10/18/2016 - Minutes Minutes of the Redevelopment Agency Board of Directors
October 18, 2016
Some items may be discussed in an order different than listed on the agenda, time stamps shown
indicate when items were discussed.
Roll Call. The following members of the Board of Directors of the Redevelopment Agency of
Salt Lake City were present:
Lisa Adam, Chairperson Derek Kitchen, Vice-Chairperson
Erin Mendenhall James Rogers
Charlie Luke Andrew Johnston
The following members of the Board of Directors of the Redevelopment Agency of Salt Lake
City were absent:
Stan Penfold
Also present:
Justin Belliveau, Chief Administrative Officer; Jackie Biskupski, Executive Director, David
Litvack, Mayor Office; Edward Butterfield, Senior Project Manager; Kort Utley, Senior
Project Manager; Tammy Hunsaker, Project Coordinator; Benjamin Davis, Project Manager;
Jennifer Bruno, Council Office; Cindy Gust-Jensen, Council Office; Margaret Plane, City
Attorney's Office; Katie Lewis, City Attorney's Office.
A. Comments:
1. 1:16:16 PM Amendment No. 2 to the FY 2017 Budget, including plans for Housing
Funds. View Attachment
Chairperson Adams called for public comments concerning the second amendment 2016/2017
Budget. No public comments were made.
Chairperson Adams stated that public comments concerning the budget would also be accepted
later on in the meeting at approximately 2 PM.
2. 1:16:43 PM General Comments to the Board
Chairperson Adams thanked Katherine Potter for the hard work and dedication she provided in
getting the Eccles Theater launched and opened. The RDA Board presented a gift to Ms. Potter
to show their appreciation. The RDA Board wished her well as she moves forward in her new
position at Rowland Hall.
Chairperson Adams also acknowledged that Jennifer Bruno was a key participant on in the
Eccles Theater project and thanked her for her contribution.
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Minutes of the Redevelopment Agency Board of Directors
October 18, 2016
B. Redevelopment Agency Business
1. 1:17:09 PM Approval of the Minutes
Director Kitchen made a motion to approve the minutes from the September 13, 2016. Director
Rogers second the motion. Upon roll call, the motion passed unanimously. Director Luke was
not present for the vote. View Minutes
2. 1:20:18 PM Report and Announcements from the Executive Director
None.
3. 2:39:43 PM & 3:45:08 PM Amendment No. 2 to the FY 2017 Budget, including plans
for Housing Funds. View Attachment
Chief Administrative Office Belliveau stated in an effort to help support the City's housing goals
and homelessness needs the RDA has been working with Housing and Neighborhood
Development(HAND) on its request of$12 million to assist with securing the right to acquire
real property for homeless resource centers.
Chief Administrative Office Belliveau reviewed the following two options of potential funding
sources. The first option, identified in the attached as "Option A" includes the RDA's preferred
sources of funding for this effort. The attached"Option B" identifies alternate resources that
could be appropriated. He added that any unused funds would be returned to the RDA through a
legislative process.
OPTION A
Initiative from RDA FY 2016-2017 Budget
Project Area Amendment#2 Amount
Central Business District CBD Housing Initiative $ 4,468,345
Central Business District Utah Paper Box Development $ 500,000
Project Area Housing North Temple TOD Development Opportunities $ 2,150,725
Depot District Loan Programs $ 339,724
City Wide Housing Quiet Zone $ 2,042,092
City Wide Housing Eastside Affordable Housing $ 2,499,114
Total $12,000,000
OPTION B
Initiative from RDA FY 2016-2017 Budget
Project Area Amendment#2 Amount
Revolving Loan Fund From Cash on Hand as of 6/30 $ 6,000,000
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Minutes of the Redevelopment Agency Board of Directors
October i8, 201.6
Program Income Fund Proposed State Street Project Area Seed Funds $ 1,500,000
Program Income Fund Proposed 9 Line Project Area Seed Funds $ 1,500,000
Program Income Fund Marmalade Block Park-Phase II $ 575,885
Central Business District Mid-block Connections $ 1,000,000
Sugar House Parley's Trail Design and Construction $ 352,699
Sugar House McClelland Streetscape Improvements $ 245,000
Depot District Folsom Trail/City Creek Daylighting Study $ 329,661
Granary District Fleet Block Redevelopment $ 256,755
North Temple I-15 Underpass Pedestrian Improvements $ 120,000
North Temple TOD Development Opportunities $ 120,000
Total $12,000,000
Director Rogers and Director Johnston requested that the budget line item be retitled from"TOD
Development Opportunities"to "Catalytic Development Opportunities".
