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05/04/2021 - Meeting MaterialsBoard of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY AGENDA May 4,2021 Tuesday 2:00 PM This meeting will be an electronic meeting pursuant to the Salt Lake City Emergency Proclamation. SLCRDA.com This is a discussion among RDA Board Directors and select presenters.The public is welcome to listen, unless otherwise specified as a public comment period.Items scheduled may be moved and /or discussed during a different portion of the Meeting based on circumstance or availability of speakers.Item start times and durations are approximate and are subject to change at the Chair’s discretion. Generated:16:03:47 This meeting will be an electronic meeting pursuant to the Chair’s determination: I,Ana Valdemoros,the chair of the Board of the Redevelopment Agency,hereby determined that conducting the Board of the Redevelopment Agency meeting at an anchor location presents a substantial risk to the health and safety of those who may be present at the anchor location.The World Health Organization,the President of the United States,the Governor of Utah,the Salt Lake County Health Department,Salt Lake County Mayor,and the Mayor of Salt Lake City have all recognized a global pandemic exists related to the new strain of the coronavirus,SARS-CoV-2.Due to the state of emergency caused by the global pandemic,I find that conducting a meeting at an anchor location under the current state of public health emergency constitutes a substantial risk to the health and safety of those who may be present at the location. For these reasons,the Redevelopment Agency Meeting will not have a physical location at the City and County Building and all attendees will connect remotely. Members of the public are encouraged to participate in meetings.We want to make sure everyone interested in the RDA meetings can still access the meetings how they feel most comfortable.If you are interested in watching the RDA meetings,they are available on the following platforms: •Facebook Live:www.facebook.com/slcCouncil/ •YouTube:www.youtube.com/slclivemeetings •Web Agenda:www.slc.gov/council/agendas/ •SLCtv Channel 17 Live:www.slctv.com/livestream/SLCtv-Live/2 If you are interested in participating during the general comment period,you may do so through the Webex platform.To learn how to connect through Webex,or if you need call-in phone options,please visit our website or call us at 801-535-7607 to learn more. As always,if you would like to provide feedback or comment,please call us or send us an email: •24-Hour comment line:801-535-7654 •council.comments@slcgov.com More info and resources can be found at:www.slc.gov/council/contact-us/ Upcoming meetings and meeting information can be found here:www.slc.gov/council/agendas/We welcome and encourage your comments!We have Council staff monitoring inboxes and voicemail,as always,to receive and share your comments with Board Members.All agenda-related and general comments received in the Council office are shared with the Board Members and added to the public meeting record.View comments by visiting the Council Virtual Meeting Comments page. A.Comments: 1.General Comments to the Board ~2:00 p.m. 5 min The RDA Board of Directors will receive public comments regarding Redevelopment Agency business in the following formats: 1.Written comments submitted to RDA offices,451 South State Street,Suite 118,P.O. Box 145455,Salt Lake City,UT.84114-5455. 2.Comments to the RDA Board of Directors.(Comments are taken on any item not scheduled for a public Hearing,as well as on any other RDA Business.Comments are limited to two minutes.) B.Public Hearing -individuals may speak to the Board once per public hearing topic for two minutes,however written comments are always accepted: NONE. C.Redevelopment Agency Business -The RDA Board of Directors will receive information and/or hold discussions and/or take action on: 1.Motion:Meeting Remotely Without an Anchor Location ~2:05 p.m. 5 min. The Board will consider a motion to ratify the determination that the Board will continue to meet remotely and without an anchor location under HB5002. 2.Resolution:Loan to Colony B LLC for Affordable Housing Development at Approximately 228 West 1300 South ~2:10 p.m. 20 min. The Board will receive a briefing about,and will consider approving,a loan to Colony B LLC for an affordable housing development at approximately 228 West 1300 South.The project will contain 140 residential units with 106 units affordable to households earning 50%of the area median income (AMI)and below for a minimum of 50 years. 3.Resolution:Fiscal Year 2021-22 Affordable Housing Development Funding Priorities ~2:30 p.m. 30 min. The Board will receive a briefing about,and will consider adopting,a resolution that would adopt housing funding priorities for Fiscal Year 2021-22.The proposed funding priorities for the upcoming fiscal year will provide policy direction for RDA staff on affordable housing developments eligible for subsidies.The Board will discuss the total funding amount of housing dedicated to affordable housing developments,and the allocation of this amount among different program categories,on May 18,2021. 4.Report and Announcements from the Executive Director TENTATIVE 5 min. Report of the Executive Director,including a review of information items, announcements,and scheduling items.The Board of Directors may give feedback or policy input. 5.Report and Announcements from RDA Staff TENTATIVE 5 min. 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; •Project Milestones; •Staff Updates;and •Scheduling Items. D.Written Briefings –the following briefings are informational in nature and require no action of the Board.Additional information can be provided to the Board upon request: 1.Informational:Redevelopment Agency Semi-Annual Property Report The Board will receive a written briefing of all Tier 1 and Tier 2 properties owned by the RDA,as per the Land Disposition Policy.The April 16,2021 report includes the description,address,parcel ID,size,zoning and tier category of each property.In addition,the report details approximate acquisition date,current category of disposition, interim use and proposed permanent use for each property. E.Consent –the following items are listed for consideration by the Board and can be discussed individually upon request.A motion to approve the consent agenda is approving all of the following items: NONE. F.Tentative Closed Session The Board will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: 1.discussion of the character,professional competence,or physical or mental health of an individual; 2.strategy sessions to discuss pending or reasonably imminent litigation; 3.strategy sessions to discuss the purchase,exchange,or lease of real property: (i)disclose the appraisal or estimated value of the property under consideration;or (ii)prevent the public body from completing the transaction on the best possible terms; 4.strategy sessions to discuss the sale of real property,including any form of a water right or water shares,if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration; or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale;and< (iii)the terms of the sale are publicly disclosed before the public body approves the sale 5.discussion regarding deployment of security personnel,devices,or systems;and 6.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. G.Adjournment CERTIFICATE OF POSTING On or before 5:00 p.m.on _____________________,the undersigned,duly appointed City Recorder,does hereby certify that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda,including but not limited to adoption,rejection,amendment,addition of conditions and variations of options discussed. People with disabilities may make requests for reasonable accommodation,which may include alternate formats,interpreters,and other auxiliary aids and services.Please make requests at least two business days in advance.To make a request,please contact the City Council Office at council.comments@slcgov.com, 801-535-7600,or relay service 711. May 4, 2021 As Chair of the Board of Directors of the Redevelopment Agency, I hereby determine that conducting the Redevelopment Agency meeting at an anchor location presents a substantial risk to the health and safety of those who may be present at the anchor location. The World Health Organization, the President of the United States, the Governor of Utah, the Salt Lake County Health Department, Salt Lake County Mayor, and the Mayor of Salt Lake City have all recognized a global pandemic exists related to the new strain of the coronavirus, SARS- CoV-2. Due to the state of emergency caused by the global pandemic, I find that conducting a meeting at an anchor location under the current state of public health emergency constitutes a substantial risk to the health and safety of those who may be present at the location. Sincerely, Ana Valdemoros Chair, Board of Directors of the Redevelopment Agency Item C2 MOTION SHEET THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM:Allison Rowland Budget & Policy Analyst DATE:May 04, 2021 RE: RESOLUTION: LOAN TO COLONY B, LLC, FOR AN AFFORDABLE HOUSING DEVELOPMENT AT APPROXIMATELY 228 WEST 1300 SOUTH MOTION 1 – APPROVE THE RESOLUTION I move that the Board adopt the resolution to approve a loan of $1,340,000 to Colony B, LLC, for an affordable housing project at approximately 228 West 1300 South. MOTION 2 – NOT APPROVE THE RESOLUTION I move the Board not adopt the resolution to approve a loan of $1,340,000 to Colony B, LLC, for an affordable housing project at approximately 228 West 1300 South, and move on to the next item. CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM:Allison Rowland Budget & Policy Analyst DATE:May 4, 2021 RE: RESOLUTION: LOAN TO COLONY B, LLC, FOR AN AFFORDABLE HOUSING DEVELOPMENT AT APPROXIMATELY 228 WEST 1300 SOUTH ISSUE-AT-A-GLANCE The Board is asked to consider a $1.3 million loan request from Colony B, LLC, to help fund a $21.0 million mixed-income affordable housing project at approximately 228 West 1300 South. This project would provide approximately 140 residential units, of which 106 would be deed-restricted as affordable for 50 years. The units would be a mix of studios (each approximately 324 square feet) and one-bedroom apartments (each about 520 square feet), with rents for the affordable units set between 25% AMI and 50% AMI. Eleven units will be initially available for young people aging out of foster