03/23/2021 - Meeting MaterialsBoard of Directors of the
REDEVELOPMENT AGENCY OF
SALT LAKE CITY
AGENDA
March 23,2021 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:07:57:55
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:
1.Resolution:Amending the 9-Line Community Reinvestment Project Area
Budget
The Board will accept public comment about a resolution amending the 9-Line project
area budget based on the terms of interlocal agreements with participating taxing entities.
C.Redevelopment Agency Business -The RDA Board of Directors will receive
information and/or hold discussions and/or take action on:
1.Resolution:Amending the 9-Line Community
Reinvestment Project Area Budget ~2:05 p.m.
10 min.
The Board will be briefed about,and may consider adopting,a resolution amending the 9-
Line project area budget based on the terms of interlocal agreements with participating
taxing entities.
2.Resolution:Revisions to Real Property Disposition
Policy Follow-up ~2:15 p.m.
20 min.
The Board will receive a follow-up briefing about,and may consider adopting,a resolution
that makes potential revisions to the Real Property Disposition Policy.The proposed
changes would:
•authorize long-term ground leases as a form of land disposition,and
•clarify the circumstances in which the RDA can exclusively negotiate the disposition
of a property.
3.Resolution:Housing Development Loan Program
Policy Follow-up ~2:35 p.m.
20 min.
The Board will receive a follow-up briefing about,and may consider adopting,a resolution
to establish the proposed Housing Development Loan Program Policy.The purpose of the
Housing Development Loan Program (HDLP)is to provide low-cost financial assistance
to incentivize development and preservation of affordable housing within the City.The
HDLP would provide a centralized application,underwriting,and approval process
regardless of the fund source.
4.Informational:Update on Sales Pricing Terms of
the Utah Theater and Adjacent Retail Property at
144-158 South Main Street
~2:55 p.m.
30 min.
The Board will receive an update about requirements to the sales pricing terms of RDA-
owned property at 144 –158 South Main Street.As part of the potential project,the Board
requested any redevelopment include certain public benefits such as affordable housing,a
mid-block walkway,and repurposing of some historic elements of the theater.Upon
approval of the sales pricing terms to Hines Acquisitions and 160 Main LLC in December
2019,the Board also required green open space as part of the proposed project.
5.Informational:University of Utah Research Park
Project Area Creation Update ~3:25 p.m.
20 min.
The Board will receive an update about potential creation of the University of Utah
Research Park Project Area.In January 2020,the Board adopted a boundary survey
resolution which started the process to determine whether project area development is
feasible within the survey area.RDA Staff will update the Board on creating a draft
Community Reinvestment Area (CRA)plan and next steps to analyze any future
development.
6.Board Appointment:Redevelopment Advisory
Committee –Rosa Marnoto Bandeirinha ~3:45 p.m.
5 min.
The Board will interview Rosa Marnoto Bandeirinha prior to considering approval to the
Redevelopment Advisory Committee (RAC)for a term ending January 20,2025.
7.Motion:Meeting Remotely Without an Anchor
Location ~3:50 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.
8.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.
9.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;
•Community Council Outreach;and
•Scheduling Items.
10.Report of the Chair and Vice Chair TENTATIVE
5 min.
Report of the Chair and Vice Chair.
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:
NONE.
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:
1.Board Appointment:Redevelopment Advisory Committee –Rosa Marnoto
Bandeirinha
The Board will consider approving Rosa Marnoto Bandeirinha to the Redevelopment
Advisory Committee (RAC)for a term ending January 20,2025.
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.
REDEVELOPMENT AGENCY of SALT LAKE CITY
WWW.SLCGOV.COM WWW.SLCRDA.COM WWW.SALTLAKEARTS.ORG
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: March 4, 2021
PREPARED BY: Lauren Parisi, Project Manager
RE: 9 Line Community Reinvestment Area (“CRA”) Budget Amendment
REQUESTED ACTION: Discuss and consider the adoption of the proposed 9 Line CRA budget as
amended
BUDGET IMPACTS: 9 Line CRA 20-year consolidated budget
EXECUTIVE SUMMARY: On August 21, 2018 the Redevelopment Agency Board of Directors
(“Board”) adopted the 9 Line Community Reinvestment Area (“9 Line CRA”) plan and budget. Before the
Redevelopment Agency of Salt Lake City (“RDA”) can begin to collect tax increment within a project area,
an interlocal agreement must be approved by each contributing taxing entity detailing the terms of their
participation.
Interlocal agreements have now been finalized with all taxing entities contributing to the 9 Line CRA
including Salt Lake City, Salt Lake County and Salt Lake City School District. These agreements were also
reviewed and adopted by the Board. The purpose of this budget amendment is to align the 9 Line CRA
budget adopted by the Board in August of 2018 with the terms of the executed interlocal agreements. The
primary discrepancy between the adopted budget and executed interlocal agreements is a reduced project
area term from 25 to 20 years, which reduces the maximum cumulative dollar amount of tax increment that
the RDA can receive from each taxing entity.
ANALYSIS & ISSUES: Values within the 9 Line CRA budget as amended have been updated from the
previously adopted budget as noted in the tables below. More specifically, these values reflect a reduced
project area term, fewer participating taxing entities, an increased growth rate in the 9 Line project area,
and specific terms requested by Salt Lake County. The complete 9 Line CRA budget as amended to be
incorporated in the 9 Line CRA plan has been included under Attachment A.
