sales but not clothing sold in departments stores such as Meier&Frank, see Table 3. Utah Tax Commission classifies Nordstrom as family clothing. The restaurant sector is the only retail sector in the CBD to come close to maintaining its share of countywide sales. The downtown restaurant sector had 16 percent of countywide restaurant sales in 1990. By 2000,the downtown=s share had fallen to 15 percent due entirely to a weak performance by the fast food sector. The performance of family and theme restaurants has been extraordinary. This sector has benefitted from the addition of over 25 new restaurants in the CBD including seven in The Gateway. Neither Crossroads nor the ZCMI Center have family or theme restaurants,only food courts. Theme and family restaurants are an important distinguishing characteristic of The Gateway.See Table 4 for leased square footage by mall by type of retail activity. 2Wasatch Front,Direct Sales by Zip Code,Utah State Tax Commission,published annually. 3 The 2001 estimates will not be published until August of 2002. 21 Table 1 Selected Retail Sales in the Central Business District (Millions) 'u%:>x' �tF;'.,'�i•�:+�•�,.'Yy:r�sl.f:�iht:hi :�' `� f 8},i �'K,'i�{s k„w.:•.f/Lf�#f.{�.G7.tS,:r ..,.•,,,.. ? . -„ a} :' 3.a ,,,,,,.....l,�....ti.' .n£s:�%,si'>' .:^:z 1990 $267.0 $351.8 1991 $300.9 $380.4 8.14 1992 $297.8 $365.5 -3.92 1993 $332.0 $395.6 8.24 1994 $382.4 $444.3 12.29 1995 $393.9 $445.1 0.18 1996 $430.6 $472.6 6.18 1997 $411.1 $441.1 -6.67 1998 $401.2 $423.8 -3.90 1999 $395.0 $408.3 -3.67 2000 $373.1 $373.1 -8.62 Source:Utah State Tax Commission and Bureau of Economic and Business Research, David Eccles School of Business,University of Utah. 22 Table 2 Selected Retail Sales in Salt Lake County (Millions) 1 ....w.G "LiLL ±� • 1990 $1,500.0 $1,976.8 1991 $1,625.6 $2,057.7 4.1 1992 $1,812.2 $2,223.6 8.1 1993 $1,995.5 $2,378.4 7.0 1994 $2,188.1 $2,541.3 6.8 1995 $2,411.6 $2,724.9 7.2 1996 $2,650.0 $2,908.9 6.7 1997 $2,769.5 $2,971.6 2.2 1998 $2,925.6 $3,089.3 3.9 1999 $3,030.3 $3,133.7 1.4 2000 $3,190.0 $3,190.0 1.8 Source:Utah State Tax Commission and Bureau of Economic and Business Research, David Eccles School of Business,University of Utah. 23 Table 3 Retail Sales by Category in the Central Business District-Constant 2000 Dollars (Millions of Dollars) „•:..fr i:%r'+i,'t . Y+:1V• o ,••.:.,',,,i(.,../.,,.,. i:,:y;.�' „ 'P"a�'�i:.s-.<>ii,i:i:;�?::: :l u:...- W�%. +_ :''j:: :<.. • _'Y " }r7„:-»YYyry!,�,","" ,:>' ''?x ? ,>Y :!4 t "�. 4a' ,71-.q;; ,fil ', Y2j y �'{f ^ya sFi: ;Y 3 �' 11 ' f /+1•'> {l4Yls is K.,S"✓.iR . t , S ' a i $+ rr51f%/ nl_ii�ff S.il$57�tr Yr ' " : s�- .acruj • fnE iYts:; ix. ;lr0C l. ' �,G.iYY:3fA f„fk A.Family Clothing $69.2 $71.4 3.2% Shoes $3.7 $5.3 43.2% 63.6% Apparel Accessories $3.3 $5.4 g $76:2 821..............:::.... 7 7°fa Sutitatal Clthrn Department Stores* . $82.3 $50.0 -39.2% Fast Food $43.3 $37.4 -13.6% Restaurants $53.6 $108.9 103.2% Sporting Goods $20.3 $3.8 -81.3 Books $13.7 $13.7 0.0°/0 Jewelry na $12.6 na $62.3 $64.6 3.7% Other T $351.8 $373.1 6.1% *Estimated amount for Mervyn=s and Meier&Frank. Source: Utah State Tax Commission and Bureau of Economic and Business Research, David Eccles School of Business,University of Utah. • 24 _ Table 4 Distribution of Retail Square Footage in CBD Malls (By Product Category) Clothing 245,237 154,624 36,244 436,105 Shoes 11,433 4,186 13,798 29,417 Department Store 152,728 0 325,785 478,513 Entertainment 0 73,997 0 73,997 Accessories 6,402 12,314 1,161 19,877 FastFood 16,147 7,242 8,459 31,848 Restaurant 0 59,890 0 59,890 Sporting Goods 0 94,726 16,880 111,606 Books 25,000 25,873 12,858 63,731 Jewelry 5,520 1,295 3,312 10,127 Other 95,091 52,666 70,407 218,164 Total 557,558 486,813 488,904 1,533,275 Source:Crossroads Plaza,ZCMI Center and The Gateway. 25 • • Chart 1 Retail Sales in the Central Business District- Constant 2001 Dollars (Millions of Dollars) $500 $450 $400 11 MEM. $350 ■ • ■ • Erg ,$300 III III • :MIIII III • III I IN im 1.1 III $150 , . ■ ■ $100IM � � NI � � � � I SSO , ® ® m ■ ■ ■ ■ , $O I; IN MI MI II II II I 1990 1991 1992 1993 1994 199S 1996 1997 1998 1999 2000 ®Retail Sales Source: Utah State Tax Commission. 26 i!► Chart 2 Selected Retail Sales:CBD's Share Dollars) of Countywide Sales (Millions of Constant 2000 20% 16% .. ,, 14% 10% 8%12% 1996 k 2000 Y• ry 4% CBD's sham fitlsby28% 2%� Y 5 • 1990 1991 1992 1993 1994 199S 1996 1997 1998 1999 2000 — CBD's Share of Countywide Retail Sales Source: Utah State Tax:, ax Commission. 27 Retail Development in Suburban Salt Lake County-Since 1990 the population in suburban Salt Lake County has increased by about 200,000 people. This growth has encouraged the development of nearly 4.5 million square feet of new retail space in the county. Hence,during the 1990s the amount of new retail space added in the suburbs was more than twice as much as total retail space built in the CBD since 1850. Countywide the inventory of retail space is nearly 22 million square feet. The CBD accounts for less than 10 percent of this space. Significant decentralization of retail activity in Salt Lake County began with the development of Cottonwood Mall,the first suburban shopping center to challenge downtown retailing. Cottonwood Mall,an 850,000 sq.ft.Aclimatized®shopping center was built in 1962. The development of Cottonwood Mall was Asomething of a trauma to Salt Lake City=s traditional downtown shopping enclave.®' Since then there have been six other regional malls built in suburbs of Salt Lake County. With the recent 225,000 square foot expansion at South Towne there is currently 4.8 million square feet of retail space in covered malls in Salt Lake County. About 25 percent of this covered space is in the ZCMI Center and Crossroads Plaza. But covered,climatized malls have fallen out-of-favor with retailers. There has not been a climatized regional mall built in Salt Lake County since South Towne in 1985. The retail trend of the 1990s has been Apower centers®. Power centers are retail developments often anchored by large value-oriented retailers such as a Target,Shopko,or Wal-Mart surrounded by hundreds of thousands of square feet of additional discount retail. Several power centers have been developed in Salt Lake County in the 1990s,adding more than 2.5 million square feet of retail. Another retail concept getting considerable attention in recent years has been the stand alone Abig box@ retailers(over 100,000 sq.ft buildings). This is not a new concept but certainly one that retailers have shown more interest in during the I990s. The first Abig box®retail in Salt Lake County was Sears(100,000 sq.ft.)built in 1962 at Main Street and 800 South. Bnrart used the concept at several county locations in the 1960s and 1970s,followed by R.C.Willey,and more recently by Costco,Home Depot,and Lewes Home Improvement. Between 1962 and 1990 there were nine big box retail facilities built in Salt Lake County. Since 1990 there have been another twelve added for a combined 1.9 million square feet of retail space,see Table 5. The extraordinary increase in suburban retail spaceC4.5 million new square feet in power centers and big boxes since 1990Chas shifted the Aheart of Salt Lake County=s retail®to the Sandy/Murray corridor. This area includes two regional malls:Fashion Place and the South Towne,two power centers:Fort Union Family Center and Park Center and hundreds of thousands of square feet of retail space located in community shopping areas and big box retail. The Sandy/Murray corridor has an estimated 7.0 million square feet of retail space,which is about one-third of the 22 million square feet of retail space in the county. 'Robert H.Woody,Salt Lake Tribune,July 7,1968. 28 Table 5 Regional Malls,Power Centers and Selected Blg Box Retell In Salt Lake County-Gross Leaseable Retail ................................................................................................... Regional FOWItteenteritr., ., • .::° Elfg ltelell Btl dIA" eat Yr s t3LA Cottonwood Mall 1962 850,000 Fort Union Family Ctr. 1979,1995 687,000 Prior to 1990 — 1.1 mil 4835 So.Highland Dr. 7200 South 1300 East 9 Big Box Retail Valley Fair 1972 640,000 Mid Valley Family Ctr. 1982 960,000 Samos Club 1990 135,000 3500 So.2700 West 5600 South Redwood Rd 6525 So.State St Fashion Place 1972 976,000 Ctoastowne 1989 251,000 R.C.Willey 1991 310,000 6300 South State 5400 South Redwood Rd 2400 South 300 W. Trolley Square 1972 240,000 Park Center 1990,1995 486,000 Highpoint 1993 247,000 700 East 600 South 7000 South 1300 East 1997 7800 South 1300 East ZCMI Center 1974 550,500 Sugarhouse Center 1991 342,000 Hidden Valley S.C. 1994 175,000 36 South State 2200 South 1300 East 1300 East 12800 So. Crossroads Plaza 1980 620,000 South Twn Mkt Place 1996 295,000 mart 1995 110,000 50 South Main 10400 South State St 1442 West 9000 S. South Towne 1985 980,000 Downtown Family Ctr. 1996 230,000 Lowes Home Imp. 1995 110,000 10600 South I-I5 400 South 600 East 4500 S.Riverside Dr. The Gateway 2001 650,000 Commons at Sugarhouse 1998 182,000 Home Depot 1995 125,000 400 West So.Temple 2100 South 1100 East 2100 South 300 West Jordan Landing 2000-2002 800,000 Cement Village 1995 204,000 Bangerter and 7600 So. 10425 South State Jordan Commons 2000 200,000 Fred Meyer 1996 106,000 9000 South State Street 9000 So.Redwd.Rd. Costco 1996 180,000 11100 So.Automall Home Depot 1998 120,000 4600 South 4000 Castro 1997 120,000 1800 South 300 West Total Sq.Ft 5.5 mil 4.3 mil 3.0 mil Source:CB Richard Ellis. r Many of the power centers developed in the 1990s have included multiplex theaters. A total of 72 screens in multiplex theaters have been added in the suburbs in the past five years. The multiplex theater phenomenon is an example of the formidable retail/entertainment competition faced by the CBD from the suburbs. To recapture the CBD=s once thriving movie market,which included the Center Theater,Utah 1 &2, Lyric, Broadway, Studio,Rialto and Crossroads Movies,will take more than the six screen multiplex at Broadway Center Cinema. The addition of the 12 screen Megaplex theaters at Gateway will improve the competitive position of the CBD. Whether it=s movies, clothing, furniture or restaurant food the competition for retail spending in Salt Lake County is intense and without a competitive response downtown retail faces future years of sluggish retail sales and further erosion of its retail position. The Gateway-In a number of ways The Gateway has the potential of being a significant competitive response to suburban retail. It represents the first large expansion of retail space in the CBD since the completion of the Crossroads Plaza in 1980. The Gateway increased the inventory of retail space in downtown by one-third and just as important nearly 60 percent of Gateway=s space is occupied by retailers that are new to Salt Lake County. Unlike Crossroads and ZCMI,which are strictly retail malls,The Gateway is a mixed-use development,which includes housing, commercial, retail and entertainment. The concept of Gateway is that of an urban entertainment center(UEC),a concept which has been successful elsewhere in revitalizing downtown retail,bringing suburban residents to the CBD and getting tourists to stay longer and spend more. UECs Mend to offer a combination of entertainment,dining and retail with a pedestrian-oriented environment@.5 In addition to 74,000 square feet for movie theaters and 60,000 square feet for dining, Gateway will also be the location of the new planetarium. In total space the new planetarium will be twice as large as the existing Hansen Planetarium and will have a star Theater(206 feet high and 55 foot dome), as well as a 270 seat,IMAX theater. By 2004,the Children Museum, another entertainment option, will open a new$25 million facility in Gateway. No other mall in Salt Lake County or for that matter the state includes entertainment as an important component of their marketing concept. The Gateway with its Anew to Utah@ retailers, entertainment options,restaurants and interactive retail improves the competitive position of the CBD. The Gateway and the two downtown mallsCCrossroads and ZCMI CenterCdominatedowntown retail. Slightly more than 76 percent of all retail space in the CBD is located in Crossroads,Gateway and ZCMI Center. Non-mall restaurants and fast food locations account for about 15.percent of total retail space while non-mall retail has nearly 9 percent of retail space in the CBD, see Table 6 and Chart 3. 5Developing Urban Entertainment Centers, Urban Land Institute, Washington D. C. 1998. 30 Chart 3 Distribution of Leased Retail Space by Location (Central Business District) rN, 1 k..» CY `'� C 4>i 9� Z k -r d T C"Sv W& �� aC iZ. _..daiiiiii mk. ■ZCMI Center Mail 0 Crossroads 0 Gateway 0Non-mall Retell• Non-mall Food 31 p Retail Demand in the CBD-The three components of retail demandCresident population, CBD employment and tourism/conventionsChave experienced relatively modest growth since 1990. Since 1990 employment in the CBD has increased from 49,000 to 61,000, an annual growth rate of 2.0 percent. Population growth has been even slower at 1.3 percent annually. Unlike population and employment,the tourist/convention business expanded rapidly during the early part of the 1990s but in recent years the number of convention attendees and nights booked has • declined. At first blush,the nearly captive convention market would seem to be a significant potential market for retail sales. However,conventioneers contribute little to total retail sales in the CBD. Of the$373 million in retail sales in 2000 in the CBD,conventioneers accounted for no more than 5 percent or$17 million of these sales. In addition,the business and leisure traveler may generate, at the most, another 10 percent or$37 million. At the upper bound or most optimistic level, travelers may account for$55 million of the$373 million in retail sales in the CBD. With no more than 15 percent of total retail sales,the travel industry can not be counted on to significantly change the level of retail sales in the CBD. The surrounding population in Salt Lake City and south Davis County, downtown workers, and the travel industry are all important to downtown retail sales but none are experiencing rapid growth. If the demand for downtown retail is to expand significantly,new and dramatic retail additions are needed to entice suburban households to spend more of their time and retail dollars in downtown Salt Lake City. Often public officials refer to the role that new housing in the CBD will play in revitalizing retail. Unfortunately,it would take a quantum leap in the number of new housing units and households in the CBD to make much difference in overall retail activity. If the 2,600 households now living in the CBD had average income levels of$50,000 and made all of their expenditures in the CBD for restaurant food and beverages,apparel, entertainment,furniture and specialty items(books, sporting goods,etc.)these expenditures would account for about 5 percent of total retail sales in downtown. This is not to diminish the role of new housing development in revitalization of the CBD. New housing is crucial for number of reasons but as an engine of expanded retail sales it will not be sufficient to support much new retail activity. At the end of the day,retail revitalization will depend on increased spending by residents of Salt Lake City and suburban households in the CBD. Strengths of the Retail Sector (1). The number of retail choices. In the roughly six square blocks of the CBD there are more than 250 different retail establishments(excluding fast food restaurants). Downtown retail must be dynamic and this dynamism creates competition and choice. The CBD in 2001 has three times as many retail choices as it did in 1970. Although the extent of retail competition may be a negative for some retailers for the consumer it is a positive market characteristic. (2). The Gateway's forty"new to Utah" retailers, 12 screen megaplex, physical structure and environment. The Gateway introduction to the CBD and the State of the Urban Entertainment Center concept. 32 (3). The increase in new restaurants throughout the CBD,which complement the entertainment sector. (4). The commitment by the LDS Church,Downtown Alliance,private individuals and — corporations and the Mayor of Salt Lake City to improving the retail environment of the CBD. Weaknesses of the Retail Sector (1). There are a number of perceived weaknesses of downtown retail that are frequently cited. They include:streets are too wide,blocks too long,obsolete configuration of malls,no"social space"or feeling of gathering,wrong retail mix,disparate goals among individual retailers,too few local retailers,too many chains stores,etc. (2).Measuring or even assessing the impact of any of these perceived weaknesses is impossible. (3).Rising retail vacancy rates. (4). Perhaps the biggest challenge for the CBD is decentralization,that is,retail competition from the suburbs. (5).Sunday closing of the ZCMI Center. (6).The possible loss of Nordstrom. The best outcome would be a major renovation of the Crossroads Mall and a Main Street presence for Nordstrom. The worst outcome would be for Nordstrom to leave downtown. With$37 million in sales Nordstrom accounts for 10 percent of the CBD's retail sales and dose to S200,000 in sales tax revenue for the city. Nordstrom also has important synergistic effects on downtown retailers in terms of the mix of retail and Nordstrom is a destination retail establishment that has the ability to draw shoppers to the CBD. Without Nordstrom its is very likely that Salt Lake City residents as well as residents in communities to the north,in Davis and Weber Counties,will spend fewer retail dollars in the CBD 33 B. Office Sector In summary: $The office sector dominates the economy of the CBD. Over 80 percent of all employees work in the 13.3 million square feet of office space. Since 1990 over 2.9 million square feet of new office space has been adzipd to the downtown market. The single largest addition in the past twelve years was the Wells Fargo Center(originally American Stores - .flower)with 535,270 square feet, completed in 1998. $Thirty-six percent or 4.8 million square feet of office space in the CBD is institutional or owner/occupied The relatively high percentage is due to the nearly 1.4 million square feet of office space owned and occupied by the Church of Jesus Christ of Latter-day Saints for administrative functions. $The CBD office market at year-end 2001 had a vacancy rate of 10.9 percent, which includes the space recently made available in the Wells Fargo Center. The total square footage available was 735,000 but this amount does not include the 174,000 of square feet of vacant subleased space recently released on the market A weaker economy, corporate mergers and downsizing along with new office construction at Gateway and vacant space at the Wells Fargo Center have combined to drive vacancy rates up to their highest level since 1994. Consequently very little new office space in the CBD is currently under construction. The only building under construction is a 108,000 square foot building at The Gateway, 200 South and 400 West. $In addition to vacancy rates, absorption of office space is another important measure of market conditions. In the past four years the CBD has been able to absorb 575,000 square feet of space. In 2001, the CBD absorbed 354,00 square feet of space, certainly a positive sign for the office market. $The third measure of market conditions is lease rates. Sluggish increases or declines in average lease rates are an indicator of a weak market. At the end of 2001, there were no signs; with respect to lease rates, of a distressed market. Despite rising vacancy rates lease rates have actually increased slightly in the past year. The average lease rate for office space in the CBD has increased by about$1.00/square foot. Since 1995, the average annual growth rate in the average lease rate for CBD office buildings was 6.3 percent. The average full service lease in downtown is currently$18 52/square foot Class A space is$22.51/square foot. 34 One of the most recent additions to the downtown office marketCthe renovated Brooks ArcadeChappens to be the second oldest surviving office building in the CBD.6 The Brooks Arcade built in 1891 is currently undergoing extensive renovation and expansion to become the national headquarters for Alphagraphics. Since 1891 there has been about 13.3 million square feet of office space built in the CBD. The most significant early office tower in the CBD was the sixteen story Walker Bank Building completed in 1912,which,at the time,was the tallest building between Kansas City and the West Coast. Fifty years later,the height of the Walker Bank Building was finally surpassed,with the completion of Gateway Tower East(Kennecott Building) in 1962. Soon thereafter came the University Club building in 1966 and in 1973 the tallest and largest office building in the CBD,the Church of Jesus Christ of Latter-day Saints headquarters building with 980,000 square feet of office space. For the most part office development in the CBD was steady but unspectacular from 1891 to 1970,see Table 1 and Chart 1.1 Over the last thirty years approximately 8.5 million square feet of office space have been added to the market. The growth in square footage by decade shows that the 1980s was the decade with the greatest absolute and relative increase in new office space. The absolute increase in office space was 3.5 million square feet,which represented a 53 percent increase in the inventory of office space in the CBD. New office construction slowed down in the 1990s,nevertheless over 2.6 million square feet of new space was added,increasing the inventory by 22 percent. Decade Increase %Chg. 1970's 2,257,925 50% 1980's 3,562,378 53% 1990's 2,6,46,315 22% Types of Office Space-The 13.3 million square feet of office space in the CBD is divided into four categories.' Estimates of the distribution by category are given below: Class A 33% Class B 19% Class C 12% Institutional/Owtier- 36% occupied —60n1y the Eagle Emporium gion%FuatNationd Bank d 102 South Main Street),built in 1864 is older.The recently renovated'Carrick Buildingat236 Main Street was built in 1887,however,due to its relatively small a¢o,less than 10,000 square feet,the'Carrick Building was not included in the office market inventory. 7wrth the exception of the 1906 to 1912 period when 1.1 million square feet of space was added to the CBD. The d.. •,,e.at of the Exchange Place District,due in large part,Ato the efforts of Samuel Newhouse to establish a non Mormon business section at the south end of Salt Lake—s central business district®(The WeKdde of Salt Lake Ciry by John McCormick,Utah Historical Society,1982).The exchange place district includes the Boston Building,Commercial Club,Felt Building,Judge Building, Newhouse Building and acmes the street cue federal/post office building(Rank E.Mon Building). 0Defmition from Collier—International.Buildings that meet two or more of the following conditions typically wit be placed in the category listed below. Class A-75,000 SF or greater,10 yeas or newer,lease rate$19 full service/year or greater Class B-74,999 SF or smaller,10 years or newer,lease rate 515 full service/year or greater. Class C-20,000 SF or greater,any age,lease fate$10 full servicdyar or greater 35 CBD Office Buildings by Year Built (Includes Institutional and Owner/User Space) .� n. •C t etaOra '' r. r R,.>. Eagle Emporium(Zion=First National Bank) 102 South Main Street 1864 15,000 Broola Arcade 300 South State Street 1891 30,000 - Crane Building 307 West 200 South 1893 35,000 City/County Building 451 South State Street 1894 533,000 HendersonBuilding 375 West Second South 1898 20,000 Herald Building 165 South Main Street 1905 25,700 - 139 East South Temple 139 East South Temple 1906 65,778 Frank Moan Federal Building 350 South Main Street 1906 210,000 Firestone Building 175 West 200 South 1908 64,000 Salt Lake Hardware 105 North 400 West 1908 220,000 Boston Building 9 Exchange Place 1908 78,194 Commercial Club 32 Exchange Place 1908 55,195 Felt Building 341 South Main Street 1909 38.537 Judge Building 8 East Broadway 1909 74,776 Newhouse Building 10 Exchange 1909 87,000 Westgate 180 South 300 West 1909 200,000 Deseret Belding 79 South Main Street 1910 135,000 Rearms Belding 136 South Main Street 1910 145,904 Walker Center 175 South Main Street 1912 128,528 LDS Church Headquarters 47 East South Temple 1917 60,000 Clitt Building 10 West 300 South 1920 79,712 Tribune Building 143 South Main 1924 76,000 Ford Motor Building 414 West 300 South 1925 80,000 200 East South Temple 200 East South Temple 1930 57,000 Exchange Plaza 51 East 400 South 1930 30,000 One Main Plaza 111 South Main Street 1937 80,000 Temple View 57 West So th Temple 1940 48,284 Qwest 80 South State Street 1947 150,000 Crandall Building 10 West 100 South 1950 50,000 American Investment Bank 200 East South Temple 1950 54,000 55 South State 55 South State 1952 60,992 Federal Reserve 120 South State Street 1957 60,000 Questar 180 East 100 South 1960 220,000 Courtside 231 East 400 South 1961 55,000 -- I 36 Gateway Tower East 10 East South Temple 1962 309,714 One Main Plaza 115 South Main Street 1963 75,000 Wallace Bennett Federal Building 125 South State Street 1963 360,000 136 East South Temple 136 East South Temple 1966 216,976 Wells Fargo Building 405 South Main 1967 131,000 J.C.Penny 310 South Main Street 1971 233,890 - Utah Power 60 East 100 South 1972 37,089 Broadway Pharmacy 250 East 300 South 1973 45,000 LDS Church Office Building J 50 East North Temple 1973 1 980,000 SNI 275 East 200 South 1974 47,205 Deseret Book Building 40 East South Temple 1975 44,010 275 East South Temple 275 East South Temple 1976 26,367 American Plaza I 47 West 20Q South 1976 55,341 - Beneficial Life Tower 36 South State 1976 296,000 Westpoint 254 West 400 South 1976 19,980 - Kitton McCoolde 330 South 300 East 1977 21,150 American Plaza II 77 West 200 South 1978 63,044 175 South West Temple 175 South West Temple 1979 148,340 American Plaza III 57 West 200 So th 1979 65,056 Brighton Bank 311 South State Street 1979 35,453 Human Services State Government 120 North 200 West 1979 144,000 261 East 300 South 261 East 200 South 1980 21,100 Chapman Pelisses' 155 Sni,tb 300 West 1980 23,608 Key Bank Tower 50 South Main Street 1980 305,309 Qwest 250 East 200 South 1980 305,772 Broadway Building 324 South State Street 1981 180,000 185 South State 185 South State Sheet 1982 166,000 American Towers J 48 West 300 South 1982 53,726 Bank One Tows 50 West 300 South 1983 106,416 Heber Wells Building 160 East 300 South 1983 194,400 Parkside Tower 215 South State Street 1984 191,193 Plaza 349 349 South 200 East 1984 71,500 Triad Center 3,4,5 300 West Natlt Teeple 1984 569,234 -Wells Fargo 170 South Main 1984 248,560 Qwest 205 East 200 South 1984 200,000 37 r.h•.. :::hv.