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03/20/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, March 20, 2018 in Room 326, Committee Room, City County Building, 451 South State . In Attendance: Directors Derek Kitchen, James Rogers, Erin Mendenhall, Chris Wharton, Amy Fowler, Charlie Luke, and Andrew Johnston. Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Jacqueline Biskupski, Mayor/Executive Director; Patrick Leary, Mayor' s Chief of Staff; David Litvack, Mayor' s Deputy Chief of Staff; Danny Walz, Redevelopment Agency (RDA) Chief Operating Officer; Tammy Hunsaker, RDA Project Manager; Susan Lundmark, RDA Project Manager; Jill Wilkerson-Smith, RDA Project Manager; Cara Lindsley, RDA Project Manager; Lara Fritts, Economic Development Director; Benjamin Luedtke, Council Public Policy Analyst; Katherine Lewis, Senior City Attorney; Mary Beth Thompson, Finance Director; John Vuyk, Budget Director; Mike Reberg, Community and Neighborhoods Director; and Cindi Mansell, City Recorder . Also Present: Jesse Allen, GSBS Architects; Jason Mathis, Downtown Business Alliance Executive Director; and Allison Peterson, Urban Food Connection. Director Kitchen presided at and conducted the meeting. The meeting was called to order at 2 : 05 p.m. A. 2:05:36 PM GENERAL COMMENTS TO THE BOARD There were no general comments . B. 2 : 0 5:5 4 PM PUBLIC HEARINGS #1 . Northwest Quadrant Community Reinvestment Area Boundary Adjustment. The Board will accept public comment about a resolution initiating an amendment to the survey area boundaries. This would incorporate properties east of the current Community Reinvestment Area (CRA) boundaries. If approved, an amended CRA Plan would be presented at a future meeting to the Board and Council for potential adoption. The CRA Plan sets forth project area boundaries from which the RDA utilizes property tax increment funds for redevelopment activities. No public comment; no action taken. C. REDEVELOPMENT AGENCY BUSINESS (RDA) 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 #1. 2:06: 14 PM Approval of Minutes . Director Mendenhall moved and Director Fowler seconded to approve the minutes of the Redevelopment Agency Board meeting held Tuesday, February 13, 2018, which motion carried, all directors voted aye . View Minutes #2 . 2:06:44 PM Northwest Quadrant Community Reinvestment Area (CRA) Boundary Adjustment. The Board will discuss and consider adopting a resolution initiating an amendment to the survey area boundaries. This would incorporate properties east of the current Community Reinvestment Area (CRA) boundaries. If approved, an amended CRA Plan would be presented at a future meeting to the Board and Council for potential adoption. The CRA Plan sets forth project area boundaries from which the RDA utilizes property tax increment funds for redevelopment activities. View Attachments Director Kitchen addressed the item and the recent Board and City actions undertaken to facilitate the CRA creation and opportunities . He said many of the stakeholders were engaged and the Board had shown commitment to work together with those stakeholders . He said the desire remains to be a good partner but there were definite concerns with the boundary adjustment in light of the recent legislative session and creation of the Inland Port Authority Board (SB234) . Danny Walz , Katherine Lewis, and Tammy Hunsaker briefed the Board with attachments . Ms . Hunsaker provided background on this process, including adoption of the original project area and subsequent proposed amendments . She said documents before the Board would amend and replace the previous project area plans and agreements adopted by the Board and Council on January 9, 2018 . She said project areas executed prior to March 1, 2018 would remain intact under the current legislation but any new project area after that date could be at risk of tax increment being reallocated to the Inland Port Authority. Mr. Walz said the Interlocal Agreement between the Redevelopment Agency and Salt Lake City had been completed and only the City' s portion of tax increment would be grandfathered into that project area. He said no other interlocal had been entered into with any other taxing entity. He said if amended, there was the possibility of resetting or losing that opportunity for collection. Discussion followed regarding consideration of adjacent properties . Mr. Walz said there might not be a way to expand but Staff could look at additional properties to set up as a separate new project area; however, those would be subject to the New Port Authority requirements . Mr. Walz discussed Board Options and said Administration would continue to review those. Director Mendenhall inquired if Staff had discussions with the Boyer and Romney property owners . Mr. Walz said the property owners understand 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 the concerns and were sensitive to the position (were disappointed) yet committed to working with the Board to find another solution and continue in expressing concerns to the New Inland Port Authority. Director Mendenhall discussed the purported Special Legislative Session to allow for further discussion of SB234, and suggested waiting until May prior to directing any additional Staff resources in this regard. She encouraged the property owners to believe in RDA efforts until that time and hoped they would all ultimately benefit with clarity from the Special Session. Director Luke agreed with Director Mendenhall to only focus resources on the approved area at this time until there was official clarity on SB234 . He said he was disappointed not to move forward but the reality was still questionable until that time . He said he felt Staff should continue working with property owners within the adopted CRA boundaries, but talking about anything outside the existing area was fruitless