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PROJECTED AMOUNT OF TIF
TABLE 2.1: INCREMENTAL PROPERTY TAX REVENUES GENERATED
Current Budget –
Incremental Tax Revenues 100% Total – 25 Years
Salt Lake County $5,700,032
Salt Lake City School District $14,857,106
Salt Lake City $10,955,312
Salt Lake Library $1,694,864
Salt Lake Metropolitan Water District $839,018
Salt Lake City Mosquito Abatement District $411,095
Central Utah Water Conservancy District $961,625
TOTAL $35,419,052
Budget as Amended –
Incremental Tax Revenues 100% Total – 20 Years
Salt Lake County $4,162,442
Salt Lake City School District $11,613,064
Salt Lake City $8,350,725
TOTAL $24,126,231
PERCENTAGE OF TIF AUTHORIZED TO RECEIVE
TABLE 2.3: REQUESTED PARTICIPATION FROM TAXING ENTITIES
Current Budget –
Taxing Entity Percentage Length
Salt Lake County 75% 25
Salt Lake City School District 75% 25
Salt Lake City 75% 25
Salt Lake Library 75% 25
Salt Lake Metropolitan Water District 75% 25
Salt Lake City Mosquito Abatement District 75% 25
Central Utah Water Conservancy District 75% 25
Budget as Amended –
Taxing Entity Percentage Length
Salt Lake County* 100% 20
Salt Lake City School District 75% 20
Salt Lake City 75% 20
*Note: The RDA will collect 100% of Salt Lake County tax increment and pay Salt Lake County a mitigation payment of
between 25% and 50%. Accordingly, the percentage retained by the RDA will be between 50% and 75% based on the terms as
specified in the interlocal agreement.
3
1(g): MAXIMUM CUMULATIVE AMOUNT RECEIVED BY THE RDA
TABLE 2.4: TAX INCREMENT REVENUES TO RDA
Current Budget –
Incremental Tax Revenues to RDA Total – 25 Years
Salt Lake County $4,275,024
Salt Lake City School District $11,142,829
Salt Lake City $8,216,484
Salt Lake Library $1,271,148
Salt Lake Metropolitan Water District $629,263
Salt Lake City Mosquito Abatement District $308,321
Central Utah Water Conservancy District $721,219
TOTAL $26,564,288
Budget as Amended –
Incremental Tax Revenues to RDA Total – 20 Years
Salt Lake County $2,081,211 to $3,122,000
Salt Lake City School District $8,709,798
Salt Lake City $ 6,263,044
TOTAL $17,054,053 to $18,094,842
Pursuant to State Code, public notices regarding the budget amendment hearing were sent to all property
owners within the 9 Line project area boundaries and posted on the Utah Public Notice website as well as
Salt Lake City’s website. Notices were also sent to the State Tax Commission, Salt Lake County
Assessor, Salt Lake County Auditor, and all participating taxing entities.
State Street CRA – Negotiations are still in process with Salt Lake County regarding the interlocal
agreement for the State Street CRA. RDA staff anticipates presenting the participation request to the Salt
Lake County Council in the near future. If approved by the County Council, the RDA Board must adopt a
resolution approving the interlocal agreement. Afterwards, a public hearing must be held to align the
terms of the interlocal agreements with the State Street CRA 20-year consolidated budget.
PREVIOUS BOARD ACTION:
• March 2015: The Board approved a list of several areas to be evaluated and adopted evaluation
criteria.
• April 2015: The Board shortlisted six potential project areas for further staff analysis.
• May 2015: Staff provided a recap of previous policy direction on the project area creation
process, including clarification of the potential project area boundaries and the short-list
evaluation criteria.
• June 2015: Staff provided a written status update on the project area creation process.
• August 2015: Staff presented its research on seven short-listed potential project areas to the RDA
Board. The Board requested staff return with a matrix to assist in an informed discussion and
project area selection prioritization in September.
• September 2015: The Board selected the State Street, Ball Park, and 9-Line areas as the top
ranked potential project areas. Staff commenced meeting with the Salt Lake City School District
4
and Salt Lake County taxing entities to discuss the three areas and collect feedback on the
potential terms of new project areas.
•November 2015: The Board amended the State Street project area boundaries to include portions
of the Ball Park project area. The Board approved the State Street and 9 Line project areas to
move forward in the Community Development Area creation process.
•December 2015: The Board authorized staff to proceed with the draft community development
area plans for the 9 Line and State Street Project Areas.
•April 2016: The Board authorized staff to proceed with the draft community reinvestment area
plans for the 9 Line and State Street Project Areas as redefined in Utah Title 17C.
•November 2016: Staff presented an update to the Board regarding the State Street and 9 Line
proposed project areas, including schedule and scope of work; results of a community outreach
campaign; and draft project area redevelopment activities and geographic target areas.
•January 2017: Staff presented to the Board regarding the following: the Board’s roles and
opportunities for input during the project area creation process, including drafting the project area
plan; the basis and components of the project area plans, including the purpose and components
of the public benefits analysis; and an updated proposed timeline for next steps in the project area
creation process.
•February 2017: Staff presented to the Board plan components, including a statement of existing
conditions and reasons for selecting the project area.
•October 2017: Staff presented to the Board regarding the updated timeline for creating the 9 Line
and State Street project areas.
•November 2017: Staff provided an update on the Public Benefit Analyses for the proposed 9 Line
and State Street Community Reinvestment Areas.
•February 2018: The Board adopted a resolution authorizing the expansion of the Community
Reinvestment Area boundary for the proposed State Street Project Area.
