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09/16/2003 - Minutes (2) PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, SEPTEMBER 16, 2003 The City Council of Salt Lake City, Utah, met in a Work Session on Tuesday, September 16, 2003 at 5:30 p.m. in Room 326, City County Building, 451 South State Street. In Attendance: Council Members Carlton Christensen, Van Turner, Eric Jergensen, Nancy Saxton, Jill Remington Love, Dave Buhler and Dale Lambert. Also in Attendance: Cindy Gust-Jenson, Council Executive Director; Mayor Ross C. "Rocky" Anderson; Rocky Fluhart, Chief Administrative Officer; Edwin Rutan, City Attorney; Michael Sears, Council Budget and Policy Analyst; Gary Mumford, Council Deputy Director/Senior Legislative Auditor; Lehua Weaver, Council Constituent Liaison; Sylvia Jones, Council Research and Policy Analyst/Constituent Liaison; Russell Weeks, Council Policy Analyst; Steve Fawcett, Deputy Director of Management Services; Louis Zunguze, Planning Director; Simarjir Gill, City Prosecutor; Alison Weyher, Director of Community and Economic Development; Luann Clark; Director of Housing and Neighborhood Development; David Oka, Redevelopment Agency Executive Director; Valda Tarbet, Redevelopment Agency Deputy Director; and Chris Meeker, Chief Deputy Recorder. Council Chair Christensen presided at and conducted the meeting. The meeting was called to order at 5:30 p.m. #1. REPORT OF THE EXECUTIVE DIRECTOR, INCLUDING REVIEW OF COUNCIL INFORMATION ITEMS AND ANNOUNCEMENTS. Ms. Gust-Jenson referred to a list titled Salt Lake City Council Gateway/Downtown fact-finding. She said small group meetings had been setup with Urban Land Institute (ULI) representatives and David Wilcox, Economist. She said interests, concerns and requests could be shared at the meetings. She said on Thursday ULI would give an hour presentation. She said a dialogue could be held at this time. She asked if because this was a lunchtime meeting if pizza could be brought in. All Council Members were in favor of pizza. Ms. Gust-Jenson said the 5:30 Thursday meeting would be televised. She said the meeting should start on time. She reviewed the lineup of speakers and their order. A discussion was held regarding the order of speakers and the time allotted to them. A discussion was held regarding the number of questions to ask. Ms. Gust-Jenson asked if the Council wanted the petitioner to speak or follow- up in writing. All Council Members were in favor of following up in writing. Councilmember Christensen suggested questions by Council Members be asked in order of Council District and then by rotation. Ms. Gust-Jenson asked Council Members what they might want in the City Newsletter that was sent with water bills. She said Councilmember Saxton had some suggestions. See file M 03-5 for announcements. #2. RECEIVE A BRIEFING REGARDING A LOAN FROM THE SMALL BUSINESS REVOLVING LOAN FUND TO L-3 COMMUNICATIONS. View Attachment Gary Mumford and Alison Weyher briefed the Council. Ms. Weyher said the Attorney's Office had advised her that City loans were not in compliance with State Statute 10-8-2 (3) . She said the L-3 loan met state requirements. She said in May the Council approved new guidelines for both the revolving loan fund and the private activity bond fund. She said the guidelines justified the allocation of resources to the business community. She said the L-3 loan complied in several ways. She said the 03 - 1 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, SEPTEMBER 16, 2003 proposal was to make the loan to property owners. She said the loan would allow L-3 to expand in their present location and keep jobs in the City. Ms. Weyher said in 2004 the area would be a Community Development Block Grant (CDBG) neighborhood. She said an economic impact analysis had been done. She said currently direct employment was 1,700, indirect employment including suppliers and support staff was 3,422. She said the value of these jobs was $835,564, 000 and would increase in the future. Councilmember Saxton said she was concerned the loan was with the property owner for improvements. She said these improvements were not permanent. She said guidelines for loans should be for more permanent uses. Councilmember Lambert asked about guidelines for private activity bonds. He asked if the L-3 project fit the guidelines. Ms. Wehyer said the L-3 loan had timing issues and needed to be finished by November. She said a private activity bond process took longer. She said the offer was a best effort offer. She said the loan was for five, years was 0% interest, and was fully secured by the borrower. Councilmember Christensen said Councilmember Jergensen had recused himself because the business he represented could have potential business opportunities with L-3. #3. RECEIVE A BRIEFING FROM THE PLANNING DIVISION AND THE REDEVELOPMENT AGENCY REGARDING A REQUEST FROM GATEWAY ASSOCIATES TO ALLOW DEPARTMENT STORES IN THE GATEWAY. View Attachment David Oka, Valda Tarbet, Alison Weyher, Louis Zunguze, Ed Rutan, Joel Paterson and Russell Weeks briefed the Council. Councilmember Christensen said he had requested an opinion from the Attorney' s Office regarding a potential conflict of interest he might have with regard to his employer. He said the Attorney' s Office said based on City ordinance he did not have a conflict of interest. Councilmember Lambert asked if there was any practical way to re-zone the Gateway area so a new large business could reside in the Gateway. Mr. Zunguze said distinguishing between an existing use in one location and a use proposing to move somewhere would not be easy. Councilmember Lambert asked if an agreement could be used as a tool. Ms. Tarbet said a legal agreement could be used. Councilmember Lambert said the Master Plan and zoning prohibited large department stores in the Gateway. He asked if the Master Plan and zoning were in place prior to the initiation of the Gateway project or if it was developed in conjunction with the Gateway project. Mr. Paterson said the zoning ordinance was adopted in 1998 prior to the Gateway project. He said it was understood that Union Pacific would sell the rail- yard behind the depot and the Master Plan considered what types of uses might be appropriate. He said the Gateway Master plan specifically called the area the Gateway sub-district and the sub district participated in large-scale uses. Mr. Paterson said department stores were excluded because of policies in the Master Plan which stated that the Gateway should be secondary and supportive to Main Street and the Central Business District (CBD) . Councilmember Lambert asked if understandings were reached in the process with respect to large retail department stores. Ms. Tarbet said the concern was relocated users. She said there was a financial penalty to move off Main Street. She said discussion regarding large retailers took place during the Master Plan effort, coinciding with the project area creation. 