at this time. Director Wharton discussed how to move forward until the Special Session in May. He said he wanted to see a letter to the bodies that would appoint potential board members to the Inland Port Authority Board to notify them of the existing law and desire to include these additional properties and move forward. He suggested soliciting feedback on the issue that had been created to see how they would react or like them to move forward. Director Kitchen discussed the need to move forward and communicate to all parties who wanted to participate . He said SB234 created confusion and there was need for clarity on how to move forward and appropriate authority. He said it was good to understand the issues presented in that legislation in order to be able to effectively lobby for appropriate Legislative Bill cleanup. Director Mendenhall suggested Staff put together a letter to articulate to property owners that opportunities were being delayed because of SB234 ambiguity and conflicts . She requested the letter include the willingness of the RDA to work in a transparent manner and continue dialogue with State partners . Director Wharton suggested the letter document issues and specifics for each property separated out and sent to all interested parties regarding why the Board could not move forward. Executive Director Biskupski asked for clarification as to the author of said letter, with the Board determining it should be signed by the Redevelopment Agency Board of Directors . Further discussion followed regarding the letter to be sent to each entity who would be appointing a board member to the Inland Port Authority, all stakeholders, businesses, and property owners affected. 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 Director Mendenhall moved and Director Luke seconded to table consideration at this time and not move forward in approving the Resolution amending the Northwest Quadrant Project Area Plan Survey area boundaries until there was further action or clarification on SB234, which motion carried, all directors voted aye. View Motion Sheet #3. 2:44:39 PM Interlocal Agreement for Northwest Quadrant Project Area. The Board will discuss and consider adopting an interlocal agreement between the City and the RDA for the Northwest Quadrant Project Area . View Attachments Director Wharton inquired if the Economic Development Staff could coordinate small group meetings with Board/Council Members for updates on the business strategy between now and if/when the Special Legislative Session took place. Director Mendenhall moved and Director Luke seconded to table consideration at this time and not move forward in approving the Resolution adopting an Interlocal Amendment for the Northwest Quadrant Amended Project Area until there was further action or clarification on SB234, which motion carried, all directors voted aye. View Motion Sheet #4 . 2:37 :45 PM Neighborworks Loan Extension. The Board will discuss and consider adopting a resolution extending the maturity date of a loan to NeighborWorks Salt Lake. View Attachments Jill Wilkerson-Smith and Danny Walz briefed the Board with attachments . Ms . Wilkerson-Smith provided background and said if the Board approved the second extension, the balance would be due and payable June of 2018 . She said the developers were present if the Board had questions . Discussion followed regarding the project already being under construction, number of units, project components, ownership, and income levels . Director Rogers moved and Director Johnston seconded to approve Resolution R-9-2018 extending the maturity date of a loan to Neighborworks Salt Lake and to include the stipulations of the RDA Loan Committee condition not to extend the deadline beyond June 20, 2018 (Staff had confirmed the other condition for payoff of the primary loan/removal from title had been met) , which motion carried, all directors voted aye . #5 . 2:45:28 PM Housing Authority Term Sheet for Property Located at 346 South 500 West. The Board will discuss and consider adopting a 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 resolution approving the sale pricing terms of RDA-owned property located at 346 South 500 West. View Attachments (Staff indicated this discussion would combine agenda items 5 and 6) . Jill Wilkerson-Smith, Cara Lindsley and Danny Walz briefed the Board with attachments . Mr. Walz said the request was for approval of a land write-down of the sales price for this Parcel (3) to allow RDA Staff to negotiate the terms of an Option to Purchase Agreement with the Housing Authority of Salt Lake City (HASLC) . He said in exchange, HASLC would be constructing the portion of Station Center utility upgrades and road improvements that were adjacent to the Station Center Parcel 3 development, and removing contaminated soil prior to construction. Mr. Walz said the RDA could reduce the sales price of the property in an amount equal to the cost of the improvements and soil remediation. He said the total of the estimated costs that could be considered in the calculation of a land write-down of the sales price was $3, 360, 880 . Mr. Walz said there was a similar proposal with a combination of developers (Cowboy Partners and Boyer) for Station Center Parcel 1 located at 580 West 300 South. He said Staff had negotiated an original Option to Purchase Agreement with Station Center Associates, LLC (SCA) (Cowboy/Boyer) and the proposal would consider approval of the sale pricing terms of the RDA-owned property. He said currently, the sales price of the property was higher than the estimated infrastructure costs . Director Mendenhall inquired about the Boyer/Cowboy property infrastructure costs . Ms . Wilkerson-Smith said the construction documents were completed to 700 (infrastructure and utilities fully designed/entire package not completed) . Mr. Walz said it depended