•May 2018: The Board gave preliminary approval of the draft State Street and 9 Line Community
Reinvestment Area (CRA) plans, allowing RDA staff to draft legal descriptions of the CRA,
provide public notice of 30-day comment period and public hearing, and conduct a second round
of community outreach on the draft CRA Plans.
•August 2018: The Board approved resolutions adopting the State Street and 9 Line CRA Plans
•August 2018: The City Council approved ordinances adopting the State Street and 9 Line CRA
Plans.
•September 2020: City Council approved resolutions authorizing the terms of the interlocal
agreements between the City and the RDA for the State Street and 9 Line CRAs
•October 2020: RDA Board approved resolutions adopting the interlocal agreements between the
School District and the RDA as well as the City and the RDA for the State Street and 9 Line
CRAs
•January 2021: RDA Board approved a resolution adopting the interlocal agreement between Salt
Lake County and the RDA for the 9 Line CRA
ATTACHMENTS:
Attachment A: RDA Board Resolution
Attachment B: 9 Line CRA Budget as Amended
Attachment C: 9 Line CRA Incremental Budget Analysis
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
9 Line Community Reinvestment Area Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE 9 LINE COMMUNITY REINVESTMENT AREA
BUDGET
WHEREAS, on August 21, 2018, the RDA Board of Directors (“Board”) adopted the 9
Line Community Reinvestment Area (“9 Line CRA”) budget, effective at the beginning of the
CRA’s funds collection period, in accordance with the requirements of Section 17C-5-302 of the
Utah Code.
WHEREAS, taxing entities including Salt Lake City, Salt Lake County and Salt Lake City
School District each executed an interlocal agreement with the Redevelopment Agency of Salt
Lake City (“RDA”) in accordance with the requirements of Section 17 -5-204 of the Utah Code,
which allows the RDA to receive a portion of the taxing entities’ tax increment within the project
area at the beginning of the collection period.
WHEREAS, the 9 Line CRA budget must be amended to reflect the same terms in the
executed interlocal agreements with Salt Lake City, Salt Lake County and Salt Lake City School
District.
WHEREAS, all conditions precedent to amend the CRA budget have been accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1.Purpose. The purpose of this Resolution is to amend the 9 Line CRA budget, as
approved, ratified and finalized by the RDA Board on August 21, 2018.
2.Adoption of Amended 9 Line CRA Budget. The amended 9 Line CRA budget
attached as Exhibit A is hereby adopted as the 9 Line CRA budget and shall be incorporated into
the 9 Line CRA project area plan.
3.Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder which amendments shall be available for public inspection. Pursuant to Section 17C-5-
305 of the Utah Code, the RDA shall cause a copy of the budget amendments to be filed with the
State Tax Commission, the State Board of Education, the state auditor, the Salt Lake County
Auditor, and the taxing entities party to the 9 Line CRA interlocal agreements.
Attachment A: RDA Board Resolution
2
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2021, to be effective upon adoption.
________________________________
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
March 2, 2021
3
EXHIBIT A TO RESOLUTION
[Attach Budget Amendment]
9 LINE PROJECT AREA BUDGET 1
9 LINE
PROJECT AREA BUDGET
OVERVIEW
The 9 Line Project Area Budget conforms with the requirements of 17C-5-303, and includes the
following information:
(
1) Receipt of Tax Increment
a.Base taxable value;
b.Projected amount of tax increment to be generated within the CRA;
c.Each project area funds collection period;
d.Projected amount of tax increment to be paid to other taxing entities in accordance with
Section 17C-1-410 (if applicable);
e.If the area from which tax increment is collected is less than the entire community
reinvestment project area:
(i) a boundary description of the portion or portions of the community reinvestment
project area from which the agency receives tax increment; and
(ii) for each portion described in Subsection (1)(e)(i), the period of time during which tax
increment is collected;
f.Percentage of tax increment the agency is authorized to receive from the community
reinvestment project area; and
g.Maximum cumulative dollar amount of tax increment the agency is authorized to receive
from the community reinvestment project area.
2) Receipt of Sales and Use Tax Revenue
3) Project Area Funds to Implement this CRA Plan
4) RDA’s Combined Incremental Value
5) Amount for Administration
6) Property Owned and Expected to Sell
AS AMENDED
Attachment B: 9 Line CRA Budget as Amended
9 LINE PROJECT AREA BUDGET 2
1(a): BASE TAXABLE VALUE
The base year is anticipated to be 2016, with a base year taxable value of $228,048,136.
1(b): PROJECTED AMOUNT OF TIF
TABLE 2.1: INCREMENTAL PROPERTY TAX REVENUES GENERATED - 20 YEARS
Incremental Tax Revenues - 100%Total – 20 Years
Salt Lake County $4,162,442
Salt Lake City School District $11,613,064
Salt Lake City $8,350,725
TOTAL $24,126,231
1(c): COLLECTION PERIOD
The collection period shall be 20 years.
1(d): TIF PAID TO OTHER TAXING ENTITIES
TABLE 2.2: INCREMENTAL PROPERTY TAX REVENUES TO TAXING ENTITIES - 20 YEARS
Incremental Tax Revenues to Taxing Entities Total – 20 Years
Salt Lake County*$1,040,442 to $2,081,211
Salt Lake City School District $2,903,266
Salt Lake City $2,087,681
TOTAL $6,031,389 to $7,072,158
*Note: The RDA will collect 100% of tax increment from the County Treasurer for Salt Lake County’s portion
and pay Salt Lake County a mitigation payment. The estimated mitigation payment over the 20-year term
is reflected in this table and will vary based on terms as specified in the interlocal agreement. The values
reflected for Salt Lake City School District and Salt Lake City reflect the 25% that the RDA is not entitled to
receive.