���:,v,,; i :+i.i'.'..:fiii::if..;:::iijivL:i::;:;::Y.?i:::>::ji}:vvviY:ii::r': iii:;�}:_:=i:i:;l ......:::::::. v?.:r ;.-;.................:..... ..;:::..:.......:....:.......:::.. •.,t t??:?.. ....�t�.. tE:•:.::}: •1 era:>:;IMIN...:..:..:.............,.................... ...v......v:{•.'r}tti:•}:4r.�} hFt:'i •�+'.:.+•:•}}tiir,�i$«;};�:::::.ri..•. •:}Ji'..'•:':}y:.::•-••.'•+ 265 East 100 South 265 East 100 South 1985 90,000 257 Tower 257 FAct 200 South 1986 260,234 City Centre 175 East 400 South 1986 207,630 Eagle Gate Plaza 60 East South Temple 1986 366,696 . One Utah Center 201 South Main Street 1991 419,000 = Department of Workforce Services 140 East 300 South 1991 140,000 Broadway Center 111 East 300 South 1992 240,529 Joseph Smith Memorial Building 15 East South Temple 1993 337,400(0 Social Hall/IRS 150 East Social Hall Ave. 1996 161,146 Deseret News 30 East 100 South 1997 90,000 Gateway Tower West South Temple and Main 1998 279,875 Wells Fargo Center . 300 South Main Street 1998 535,270 Matheson Courts Complex 450 South State Street 1998 420,000 30 East 300 South 30 East 300 South 1999 23,095 One Gateway 400 West 100 South 2001 161,000 Gateway 400 West 100 South 2001 85,000 Alphagraphics Building 280 South State Street 2002 70,000 Cl) Gateway(under construction) 400 West 200 South 2002 108,000 Total 13,305,368 (1)Joseph Smith Memorial Building is 482,000 square feet but only 70 percent is used for office space. The remaining 30 percent is space for church services,theater,two restaurants,reception rooms,etc. (2)The Alphagraphics Building is a renovation and addition of the original Brooks Arcade,30,000 square feet The net addition is 70,000 square feet. Source:Colliers Commerce CRG and Bureau of Economic and Business Research,David Eccles School of Business, University of Utah. - 38 Chart 1 Growth of Office Square Footage in the Central Business District-1900 to 2002 (Square Feet) I4,oeo.eeo xx ., a ix eae,aea , __,..,,,,_s,.:::,,,..,..:.:: J iopoopso w..," ., � ( ♦q ♦q 1' 1' 11 y' +q 'S.' ♦q ♦q ♦q ,9 y1 �, 1� y' ,, ,qb ,N• �9 �9 >> S 50 >> • �•O1nce 6gnn Fr • Source: Bureau of Economic and Business Research David Eccles School of Business,University of Utah. 39 I, • The relatively high percentage of owner-occupied single tenant space is due to the nearly 1.4 million square feet of office space owned and occupied by the Church of Jesus Christ of Latter- day Saints for administrative functions. In addition to this space the LDS Church also owns and -- leases another 1.6 million square feet of office space, see Table 2. Of course, the major office presence in the CBD of the Church of Jesus Christ of Latter-day Saints is due to two factors: (1) Salt Lake City is the international headquarters of the LDS Church and(2)early land distribution patterns in Salt Lake City.9 To no surprise, the LDS Church is the largest single owner-occupant of office space as well as the principal office space developer in the CBD. As a developer,the LDS Church has often had the advantage of very low to zero land costs in their office projectsCa considerable financial advantage for any real estate developer. The LDS Church has used this advantage to develop some of the highest quality commercial office space in the CBD. The Gateway Tower East(originally known as the Kennecott Building)was certainly the highest quality office building in the state when it was completed in 1962. Four other large office buildings developed by the LDS Church are also of high qualityCJ.C.Penney building,Eagle Gate Plaza, Social HalVIRS and Gateway Tower West. Undoubtedly,the development of these buildings helped stimulate additional investment by private developers in the CBD. Corporate Headquarters-The headquarters presence of the Church of Jesus Christ of Latter-day Saints has been vital to the development of the CBD. Currently,there are 13 major firms or organizations that have their corporate headquarters in the CBD(excluding banks, see Finance Sector), see Table 3. During the 1990s three new headquarters offices were opened in the CBD, however, two of them have since left. Of course, the Salt Lake Organizing Committee for the 2002 Olympics has vacated their office space. But rather unexpectedly,in 1999,the CBD lost what was about to become the major corporate tenant in downtown, American Stores. A year earlier, American Stores had completed their 535,000 square foot office tower at 300 South Main Street and it was 9For example,Ain the summer of 1847 Church apostles were allowed to select their own inheritances mostly property fronting on the Temple Block,and at that time Brigham Young picked for himself and family the block immediately east of Temple Square.@ From Dale L.Morgan,AThe Changing Face of Salt Lake City,Utah Historical Quarterly,XXVII(July 1959),pp.209-32. The Ainheritances@ were seized when the LDS Church was disincorporated in 1887 by the Edmunds-Tucker Act. Land near Temple Square was eventually reacquired by the LDS Church in the early 20th century. 40 Table 2 Office Space Owned by the Church of Jesus Christ of Latter-day Saints ••,Z`'i{ll.G yi},:Y. R�y�: s>,>.:,v�:t%":'y,+:>::,,<y;.:•1.;'i•.`i:'�1?:0:1:5'^'?.9i ` �<'+' .::aGrr{#/l.'{J;s*t;.:.".5:•;•:.:F��:.'•E::Yfiv':.,.,{53+.. y?;,�...�a..i3:��� 4;�"n. •Q,. %^'•ti Owned and Church Occupied LDS Church Headquarters 60,000 Office Building 980,000 Joseph Smith Memorial 337,400 Subtotal 1,377,400 Leased Office Space Gateway Tower East 309,714 J.C.Penney 233,890 Elks Building 65,778 Temple View 48,284 40 East 100 South 37,089 55 South State 60,992 Eagle Gate Plaza 366,696 Social Hall/IRS 161,146 Gateway Tower West 279,875 Subtotal 1,563,464 Grand Total 2,940,864 Source:Property Reserve and Zions Securities of Church of Jesus Christ of Latter-day Saints • 41 Table 3 Corporate Headquarters in the CBD Beneficial Life Bonneville International Church of Jesus Christ of Latter-day Saints Deseret News Envirocare Fidelity Investment(local headquarters) Intermountain Health Care(IHC) Newspaper Agency Corp. Questar Qwest(local headquarters) Salt Lake Tribune Union Pacific(local headquarters) Utah Jazz / American Stores Bonneville Pacific Huntsman Chemical Salt Lake Organizing Committee(Olympics) Alphagraphics American Stores Salt Lake Organizing Committee(Olympics) Source:Bureau of Economic and Business Research,David Eccles School of ff Business,University of Utah. 42 expected that over 2,000 American Stores=employees would be located in the CBD. American Stores would be the first Fortune 500 firm to have their headquarters in downtown Salt Lake City. Unfortunately, the purchase of American Stores by Albertson=s(headquarters in Boise) in 1999 ultimately resulted in an empty office tower by 2000.10 The impact of the loss of American Stores on the CBD was severe, particularly in lost potential. The tally for the loss amounts to more than two thousand direct jobs and$80 million in wages, the forfeiture of significant synergistic affects on the demand for hotel rooms, housing and retail and finally the negative impact on the downtown office market that 535,000 vacant square feet created. For example,if American Stores would have remained in the CBD an additional office tower of 375,000 square feetCdeveloped by Hamilton PartnersCwould be nearing completion on Main Street. Hamilton Partners has postponed their start date indefinitely due to the uncertainty in the CBD office market. The Huntsman Chemical Corporation moved their headquarters from the CBD to a suburban locations and IHC move much of their administrative staff from the CBD to West Valley City. The only new headquarters that has located in the CBD in the past 12 years and remains in the CBD is Alphagraphics. The loss of three major corporate headquarters and the corporate identity that goes with such firms is a serious blow to the CBD and a very troubling trend. Increasing Decentralization of Office Space-Like retail, new office development in the CBD has been surpassed, as one would expect,by office development in the suburbs. As the demographics and economic activity of the county have shifted south so has office space development. A clear and unmistakable sign of decentralization is the increase of attorneys in the suburbs: In 1990,eighty percent of all attorneys in the county had offices in the CBDC 1,450 of the 1,750 attorneys countywide worked in downtown. By 2001,the number of attorneys in the CBD had increased to 1,760 but downtown=s share of the 3,100 attorneys in the county had fallen to 57 percent. In the past few years,the development of new office space for lease(excluding institutional or owner/user buildings)appears to be running at about an 8 to 1 advantage for the suburbs, see Table 4. Office Market Conditions-The CBD office market at year-end 2001 had a vacancy rate of 10.9 percent,which includes the space recently made available in the Wells Fargo Center, see Table 5. The total square footage available was 735,000 but this amount does not include the 174,000 of square feet of vacant subleased space recently released on the market. A slowing economy, corporate mergers and downsizing along with new office construction at Gateway and vacant space at the Wells Fargo Center have combined to push vacancy rates up to their highest level since 1994. Consequently very little new office space in the CBD is currently under construction. The only building under construction is a 108,000 square foot building at Gateway, 200 South and 400 West. 10 n Stores ranked 67th on the Fortune 500 list in 1998. Albertson=s currently ranks 38th on the Fortune 500. 43 Table 4 New Office Construction in the CBD and Suburbs* — r7,7177 � z ' , r E •, tt s•:�s .c� f itt �.� �»�rs '4� r ��ifh�i.4��1 os� .: -_ 1995 14,993 73,611 42,488 131,092 287,514 45.6% 1996 150,000 83,108 223,108 892,472 25.0% 1997 0 0 0 0 624,322 0.0% 1998 262,500 0 0 262,500 1,045,301 25.1% 1999 0 23,095 0 23,095 1,004,190 2.3% 2000 0 0 0 0 1,604,954 0% 2001 246,000 0 0 246,000 1,440,368 17.1% Total 673,493 179,814 0 885,795 6,899,121 12.8% *Does not include institutional or owner/user buildings therefore the table excludes the 535,000 square feet of office space developed by American Stores. Source:Colliers Commerce CRG,Year-End Market Review. Colliers does not include the 246,000 square feet of Gateway office space that began leasing at year end 2001. Collier—s will include the Gateway numbers in their 2002 Market Review. 44 Table 5 Office Vacancy Rates in CBD (Percent) • . "01-4.ft,,4,i-?: :'.4';''t411•;Z::Itikytk4.Fig';:,0,;:,:;,.4,M*61,t:f.v,..‹.;.. ;&-** L'.;.;,.- 4:.',..•y,;•.,..;-.:-:'-‘? .- ..-,‘•J.'-:'-i".-'.•••, :: A...-1..::,,:-. 2,26:;,:;....iL,...:.:- .„.,...i.:::g4''''?:W.:.:...;maol*Mte. 1990 6 13 22 13 14 1991 21 16 17 18 na 1992 14 16 19 16 na 1993 7 11 18 11 11 1994 5 10 20 10 8 1995 4 6 14 7 6 1996 3 1 11 8 7 1997 na na na 6 6 1998 4.5 13.3 7.7 8.7 8.0 1999 5.1 11.5 6.5 8.0 8.4 2000 4.5 13.3 7.7 8.7 8.9 2001 10.1 13.0 9.1 10.9 12.1 Source: Collier=s Commerce CRG. _._ ..... 45 • The performance of the countywide office market has been very similar to the CBD=s. Vacancy rates have risen to their highest levels since 1993. The countywide vacancy rate was 12.1 percent — at year-end 2001,slightly above the CBD=s rate.Total vacant office space countywide was 2.8 million square feet and in addition another 800,000 square feet of subleased space was available. Much of the weakness in the suburban area is related to Class B space used for telephone call centers. High vacancy rates in this type of space will have less impact on the downtown market. The large floorplate design used in call centers is not typical downtown office space. In addition to vacancy rates,absorption of office space is another important measure of market conditions. In the past four years the CBD has been able to absorb 575,000 square feet of space as reported by Collier=s Commerce CRG. In 2001,the CBD absorbed 354,00 square feet of space.These data indicate a continued strong demand for office space in the CBD. Absorbed SF 1998 161,655 1999 28,313 2000 31,331 2001 354,115 The third measure of market conditions is lease rates. Sluggish increase%or declines in average lease rates are an indicator of a weak market. However,the performance of lease rates does not indicate a distressed market. Despite rising vacancy rates,lease rates have increased. In the past year,the average lease rate for office space in the CBD has increased by about$1.00/square foot. Since 1995,the average annual growth rate in leases rate for CBD office buildings has been 6.3 percent.The average full service lease in downtown is currently$18.52/square foot. Class A space is$22.51/square foot,see Table 6. 46 Table 6 Average Office Lease Rates for CBD and Salt Lake County (Full Service Lease) ,.: 601 e Mirit4.0 04; :- -.:. :le..'•-' ', - ...-./r:'," Pli:**-gt/y '-:**.n „ .... ,.0*x••• • ',„24... ..;.•e: :.:.....,.r..?'"A'*':%$::!:-:................. .:41:z.4...:: .- -... . :: .....m..---..*:::- . . • 1995 $17.57 $13.01 $11.33 $12.84 $12.92 1996 19.02 14.53 12.90 14.44 14.03 1997 19.70 15.05 13.05 14.93 14.76 1998 19.69 15.55 13.39 15.47 15.43 1999 20.56 16.33 13.95 15.92 15.90 2000 21.46 16.41 13.51 17.53 17.26 2001 22.51 16.94 13.73 18.52 17.78 Annual Growth 4.2% 4.5% 3.3% 6.3% 5.5% Rate Source: Collier=s Commerce CRG. • ..._ 47 Strengths of the Office Sector (1). The addition of over 2.5 million square feet of Class A office space in the CBD since 1990. (2). The presence of the Church of Jesus Christ of Latter-day Saints both as a developer and user of office space. (3). Salt Lake City as the county seat and capital city of Utah has a unique advantage as a location for government offices:federal,state and local. (4). Absorption rates and lease rates have remained surprisingly strong despite a weakening market. (5). The commitment by Hamilton Partners to office space ownership and development in the CBD. Weaknesses of the Office Sector (1). Decentralization of the office market,that is,once again competition from suburban markets. (2). Rising vacancy rates that are currently at ten-year highs. (3). The additional drag on the market of vacant subleased space. (4). The loss of corporate headquarters in the CBD,most notably,American Stores followed by Huntsman Chemical and the large administrative staff of IHC. 48 C.Government Sector The government sector is central to the economic structure of the CBD. As the capital city,Salt Lake benefits not only from state government offices but also from the presence of federal offices and of course,a large number of city employees. Salt Lake County has only a few employees at scattered sites in the CBD. Besides employment,another important attribute of the government sector is ownership of both land and physical structures. Currently governments own about 94 acres in the CBD. Much of this land provides public infrastructure. One or another government entity owns the land and/or physical facility for the following public facilities. The Salt Palace Convention Center,Abravanel Symphony Hall,Salt Lake Arts Center,Delta Center,Capitol Theater,Rose Wagner Performing Arts Center,State Historical Society,Salt Lake City Library,state courts complex,Pioneer Park, City and County Building,Washington Square,Gallivan Center and Dinwoody Park,see Table I. Salt Lake City wields considerable influence over the CBD economy through zoning,licensing, various regulations and development assistance provided by the Redevelopment Agency(RDA) The role of the RDA in the economic development of the CBD has been crucial,particularly in the 1990s. A review of RDA programs shows that from 1975 to 1989 the agency provided about S18 million in assistance. Since 1990,RDA participation has totaled$139.8 million including assistance for the expansion of the Salt Palace Convention Center,Main Street beautification, Delta Center plaza and the development of Block 57,see Table 2. Strengths of the Government Sector (1). The commitment of capital and resources by governments to the economic development of the CBD. (2). Major employer,10 percent of the downtown workforce. (3). Salt Lake City's resolve to improve the CBD. (4). The near-term development of a 10-acre Olympic Park in the CBD. Weaknesses of the Government Sector (1). Relatively slow employment growth in the government sector. (2). The phenomenal amount of investment and upgrading of the public infrastructure over the past ten years will leave future public investment at relatively modest levels. 49 Table 1 Government Owned Land and Structures State Human Services Building Matheson Courts Complex Heber Wells Building Department of Workforce Services City City and County Building* City office building Salt Lake Public Library Delta Center(RDA owns land) - Pioneer Park Washington Square Dinwoody Park(RDA) Gallivan Center(RDA) • County Salt Palace Convention Center Capitol Theater Rose Wagner Performing Arts Center Salt Lake Arts Center Abravanel Hall Scattered Sites near 200 West Federal Frank E. Moss Federal Courthouse Wallace F.Bennett Federal Building 324 South State(shared with city) Federal Reserve *Salt Lake County owns one floor of the City and County Building which is leased to Salt Lake City. County owns no land at Washington Square. Source:Government agencies. 50 Table 2 Salt Lake City--s Redevelopment Agency Projects and Investments r..,,��"E,��Y(.a�"J,,a . ,r,,.. ,...„ ...c '' ;•..;. Dinwoody Park 1975 Acquisition,Construction $255,500 Bank of Utah 1976 Acquisition,Write-Down $318,400 American Plaza 1976 Acquisition,Write-Down $1,000,000 HeberM Wells 1977 Acquisition,Write-Down S1,077,000 Symphony Hall 1978 Plaza Improvements $150,000 Salt Lake Arts Center 1978 Plaza Improvements $100,000 Capitol Theater 1978 Acquisition,Write-Down $240,000 Salt Palace 1978 Sidewalk Improvements $40,000 City Centre Development 1980 Acquisition,Write-Down $3,075,000 Triad Center Park 1984 Plaza Improvements $4,500,000 Triad Center Parking 1984 Acquisition,Construction $6,200,000 (lift BuillingRenovation 1987 Loan Renovation $1,050,000 Workforce Services 1990 Parking Construction $3,000,000 Block 57 Plaza 1990 Acquisition,Construction $18,000,000 One Utah Center Parking 1990 Construction $14,500,000 Delta Center Aroma&Plaza 1990 Acquisition,Playa Improvements $13,800,000 Plandome 1990 LomRenovation $650,000 Block 49 Housing 1990 Land Acquisition,Environmental $4,400,000 Corporate Office Center 1991 Land Acquisition $9,250,000 Brooks Arcade 1991 Land and Building Acquisition $1,750,000 Hotel(Block 57 Northeast) 1991 Land Acquisition $2,250,000 Broadway Centre Parking 1991 Acquisition,Construction $5,425,000 Pierpont Walkway 1991 Plaza Improvements $680,000 Additional Block 57 Plaza 1992 Land Acquisition $3,000,000 Salt Palace Expansion I 1992 Grant S 15,000,000 Exchange Place Parking 1992 Loan $2,300,000 51 „ 14411111141111111111 illaill 0#' t "i Multi-Ethnic High Rise 1992 Land Acquisition $200,000 _ Capitol Theater 1992 Grant $240,000 California Tire&Rubber 1994 Grant $1,000,000 David Keith Facade 1994 Loan $165,000 Judge Building Facade 1994 Loan $200,000 Block 49 Housing 1995 Land Write-down S 1,400,000 Main Street Beautification 1995 Bond $12,000,000 Wagner Performing Arts 1995 Grant $1,200,000 Pioneer Park Upgrades 1995 Grant $1,000,000 Commercial Club 1995 Loan $750,000 IL.advrsurBlock 1995 Loan $300,000 Boston Store Facade 1996 Loan S75,000 Tire Town Facade 1996 Loan $300,000 328 Edison Street 1996 Loan $53,000 Tommy=s Facade 1997 Loan $66,815 West Temple Beautification 1997 Grant $240,000 Hotel Monaco 1998 Loan Renovation $1,000,000 Gateway $16,500,000 Ckane Building 1999 Loan $125,000 Public Improvements several yrs Grant $9,000,000 A.,. € f aux 1' 3 . i 1 2; `✓ �/ ., , . ,,.�..`„n y,_h�l6 t'IMU..,, .r/.„ ;h �,one,o'i ,l„oka,.a LG,,,,ufi.fi'ii/i�.✓i N,v..,ki t„c, i. / ,r//r Y�, .,... , b'ei,� Source:Redevelopment Agency of Salt Lake City. 52 D. The CBD Economy and the Church of Jesus Christ of Latter-day Saints The LDS Church has played a formative role in every sector of the downtown economy. No • other institution,government entity or corporation has had such a defining role on the size, shape and direction of the CBD economy. The LDS Church=s extensive holdings and widespread impact are briefly summarized below: (See also Chart 1) $Office Sector-Largest owner and manager of office space in the CBD. Owns 1.4 million square feet of ecclesiastical office space and 1.6 million square feet of commercially leased office spaceC22 percent of total office space in the CBD. $Retail Sector-Owner of ZCMI Center with more than 600,000 square feet of retail space plus other scattered retail sitesCover 30 percent of retail space in the CBD. $Manufacturing Sector-Owner of the Deseret News and 50 percent of the Newspaper Agency Corporation,the largest manufacturer in the CBD. $Housing Sector-Largest owner of rental units in CBD. Owns seven apartment communities with a total of 852 unitsC26 percent of residential units in the CBD. $Finance Sector-Owner of Beneficial Life Insurance,an insurance company established in 1905,which is among the top 10 percent of American insurance companies. $Communications Sector -Owner of Bonneville International Corporation organized in 1964. BIC is a major broadcasting group with 18 radio stations located in Chicago,Washington D.C., San Francisco, St.Louis and Salt Lake City, plus two television stations, and the subsidiaries of Bonneville Communications, Bonneville Satellite Company,and Video West Productions. $Hospitality Sector-LDS Church owned properties provide hospitality services in three historic downtown buildings:Lion House,Joseph Smith Memorial Building and the Inn at Temple Square.-For almost 80 years and until its renovation as the Joseph Smith Memorial Building,the Hotel Utah with 500 rooms was the state=s most elegant hotel. $Entertainment and Culture-The Tabernacle Choir and Temple Square along with the Family Hlstory Library and the Joseph Smith Memorial Building are important cultural attractions visited by an estimated 5 million people annually. The cultural role of the LDS Church has been profound and includes the donation of land for the Salt Palace Convention Center, Salt Lake Arts Center and Abravanel Hall. 53 $CBD Investment 1990 to 2001-Developed and built six new buildings in the CBD with a construction value of$302 millionC22 percent of the total value of new construction in downtown. The Conference Center completed in 2000 is the highest construction value ever for a single building in the CBDCS 172 million.u $Parking-Owns 9,850 parking stallsC27 percent of all parking space in the CBD. SBmployment and Wages-One out-of-every eight employees in the CBD either work directly for the LDS Church or is employed by an establishment owned by the LDS Church. Consequently,the LDS Church is the largest single employer in the CBD.Wages paid to these employees are estimated at about$250 million. $Land Ownership-Owns about 78 acresCl9 percent of the land in the CBD. SProperty Taxes-Largest property tax payer in the CBD. The presence of the LDS Church in the CBD economy includes more than just quantifiable measures. The influence of the LDS Church extends far beyond their capital and land investment in the CBD. To quote the Deseret Management Corporations website describing Zions Securities Corporation. AOne important role filled by ZSC is to anticipate future growth needs and patterns. The company can then seek to acquire land and property in order to facilitate vital developments by itself or other organizations. In this role ZSC works closely with business and government organizations to provide support,planning,and coordination. For example,the Company helped stimulate additional growth by Apackaging®properties for downtown developments,including the Crossroads Mall and the Matheson Courthouse complex.@ Strengths (1).The Church of Jesus Christ of Latter-day Saints'historical,economic,social and cultural connection and identity with the Salt Lake City's CBD is unique and advantageous. (2).The LDS Church is the most likely source of major investment and development in the CBD in the near-term. (3). LDS Church facilities,particularly the Conference Center,the Salt Lake Temple and Temple Square bring a substantial number of people downtown that would not otherwise visit the CBD. The ability of the LDS Church to schedule significant events at their facilities is very beneficial to the CBD. t 1Does not include the cost of interior finish. 