05/08/2018 - Minutes MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
TUESDAY, MAY 8 , 2018
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, May 8, 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, and Andrew Johnston.
Absent: Director Charlie Luke
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, RDA Chief Operating
Officer; Lara Fritts, Economic Development Director; Tammy Hunsaker, RDA
Project Manager; Susan Lundmark, RDA Project Manager; Jill Wilkerson-
Smith, RDA Project Manager; Cara Lindsley, RDA Project Manager; Corinne
Piazza, RDA Project Coordinator; Allison Rowland, Council Public Policy
Analyst; Benjamin Luedtke, Council Public Policy Analyst; Katherine
Lewis, Senior City Attorney; DeeDee Robinson, Deputy City Recorder; and
Cindi Mansell, City Recorder.
Also Present: Martin Ritter, Stadler Rail Chief Executive Officer and
Jacob Splan, Stadler Rail SLC Project Lead.
Director Kitchen presided at and conducted the meeting.
The meeting was called to order at 2 : 05 p.m.
A. GENERAL COMMENTS TO THE BOARD
There were no public comments .
B. 2:0 6:2 8 PM PUBLIC HEARINGS
#1. RDA Budget Amendment No. 4 for Fiscal Year 2017-18 . The Board
will accept public comment about a resolution amending the final budget
of the Redevelopment Agency for Fiscal Year 2017-18. View Attachments
There were no public comments and no action taken.
C. REDEVELOPMENT AGENCY BUSINESS (RDA)
#1. 2:06:56 PM Approval of Minutes . The Board will approve the
meeting minutes of Tuesday, April 10, 2018 and the joint meeting minutes
of Tuesday, May 1, 2018. View Minutes
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Director Mendenhall moved and Director Fowler seconded to approve
the minutes as proposed, which motion carried, all directors present
voted aye .
#2 . 2:07:18 PM Notice of Funding Availability. The Board will discuss
and consider approving the policy guiding the Notice of Funding
Availability (NOFA) to allocate $10 million towards to-be-determined
affordable housing projects. View Attachments
Tammy Hunsaker, Danny Walz, Cindy Gust-Jenson, and Jennifer Bruno
briefed the Board with attachments . Ms . Hunsaker provided background in
that the Board allocated $10 million towards to-be-determined affordable
housing projects, with $4 . 5 million specifically earmarked for housing
in High Opportunity areas . She reviewed the draft policy, purpose,
eligibility and requirements, funding terms and conditions, evaluation
and approval process including application, eligibility review, funds
availability, monitoring, and compliance . She said in addition, the
following project priorities were in the Staff memo but not in the policy
to allow for flexibility to adjust priorities as needs and conditions
changed: transit proximity, equity/geographic distribution of affordable
housing, mixed income, displacement prevention, diversity and innovation
of housing types, neighborhood revitalization, underserved populations
and long-term affordability, sustainability, leveraging, and financial
viability.
Director Mendenhall said she appreciated the flexible approach but
wanted to see specific housing priority items included in this policy
versus Staff memo (Administrative discretion) . Mr. Walz said these would
be referred to as the policy changed and was updated to reflect the
City' s goals . He said by setting the NOFA as an ongoing policy and not
one-time distribution of funds, it would allow flexibility for continued
use for different fiscal years and projects . Director Fowler expressed
concern with this NOFA being particular to housing as well as to allow
outside discretion. She said these priorities, whether now or 10 years
from now, would most likely remain the same and continue . She said,
therefore, she did not see a disadvantage for including these within the
actual policy.
A unanimous Straw Poll was conducted to include the Transit
Proximity housing priority within the NOFA Policy as follows: to
encourage access to public transit, priority would be given to projects
that were located within a half-mile walking distance of a TRAX station,
S Line Station, or other fixed-line transit to include frequent transit
network lines as defined within the Transit Master Plan.
Discussion followed regarding the definition of "High Opportunity
Areas" within the Equity/Geographic Distribution priority. Ms . Hunsaker
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said the opportunity index was done by Salt Lake County and University
of Utah, taken from the Fair Housing Equity Assessment and updated data
provided to the Mayor' s Office . Inquiry was raised as to whether the RDA
had received the new/updated information. Director Fowler requested
unique term definitions be included to facilitate understanding. Ms .