1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY
Not applicable. The TIF collection area is the entire CRA boundary.
9 LINE PROJECT AREA BUDGET 3
1(f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE
TABLE 2.3: PARTICIPATION FROM TAXING ENTITIES
Taxing Entity Percentage Length
Salt Lake County*100%20 Years
Salt Lake City School District 75%20 Years
Salt Lake City 75%20 Years
*Note: The RDA will collect 100% of Salt Lake County tax increment and pay Salt Lake County a
mitigation payment of between 25% and 50%. Accordingly, the percentage retained by the RDA will be
between 50% and 75% based on the terms as specified in the interlocal agreement.
1(g): MAXIMUM CUMULATIVE AMOUNT RECEIVED BY THE RDA
The maximum cumulative amount to be received and retained by the RDA is as follows:
TABLE 2.4: TAX INCREMENT REVENUES RETAINED BY RDA - 20-YEARS
Incremental Tax Revenues to RDA Total – 20 Years
Salt Lake County*$2,081,211 to $3,122,000
Salt Lake City School District $8,709,798
Salt Lake City $6,263,044
TOTAL $17,054,053 to $18,094,842
*Note: The maximum amount of Salt Lake County tax increment retained by the RDA may vary based on
terms as specified in the interlocal agreement.
2: SALES AND USE TAX REVENUE: Not applicable.
3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN
TABLE 2.5: BUDGET FOR TAX INCREMENT REVENUES TO RDA - 20-YEARS
Activity Percentage Amount*
Administration & Operations 10%$1,705,405 to $1,809,484
Housing 10%$1,705,405 to $1,809,484
Redevelopment Activities 80%$13,643,243 to $14,475,873
Total 100%$17,054,053 to $18,094,842
*Note: The amount of funds for each budget activity will vary based on the amount of Salt Lake County tax
increment retained by the RDA may vary based on terms as specified in the interlocal agreement.
9 LINE PROJECT AREA BUDGET 4
The RDA shall implement this plan through the following activities:
•ADMINISTRATION AND OPERATIONS:
The tax increment expected to be used to cover the operating costs of administering and
implementing the CRA Plan.
•HOUSING:
The tax increment allocation required to be used for housing activities pursuant to Section
17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
•REDEVELOPMENT ACTIVITIES:
The tax increment expected to be used to carry out project development activities as further
described in this CRA Plan. Activities may include, but not be limited to, land acquisition,
public improvements, infrastructure improvements, loans, grants, and other incentives to
public and private entities.
4: RDA’S COMBINED INCREMENTAL VALUE
TABLE 2.6: RDA’s COMBINED INCREMENTAL VALUE*
PROJECT AREA ASSESSED
PROPERTY VALUE
BASE TAXABLE
VALUE INCREMENTAL VALUE
SLC CBD In 2,630,997,631 136,894,100 2,494,103,531
Depot District 586,694,437 27,476,425 559,218,012
Granary 126,292,575 48,813,397 77,479,178
North Temple Viaduct 175,640,215 36,499,680 139,140,535
North Temple 139,375,192 84,073,572 55,301,620
Block 70 262,153,766 58,757,937 203,395,829
Stadler Rail 20,357,600 3,710 20,353,890
State Street CRA 1,158,719,413 889,305,536 269,413,877
9 Line CRA 321,647,261 228,048,136 93,599,125
Northwest Quadrant CRA 230,643,587 735,791 229,907,796
COMBINED VALUE $5,652,521,677 $1,510,608,284 $4,141,913,393
*Note: 2019 values, collection areas only.
5: PROJECT AREA FUNDS USED FOR ADMINISTRATION
The RDA anticipates utilizing up to 10 percent of the funds captured and retained by the RDA,
which is estimated to be $1,705,405 to 1,809,484.
6: EXPECTED SALE PRICE FOR PROPERTY THE RDA OWNS
The RDA does not own property within the Project Area.