54 (4)The LDS Church's willingness to become involved with public and private parties to encourage investment in the CBD has been and will be essential for economic development. Weakness (1). The religious doctrine of the LDS Church leads to some policies that may be incompatible with economic development issues:liquor laws,Sunday closings,nightclub district,etc. 55 Table 1 Office Space Owned by the Church of Jesus Christ of Latter-day Saints sH; Owned and Church Occupied LDS Church Headquarters 60,000 Office Building 980,000 Joseph Smith Memorial 337,400 Subtotal 1,377,400 Leased Office Space Gateway Tower East 309,714 J.C.Penney 233,890 Elks Building 65,778 Temple View 48,284 40 East 100 South 37,089 55 South State 60,992 Eagle Gate Plaza 366,696 Social Hall/IRS 161,146 Gateway Tower West 279,875 Subtotal 1,563,464 Grand Total 2,940,864 Source:Property Reserve and Zions Securities of Church of Jesus Christ of Latter-day Saints 56 Table 2 Rental Units in CBD Owned by the Church of Jesus Christ of Latter-day Saints F.fi. �.f..9;..::•?:...:f:d.,:} .•::Af•:x:/.:..�.:f.ry..:•?:.:fi.:..•..•.:.Yt..:..:.?.:..'#.f.r.:+.¢).�'..E.:..•:f 't'�?• :,:a F x ..... ..�; .,!�f••�f't),fy..f. • `ff?�`:•:.: FAdw} .}.: .4arik •.?.}.:•Brigham Street 201 East South Temple 337 Deseret Apartments 158 North Main Street 45 Eagle Gate 109 East South Temple 82 First Avenue homes 120 to 136 East 14 Avenue 43 Garden Apartments 200 North 200 West 196 Gateway 40 North State Street 55 West Temple Apartments 185 North West Temple 94 Total 852 Source:Zions Securities Corporation. 57 Chart 1 Church of Jesus Christ of Latter-day Saints'Percent Share of Selected CBD Sectors Office Space 7x.a.,: :.s,% ia' m ;....2111 ■ Retail Space 3r: ?`7°.�" ITE , 7- :.;. sT,MEERI30% Rousing Units •s^-.,. .;'," Employment 77:jc �;c5�'ix�� 3 C::._ Land Ownership F,,,...: "q - .... Parking ��w -` z.. - 2, ..t 0•/. 5% 10% 15•/. 20a/. 25•/. 30•/. 35•/. 0 Percent Share Source: Zions Securities Corporation,Salt Lake County Assessor's Office and Bureau of Economic and Business Research,David Eccles School of Business,University of Utah. 58 E. Hotel Sector The addition of several new hotels, a$120 million expansion of the Salt Palace Convention Center and increased funding for marketing, have combined to significantly expand the CBD=s hotel sector in the 1990s. The addition of five new hotels increased the inventory within the boundaries of the CBD by 833 rooms. This expansion does not include the addition of the 775 rooms in the Grand America Hotel, completed in 2001, located just a block south of the CBD. The five new hotels created 550 new jobs increasing total employment in the sector from 1,250 in 1990 to 1,800 in 2001. These recent additions were all encouraged to some degree by the 2002 Olympics. Three of five new hotels built during the 1990s are Marriot properties: the Marriott City Center, Courtyard by Marriott and Residence Inn by Marriott. The other two new hotels are Hotel Monaco and Renaissance Suites. The Marriott Corporation has a substantial presence in the downtown hotel marketCfour hotels with nearly 40 percent of the rooms, see Table 1. Historically hotel development in the CBD seems to occur in fits and starts. About twenty years ago, which was the last hotel building boom, three new hotels added 1,400 rooms to the market over a period of four or five years: Salt Lake City Marriott,Hilton(built as Sheraton)and Wyndham(built as Doubletree). Occupancy and room rates declined as expansion in supply coincided with an economic downturn in the local economy. An economic scenario albeit more severe than that of the late 1990s but nevertheless very familiar. Just like the 1980s, excess inventoryCtoo many roomsChas driven down occupancy and room rates. Data from Rocky Mountain Lodging Report,which includes the downtown and downtown east area, show that the available rooms on a monthly basis have increased from 90,000 in 1996 to 119,000 by 2001, an increase of 32 percent. For the same period, occupied rooms increased only 7 percent. Consequently occupancy rates have fallen from 81.2 percent to 64.6 percent. The drop in occupancy rate, however, is caused entirely by the increase in supply not by declining demand for hotel rooms, see Tables 2 and 3. Falling occupancy rates have pulled down average room rates. In 1998 the average room rate in the Salt Lake City market was$95.79 an all-time high. But once the 900 new rooms were added, room rates fell, dropping to $78.87 per night by 2001. Of course,total room revenue also fell. In constant 2001 dollars,total room revenue generated in the market dropped to$80 million, down from a peak of$102.5 million four years earlier, see Table 4. While the 2002 Olympics helped to induce the development of new hotels and excess capacity, the hope is that the exposure of the Olympics will lead to greater demand for hotel rooms in 2002 and beyond. An improving economy, fading travel worries associated with September 11t, and strong convention bookings for 2002 and beyond should help to absorb the overcapacity in rooms. 59 Strengths (1).Recent investment in several new hotels has improved the quality of lodging facilities in the CBD. (2)..The exposure of the 2002 Olympics and the strong advance bookings of the Convention and Visitors Bureau. (3) The number of occupied rooms annually in the CBD has remained stable. Weakness (1).Excess capacity that has driven down the occupancy rate and room rates. 60 Table 1 Inventory of Hotel and Motel Rooms in CBD ;+� Jij'"'r / j'��'� ••.r,,. $;r,� /jYj;.y fsy •/,::�{{{':.;'+.;J) i:'r�vF _ :;:� /� hr�F;:.;> �of £ .'.:r{Yl�;;'��r $ rl J �A:r d,;• � � _. SPT� +•' y�C;:v,.,...{j{j!1/,..;n/ru1;J ., ,._ :.:.r �r5:<>,i,••'+r,,{.,. .:i{:,>:.r:...r..J:;;:?;,.va»JJJra::.:::yi{:;yyJ.:{ % _ Salt Lake City Marriott 515 Hilton 499 Wyndham 381 Marriott City Center 359 Best Western Salt Lake Plaza 226 Hotel Monaco 225 Shilo Inn 200 Courtyard by Marriott 121 Residence by Marriott 118' The Inn at Temple Square 90 Peery Hotel 73 Carlton Hotel 60 Renaissance Suites 60 Total Rooms 2,927 Source: Salt Lake Convention and Visitors Bureau. 61 Table 2 Average Monthly Occupied and Available Lodging Rooms in Downtown and Salt Lake City East ti"F.,`.Y3 1996 78,947 89,829 1997 85,216 100,417 1998 78,794 100,981 1999 84,780 112,507 2000 83,279 117,533 2001 84,440 119,083 Source:Rocky Mountain Lodging Report. Table 3 Rotel Occupancy Rate in Downtown Salt Lake k. 1996 81.2 1997 76.6 1998 71.2 1999 68.0 2000 64.7 2001 64.6 Source:Rocky Mountain Lodging Report. 62 Table 4 Average Room Rate and Total Room Revenue in Downtown and Salt Lake East ^>.;;;: �o+.. +;:'<>::::.::;;:;;;::; :;:;>::;:::t;fk(?, :.0 pp : .8 iiY `� 3:F ,. 9 33 ` hf { .{+y{�.•.{.. +•?l+{{f•. +{ijf,?tA: ±1../{..{ i::�• v •y'3• ?bt f/c4,+ ,�ry .�ff�%';'•: f�7• rr'{ff tilF.(�f+f 'A• tV h gy.„ i..... t f{•fj,{fjjif{�+ ff f•, f 1996 $74.00 $79.3 1997 $90.60 $102.5 1998 $95.79 $98.6 1999 $89.75 $97.3 2000 $83..26 $85.8 2001 $78.87 $80.0 Source:Rocky Mountain Lodging Report. 63 F.Housing and the Central Business District In summary: $There has been an unprecedented boom in housing in the CBD during the 1990s. Seven new projects have been completed with a total of 1,140 unitsCthree are sizeable apartment communities:Palladio(250 units),Brigham Street(337 units)and Northgate Apartments (330 units). Thirty percent of the 3,300 housing units in the CBD were built in the 1990s. $The housing boom continues into 2002. Additional new condominium and apartment projects are under construction and will add another 321 units to the housing inventory over the next year. And beyond 2002,the housing inventory should continue to increase with approval of several projects now in the planning process. According to the 2000 Census there are approximately 4,500 people living in the CBD. The median age of the population is 37.2 years. The average household size is small,only 1.72 persons. There are 2,600 households in the CBD. Housing Units in the CBD"-2002y " Apartment Units 2,622 79.4 Subsidized or Rent Assisted 712 21.5 Condominium Units 682 20.6 Total Units 3,304 100.0 Housing has never been completely foreign to Salt Lake City=s CBD. Adjacent and to the northeast of the CBD are the residential neighborhoods of West Capitol Hill,Capitol Hill and the Lower Avenues(west of I Street). These neighborhoods were largely developed by the 1920s and have since been home to between 10,000 and 12,000 people. The proximity to a CBD of such a large non-blighted residential neighborhood with detached single family homes is quite unique and advantageous to Salt Lake=s CBD. These adjacent neighborhoods have augmented the CBD=s housing market throughout the twentieth century. But for bothCthe adjacent neighborhoods as well as the CBD=s housing marketCthere was very little change between 1930 and the late 1970s. During this time the 12The boundaries of the CBD were expanded on the north side by one block to include some significant rental projects. The rationale used was,if an adjacent block to the CBD includes sizeable housing projects then these projects should be included in the housing count. rt 64 housing market of the CBD was dominated by 17 apartment communities that were built between 1907 and 1930. Then suddenly from 1977 to 1985,900 new housing units were added to the inventory,increasing the number of housing units in downtown by about 50 percent,"See Table 1. The surge in new construction in the late 1970s was driven primary by the development of the American Towers,a 337-unit condominium project and three apartment communities—a total of 345 units—developed by Zions Securities. Following this burst of activity the market was dormant until 1997. But in the past five years the CBD=s housing inventory has jumped from 1,900 units to nearly 3,300 units,an increase of 74 percent. Certainly,the most highly concentrated period of new housing activity since the CBD--s early beginning as an agrarian village in the 1850s,see Table 2 and Chart 1. One of the unique characteristics of this recent housing boom is the five condominium projects that have renovated existing commercial space into condominium lofts:Warehouse Condominiums(25 units),Dakota Lofts(39 units),Broadway Lofts(58 units),Pierpont Lofts(42 units)and Tire Town(3 units). The first two projects,Warehouse Condominiums and Dakota Lofts,both experienced brisk sales and were"sold out"within a few months of completion. However,for Broadway Lofts and Pierpont Lofts the sales success has been much slower as it also was for The Club,the only newly constructed condominium project. The Club took three years to sell 47 units. Price has been the principal impediment to sales.Most of the new units have been priced above$200 a square foot,more than double the cost of a detached new single- family home in the suburbs. There has also been a number of new rental units added to the housing market in the past five years. Seven new projects have been completed with a total of 1,140 unitsCthree are sizeable apartment communities:Palladio(250 units),Brigham Street(337 units)and Northgate Apartments(330 units). The housing boom continues into 2002. Additional new condominium and apartment projects are under construction and will add another 321 units to the housing inventory over the next year. Beyond 2002,the housing inventory should continue to increase with approval of several projects now in the planning process,see Table 3. 13lncluded were:American Towers(337 units),Garden Apartment!(196 units),West Temple Apartments(94 units), Deseret Apartments(55 units),Broadway Apartments(95 units)and the Multi-Ethnic Housing(142 units). 65 Table t Rousing Units Built Between 1907 and 1989 Apartments Kensington 180 North Main 56 1907 Covey 239 East South Temple 75 1909 New Grand Hotel 7 East 400 South 80 1910 Stratford Hotel 169 East Second South 32 1910 Broadway Hotel 222 West 300 South 40 1910 Shubrick Hotd 68 Went 400 South 31 1912 Jackson 274 West 200 South 80 1916 Buckingham 245 East South Temple 51 1916 -Eagle Gate 109 East South Temple 82 1920 Kimball 136 North Main 25* 1920 Woodruff 235 South 200 East 32 1925 Pauline 110 South 300 East 14 1925 Embassy 130 South 300 East 31 1926 Embassy Arms 120 South 300 East 34 1926 Downing 136 South 300 East 34 1927 Smith 228 South 300 East 22 1927 No Name 254 South 300 East 20 1927 Sampson 276 East 300 South 8 1927 Altadena 310 South 300 East 8 1928 No Name 251 East 300 South . 16 1928 La France 160 South 300 East 60 1930 No Name 68 East 200 North 24 1968 Garden Apartments 200 North 200 West 196 1978 Deseret 158 North Main 45 1980 Multi-Ethnic Apts. 120 South 200 West 142 1981 -West Temple Apts. 185 North West Temple 94 1984 Broadway Tower 230 East 300 South 95 1985 Gateway 40 North State Street 55 1987 Total 1482 Condominiums Belvedere 29 South State 131 1918 American Towers 48 West Broadway 337 1978 Total 468 *Does not include 30 time-share units. Source:Bureau of Economic and Business Research,David Eccles School of Business,University of Utah. Table 2 Housing Development in the CBD Since 1990 ...............................:\• .. ..v..• •...{.:...ir;}}:{•: fi.+............... ....... .. ....{............................. .:.vhv; v r .. .:rr;:•SANON r+i}:4:•}:v}}:4}}:Yi:i::i::SiY:::i:. ... .�:.. .....}'F.r............. ...r. rr..;,x. .iv{ {x:.;�:••.:ivi:?}:{:v}i• ':}:^i:�:•i:.i}ni%.}}:•::::::w::::.�::':v.�n�::::: • • ::.y{;:{iiii::::Y}:tip•:.-:::.�:.• ..............::'.;r... ::.i.. f v......:.•r:::{.:;•.,:v'r•'rs:. }v}� :}:: :{}' :+._r:...'••::::•.:., - rig.•}4.+!.•: r?'::r:}'rn:{C'{'/i::?::•}:4;${:rr7.rr•}��:.}^{•'SS .. .':::::::i.{'{r.}v::r r:�'Cr :.. �•v+-•:• f {ri:f ?4..:.{r.+:::x::r sr}r .j :r.... f...... ...... }}'ff'!..:r:• - { ;},} :<r{};:: f.£•,, '�}y' f:r{.+ };::::::r•'.};r;;'F f :i :i{•i:? ;r '�••''Y"^" {p f }{ S� f • ...+.... v.f.F.•.rlJr ,./�v f f+�I+ff ! �v'+/:F{flfit':�;•'•i: .{� fAr/Nf fllrrrr `k} r lr � Apartments Palladio 360 South 200 West 250 1997 Artspace on Pierpont 329 West Pierpont Ave. 48 1997 Arspace Rubber Co. 353 West 200 South 53 1997 Renaissance Suites 267 West Broadway 60 1998 Brigham Street 201 East South Temple 337 1998 Bridges 511 West 200 South 62 2001 Northgate Apartments 100 South&Rio Grand 330 2001 Total 1,140 Condominiums Warehouse District 317 West 200 South.. - 25 1997 Dakota Lofts 380 West 200 South 39 1997 The Club 150 South 300 East 47 1999 Broadway Lofts 159 West Broadway 58 1999 Pierpont Lofts 346&350 West Pierpont 42 1999 Tire Town 300 South 300 West 3 2000 Total 214 - Source: Bureau of Economic and Business Research,David Eccles School of Business, University of Utah. Chart 1 Construction of Existing CBD Housing by Decade 1,000 � �, 900 800 30%ofhoannginven"). '+A+ ' bwitin 1990a 700 f :— , r 0 3 500E i 60 400 'ro 309 -'--, -. „w.; 200 _. ,,.., 100 0 1900a 1910s 1920s 1930s 1940s 19S0s 1960s 1970s 1980a 1990s 2000s ®New Units by Decade Source: Bureau of Economic and Business Research, David Eccles School of Business, University of Utah. 68 Table 3 Housing Projects Under Construction and Proposed in the CBD • y s �s t ' 't,' a i utiy < a Y i -_ Apts. Under Construction City Front 641 West North Temple 155 Condos Under Construction Parc at Gateway 500 West South Temple 152 Uffens Marketplace 336 West 300 South 45 Karrick 236 South Main 5 Gardens 300 South State Street 9 Total Under Construction 366 Proposed Apartment Projects Block 84 South Temple 400 West 340 City Place 250 South 200 Fast 91 Proposed Condo Projects Ken Millo 300 West Pierpont Ave 24 City Place 250 South 200 Fast 74 Total Proposed 529 Source: Salt Lake City Office of Planning and Zoning and individual developers. 69 Characteristics of Residents of CBD-The 2000 Census shows that the CBD had a population 4,519 in 2000." The number of households was 2,623Can average household size of only 1.72. As expected the median age was a very high 37.3 years.Unfortunately no income data have yet been released but undoubtedly many of the renters in the CBD are households with relatively low income.One indicator of low income is the high percentage of subsidized or assisted housing units. About one out of every five renters in the CBD lives in a rent assisted,subsidized or low income housing tax credit unit. Two of these projects are targeted for the elderly and one for special needs populations(e.g.emotional and/or mentally ill). The remaining projects are for family households,see Table 4. The size of Salt Lake City=s downtown population compares favorably with many other cities in the west and midwest. A recent study by the Fannie Mae Foundation and the Brookings Institution,Downtown Rebound,shows that the downtown population in Salt Lake City is comparable to the downtown populations in Denver,Phoenix and St.Louis,see Table 5. Prognosis to Offset the High Cost of Downtown Housing-Cities have stimulated downtown housing through various approaches but generally through some type of financial or development incentives. For example,the mayor of Denver in 1991 made housing the first priority in the drive for downtown revitalization. Mayor Webb said,Aone of the first things I did after taking office in 1991 was to convene a downtown summit focused on housing. Up to that point,the emphasis downtown had been on retail not on housing. We directed all our private activity bond allocations toward downtown housing projects for three years.@ There are a few mechanisms in place to make investments in downtown more attractive to developers such as RDA assistance or incentives from the Utah Housing Corporation,which administers the Private Activity Bond Fund and the Low Income Housing Tax Credit program. Utah Housing Corporation does,in fact,offer bonus points for projects that are built in downtown. Recently,tax credits were used in developing both Northgate and the Bridge apartments in the CBD while Uffens Marketplace received assistance from the RDA. The development financing for downtown housing is difficult at best and almost always leads to higher costs and hence higher priced housing. The economic viability of the condominium market will be tested again later this year and in 2003 with the completion of the Parc at Gateway(152 units)and Uffens Marketplace(45 units),although these projects are targeted at two different markets,The Parc will have units priced between$140,000 and$300,000 while Uffens Marketplace units are priced at about$135,000. Strengths (1).The amount of new housing in the CBD. Weakness (1). High cost of owner occupied units,the poor physical condition of much of the rental inventory and the relatively high percentage of rental units compared to owner occupied units. 1dPopulation estimates and demographic data were compiled from statistical data presented at the block level in the 2000 Census.For this analysis the CBD boundaries were extended by a few blocks on the north side of the CBD. 70 Table 4 Subsidized or Assisted Rental Housing in the CBD ram:'.:,. ...::...:.3:: Jackson Apartments 80 Elderly New Grand Hotel 80 Special Needs Pauline 14 Family Embassy Arms 34 Family Embassy 31 Family Downing 34 Family Smith 22 Family Multi-Ethnic Housing 142 Elderly Palladio 49 Family Bridges 62 Family Northgate Apartments 165 Family Total 713 Source: Salt Lake City Housing Authority and Utah Housing Corporation. Table 5 Downtown Population by Selected Cities i.•}fl;MYW;: •ri{fF•• fle {{..�:.;lf}.... .. :f trv,sv!y,.,i 0 }:ii' :•f.•ti. i:'\ �:.•f• - .......r...x..:::}lf'.:tr�:•f j _ � Salt Lake City 4,500 182,000 Denver 4,230 554,636 Des Moines 4,204, 198,682 Phoenix 5,925 1,321,045 Portland 12,902 529,121 San Antonio 22,206 1,144,646 Seattle 16,443 563,374 St. Louis 7,511 348,189 Source: Downtown Rebound, Fannie Mae Foundation and Brookings Institution, 2001. Salt Lake City Downtown estimate by Bureau of Economic and Business Research, David Eccles School of Business, University of Utah. 71 G.Financial Sector In summary: $Mergers and consolidations have changed the landscape of the financial sector nevertheless,the CBD continues to dominate commercial banking activity. In 2000,the deposits in the banking institutions downtown totaled$2.98 billion or 37.6 percent of all bank deposits in Salt Lake County. In 1990,the CBD=s share of all banking deposits countywide was 40.6 percent. Salt Lake City=s CBD has long been the Afinancial district@ of the state. Most of the large insurance companies in the county have headquarters in or near downtown and the greatest concentration of commercial banking in the state is in a few square blocks of downtown Salt Lake City. The 1990s,however,was a time of transition for financial institutions. Mergers and consolidations have shrunk the commercial banking landscape. Nme of the 17 commercial banks and savings and loan institutions that were operating in the CBD in 1990 no longer have a presence Aby name@ in downtown. Those institutions include: 1.Bank of Utah(consolidated downtown office with south State office) 2.Capital City Bank(purchased by Washington Mutual Bank) 3.Crossland Savings Bank(purchased by First Federal Savings Bank) 4.First Federal Savings Bank(purchased by Washington Federal Savings and Loan) 5.First Professional Bank(purchased by First Security Bank) 6.Olympus Bank(purchased by Washington Mutual Savings Bank) 7.Pacific First Bank(purchased by First Security Bank) 8.Sandia Savings&Loan(purchased by Zions Bank) 9.First Security Bank(purchased by Wells Fargo) Seven of these eight institutions are no longer in business. The only surviving bank with the same name,is the Bank of Utah,which continues to have a strong presence in northern Utah. Currently,there are 10 commercial banks operating in the CBD. Washington Mutual Bank, which purchased Capital City Bank,and Irwin Union Bank are the only new banks to enter the downtown market in the 1990s.Of course,the most profound change in the banking industry was the merger of Wells Fargo and First Security Bank. Despite all the mergers,the dominance of the CBD in commercial banking activity has been largely unaffected. In 2000,the deposits in banking institutions downtown totaled$2.98 billion or 37.6 percent of all bank deposits in Salt Lake County. In 1990,the CBD=s share of all banking deposits countywide was 40.6 percent.'' (The countywide data do not include deposits of Utah Chartered Industrial Loan Corporations). Deposits for each institution are shown in Table 1. In the 2000 data First Security=s deposits were listed separately from Wells Fargo=s. As a new institution in 2000,Irwin Union Bank=s deposit were not available. "The countywide data do not include deposits of Utah Chartered Industrial Loan Corporation. 72 Table 1 Deposits at Financial Institutions in the CBD ::9Faigno.09 American Investment Bank :200 East South Temple $98,639 $211,808 Bank One(Previously Valley Bank) 80 West Broadway $85,918 $165,745 185 South State Street $0 $51,142 50 West Broadway,Suite 200 SO $8,214 Bank of Utah 175 South West Temple $8,575 S0 Brighton Bank 311 South State Street $8,728 $23,156 Capital City Bank 400 South State $8,371 $0 Community First Bank(previously Guardian State Bank) 142 East 200 South $15,893 $52,917 Crossland Savings 41 East 100 South $106,105 $0 First Federal Savings Bank 60 East South Temple $62,172 S0 First Professional Bank 285 West North Temple $7,116 $0 First Security Bank 79 South Main Street $640,745 $933,739 401 South Main Street $83,610 $165,579 Irwin Union Bank 224 South 200 West $0 NA Key Bank 50 South Main Street $107,046 $44,480 79 South Main Street $28,686 $20,253 Olympus Bank 115 South Main $35,107 SO 73 ;r Ha :1 a.a Pacific First Bank 63SouthMain $31,855 $0 77 West 200 South $10,650 $0 Sandia Savings and Loan 125 South Main Street $14,221 $0 US Bank(previously West One Bank) 107 South Main Street $74,564 $140,168 340 South 200 East $0 SO 200 South Main $103,493 $0 2 East Broadway $13,749 _ $0 Washington Mutual Bank 201 South Main $153,831 Wells Fargo Bank(Previously First Interstate Bank) I80 South Main Street $154,130 $65,046 280 East 200 Sou0r $1,362 $6,836 Zions First National Bank 1 Main Street $362,837 $894,644 102 South Main Street $51,347 $44,178 310 South Main $67,543 $0 Total Deposits of Financial Institutions in CBD $2,182,462 $2,981,736 Source:Utah Department of Financial Institutions. 74 H. Entertainment and Culture The CBD=s entertainment sector has been undergoing a transformation during the 1990s. It began with the completion of the Delta Center in 1991 and slowly gained momentum with the addition of restaurants,brew pubs and then the Rose Wagner Performing Arts Center in 1997. Since 1997 the pace has quickened with more new restaurants and private clubsCThe Gateway alone has seven new restaurants. Since 1990 at least 25 new restaurants have been added to the CBD, which helps explain why food and beverage sales exceed clothing sales in downtown. And coming soon will be the new planetarium at The Gateway, an$18 million facility with a 55 foot domed Star Theater, a 275 seat MAX theater, classrooms and laboratory space. Also later this year the new Salt Lake Public Library will open. The new facility will double the space and collection of the current library, offer a lecture hall(already booked are James Burke, Oliver Saks and William Safire)a 300 seat performing arts auditorium, two small 125 seat movie theaters and public open space with a park, reflecting pond and amphitheater. Entertainment options are essential for growth in the downtown housing market. For a small number of households,living in an urban setting is attractive but only if there is entertainment and that entertainment includes restaurants and public amenities. The combination of dining and some night life(Opera, Symphony, Jazz game, etc.)makes the CBD unique. In sharp contrast to the retail or office sectors,which have been hurt by suburban competition,the suburbs can not compete with the entertainment and cultural events found in the CBD. Over 2 million people annually attend events at the Rose Wagner Performing Arts Center, Capitol Theater, Abravanel Hall,Hansen Planetarium and the Delta Center, see Table 1. Strengths (1). Unique set of facilities, infrastructure, programs and events that draw people to the CBD. (2). The enormous public and private investment over the past few years in entertainment and cultural venues. (3). The potential of the Olympics changing perceptions about downtown. (4). The positive linkage between increased housing and more entertainment options. Weaknesses (1). Very little open public space. (2). The absence of a large and significant visual arts museum. Denver recently invested more than$62 million in an expansion of their art museum. 