care, and the developers intend to continue to seek young people in this situation to the extent possible in the future through a partnership with the VOA and their youth resource center. In addition, 15 units will accommodate people with long-term mobility challenges. The developer, Colony B, LLC, is a joint venture between the Neighborhood Nonprofit Housing Corporation (NNHC, also known as Neighborhood Housing Solutions) and Defy CoLabs, LLC, which is based in Bountiful. The proposed loan’s interest rate would be 1.2%, with a term of 16 years and a 40-year amortization period. The City would be in second position for repayment. The project would break ground in July 2021, with occupancy and lease-up beginning in late 2022 and early 2023. The project aligns with five goals listed in Growing SLC: A 5-Year Housing Plan. The Housing Trust Fund Advisory Board unanimously recommended approval of this loan as presented in the transmittal at their April 7, 2021 meeting. Goal of the briefing: Discuss and consider approving a $1,340,000 loan to Colony B, LLC, for an affordable housing project at approximately 228 West 1300 South. Item Schedule: Briefing: May 4, 2021 Set Date: N/A Public Hearing: N/A Potential Action: May 18, 2021 Page | 2 ADDITIONAL INFORMATION A. Project Deed-Restricted Apartments: Types and Affordability Levels Studio One- Bedroom 25% AMI 4 1 39% AMI 16 1 45% AMI 60 3 50% AMI 19 2 TOTAL 99 7 B. Funding Gap The $1.3 million loan is intended to cover a funding gap created by increased construction costs, as well as a drop in the value of Utah’s LIHTC tax credits since they were awarded last September. The drop from $0.99 to $0.96 would account for about $300,000, so the balance of the loan is presumably requested to cover construction cost increases. C. Proposed Interest Rate Reduction The base interest rate for the Housing Development Loan Program (HDLP) is set at 3%. Proximity to the Ballpark Station Trax line would allow for a reduction of -0.25%, and another -0.25% was awarded for affordability, reducing the rate to 2.50%. [Council staff note: This differs from the information in the text of the revised transmittal, which was sent on April 28, 2021. However, the resolution was updated to reflect an additional interest rate reduction of -0.25% for affordability.] The developers have requested the rate be reduced to 1.2% because the senior lender’s required debt coverage ratio (DCR) is 1.15. HDLP’s minimum DCR is 1.1. RDA staff recommends this reduction be approved by the Board, which is permitted by program policy on a case-by-case basis when required by senior lenders. “In this case, RDA staff recommends approval of this reduced interest rate – though not below the HDTF Policy’s 1% threshold – as the Project has a high number of deeply affordable units, is ready to break ground this summer, has secured 9% Low Income Housing Tax Credits and the applicant is a housing nonprofit that will make hard repayments to the RDA with a balloon payment at the end of the 16-year loan.” D. Source of Funding FY20 HDTF transfer to RDA $2,590,000 Diamond Rail Loan - $1,000,000 Wasatch Cmty. Gardens Loan - $250,000 Colony B Loan - $1,340,000 FY20 HDTF Balance $0 POLICY QUESTION 1. While this project accomplishes several goals in Growing SLC: A 5-Year Housing Plan, the Board may wish to ask the Administration how future investments can incentivize projects with affordable family-sized units (2+ bedrooms). HOUSING DEVELOPMENT TRUST FUND (HDTF) LOAN REQUEST COLONY B MULTI -FAMILY HOUSING RDA BOARD MEETING –MAY 4, 2021 •Through the 2019-20 budget process, $2.59 million in sales tax funding was transferred to the RDA for the HDTF •Purpose is to provide low-cost financial assistance to incentivize development/preservation of affordable housing HOUSING DEVELOPMENT TRUST FUND (HDTF) REQUESTED ACTION Consider approving a resolution authorizing a loan of $1,340,000 to Colony B LLC for an affordable multi-family housing project located at approximately 228 W. 1300 South •Applicant: Colony B LLC –joint venture between Neighborhood Housing Solutions and Defy CoLabs •5-story apartment building with 140 units –106 affordable to households earning 50% AMI and below for a minimum of 50 years •$351/$379 per month at 25% AMI; $736/$792 per month at 50% AMI •324-520 square feet •15 units to accommodate individuals with long-term mobility issues •11 to support youth aging out of foster care 1300 South Colony B Colony B Colony B FINANCIAL OVERVIEW *Primary loan terms from Rocky Mountain CRC include 4.496% interest rate, hard repayment, 16 -year term, 40-year amortization. SOURCES: Enterprise Green Energy Rebates $168,064 1% Federal LIHTC Equity Investor $9,599,040 46% State Equity Investor $701,930 3% Rocky Mountain CRC Perm. Loan $8,238,773 39% SLC HDTF $1,340,000 6% Olene Walker Housing Loan Fund $1,000,000 5% TOTAL SOURCES $21,047,807 100% USES: Land $3,700,000 18% Site Work $545,280 3% Hard Costs $11,469,097 54% Architectural and Engineering Fees $415,845 2% Additional Soft Costs $112,210 1% Contractor Fee $577,848 3% Developer Fee $1,275,062 6% Financing Expenses $1,004,965 5% Syndication Costs $67,500 .32% Contingency*$1,475,000 7% Reserves $405,000 2% TOTAL USES $21,047,807 100% ABILITY TO REPAY DEBT •Project is projected to generate positive cash flow for the entire 16-year investor period and maintain a DCR of 1.15. This falls within HDTF policy, which requires a 1.1 DCR •Project has immediate need for financial assistance and can break ground within 3 months of application submittal Amount:$1,340,000 Interest Rate:1.2% -.25% reductions granted per program guidelines due to project’s proximity to a TRAX Line *Asking for additional 1.3% reduction to meet senior lender’s 1.15 DCR requirement Term:16 years Amortization:40 years Disbursement:Loan proceeds shall be disbursed through construction draws. Repayment:Annual hard repayments beginning at the date of project stabilization, estimated to be Q1 of 2023 Security:Deed of trust on property that may be subordinate to senior financing. Affordable Housing Covenant:A restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for 50 years (50% AMI & below). LOAN TERMS •Encourage a mix of income in individual projects and neighborhoods. •Create a net increase in affordable housing units while: o Avoiding displacement of existing affordable housing. o Retaining and expanding the diversity of AMI and innovative housing types. •Keep publicly-funded housing projects affordable as long as possible. •Provide a spectrum of housing options for people of all backgrounds and incomes. •Include affordable housing in transit-oriented developments because access to public transit increases access to opportunities. Moderate increases in density should be encouraged along transit corridors. GUIDING PRINCIPALS FOR EVALUATING & APPROPRIATING CITY FUNDS TO HOUSING DEVELOPMENTS: The Salt Lake City Council will support and fund projects that… MOTIONS 1.Motion 1: I move that the Board adopt the resolution to approve a loan of $1,340,000 to Colony B LLC, for an affordable housing project at approximately 228 W. 1300 South 2.Motion 1: I move that the Board not adopt the resolution to approve a loan of $1,340,000 to Colony B LLC, for an affordable housing project at approximately 228 W. 1300 South, and move on to the next item. REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: April 15, 2021 PREPARED BY: Lauren Parisi, RDA Project Manager RE: Consideration of $1,340,000 loan to Colony B LLC for an affordable housing development to be located at approximately 228 West 1300 South REQUESTED ACTION: Consider approval of resolution authorizing $1,340,000 loan to Colony B LLC for an affordable housing development located at approximately 228 West 1300 South POLICY ITEM: Affordable Housing BUDGET IMPACTS: $1,340,000 from Funding Our Future housing funds EXECUTIVE SUMMARY: Colony B LLC is requesting a $1,340,000 loan to accommodate the construction of a multi-family development (“Project”) at approximately 228 W. 1300 South. The Project will contain 140 residential units, with 106 units affordable to households earning 50% o f the area median income (“AMI”) and below for a minimum of 50 years. HOUSING TRUST FUND ADVISORY BOARD RECOMMENDATION: The Housing Trust Fund Advisory Board (“HTFAB”) reviewed this request at their meeting on April 7, 2021. The Board recommended approval of the $1,340,000 loan with the terms as proposed and included in Attachment A: Resolution and Term Sheet, including a reduced interest rate of 1.2%. ANALYSIS & ISSUES: Additional information on the Project and loan request is as follows: I. PROJECT OVERVIEW The proposed Colony B apartment project (“Project”) will be a primarily affordable housing development located at 228 W. 1300 South on a vacant piece of land. The Project will contain 140 residential units, with 106 units affordable to households earning 50% of the area median income (“AMI”) and below for a minimum of 50 years. The Project will initially lease to eleven young people aging out of foster care and include fifteen Type A ADA units to accommodate individuals with long-term mobility issues. The affordable unit breakdown is as follows: • 4 studios at 25% AMI ($351/month)* • 1 one-bedroom at 25% AMI ($379/month) • 16 studios at 39% AMI ($566/month) • 1 one-bedroom at 39% AMI ($610/month) • 60 studios at 45% AMI ($659/month) • 3 one-bedrooms at 45% AMI ($709/month) • 19 studios at 50% AMI ($736/month) • 2 one-bedrooms at 50% AMI ($792/month) • 34 market-rate units ($950-$1,200/month) *All rental rates reflect 2020 HUD data The studios or micro units will be approximately 324 square feet and the one-bedrooms will be approximately 520 square feet in size. Resident amenities will include a gym, indoor bicycle storage and community lounges. The Project abuts the 1300 South TRAX stop to the east and the 300 West commercial corridor to the west. If the funding request is approved, the Project is anticipated to break ground in July of 2021. This falls in line with the Housing Development Trust Fund Policy’s prioritization of projects that can break ground within three months of submittal. Construction will take approximately sixteen months, with the start of occupancy and lease-up beginning in Q4 2022 to Q1 2023. II. APPLICANT INFORMATION The organizations associated with this project are the Neighborhood Nonprofit Housing Corporation (NNHC), also known as Neighborhood Housing Solutions, acting as the applicant, sponsor, developer and