ASSUMPTIONS:
Discount Rate 4.0%
Scenario
Redevelopment Agency of Salt Lake City
9 Line Project Area
Increment and Budget
Growth Rate 2.0%
Payment Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Tax Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTALS NPV
Cumulative Taxable Value Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Tax District 13
Commercial $1,885,594 $4,487,713 $7,808,621 $12,543,030 $17,398,808 $23,045,650 $28,819,308 $34,708,440 $40,715,354 $46,842,406 $54,624,351 $64,155,582 $73,908,697 $75,386,871 $76,894,609 $78,432,501 $80,001,151 $81,601,174 $83,233,198 $84,897,861
Office $608,798 $1,448,940 $2,521,155 $4,049,745 $5,617,520 $7,440,706 $9,304,836 $11,206,249 $13,145,690 $15,123,920 $17,636,462 $20,713,793 $23,862,763 $24,340,018 $24,826,818 $25,323,355 $25,829,822 $26,346,418 $26,873,347 $27,410,814
Residential $524,040 $1,247,215 $2,170,154 $3,485,931 $4,835,437 $6,404,795 $8,009,397 $9,646,091 $11,315,519 $13,018,336 $15,181,076 $17,829,974 $20,540,538 $20,951,349 $21,370,376 $21,797,783 $22,233,739 $22,678,414 $23,131,982 $23,594,622
Industrial $1,161,512 $2,764,399 $4,810,055 $7,726,417 $10,717,541 $14,195,956 $17,752,488 $21,380,150 $25,080,367 $28,854,587 $33,648,210 $39,519,380 $45,527,229 $46,437,773 $47,366,529 $48,313,859 $49,280,137 $50,265,739 $51,271,054 $52,296,475
Total Assessed Value:$4,179,944 $9,948,267 $17,309,985 $27,805,122 $38,569,307 $51,087,107 $63,886,029 $76,940,930 $90,256,929 $103,839,248 $121,090,100 $142,218,729 $163,839,227 $167,116,012 $170,458,332 $173,867,499 $177,344,849 $180,891,746 $184,509,581 $188,199,772
Value of Current Property $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136
Less Base Year Value ($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)
$4,179,944 $9,948,267 $17,309,985 $27,805,122 $38,569,307 $51,087,107 $63,886,029 $76,940,930 $90,256,929 $103,839,248 $121,090,100 $142,218,729 $163,839,227 $167,116,012 $170,458,332 $173,867,499 $177,344,849 $180,891,746 $184,509,581 $188,199,772
TAX RATE & INCREMENT ANALYSIS:2019 Rates
Salt Lake County 0.001933 8,080 19,230 33,460 53,747 74,554 98,751 123,492 148,727 174,467 200,721 234,067 274,909 316,701 323,035 329,496 336,086 342,808 349,664 356,657 363,790 4,162,442 2,448,058
Salt Lake City School District 0.005393 22,542 53,651 93,353 149,953 208,004 275,513 344,537 414,942 486,756 560,005 653,039 766,986 883,585 901,257 919,282 937,667 956,421 975,549 995,060 1,014,961 11,613,064 6,829,993
Salt Lake City 0.003878 16,210 38,579 67,128 107,828 149,572 198,116 247,750 298,377 350,016 402,689 469,587 551,524 635,369 648,076 661,037 674,258 687,743 701,498 715,528 729,839 8,350,725 4,911,313
Salt Lake Library 0.000745 3,114 7,411 12,896 20,715 28,734 38,060 47,595 57,321 67,241 77,360 90,212 105,953 122,060 124,501 126,991 129,531 132,122 134,764 137,460 140,209 1,604,252 943,509
Salt Lake Metropolitan Water District 0.000289 1,208 2,875 5,003 8,036 11,147 14,764 18,463 22,236 26,084 30,010 34,995 41,101 47,350 48,297 49,262 50,248 51,253 52,278 53,323 54,390 622,321 366,006
Salt Lake City Mosquito Abatement District 0.000133 556 1,323 2,302 3,698 5,130 6,795 8,497 10,233 12,004 13,811 16,105 18,915 21,791 22,226 22,671 23,124 23,587 24,059 24,540 25,031 286,397 168,439
Central Utah Water Conservancy District 0.000400 1,672 3,979 6,924 11,122 15,428 20,435 25,554 30,776 36,103 41,536 48,436 56,887 65,536 66,846 68,183 69,547 70,938 72,357 73,804 75,280 861,343 506,582
Totals:0.012771 53,382 127,049 221,066 355,099 492,569 652,433 815,888 982,613 1,152,671 1,326,131 1,546,442 1,816,275 2,092,391 2,134,239 2,176,923 2,220,462 2,264,871 2,310,168 2,356,372 2,403,499 27,500,544 16,173,899
TOTAL INCREMENTAL REVENUE IN PROJECT AREA:$53,382 $127,049 $221,066 $355,099 $492,569 $652,433 $815,888 $982,613 $1,152,671 $1,326,131 $1,546,442 $1,816,275 $2,092,391 $2,134,239 $2,176,923 $2,220,462 $2,264,871 $2,310,168 $2,356,372 $2,403,499 $27,500,544 $16,173,899
PROJECT AREA BUDGET 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Sources of Funds:2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTALS NPV
Property Tax Participation Rate for Budget
Salt Lake County*75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%
Salt Lake City School District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%
Salt Lake City 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%
Salt Lake Library 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Salt Lake Metropolitan Water District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Salt Lake City Mosquito Abatement District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Central Utah Water Conservancy District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Property Tax Increment for Budget
Salt Lake County $6,060 $14,423 $25,095 $40,310 $55,916 $74,064 $92,619 $111,545 $130,850 $150,541 $175,550 $206,182 $237,526 $242,276 $247,122 $252,064 $257,106 $262,248 $267,493 $272,843 $3,121,832 $1,836,043