Chairperson Adams invited Ms. Bruno and Ms. Gust-Jensen to present the City Council Office's
internal analysis of the proposed accounts and other line items within the RDA's budget.
Ms. Bruno noted that the information presented today by the Council Office was completed less
than 24 hours ago and although the information was provided to the Administration it has not
been vetted fully and discussions on potential operational concerns have not taken place.
Ms. Bruno presented the Council Office's analysis and reviewed all RDA accounts where the
Council Office felt funds may be available.
Vice-Chairperson Kitchen proposed using the one half of Fund Balance accounts, Midblock
Connection, 9-Line Project Area Seed funds, and State Street Project Area Seed funds and $6
million from the RDA's Revolving Loan Fund towards the property acquisition for the homeless
resource centers appropriation and any additional funds would be pulled from the Revolving
Loan Fund Cash on Hand on a as needed basis, which equals $11,775,911.
3:44:32 PM Chairperson Adams conducted a straw poll concerning Derek's proposal for funding
the acquisitions for the homeless resource centers. All Board members present were in support.
3:45:07 PM Chairperson Adams called for public comments concerning the Second Amendment
to the 2016/2017 budget. There being no public comments, Director Luke made a motion to
close the public hearing. Vice-Chairperson Kitchen seconded the motion. Upon roll call,
Chairperson Adams declared the motion unanimously approved and the public hearing was
closed. Chairperson Adams stated that an additional public hearing has been schedule for
October 25th at 7:00 PM.
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Minutes of the Redevelopment Agency Board of Directors
October i8, 2016
Chief Administrative Officer Belliveau said that the RDA is comfortable with the direction the
Board is going with regards to the sources of funding for the homeless resource centers, however
requested time to engage the Bond Counsel on the appropriate fund balance to maintain to ensure
that the RDA's credit rating is preserved and meet its operational cash flow needs.
Director Mendenhall asked Ms. Bruno to return to the table and present the spreadsheet the
Council Office used for the homeless Resource discussion on potential available funds.
Board members continued the discussion concerning the proposed Second Amendment to the
2016-2017 budget, existing funds, ongoing obligations, Strategic Plan Priority Projects, housing
funds, and urgent needs.
Director Mendenhall went through the list of project area accounts provided by Council Staff and
suggested ways of appropriating approximately$11.2 million out of a variety of accounts and for
affordable housing. This proposal included $500,000 that RDA proposed for funding its
Temporary Property Expenses.
Chief Administrative Office Belliveau identified his concern on ensuring adequate resources are
available for Temporary Property Expenses, given that the current budget is based on funding
these costs through October.
Director Rogers said he is concerned about not having adequate funds for maintenance and
suggested not appropriating funds from Temporary Property Expense and asked for the Board to
look at other ways to fund housing.
Vice-Chairperson Kitchen stated he agreed with Director Mendenhall's proposal a suggested
adding an additional $6.4 million out of some of the Depot District accounts.
Vice-Chairperson Kitchen asked the RDA Board, HAND, and the City Council and its staff to
work together in creating a program to support our housing resources to address the need for
deeply affordable housing.
Executive Director Biskupski said there is an interest at the State and County level to help with
the homeless population issue. Plans such as the ones presented today should include the State
and County in the discussions. It is important that the City partner with other agencies and
legislative bodies in this effort.
Chief Administrative Office Belliveau asked for a recap of Director Mendenhall's and Vice-
Chairperson Kitchen's proposed appropriations. Ms. Bruno reviewed the proposals.
4:42:43 PM Director Rogers asked that no Temporary Property funds be used in the appropriation
for housing. Chairperson Adams conducted a straw poll to not include Temporary Expense funds
in the housing budget appropriation. All Board members present were in support.
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Minutes of the Redevelopment Agency Board of Directors
October 18, 2016
4:37:56 PM Chief Administrative Office Belliveau requested time to review the proposed
appropriation from the Depot District to allow time for the RDA to discuss with legal counsel
any contractual commitments that are in place to support ongoing and planned projects in Station
Center.
4:48:12 PM & 4:54:52 PM Chief Administrative Office Belliveau and Mr. Utley reviewed
projects with immediate funding needs throughout the RDA project areas, highlighting the need
of the reconfiguration of the 500 West Park Blocks. Director Mendenhall stated she supported
this project.
Director Mendenhall and Ms. Gust-Jenson requested a copy of the scope of work for the 500
West Park Blocks.
4:52:34 PM Vice-Chairperson Kitchen stated he would prefer not to change the proposal for
affordable housing and recommends as an alternate source $100,000 proposed funding for public
art in the Depot District once the scope of work has been reviewed.