owner. Defy I, LLC will work in partnership with NNHC, acting as the developer, owner. Together these organizations formed the joint venture partnership, Colony B LLC. The team has extensive experience in real estate finance, affordable housing projects, multi-family and mixed-use development projects as well as housing counseling. NNHC and Defy I, LLC are, “dedicated to housing for the greater good and [their] mission is to create quality affordable housing opportunities, strengthen and enhance communities, and provide households with the skills to become self-sufficient.” III. FINANCIAL OVERVIEW An overview of the Project’s sources and uses is provided below. SOURCES: Enterprise Green Energy Rebates $168,064 1% Federal LIHTC Equity Investor $9,599,040 46% State Equity Investor $701,930 3% Rocky Mountain CRC Perm. Loan $8,238,773 39% SLC HDTF $1,340,000 6% Olene Walker Housing Loan Fund $1,000,000 5% TOTAL SOURCES $21,047,807 100% *Note: The Project was awarded $1,000,000 in LIHTC. With a syndication rate of $.96, this equates to $9,599,040 in equity for the Project. USES: Land $3,700,000 18% Site Work $545,280 3% Hard Costs $11,469,097 54% 2 Architectural and Engineering Fees $415,845 2% Additional Soft Costs $112,210 1% Contractor Fee $577,848 3% Developer Fee $1,275,062 6% Financing Expenses $1,004,965 5% Syndication Costs $67,500 .32% Contingency* $1,475,000 7% Reserves $405,000 2% TOTAL USES $21,047,807 100% *Note: Contingency 13% of hard costs IV. PROPOSED TERMS The Applicant is requesting a Housing Development Trust Fund (“HDTF”) loan to fill a financial gap that remains on the Project. The applicant has explained that the gap has been caused by “a reduction in tax credit value as well as elevated construction co sts. The national CRA rules have changed over the last 12 months which has caused a decrease in value to Utah tax credits. Our pricing at application in September was at $0.99 and it is now at $0.96, which lowered our equity investment. We are also experiencing elevated construction costs which are currently at all-time highs across the industry. Incomes have not kept pace with these increases in costs and thus revenues are not sufficient to cover those cost increases.” The funding request aligns with HDTF policy, with proposed terms as follows: - Term: – 16 years - Amortization: 40-year period - Interest rate: requesting 1.2%, calculated as follows: Base Rate 3% Qualifying Interest Rate Reductions Transit Proximity* -0.25% Interest Rate w/ Reductions 2.75% *Note: To be eligible for the Transit Proximity interest rate reduction, the Project shall be located within 1/2 mile of a transit station. The Project is within ½ mile of the Ballpar k Station. Policy Waiver - Further Interest Rate Reduction: The applicant has requested that the interest rate be reduced further to 1.2% due to the senior lender’s debt coverage ratio (“DCR”) requirement of 1.15. An interest rate from the RDA higher than 1.2%, would decrease the DCR below the 1.15 threshold. The Housing Development Trust Fund Policy states that exceptions from the standard loan terms may be recommended on a case -by-case basis based on requirements of senior lenders. In this case, RDA staff recommends approval of this reduced interest rate – though not below the HDTF Policy’s 1% threshold – as the Project has a high number of deeply affordable units (15 of those reserved for individuals with long-term mobility issues), is ready to break ground this summer, has secured 9% Low Income Housing Tax Credits and the applicant is a housing nonprofit that will make hard repayments to the RDA with a balloon payment at the end of the 16-year loan term. - Repayment type: Annual hard repayments, with principal and interest payments beginning at the date of project stabilization, estimated to be Q1 of 2023. 3 Simple interest shall accrue on all loan proceeds disbursed commencing on the date of disbursement at a rate of 1.2%. -Security: A deed of trust on the property that may be subordinated to senior financing. -Affordable Housing Covenant: A restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for 50 years. -Disbursement: Loan proceeds shall be disbursed through construction draws. Refer to Attachment A: Resolution and Term Sheet for additional detail on proposed loan terms and conditions. V.PROJECT’S ABILITY TO REPAY DEBT The Project is projected to generate positive cash flow for the entire 16-year investor period and maintain a DCR of 1.15. This falls within HDTF policy, which requires a 1.1 DCR. VI.POLICY ALIGNMENT - GROWING SLC: A 5-YEAR HOUSING PLAN This Project aligns with Growing SLC: A 5-Year Housing Plan as follows: 1.Encourage a mix of income in individual projects and neighborhoods. 2.Create a net increase in affordable housing units while: a.Avoiding displacement of existing affordable housing. b.Retaining and expanding the diversity of AMI and innovative housing types. 3.Keep publicly-funded housing projects affordable as long as possible. 4.Provide a spectrum of housing options for people of all backgrounds and incomes. 5.Include affordable housing in transit-oriented developments because access to public transit increases access to opportunities. Moderate increases in density should be encouraged along transit corridors. VII.FUNDS AVAILABILITY Through the 2019-20 budget process, $2,590,000 in sales tax funding was transferred to the RDA for the HDTF. $1,000,000 was allocated to the Diamond Rail apartment project and $250,000 was allocated to the Wasatch Community Gardens housing project, leaving $1,340,000 to accommodate this request. ATTACHMENTS: A.Resolution and Term Sheet B.Aerial View of Site C.Site Plan D.Elevations 4 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Loan to Colony B LLC RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO COLONY B LLC FOR AN AFFORDABLE HOUSING DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 228 WEST 1300 SOUTH WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act. WHEREAS, in the FY 2020 budget, the Salt Lake City Council (“Council”) allocated $2,590,000 in Funding Our Future revenues to the RDA to be provided as loans for the development of affordable housing. WHEREAS, pursuant to legislative intent provided by the Council when the FY 2020 budget was adopted, the Council established a housing trust fund within the RDA and any application that comes to Salt Lake City will be handled by the RDA in a manner that is consistent with the current rules and purposes guiding the Salt Lake City Housing Trust Fund and the Housing Trust Fund Advisory Board as established by Salt Lake City code Chapter 2.80. WHEREAS, Colony B LLC, whose majority member is Neighborhood Nonprofit Housing Corporation, (the “Developer”) will construct an affordable housing development which consists of the new construction of a five-story structure with approximately 140 residential units, 106 of which are deed restricted as affordable housing for 50-years (the “Project”) on 0.5 acres of property located at approximately 228 West 1300 South (the “Property”). WHEREAS, the Developer has applied for a loan from the RDA to assist with construction costs for development of the Project. WHEREAS, on April 7, 2021, the Housing Trust Fund Advisory Board (“HTFAB”) reviewed the loan application and approved the attached set of terms (the “Term Sheet”). WHEREAS, the RDA staff recommends approval of the Term Sheet for a loan to the Developer, as borrower, for the Project. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City (the “Board”) that it approves the loan outlined in the Term Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. The Board authorizes the Executive Director to negotiate and execute the loan agreement and any other relevant documents consistent with the Term Sheet, and incorporating such other terms and agreements as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day of May, 2021. _________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Kimberly K. Chytraus Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder April 13, 2021 EXHIBIT A: APPROVED LOAN TERM SHEET Colony B LLC BORROWER Colony B LLC, a Utah limited liability company PROPERTY 0.5 acres of land located at approximately 288 W. 1300 South PROJECT DESCRIPTION & AFFORDABILITY The project consists of the new construction of a five-story apartment building with one hundred and forty (140) residential units total and one hundred and six units (106) that will be deed restricted for 50 years as follows: • 4 studios at 25% AMI • 1 one-bedroom at 25% AMI • 16 studios at 39% AMI • 1 one-bedroom at 39% AMI • 60 studios at 45% AMI • 3 one-bedrooms at 45% AMI • 19 studios at 50% AMI • 2 one-bedrooms at 50% AMI PROPOSED LOAN TERMS • Amount: $1,340,000 • Interest Rate: 1.2% Base Rate 3% Qualifying Interest Rate Reductions Transit Proximity -0.25% Additional Reduction to meet Senior Lender Requirements -1.55% Final Interest Rate 1.2% • Term: 16 years • Amortization Period: 40 years • Repayment: Annual hard repayments, with principal and interest payments due the date of project stabilization, estimated to be Q1 of 2023. Simple interest shall accrue on all loan proceeds disbursed commencing on the date of disbursement at a rate of 1.2%. All interest accrued through project stabilization shall be added to the principal of the loan as capitalized interest, thereby triggering the capitalization date. Interest shall be amortized from the date of capitalization over a 40-year period. The first payment shall be due 30 days after the capitalization date. • Affordable Housing Covenant: A restriction shall be recorded against the property that requires continued use of the 106 units as affordable housing for 50 years. • Disbursement: Loan proceeds shall be disbursed through construction draws. COLLATERAL AND GUARANTEES • Security: A deed of trust on the property that may be subordinated to senior financing. CONDITIONS FOR LOAN CLOSING Prior to loan closing, the Applicant will complete the following: • RDA approves all terms of the loan. • Secure and provide evidence of sufficient sources of project financing. Sources of financing must equal the total project cost. • Obtain all required City approvals. • Execute loan documents (e.g. promissory notes, loan agreements, security documents) as deemed necessary by the RDA and its legal counsel. • Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of the loan, and the legality, sufficiency, and the form and substance of all documents that are deemed reasonably necessary