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)
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#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
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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.
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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
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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.
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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
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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 .
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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.
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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.
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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
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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
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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
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