Hunsaker referenced a definition (scale 1-10) of six and above to define
areas of High Opportunity.
A unanimous Straw Poll was conducted to include the
Equity/Geographic Distribution priority as provided with no changes
(including definition references) . Mr. Walz said Staff would remove the
specific $4 . 5 million language to allow for reference to all policies
and not specific to this particular purpose .
Director Johnston inquired how these related to the general Housing
Policy of the City. Mr. Walz said these were not necessarily within the
Housing Plan but were approved by the Council . Ms . Bruno clarified there
was a section within the Housing Plan added by Council and this was a
way of capturing (in summary form) all policy throughout the rest of the
Housing Plan. Ms . Hunsaker said she did reword and consolidate some, but
the intent remained the same. Director Johnston said to ensure the two
remained aligned, these should be aligned with the City policy versus
going about the process in this manner. Ms . Gust-Jenson said the Housing
Policy and nearly all Master Plans were intentionally broad and could be
interpreted in many ways . She said "guideposts" were key things the
Council kept returning to (specifics) . She said the RDA Staff had picked
those up, modified, and fit them into this format; and if those key
things were important, the Board might want them included. Discussion
followed regarding overall consistency in expenditure of funding as
compared to specifics being requested for this particular policy.
Director Mendenhall requested language clarification and said she
was uncomfortable with any allowance for non-mixed income projects for
this funding. She said the wording seemed to encourage mixed-income yet
left the door open for the possibility that some would not be .
A unanimous Straw Poll was conducted regarding wording under the
Mixed-Income Priority to only include: to encourage mixed-income
developments and neighborhoods, priority would be given to projects that
were mixed-income.
Discussion followed regarding the Displacement Prevention priority,
with Director Rogers stating there were many projects in the City he
would not feel comfortable defining in this manner. He inquired if the
intent was for households or the people in them (people versus brick and
mortar) . He said he would rather include wording about displacement
prevention of the projects (net increase in affordable housing/not to
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exclude rehab projects) . Ms . Gust-Jenson said one item of concern was
removal of a unit with low-income residents in decent shape and
replacement with a unit for lower income in its place . She said this did
not make policy sense when more units were needed and the Board did not
want to fund the shuffling of residents . Concern was expressed regarding
the confusion associated with this priority, with the suggestion being
made to return with an alternative approach. Director Fowler requested
language clarification for these priority statements such as rewording
to include "Priority would be given to..." statements .
Discussion followed regarding the Displacement Prevention Priority
wording being confusing and needing to be reworked for clarity. Director
Kitchen requested reference to language around adding a net increase in
affordable housing versus just mitigating. Director Rogers suggested
priority be given to projects on affordability and higher areas of
affordable opportunity. Ms . Hunsaker said Staff was potentially
considering providing weight and ranking criteria (priorities developers
would consider when developing projects) but such could rule out
substantial rehab of units .
Discussion followed regarding balancing tests and previous
conversations, with the Board being unsure as to a perfect language
scenario versus picking and choosing from the listing. Director Johnston
expressed concern with being restrictive and allowing flexibility to
adapt versus RDA feeling comfortable with policies and oversight.
Director Fowler suggested instead of policy surrounding priorities,
there could be another piece of policy which defined additional factors
to be included or considered. Ms . Hunsaker said Staff could prioritize
projects that were adding to the housing stock and the Board would have
the final determination on project proposals and funding opportunities .
Director Mendenhall referenced the Underserved Populations and
Long-term Affordability and how it was defined for this funding. Ms .
Hunsaker discussed threshold requirement of 30 years . Director Kitchen
said it was important to discuss owner-occupied affordability. He said
he was unsure where it would fit in these 10 points but wanted to include
the reference. Ms . Gust-Jenson said Staff could discuss this with RDA
and Housing and Neighborhood Development (HAND) Staff.
Director Mendenhall moved that Housing Priorities 1-10 be adopted
(as discussed) to include in the NOFA Policy. There was no second to the
motion but no objections were made.
Further discussion followed regarding Eligibility and Requirements
(2 . 5 Minimum Affordability) and the specific sentence "RDA funding shall
be sized in proportion to the affordable component" and whether this
meant not according to Area Median Income (AMI) depth but rather number
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of units . Ms . Hunsaker said this could be interpreted either way and
clarifying language could be added. Director Mendenhall requested
proportional sizing reflect AMI depth and not just the number of units .