for the loan transaction. • Provide evidence of insurance in such amounts and with such coverage as deemed necessary by the RDA for the Property. • Procure and deliver to RDA at Closing a satisfactory binding commitment on ALTA extended coverage form for a mortgagee’s (deed of trust) title insurance policy, or equivalent, in the amount of the Loan. • Such other terms as recommended by the RDA’s legal counsel and staff. ATTACHMENT B: AERIAL VIEW OF SITE 3 STANDARDPARKING STALLSNOT IN SCOPE9 STANDARD PARKING STALLSNOT IN SCOPE10 STANDARD PARKING STALLSNOT IN SCOPE12/3/2020NORTHATTACHMENT C: SITE PLAN COLONY B MICRO APARTMENTS SALT LAKE CITY 10/02/2020 BID SET ATTACHMENT D: ELEVATIONS MAIN LEVEL 100' - 0" LEVEL 02 110' - 1" LEVEL 03 120' - 2" 05 A6.01 01 A6.02 7' - 4 5/8" 108' - 11 1/2" 09 A4.10 MAIN LEVEL 100' - 0" LEVEL 02 110' - 1" LEVEL 03 120' - 2" MAIN LEVEL 100' - 0" LEVEL 02 110' - 1" LEVEL 03 120' - 2" E 05 A6.01 01 A6.02 A5.02/04A5.02/05E A5.02/03A3.11/0605 A6.01 01 A6.02 E /A5.03 011' - 4"1' - 0"1' - 6" JSF LLC KAYSVILLE, UT 84037 ARCHITECT 1576 WILLOW DR REVISION DATE SHEET TITLE SHEET NO. ISSUE COLONY B212 W 1300 S STAMP SALT LAKE CITY, UTMICRO APARTMENTSSILVERPEAK ENGINEERING LAYTON, UT 84041 STRUCTURAL 177 E. ANTELOPE DR. #B LANDCURVE SALT LAKE CITY, UT 84106 LANDSCAPE 2846 BEVERLY ST MCCLOY ENGINEERING SANDY, UT 84092 MECHANICAL 2057 EAST 10140 SOUTH SPECTRUM ENGINEERING SALT LAKE CITY, UT 84111 ELECTRICAL 3324 S STATE #400 PEPG CONSULTING SANDY, UT 84070 CIVIL 9270 S 300 W SUITE A-2 10/02/2020 A5.02 SOUTH ENTRY + PERSPECTIVES 01/21/2021 BID SET 08 SOUTHEAST VIEW 09 SOUTHWEST VIEW 10 NORTHEAST VIEW 11 NORTHWEST VIEW 1/4" = 1'-0"03 SOUTH ENTRY - NORTH 1/4" = 1'-0"04 SOUTH ENTRY - EAST 1/4" = 1'-0"05 SOUTH ENTRY - WEST07SOUTH ENTRY APPROACH 1/4" = 1'-0"02 SOUTH ENTRY - ENLARGED RCP 1/4" = 1'-0"01 SOUTH ENTRY - ENLARGED PLAN NO. DESCRIPTION DATE MAIN LEVEL100' - 0"LEVEL 02110' - 1"LEVEL 03120' - 2"LEVEL 04130' - 3"LEVEL 05140' - 4"ROOF150' - 5"16' - 5"10' - 1"10' - 1"10' - 1"10' - 1"10' - 1"WINDOW SHROUDTYP.DOOR SHROUDHORZ. RAILING SYSTEM01A6.0102A6.0104A6.0103A6.0105A6.0101A6.0202A6.0203A6.026' - 0"6' - 4"1' - 1 1/2"BB AABB AABB AABB AACCCCBB AABB AABB AABB AA CCCCCCCCBB AABB AABB AABB AA CCCCAAAAAABB AABB AABB AABB AACCAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAADDEEDDEEDDEEDDEEDDDDDDDDDDDDCC10' - 8 1/2"/A5.020301A6.01SIM02A6.01SIM3214156' - 5"151' - 11"03A0.03IAFSD10' - 1"FSD9' - 3 1/4"FSDFSD10' - 7"FDCLINE OF GRADE PLANEALLOWABLE BUILDING HEIGHT56' - 11"MAIN LEVEL100' - 0"LEVEL 02110' - 1"LEVEL 03120' - 2"LEVEL 04130' - 3"LEVEL 05140' - 4"ROOF150' - 5"3' - 9 1/4"10' - 1"10' - 1"10' - 1"10' - 1"10' - 1"04A6.0205A6.0201A6.03GGGGGGGGCDBEA156' - 5"151' - 11"03A6.02SIMIBICFSD20' - 8"FSD16' - 8"FSDLINE OF GRADE PLANEALLOWABLE BUILDING HEIGHT56' - 11"ELEVATION GENERAL NOTES1. REFER TO ELECTRICAL PLANS FOR EXTERIOR LIGHTING LOCATIONS2. SLOPE EXTERIOR FINISH GRADE AWAY FROM PERIMETER OF BUILDING FOR PROPER DRAINAGE, TYP.3. REFER TO SHEETS A3.50 FOR DOOR TYPES AND SCHEDULES.4. REFER TO SHEET A5.06 FOR WINDOW TYPES5. REFER TO MECHANICAL DRAWINGS FOR GAS METER LOCATIONS AND CONFIGURATIONS6. REFER TO ELECTRICAL DRAWINGS FOR ELECTRICAL METER LOCATIONS AND CONFIGURATIONS7. ALL EXTERIOR RAILINGS TO BE 42" HIGH, BALLASTERS @ 4 O.C. PER CODE, REFER TO DETAIL 01/A7.038. REFER TO SHEETS A7.10 THRU A7.16 FOR BALCONY ENLARGED PLANS AND DETAILS9. REFER TO SHEET A7.11 AND A7.14 FOR TYPICAL EXTERIOR BALCONY GUARDRAIL DETAILS.ELEVATION FINISH MATERIALSALUMINUM STOREFRONT SYSTEMALUMINUM MULLIONSCOLOR: ANNODIZED ALUM.MANUFACTURER: MANKO OR EQUALBALCONY SOFFIT/FASCIAMANUFACTURER: FIRESTONE - UC-501FINISH: KYNAR 500 / HYLAR 5000 FLUOROCARBON STEELCOLOR: TO BE APPROVED BY ARCHITECTSTYLE: FLUSH ALUMINUM PANELSRAILINGSHORIZ CABLING SYSTEMSHIPLAP METAL PANEL MANUFACTURER: BRIDGERSTEELPRODUCT: SHIPLAP WALL, 12" FLUSH WALL PANEL, CONCEALED FASTENERCOLOR: WHITE (EXACT COLOR TO BE SELECTED BY ARCHITECT)CEMENT PLASTERMANUFACTURER: MASTERWALLPRODUCT: CEMPLASTERCOLOR: WHITE (EXACT COLOR TO BE SELECTED BY ARCHITECT)TEXTURE: FINE SAND 1.0 WHITECEMENT PLASTERMANUFACTURER: MASTER WALLPRODUCT: CEMPLASTERCOLOR: GREY (EXACT COLOR TO BE SELECTED BY ARCHITECT)TEXTURE: FINE SAND 1.0 WHITE VERTICAL WOOD CLADDING MANUFACTURER: THERMORYPRODUCT: BENCHMARK WHITE ASH CLADDING, 1x4 T/G FINISH: UNOILEDSNAP BATTEN METAL PANEL MANUFACTURER: BRIDGERSTEELPRODUCT: SNAP BATTEN PANEL, 22 GA, WIDTHS VARY - REF TO ELEVSCOLOR: GREY (EXACT COLOR TO BE SELECTED BY ARCHITECT)EXTRUDED ALUMINUM FINMANUFACTURER: COLOR: WHITENOTE: REF TO ARCH DETAILSVISION GLAZING (GL-01)MANUFACTURER: NBI GLASSTYPE: 1" O.A. CLEAR LOW-E, SNX 62/27 LOW-ESPANDREL GLAZING (GL-02)MANUFACTURER: NBI GLASSTYPE: 1" O.A. CLEAR LOW-E, SNX 62/27 LOW-EMAIN LEVEL100' - 0"LEVEL 02110' - 1"LEVEL 03120' - 2"LEVEL 04130' - 3"LEVEL 05140' - 4"ROOF150' - 5"TYP16' - 5"10' - 1" 10' - 1" 10' - 1" 10' - 1" 10' - 1"WINDOW SHROUDHORZ. RAILING SYSTEM03A6.0304A6.03AABBAABBAABBAABBAABBAABBAABBAABBAABBAABBAABBAABBAABBAABBAABBAA AA AA AA AA AA AA AAAA AA AA AA AA AA AA AAAA AA AA AA AA AA AA AAAA AA AA AA AA AA AA AAAA AA AA AA AA AA AA AA02A6.02SIM03A6.02SIM60'-0" MAX PER ZONING CODE52' - 9 1/2"3214156' - 5"152' - 9 1/2"02A6.02SIM03A6.02SIM03A0.03IDIEIGIF09A4.10IDIDIDALLOWABLE BUILDING HEIGHT56' - 11"LINE OF GRADE PLANEMAIN LEVEL100' - 0"LEVEL 02110' - 1"LEVEL 03120' - 2"LEVEL 04130' - 3"LEVEL 05140' - 4"ROOF150' - 5"10' - 1"10' - 1"10' - 1"10' - 1"10' - 1"HORZ. RAILINGSYSTEM03A6.02SIM04A6.02GGGGGGGGCDBEA151' - 11"156' - 5"02A6.03IB45' - 6"1' - 6"ICALLOWABLE BUILDING HEIGHT56' - 11"LINE OF GRADE PLANEJSF LLCKAYSVILLE, UT 84037ARCHITECT1576 WILLOW DRREVISIONDATESHEET TITLESHEET NO.ISSUECOLONY B212 W 1300 S STAMPSALT LAKE CITY, UTMICRO APARTMENTSSILVERPEAK ENGINEERINGLAYTON, UT 84041STRUCTURAL177 E. ANTELOPE DR. #BLANDCURVESALT LAKE CITY, UT 84106LANDSCAPE2846 BEVERLY STMCCLOY ENGINEERINGSANDY, UT 84092MECHANICAL2057 EAST 10140 SOUTHSPECTRUM ENGINEERINGSALT LAKE CITY, UT 84111ELECTRICAL3324 S STATE #400PEPG CONSULTINGSANDY, UT 84070CIVIL9270 S 300 W SUITE A-210/02/2020A5.01EXTERIORELEVATIONS01/21/2021BID SET3/32" = 1'-0"01EXTERIOR ELEVATION - SOUTH FACADE3/32" = 1'-0"03EXTERIOR ELEVATION - EAST FACADE3/32" = 1'-0"02EXTERIOR ELEVATION - NORTH FACADE3/32" = 1'-0"04EXTERIOR ELEVATION - WEST FACADENO. DESCRIPTION DATE1 ADDENDUM 01 01/18/2020 Item C3 MOTION SHEET THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM:Allison Rowland Budget & Policy Analyst DATE:May 04, 2021 RE: RESOLUTION: FISCAL YEAR 2021-22 AFFORDABLE HOUSING DEVELOPMENT FUNDING PRIORITIES MOTION 1 – APPROVE THE RESOLUTION I move that the Board adopt the resolution entitled Fiscal Year 2021-22 Affordable Housing Priorities. MOTION 2 – NOT APPROVE THE RESOLUTION I move the Board not adopt the resolution entitled Fiscal Year 2021-22 Affordable Housing Priorities, and move on to the next item. CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM:Allison Rowland Budget & Policy Analyst DATE:May 4, 2021 RE: RESOLUTION: FISCAL YEAR 2021-22 AFFORDABLE HOUSING DEVELOPMENT FUNDING PRIORITIES ISSUE-AT-A-GLANCE In accordance with the Housing Funds Allocation Policy and Housing Development Loan Program (HDLP) Policy adopted by the Board in recent months, RDA staff prepared a draft Fiscal Year 2022 Affordable Housing Priorities and Strategies document, which includes a proposed resolution and additional budget ideas. On May 4, the Board will discuss the funding Priorities in this transmittal. These are listed on page 5/12, and are intended as policy direction for RDA staff as they consider applications for affordable housing projects. In future years the annual Priorities will be transmitted around March for consideration well before budget discussions begin. Both the proposed total funding dedicated to affordable housing projects, and the allocation of this amount among different program categories are subject to Board approval as part of the RDA’s annual budget process. The Board will have an opportunity to discuss these in more detail on May 18. Staff note: In the RDA document, these program categories are referred to as Expenses in the Funding Overview (page 4/12), and Tactics elsewhere (pages 6/12 and 7/12). Goal of the briefing: Discuss and consider adopting the Resolution entitled Fiscal Year 2022 Affordable Housing Priorities. Item Schedule: Briefing: May 4, 2021 Set Date: N/A Public Hearing: N/A Potential Action: May 18, 2021 Page | 2 ADDITIONAL INFORMATION A. Proposed FY22 Priorities The transmittal lists thirteen proposed FY22 Priorities based on RDA staff’s assessment of current needs and Board objectives. According to the Housing Development Loan Program Policy adopted in March 2021, these Priorities should align with adopted Board and City Council policies, including the Housing Plan, Project Area Plans, RDA Guiding Framework, and RDA Housing Allocation Funds Policy. The short titles for the Priorities on page 5/12 are: 1. Family Housing 2. Target Populations 3. Neighborhood Safety 4. Missing Middle and Unique Housing Types 5. Homeownership 6. Sustainability 7. Expand Opportunity 8. Neighborhood Impact 9. Transportation Opportunities 10. Historic Preservation /Adaptive Re-use 11. Commercial Vitality 12. Public Art 13. Fund Leveraging Funding Priority Incentives: Projects would be eligible to reduce their base interest rate if they meet the adopted funding priorities as established annually, according to the RDA Housing Allocation Funds Policy. For each funding priority met, the project would be eligible to receive a 0.5% reduction to the Base Interest Rate, down to a minimum of 1%. The Board may wish to consider the advantages and disadvantages of naming 13 Priorities in the FY22 Strategy which all would carry equal weight for incentives: o Would the Board be interested in differentiating among these Priorities, for example, defining some as Required and others as Optional? o Since the Priorities are tied to potential interest rate reductions, would the Board like to consider some option for weighting their relative importance, for example, assigning 0.50% reductions to some, and 0.25% to others deemed less important? B. Proposed FY22 Tactics The proposed funding amounts listed for each Tactic are subject to change by the Board during the May 18 RDA budget discussion, depending in part on whether it chooses to dedicate more or less of the total budget to housing. For the purposes of this Priorities discussion, Board members may wish to indicate whether they agree with the share of the nearly $10.8 million total that is proposed for each Tactic. As presented in the RDA document, staff estimates that leveraging these funds with private investment would result in $150 million in total project costs, providing 348 new affordable units, including 116 at under 50% AMI. Proposed Amounts and Shares for FY22 RDA Housing Tactics Amount Share Housing Development Loan Program - Citywide NOFA $5,406,400 52% - Emergency Gap $1,000,000 10% - High Opportunity $2,700,000 26% Strategic Acquisition $1,000,000 10% ADU Pilot Program $280,455 3% TOTAL $10,386,855 100% Page | 3 The $10.4 million represents estimated FY22 revenue combined with housing funds remaining from FY21. As adopted in the Housing Development Loan Program Policy, the funding sources for each of the Tactics discussed below are described here: 1. Tactic 1: Housing Development Loan Program $9,106,400 from Primary, Secondary and HDLP Funds from FY22 and FY21 For HDLP funds, RDA staff proposes to release three notices of funding availability (NOFAs) in FY22: - A competitive $5.4 million Citywide NOFA for projects located within Salt Lake City, with a minimum of at least $394,000 (4%) reserved for projects located in RDA project areas. The target would be 135 new affordable units at about $40,000 each. RDA staff would issue the NOFA in July with a fixed submission date. If funds were left over after that competition, due to a lack of demand or viable projects, the RDA would issue a second competitive, time-limited NOFA in early 2022. - A $1 million Emergency Gap Financing NOFA available an open-ended basis for projects with a majority of units at or below 60% AMI which encounter an unexpected financial gap due to unforeseen circumstances. This would support 25 units at $40,000 each. - A High Opportunity NOFA would be released on an open-ended basis for new projects in designated “high opportunity” census tracts. This would be funded with the remaining $2.7 million reserved for this purpose in 2018, and support 45 units at $60,000 each. The Board may wish to request additional information on this proposed use of HDLP, including: o Would these amounts be fungible among the three categories if unexpected opportunities arise? What would be the process for making any changes? o How would the City’s equity goals be furthered through these proposed programs? 2. Tactic 2: Strategic Acquisition $1,000,000 from Primary Housing Fund These funds are proposed to be used for buying strategic properties in existing RDA project areas, including distressed motels or other properties, consistent with RDA and City goals. The Board may wish to request additional information on this proposed Tactic, including: o Is this amount sufficient for the proposed purpose? (This question also could be considered during the RDA budget discussion on May 18.) o How would the City’s equity goals be furthered through this proposal? Page | 4 3. Tactic 3: ADU Program $280,455 ($250,000 from NWQ funds and $30,455 from remaining FY21 Secondary Funds) These funds would be used to start a pilot accessory dwelling unit (ADU) program west of I-15 and targeted to the 9Line Community Reinvestment Area (CRA). The program would aim to foster new ADUs in the area as an affordable housing option by providing financial support for the construction of two new units, at a price of approximately $95,000 each. The program would require homeowners to rent their ADUs at a rate that is affordable to low and moderate income households. The Board may wish to request additional information on this proposed pilot program such as: o Would constructing just two ADUs be enough to help inform judgments about whether to continue this program in the future? o How would the program be structured, for example, is this envisioned as a revolving loan fund? How would the RDA monitor and impose the affordability requirement? o How would the application process work? Would only single-family homeowners be eligible, or could owner-occupied multifamily units also qualify? Would applicants be expected to provide some cash for construction ($95,000 seems too low to complete an ADU)? o How would the City’s equity goals be furthered through this proposed program? If both ADUs are built for $95,000 each, how would the remaining $90,455 allocated to this Tactic be used? (This question also could be considered during the RDA budget discussion on May 18.) The Board may wish to consider whether the pilot program would be more feasible if all of the Secondary funds for FY22, which are to be used in existing CRAs, were dedicated to the ADU program instead. This would result in $674,455. (This question also could be better considered during the RDA budget discussion on May 18.) POLICY QUESTIONS 1. The Board may wish to ask about the plan for dealing with any surpluses or shortfalls in actual revenue compared to the revenue estimates. Will the RDA staff return to the Board for authorization to make changes to the amounts allocated to each Tactic, for example, through budget amendments? 2. The transmittal states that the FY22 Strategy addresses all three Goals and the majority of the Objectives in the Growing SLC Housing Plan (Appendix A, page 7). The Board may wish to ask for additional information on how the RDA staff assesses this alignment. Specifically, how would the RDA: o Prioritize the development of new affordable housing with an emphasis on households earning 40% AMI and below. (Note: In the Target Population Priority, the threshold listed is 50% and below.) o Work with landlords to both improve their housing stock and rent to very low-income households. o Implement Lifecycle Housing principles in neighborhoods throughout the city. 3. The Board may wish to ask for an update from RDA staff as it relates to guiding policies specifically for the Northwest Quadrant affordable housing increment, including how it may address ideas raised by Board members in the discussion late in 2020. REDEVELOPMENT AGENCY OF SLC FY 22 HOUSING STRATEGY & FUNDING PRIORITIES RDA BOARD OF DIRECTORS MEETING –MAY 5, 2021 HOUSING BUDGET & ADMINISTRATION WORKFLOW REVENUES & EXPENSES *Note: FY 22 Budget is based on preliminary information. The official draft budget will be transmitted through the Mayor’s Recommended Budget Book. **Note: The Prior Year Budget Available includes an estimate of revolving funds within the housing accounts that will not be expended prior to the end of FY 21. Subject to change. FUNDING PRIORITIES (1 of 2) 1.FAMILY HOUSING: Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. 2.TARGET POPULATIONS: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. 3.NEIGHBORHOOD SAFETY: Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and stabilize communities. 4.MISSING MIDDLE & UNIQUE HOUSING TYPES: Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. 5.HOMEOWNERSHIP: Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. 6.SUSTAINABILITY: Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. FUNDING PRIORITIES (2 of 2) 7.EXPAND OPPORTUNITY: Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. 8.NEIGHBORHOOD IMPACT: Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices. 9.TRANSPORTATION OPPORTUNITIES: Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options. 10.HISTORIC PRESERVATION/ADAPTIVE REUSE: Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. 11.COMMERCIAL VITALITY: Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. 12.PUBLIC ART: Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. 13.FUND LEVERAGING: Maximize impact by leveraging funds with the private market and with other available public resources. *Note: These are preliminary estimates based off a percentage of affordable units per project and a standard development cost per unit. ACTIVITIES (1 of 2) 1.HOUSING DEVELOPMENT LOAN PROGRAM The HDLP provides a centralized application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. In FY22, the RDA proposes to three notices of funding availability through the HDLP. ACTIVITIES (2 of 2) 2.STRATEGIC SITE ACQUISITION To be utilized for the purchase of strategic properties located within RDA project areas that may included distressed motels, properties that are located at target locations, and other properties that align with the RDA project area goals and City’s objectives. 3.ACCESSORY DWELLING UNIT PROGRAM To be utilized for a pilot accessory dwelling unit (ADU) program targeted to the 9 Line CRA. ADUs are gaining momentum across the country as part of the solution to address the affordable housing crisis. By establishing a pilot ADU program, the RDA will mitigate some of the barriers for homeowners to construct ADUs including cost and lack of available financing. BOARD’S ROLE 1.Adoption of Housing Polices •The Housing Allocation Funds Policy was adopted in February of 2021 •The Housing Development Loan Program Policy was adopted in March 2021 2.Adoption of the RDA’s annual budget, including revenues and expenses for housing 3.Adoption of Annual Housing Funding Priorities as proposed through the Annual Housing Development Funding Strategy QUESTIONS? SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: April 16, 2021 PREPARED BY: Tammy Hunsaker RE: FY 2021-22 Affordable Housing Development Funding Strategy and Priorities REQUESTED ACTION: Briefing on the FY 2021-22 Affordable Housing Development Funding Strategy and consider approval of a resolution establishing annual Funding Priorities. POLICY ITEM: Affordable housing. BUDGET IMPACTS: N/A. EXECUTIVE SUMMARY: The Board of Directors (“Board”) of the Redevelopment Agency of Salt Lake City (“RDA”) recently adopted two policies to facilitate the funding and development of affordable housing within City boundaries. First, the RDA Housing Allocations Funds Policy (“Funds Policy”) establishes guidelines for allocating and directing resources for the development and preservation of housing by funding source. Second, the Housing Development Loan Program Policy (“HDLP Policy”) creates a program that centralizes the application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. Both policies contemplate that annually, prior to the annual budget process, the RDA shall present to the Board an Affordable Housing Development Funding Strategy (“Funding Strategy”). The Funding Strategy shall include a projected amount of revenue to be allocated to housing, proposed funding allocations for housing activities, and proposed funding priorities (“Funding Priorities”) for the upcoming fiscal year. This will allow the RDA to be flexible to address