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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 18 - 1 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 2 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 3 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 4 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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. 18 - 5 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 6 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 . 18 - 7 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 8 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 9 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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. 18 - 10 MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, MAY 8 , 2018 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 18 - 11