03 - 2 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, SEPTEMBER 16, 2003 Councilmember Lambert asked if circumstances had changed to compel the City to change the policy of large retail stores locating in the Gateway. He asked what the circumstances were. Ms. Weyher said a variety of changes had occurred since the adoption of the master plan. She said Nordstrom' s had been unable to negotiate a new lease with the Cross Roads Mall. She said they had announced they would leave the City. She said retailing had changed because many large box discount stores were branching into the department store category. She said retail was continually evolving. She said mall ownership had also changed and the owner planned to change Cross Roads Mall and ZCMI Mall into a super mall with housing, office and retail space. She said land use, ownership, tenant patterns had changed. Mayor Anderson said Nordstrom had the option to stay in the Main Street area when negotiation with the Boyer Company over the amendment with the RDA took place. He said owners of the Cross Roads Mall at the time were in agreement but never negotiated with Nordstrom' s. He said the Cross Roads Mall had been negotiating with the Church of Jesus Christ of Latter Day Saints (LDS Church) . He said the Church was now contemplating a different position. He said because of the new plan for major reconfiguration of the block there would be an interim where Nordstrom could not continue business. He said he had asked if operation of the business could be suspended for a period of time. He said the response from Nordstrom's was that the employee base of 300 people would not wait for 2 years and they would have to leave Salt Lake City. Councilmember Buhler said it was clear that Gateway zoning did not allow department stores. He referred to a memo from the Planning Division to the City Council regarding department stores. Councilmember Buhler said some of the City's long- standing policies needed to be changed. He said with the mall ownership changing, new circumstances were created. A discussion was held regarding Nordstrom's and changes that had taken place. Councilmember Buhler asked about the penalties in place at the time the Gateway was developed. He asked if a business moved from Trolley Square or Main Street to Gateway would the public subsidy from the tax increment be reduced. Ms. Tarbet said the penalty applied if the store opened prior to November 2, 2005. She said there was no penalty for opening after that date. She said the penalty could be as much as 80% of the reimbursement. A discussion was held regarding what the penalty would be for Nordstrom's to move. Councilmember Jergensen asked what the economic changes were. Mr. Paterson said an analysis by the Planning Division had been given to the Planning Commission. He said the analysis looked at several scenarios. A discussion was held regarding the Planning Commission' s findings. Mr. Zunguze said the Commission found nothing compelling enough to change the policy. Councilmember Jergensen asked what the differences were between urban planning issues and economic issues. Ms. Weyher said before 1995 the Planning Commission had the ability to consider economic hardship and impacts. She said in 1995 that was removed from the zoning ordinance. Mr. Zunguze said one challenge was the current definition of a department store. He said a better reflection for investors and developers with regard to the City' s Master Plans was needed. A discussion was held regarding urban planning issues which had changed since the zoning of Gateway. Mr. Zunguze said one of the base changes was the large big box stores wanting to locate in Gateway. Councilmember Jergensen asked if the Administration recommended changing the master plan and zoning recognizing that the scenario of four years prior had changed based 03 - 3 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, SEPTEMBER 16, 2003 upon the existence of the Gateway. Ms. Weyher said retail was continually changing and as uses evolved the City needed to re-visit where certain uses were permitted. A discussion was held regarding Gallenson' s location in the Gateway and the definition of a department store. Mr. Paterson said a department store had to have 100,000 square feet or larger to be classified as a department store. Councilmember Saxton asked how long it would take for a new master plan for the City. Mr. Zunguze said it was a big undertaking and would take approximately a year. A discussion was held regarding the process of a new master plan. Councilmember Turner asked about residential units on 500 West with regard to big box stores. Mr. Paterson said the GMU zone required that 500 of all new buildings along 200 West between North Temple and 200 South be residential. He said the Planning Commission could determine another use to be appropriate. A discussion was held regarding the complexity of the issue. A discussion was held regarding five reimbursement programs the Gateway Associates were participating in. Ms. Tarbet said the same programs were available to other property owners in the area. She said there was not reimbursement for parking for retail. #4. HOLD A DISCUSSION REGARDING THE TRAFFIC CALMING PROGRAM. View Attachment (See Unfinished Business Item F-5 of the Regular City Council meeting) #5. RECEIVE A BRIEFING REGARDING PROPOSED TEMPORARY ZONING REGULATIONS FOR SEXUALLY ORIENTED BUSINESSES IN CERTAIN ZONING DISTRICTS. (See Unfinished Business Item F-7 of the Regular City Council meeting) The meeting adjourned at 10:21 p.m. cm 03 - 4