current needs, leverage current opportunities, coordinate with other city resources, and allow funding priorities to align with evolving plans and policies. Pursuant to the Funds Policy, the Board shall consider the Funding Strategy as part of the annual budget adoption process. Additionally, the HDLP Policy provides that the annual Funding Priorities, as proposed through the Funding Strategy, shall be subject to approval by the Board. Accordingly, the Funding Strategy is provided as Attachment A for the Board’s review, and the FY 2021-22 Affordable Housing Funding Priorities resolution is provided as Attachment B for the Board’s consideration. These documents are intended to provide supplemental information and policy direction on the RDA’s budget regarding housing activities and not replace the RDA’s annual budget process. PREVIOUS BOARD ACTION: • March 2021: The Board adopted the Housing Development Loan Program Policy. • February 2021: The Board adopted the RDA Housing Allocation Funds Policy was briefed by RDA Staff on a draft Housing Development Loan Program Policy. • December 2020: RDA Staff presented a draft RDA Housing Allocation Funds Policy Resolution and briefed RAC and the Board on the forthcoming draft Housing Development Loan Program Policy. • July 2020: RDA Staff proposed two draft frameworks that were envisioned to be expanded into legislative policies that would carry out the Board’s direction and intent to 1) direct the allocation of resources for affordable housing development and preservation and 2) consolidate loan administration for the development of affordable housing into a single location. • January - February 2020: RDA Staff briefed RAC and the Board on the Draft Salt Lake City Housing Implementation Framework, a framework that outlines the various roles and responsibilities across City divisions and departments for the implementation of housing. • June 2019 and June 2020: The Board and Salt Lake City Council allocated sales tax funds to the RDA with legislative intent of consolidating loan administration for the development of affordable housing into a single location. • May 2018 to March 2019: RDA Staff presented a series of briefings to RAC and the Board regarding housing, including on topics such as historical practices and funding allocations, statutory requirements, and interdepartmental coordination. • December 2017: The Board adopted a motion directing RDA Staff to draft an RDA Housing Allocation Policy. ATTACHMENTS: A. FY 2021-22 Affordable Housing Development Funding Strategy B. FY 2021-22 Affordable Housing Funding Priorities Resolution The Fiscal Year 2022 (“FY 22”) Salt Lake City Affordable Housing Funding Strategy outlines the amount of revenues available for affordable housing development activities and identifies funding priorities and activities for the expenditure of funds. In addition to expanding the supply of affordable housing, revenues shall be leveraged to elevate real estate development projects that have profound impacts on people, particularly low-income and vulnerable populations, in order to uplift others, create economic opportunities, improve health outcomes, and influence the physical and socioeconomic landscape of Salt Lake City. FY 2022 AFFORDABLE HOUSING FUNDING STRATEGY SALT LAKE CITY DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 2DRAFT: FOR DISCUSSION PURPOSES HOUSING REVENUES & EXPENSES: REVENUES EXPENSES FUND TOTAL HOUSING DEVELOPMENT LOAN PROGRAM ACQUISITION ADU PROGRAM NOTES FY 22 BUDGET* PRIMARY $1,498,627 $498,627 $1,000,000 SECONDARY $394,000 $394,000 Prioritized for RDA Areas NWQ (Inland Port)$250,000 $250,000 Prioritized for West of I-15 HOUSING DEV FUND $2,590,000 $2,590,000 SUBTOTAL $4,732,627 $3,482,627 $1,000,000 $250,000 PRIOR YEAR BUDGET AVAILABLE** PRIMARY $4,533,773 $4,533,773 High Opp $2,700,000 SECONDARY $30,455 $30,455 Prioritized for RDA Areas NWQ (Inland Port)$0 HOUSING DEV FUND $1,090,000 $1,090,000 SUBTOTAL $5,654,228 $5,623,773 $0 $30,455 TOTAL $10,386,855 $9,106,400 $1,000,000 $280,455 FUNDING OVERVIEW IMPACT TARGETS* 232 AFFORDABLE UNITS $10,386,855 TOTAL RDA FUNDS EXPENDED 10 DEVELOPMENT PROJECTS 116 50% AMI & BELOW UNITS 45 HIGH OPPORTUNITY AFFORDABLE UNITS 348 TOTAL UNITS $150,000,000 TOTAL PROJECT COSTS 1:15 LEVERAGE RDA FUNDS to TOTAL COST *Note: These are preliminary estimates based off of a percentage of affordable units per project and a standard development cost per unit. *Note: FY 22 Budget is based on preliminary information. The official draft budget will be transmitted through the Mayor’s Recommended Budget Book. **Note: The Prior Year Budget Available includes an estimate of revolving funds within the housing accounts that will not be expended prior to the end of FY 21. Subject to change.DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 3DRAFT: FOR DISCUSSION PURPOSES •FAMILY HOUSING: Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. Benchmark: Projects include significant amount (20% or more) of affordable 3 and 4-bedroom units. •TARGET POPULATIONS: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Benchmark: Projects include a significant amount (20% or more) of units targeted to the following populations: households earning 50% AMI and below; persons with disabilities; the elderly; and other populations at risk for homelessness due to their economic, health, or social circumstances. •NEIGHBORHOOD SAFETY: Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and stabilize communities. Benchmark: Projects will revitalize a property that is characterized by the State of Utah’s definition of a development impediment; and/or will redevelop a property that is significantly distressed or causing a nuisance AND is detrimental to the health, safety and welfare of the community. •MISSING MIDDLE & UNIQUE HOUSING TYPES: Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. Benchmark: Projects include significant amount (20% or more) of affordable units that are of a missing middle or unique housing type, including townhomes, rowhouses, fourplexes, duplexes, tiny homes, cottage developments, accessory dwelling units, and similar. •HOMEOWNERSHIP: Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. Benchmark: Projects include significant amount (20% or more) of units that are affordable homeownership. •SUSTAINABILITY: Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. Benchmark: Projects are built to be Zero Energy Ready or are certified through an industry-recognized sustainable building certification program. •EXPAND OPPORTUNITY: Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. Benchmark: Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an analysis of quality-of-life indicators. Refer to Appendix C: Opportunity Index. •NEIGHBORHOOD IMPACT: Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices. Benchmark: Projects shall be subject to an RDA design review process. •TRANSPORTATION OPPORTUNITIES: Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options. Benchmark: Projects meets TWO of the following standards: •Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/residents •Is a commercial project that includes employee shower, locker, and bicycle facilities •Is located within 1/3 mile walking distance of a TRAX station or S-Line station •Implements reduced parking strategies without negatively impacting the neighborhood •HISTORIC PRESERVATION/ADAPTIVE REUSE: Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. Benchmark: Developers shall work with the SLC Planning Division to identify appropriate methods to preserve, rehabilitate, or restore architecturally or historically significant properties, including those listed individually as local landmarks, located within local historic districts, and/or located within a District listed on the National Register of Historic Places; OR preserve or repurpose a building through the conversion of existing structures into new uses that contribute positively to its surrounding neighborhood. •COMMERCIAL VITALITY: Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. Benchmark: Projects are mixed-use and establish new services, amenities, or underrepresented business types in the neighborhood that the local community identifies as lacking and desires. •PUBLIC ART: Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. Benchmark: Projects provide publicly visible or accessible, original art that enriches the site and promotes City, and/or neighborhood identity or initiatives and raises awareness of community history, identity, cultures, or geography. •FUND LEVERAGING: Maximize impact by leveraging funds with the private market and with other available public resources. Benchmark: RDA funding shall provide a maximum of 10% of the total project cost. FUNDING PRIORITIES DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 4DRAFT: FOR DISCUSSION PURPOSES The HDLP provides a centralized application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. In FY22, the RDA will release three notices of funding availability through the HDLP. A competitive Citywide NOFA of $5,319,402 will be available for projects located within Salt Lake City municipal boundaries, with a minimum of $394,000 prioritized for projects located in RDA project areas. An Emergency Gap Financing NOFA of $1,000,000 will be released on an open-ended basis for projects, with a majority of units at or below 60% AMI, that have an unexpected financial gap due to unforeseen circumstances. Finally, a High Opportunity NOFA will be released on an open-ended basis for projects located in designated High Opportunity census tracts - refer to Appendix C. BUDGET TARGETED IMPACTS NOFA TYPE TOTAL FUNDING / UNIT UNITS CITYWIDE*$5,406,400 $40,000 135 EMERGENCY GAP $1,000,000 $40,000 25 HIGH OPPORTUNITY $2,700,000 $60,000 45 TOTAL $9,106,400 205 * A minimum of $394,000 shall be prioritized projects located in RDA areas. To be utilized for the purchase of strategic properties located within RDA project areas that may included distressed motels, properties that are located at target locations, and other properties that align with the RDA project area goals and City’s objectives. Properties will be redeveloped to bring resources and projects together to amplify social impact and build communities of opportunity. BUDGET TARGETED IMPACTS FUNDING / UNIT UNITS $1,000,000 $40,000 25 TACTIC 1: HOUSING DEVELOPMENT LOAN PROGRAM TACTIC 2: STRATEGIC ACQUISITION TACTIC 3: ADU PROGRAM To be utilized for a pilot accessory dwelling unit (ADU) program targeted to the 9 Line