75 Table 1 Annual Attendance at Entertainment and Cultural Venues ' + " r E c� ' w`P. � sr �"���--. �7 i 3Y 7-s'? -- ,a q y4„,,,,Y-� , �1 yid "✓rP � s r , �. f €Jr',, , ,,�,; ncho " % E r ✓G 1 1990 833,262 311,084 201,148 na 300,412 195,180 1,639,938 1991 819,556 297,718 178,151 na 344,413 251,530 1,713,217 1992 822,417 299,581 153,705 na 310,320 266,148 1,698,466 1993 756,264 401,827 170,630 na 281,783 313,715 1,753,589 1994 771,497 323,793 156,484 na 286,808 251,836 1,633,934 1995 814,464 293,244 172,025 na 322,238 364,699 1,794,645 1996 813,100 283,868 182,678 na 289,194 467,328 1,853,490 1997 816,869 307,973 169,561 8,233 286,957 249,417 1,669,449 1998 757,610 231,313 142,143 13,456 279,895 259,865 1,542,139 1999 708,347 202,038 132,017 11,132 300,266 330,070 1,551,853 2000 691,074 271,481 130,958 19,948 265,739 255,458 1,503,700 2001 608,097 234,528 114,428 38,685 240,551 230,121 1,400,000 1,351,982 (Est) Source:Attendance data was provided by each venue with the exception of the Delta Center. The attendance figures was estimated from 1998 data which showed attendance of 1.7 million. 76 i, L Public and Private Investment and the Fiscal Role of the CBD Public and Private Investments in the CBD- Since 1990, the level of investment in the CBD has been extraordinary. No other period in the economic history of Salt Lake=s CBD compares to the 1990s in terms of the magnitude and range of public and private investment. During the 1980s more square footage of office space was developed than the in the 1990s. Also the 1906 to 1912 period was impressive with the construction of the downtown Post Office,Newhouse Hotel,Boston and Newhouse Buildings, Salt Lake Stock and Lining Exchange,New Grand Hotel, Commercial Club and the Walker Bank Building. But even these two high growth periods do not approach the scale of investment of the 1990s. Since 1990, the CBD has captured nearly 15 percent of all of the permit authorized nonresidential construction in the stateCa total of$1.35 billion in construction valuation. Included are some significant new public buildings: the Salt Lake City Public Library, the Scott Matheson Courts Complex,the renovation and expansion of the Salt Palace Convention and the Delta Center. Just south of the CBD boundaries the Grand America Hotel, the largest hotel in downtown, was completed in 2001 and on the north side, the LDS Church=s Conference Center and The Gateway, the largest mixed use development in the state.Not included in the permit authorized valuation is TRAX, a$400 million light rail system that terminates in the CBD. All projects with a construction value of$5 million or more are included in Table 1. 77 Table 1 Private and Public Investments in Downtown Area (Projects Over$5 million) fk,r;.' s, - 41 a4V4, e5,, sai i� The Gateway $300 2001 LDS Conference Center $172 2000 Grand Hotel $130 2000 Delta Center $90 1991 Salt Palace Expansion I $82 1996 State Courts $80 1998 Salt Lake City Library $60 2002 American Stores $55 1998 One Utah Center $50 1991 Salt Palace Expansion II $47 2000 Hotel Utah Renovation $42 1993 Monaco Hotel $35 2000 Gateway Tower West $35 2000 Marriott Hotel $32 2000 Broadway Center $31 1992 Main Street Parking&Gardens $27 2000 Federal Building Rehab $20 2001 Social Hall/IRS $15 1996 Deseret News Building $11 1995 Rose Wagner $14 1998 Questar Rehab $10 1995 Alpha Graphics $10 2002 Exchange Place Parking $7.5 1998 lTotal $1,355.5 Source:Bureau of Economic and Business Research,University of Utah. 78 Fiscal Role of the CBD-Economic activity and investments in the CBD contribute significantly to Salt Lake City=s tax revenues. Property taxes are the largest source of revenue generating $15.6 million in 2001, close to 30 percent of all property taxes collected by Salt Lake City. Sales tax revenues include four different taxes: (1) local option sales tax of 0.5 percent on retail sales (point-of-sale distribution), (2)transient room tax of 3.0 percent on lodging accommodations of fewer than 30 days, (3)restaurant food tax of 1.0 percent and(4)tourism tax of 0.5 percent on lodging at hotels,motels, inns, etc. This tourism room tax is in addition to the transient room tax. Total sales taxes generated by the CBD in 2000 was an estimated $5.7 million, nearly 15 percent of all sales taxes collected by the city. In summary, the fiscal role of the CBD is considerable, producing more than 20 percent of Salt Lake City=s total property and sales tax revenue. Table 2 Sources of Tax Revenue in CBD ''f.:F..??�:+f. 'f.�}•' F.'i J f//.?v:{F�}%j'%% :':}i • i•}ft'.,v,�•..•..1•.v:.•.:...�.._:.;.�}•}•}f•.v:?...A��.y �.j.,..:>:}';:FXJ'•} ;:.o-• :..>5.. !.}/. :..? { , .01: tir{J.c# n .4•'•S.: f:: ?{`:y, :J„?:#:}f`•:;_•,••f.:.;,}:}';;{; '•:': }.}n:::}:}:?:; f /'> �'•>' r�• ..i, v.�+1�{�?f..x:•c> r '+ �" {$fSj'f' tyyl.. :<•{>�.:•}%t':•:� },Sf :: fC�:��?••+�f:: :%:•:f> {: • f� }. ,fl, {•$,{ , f+ ;??. !:j.: .j,•.> :A}:,,• l•f } •••ff .x•.:-'?t'+�{:..': :7F:,r ?? frf%'.• ��f ,,r�k:�,. .sL'�:.yl :%•`: }°':7C�/ter?`{?. ., .}.}•''2t,.,.::i,>•>;J. ry :f/.•::�:• • }:- :;:?+?:.{' %:?•:}:::?f ✓1.•r.:?r:y: :;;;:••..;i}:•. #} . f�.: + f.--'r . p : f: ?VTC•v`, /::: S:i�f•� ..f.• 'i?%'.+�:�•''i,. f • f3�:/ Y /•}. 'J ': f..•,'/.': • ?rt:.,.S�.,::t2'� ��}f:'•.f,: r.•}.:•:Y>f3F• Ma { .41.-.-W .. ':}Jf%f.?%iGf:}}•?:rA iif•.•}.r: i:.•- .•::fi::.t'F.r..: {.f.'i:.ii: ;y:,�: .{, ..J }f}} ;?t f•}xr','�. ::?.: .f.rit..!"•�'_r,;.. :./. t� � lJf' ,.F .;�..{??%`. f'•. F•r•: •r.✓ G ? �.?� yy��>,N: :{fy>�:• • ���]�p''. :?f:-. •.f+`.r.,% ::vfi.:+y}}tt'r:%Y - .f/rv':?{•�i't t::::i:•::v': ¢f f ''-? ,f.: F f.}l;: .ti:? .R'.1es c. :+ii;:iii�.?i:,'' �M f.::• f '{/ T JS+f fff+?:;.}:/A^ }_} r F'''f•: rfJ? ..? •:: �$.r.::/.;{.•:x.�.�FA'��+•,.w,•,f•�v::ri:i %i)f,.' fi}J:l.'{.t• .. � :0}.r ff..?+fiYf. /.n Ff....-..+}Jri rr: r.rf: 4Y.A..:> :}i}i}?t .: :is ii:•:.}}i'y:•}}:}y.} i:l :::..•..}}::::;.!Z1. m:J•}:•::::.Jr•:r:.;... :::.?>•:: .. r.:»:;:?:fr:. •::>ff:}:.}:rr:??.:::>ff.J•?:f:: lfF.�/ •} /: +v%�:i:+i/irtffr:;v}�.;:yi�{ iY::rr ?.}•.film. .. �....iri::::i?"•?:�:.J:i•::•. � -::J}d:.rv.:?f.:fl:::, .n.Y:fx..•.}'if.•:?i:.}'•}:::n�v:.:. '%•} }•f::.:}}:::Y:f-:i:•}i: ?•. v +mf// .::J^. ?ff..; ..• r.:n:}'. I::}•.n: .:.f.•::r.:r{::.f:.:::r:}::i:::ti :$::: /:r •:�{::rm:.-....: :;}:.'{.• : f:r}.{tiii=::}}rrf.Jf.•::::: .m{.. r: .........>.................. .1...... _ .........:::.:.r.:m:::::::::::::::::.:.... ...........!Mira {?.j..: .....r::::.iti5•:•Yiriii}::.•::: Property Tax 1.37% $1,141 $15.6 $54.7 28.5% Sales Taxes $5.66 $38.4 14.7% Retail Sales Tax .5% $373 $1.86 Restaurants&Bev. 1.0% $100 $1.0 Transient Room Tax 3.0% $80 $2.4 Tourism Tax .5% $80 $.4 Total $21.3 $93.1 22.8% Source: Department of Management Services, Salt Lake City and Utah State Tax Commission. 79 V.The Next Five Years When placed in the context of 150 years of history,the CBD's performance over the last eleven years has been remarkable. But by 2001 the construction of large public and private projects, which made the period so exceptional,was complete. Now in 2002,the CBD faces the challenge of excess capacity in the hotel,office and retail sectors at a time of much slower economic growth. In light of current market conditions,what is the likely performance of each CBD sector over the next five years? Employment—During the 1990s the employment growth rate in the CBD was about half that of the statewide rate-2 percent compared to 4 percent. Employment in the CBD increased by about 1,000 workers annually,a much higher rate than is probable in the next five years. The 2002 statewide employment projection is flat or"no growth"with a rebound to 2.1 percent in 2003. There is little reason to expect the CBD economy to outperform the statewide economy in the next two years. Therefore,it's likely that the CBD will add very few workers this year but resume growing in 2003,adding some 500 new employees. For the 2004 to 2007 period an annual increase of 800 to 900 workers is a reasonable expectation. •Retail Sector—The Gateway added nearly 700,000 square feet to the inventory of retail space in the CBD. It was over twenty years between the development of Crossroads Mall and The Gateway and it will probably be a number of years before the CBD has another major new retail development. The possible exception is Block 40(Main and West Temple,400 to 500 South) which Earl Holding owns and may develop as a mixed-use project. Other projects with more certainty in the next five years are:(1)renovation of Crossroads Mall,(2)upgrade and possible expansion of ZCMI Center by the LDS Church,(3)10,000 to 12,000 square feet of retail space at Uffen's Marketplace and(4)completion of leasing for Gateway's Phase I and development of Phase H,which may include Nordstrom. •Office Sector—The current vacancy rate of 11 percent will discourage development of new office space for a few years—exceptions could be institutional or owner-occupied buildings. Employment projections suggest it will be two to three years before the vacancy rate drops to the 7 percent range. Hamilton Partners will likely build their proposed 375,000 square foot office building on Main Street within 3 to 5 years. Government Sector—Tight budgets will prevent growth in the government sector over the next two years. Major projects planned are:the$5.5 million Library Square,the 10-acre Olympic Park,a new$80 million federal courthouse and the extension of TRAX west to the airport. •LDS Church—The most likely source of major capital investment in the next two years is the LDS Church. There has been mention by the LDS Church of negotiations with Wells Fargo for acquisition of the Deseret Building(First Security's headquarter building at 79 South Main Street),to accommodate expansion of the ZCMI Center and investment south on the block. Other possible capital projects are: northeast corner of State Street and First South(Key Bank Building), development on Social Hall Avenue,further development on the Family History Library block. 80 •Hotel Sector—The low occupancy rate in the CBD and countywide will prevent any major hotel development in the CBD over the next few years. *Housing Sector—New housing development will continue into 2003 as projects now under construction are completed. Currently,there are 366 housing units under construction in the CBD. Development beyond 2003 will depend on the market acceptance and absorption rates of these 366 units,particularly 152 units at The Parc at Gateway condominiums. *Financial Sector—The wave of mergers and consolidations in the banking industry has probably run its course. This sector should be much more stable over the next five years. •Entertainment Sector—Given the recent rapid expansion of this sector,it is likely that the next five years will be a period of slower growth in capital investment but also a period of increased attendance and participation in CBD events. The new private and public entertainment facilities plus efforts by Salt Lake City and the Downtown Alliance to promote the CBD will attract more people to downtown Salt Lake City. 81 City Comparisons • 1 of 11 ATLANTA, GA. (Population —416,000) Recent surge of development/ revitalization: Construction. In 1999, a record $1.4 billion in new construction was permitted. In the Downtown area, the $213 million Phillips Arena and surrounding 12-acre retail, restaurant and parking development has been completed. The arena is a new entertainment destination for over 20,000 sport fans, conventioneers and tourists. Other areas of Downtown, from the expanding Georgia World Congress Center and the Peachtree Street hotel and restaurant strip to the Fairly Poplar Historic District and Underground Atlanta are being revitalized. The 21-acre Centennial Olympic Park, is the link. Four residential developments, adding more than 600 apartments and condos, are planned or are under construction near the park. The area is expected to ultimately contain 1,300 new residences and a full-size supermarket on Centennial Olympic Park Drive at the nexus of the Centennial Hill neiahborhood and the Centennial Place mixed-income development. Current City Policies regarding Economic Development, Growth, and Urban Renewal: - Capitalize on the City's historic strengths as a transportation and distribution hub and regional office center; - Strengthen the City as a convention and tourism center by increasing the number and improving the quality of visitor attractions and support facilities. - Emphasize business retention and expansion. - Promote international trade by City firms and encourage foreign investment within Atlanta. - Continue to encourage and facilitate private investment by providing improved parking, safety and pedestrian sidewalk infrastructure. - Ensure continued availability of technical assistance of business skills to small businesses using private and public resources. - Enhance the City's role as a competent and effective partner in economic development by streamlining procedures and requirements, updating staff skills, and improving date collection and analysis capabilities. - Aggressively work for local, state and federal policies that enhance the relative advantage of Atlanta, and pursue local means of making the City a more desirable and competitive environment. - Encourage City and business leaders to work with local colleges, universities and public schools to address the growing imbalance between the education and skills possessed by residents and the education and skills required by employers. - Actively monitor and enforce the City's First Source Jobs policy legislation to reduce the high unemployment of City residents. - Emphasize the preservation, maintenance, rehabilitation and reuse of existing facilities that are in sound condition. - Encourage the growth of minority business enterprise. - Use federal funds to support programs and projects that provide decent housing and suitable living environments and expand economic opportunities, principally for persons of low and moderate income. - Support policies to retain young professionals in the City. - Retain, grow and attract middle-income residents by promoting the development of middle-income housing within the context of mixed-income neighborhoods and the creation of jobs for City residents. - Enable lower-income residents to attain middle-income status by emphasizing job creation, job training and job placement for unemployed and under-employed City residents. City Comparisons 2 of 11 • BOISE, ID. (Population — 186,000) Current City Policies regarding Economic Development, Growth, and Urban Renewal: - The Central Business District (CBD) will be developed in a manner that creates a district identity thorough the design of streetscapes, open spaces, and buildings. - Concentration of office and retail uses within the CBD will be encouraged. - Transportation improvements outside of the CBD should promote improved access to it. - Retail uses will be emphasized in the CBD, especially at street level. -The street level of 8th Street will be the pedestrian focus of the CBD. New development should be designed to promote a festival marketplace atmosphere and pedestrian activity. -Art, entertainment, and convention meeting facilities are encouraged to locate in the CBD. - Expansion of existing museums and cultural facilities is encouraged. - Mixed uses of buildings within the CBD will be encouraged. - Residential uses may be encouraged in the downtown area by using density, height, or parking bonuses to increase activity level. - Encourage exiting employers to retain and expand their offices in the downtown area. - Encourage new employers to locate downtown - Complementary uses are encouraged to locate near major downtown employment centers such as St. Luke Regional Medical Center, Boise State University, State Capitol Mall, and other major financial or corporate offices in order to provide better service to these entities. - Nonconforming uses in the downtown area that provide essential services to other downtown uses should be retained where possible, provided their activities are not detrimental to adjoining properties and uses. -The City will encourage refinement of the State Capitol Mall Plan. -Sate and County government offices are encouraged to locate within the downtown area. - Social services will be encouraged to locate within the downtown area to improve delivery of services. - Residential-office buffer areas are established around the CBD to discourage encroachment or expansion of high intensity commercial uses into these areas. - Strip commercial development in the CBD will be avoided. - New auto related uses such as drive-up services, gas stations and auto dealerships should be restricted from locating in the CBD. - Where allowed in the downtown area, surface parking lots shall be designed and landscaped to promote pedestrian activity and be aesthetically pleasing. - Standards for off-street parking within the CBD should be flexible to permit the use of innovative solutions for parking problems. Adverse impacts on parking area safety must be mitigated. Parking requirements for new development should not be waived. - Parking facilities should be linked to employment and shopping areas within the CBD by public transit service and pedestrian paths. - Retain on-street parking spaces and regulate them to better serve customers of downtown businesses. - Parking areas within residential areas should be located behind a primary structure. Access should be from alleys or side streets to minimize impacts to residential quality. City Comparisons • 3 of 11 BOSTON, MA. (Population —589,000) Beginnings of Main Street Revitalization in Boston: "Boston Main Streets", created in 1995 by Mayor Thomas M. Menino, was the first urban, multi- district Main Streets program in the nation. Provides funding and technical assistance to 21 neighborhood-based Main Streets districts throughout the City of Boston. Focus: effort on providing merchants and community residents with the tools for their historic commercial districts to compete in today's market. Helps the local districts capitalize on their unique cultural and historical assets while focusing on the community's economic development needs. Examples: include small business recruitment, business retention, and addressing competition from shopping malls and discount retailers. Typical Main Street strategies include: - Efforts to improve the physical area by targeted real estate development, rehabilitation of abandoned commercial real estate property, renovation of building facades, restoration of storefronts, and streetscaping. - Efforts to improve the general business environment by sponsoring marketing campaigns, providing commercial strip management, or organizing a local business association. - Efforts to develop or attract businesses by providing small businesses with loans and/or technical assistance; establishing special incentives or marketing campaigns to attract new businesses into the area; and making special efforts to nurture new local businesses. - Efforts to find alternative uses for former commercial real estate, such as converting it to housing, museum space, or government office space. - Strategies and solutions must reflect local circumstances and be rooted in the local context. Nevertheless, local efforts are impacted by metropolitan and regional as well as local markets. - Successful economic development requires strong partnerships and open communication among a variety of players and stakeholders in the public and private sectors. The quality of leadership and day-to-day management is also important, as is effective marketing. - Developing economically viable businesses or revitalizing a commercial area takes a long time. Having some early, visible products can demonstrate progress and build support in the meantime. - Scale is an issue; projects may successfully serve businesses and create jobs but have little real effect on the economy of the community. This tension must be addressed. -A new component of development review includes the establishment of Impact Advisory Groups (IAGs) where necessary on development projects in order to allow appropriate community input and determination of physical and social impact of development projects and the appropriate mitigation to the impact. - Housing: Boston's RDA's housing team manages the Mayor's housing strategy, induding the provision of resources and design of special initiatives to support the timely production of housing at all levels in Boston. For example: * Transit Oriented Housing Program: In an effort to take advantage of the urban transit system as an asset to development and city living, the RDA is encouraging greater density in commercial and residential development near public transportation nodes. * Artist Live Work Space Initiative: The agency is helping to determine local incentives for artists' living and work spaces throughout the city. * Housing on Main Street: The RDA is offering incentives for second and third story residential use to increase housing opportunities and enliven neighborhood commercial districts. City Comparisons • 4 of 11 CHANDLER, AZ. (Population — 177,000) Introduction. The Conservation, Rehabilitation and Redevelopment Element requires plans and programs for the elimination of slums and blighted areas that may exist within the City, community redevelopment, neighborhood preservation and revitalization, and other purposes authorized by law. In February 1994, a citizen's task force updated the 1987 Chandler Downtown Redevelopment Area Plan. The Redevelopment Area Plan was adopted as the Conservation, Rehabilitation and Redevelopment Element of the General Plan. Chandler residents and staff spent a significant amount of time and effort updating the Redevelopment Area Plan. This Element summarizes, without replacing, the City of Chandler Redevelopment Area Plan adopted in July 1995, which is made a part hereof by reference. Current Situation. Downtown is the cultural, civic, business, and historic hub of Chandler and contains a mix of land uses that provide business, employment, entertainment, and housing opportunities. With development occurring throughout the Chandler area, it is necessary to focus on the downtown area in order to preserve a sense of"place"for Chandler and provide a hub for community building activities. In addition, downtown is a prime location for businesses that provide needed services and amenities. To provide guidance regarding the redevelopment of the downtown commercial and residential areas, the City adopted the Chandler Redevelopment Area Plan. The Plan identifies goals, objectives and policies for the Redevelopment Area. The boundaries of the Redevelopment Area are shown on the Chandler Land Use Map. The Redevelopment Area consists of five planning districts: 1) Downtown, 2) North Arizona Avenue, 3) Southeast, 4) Eastside, and 5) Southside Neighborhoods. The Redevelopment Plan includes specific goals and action steps for each planning district. Overall, however, the rariavalnnmant of rinwnfnwn rhanrilar is fni inriari i innn thraa hasin nrinninals• - Joint private and public funding contributions and cooperation are essential for economic development. - Focus on existing facilities and historical features and concentrate on recreation, entertainment, and service oriented businesses. - Improve the appearance and stability of downtown neighborhoods. Future Trends. The City continues to encourage redevelopment of the downtown. Retail revitalization and housing stabilization will continue to be encouraged. Additional investments, in the form of new City campuses, the redevelopment of the southwest corner of Arizona Avenue and Chandler Boulevard and the northeast corner of Arizona Avenue and Buffalo Street will further enhance downtown Chandler and it's role as a focal point for entertainment, residential, civic, and business functions. Planning Issues -Attracting people to the downtown area when there are other complementary attractions. - Providing downtown services that accommodate the needs of the people that live in the vicinity. - Preserving the heritage of Chandler that stems from the downtown area through design standards and civic programs that celebrate the City's history. Conservation, Rehabilitation and Redevelopment- Goals, Objectives and Policies Goal No. 1: PROMOTE THE REVITALIZATION OF DOWNTOWN CHANDLER AND SURROUNDING NEIGHBORHOODS. Objective: Use sound land use planning, financial investment, coordinated redevelopment management, neighborhood improvement, and economic development strategies. Policy: Proactively administer neighborhood improvement programs to eliminate substandard property and structural conditions within and next to the central business district. -- Policy: Improve