Director Fowler requested defining monitoring and compliance to
include parameter-monitoring language. Further discussion followed
regarding 12 versus 36-month Conditional Commitment period, with Mr.
Walz stating the policy was written for 12 months . Ms . Hunsaker said
Staff could remove the specific timeline from the policy and allow for
establishment on a case-by-case basis depending on project needs (as
recommended by the Redevelopment Agency Committee (RAC) ) . Mr. Walz added
it could be part of contingency approval for funding.
Ms . Hunsaker said with this direction, Staff would revise the policy
and present it to the Board next month for approval in order to prevent
any delay.
#3. 2:56:59 PM Housing Funding Overview. The Board will receive an
overview of housing requirements, historical and ongoing practices, and
policy considerations for an RDA Housing Funding Policy. View Attachments
Tammy Hunsaker, Danny Walz, and Katie Lewis briefed the Board with
attachments/Power Point Presentation. Ms . Hunsaker said Staff was
working to establish a Housing Funding Policy to guide future budget
allocations and align with the requirements of Utah Code Annotated Title
17C (including reporting and budget requirements) . She discussed
historical and ongoing practices, including budget allocations, programs
and tools . She reviewed housing activities, accounting, reporting, and
affordability requirements and restrictions . She referenced policy
questions to consider (in addition to required housing allocations) as
well as guidelines for funding designation.
The Board discussed available options . Inquiry was raised as to how
to define "community" with Ms . Lewis referencing Title 17C and stated
she was sure the definition of a municipality was defined as anywhere
within the boundary within which the RDA existed. She clarified this was
not within a project area but boundaries of the City. Ms . Lewis said in
historical practice, the RDA had provided a portion of funds to the
City' s Housing Trust Fund to utilize its required housing allocation
provided to the community.
Director Mendenhall referenced the Staff report and inquired how
this policy worked with that of HAND and the Growing SLC Plan. She said
she understood roles and overlap where necessary compared to not
replicating work. She said she wanted to create a policy to recognize
displacement of populations due to redevelopment and align recognition
with available housing dollars through the RDA.
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Director Fowler suggested a policy discussion regarding the roles
for RDA and housing/HAND and how those two organizations worked together.
She said they might have slightly differing goals and objectives that
needed to be documented/defined so everyone could benefit. Director
Fowler requested information as to the percentage or range that had been
given to the Housing Trust Fund over past years (generalized amount) .
Ms . Hunsaker said the amount varied and was never based on percentage .
Director Fowler requested a chart of numbers (historical information)
for potential to interpret trends or reasoning to assist in policy
discussion (patterns/foundations/trends/flat fee) .
Director Rogers suggested a policy discussion regarding
bonding/public/private partnership with outside sources to determine
capacity/options/interest.
Mr. Walz said Staff could return with additional information and
would have to memorialize commitment to what they hoped to accomplish
with up-front bonding and various project area requirements .
Clarification was offered that the option to bond for housing only
existed through the RDA. Mr. Walz said as the Board formulated this
policy, it was important to keep in mind the purpose of the RDA beginning
to work within project areas, build up tax base, have funds available
for commercial infrastructure, placemaking, and residential . He said the
Board could consider potential to change priorities as discussions
evolved.
#4 . 3:18:26 PM Project Area Plan Draft: State Street and 9-Line. The
Board will be briefed about the first draft of the 9-Line and State
Street Community Reinvestment Area (CRA) Plans. View Attachments
Danny Walz , Tammy Hunsaker, and Susan Lundmark briefed the Board
with attachments . Mr. Walz provided background and said the final draft
incorporated previous Board direction. Ms . Hunsaker said Staff conducted
community outreach campaigns and coordinated with other groups to
assemble the first draft of the project area plans . She said Staff would
coordinate drafting of the complex (large areas with irregular
boundaries) legal descriptions . She discussed timing and said once the
Board provided preliminary approval, Staff could move forward with
additional community outreach (30-day comment period) , discussions with
the taxing entities, and other necessary steps to finalize the CRA Plans .
Ms . Lundmark reviewed the boundary area modifications in response
to previous Board direction (see Project Area Plan Boundary Map) .