Salt Lake City School District $16,907 $40,238 $70,015 $112,465 $156,003 $206,635 $258,403 $311,207 $365,067 $420,004 $489,779 $575,239 $662,689 $675,942 $689,461 $703,251 $717,316 $731,662 $746,295 $761,221 $8,709,798 $5,122,494
Salt Lake City $12,157 $28,935 $50,346 $80,871 $112,179 $148,587 $185,813 $223,783 $262,512 $302,016 $352,191 $413,643 $476,526 $486,057 $495,778 $505,694 $515,807 $526,124 $536,646 $547,379 $6,263,044 $3,683,485
Salt Lake Library - - - - - - - - - - - - - - - - - - - - -$ -$
Salt Lake Metropolitan Water District - - - - - - - - - - - - - - - - - - - - -$ -$
Salt Lake City Mosquito Abatement District - - - - - - - - - - - - - - - - - - - - -$ -$
Central Utah Water Conservancy District - - - - - - - - - - - - - - - - - - - - -$ -$
Total Property Tax Increment for Budget:$35,124 $83,595 $145,456 $233,646 $324,098 $429,285 $536,834 $646,535 $758,429 $872,561 $1,017,520 $1,195,064 $1,376,741 $1,404,276 $1,432,361 $1,461,009 $1,490,229 $1,520,033 $1,550,434 $1,581,443 $18,094,673 $10,642,023
Uses of Tax Increment Funds:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTALS NPV
Redevelopment Activities (Infrastructure, Relocation, Incentives, etc.)80.0%$28,099 $66,876 $116,365 $186,917 $259,278 $343,428 $429,467 $517,228 $606,743 $698,049 $814,016 $956,051 $1,101,393 $1,123,421 $1,145,889 $1,168,807 $1,192,183 $1,216,027 $1,240,347 $1,265,154 $14,475,739 $8,513,618
CRA Housing 10.0%$3,512 $8,360 $14,546 $23,365 $32,410 $42,928 $53,683 $64,653 $75,843 $87,256 $101,752 $119,506 $137,674 $140,428 $143,236 $146,101 $149,023 $152,003 $155,043 $158,144 $1,809,467 $1,064,202
RDA Administration and Operations**10.0%$3,512 $8,360 $14,546 $23,365 $32,410 $42,928 $53,683 $64,653 $75,843 $87,256 $101,752 $119,506 $137,674 $140,428 $143,236 $146,101 $149,023 $152,003 $155,043 $158,144 $1,809,467 $1,064,202
Total Uses $35,124 $83,595 $145,456 $233,646 $324,098 $429,285 $536,834 $646,535 $758,429 $872,561 $1,017,520 $1,195,064 $1,376,741 $1,404,276 $1,432,361 $1,461,009 $1,490,229 $1,520,033 $1,550,434 $1,581,443 $18,094,673 $10,642,023
REMAINING TAX REVENUES FOR TAXING ENTITIES 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTALS NPV
Salt Lake County $2,020 $4,808 $8,365 $13,437 $18,639 $24,688 $30,873 $37,182 $43,617 $50,180 $58,517 $68,727 $79,175 $80,759 $82,374 $84,021 $85,702 $87,416 $89,164 $90,948 $1,040,611 $612,014
Salt Lake City School District $5,636 $13,413 $23,338 $37,488 $52,001 $68,878 $86,134 $103,736 $121,689 $140,001 $163,260 $191,746 $220,896 $225,314 $229,820 $234,417 $239,105 $243,887 $248,765 $253,740 $2,903,266 $1,707,498
Salt Lake City $4,052 $9,645 $16,782 $26,957 $37,393 $49,529 $61,938 $74,594 $87,504 $100,672 $117,397 $137,881 $158,842 $162,019 $165,259 $168,565 $171,936 $175,375 $178,882 $182,460 $2,087,681 $1,227,828
Salt Lake Library $3,114 $7,411 $12,896 $20,715 $28,734 $38,060 $47,595 $57,321 $67,241 $77,360 $90,212 $105,953 $122,060 $124,501 $126,991 $129,531 $132,122 $134,764 $137,460 $140,209 $1,604,252 $943,509
Salt Lake Metropolitan Water District $1,208 $2,875 $5,003 $8,036 $11,147 $14,764 $18,463 $22,236 $26,084 $30,010 $34,995 $41,101 $47,350 $48,297 $49,262 $50,248 $51,253 $52,278 $53,323 $54,390 $622,321 $366,006
Salt Lake City Mosquito Abatement District $556 $1,323 $2,302 $3,698 $5,130 $6,795 $8,497 $10,233 $12,004 $13,811 $16,105 $18,915 $21,791 $22,226 $22,671 $23,124 $23,587 $24,059 $24,540 $25,031 $286,397 $168,439
Central Utah Water Conservancy District $1,672 $3,979 $6,924 $11,122 $15,428 $20,435 $25,554 $30,776 $36,103 $41,536 $48,436 $56,887 $65,536 $66,846 $68,183 $69,547 $70,938 $72,357 $73,804 $75,280 $861,343 $506,582
Total $18,258 $43,454 $75,610 $121,453 $168,471 $223,148 $279,054 $336,078 $394,242 $453,570 $528,922 $621,211 $715,650 $729,963 $744,562 $759,453 $774,642 $790,135 $805,938 $822,057 $9,405,871 $5,531,876
TOTAL INCREMENTAL VALUE:
INCREMENTAL TAX ANALYSIS:
TaxInc Budget
UPDATED 9 Line CRA (Scenario Analysis)
*Salt Lake County's participation rate to vary subject to the terms of the interlocal agreement with Salt Lake County
**Percentage of tax increment used for RDA administration and operations to vary subject to the terms of the interlocal agreement with Salt Lake County
Attachment C: 9 Line CRA Incremental Budget Analysis
Item C1
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
MOTION SHEET
REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM: Ben Luedtke
Budget & Policy Analyst
DATE:March 23, 2021
RE: 9-Line Community Reinvestment Area Budget
MOTION 1 – ADOPT
I move that the RDA Board adopt a resolution amending the 9-Line Community Reinvestment Area
budget and updating the project area plan.
MOTION 2 – NOT ADOPT
I move that the RDA Board not adopt the resolution and proceed to the next agenda item.
RDA 101
Redevelopment Agency of Salt Lake City
March 23, 2021
9 Line Community Reinvestment Area –
Budget Amendments
9 Line CRA Budget Amendments
9 Line CRA Budget Amendments
50%, 60%, 75%
75%
75%
9 Line CRA
738 Acres Total
113 Acres Anticipated to Redevelop
CRA Development Snapshot
+1,237
NEW JOBS
+257
NEW HOUSING UNITS
+451,000
COMMERCIAL S.F.