CRA. ADUs are gaining momentum across the country as part of the solution to address the affordable housing crisis. By establishing a pilot ADU program, the RDA will mitigate some of the barriers for homeowners to construct ADUs including cost and lack of available financing. In addition to fostering the development of ADUs, the program will require homeowners to rent their ADU units at a rate that is affordable to low and moderate income households. BUDGET TARGETED IMPACTS FUNDING / UNIT UNITS $280,455 $95,000 2 TOTAL $280,455 2DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 5DRAFT: FOR DISCUSSION PURPOSES GOAL 1 INCREASE HOUSING OPTIONS: REFORM CITY PRACTICES TO PROMOTE A RESPONSIVE, AFFORDABLE, HIGH-OPPORTUNITY HOUSING MARKET Objective 1 Modernize land-use and zoning regulations to reflect the affordability needs of a growing, pioneering city Objective 2 Remove impediments in City processes to encourage housing development Objective 3 Lead in the construction of innovative housing solutions Objective 4 Provide residents, community advocates, business leaders, and elected officials with high quality data to drive decision- making GOAL 2 AFFORDABLE HOUSING: INCREASE HOUSING OPPORTUNITIES AND STABILIZATION FOR COST-BURDENED HOUSEHOLDS Objective 1 Prioritize the development of new affordable housing with an emphasis on households earning 40% AMI and below Objective 2 Pursue funding sources for affordable housing opportunities Objective 3 Stabilize very low-income renters Objective 4 Secure and preserve long-term affordability Objective 5 Work with landlords to both improve their housing stock and rent to very low-income households Objective 6 Increase home ownership opportunities GOAL 3 EQUITABLE & FAIR HOUSING: BUILD A MORE EQUITABLE CITY Objective 1 Eliminate incidences of housing discrimination in Salt Lake City Objective 2 Align resources to create Areas of Opportunity Objective 3 Implement Lifecycle Housing principles in neighborhoods throughout the city ALIGNMENT WITH GROWING SLC: A FIVE-YEAR HOUSING PLAN 2017-2021 The RDA Housing Strategy addresses all three of the Goals and the majority of the Objectives outlined in the Administration’s recommended housing plan. Growing SLC: A Five-Year Housing Plan 2017 - 2021 - Goals & Objectives FY22 HOUSING FUNDING STRATEGYAPPENDIX A: POLICY ALIGNMENT DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 6DRAFT: FOR DISCUSSION PURPOSES APPENDIX B: INCOME & RENTS 2021 Income Limits: Salt Lake County AMI Number of Persons in Family 1 2 3 4 5 6 7 8 40%$25,780 $29,500 $33,200 $36,875 $39,825 $42,775 $45,725 $48,675 50%$32,300 $36,900 $41,500 $46,100 $49,800 $53,500 $57,200 $60,900 60%$38,760 $44,280 $49,800 $55,320 $59,760 $64,200 $68,640 $73,080 80%$51,560 $59,000 $66,400 $73,750 $79,650 $85,550 $91,450 $97,350 Note: Based on data acquired from the U.S. Department of Housing and Urban Development’s (HUD’s) FY 2021 Income Limits Documentation System. 2020 Maximum Rents AMI Bedrooms Studio 1 2 3 4 5 40%$616 $660 $792 $914 $1,020 $1,125 50%$770 $825 $990 $1,143 $1,275 $1,406 60%$924 $990 $1,188 $1,371 $1,530 $1,688 80%$1,232 $1,320 $1,584 $1,829 $2,040 $2,251 Note: Fair Market Rents are HUD’s determination of the average rents in a particular area for each bedroom size. The FMRs are set each year based on the rental rates of unsubsidized units so that participants in HUD programs have equal access for affordable housing.DRAFT FY22 AFFORDABLE HOUSING FUNDING STRATEGY 7DRAFT: FOR DISCUSSION PURPOSES APPENDIX C: OPPORTUNITY INDEX AREAS OF OPPORTUNITY High opportunity areas are geographical locations within the city that provide conditions that expand a person’s likelihood for social mobility. These areas have been identified through an analysis of quality-of-life indicators, such as school proficiency, poverty, labor market engagement, housing stability, and job access. With these multiple indicators, a single composite, or standardized, score is calculated for each census tract. Scores may range from 1 to 10, with 1 indicating low opportunity and 10 indicating high opportunity. A census tract with a standardized score above that of the citywide average shall be designated as an Area of Opportunity. STANDARDIZED OPPORTUNITY INDEX BY CENSUS TRACT Note: Map is subject to change as new data/resources become available.DRAFT REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2021-22 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2021-22 WHEREAS, on February 9, 2021 the Board of Directors of the Redevelopment Agency of Salt Lake City (“Board”) confirmed approval of the Housing Funds Allocation Policy (“Funds Policy”) which establishes polices with respect to dedicating and directing resources for the development and preservation of housing by funding source (“Housing Funds”). WHEREAS, the Funds Policy provides that annually, prior to the annual budget process, the RDA shall present to the Board a Housing Development Funding Strategy (“Funding Strategy”). WHEREAS, the Funding Strategy shall include a projected amount of revenue to be allocated to the Housing Funds, proposed funding allocations for housing activities, and proposed funding priorities (“Funding Priorities”) for the upcoming fiscal year. WHEREAS, pursuant to the Funds Policy, the Board shall consider the Funding Strategy as part of the annual budget adoption process. WHEREAS, on March 23, 2021 the Board adopted the Housing Development Loan Program Policy (“HDLP Policy”) to create a program to centralize the application, underwriting, and approval process across all funding sources, providing a one-stop-shop for community partners to access resources for the development and preservation of affordable housing. WHEREAS, the HDLP Policy provides that the annual Funding Priorities, as proposed through the Funding Strategy, shall be subject to approval by the Board on an annual basis. WHEREAS, the Board desires to adopt Funding Priorities to direct resources for the development of affordable housing through the HDLP for fiscal year 2021-22. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, as follows: Fiscal Year 2021-22 Affordable Housing Funding Priorities 1. FAMILY HOUSING: Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. 2. TARGET POPULATIONS: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. 3. NEIGHBORHOOD SAFETY: Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and stabilize communities. 4. MISSING MIDDLE & UNIQUE HOUSING TYPES: Promote an array of scale of project types to diversify the City’s housing stock/forms and provide more affordable living options for residents. 5. HOMEOWNERSHIP: Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership. 6. SUSTAINABILITY: Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency. 7. EXPAND OPPORTUNITY: Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods. 8. NEIGHBORHOOD IMPACT: Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices. 9. TRANSPORTATION OPPORTUNITIES: Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options. 10. HISTORIC PRESERVATION/ADAPTIVE REUSE: Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods. 11. COMMERCIAL VITALITY: Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs. 12. PUBLIC ART: Promote cultural expression and add to the experience and value of the built environment through art that is publicly visible or accessible for all to experience. 13. FUND LEVERAGING: Maximize impact by leveraging funds with the private market and with other available public resources. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 2021. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder April 15, 2021 REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: April 16, 2021 PREPARED BY: Jim Sirrine RE: Redevelopment Agency Semi-Annual Property Report REQUESTED ACTION: None. Written Briefing EXECUTIVE SUMMARY: As directed in the Land Disposition Policy, the RDA provides the Board, not less than semi-annually per fiscal year, an inventory of all Tier 1 and Tier 2 properties. ANALYSIS & ISSUES: The attached report contains a current inventory of all RDA owned properties. The report includes the description, address, parcel ID, size, zoning, and tier category of each property. In addition, the report details the approximate acquisition date, current category of disposition, interim use, and proposed permanent use for each property. Notable changes since the last report include the following: • Eccles Theater and Ancillary Spaces was reduced by 0.1 acres due to the sale of the land under the Walker Center’s parking garage. The sold parcel of 3,111 square feet includes an easement to access the trash compactors and emergency generator used by the theater. • 255 South State was sold to Brinshore Development for a mixed use, multi-family housing development. • Parcels located at 14 and 18 South 600 West were exchanged with Salt Lake City for a similar property located at 662 West 100 South. • Property located at 258 West 500 North was quitclaimed to Community Housing Services- Capitol Villa LTD. The property transaction corrects property lines in Capitol Villa’s parking area from an earlier RDA project. • Salt Lake City quitclaimed the former Sugarhouse fire station and facilities maintenance building to the RDA to be incorporated into the Sugarmont development with the former DI site. ATTACHMENTS: May 2021 RDA Property Report Former D.I. + Sugar House Fire Station Semi-Annual Property Report | May 2021Description Assessor Address Parcel ID Zoning Tier Acquired Use Status Interim Use Proposed Reuse1Broadway Center (Parking Garage)Parking structure with retail spaces 251 S. Floral St. 16-06-154-048-0000 0.660.66D-1 T-2 1989 Permanent UseLeased to Broadway Center LimitedN/AEccles Theater, retail spaces, and plaza 16-06-105-064-0000 1.7Alley to Priority Dispatch and 111 16-06-105-065-0000 0.01Midblock walkway connecting Main St. to Regent St. and access to the Eccles Theater147 S. Main St. 16-06-105-009-0000 0.0816-06-152-072-0000 0.416-06-152-077-2000 3.49Parking Structure under Gallivan Center Plaza 49 E. Gallivan Ave. 16-06-152-077-6001 3.49Leased to Boyer-Block 57 Associates LTD16-06-152-079-6001 0.2716-06-152-079-2000 0.27Arena - SE section 15-01-127-017-2000 9.18Arena - SE section (underground) 15-01-127-017-2001 0.01Arena - SE section (underground) 15-01-127-017-6001 9.18Arena - NE Corner 15-01-127-018-6001 0.84Arena - NE Corner (underground) 15-01-127-018-2000 0.8416-06-309-001-0000 0.0116-06-309-002-0000 0.01Vacant land (former N. parking area of the NAC Drivers' Lounge)167 