6:05:38 PM David Litvack requested that Board members give the Administration time to review
the proposed appropriation that had been suggested by the RDA Board, in order to see the
overall all impacts to the budget and prior commitments. Vice-Chairperson Kitchen stated that
this item could be reconsidered at a later meeting, if the Administration requested and felt it was
not necessary to vote on the item at a later meeting. Director Mendenhall offered that the Board
could be receptive to other suggestions the RDA would have for achieving the same level of
funding.
6:18:51 PM Director Mendenhall made the following motion:
1. Appropriate Revenue Budgets for all funds necessary to cover appropriations listed
below. All expenditure funds,with the exception of those approved in Budget
Amendment#1 and those funds specifically appropriated in budget amendment#2 action
today are not available to be spent without further Board action, and consistent with
Board Policy, no funds appropriated at this or any other time shall be spent on outside
counsel without the specific direction of the City Attorney.
2. Appropriate an expenditure budget for the City and/or RDA to purchase sites for
homeless resource centers:
a. $11,775,911 million Total Amount
b. Sources from each fund to be used on an as needed basis in the order listed
below. (Based on Administration's Proposed Budget Amendment #2)
Source(Based on Administration's Amount
Proposed Budget Amendment#2)
Half of All Fund Balance Accounts $3,775,911
Midblock Connections $1,000,000
q Line Project Area Seed Funds $500,000
State St Project Area Seed Funds S5oo,o00
Minutes of the Redevelopment Agency Board of Directors
October i8, 24)16
Revolving Loan Fund Cash on Hand $6,000,000
3. Allocate funds to an unappropriated holding account for the City and/or RDA to further
the City's affordable housing goals. The intent of the board is to hold these funds until
such time as a plan can be derived to expend these funds to meet the policy goals stated
below.
a. $17,138,143 Total Amount(contingent upon legal review from Administration)
b. Sources from each fund below.
Source (Based on
Administration's Proposed Amount
Budget Amendment #2)
Utah Paper Box Development $500,000
Pioneer Park Improvements(Phase II) $1,73o,000
Central Business District $4,468,345
Housing Development
Downtown Parking Study $too,000
Parley's Trail Design&Construction $352,699
D.I.Site Reuse Plan and $40,000
Developer Selection
McClelland Streetscape Improvements $122,5o0
Marmalade Park Block Phase II $33,435
Detached Dwelling Unit Incentive $65,000
Station Center Art $60,000
50o West/Rio Grande Depot $95,000
Circulation Study
Folsom Trail/City Creek Daylighting $329,661
Loan Programs(Formerly $339,724
identified for Cicero Loan)
Fleet Block Redevelopment $256,755
Adaptive Reuse Grant Program $200,000
I-15 Underpass Pedestrian $12°,726
Folsom Trail/City Creek Daylighting $25,000
North Temple TOD $12o,000
Marmalade Park Block Phase II $662,046
North Temple $1,075,362.50
Additional sources(contingent upon legal review
from Administration):
Planning and Site Preparation $1,2oo,000
Phase I-Market Street& $3,615,426
SMB Construction
30o South and Woodbine $1,626,463
Court Construction
c. Policy purpose—to have the Administration work with the Council staff to put
together a proposal for Board consideration to further the City's affordable
housing goals
4. Appropriate expenditure budgets for the following urgent funding items:
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Minutes of the Redevelopment Agency Board of Directors
October i8, 201.6
a. $500,000 in the Central Business District for Gallivan roof repair
b. $25,000 in West Capitol Hill for Arctic Court utility undergrounding
c. $102,400 in the Depot District for Community Connections Center tenant
improvements
d. $35,000 in the Depot District for 100 South utility undergrounding design
e. $5,704,951 in Block 70 for Eccles Theater construction
f. Council-added items:
i. $85,000 in Program Income Fund for West Temple Gateway utility
undergrounding design and study
ii. $4,000 in the West Temple Gateway increment for 900 South soils
testing (this is a subset of the 900 South street improvements project
request in budget amendment#2)
6:21:14 PM Vice-Chairperson Kitchen seconded the motion.
6:21:31 PM Director Johnston said that although he understands the Board's concerns, there is no
need to rush the approval of this item and felt the Board could allow time for the Administration
to review the changes.
6:23:24 PM Upon roll call, Chairperson Adams declared the motion approved with Director
Mendenhall, Director Rogers, Director Luke, Vice-Chairperson Kitchen, and Chairperson
Adams voting yes and Director Johnston voting nay.