+115,000
OFFICE S.F.
+490,000
INDUSTRIAL S.F.
+$24,126,231
PROPERTY TAX INCREMENT
REDEVELOPMENT AGENCY of SALT LAKE CITY
WWW.SLCGOV.COM WWW.SLCRDA.COM WWW.SALTLAKEARTS.ORG
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: March 4, 2021
PREPARED BY: Lauren Parisi, Project Manager
RE: 9 Line Community Reinvestment Area (“CRA”) Budget Amendment
REQUESTED ACTION: Discuss and consider the adoption of the proposed 9 Line CRA budget as
amended
BUDGET IMPACTS: 9 Line CRA 20-year consolidated budget
EXECUTIVE SUMMARY: On August 21, 2018 the Redevelopment Agency Board of Directors
(“Board”) adopted the 9 Line Community Reinvestment Area (“9 Line CRA”) plan and budget. Before the
Redevelopment Agency of Salt Lake City (“RDA”) can begin to collect tax increment within a project area,
an interlocal agreement must be approved by each contributing taxing entity detailing the terms of their
participation.
Interlocal agreements have now been finalized with all taxing entities contributing to the 9 Line CRA
including Salt Lake City, Salt Lake County and Salt Lake City School District. These agreements were also
reviewed and adopted by the Board. The purpose of this budget amendment is to align the 9 Line CRA
budget adopted by the Board in August of 2018 with the terms of the executed interlocal agreements. The
primary discrepancy between the adopted budget and executed interlocal agreements is a reduced project
area term from 25 to 20 years, which reduces the maximum cumulative dollar amount of tax increment that
the RDA can receive from each taxing entity.
ANALYSIS & ISSUES: Values within the 9 Line CRA budget as amended have been updated from the
previously adopted budget as noted in the tables below. More specifically, these values reflect a reduced
project area term, fewer participating taxing entities, an increased growth rate in the 9 Line project area,
and specific terms requested by Salt Lake County. The complete 9 Line CRA budget as amended to be
incorporated in the 9 Line CRA plan has been included under Attachment A.
2
PROJECTED AMOUNT OF TIF
TABLE 2.1: INCREMENTAL PROPERTY TAX REVENUES GENERATED
Current Budget –
Incremental Tax Revenues 100% Total – 25 Years
Salt Lake County $5,700,032
Salt Lake City School District $14,857,106
Salt Lake City $10,955,312
Salt Lake Library $1,694,864
Salt Lake Metropolitan Water District $839,018
Salt Lake City Mosquito Abatement District $411,095
Central Utah Water Conservancy District $961,625
TOTAL $35,419,052
Budget as Amended –
Incremental Tax Revenues 100% Total – 20 Years
Salt Lake County $4,162,442
Salt Lake City School District $11,613,064
Salt Lake City $8,350,725
TOTAL $24,126,231
PERCENTAGE OF TIF AUTHORIZED TO RECEIVE
TABLE 2.3: REQUESTED PARTICIPATION FROM TAXING ENTITIES
Current Budget –
Taxing Entity Percentage Length
Salt Lake County 75% 25
Salt Lake City School District 75% 25
Salt Lake City 75% 25
Salt Lake Library 75% 25
Salt Lake Metropolitan Water District 75% 25
Salt Lake City Mosquito Abatement District 75% 25
Central Utah Water Conservancy District 75% 25
Budget as Amended –
Taxing Entity Percentage Length
Salt Lake County* 100% 20
Salt Lake City School District 75% 20
Salt Lake City 75% 20
*Note: The RDA will collect 100% of Salt Lake County tax increment and pay Salt Lake County a mitigation payment of
between 25% and 50%. Accordingly, the percentage retained by the RDA will be between 50% and 75% based on the terms as
specified in the interlocal agreement.
3
1(g): MAXIMUM CUMULATIVE AMOUNT RECEIVED BY THE RDA
TABLE 2.4: TAX INCREMENT REVENUES TO RDA
Current Budget –
Incremental Tax Revenues to RDA Total – 25 Years
Salt Lake County $4,275,024
Salt Lake City School District $11,142,829
Salt Lake City $8,216,484
Salt Lake Library $1,271,148
Salt Lake Metropolitan Water District $629,263
Salt Lake City Mosquito Abatement District $308,321
Central Utah Water Conservancy District $721,219
TOTAL $26,564,288
Budget as Amended –
Incremental Tax Revenues to RDA Total – 20 Years
Salt Lake County $2,081,211 to $3,122,000
Salt Lake City School District $8,709,798
Salt Lake City $ 6,263,044
TOTAL $17,054,053 to $18,094,842
Pursuant to State Code, public notices regarding the budget amendment hearing were sent to all property
owners within the 9 Line project area boundaries and posted on the Utah Public Notice website as well as
Salt Lake City’s website. Notices were also sent to the State Tax Commission, Salt Lake County
Assessor, Salt Lake County Auditor, and all participating taxing entities.
State Street CRA – Negotiations are still in process with Salt Lake County regarding the interlocal
agreement for the State Street CRA. RDA staff anticipates presenting the participation request to the Salt
Lake County Council in the near future. If approved by the County Council, the RDA Board must adopt a
resolution approving the interlocal agreement. Afterwards, a public hearing must be held to align the
terms of the interlocal agreements with the State Street CRA 20-year consolidated budget.
PREVIOUS BOARD ACTION:
• March 2015: The Board approved a list of several areas to be evaluated and adopted evaluation
criteria.