on the matter of detail and to what level one could estimate costs . Director Mendenhall inquired why the proposal was double the estimated amount if the RDA took it to the 70o design level and the developer would add 300 to provide the complete package . Mr. Walz said if there was a change the numbers could go up or down and the Board would have ability to restrict the gap. Director Fowler inquired if the Board could potentially return after Staff could provide final numbers and approve a write-down at that point. Mr. Walz said Staff could return with final numbers and the Board could set a dollar amount at or below to allow Staff a range flexibility. Director Mendenhall thanked the RDA Staff for having these conversations now rather than later. She said it was beneficial for the Board to realize the circumstances and various scenarios . She said she was not opposed to a land write-down but would be open to consideration of a reduced amount. 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 Discussion followed regarding benefits of providing cost leeway, with Mr. Walz stating the biggest reason was attributed to increasing construction costs . He said the second reason was that until the details of specific projects and balances, there might be changes which would allow flexibility based on those developments . The Board discussed potential for a little flexibility but not as much as proposed. Mr. Walz said Staff would prefer some idea of a range to understand what amount the Board would feel comfortable with. Further discussion followed regarding remediation issues, with Ms . Lindsley stating the environmental consultant considered the potential range and came up with the estimated lowest and highest amounts . She said the cost would depend on remediation standards required by the Department of Environmental Quality (DEQ) . Inquiry was raised as to whom was responsible for the contamination, with Mr. Walz stating the site had a historical use of industrial companies that were not traceable but resulted in widespread contamination. He said there was petroleum hydrocarbon remaining from a former bus garage which might be covered at some level by the DEQ. Director Kitchen moved and Director Mendenhall seconded to approve Resolution R-10-2018 approving the sales price of RDA-owned property located at 346 South 500 West (Parcel 3) in the Depot District Project Area with a reduction in the "up to" amount of 125% of estimated costs of construction as provided by Staff, which motion carried, all directors voted aye . #6. Station Center Term Sheet for Property Located at 580 West 300 South. The Board will discuss and consider adopting a resolution approving the sale pricing terms of RDA-owned property located at 580 West 300 South. View Attachments (Please refer to agenda item 5 for Staff presentation/discussion) . Director Kitchen moved and Director Mendenhall seconded to approve Resolution R-11-2018 approving the sales price of RDA-owned property located at 580 West 300 South (Parcel 1) in the Depot District Project Area with a reduction in the "up to" amount of 125% of estimated costs of construction as provided by Staff, which motion carried, all directors voted aye . #7 . 3:02:46 PM Feasibility Study and Development Plan for a Public Market. The Board will discuss the final Public Market Feasibility Study and Development Plan for Station Center Site 5 of the Depot District Project Area Plan. The study addresses the viability of a year-round, indoor public market in the Depot District. View Attachments 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 Danny Walz , Cara Lindsley, Jesse Allen, Jason Mathis, and Allison Peterson briefed the Board with attachments . Ms . Lindsley provided background on the original feasibility study. She said since that time, the consultant had gone back and considered calculations, input, and assumptions and the Board now had the final feasibility study. Mr. Allen explained there was a mistake in the report that was now corrected. He proceeded to go through the report and highlight the changed areas . He said there were three main questions : (1) was there sufficient demand and supply to support a year-round, indoor public market in the Station Center District that could operate without a subsidy; (2) Does Station Center Site 5 provide a viable site, based on its size, the district' s design guidelines, adjacent uses, and access; and (3) was it feasible for a private developer to construct a public market at Site 5 as part of a mixed-use development . Mr. Allen said there was a mistake in the financial pro forma that indicated the project could provide significant benefit to the cost of construction; in reality, the majority of the construction costs would have to be provided through public grants or private donations . He said the revised report showed that a mixed-use development did not support the venue, but did provide secondary benefits . Mr. Allen said another change was in overall size. He said based on the information previously described, there was the attempt to minimize the market size to bring costs down. He said the overall size was decreased by removing the three-day provision and office component that would be rented by a partnership organization. He said the smaller size reflected a decreased parking need and overall costs . He said the recommendation included a shared-model parking with one level of underground rather than the previous two. He said the remainder of the report remained basically the same. Discussion followed regarding zoning requirements, with Mr. Allen stating he felt zoning requirements would be separate from design guidelines . Ms . Bruno said setbacks and zoning requirements needed to be verified. Ms . Gust-Jenson said the role of the RDA was to comply with City Code . Mr. Allen said there were other ways the Code could be met by providing additional programming on the first level (not part of the study) . He continued the overall goals remained the same: catalyst for development of area; expand impacts to Farmer' s Market; create a hub for local food movement; support small businesses/create jobs; and promote community wellness through food and location. He said all of these goals could be accomplished with the appropriate management and Urban Food Connection had been identified as most eligible and capable . Ms . Peterson said the Urban Food Connection had operated one of the largest and most successful Farmer' s Markets in the west for 27 years . 