4. 5:03:29 PM Utah Paperbox Terms—Motion to Reconsider. View Attachment
5:03:49 PM Chairperson Adams called for a vote to reconsider the terms for the Utah Paperbox
project, located at 340 West 200 South. Director Kitchen made a motion to reconsider the
resolution. Director Rogers seconded the motion. Upon roll call, the motion passed unanimously.
Director Mendenhall was not present for the vote.
Chief Administrative Office Belliveau explained that during the September 2016 meeting, the
Board approved that the development team of Property Enhancement Group, Inc. include within
the development of the Property, 36 residential units with rents at 60% of the Area Median
Income (AMI) for a period of 30 years in exchange for discounting the purchase price of the
Property from $3,220,000 to $0. At that time, the Board also required that the property sale be
subject to a post-closing, 30-year deed restriction requiring affordability throughout the term.
The Board's motion also required the Developer to execute a deed of trust or other document
amortizing the value of the Purchase Price Discount for a period of 15 years, with a 15-year
reporting period to follow.
Chief Administrative Office Belliveau stated that the RDA requests that the Board reconsider its
motion and follow the Redevelopment Advisory Committee (RAC) original recommendation to
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Minutes of the Redevelopment Agency Board of Directors
October 18, 2016
require the developer to sign a deed of trust or other document amortizing the value of the
Purchase Price Discount over the full 30 year Affordability Term as a mechanism to ensure that
the units remain affordable for the entire term.
5:06:51 PM Director Rogers made a motion to approve a new resolution (Resolution R-34-2016)
requiring the Developer to sign a deed of trust or other document amortizing the value of the
Purchase Price Discount, $3,220,000, over the full 30 year Affordability Term to ensure that the
units remain affordable for the entire term. Vice-Chairperson Kitchen seconded the motion.
Upon roll call, the motion passed unanimously.
5. 5:07:28 PM Loan Forgiveness Request from NeighborWorks/Citifront Apartments.
View Attachment
Ms. Wilkerson-Smith provided background on NeighborWorks' original loan and its
requirements and then reviewed their loan forgiveness request. She explained the RDA Loan
Committee has also reviewed the request and forwarded the following recommendation of
denying the request and grant NeighborWorks with two repayment options: 1)pay the
Replacement Note in full upon the maturity date of October 31, 2017; or 2) request the RDA
issue a new 10-year note on October 31, 2017 to be amortized over 20 years at a 3% interest rate,
with principal and interest payments due annually.
Ms. Wilkerson-Smith stated that after reviewing NeighborWorks request and the Loan
Committee's options, the RDA presented the following option for the Board to consider:
• Option 1: Approve NeighborWorks' request to refund City Front's loan payment and
waive the Replacement Note (i.e., refund$529,213 and forgive the $422,266
Replacement Note)
• Option 2: Deny the NeighborWorks request entirely, but allow NeighborWorks one of
two payment options per Loan Committee's recommendation: 1)pay the Replacement
Note in full upon the maturity date of October 31, 2017; or 2)request the RDA issue a
new 10-year note on October 31, 2017 to be amortized over 20 years at a 3% interest rate,
with principal and interest payments due annually.
• Option 3: Deny the NeighborWorks request to refund City Front's loan payment, but
waive the Replacement Note (i.e., retain the $529,213, and either maintain or update the
existing Replacement Note for$422,266).
5:20:16 PM Director Rogers made a motion to recommend Option 3: Deny the NeighborWorks
request to refund City Front's loan payment, but waive the Replacement Note. Director
Mendenhall seconded the motion. Upon roll call, the motion passed unanimously.
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Minutes of the Redevelopment Agency Board of Directors
October 18, 2016
6. 6:24:04 PM Outside Counsel Policy. View Attachment
Ms. Lewis reviewed the proposed resolution regarding the RDA's utilization of the City
Attorney's Office for all legal work. She added there may be times the Attorney's office may
deem it necessary for the RDA to seek outside legal services, but that would be determined on an
as needed basis.
6:26:09 PM Director Johnston made a motion to approve the resolution (Resolution R-38-2016).
Director Rogers seconded the motion. Upon roll call, the motion passed unanimously.
7. 6:26:57 PM Land Disposition Policy Discussion. View Attachment
Ms. Hunsaker reviewed the Land Disposition policy and the additional information the RDA
Board requested on approaches to include Strategic geographic locations within the project area
that are vital to the redevelopment of the project area are identified in the Project Area Plan
as identified in project area plans in the Tier 1 classification criteria.
6:30:02 PM Director Mendenhall made a motion to approve the resolution (Resolution R-36-
2016) adopting the land disposition policy. Vice-Chairperson Kitchen seconded the motion.
Upon roll call, the motion passed unanimously.