redevelopment planning, management, and resource allocations by coordinating the interests and functions of various groups and individuals. City Comparisons • 5 of 11 CHANDLER, AZ. (cont) Goal No. 2: DEVELOP DOWNTOWN CHANDLER AS THE COMMUNITY'S CULTURAL, CIVIC, BUSINESS, AND ACTIVITY CENTER. Objective: Develop downtown as a diverse, balanced community attracting people to live, work, shop, play and gather. Objective: Attract new employers to locate in the downtown area. Policy: Encourage corporate and professional offices to locate in the downtown area, to support local industry, commercial services, and the City government functions. Ground floor retail shops are encouraged within new development. Objective: Create new open spaces in the downtown Redevelopment Area and plazas within new redevelopment projects and developments, where viable. Policy: Provide a mix of new housing opportunities as residential in-fill or where land assemblages allow for the development of medium density housing in residential areas. Policy: Continue to encourage plazas, open spaces, and outdoor gathering areas in the design of downtown building complexes and master planned development. Objective: Create a festive, nighttime atmosphere with places for people to go. Policy: Promote unique themes for new commercial opportunities such as a farmer's market, industrial museum, outdoor events, arts and crafts fair and the like to complement the more traditional, established retail anchors. Policy: Continue to promote special events that complement and support downtown interests. Policy: Strengthen the areas surrounding the San Marcos Resort by expanding specialty retail and service opportunities in a festive, shop-like atmosphere. Goal No. 3: MAINTAIN STABLE, VIABLE NEIGHBORHOODS IN THE RESIDENTIAL AREAS OF THE DOWNTOWN. Objective: Encourage mixed-use redevelopment projects where sufficient land assemblages allow. Policy: Encourage business parks and clean, light industrial users to locate within the area's existing industrial zoning districts. Policy: Continue to promote the Enterprise Zone and other business assistance programs administered by the City, the Chamber of Commerce, and other entities. Policy: Actively recruit small businesses. Objective: Promote new housing in the Redevelopment Area. Policy: Encourage partnerships to bring new housing to the downtown area. Objective: Encourage compatible in-fill development and rehabilitation on vacant and substandard properties. Policy: Identify all properties and parcels suitable for in-fill development. Objective: Discourage or eliminate land use conflicts caused by dissimilar land use and zoning districts. Goal No. 4: CREATE AND MAINTAIN A STRONG IDENTITY FOR THE DOWNTOWN THAT REFLECTS THE CITY'S HISTORICAL, CULTURAL AND ARCHITECTURAL INFLUENCES. Objective: Create a strong design theme for the downtown based on past and present architectural themes. Policy: Maintain the early twentieth century architectural influences in new construction and fagade improvements of existing buildings. Objective: Enhance the appearance of the Strip Commercial (corridors)through streetscape improvements and landscape treatments. Policy: Provide unified landscape themes, street furniture, lighting, unique features, and plaza spaces for gathering. Policy: Promote art in public places. City Comparisons 6 of 11 CHANDLER, AZ. (cont) Goal No. 5: THE CITY, IN COOPERATION WITH OTHER COMMUNITY GROUPS, SHOULD CONTINUE ITS COMMITMENT TO A SUSTAINABLE AND CONSISTENT REDEVELOPMENT EFFORT. Objective: Keep the Redevelopment Area Plan current and sensitive to changing conditions. Policy: Continue to keep residents, property owners, business owners, and interested social agencies involved in redevelopment related issues. Policy: Periodically re-evaluate the Redevelopment Area Plan to make modifications as necessary. DENVER, CO. (Population —555,000) Source: Denver's Office of Economic Development and International Trade (MOED/IT) PROGRAMS AND SERVICES Economic and Demographic Data- We can provide research assistance for companies requiring information about Denver and link companies to other research sources that are knowledgeable about the metro area and Colorado. Enterprise Zone—This program offers tax credits for creating jobs, providing employee health insurance, investing in equipment and R&D, providing training programs, and for rehabilitating older vacant buildings. A substantial portion of Denver's industrial and commercial real estate is within the Enterprise Zone boundaries, including Stapleton and Lowry. Site Job Training and Recruitment Programs —We can link companies needing to recruit or train employees to an active network of public and private organizations performing these services. There are also grant and reimbursement options through the Colorado First program and the Mayor's Office of Workforce Development. Private Activity Bonds - Tax exempt bonds, up to $10,000,000, are available to construct and expand manufacturing facilities and to purchase equipment. To be eligible, manufacturing projects must be job intensive and compatible with the City's economic development goals. Regulatory Assistance -Through our network of City contacts, we can help companies secure permits and licenses and help resolve regulatory issues. Site Selection -We utilize a database of available properties to help find the right site for companies looking to relocate or expand. The database contains a wide array of existing buildings and build-to-suit opportunities in both office and industrial space. We also work closely with Denver's real estate brokeraqe community. Small Business/Financing and Start-up Assistance - MOED/IT offers "gap" financing through our Revolving Loan Fund and Neighborhood Business Revitalization programs and we provide links to other sources of capital, such as the SBA 504 program. In addition, we provide technical assistance to small businesses and start-up firms, and we support the Denver Enterprise Center, which offers industrial and office space for a wide variety of companies. Also, Start Up Base Camp offers mentorinq opportunities on all start-up issues. International Trade- With the help of our trade offices in London, England, and Shanghai, China, Denver has become the region's international business center. MOED/IT promotes international trade and foreign investment for the City and County of Denver by providing a variety of services for both local and international businesses. Brownfields -The EPA has funding available for site assessment and clean-up activities on Brownfield sites in the Mayor's Focus neighborhoods. This program concentrates on infill sites in -- targeted older neighborhoods to encourage commercial and mixed-use development. Foreign Trade Zone—The Foreign Trade Zone (FTZ) allows manufacturers using imported parts and materials in their products to expedite customs and reduce or eliminate some fees and tariffs. Denver's General Purpose zone has two locations: near the Stapleton redevelopment area and at Denver International Airport. In addition, MOED/IT can assist manufacturers in establishing Foreign Trade Sub-zones at their place of business. City Comparisons • 7 of 11 GLASGOW, SCOTLAND (Population —620,000) Source: 'Glasgow Action', a plan created by the City to revitalize Glasgow City Center. Objectives: - Make Glasgow more attractive as a business base. Foster close links between interest groups, particularly between local government agencies and the business community. - Make Glasgow more attractive to people. Encourage corporate relocation decisions, give local people a positive reason to stay, and attract visitors. - Create an entrepreneurial environment. Similar to that which made the city renowned as a center for entrepreneurship in its manufacturing heyday, but this time directed at the emerging opportunities in services. - Promote Glasgow, communicating the improving reality and exciting vision for the future to Glaswegians and key-decision makers throughout the city. INDIANAPOLIS, IN. (Population —782,000) History of downtown focus in Indianapolis - In 1977, the Commission for Downtown, Inc was established. In 1993 the name was changed to Indianapolis Downtown, Inc. (IDI). * The mission of IDI is to address, in partnership with the public and private sectors, critical issues that affect the growth, well being, and user-friendliness of downtown Indianapolis. - Indianapolis is rapidly reaching the end of its potential for Greenfield development and must begin to emphasize maximizing the viability of its existing neighborhoods as desirable places to live, work and recreate. -The purpose of the Redevelopment Committee was to investigate the comprehensive planning issues related to the areas of the city that are blighted, aging and lacking reinvestment. - The City of Indianapolis has participated with neighborhood associations, community development corporations, private development companies and countless individuals to restore older housing, adapt and reuse commercial and industrial space and also attract new construction and in-fill development. * Many neighborhoods seek retail and office services that serve the shopping and employment needs of residents. The challenge remains to stem further decline and to attract new investment to other neighborhoods. Implementation Infrastructure, Tools to Strengthen Existing Assets; and Tools for Attracting New Investment. The major recommendations in these groups are: Implementation Infrastructure - Increasing the capacity for redevelopment within the city government - Refinements to city regulations, procedures and incentives to enhance redevelopment efforts and improve the quality of redevelopment projects - Working in collaboration and partnership with community development corporations, private developers and other neighborhood-based organizations - Broadening redevelopment efforts beyond their traditional base in the inner-city to address declining corridors and suburban areas Tools to Strengthen Existing Assets - Refining lending packages for a variety of single family and small multi-family projects that will stimulate housing rehabilitation and maintain the city's stock of affordable housing - Strengthening existing retail, commercial, industrial and cultural facilities - Coordination of various public investments and services to enhance redevelopment efforts Tools for Attracting New Investment - Creating additional tools that will attract new investments in retail, commercial and industrial facilities - Coordinate redevelopment efforts with workforce development City Comparisons 8 of 11 INDIANAPOLIS, IN. (cont) -Attract new investment to "Brownfield sites"and "greyfield sites" - Encourage business districts to organize using models such as "Main Street" for marketing and promotions and to plan and implement physical improvements JACKSON, MS. (Population — 184,000) Source: Comprehensive Plan, Goals and Objectives adopted by Jackson's City Council Plan revolves around nine maior topic areas: - Quality physical growth and development - Strong neighborhoods - Reliable, cost-effective and equitable community facilities, services and infrastructure - Enhanced quality of life and community image - Exceptional and diverse cultural and educational experiences - Effective community oriented leadership and partnerships - Improved race relations - Safe and healthy citizenry - Inclusive strategic opportunity OKLAHOMA, OK. (Population —506,000) In 1993, Oklahoma City voters approved a $300 million downtown development plan to build new facilities for visitors, residents and tourists. The Metropolitan Area Projects (MAPS) plan was funded by a temporary one-cent sales tax in effect for 66 months or 5 '/2 years. The Mayor appointed a mandated 21-member citizen oversight board shortly after voters approved the project. The board reviews project components including financing and site location and then makes recommendations to the City Council. The MAPS board led the public review process for the MAPS Master Plan which the Council approved in 1995. The MAPS projects included the following projects: renovation and expansion of the Cox Business Services Convention Center, Civic Center Music hall and the State Fairgrounds, a new sports arena, baseball stadium, library/learning center, downtown riverwalk, and a new transportation link (rubber- wheeled trolley fleet providing transportation between the airport, fairgrounds, downtown and key visitor attractions.) PASADENA, CA. (Population —400,000) City Vision and Feedback: - attempt to develop a unified vision for the future of the city, shaped and driven by community values and reflected city residents - using various techniques including the media, an extensive community outreach program was developed and used to simultaneously educate the public on planning issues and provide numerous opportunities for feedback and participation - early 3,000 residents attended over 55 forums, and three newsletters were mailed to over 65,000 households and businesses As a result of the feedback process, the following guiding principles were incorporated into Pasadena's overall general plan for the city: - Growth will be targeted to serve community needs and enhance the quality of life. - Change will be harmonized to preserve the city's historic character and environment. - Economic vitality will be promoted to provide jobs, services, revenues and opportunities. - Pasadena will be promoted as a healthy family community. - Pasadena will be a city where people can circulate without cars. - Pasadena will be promoted as a cultural, scientific, corporate, entertainment and educational center for the region. - Community participation will be a permanent part of achieving a greater city. City Comparisons • 9 of 11 PHOENIX, AZ. (Population — 1,321,000) Economic Development and Business Assistance Business Assistance (Attraction/Expansion/Relocation) Programs that provide technical and financial assistance to businesses wanting to locate or expand in Phoenix or relocate within Phoenix. Information also includes the city's efforts to retain businesses and services provided to meet workforce needs. Downtown Phoenix What's going on downtown, a downtown map, downtown groups and associations, and the downtown development area. International Business Information on the Foreign Trade Zone, Sky Harbor Center and assistance targeted toward international businesses. Small Business Assistance Management and technical assistance to small businesses, business seminars and training, small business resource directory, Maricopa Community College Small Business Development Center and Phoenix Enterprise Community information. General Information Economic overview, frequently asked questions, vital statistics and economic development overview and highlights. PORTLAND, OR. (Population —529,121) Source: 2000 Downtown Portland Retail Strategy Improvement of retail in Portland: Protect and strengthen the retail core. Includes the observation that unless the "core area" is sustained as a strong central draw, the positive effects for other retail, office and residential development downtown will be far more difficult to achieve. Actions include: 1.)Adopting policies that protect and strengthen core but allow"the Core to expand organically in all directions." 2.) Maintain Portland's the short-term parking "Smart Park" public parking garages plus "the addition of on-street parking and well-located garages (underground if feasible). 3.) Encourage street-level retail activity on sites containing non-retail uses such as banks, service businesses and parking aaraaes. Add market rate housing. Action involves that the City"formally adopt a goal of constructing 2,500 market rate housing units in the downtown core by 2010." Protect and strengthen local retailers. Recommendations include initiating "a financial program to assist local retailers, faced with displacement, with relocation and tenant improvement costs (within the downtown)." Improve the linkage between the retail core and (other areas that attract people). Ideas include: 1.) Creating distinctiveness in downtown sub-areas. 2.)Strengthening retail streets that serve as connectors. 3.) Exploiting existing public amenities and investing in new ones to draw people downtown. Recruit selected retailers and market downtown. Recommendations include: 1.) Identifying retailers that would augment retail sales and targeting them for recruitment. Target retailers include "national specialty stores"and "independent stores that will operate either a single unit or a flagship store in downtown Portland." 2.)A long-term goal of"branding" downtown Portland and establishing an "industry-wide profile"for downtown Portland among the retail industry. City Comparisons 10 of 11 SACRAMENTO, CA. (Population —400,000) Economic Incentives to draw businesses/retail downtown Enterprise Zones offer the following: * sales tax credits on qualified property * wage tax credits for 5 years for hiring eligible employees * 100% net operating loss carryovers available up to 15 years * financing assistance and hiring assistance through Sacramento Works! Program Redevelopment Funds are used to provide financial assistance to development projects meeting revitalization goals and criteria. Recycling Market Development Zone Programs offer incentives to businesses that use second markets from the waste stream as feedstock for their manufacturing processes. Materials identified to provide businesses with continuous feedstock include paper, corrugated containers, old newspaper, plastic(PET), and wood waste. Incentives include low-interest loans of up to $1,000,000 per applicant, financing assistance, product marketing, and permitting assistance, five- year hiring credits, sales or use tax credit on manufacturing equipment, business expense deduction, net operating loss carryover, and a net interest deduction for lenders. Sacramento's 2005 Redevelopment Strategies (5 total): - Continue to increase downtown employment - Pursue the development of complimentary retail development - Pursue development of cultural and entertainment facilities - Development of Housing and Mixed-Use Projects as Revitalization Catalysts - Fill the gaps in Downtown public improvements TACOMA, WA. (Population — 194,000) The City of Tacoma created a comprehensive strategy to help orchestrate the future development of downtown. The strategy builds on the basics of: - Good urban design - Desirable housing - Efficient transportation - Enjoyable open space General Policies for the downtown area: - Downtown should be composed of a number of districts and neighborhoods, each with its own character, mixture of uses and intensity. - Downtown districts shall be connected to each other and to surrounding neighborhoods by landscaped streets, linked open spaces, pedestrian and bicycle routes, and transit. - The greater intensity and density of development anticipated for downtown shall be moderated along its westerly edge to reflect the lower density residential neighborhoods that are adjacent to downtown. - The city shall seek to secure the highest quality in the design, material and construction of both public and private development. - New development shall reinforce pedestrian activity at the street level, present an attractive and varied profile on the skyline, and provide opportunities for artistic expressions all contributing to the unique character of downtown Tacoma. - Ongoing programs and funding priorities should ensure that downtown streets and sidewalks are clean, safe, well-lighted and attractive. - Public transportation shall not only provide a needed service for commuters, residents, shoppers and visitors, but should contribute to the quality of the streetscape. - Parking supply, including both on-street and off-street facilities, should be managed to emphasize short-term use over long term use, ensuring an adequate supply for shoppers and visitors. City Comparisons 11 of 11 TACOMA, WA. (cont) - Parking facilities should be designed to contribute to an attractive appearance of the streetscape and to provide customers with convenient access to the building. - Design review of development proposals should be used to ensure compatibility between older, especially historic structure, and newer structures. - The city should employ a variety of techniques, including regulations, incentives, infrastructure investments, information partnerships and property disposition within the limitations of state laws to encourage desired development. • 6/6/2002 SHEET A Propos d Amendment to On-Going Budget Proposed Straw Poll Results Line# 1 Personal services adjustment(net adjustment for all departments) $ (6,629) City Attorney's Office 2 Additional city prosecutor 57,535 3 Additional savings in process service costs (54,100) 4 Correction of error(assistant city attorney) (62,000) • CED • 5 Electricity savings for street lighting • (50,000) 6 Eliminate building inspector position (47,000) • 7 Eliminate zoning inspector position • (42,000) •42,000 Fire 8 Eliminate dedicated staffing of CERT program (3 FTEs)net of fees (110,000) 20,500 Management Services 9 Reduce Justice Court operating expenses (34,937) 10 Additional amount to pay for parking meter collection by police 4,874 11 Police Civilian Review Board investigator 90,500 12 Eliminate policy development specialist position (91,704) Police 13 Delete mobile watch coordinator position(balance of proportional cuts) (12,160) 23,500 14 Delete 2 of 5 youth and family specialists (104,000) 52,000 15 Eliminate 1 of 3 information specialists (31,000) 16 Eliminate 1 of 5 civilian community mobilization specialists (49,000) Public Services 17 Water for parks 83,000 18 Waste disposal for parks 20,531 19 Price increase for CBI security 27,514 20 Utility charges for City-owned facilities 90,963 21 Gateway area agreement-water&maintenance 24,000 22 Additional seasonal and part-time staff(0.95 FTE) 33,905 23 Reduce graffiti removal materials(eliminate materials for businesses) (19,928) 19,928 24 Reduce electrical power on traffic signals (39,624) 25 Eliminate hazardous waste funds (24,996) 26 Transfer all of accountant III to Golf Fund (14,500) 27 Eliminate engineer III (56,340) 28 Eliminate gardening staff at International Peace Gardens (54,696) 29 Eliminate retirement payout budget (230,900) 30 Eliminate equipment operator (45,132) 31 Take over part of Jordan River Trail&Cottonwood Park 103,468 (47,000) 32 Outsource impound lot operations starting Sept (126,627) 33 Reduce rent expense(Transfer$104,000 to one-time revenue) (243,762) Non-Departmental 34 Property insurance 20,000 35 Retiree insurance increase-City share 33,000 36 Participation in SLCC television project 15,000 37 Use of account balance in Neighborhood Matching Grant (233,000) 38 Decrease in transfer to CIP (1,000,033) Total $ (2,179,778) $ 110,928 6/6/2002 SHEET B Possible Optional Cuts/Other Priorities Straw Poll Results Line# 1 Annual cash conversion of personal leave $ 40,000 2 Additional savings in process service costs(Prosecutors Office) 18,000 3 Additional savings in process service costs(Management Services) 40,000 4 Engineering Division rent for July-Dec Pay(remainder with one-time funds) 17,194 5 Parking meter collection-urge other options of Wlecting A111,874 Architects(Proper allocation of expenses to cap projects)Total cost$139,762 ,000 Fund training for Boards and Commissions 8 Fund placement of Speed Boards in community (50,000) is Fund Youth Programs with on-going revenue nolDe-time($150,000) 1 Economic Development Corporation of Utah Re uce contribution to$100,000($32,992) 11 Reduce Police overtime 12 Reduce Fire overtime 13 Crime lab field technicians-Grant(1 FTE$35,500,2 FTE$71,000) 14 Victim advocate position in Police(grant expires December 31)$22,500 for 6 months 15 Fire medical fees(possibly could be reduced$16,000) 16 Reduce budgeted pay step increases by 0.25% (includes bargaining units)$210,000 Use a small portion of fund balance each year to fund on-going expenses(1/10 of 1%is 17 $159,570) Total $ 147,068 6/6/2002 SHEET C On -Time Proj cted Revenu and Propo ed Uses Propo ed Straw Poll R sults Lin # R v nue 1 Additional 1/64 sales tax reimbursement(actual is$190,863 less) $ 4,209,137 $4,209,137 2 SLOC reimbursement of Salt Lake Sports Complex(less than originally projected) 2,029,168 2,029,168 3 Reimbursement from UTA from sales tax distribution not required for light rail 1,800,000 1,800,000 4 Surplus in SID guarantee account(problem with this according to City Treasurer) 177,957 77,957 5 O e-time savings from refinancing the City&County Bull ' 567,591 • 567,591 6 �ess revenue in fund balance over 10%available for oMime allocation (fund balance of$19.2 million is 12%of on-going General Fund revenue)$3,275,000 Total projected one-time revenue $ 8,783,853 $8,683,853 _ Proposed Uses • 7 Library Square improvements $ 4,000,000 8 Youth program endowment 3,000,000 9 Youth program operations 150,000 10 Houser sculptures 400,000 200,000 11 Olympic legacy projects in neighborhoods 700,000 12 Rent Expense for Engineering Division before moving to city owned space 104,000 13 CIP contingency 429,853 14 Fund accumulated liability for vacation/sick leave with one-time revenue($650,000) 15 Additional prosecutor-12 months with one-time money(6 months$28,768)$57,535 16 Fund neighborhood watch coordinator for 6 months with one-time revenue$23,500 20 Increase reserves in Governmental Immunity Fund 21 Appropriate excess in fund balance over 10%to accumulated liability for vacation/sick leave (fund balance of$19.2 million is 12%of on-going General Fund revenue)$3,275,000 22 Accelerate GIS equipment