Director Kitchen said he was interested in adding (multi and single
family) language to the 9-Line Plan regarding accessory units associated
with neighborhood revitalization. Director Mendenhall referenced the
Background and Opportunities section/State Street Plan and suggested a
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change of commercial sex to human trafficking (include both labor/sex
criminal offenses) . Ms . Hunsaker said this information referenced the
crime types tracked by Salt Lake City Police Department. She said they
did not track victims so it would be difficult to track those statistics .
Director Mendenhall requested the crime entitled "solicitation of
commercial sex" be added. She said she appreciated the recognition as to
critical timing associated with public outreach. She said under Objective
4 : Housing she was curious as to providing resources to support social
services and whether that would include housing. Director Johnston said
generally, social service agency licensing would determine services .
Director Mendenhall requested adding language to provide resources to
support housing and social services in the area.
Director Johnston addressed social services and an example of how
RDA would fund those . Mr. Walz said it would include brick and mortar
development which could support that type of housing (not operations or
programming as much as a facility itself) . He said such would generally
not serve as a funding source for services .
Director Mendenhall referenced Objective 3 : Employment Centers and
whether ideas or outreach had started. Mr. Walz said the process would
include identifying potential partners within the project area. Ms .
Lundmark said although there were more conversations to be had with the
major employment centers, Salt Lake Community College expressed interest
in partnership surrounding more student housing near the school .
Mr. Walz said Staff would make these changes, make the Plan
available, and move forward with the required process .
#5. 3:38:02 PM Stadler Rail Tax Increment Reimbursement. The Board
will be briefed about Stadler Rail 's tax increment reimbursement request
which would help pay for infrastructure improvements at their new
facility in the Northwest Quadrant. Stadler must document and fulfill
certain investment and employment requirements to obtain the maximum
reimbursement of $9, 610, 721 over 20 years through the RDA's Single
Property Business Retention tool . View Attachments
Jill Wilkerson-Smith, Allison Rowland, and Danny Walz briefed the
Board with attachments . Ms . Wilkerson-Smith reviewed the term sheet
categories including payment terms, permitted uses, policy requirements,
and recording requirements .
Clarification was requested regarding positions hired/numbers of
job creation. Mr. Ritter joined Staff and explained this expansion would
bring total Stadler employment from 150 to 300 later in 2018; over the
next 10 years this would increase to a total of 976 jobs, with an average
annual salary of $55, 370 .
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The Board discussed the terms and Director Fowler inquired if the
language "may" provided leeway. Director Mendenhall discussed the 90%
reimbursement agreement, various phases, and projected end results .
Director Mendenhall moved and Director Fowler seconded to adopt RDA
Resolution R-15-2018 approving the terms and participation of the
reimbursement agreement with Stadler Rail to include the condition that
Stadler Rail acknowledges that the RDA' s commitment of tax increment for
the project is subject to the Utah Inland Port Authority' s right to take
up to 100% of the tax increment generated within the project area for
the purposes set forth in Utah Code 11-58-602, enacted by the Utah
Legislature as SB234 in the 2018 Legislative Session, which motion
carried, all directors present voted aye . View Motion Sheet
#6 . 3:51:33 PM Overview of the Redevelopment Agency Budget for
Fiscal Year 2018-19. The Board will receive a general overview of the
Mayor's Proposed Recommended Budget for Fiscal Year 2018-19 for the
Redevelopment Agency of Salt Lake City. The Board will continue to
discuss the Mayor's Recommended Budget over the next several weeks and
will have public hearings on May 15, 2018 and June 5, 2018. The Board
will adopt the budget in mid-June. View Attachments
Danny Walz, Ben Luedtke, and Jennifer Bruno briefed the Board with
attachments/Power Point presentation. Mr . Walz reviewed goals for 2019,
priorities, and key changes .
Mr. Walz referenced the scope of the State Fairpark Public Market
Study and said the State asked that the public market component (as part
of the White Ballpark development opportunity) include the area just
south of the Fairpark across from North Temple . Ms . Gust-Jenson expressed
concern this was new information and she thought when the Council
appropriated funding it was for consideration of utilizing existing
Fairpark infrastructure . She said it would entail an entirely different
conversation if it involved constructing something new on a parcel across
the street. Mr. Walz offered clarification this would just be included
as part of the study to consider potential of all property being seen
for opportunity.