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 She said they helped to create more than two dozen businesses that grew from a small booth to brick and mortar, national and international distribution, and they knew how to cultivate the product mix. She further discussed the Winter Market every week at Rio Grande with a proven track record of getting people to a neighborhood about which they were unsure. She said this project could be an extension of their ability, but with more amenities . Director Kitchen inquired as to feasibility of a private developer constructing a public market and inquired if any partnership had been engaged (or what that might look like) . Mr. Mathis said there had been some good conversations as to a partnership but there was not a proposal at this time . He said the report would set the foundation for how that might take place . The Board discussed the $31 million construction costs, with Mr. Allen stating that number anticipated every conceivable cost and was fairly high; there was hope to bring it down by working with local developers . Inquiry was raised as to why Parcel Site 5 was selected as the location, with Mr. Walz stating there was opportunity to combine and build together with a partner to share development (such as shared parking) . Further discussion took place regarding potential income scenarios associated with the market, with Director Mendenhall encouraging conversations with private developers . She said she was supportive of the concept and the location as a way to bring people into a neighborhood they otherwise would not visit . She said she could see this creating a community experience and valuable draw. She expressed concern the City had so many foundational needs it was difficult to look at participating (even though there was support of the idea) . Mr. Mathis said he hoped to return with ways to fund the gap with entities to make this project successful and hoped for specific commitment once the numbers started to solidify. The Board discussed next steps for the area to become open and welcoming to all populations, including public residency. Director Kitchen said the Board took action a year ago by allocating resources for study of the feasibility of the State Fair Park being used as a Public Market concept. He inquired as to the status of that study. Director Rogers expressed concern that the Board had voted on this issue prior. He said even if the report before them had changed, the Board had still requested and funded an additional area study to have something for comparison. He said he could not make a decision without having something comparative and felt other stakeholders would want the same . He expressed frustration in that the Board had been asking for two years to have the study conducted and had not seen a thing. 18 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 Director Fowler said she supported the Public Market being at Site 5 but also understood the position of Director Rogers . She inquired if there was a way to conduct a study of the Fair Park on a broader level to determine what would be beneficial in that location (i .e . better idea) . Director Mendenhall said she agreed with Director Fowler and she agreed that funding was allocated for a purpose . Director Rogers said the issue kept returning to obtaining a feasibility study. He said he felt the Downtown Alliance seemed to have pull with the City and could inflict pressure for no direction or push this forward. He said two years was wrong and he was concerned that certain individuals were preventing this from going forward due to personal interest . He said comparison data would definitely add value to the proposal . Further discussion followed regarding the funding and why the study had not occurred. Mr. Walz said the funding was allocated and waiting for conclusion of the review of this study before looking at Fair Park. He said Staff could certainly allocate those funds and put that project on a parallel path. Director Mendenhall said she did not want to hold up the process for the Station Center Public Market area and did not blame the Downtown Alliance for not having interest in the Fair Park area (not located in the downtown) . She suggested separating the two and instructing the consultant to try and find private partnerships and consider all viable market properties for the State Fair Park location. Director Kitchen said he was sympathetic to Director Rogers . He said the Board had voted for an allocation of $175, 000 for the Fair Park Study, it served an important purpose, and there was desire to retain it yet not just limit it to the public market concept . He discussed consideration of the fairgrounds in order to activate them, make investment, achieve North Temple goals, pull in partnerships, and consider economic development opportunities along the corridor and at the fairgrounds . He said he did not want to invest in a singular study when there was opportunity to identify goals for the fairgrounds . Discussion followed regarding the timeframe for a study, with Mr. Walz estimating a six-month window for the broader scope. Director Luke said he was not interested in moving forward on a Public Market proposal until the Board received the additional study. The Board debated holding on the downtown Public Market to await the additional study. Director Rogers said he wanted to have the ability to consider which location would be a better consideration before voting. Director Mendenhall said it was not just Salt Lake City who owned and operated the Fair Park and there were other players involved. 