funding$1,000,000 23 Fund open space endowment fund$1,000,000 24 One-time revenue appropriation to CIP Fund 1,383,806 25 Increase fund balance to defer discussion of uses of one-time revenue 7,100,047 Total proposed uses of one-time revenue $ 8,783,853 $8,683,853 Straw Poll One-Time/On-going Proposed Uses in CIP Fund R sults 26 Additional appropriation to local street reconstruction 1,372,123 27 Appropriation to Yalecrest Triangle Park/Median 84,000 28 Reduce appropriation to CIP fiscal year 2002-2003 Contingency(amount over$200,000) (72,317) Total additional proposed uses of one-time/on-going revenue in CIP Fund. $1,383,806 • Pt SALT LAKE CITY COUNCIL MAYOR'S RECOMMENDED BUDGET AMENDMENT FISCAL YEAR 2002-2003 DATE: May 31, 2002 SUBJECT: Unresolved issues with the Mayor's Recommended Budg t Amendment STAFF REPORT BY: Michael Sears, Gary Mumford cc: Mayor Anderson, Cindy Gust-Jenson, David Nimkin, Rocky Fluhart, Roger Cutler, Rick Graham, LeRoy Hooton, Rick Dinse, Margaret Hunt, Chuck Querry,Tim Campbell, Steve Fawcett, Laurie Dillon, Kay Christensen, Susi Kontgis,Randy Hillier, DJ Baxter The Council received the Mayor's Recommended Budget Amendment on May 7, 2002 and has held budget briefmgs with each of the City's departments at subsequent meetings. During each of the briefings direction was provided to Council staff concerning which budget amendments the Council was in general agreement. The Council held a Public Hearing on the proposed budget amendments on May 21, 2002 and has communicated additional information to Council staff after receiving public input. Council staff has prepared an attachment, which lists the proposed budget amendments, and those amendments that some Council Members would like changed (Sheet A). Council staff has also attached Sheet B, which is a listing of possible optional cuts and other priorities in which one or more Council Members have expressed an interest. The total of changes to the Mayor's recommended budget amendment on Sheet A needs to be offset by optional cuts on Sheet B. Council staff has included an example to show one possibility for balancing. A blank column is also included for use by Council and staff during the work session discussion. Sheet C lists the one-time revenue and proposed uses. With the exception of a couple of items, Council Members tentatively decided to defer consideration of uses of one-time revenue until after the ongoing budget is adopted. The attachments can be projected onto a screen for the unresolved issues briefing on June 4, 2002. Council Members will note that the format for dealing with the unresolved issues follows the Capital Project and Grant presentation formats. Final adoption of the proposed budget amendments with any changes will take place during the Council Meeting on June 13, 2002. Council staff will prepare budget amendment motion sheets based on the direction given during the briefing on June 4, 2002. Also attached are responses from the Administration on questions posed during department briefings. You will also find a listing of draft legislative intent statements that have been mentioned during work session discussions or by individual Council Members. The Council may wish to discuss these statements and suggest other items to be added to the list of potential intent statements. The following numbered items are items that have been discussed by Council Members during the budget amendment process. Items that the Council may wish to especially consider during the work session have been shaded on the attached sheets for ease of identification. On-going Revenue and Expenditures Sheet A #2 - Additional city prosecutor - Some Council Members would like to fund this position on a temporary basis for 6 months or one year until additional information is available. Other Council Members may prefer not funding this position until comparative information is presented on a national basis. One Council Member has expressed interest in funding the position on a long-term basis. Sheet A #7 - Eliminate zoning inspector position - Some Council Members would like to find enough revenue to keep the zoning position fully funded for fiscal year 2002-2003. Sheet A #8 - Eliminate dedicated staffing of CERT program (3 FTEs) n t of fees - Some Council Members would like to fund a part-time position that would coordinate and administer the CERT program. A part-time position allocation would be $20,500; a full-time position allocation would be $41,000. Interest has also been expressed in maintaining the program to a greater extent. Sheet A #13 - Delete mobile watch coordinator position (balanc of proportional cuts) - Some Council Members would like to fund a part-time position that would coordinate and administer the mobile watch program. A part-time position allocation would be $23,500; a full-time position allocation would be $47,000. Interest has also been expressed in maintaining the program to a greater extent. Sheet A #14 - Delete 2 of 5 youth and family specialists - The original proposal by the Administration included the reduction of 4 specialists in the Youth and Family program. The Mayor has since changed the recommendation to reduce the program by only 2 specialists. The Administration proposes to offset the change by paying for rent for the Engineering Division until it moves into City-owned space using one-time revenue since it will not be an ongoing expense. Some Council Members have indicated that they would like to fund one additional position. Total staffmg for this program will be 4 positions if the latter scenario is adopted. Sheet A #23 - Reduce graffiti removal materials (eliminate materials for businesses) - Some Council Members would like to keep the funding for this program. Sheet A #33 - Reduce rent expense ($139,762 + $104,000) - The Administration has changed some recommendations since submitting the budget amendment. Two items are being proposed for reinstatement. One-time revenue is being proposed to cover the reinstatement of the suggested position eliminations. The two reinstatements are the In-House Architect program at a cost of $139,762 and restating two youth and family specialist positions at a cost of$104,000. 2 Sh t B #1 - Annual cash cony rsion f p rsonal 1 av -Actual expenditures for the conversion of personal leave for the past two years are less than the budgeted amounts by about $40,000. Sheet B #2 - Additional savings in process service costs (Prosecut is Office) -The actual expenditures for the process service function are lower than the budgeted amounts by about $18,000. Sheet B #3 - Additional savings in process service costs (Managem nt Services) - The actual expenditures for the process service function for the Administrative (soon to be Justice) Court by about $40,000. Sheet B #4 - Engineering Division rent for July-Dec Pay (remainder with one-time funds) - If the recommendation for using one-time revenue to cover July-Dec rent is adopted by the Council, $17,194 remains in the on-going budget. This amount can be recaptured and appropriated. Sheet B #5 - Parking meter collection - urge other options of collecting- If the City were to use a different method of colleting parking meter revenue a cost savings of$31,874 can occur. Remaining allocation for the collection of parking meter revenue would be $50,000. Sheet B #6 - Architects (Proper allocation of expenses to capital projects) - During the briefing on the elimination of two licensed architects it was noted that the research still needs to be done to ensure proper cost allocations and consistency within the assignment of engineering costs to capital projects. The positions would remain as the Administration has recommended. The Engineering Division budget would be reduced by $50,000 in anticipation of 110 proper cost allocation to capital projects. Some Council Members have also indicated a desire to include a legislative intent statement asking for an update on the cost allocation review. Sheet B #7 - Fund training for Boards and Commissions - During the Community and Economic Development department briefing some Council Members indicated that they would like to see the training budget for Board and Commissions increased. Council staff has indicated $15,000 as the increase amount. The Administration may have a more specific amount. Sheet B #8 - Fund placement of Speed Boards in community - Some Council Members have indicated that they would like to see the speed boards better utilized. There are several possible ways to ensure that the speed boards are in the neighborhood during the peak travel periods of the day. An amount of $50,000 may cover a contract to distribute the speed boards in the neighborhoods. Sheet B #9 - Fund Youth Programs with on-going revenue not one-tim - During the briefing on non-departmental expenditures, the Administration indicated that the City will need annual seed money to use when seeking grant funding. This expenditure that was proposed, as a one-time expenditure with one-time revenue might be better budgeted as an on-going expenditure, funded with on-going revenue. 3 On -tim Rev nue and Rap nditur Sh t C #4 - Surplus in SID guarant ac unt (Som n ds t r main to use as th City's guarante for issuing d bt) - The proposed one-time revenue sources include $177,957 in SID guarantee funds.The City treasurer will soon be issuing additional SID Debt for the East Liberty Park area. If the full amount is removed, the Treasurer will have to ask for additional funds during a budget opening. Some Council Members have indicated that it would be best to leave a portion of these funds and avoid a future budget request. Sheet C #10 - Houser sculptures - During the budget briefmg on non- departmental expenditures the Council indicated that they would like to reduce the proposed expenditure for the purchase of sculptures to $200,000. The Council also indicated that this money would be used as a match for fundraising efforts. Sheet C#14-Fund accumulated liability for vacation/sick leave with on - time revenue ($650,000) - The City has an unfunded deferred liability of $11,600,000 for accumulated vacation and sick leave payments for retiring personnel. One Council Member suggested using part of the General Fund balance to begin funding this liability. There is also a concern with that there is not consistency in how vacation and retirement payouts are administered and budgeted. Currently the Police, Fire and Public Services departments have a budgeted amount for retirement expenses. The Administration is recommending.that the allocation for Public Services be eliminated to help balance the budget. Budgeting and charging retirement payouts to a separate fund or account would allow for more consistent budgeting and accounting between General Fund departments. The majority of the budget for retirement • payouts relates to prior years. Sheet C#21-Appropriate excess in fund balance over 10%to accumulated liability for vacation/sick leave (fund balance of$19.2 million is 12% of on-going General Fund revenue) - Some Council Members recommend that a separate liability fund be created to fund the deferred liability for vacation and sick leave. The unfunded liability is approximately $11,600,000. A reduction in General Fund balance to 10%(reduction of$3,275,000)could be used to begin to fund the deferred liability account. This item relates to the item#14 above. Sheet C #24 - One-time revenue appropriation to CIP Fund - During the briefing on the Capital Improvement Program, Council Members indicated a desire to increase the appropriation level of the local streets reconstruction project and to fund the Yalecrest Triangle park/median. One-time funds of $1,383,806 could be used to bring the CIP projects up to the requested funding levels. (The current recommendation includes an increase of$72,317 to CIP contingency. This amount could be applied to the Yalecrest Triangle park/median. $1,372,123 would go to local streets reconstruction and$84,000 to the Yalecrest project.) Sheet C #25 - Increase General Fund balance - During the department budget briefings Council Members indicated that they would like to delay making an appropriation decision on the proposed uses of one-time revenue. The Council would make an appropriation of approximately $7,200,047 to General Fund balance and decide the uses of one-time revenue later in the year. 4 IMPOUND LOT PROPOSED CUTBACKS AND INCREASES A Personal Services $ 17,830 One time Expense $ 15,000 Storage increase by$5 $ 80,000 One Seasonal position $ 19,200 TOTAL $ 132,030 B Personal Services $ 17,830 One time Expense $ 15,000 Storage increase by$5 $ 80,000 One FTE position $ 31,000 TOTAL $ 143,830 C Personal Services $ 17,830 One time Expense $ 15,000 Storage increase by$5 $ 80,000 Two seasonal positions $ 38,400 Supervisor step down to lot attendant position $ 5,220 TOTAL $ 156,450 Any one of the above proposed changes could be made and the Impound Lot would still operate efficiently by city employees Provided to the Council by Steve Fawcett on May 22, 2002 DEPARTMENT OF AIRPORTS 2001 —'2002 (none open) ATTORNEY'S OFFICE 2000—2001 (carried over) Funding of Governmental Immunity Reserves - It is the intent of the City Council to support the Administration's proposal to accumulate a reserve in the Governmental Immunity Fund equal to three times the rolling average claim payout. Department Response: A reserve balance within the Governmental Immunity Fund has been building for several years. With the exception of FY 2000, the fund balance has increased each of the last five years. The Administration will maintain a fund balance level that is the higher of the amount required by the external auditors or the three-year rolling average of claim payouts. This may require a transfer from another source into governmental immunity from time to time to maintain this level. Encourage Safety and Accountability- It is the intent of the City Council that the Administration considers adding more departmental accountability to the City's loss control program that encourages and promotes safety. It is also the intent of the City Council that the Council be provided with periodic reports on losses by departments. Department Response:For several years, Risk Management has worked toward improved administrative efficiencies in an effort to drive down the cost of each workers'compensation and third party liability claim. These efforts have been successful but have not addressed the prevention of the losses. Because of that Risk Management has been formulating a new approach to safety. The FY02 budget includes funding to hire a consultant to begin implementation of a new plan. The new plan will include several elements designed to work together in providing motivation for the Departments to step up their loss control efforts, such as Police Officer accountability for accidents. As the program progresses the elements are expected to be refined and modified to better fit the City's culture. The following list describes the loss control program elements and priorities: Top leadership commitment and visible support for safety. Department accountability for safety performance, including safety performance reviews for the department and division heads. A department specific safety and hazard analysis survey administered by Risk Management. ._ A restructuring of the workers'compensation and governmental immunity budgets to a system IIthat engenders cost accountability and incentives. Citywide safety resources provided by Risk Management including incentive and initiative funding, training opportunities and outside experts. Standardized progress measurements designed to enable benchmarking within the City as well as with other public entities. Due to the complexity of some of the above elements, the program will be implemented in stages. To begin this process, Risk Management met with the Chief Administrative Officer and the department heads from each of the larger departments in July 2001. During these meetings, Risk Management presented loss data and statistics for the City as a whole and by the specific departments. The data identified the types of incidents or injuries that have a high frequency rate or high costs associated with them. The departments were then expected to formulate a plan to reduce their losses in conjunction with Risk Management's ongoing efforts. The reports provided to the Departments in July will also be presented to the Council for their review. The following timeline reflects the anticipated progress in the loss control program over the coming months. Loss Control Program Timeline Jul Au' Se• Oct Nov Dec Jan Feb Mar A t r Ma Jun 111111111111111 Loss reports provided Citywide Safety Resources Available Loss Control Plan Approval111 Accountability Establishment Standardized Progress Measurements Implemented G. I. and W. C. Budget Restructuring Hazard Survey Production and Distribution DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 2001 —2002 Street Lighting District- It is the intent of the City Council that the Administration briefs the Council regarding the possibility of using accumulated reserves in the street lighting districts for converting assessment districts to the privately-owned streetlight program(at the option of the neighborhood), for upgrading streetlights to more decorative residential oriented lighting, or for reducing assessments to . property owners. • Department Response: The Department continues to work on the multiple issues that have arisen from this proposal. The Transportation staff is scheduled to meet with 11 community councils over the next several months. The plan that comes out of the meetings will be forwarded to the Planning Commission and then on to the City Council sometime in the fall of 2002. Economic Development Corporation of Utah - It is the intent of the City Council that the Administration coordinates with the Economic Development Corporation of Utah to provide semiannual written information to the Council regarding the accomplishments of EDCU that benefits to Salt Lake City. Department Response: The Department will forward to the Council the semi-annual report it received from the EDCU. FIRE DEPARTMENT City Council Legislative Intent Statements,Action Items and Requests 2001 —2002 Community Education in the Fire Department-It is the intent of the City Council that the Administration explores the feasibility of training non-sworn civilian staff or volunteers to perform community education services to Salt Lake City schools. Department Response: The Fire Department is currently utilizing a non-sworn civilian to perform community education in the Salt Lake City schools. We have utilized him for this specific purpose since February 21st, 1978. He is also utilized in the Citizen Emergency Response Team (CERT) training. He has been involved in other public events such as "Chief Le Matchless and Doctor Ben E. Ficiary"the clown during parades, Fire Prevention week and Emergency Services week. He is a frequent guest on local radio programs geared towards children. He is currently able to meet the needs of the City schools and the Fire Department. The department has no plans to change this position from a non-sworn civilian to a firefighter. DEPARTMENT OF MANAGEMENT SERVICES 2000—2001 (carried over) Street Reconstruction - It is the intent of the City Council that local street reconstruction be funded within the Capital Improvement Program on an annual basis in accordance with the Council's adopted Five-Year CIP Plan. Department Response: The Administration will evaluate local street reconstruction in S conjunction with the overall CIP and will solicit input from the Citizens CIP Committee and will make funding recommendations during each budget cycle. Set Aside Money for Severance Pay - It is the intent of the City Council that the Administration sets aside a portion of severance pay that is estimated to eventually be paid on historical experience or other factors. These moneys should be expensed in the years accrued and recorded as fund liabilities. Department Response: Severance pay is defined as payment for years of service at involuntary separation from the City of"at will"employees. It does not include purchase of vacation, personal leave, sick leave or retirement/layoff account leave. According to (GAAP) Generally Accepted Accounting Principles, governmental funds like the General Fund cannot accrue for a long-term liability. A long-term liability is one of three months or more. Enterprise and Internal Service funds can accrue for a long-term liability. Likewise, an expenditure of funds cannot occur until a legitimate transaction occurs to require expensing resources: For example, an actual termination and payment of severance benefits. In order to avoid this accounting difference with General Fund severance estimates, the General fund would have to appropriate a transfer of a certain amount to the Risk Management and Insurance Fund in order to create the accrual. When a termination occurs the appropriation in Risk would be expended. The Administration will look at a ten-year history of severance payments and work toward an acceptable solution to this problem. Constituent Tracking System- It is the intent of the City Council that the Administration investigates the feasibility of a customer service/work order tracking system. Department Response: The Constituent Tracking Software has been installed in the Council Offices and is available to the staff. Jan Aramaki is coordinating the effort to build the appropriate pick lists for the "Key Words"to be used to categorize contacts/correspondences and the Actions section that will determine how items flow through the system. Discussion with the Mayor's Community Affairs group is also under way to ensure that the codes developed will meet both groups needs. Channel 71 - It is the intent of the City Council that the Administration uses Channel 71 to promote City programs and functions including those events sponsored by other organizations that receive City financial support. More emphasis should be placed on making the promotional segments more dynamic and interesting. Further, it is the intent of the City Council that the Administration explore opportunities for partnering with schools in this endeavor. Department Response: We are in the process of trying to obtain the rights to re-broadcast 2 videos recommended by the Mayor's Office on Diversity in the Workplace. These rights have been sold and resold multiple times and we are having trouble finding the current owner of those rights to obtain permission. Work on this is continuing. Also on the slate are plans to work with City schools to help broadcast Council and other public meetings. We have met with UDOT Officials and their vendor on delivering traffic monitoring capabilities and Traffic-link camera shots via Channel 71. These new features provide information on road construction, accidents, etc. They have prepared a demo of their capabilities for us to view very soon. We are also exploring an option to provide just the traffic link cameras on the Channel during peak drive times as another option. 1110 We are preparing to broadcast Traffic-link via Channel 71 in January 2002. We are in the process of performing a major upgrade of the system. This upgrade will allow us to broadcast a greater variety of media with less effort on the part of the IMS people assigned. ATT switched our Channel from 71 to 17. We view this a positive change although the coordination between ATT and IMS was lacking. Steps have been taken to correct this. DOT has backed off from their expected date to deliver a live traffic feed. No new date has been set at this time. We have successfully broadcast the City Council Induction Ceremony and the Mayor's State of the City address and we continue to look for other opportunities to improve the content of channel 17. In the past the Council has expressed hesitancy in broadcasting all Council meetings but technically this is a very real possibility that could be done for a minimal cost in hardware. We have discussed internally making connections with Horizonte, Highland High, and Salt Lake Community College to help us in this on the staffing side. Channel 17 has undergone some significant changes. We have recently completed an upgrade of the hardware supporting the station. That upgrade allows us to do more scheduling of events and handle a wider variety of media. During the Olympics, Channel 17 was used to publish schedules and event information for Washington Square. Videos of the activities around Washington Square were broadcast and the NYSE opening bell from the steps of the City& County Building was sent out live and rebroadcast several times. We continue to solicit new, informative, and useful content for Channel 17. A meeting was held concerning the content on SLCTV(Channel 17) with Josh Ewing from the Mayor's Office. The basic theme of the meeting was to add more pertinent content to SLCTV. There were 3 action items that came out of the meeting. 1. The Mayor's Office will be providing IMS with public interest videos that will be scheduled and broadcast at pre-determined times. • 2. IMS is researching software that will make creation of content easier and assist in training of interns in the Mayors Office to publish new information regularly. 