S. Regent St. 16-06-151-003-0000 0.03Vacant land (former NAC Drivers Lounge) 169 S. Regent St 16-06-151-004-0000 0.06Vacant land (former E. parking area of the NAC Drivers Lounge)167 S. Regent St. 16-06-151-018-0000 0.04Main St. retail spaces (Twisted Roots, Ray's Barber Shop)158 S. Main St. 15-01-229-070-0000 0.19Utah Theater and Main St. retail spaces (Southam Gallery, Becket & Robb)144 S. Main St. 15-01-229-068-0000 0.7TOTAL # of Project Properties: 7 # of Acres: 31.46 # of Parcels: 21131 S. Main St.2003-2014D-1 T-1 Permanent UseProject Area/Property CENTRAL BUSINESS DISTRICTN/AParking stalls leased to the State of UtahTheater events in partnership with County Center for the Arts and leased retail350 S. 200 E. D-1 T-2 1991 N/AT-1 2010 Active DispositionFour retail tenants and vacant historic theaterEntered into a Purchase Agreement with Hines Development.Regent St. at 200 S. St.D-1 T-1 2013 Active DispositionGallivan Center Plaza, Parking, and Retail (Block 57)D-1 T-1 1984-1991 Permanent Use87Land leased to Larry H. Miller Arena Group thru 2040N/A Permanent UseEntered into a Purchase Agreement with Dakota Pacific Regent, LLCUtah Theater and Retail Spaces (Block 69)D-1Acres/Total1.790.890.130.0220.057.922Eccles Theater and Ancillary Spaces239 S. Main St.228 S. State St.301 W. S. Temple365 W. S. TempleN/AN/ALand - Vivint Arena (Block 79)D-4 T-1 1989 Permanent UseRetailRetail spacesMetro Condos Parking (Block 53)Lower two levels (250 stalls) of an underground parking structure543Gallivan Center - plaza, event center, and amphitheaterEvent spaces, plaza, and walkwayRDA‐Owned Properties ‐ Page 1 of 4 Semi-Annual Property Report | May 2021Description Assessor Address Parcel ID Zoning Tier Acquired Use Status Interim Use Proposed ReuseProject Area/Property Acres/Total9Rio Grande Hotel, Block 62Rio Grande Hotel - Single room occupancy housing units428 W. 300 S. 15-01-179-012-0000 0.30.3D-3 T-2 2009 Permanent UseLeased to Home Inn Rio Grande, LLCN/A243-255 S. 600 W. 15-01-151-009-0000 0.5265 S. 600 W. 15-01-151-010-0000 0.88245 S. 600 W. 15-01-151-011-0000 0.11245 S. 600 W. 15-01-151-012-0000 0.26564-566 W. 300 S. 15-01-151-013-0000 0.13558-560 W. 300 S. 15-01-151-014-0000 0.13235 S. 600 W. 15-01-152-012-0000 0.11552 W. 300 S. 15-01-152-013-0000 0.13544 W. 300 S. 15-01-152-014-0000 0.13Vacant building (formally Serta mattress factory) 535 W. 300 S. 15-01-302-018-0000 0.615-01-153-010-0000 0.1915-01-153-011-0000 0.06Vacant land (formally owned by State of Utah) 519 W. 300 S. 15-01-153-006-0000 0.13540 W. 400 S. 15-01-302-017-0000 0.93346 S. 500 W. 15-01-302-021-0000 0.32336 S. 500 W. 15-01-302-022-0000 1.2515-01-302-019-0000 0.1615-01-302-020-0000 0.31Warehouse buildings 502 W. 300 S. 15-01-152-021-0000 1.65Paved parking lot area (formally Beehive Brick parking )250 S. 500 W. 15-01-152-025-0000 0.56Vacant land 233 S. 600 W. 15-01-151-005-0000 0.31Intermountain Furniture- N warehouse 235 S. 600 W. 15-01-151-008-0000 0.4916Sun Bar (Block 47)Vacant land 702 W. 200 S. 15-02-234-015-0000 0.310.31GMU T-2 2003 Use Study N/A To be determinedSingle family home (vacant) 42 S. 600 W. 15-01-104-004-0000 0.15 2015Vacant lot 662 W. 100 S. 15-01-103-020-0000 0.1 2021N/AStation Center Parcel 3Vacant land and blue warehouseD-3 T-1 2002 Use Study N/AStation Center Parcel 11011To be determinedResidence/Vacant Lots (Block 49)GMU T-2 Use Study N/AIncluded as part of the Salt Lake Central Station area planStation Center Parcel 6D-3 T-1 2008 Use StudyTo be determinedStation Center Parcel 5D-3 T-1 2010 Use StudyLeased to Sportswear Design Group, SLC "A Place For Your Stuff," Fill the Pot, and parking for Mac. FlatsTo be determinedStation Center Parcel 4Vacant land 336 S. 500 W. D-3 T-1 2002 Use Study N/ATo be determinedTo be determinedVacant land (formally Serta factory dock area) 535 W. 300 S.Use Study Temporary public art installation To be determinedD-3 T-1 2002 Use Study N/AVacant land and warehouse (former Intermountain Furniture Company)D-3 T-1 20081214151713DEPOT DISTRICTDEPOT DISTRICT (continued on next page)2.380.982.50.470.82.210.25Station Center Parcel 12 & Right of WaysRDA‐Owned Properties ‐ Page 2 of 4 Semi-Annual Property Report | May 2021Description Assessor Address Parcel ID Zoning Tier Acquired Use Status Interim Use Proposed ReuseProject Area/Property Acres/TotalHowa Storage Bays 648 W. 100 S. 15-01-103-022-0000 0.5Howa Gardens, NW 636 W. 100 S. 15-01-103-021-0000 0.37Howa Gardens, NE 624 W. 100 S. 15-01-104-013-0000 0.31Howa Gardens, SW 632 W. 100 S. 15-01-103-023-0000 0.34Howa Gardens, S 626 W. 100 S. 15-01-104-015-0000 0.08Howa Gardens, SE 622 W. 100 S. 15-01-104-014-0000 0.27Howa Offices, N 663 W. 100 S. 15-01-107-042-0000 0.25Howa Offices, S 663 W. 100 S. 15-01-107-041-0000 0.25Howa Yard 1 657 W. 100 S. 15-01-107-034-0000 0.2Howa Yard 2 655 W. 100 S. 15-01-107-035-0000 0.01Howa Yard 3 653 W. 100 S. 15-01-107-036-0000 0.16Howa Yard 4 651 W. 100 S. 15-01-107-037-0000 0.16Howa Yard 5 633 W. 100 S. 15-01-107-038-0000 0.34Howa Paint Shop 633 W. 100 S. 15-01-107-039-0000 0.19Howa Yard E 625-627 W. 100 S. 15-01-107-040-0000 0.22TOTAL # of Project Properties: 11 # of Acres: 13.85 # of Parcels: 4120Gale St., Block 24Vacant land (former Buker Properties) 901 S. Gale St. 15-12-255-001-0000 0.260.26D-2 T-1 2009 Active Disposition N/AUnder contract negotiations with the Bicycle CollectiveTOTAL # of Project Properties: 1 # of Acres: 0.26 # of Parcels: 121Overniter MotelFormer motel, lot, and single family house(all vacant)1500 West North Temple 08-34-476-017-0000 2.072.07TSA-MUEC-CT-1 2017 Active Disposition N/AEntered into a purchase agreement with Brinshore Development/HAME for a mixed use, multi-family development.TOTAL # of Project Properties: 1 # of Acres: 2.07 # of Parcels: 1Included as part of the Salt Lake Central Station area planT-2 2008Leased: gardens - Green Team job training; storage units - multiple tenantsHOWA Corporate (Block 48)GMU Use Study Leased to Utah Art AllianceIncluded as part of the Salt Lake Central Station area planHOWA Gardens and StorageGMU T-2 2008 Use Study1819DEPOT DISTRICT (continued)1.871.78GRANARY NORTH TEMPLERDA‐Owned Properties ‐ Page 3 of 4 Semi-Annual Property Report | May 2021Description Assessor Address Parcel ID Zoning Tier Acquired Use Status Interim Use Proposed ReuseProject Area/Property Acres/Total22Street Car Traction Power Substation SiteS-Line Facility1015 E. Sugarmont Dr. 16-20-205-021-0000 0.060.06R-1-5000 T-1 2012 Permanent Use S-Line Facility N/A23S-Line GreenwayS-Line/Parley's Trail Greenway 2211 S. 900 E 16-20-135-021-0000 0.040.04FB-SE T-1 2013 Permanent Use S-Line/Parley's Trail Greenway N/ARetail shopping center and parking (former DI) 2234 S. Highland Dr. 16-20-252-008-0000 0.85 CSHBD1 2012 N/AFormer Sugarhouse Fire Station (West) 1085 E. Simpson Ave. 16-20-252-001-0000 0.32 Temporary library locationFormer Sugarhouse Fire Station (East) 1085 E. Simpson Ave. 16-20-252-002-0000 0.14 Temporary library locationSLC Facilities Maint. Bldg1113 E. Simpson Ave. 16-20-252-003-0000 0.21 SLC FacilitiesEast Parking Area 1104 E. Sugarmont Dr. 16-20-252-005-0000 0.09 Temporary library parkingTOTAL # of Project Properties: 3 # of Acres: 1.71 # of Parcels: 725Marmalade DevelopmentMarmalade Lot 1 - Future Park 524 N. 300 W. 08-36-205-044-0000 0.560.56R-MU T-1 2005 Permanent Use N/A Future Park27524 N. Arctic Ct.Vacant Land 524 N. Arctic Ct. 08-36-206-011-0000 0.110.11SR-1A T-1 2015 Active Disposition N/ASingle family home. Preparing RFP for construction.TOTAL # of Project Properties: 2 # of Acres: 0.67 # of Parcels: 215-12-206-013-6000 0.115-12-206-013-2000 0.1Vacant land (formally A&E Generator, N. yard) 252 W. Montrose Ave. 15-12-206-015-6000 0.09Vacant land 254 W. Montrose Ave. 15-12-206-017-0000 0.115-12-206-016-6000 0.0915-12-206-016-2000 0.09Vacant land and storage building (formally DeVroom)753 S. 300 W. 15-12-207-001-0000 0.34244 W. 800 S. 15-12-207-012-0000 0.1252 W. Montrose Ave. 15-12-206-015-2000 0.09Vacant building (formally A&E Generator) 264 W. 800 S. 15-12-207-013-0000 0.84Vacant land (formally Zaxx Car Wash) 765 S. 300 W. 15-12-207-002-0000 0.22TOTAL # of Project Properties: 1 # of Acres: 2.16 # of Parcels: 11COMBINED TOTALS # of Project Properties: 26 # of Acres: 52.2 # of Parcels:84Undergoing fit study analysis for redevelopment.24Sugarmont PlazaUse Study2021T-1PL1.61Leased shop and storage to Bulldog Sheetmetal FabricationW. Montrose Ave.NA28RDA staff has completed due diligence and considering options and schedule for marketing the propertyVacant shop and apartment (formally T&G Upholstery)745 S. 300 W.Building (Bulldog Sheet Metal) 244-246 W. Montrose Ave.FBUN-2 T-2 2008 Use StudyVacant land2.16WEST CAPITOL HILLWEST TEMPLE GATEWAYSUGAR HOUSE RDA‐Owned Properties ‐ Page 4 of 4 PROPERTYPROFILEACTIVE DESCRIPTION Former drivers' lounge and parking area for Newspaper Agency Corporation (NAC) STATUS Active disposition INTERIM USE Vacant land PROPOSED REUSE In purchase agreement with Dakota Pacific Regent, LLC for hotel development Central Business District 3 total parcels .13 total acres D-1 zoning Tier 1 Acquired 2013 167-169 S. REGENT STREET State Street PROPERTYPROFILEACTIVE DESCRIPTION Inactive Utah Theater building with retail spaces fronting Main Street STATUS Active disposition INTERIM USE Four retail tenants PROPOSED REUSE In purchase agreement with Hines for largely market-rate residential tower with mid- block walkway Central Business District 2 parcels .89 total acres D-1 zoning Tier 1 Acquired 2010 144-158 S. MAIN STREET PROPERTYPROFILEACTIVE DESCRIPTION Former site of Buker Properties; Directly south of Fleet Block STATUS Active disposition INTERIM USE Vacant land PROPOSED REUSE RDA is negotiating development with non-profit entity Granary District Project Area 0.26 total acres D-2 zoning Tier 1 Acquired 2009 901 S. GALE STREET PROPERTYPROFILEACTIVE DESCRIPTION Former Overniter Motel buildings and lot; single- family home STATUS Active disposition INTERIM USE Vacant PROPOSED REUSE RDA has entered into a purchase agreement with developer for a mixed-use, multi-family development North Temple Project Area 2.07 acres TSA-MUEC-C zoning Tier 1 Acquired 2017 1500 W. NORTH TEMPLE PROPERTYPROFILEACTIVE DESCRIPTION Narrow lot south of historic single-family home renovated by Preservation Utah/RDA in 2018 STATUS Active disposition INTERIM USE Vacant PROPOSED REUSE New infill single-family home; Preparing RFP for construction West Capitol Hill Project Area .11 total acres SR-1A zoning Tier 1 Acquired 2015 524 N. ARCTIC COURT