Director Kitchen suggested Staff research RDA minutes to determine
exact Board direction given. Ms . Bruno said she recalled the Board did
not want to exclude the public market as an activator for the space but
wanted to broaden the idea of activation at the Fairpark. Concern was
expressed relative to changing the scope without changing the title . Mr.
Walz said Staff asked the State to return to the RDA to explain how they
wanted to utilize the area to determine if goals could be aligned to
make the study beneficial to them. Director Mendenhall said if the State
wanted to broaden consideration, they should make a financial
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contribution to that study. Director Johnston said he recalled the study
could be broadened but not exclude consideration of a public market at
that specific location.
The Board contemplated how to track loan program parameters to
determine success, who/what was the RDA, and its parallel and parameters
to the City Council . Discussion followed regarding the potential for
small group meetings with RDA and Council Staff to dive deeper into
budget questions . Ms . Bruno said there might be need to schedule
additional RDA Board meetings, but those could potentially follow small
group discussions .
Director Mendenhall referenced key elements under the
Administrative Budget and suggested memorializing in policy whether or
not all project areas contribute to the Administrative Budget on the
basis of what they could afford (i .e. do they get what they
generate/should Administrative funds come from areas where work was
done) . Director Kitchen requested the Board put notes for staff and
further Board consideration in writing to facilitate productivity in
those small group meetings .
#7 . 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.
#8. 4:19:21 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 scheduling items.
Mr. Walz provided status updates on various projects and issues . He
introduced/discussed qualifications of the new RDA Project Coordinator
Corinne Piazza. The Board welcomed Ms . Piazza.
#9. 4:22:54 PM Report of the Chair and Vice Chair. The Chair may
review the minutes of a previous Board meeting.
Director Mendenhall said the Board had requested a State Street
"like" experience that they did not receive in Minneapolis . She said it
was a fairly big task asking Administration to find a location that the
Board could visit and actually see a City that had successfully developed
an area similar to State Street. Mr. Walz said Staff would need to follow
up with their list to determine if any locations would work. He said he
agreed the Minneapolis streets toured were not similar. Director Kitchen
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said although members of the Board went for another purpose and did not
go there for this in particular, they were hoping to achieve efficiency.
He said funds could be set aside for Staff exploration in upcoming budget
discussions .
D. WRITTEN BRIEFINGS
#1. 4:25:07 PM RDA Budget Amendment No . 4 for Fiscal Year 2017-18.
The Board will receive a written briefing about a resolution amending
the final budget of the Redevelopment Agency for Fiscal Year 2017-18.
View Attachments
Written Briefing only.
E. 4:25:14 PM CONSENT
Director Fowler moved and Director Johnston seconded to approve the
Consent Agenda, which motion carried, all directors present voted aye.
#1 . Confirm the dates - RDA Budget for Fiscal Year 2018-19 . The
Board will confirm the dates of Tuesday, May 15, 2018 and Tuesday, June
5, 2018 at 7 p.m. to accept public comment about the proposed RDA Budget
for Fiscal Year 2018-19. (Note: this budget was sent to the Board in
conjunction with the City's Annual Budget on May 1, 2018) .
F. 4:26:28 PM 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 .
Director Kitchen moved and Director Mendenhall seconded to enter
into Closed Session to discuss pending or reasonably imminent litigation
pursuant to Utah Code §52-4-205 (1) (c) , Utah Open and Public Meetings
Law. A roll call vote was taken with Council Members Fowler, Johnston,
Kitchen, Mendenhall, Wharton, and Rogers voted aye . Councilmember Luke
was absent. See File M 18-1 for Sworn Statement .
In Attendance: Directors Mendenhall, Fowler, Johnston, Kitchen, Wharton,
and Rogers .
Absent: Director Luke.
Others in Attendance: Margaret Plane, Benjamin Luedtke, Jennifer Bruno,
Katherine Lewis, Jackie Biskupski, Patrick Leary, David Litvack, Laura
Fritts, Danny Walz, DeeDee Robinson, and Cindi Mansell .
The Closed Session adjourned at 4 : 49 p.m.
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The RDA meeting adjourned at 4 : 49 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
May 8, 2018 .
clm
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