3. The Mayor's Office and IMS will create a supervisory committee to ensure that the content on SLCTV is pertinent and useful for the citizen's of Salt Lake. Home-Buyer Incentive Program- It is the intent of the City Council that a proposal be prepared and submitted to the Council for consideration regarding the development and implementation of a home- buyer incentive program for City employees based on programs offered by other cities and organizations, in collaboration with and in addition to Federal programs or opportunities. Department Response: The Administration referred this issue to the Citizen's Compensation Advisory Committee for their review and recommendations. We have completed surveys of other jurisdictions regarding this issue. A completed report along with our recommendations was attached to an earlier response. 2001 —2002 Biennial Budget Submission - It is the intent of the City Council that the Administration presents a biennial budget that is balanced in both fiscal years using one-time funds for one-time expenses,with no less than nine percent of ongoing General Fund revenues invested annually in the Capital Improvement Program fund. It is further the intent of the City Council to maintain a healthy fund isbalance of at least 10%of General Fund revenue. Finally, it is the intent of the City Council that the Administration presents comprehensive budget information to the City Council by the first Tuesday in May of the current fiscal year regarding the second fiscal year of a biennial budget. Department Response: The Administration concurs with this legislative intent, except that the Administration believes flexibility should be preserved by dedicating "an amount equal to nine percent of General Fund revenue"invested annually in the Capital Improvement Program fund. Fiscal Note on Proposed CIP Projects - It is the intent of the City Council that the Administration provides the Council with a fiscal note on proposed capital improvement projects that require additional ongoing operations and maintenance (new parks, additional buildings, etc.). Department Response: The Administration concurs with this legislative intent and will identify the operational costs associated with each new CIP funding request. Submission Format for Proposed CIP Projects - It is the intent of the City Council that information relating to proposed Capital Improvement Program projects be submitted in a format similar to that of the comprehensive CDBG reports, including all applications, CIP Citizen Board recommendations, and the Mayor's final CIP recommendations. Department Response: The Administration concurs with this legislative intent. We prepared the amendment CIP report in the same general format as the CDBG report. CIP Budget- It is the intent of the City Council that the Administration submits the Capital Improvement Program budget at least thirty days in advance of the General Fund budget to allow ample time for review, and to ensure that the Council's policy of 9%of ongoing revenue is followed. Department Response: The Administration provided the City Council with a preliminary list of all projects submitted and prioritized by City Staff and the CIP Citizen Committee. We will continue to refine his process. Grant Writing Team-It is the intent of the City Council that the Administration evaluates creating a centralized grant writing function that includes all General Fund employees who perform grant writing duties. Department Response: The Administration reviewed the grant writing function and determined that of the three grant writing positions, two of them fit the same profile, that is they research and write grants, make sure the departments responsible are aware of the grant and works with the grant monitor to ensure that all reporting and grant management is arranged. They then go on to other grants and have no further involvement with the grant. The third grant writer, located in the Police Department functions in a role beyond that of the other two. They actually provide management of the grant activities for the department. This entails tracking of the grant requirements and ensuring that they are completed, working with any employees to merge the grant activities into the overall department activities, and work with the grant monitor to ensure that the reporting is completed, etc. The Council amended the budget in October and combined two grant writer positions in Management Services and left one in the Police Department. Impacts of Special Events - It is the intent of the City Council that the Administration explores the feasibility of charging reimbursement fees for the use of police officers or other City services at special events where a fee is being charged to participants, and in other circumstances as appropriate. Department Response: The Administration supports and is currently abiding by the current special events ordinance. Emergency Response Employees - It is the intent of the City Council that the Administration present options to the Council regarding a requirement that, as a condition of employment, any emergency- response personnel hired after August 31, 2001 be required to live within a 10 mile radius of the City &County Building. Department Response: The Administration referred this issue to the Citizen's Compensation Advisory Committee for their review and recommendations. A completed report along with our recommendations was attached to an earlier document. POLICE DEPARTMENT (none open) PUBLIC SERVICES DEPARTMENT 2001 —2002 (none open) 2002 - 2003 Golf Program- It is the intent of the City Council that the Administration briefs the Council during a Work Session meeting in September on the marketing plans for the golf program, including the new incentives created during the fiscal year 2001-02 budget process. Department Response: The Public Services Department and Golf Division have prepared the Golf Division's Marketing Plan. This Plan has been approved by the Golf Advisory Board and is currently in the process of submission to the Council for the requested briefing. PUBLIC UTILITIES DEPARTMENT 2000—2001 (carried over) Water Fund - It is the intent of the City Council that the Department of Public Utilities continues developing secondary water systems for parks and golf courses and considers including a secondary parallel water system in new developments within the Northwest Quadrant. Department Response: The Administration will continue its current policy of looking for cost- _ effective ways to use secondary water sources for the greening of public property. The 1110 department has completed a review of all green spaces and the cost-effectiveness of implementing secondary water use. The department will continue to promote wise water use with the assistance of Utah State Extension Service. 2001 —2002 Radio-Reading Water Meter Pilot Program- It is the intent of the City Council that the Administration briefs the Council on the effectiveness of the radio-reading water meter pilot program after approximately 4,000 hard-to-read meters are replaced with radio reading devices and the Administration calculates the cost versus the benefits of the program including long-term benefits. Department Response: The department has completed installing over 4,000 meters that can be read by a radio signal in the downtown area. However, the department is still working on software issues and will not be in full implementation of the pilot program until the end of May 2002. Page 1 of 8 Provided to the Council by Steve Fawcett on May 22, 2002 DEPARTMENT OF AIRPORTS 2001 —2002 (none open) ATTORNEY'S OFFICE 2000—2001 (carried over) Funding of Governmental Immunity Reserves - It is the intent of the City Council to support the Administration's proposal to accumulate a reserve in the Governmental Immunity Fund equal to three times the rolling average claim payout. Department Response: A reserve balance within the Governmental Immunity Fund has been building for several years. With the exception of FY 2000, the fund balance has increased each of the last five years. The Administration will maintain a fund balance level that is the higher of the amount required by the external auditors or the three-year rolling average of claim payouts. This may require a transfer from another source into governmental immunity from time to time to maintain this level. • Encourage Safety and Accountability- It is the intent of the City Council that the Administration considers adding more departmental accountability to the City's loss control program that encourages and promotes safety. It is also the intent of the City Council that the Council be provided with periodic reports on losses by departments. Department Response:For several years, Risk Management has worked toward improved administrative efficiencies in an effort to drive down the cost of each workers'compensation and third party liability claim. These efforts have been successful but have not addressed the prevention of the losses. Because of that Risk Management has been formulating a new approach to safety. The FY02 budget includes funding to hire a consultant to begin implementation of a new plan. The new plan will include several elements designed to work together in providing motivation for the Departments to step up their loss control efforts, such as Police Officer accountability for accidents. As the program progresses the elements are expected to be refined and modified to better fit the City's culture. The following list describes the loss control program elements and priorities: Top leadership commitment and visible support for safety. Department accountability for safety performance, including safety performance reviews for the department and division heads. A department specific safety and hazard analysis survey administered by Risk Management. A restructuring of the workers'compensation and governmental immunity budgets to a system that engenders cost accountability and incentives. Page2of8 Citywide safety resources provided by Risk Management including incentive and initiative funding, training opportunities and outside experts. Standardized progress measurements designed to enable benchmarking within the City as well as with other public entities. Due to the complexity of some of the above elements, the program will be implemented in stages. To begin this process, Risk Management met with the Chief Administrative Officer and the department heads from each of the larger departments in July 2001. During these meetings, Risk Management presented loss data and statistics for the City as a whole and by the specific departments. The data identified the types of incidents or injuries that have a high frequency rate or high costs associated with them. The departments were then expected to formulate a plan to reduce their losses in conjunction with Risk Management's ongoing efforts. The reports provided to the Departments in July will also be presented to the Council for their review. The following timeline reflects the anticipated progress in the loss control program over the coming months. Loss Control Program Timeline Jul Au: Sep Oct Nov Dec Jan Feb Mar A i r Ma Jun Loss reports provided Citywide Safety Resources Available Loss Control Plan Approval . Accountability Establishment Standardized Progress Measurements Implemented G. I. and W. C. Budget Restructuring Hazard Survey Production and Distribution Mal DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 2001 —2002 Street Lighting District- It is the intent of the City Council that the Administration briefs the Council regarding the possibility of using accumulated reserves in the street lighting districts for converting assessment districts to the privately-owned streetlight program (at the option of the neighborhood), for — upgrading streetlights to more decorative residential oriented lighting, or for reducing assessments to property owners. Page 3 of 8 Department Response: The Department continues to work on the multiple issues that have arisen from this proposal. The Transportation staff is scheduled to meet with 11 community councils over the next several months. The plan that comes out of the meetings will be forwarded to the Planning Commission and then on to the City Council sometime in the fall of 2002. Economic Development Corporation of Utah - It is the intent of the City Council that the Administration coordinates with the Economic Development Corporation of Utah to provide semiannual written information to the Council regarding the accomplishments of EDCU that benefits to Salt Lake City. Department Response: The Department will forward to the Council the semi-annual report it received from the EDCU. FIRE DEPARTMENT City Council Legislative Intent Statements, Action Items and Requests 2001 —2002 Community Education in the Fire Department- It is the intent of the City Council that the Administration explores the feasibility of training non-sworn civilian staff or volunteers to perform community education services to Salt Lake City schools. Department Response: The Fire Department is currently utilizing a non-sworn civilian to perform community education in the Salt Lake City schools. We have utilized him for this specific purpose since February 21st, 1978. He is also utilized in the Citizen Emergency Response Team (CERT) training. He has been involved in other public events such as "Chief Le Matchless and Doctor Ben E. Ficiary"the clown during parades, Fire Prevention week and Emergency Services week. He is a frequent guest on local radio programs geared towards children. He is currently able to meet the needs of the City schools and the Fire Department. The department has no plans to change this position from a non-sworn civilian to a firefighter. DEPARTMENT OF MANAGEMENT SERVICES 2000—2001 (carried over) Street Reconstruction - It is the intent of the City Council that local street reconstruction be funded within the Capital Improvement Program on an annual basis in accordance with the Council's adopted Five-Year CIP Plan. Department Response: The Administration will evaluate local street reconstruction in conjunction with the overall CIP and will solicit input from the Citizens CIP Committee and will make funding recommendations during each budget cycle. Page 4 of 8 Set Aside Money for Severance Pay - It is the intent of the City Council that the Administration sets aside a portion of severance pay that is estimated to eventually be paid on historical experience or other factors. These moneys should be expensed in the years accrued and recorded as fund liabilities. Department Response: Severance pay is defined as payment for years of service at involuntary separation from the City of"at will"employees. It does not include purchase of vacation, personal leave, sick leave or retirement/layoff account leave. According to (GAAP) Generally Accepted Accounting Principles, governmental funds like the General Fund cannot accrue for a long-term liability. A long-term liability is one of three months or more. Enterprise and Internal Service funds can accrue for a long-term liability. Likewise, an expenditure of funds cannot occur until a legitimate transaction occurs to require expensing resources: For example, an actual termination and payment of severance benefits. In order to avoid this accounting difference with General Fund severance estimates, the General fund would have to appropriate a transfer of a certain amount to the Risk Management and Insurance Fund in order to create the accrual. When a termination occurs the appropriation in Risk would be expended. The Administration will look at a ten-year history of severance payments and work toward an acceptable solution to this problem. Constituent Tracking System- It is the intent of the City Council that the Administration investigates the feasibility of a customer service/work order tracking system. Department Response: The Constituent Tracking Software has been installed in the Council Offices and is available to the staff. Jan Aramaki is coordinating the effort to build the appropriate pick lists for the "Key Words"to be used to categorize contacts/correspondences and the Actions section that will determine how items flow through the system. Discussion with the Mayor's Community Affairs group is also under way to ensure that the codes developed will meet both groups needs. Channel 71 - It is the intent of the City Council that the Administration uses Channel 71 to promote City programs and functions including those events sponsored by other organizations that receive City financial support. More emphasis should be placed on making the promotional segments more dynamic and interesting. Further, it is the intent of the City Council that the Administration explore opportunities for partnering with schools in this endeavor. Department Response: We are in the process of trying to obtain the rights to re-broadcast 2 videos recommended by the Mayor's Office on Diversity in the Workplace. These rights have been sold and resold multiple times and we are having trouble finding the current owner of those rights to obtain permission. Work on this is continuing. Also on the slate are plans to work with City schools to help broadcast Council and other public meetings. We have met with UDOT Officials and their vendor on delivering traffic monitoring capabilities and Traffic-link camera shots via Channel 71. These new features provide information on road construction, accidents, etc. They have prepared a demo of their capabilities for us to view very soon. We are also exploring an option to provide just the traffic link cameras on the Channel during peak drive times as another option. . We are preparing to broadcast Traffic-link via Channel 71 in January 2002. Page 5 of 8 We are in the process of performing a major upgrade of the system. This upgrade will allow us to broadcast a greater variety of media with less effort on the part of the IMS people assigned. ATT switched our Channel from 71 to 17. We view this a positive change although the coordination between ATT and IMS was lacking. Steps have been taken to correct this. DOT has backed off from their expected date to deliver a live traffic feed. No new date has been set at this time. We have successfully broadcast the City Council Induction Ceremony and the Mayor's State of the City address and we continue to look for other opportunities to improve the content of channel 17. In the past the Council has expressed hesitancy in broadcasting all Council meetings but technically this is a very real possibility that could be done for a minimal cost in hardware. We have discussed internally making connections with Horizonte, Highland High, and Salt Lake Community College to help us in this on the staffing side. Channel 17 has undergone some significant changes. We have recently completed an upgrade of the hardware supporting the station. That upgrade allows us to do more scheduling of events and handle a wider variety of media. During the Olympics, Channel 17 was used to publish schedules and event information for Washington Square. Videos of the activities around Washington Square were broadcast and the NYSE opening bell from the steps of the City& County Building was sent out live and rebroadcast several times. We continue to solicit new, informative, and useful content for Channel 17. A meeting was held concerning the content on SLCTV(Channel 17) with Josh Ewing from the Mayor's Office. The basic theme of the meeting was to add more pertinent content to SLCTV. There were 3 action items that came out of the meeting. 1. The Mayor's Office will be providing IMS with public interest videos that will be scheduled and broadcast at pre-determined times. 411 2. IMS is researching software that will make creation of content easier and assist in training of interns in the Mayors Office to publish new information regularly. 3. The Mayor's Office and IMS will create a supervisory committee to ensure that the content on SLCTV is pertinent and useful for the citizen's of Salt Lake. Home-Buyer Incentive Program- It is the intent of the City Council that a proposal be prepared and submitted to the Council for consideration regarding the development and implementation of a home- buyer incentive program for City employees based on programs offered by other cities and organizations, in collaboration with and in addition to Federal programs or opportunities. Department Response: The Administration referred this issue to the Citizen's Compensation Advisory Committee for their review and recommendations. We have completed surveys of other jurisdictions regarding this issue. A completed report along with our recommendations was attached to an earlier response. 2001 —2002 Biennial Budget Submission - It is the intent of the City Council that the Administration presents a biennial budget that is balanced in both fiscal years using one-time funds for one-time expenses,with no less than nine percent of ongoing General Fund revenues invested annually in the Capital Improvement Program fund. It is further the intent of the City Council to maintain a healthy fund balance of at least 10%of General Fund revenue. Finally, it is the intent of the City Council that the IDAdministration presents comprehensive budget information to the City Council by the first Tuesday in May of the current fiscal year regarding the second fiscal year of a biennial budget. Page 6 of 8 Department Response: The Administration concurs with this legislative intent, except that the Administration believes flexibility should be preserved by dedicating "an amount equal to nine percent of General Fund revenue"invested annually in the Capital Improvement Program fund. Fiscal Note on Proposed CIP Projects - It is the intent of the City Council that the Administration provides the Council with a fiscal note on proposed capital improvement projects that require additional ongoing operations and maintenance(new parks, additional buildings, etc.). Department Response: The Administration concurs with this legislative intent and will identify the operational costs associated with each new CIP funding request. Submission Format for Proposed CIP Projects - It is the intent of the City Council that information relating to proposed Capital Improvement Program projects be submitted in a format similar to that of the comprehensive CDBG reports,including all applications, CIP Citizen Board recommendations, and the Mayor's final CIP recommendations. Department Response: The Administration concurs with this legislative intent. We prepared the amendment CIP report in the same general format as the CDBG report. CIP Budget- It is the intent of the City Council that the Administration submits the Capital Improvement Program budget at least thirty days in advance of the General Fund budget to allow IP ample time for review, and to ensure that the Council's policy of 9%of ongoing revenue is followed. Department Response: The Administration provided the City Council with a preliminary list of all projects submitted and prioritized by City Staff and the CIP Citizen Committee. We will continue to refine his process. Grant Writing Team- It is the intent of the City Council that the Administration evaluates creating a centralized grant writing function that includes all General Fund employees who perform grant writing duties. Department Response: The Administration reviewed the grant writing function and determined that of the three grant writing positions, two of them fit the same profile, that is they research and write grants, make sure the departments responsible are aware of the grant and works with the grant monitor to ensure that all reporting and grant management is arranged. They then go on to other grants and have no further involvement with the grant. The third grant writer, located in the Police Department functions in a role beyond that of the other two. They actually provide management of the grant activities for the department. This entails tracking of the grant requirements and ensuring that they are completed, working with any employees to merge the grant activities into the overall department activities, and work with the grant monitor to ensure that the reporting is completed, etc. The Council amended the -' budget in October and combined two grant writer positions in Management Services and left one in the Police Department. Page 7 of 8 Impacts of Special Events - It is the intent of the City Council that the Administration explores the feasibility of charging reimbursement fees for the use of police officers or other City services at special events where a fee is being charged to participants, and in other circumstances as appropriate. Department Response: The Administration supports and is currently abiding by the current special events ordinance. Emergency Response Employees - It is the intent of the City Council that the Administration present options to the Council regarding a requirement that, as a condition of employment, any emergency- response personnel hired after August 31, 2001 be required to live within a 10 mile radius of the City & County Building. Department Response: The Administration referred this issue to the Citizen's Compensation Advisory Committee for their review and recommendations. A completed report along with our recommendations was attached to an earlier document. POLICE DEPARTMENT (none open) PUBLIC SERVICES DEPARTMENT 410 2001 —2002 (none open) 2002 - 2003 Golf Program- It is the intent of the City Council that the Administration briefs the Council during a Work Session meeting in September on the marketing plans for the golf program, including the new incentives created during the fiscal year 2001-02 budget process. Department Response: The Public Services Department and Golf Division have prepared the Golf Division's Marketing Plan. This Plan has been approved by the Golf Advisory Board and is currently in the process of submission to the Council for the requested briefing. PUBLIC UTILITIES DEPARTMENT 2000—2001 (carried over) Water Fund - It is the intent of the City Council that the Department of Public Utilities continues developing secondary water systems for parks and golf courses and considers including a secondary parallel water system in new developments within the Northwest Quadrant. Department Response: The Administration will continue its current policy of looking for cost- • effective ways to use secondary water sources for the greening of public property. The department has completed a review of all green spaces and the cost-effectiveness of Page 8 of 8 implementing secondary water use. The department will continue to promote wise water use with the assistance of Utah State Extension Service. 