8. 6:31:29 PM Role of the Redevelopment Advisory Committee (RAC)View Attachment
Ms. Wilkerson-Smith presented the draft policy governing the role of the Redevelopment
Advisory Committee (RAC). She explained that RAC members' insights would be most helpful
in areas concerning policy formation, redevelopment plans, strategic plans, and financial
incentives from the RDA.
Ms. Wilkerson-Smith stated the RDA proposes that certain RAC members be called upon to
serve on either of two RDA Special Committees that will act as advisory groups on financial
transactions and design review. She explained that one of the Special Committees will retain the
role of the RDA's current Loan Committee and added that the composition of the Special
Committees may also include City representatives who provide additional expertise specific to
each committee.
Below is a summary of the proposed Special Committees:
• RDA Finance Committee: The RDA Finance Committee will provide recommendations
for approval on all loans, tax increment reimbursements, and land writedowns.
• RDA Design Review Committee: The RDA Design Review Committee would review
and provide insight and recommendations on the design of projects funded by the RDA.
Ms. Wilkerson-Smith said that RAC has reviewed the draft policy and recommended approval.
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Minutes of the Redevelopment Agency Board of Directors
October 18, 201.6
6:35:36 PM Director Mendenhall made a motion to approve the Role of RAC policy resolution
(Resolution R-35-2016). Director Andrews seconded the motion. Upon roll call, the motion
passed unanimously.
9. 6:36:05 PM Loan Approval Process/Forgiveness. View Attachment
Ms. Hunsaker and Ms. Wilkerson-Smith reviewed the Loan Program policy including the
evaluation and approval, exceptions, loan modification, and reporting processes.
6:42:16 PM Director Johnston made a motion to approve the RDA Loan Program policy for
approving and modifying loans and adopt the resolution (Resolution R-37-2016). Director Luke
seconded the motion. Upon roll call, the motion passed unanimously.
10. 6:42:52 PM Report and Announcements from the Staff
None.
11. 6:43:02 PM Report of the Chair and Vice Chair
None.
C. Written Briefings
None.
D. Consent
None.
E. 1:20:58 PM Closed Session
Director Mendenhall made a motion to enter into a closed meeting to discuss matters of pending
litigation and/or the acquisition/disposition of real property and/or attorney-client matters that are
privileged. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the
motion unanimously approved.
The closed meeting of the Board of Directors of the Redevelopment Agency of Salt Lake City
was held at the City and County Building, 451 South State Street, in Room 326 at 1:15 PM on
Tuesday, October 18, 2016.
The following members of the Board of Directors of the Redevelopment Agency of Salt Lake
City were present: Lisa Adams, Chairperson; Derek Kitchen, Vice Chairperson; Andrew
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Minutes of the Redevelopment Agency Board of Directors
October i8, 201.6
Johnston, Director; Erin Mendenhall, Director; James Rogers, Director; and Charlie Luke,
Director.
The following members of the staff of the Redevelopment Agency of Salt Lake City were
present: Justin Belliveau, Chief Administrative Officer; Ed Butterfield, Senior Project Manager;
Jolynn Walz, Office Manager; Louise Garcia, Administrative Secretary; and Crayola Berger,
Accountant II.
Others present: Jackie Biskupski, Mayor's Office; David Litvack, Mayor's Office; Jennifer
Seelig, Mayor's Office; Lynn Pace, Mayor's Office; Lara Fritts, Department of Economic
Development; Katie Lewis, City Attorney Office; Margaret Plane, City Attorney Office, Megan
Depaulis, City Attorney Office; Jennifer Bruno, City Council Office; Benjamin Luedtke, City
Council Office; Russ Weeks, City Council Office; Cindy Gust-Jensen, City Council Office; Matt
Dahl, Real Estate Services; Dan Rupp, Real Estate Services; Mike Akerlow, Housing and
Neighborhood Development, Mike Reberg, Community and Neighborhoods; Nole
Walkingshaw, Community and Neighborhoods; John Vuyk, City Finance Department; and
Marybeth Thompson, City Finance Department.
The Board discussed the acquisition/disposition of real property and attorney client matters that
are privileged pursuant to Utah Code.
There being no further business, Chairperson Adams called for a motion to exit the closed
meeting. Director Luke made a motion to exit the closed meeting and Director Mendenhall
seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously
approved and the closed meeting was adjourned at 2:30 pm.
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.
This document along with the digital recording constitute the official minutes of the
Redevelopment Agency of Salt Lake City Board of Directors meeting held October 18, 2016.
The being no further business the meeting was adjourned at 6:45 PM.
Lisa R. Adams, Chairperson
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