18 - 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 A 5-2 Straw Poll was held (Directors Luke and Johnston opposed) to move forward on the Fair Park Public Market Feasibility Study with the funds already appropriated, and to consider how to best activate the fairgrounds, solicit potential partners with the State and County, consider alternative uses to serve the fairgrounds (inclusive of existing Master Plans and intergovernmental relationships) , and evaluate market idea in addition to anything additional . Mr. Walz said to expect something from RDA Staff within the next few weeks . #8. Report and Announcements from the Executive Director. Report of the Executive Director, including a review information items, announcements, and scheduling items. The Board of Directors may give feedback or policy input. Item not held. #9 . 3:54 :38 PM Report and Announcements from RDA Staff. The Board may review Board information and announcements. The Board may give feedback on any item related to City business, including but not limited to: • Status update on housing projects and programs • Scheduling items Mr. Walz reported the RDA' s "Notice of Funding Availability" for $10, 000, 000 in Housing Funds would go before the Redevelopment Advisory Committee in April, and to the RDA Board for update in April or May. Mr. Walz said RDA Staff position interviews were underway and he hoped to be fully staffed in the near future. #10. Report of the Chair and Vice Chair. The Chair may review the minutes of a previous Board meeting. Item not held. D. WRITTEN BRIEFINGS #1 . 3:56: 16 PM Granary District Mural Grant Program. The Board will receive written briefing about the Granary District Mural Program. On June 13, 2017, the Board approved a budget appropriation of $150, 000 to support mural installation in the Granary District Project Area . View Attachments 18 - 10 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 Director Kitchen addressed the timeline and expressed concern as to the requirement for submissions by May 17, 2018 (within two months) . Mr. Walz said that would be a combined promotion through the RDA, Main Street America, and Business Development. He suggested depending on the initial promotion and response, Staff could look at having it open in an ongoing basis until the funds were fully expended. E. 3:5 7 :21 PM CONSENT Director Mendenhall moved and Director Fowler seconded to approve the Consent Agenda, which motion carried, all directors voted aye . #1. Set the date - Stadler Rail Single Property Community Reinvestment Area. The Board will set the date of Tuesday, April 10, 2018 at 2: 00 p.m. to accept public comment about the creation of a single-property Community Investment Area (CRA) to facilitate the development of Stadler Rail . Mr. Walz further addressed RDA Staff concerns with new or amended project areas or agreements . He said Staff was in the public comment notification process and this project area creation would entail the same options as the proposed amended Northwest Quadrant CRA. He said options include do nothing or proceed with approving the plan, enter into developer interlocal, or approve the plan, enter into interlocal with the RDA and City, and wait to enter into interlocal with developer. He said the Board could determine to wait until they receive clarity on SB234 before entering into any agreement that pledged tax increment to the developer. He said Staff had initial dialogue with Stadler to make them aware of the potential happenings . Director Luke said as with the other CRA, he did not support moving forward on the Stadler piece either and preferred to focus efforts on the existing CRA. He said it was an unfortunate position, and he hoped Stadler would understand it had nothing to do with the RDA Board not wanting to move forward. He said the Board was willing to conduct a discussion if/when there was clarity. Director Rogers inquired if negotiations with Stadler put the RDA in a legal bind. Ms . Lewis explained to the extent that the City and RDA decided to pursue project area creation, interlocal agreement, and tax increment now with the Port Authority, all contracts would indicate being subject to the senior right of the Inland Port Authority to take the increment. She said that would then become a business decision of the developer. Mr. Walz requested the Board at least keep and set the date and time of the public hearing for the Stadler Rail Community Reinvestment 18 - 11 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MARCH 20 , 2018 Area with the understanding that as part of the purchase contract between Property Reserve, Inc. (PRI) and Stadler for acquiring the property, one of the conditions for closing on the land was securing RDA increment. He said Staff would continue to work to determine if that were true . He suggested the RDA preserve that option and allow Staff to report back. F. TENTATIVE CLOSED SESSION. The Board will consider a motion to enter into Closed Session, in keeping with Utah Code §52-4-205 for any allowed purpose . Item not held. The meeting adjourned at 3 : 58 p.m. Redevelopment Agency Chair Secretary This document is not intended to serve as a full transcript as additional discussion may have been held; please refer to the audio or video for entire content pursuant to Utah Code §52-4-203 (2) (b) . This document along with the digital recording constitute the official minutes of the Salt Lake City Redevelopment Agency meeting held March 20, 2018 . clm 18 - 12