2001 —2002 Radio-Reading Water Meter Pilot Program- It is the intent of the City Council that the Administration briefs the Council on the effectiveness of the radio-reading water meter pilot program after approximately 4,000 hard-to-read meters are replaced with radio reading devices and the Administration calculates the cost versus the benefits of the program including long-term benefits. Department Response: The department has completed installing over 4,000 meters that can be read by a radio signal in the downtown area. However, the department is still working on software issues and will not be in full implementation of the pilot program until the end of May 2002. • Proposed Legislative Intent Statements (May 31, 2002) • The Council may wish to consider the following legislative intent statements: 1. Fundina of Compensation Liability - It is the intent of the City Council that the Administration work with the Council to begin to accumulate a reserve in a separate fund or account to fund the City's accrued compensation liability for vacation and other payments that employees may receive upon retirement. 2. Retirement Payouts - It is the intent of the City Council that the Administration consistently budget for payments of vacation leave and other retirement payouts. The Administration should consider budgeting for these payments in a separate fund or account rather than requiring departments to leave positions vacant or otherwise make cuts in operations to finance these payments. 3. Overtime within the Police Department - It is the intent of the City Council that the Police Department make every effort to keep within its overtime budget ($716,000 for fiscal year 2002-2003) and submit a written report to the Council quarterly on actual overtime incurred and steps taken to reduce reliance on overtime. Specifically, the Council requests that the Administration complete a detailed analysis on approaches to reduce overtime. This analysis should include but not be limited to: a. All options to reduce the number of vacant positions (i.e. hiring officers more frequently; b. All options of workforce scheduling; c. Opportunities to anticipate and accommodate the natural and consistent level of turnover that occurs in the initial months after hiring (including the potential to train more officers than the actual number of positions available); d. Ways in which the Legislative Branch could help address the issue, including the potential of adding positions to allow the Police Department to take approaches as outlined in item "c"above. 4. Overtime within the Fire Department - It is the intent of the City Council that Fire Department continue to take measures to reduce the reliance on overtime and submit quarterly reports to the Council outlining total amount spent for constant staffing at a straight-time rate and amount spent at an overtime rate. 5. Parkina Meter Collection - It is the intent of the City Council that the Administration consider collecting parking meter revenue using bonded agencies or employees rather than paying overtime rates. i 6. Volunteers - It is the intent of the City Council that the Administration investigates ways to expand the use of volunteers for providing City services. 7. Process Service - It is the intent of the City Council that the Department of Management Services investigates or tests the service of documents using mail similar to the success reported by the City Prosecutor. 8. Grant Writing Team — It is the intent of the City Council that the Administration complete the centralization of the grant writing function by transferring any remaining grant writer positions to the central team in the Department of Management Services. 9. Grant Monitoring— It is the intent of the Council that the Administration confirm that the grant application and the grant monitoring / management function are appropriately separated in different divisions, to ensure that the grant monitoring and management is conducted by individuals other than those submitting the grants. Further, it is the Council's intent that all grants and requests for funding be tracked in a central location to ensure that the requests are consistent with the City's policies, and to ensure that the applications are submitted in a manner that leaves the City maximum flexibility in determining how the grants will be used. 10. Economic Development Promotion - It is the intent of the City Council that the Administration coordinate economic promotion with other entities that provide these services. The Council requests a written report on the overall economic development activities including the Economic Development Corporation of Utah (EDCU), the State Department of Community and Economic Development, the Salt Lake Chamber of Commerce, and the City's Department of Community and Economic Development. 11. Impacts of Special Events - It is the intent of the City Council that the Administration continue to explore the feasibility of charging reimbursement fees for the use of police officers or other City services at special events where a fee is being charged to participants and in other circumstances as appropriate. The Council requests a quarterly report listing special events approved by the City, including police and other City services that are provided. The listing should include: a. Services provided for which a fee was charged, and the amount of the fee; b. The actual cost of the service to the City; c. Services provided for which no fee was charged; d. Other relevant information. Further, the Council requests a listing of special City services provided for events that do not require a permit, including large gatherings at established venues. -- 111) 2 12. Speed Boards — It is the intent of the City Council that all seven speed boards be placed on City street at least five days per week from 6:30 a.m. to 7:30 p.m. (except when boards are out of service waiting for parts or otherwise not available). It is the intent of the Council that the Administration consider contracting for this service. 13. Privatization of the City's Impound Lot Operations — It is the intent of the City Council that the request for proposals to privatize the impound lot operations be broad enough to allow the existing employees to bid as a group, if they so desire. 14. Youth Programs — It is the intent of the City Council that the Administration provide a written plan of the YouthCity. Further, it is the Council's intent that the Administration seriously consider opportunities to collaborate with existing non- profit agencies rather than build an infrastructure of City employees. It is requested that these approaches be considered prior to grant submission, to ensure that contracting for the service is an alternative to the City actually providing the service. 15. Engineering Costs — It is the intent of the City Council the cost of engineers and architects within the Department of Public Services be more fully allocated to capital improvement projects. The Council requests that the Administration provide a quarterly report to the Council regarding the costs that were allocated compared to total costs. S 3 Legislative Action Items (Adopted since Budget adoption in June, 2001) 1. Sidewalk Use Restrictions —Ask the Administration to draft an amendment to existing ordinance regarding sidewalk use restrictions. (Council Member Roger Thompson, adopted September 20, 2001) 2. Update the Open Space Master Plan —Ask the Administration to update the Open Space Master Plan. (Council Member Keith Christensen, adopted November 13, 2001 as a motion adopting the Sugar House Master Plan) 3. Update the City Bicycle Master Plan —Ask the Administration to update the City Bicycle Master Plan. (Council Member Keith Christensen, adopted November 13, 2001 as a motion adopting the Sugar House Master Plan) 4. Bike Helmets — Ask the Administration to draft an ordinance mandating the use of helmets by children when riding a bicycle. (Council Members Roger Thompson and Nancy Saxton, adopted November 27, 2001) Council Status:A sample ordinance was received on April 11, 2002 and has been forwarded to Youth City Government for review. ID5. Cat Licensing — Ask the Administration to draft an ordinance requiring that pet owners provide licensing for cats that dwell in or on properties in Salt Lake City. (Council Member Carlton Christensen, adopted December 11, 2001) 6. Curfew Enforcement— Ask the Administration to amend Chapter 9.04, Danceha//s, Restaurants, Taverns and Private Clubs, and Section 11.44.707, Curfew for Minors. (Council Members Roger Thompson, David Buhler and Tom Rogan, adopted December 11, 2001) Council Status: The Youth City Government provided their feedback to the proposed amendments, and the ordinance has been forwarded back to the Attorney's office for further revision. 7. Commercial Neighborhood zoning district—Ask the Administration to reevaluate the Zoning Ordinance relating to use definitions, standards and parking requirements in the Commercial Neighborhood (CN) zoning districts. (Council Member Jill Remington Love, adopted May 14, 2002.) , Legislative Intent Statements III (As adopted on June 14, 2001) Statements Carried Over (with minor updates) from Fiscal Year 2000-01: 1. Funding of Governmental Immunity Reserves - It is the intent of the City Council to support the Administration's proposal to accumulate a reserve in the Governmental Immunity Fund equal to three times the rolling average claim payout. (Attorney) 2. Encourage Safety and Accountability - It is the intent of the City Council that the Administration considers adding more departmental accountability to the City's loss control program that encourages and promotes safety. It is also the intent of the City Council that the Council be provided with periodic reports on losses by departments. (Attorney) 3. Home-Buyer Incentive Program - It is the intent of the City Council that a proposal be prepared and submitted to the Council for consideration regarding the development and implementation of a home-buyer incentive program for City employees based on programs offered by other cities and organizations, in collaboration with and in addition to Federal programs or opportunities. (Management Services) II/ 4. Constituent Tracking System - It is the intent of the City Council that the Administration investigates the feasibility of a customer service/work order tracking system. (Management Services) 5. National League of Cities Conference - It is the intent of the City Council that the Administration develops a budget and staffing plan to address the impact of the National League of Cities conference to be held in Salt Lake City. The plan should be presented to the Council no later than October 2, 2001 and include the City's host duties, anticipated staffing, benefits associated with hosting the conference, estimated expenses to be incurred by Salt Lake City, a proposal to fund the expenses, and a comparison of anticipated expenses in respect to anticipated revenues. Council Staff Note:No update has been received from fundraisers on the status of the December, 2002 Conference. 6. Channel 71 - It is the intent of the City Council that the Administration uses Channel 71 to promote City programs and functions including those events sponsored by other organizations that receive City financial support. More emphasis should be placed on making the promotional segments more dynamic 410 and interesting. Further, it is the intent of the City Council that the Page 4 of 2 Administration explore opportunities for partnering with schools in this endeavor. (Management Services) 7. Water Fund - It is the intent of the City Council that the Department of Public Utilities continues developing secondary water systems for parks and golf courses and considers including a secondary parallel water system in new developments within the Northwest Quadrant. (Public Utilities) 8. Street Reconstruction - It is the intent of the City Council that local street reconstruction be funded within the Capital Improvement Program on an annual basis in accordance with the Council's adopted Five-Year CIP Plan. (Management Services) 9. Set Aside Money for Severance Pay - It is the intent of the City Council that the Administration sets aside a portion of severance pay that is estimated to eventually be paid on historical experience or other factors. These moneys should be expensed in the years accrued and recorded as fund liabilities. (Management Services) Proposed Statements: 10. Biennial Budget Submission - It is the intent of the City Council that the Administration presents a biennial budget that is balanced in both fiscal years using one-time funds for one-time expenses, with no less than nine percent of ongoing General Fund revenues invested annually in the Capital Improvement Program fund. It is further the intent of the City Council to maintain a healthy fund balance of at least 10% of General Fund revenue. Finally, it is the intent of the City Council that the Administration presents comprehensive budget information to the City Council by the first Tuesday in May of the current fiscal year regarding the second fiscal year of a biennial budget. (Management Services) 11. Fiscal Note on Proposed CIP Projects - It is the intent of the City Council that the Administration provides the Council with a fiscal note on proposed capital improvement projects that require additional ongoing operations and maintenance (new parks, additional buildings, etc.). (Management Services) 12. Submission Format for Proposed CIP Projects - It is the intent of the City Council that information relating to proposed Capital Improvement Program projects be submitted in a format similar to that of the comprehensive CDBG reports, including all applications, CIP Citizen Board recommendations, and the Mayor's final CIP recommendations. (Management Services) 13. CIP Budget - It is the intent of the City Council that the Administration submits the Capital Improvement Program budget at least thirty days in advance of the Page 4 of 3 General Fund budget to allow ample time for review, and to ensure that the Council's policy of 9% of ongoing revenue is followed. (Management Services) 14. Street Lighting District - It is the intent of the City Council that the Administration briefs the Council regarding the possibility of using accumulated reserves in the street lighting districts for converting assessment districts to the privately-owned streetlight program (at the option of the neighborhood), for upgrading streetlights to more decorative residential oriented lighting, or for reducing assessments to property owners. (Community & Economic Development) 15. Radio-Reading Water Meter Pilot Program - It is the intent of the City Council that the Administration briefs the Council on the effectiveness of the radio-reading water meter pilot program after approximately 4,000 hard-to-read meters are replaced with radio reading devices and the Administration calculates the cost versus the benefits of the program including long-term benefits. (Public Utilities) 16. Grant Writing Team - It is the intent of the City Council that the Administration evaluates creating a centralized grant writing function that includes all General Fund employees who perform grant writing duties. (Management Services) 17. Community Education in the Fire Department - It is the intent of the City 4111 Council that the Administration explores the feasibility of training non-sworn civilian staff or volunteers to perform community education services to Salt Lake City schools. (Fire Department) 18. Economic Development Corporation of Utah - It is the intent of the City Council that the Administration coordinates with the Economic Development Corporation of Utah to provide semiannual written information to the Council regarding the accomplishments of EDCU that benefits to Salt Lake City. (Community & Economic Development) 19. Impacts of Special Events - It is the intent of the City Council that the Administration explores the feasibility of charging reimbursement fees for the use of police officers or other City services at special events where a fee is being charged to participants, and in other circumstances as appropriate. (Management Services) 20. Golf Program - It is the intent of the City Council that the Administration briefs the Council during a Work Session meeting in September on the marketing plans for the golf program, including the new incentives created during the fiscal year 2001-02 budget process. (Public Services) 21. Emergency Response Employees - It is the intent of the City Council that the Administration present options to the Council regarding a requirement that, as a Page 4 of 4 condition of employment, any emergency-response personnel hired after August 31, 2001 be required to live within a 10 mile radius of the City & County Building. (Management Services) 22. Semiannual Reports on the Status of Legislative Intent Statements and Action Items - It is the intent of the City Council that the Administration provides semiannual reports regarding the status of all active legislative intent statements (including unresolved statements from previous years and statements adopted outside of the official budget process) and all active legislative action items. S 1. Did the LDS Church officially decline donating / making available the medals plaza site? 2. It indicates that the Council will approve this -- is there a land use action or what is the nature of the Council's? 3. For the cultural Olympiad person to manage things, would there be a cost to the City which is not covered otherwise? 4. Will there be ongoing expenses to the City that will not be covered by outside sources? Meeting Community Needs Since 1966 Executive Director CROSSROADS Board Chairwoman Glenn L.Bailey MEANCENTER Debra Duncan Ulll1J 11 II II June 6, 2002 Mayor Ross C. Anderson City Council Chairperson David Buhler Salt Lake City and County Building 451 South State Street Salt Lake City, Utah 84111 Dear Sirs: In view of the present controversy over the proposed placement of an Olympic cultural center in Pioneer Park we make the following recommendations: 1) A comprehensive planning process should begin immediately incorporating the Mayoral and SLOC effort already underway with a more inclusive effort involving the City Council and staff and the various community interests expressing concern. 2) The community interests involved in the planning process should include representatives of: --local human service providers and advocates, especially those serving homeless persons, --the arts community impacted by the proposed performing arts festival, --downtown business interests impacted by addition of another performance venue, --and, most importantly, Pioneer Park historical preservationists. 3) The planning process should be limited to 30-60 days, more time than is sought by the Mayor, but enough to better determine some of the key issues such as site selection and location, function, historical integrity, cost, size and scale, accessibility, homeless person displacement, parking and public safety. 347 South 400 East 1 Salt Lake City,Utah 84111 /801-364-7765/Fax 801-364-7228 4) The process should be chaired by a person or persons who can bring participants together quickly and confidently. 5) The process should be professionally facilitated and staffed by the Mayor's office with additional help from City Council staff if necessary. We believe adoption of these recommendations or something very similar is absolutely necessary in determining whether or not Salt Lake City should accept the Olympic cultural center "gift". Please let us know if we can assist with the implementation of these recommendations. Sincerely, Glenn Bailey, Tim Funk, Executive Director Houisng Project Director Mxfo-rb- Shop SHOES FOR MEN 57 West 100 South • Salt Lake City, UT 84101 OLYMPIC CULTURAL CENTER SITE SELECTION (Suggestion by Richard Wirick) If the 75 foot telescoping stage and seating area plan is to be used, a natural would be to use the 8000 square foot vacant area on Galivan Square that is for rent by the Redevelopment Agency. Plus to the east of it you could expand another 6000 square feet onto the patio area. Also both parcels of property could be expanded to the south to broaden the hase. Other than the MeckU,Plaza, during the Olympics, the Galivan Plaza was the busiest site in town, and it is a natural site in the heart of. DOWNTOWN.Salt Lake to carry on the momentum and tradition of the 2002 Olympic Winter Games. Most respectfully, zpriirt Richard Wirick The Oxford Shop The little shoe store with the big selection of famous brands Opposition or Support for the use of Pioneer Park as the location for the Olympic Legacy Center Totals: 71 69 1 Name Phone# Address Opposed For Additional Comments 485-1038 ' '''S• ,,j Put it somewhere else �', ,, Carly Dean 756-6817 ,,,`1;,` Ronnalynn Dean , ',�`` Keep the trees Guspavo Adalos '':;: y = `; Wayne 524-3095 P Rick Johnson 583-7615 994 Military Drive " s Merisa Wilson 484-6628 " ° �; Mrs.Wood 487-7802 •"�"4',°h -' Historic Doug New 205 5304 •,y `+^? ' Ms.Hansen 278-1478i Perilyn Barton 266-9751 ,'', .) Stacy Midgley 240-1000 ,:. Nannette Staples Dennis Tagget 272-7614 Cathleen Gordon 766-9644 .� Heritage Leta Lagerstrom 487-7815 PO Box 526312 •"a,;m 'i Loves the Farmers'Market 84152 5:, ';e; Shirley Kalawaia 466-7323 ��'� Comment Line Comment Line \r ,toi Comment Line /� „ Perfect close to Gatewa downtown trax Comment Line a s.i X y, I Opposition or Support for the use of Pioneer Park as the location for the Olympic Legacy Center Totals: 71 69 1 Name Phone# Address Opposed For Additional Comments Julie Palmer 725-3742 Comment Line Brent Parry 652-4972 Comment Line X 532-5846 Comment Line ., , Patricia Clark 466-6202 Comment Line ; ,r'.. ,�..' Craig Adams 671-2731 Comment Line , u..xiiPut it somewhere else Julie Steele Comment Line ." 4 427-6265 Comment Line Heritage Jeff Frost 824-0911 .` Heritage Linda Hoffmega r`°- \.. Susan Crook 355-6471 with American Towers Put it somewhere else.Save green space/trees at Pioneer Park, sctimp@juno.com yid, Heritage. Ryan High , e Clean up the park Susan Abbott 393-3356 pocketgoddess@attbi.com . " Heritage 1767 Hillside Circle �� ;44xs. If it can be safe as an Olympic Park,why not make it safe and keep it ,V,''',, „ Pioneer Park? Chuck Matthews cm701 0.planetmail.com P;';' " Put it somewhere else. ,617 Keeping it closer to downtown,and its original location,is ideal 0 Opposition or Support for the use of Pioneer Park as the location for the Olympic Legacy Center Totals: 71 69 1 Name Phone# Address Opposed For Additional Comments S' Elaine Bambley '"`A. °' Somewhere else Marilyn Lynn -, Heritage Irene Ericksen D5 Historic, put it somewhere else,although what are the financial impacts? Richard Worthland 523-2553 i;r µ "> '.'i Janice Twede 292-1610 ,. Michael Austin 521-1739 Ruth Morgan 467-8245 =` '.-,- Mayor does not have the consent of the people Ann 583-0190 ";s �, a" Collet Virgil 782-6031 :'X Put it somewhere else James Beless ==, , Marilyn Clayton Vicki Scott Merlin Dye 557-6686 ;,°=` i°,, 2 Put it somewhere else Laverne Bellemy ' ` n`, , RogerJensen&Family '���.,..e Y ��,f Put it somewhere else-fairgrounds? Virginia Denhalter 264-8745 ,,ys Heritage David Heaps 550-4090 k Put it somewhere else Jack Lambson stopped by • , .-„- Undecided Hesitate, needs to understand/see the long range picture Edith Hickey 904-1685 '� , .,a'r,* Mrs.Collins 350-0216 y;: y I Opposition or Support for the use of Pioneer Park as the location for the Olympic Legacy Center Totals: 71 69 1 Name Phone# Address Opposed For Additional Comments Val Atwood �� zz, PP is a sacred place,and can be cleaned up.He was a security guard during the Olympics. Dorothy Hinsey Jeanette Fink ~ " �V�V��Robert Smith 435-512-0911 ,, 7., "` PP has heritage,why not Liberty Park-is that an option? Terry Forward — `'k�' 3,7 Heritage and the trees needs to be protected LaVerne Dale , `°'` Left as a park, Liberty Park Mauguhn 486-2157 M,:;Fr; : Moving too fast,park is beautiful and can be cleaned up,don't wipe 2 out trees,consider the Library Block or 1st S between State St&2nd Geralee Wirthlin '° Strong opposition, ii Mayor does not have the consent of the people Lafe Harris 424-2703 Butler and Evans Architects, LLC ` Pioneer Park should be cleaned up,not demolished of the oldest lafe@butlerevans.com , - ;; a,., trees in the State,or removing the heritage that is important to so , , ; many Lisa Szymanski 571-8368 9915 Falconview Dr : ^,,�°st�;� Sandy, Utah �� „ �'u1 Katrina Weber 255-9305 Put it somewhere else 1 Diane Packer 295-6050 w " ` 975-3705 Heritage, Put it some where else JoAnn Autenrieb 259 East 6th Avenue tiy 4 R 84103 �„ k' Julie 565 3577 ��R-,! '°4,7 Strong opposition, :. � �,,fi , Carol Simonds 581-9208 Mayor does not have the consent of the people Paulie Natural Resource Conservation 1' Strong opposition Service 'n