• April 2015: The Board shortlisted six potential project areas for further staff analysis.
• May 2015: Staff provided a recap of previous policy direction on the project area creation
process, including clarification of the potential project area boundaries and the short-list
evaluation criteria.
• June 2015: Staff provided a written status update on the project area creation process.
• August 2015: Staff presented its research on seven short-listed potential project areas to the RDA
Board. The Board requested staff return with a matrix to assist in an informed discussion and
project area selection prioritization in September.
• September 2015: The Board selected the State Street, Ball Park, and 9-Line areas as the top
ranked potential project areas. Staff commenced meeting with the Salt Lake City School District
4
and Salt Lake County taxing entities to discuss the three areas and collect feedback on the
potential terms of new project areas.
•November 2015: The Board amended the State Street project area boundaries to include portions
of the Ball Park project area. The Board approved the State Street and 9 Line project areas to
move forward in the Community Development Area creation process.
•December 2015: The Board authorized staff to proceed with the draft community development
area plans for the 9 Line and State Street Project Areas.
•April 2016: The Board authorized staff to proceed with the draft community reinvestment area
plans for the 9 Line and State Street Project Areas as redefined in Utah Title 17C.
•November 2016: Staff presented an update to the Board regarding the State Street and 9 Line
proposed project areas, including schedule and scope of work; results of a community outreach
campaign; and draft project area redevelopment activities and geographic target areas.
•January 2017: Staff presented to the Board regarding the following: the Board’s roles and
opportunities for input during the project area creation process, including drafting the project area
plan; the basis and components of the project area plans, including the purpose and components
of the public benefits analysis; and an updated proposed timeline for next steps in the project area
creation process.
•February 2017: Staff presented to the Board plan components, including a statement of existing
conditions and reasons for selecting the project area.
•October 2017: Staff presented to the Board regarding the updated timeline for creating the 9 Line
and State Street project areas.
•November 2017: Staff provided an update on the Public Benefit Analyses for the proposed 9 Line
and State Street Community Reinvestment Areas.
•February 2018: The Board adopted a resolution authorizing the expansion of the Community
Reinvestment Area boundary for the proposed State Street Project Area.
•May 2018: The Board gave preliminary approval of the draft State Street and 9 Line Community
Reinvestment Area (CRA) plans, allowing RDA staff to draft legal descriptions of the CRA,
provide public notice of 30-day comment period and public hearing, and conduct a second round
of community outreach on the draft CRA Plans.
•August 2018: The Board approved resolutions adopting the State Street and 9 Line CRA Plans
•August 2018: The City Council approved ordinances adopting the State Street and 9 Line CRA
Plans.
•September 2020: City Council approved resolutions authorizing the terms of the interlocal
agreements between the City and the RDA for the State Street and 9 Line CRAs
•October 2020: RDA Board approved resolutions adopting the interlocal agreements between the
School District and the RDA as well as the City and the RDA for the State Street and 9 Line
CRAs
•January 2021: RDA Board approved a resolution adopting the interlocal agreement between Salt
Lake County and the RDA for the 9 Line CRA
ATTACHMENTS:
Attachment A: RDA Board Resolution
Attachment B: 9 Line CRA Budget as Amended
Attachment C: 9 Line CRA Incremental Budget Analysis
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
9 Line Community Reinvestment Area Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE 9 LINE COMMUNITY REINVESTMENT AREA
BUDGET
WHEREAS, on August 21, 2018, the RDA Board of Directors (“Board”) adopted the 9
Line Community Reinvestment Area (“9 Line CRA”) budget, effective at the beginning of the
CRA’s funds collection period, in accordance with the requirements of Section 17C-5-302 of the
Utah Code.
WHEREAS, taxing entities including Salt Lake City, Salt Lake County and Salt Lake City
School District each executed an interlocal agreement with the Redevelopment Agency of Salt
Lake City (“RDA”) in accordance with the requirements of Section 17 -5-204 of the Utah Code,
which allows the RDA to receive a portion of the taxing entities’ tax increment within the project
area at the beginning of the collection period.
WHEREAS, the 9 Line CRA budget must be amended to reflect the same terms in the
executed interlocal agreements with Salt Lake City, Salt Lake County and Salt Lake City School
District.
WHEREAS, all conditions precedent to amend the CRA budget have been accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1.Purpose. The purpose of this Resolution is to amend the 9 Line CRA budget, as
approved, ratified and finalized by the RDA Board on August 21, 2018.
2.Adoption of Amended 9 Line CRA Budget. The amended 9 Line CRA budget
attached as Exhibit A is hereby adopted as the 9 Line CRA budget and shall be incorporated into
the 9 Line CRA project area plan.
3.Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder which amendments shall be available for public inspection. Pursuant to Section 17C-5-
305 of the Utah Code, the RDA shall cause a copy of the budget amendments to be filed with the
State Tax Commission, the State Board of Education, the state auditor, the Salt Lake County
Auditor, and the taxing entities party to the 9 Line CRA interlocal agreements.
Attachment A: RDA Board Resolution
2
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2021, to be effective upon adoption.
________________________________
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
March 2, 2021
3
EXHIBIT A TO RESOLUTION
[Attach Budget Amendment]
9 LINE PROJECT AREA BUDGET 1
9 LINE
PROJECT AREA BUDGET
OVERVIEW
The 9 Line Project Area Budget conforms with the requirements of 17C-5-303, and includes the
following information:
(
1) Receipt of Tax Increment
a.Base taxable value;
b.Projected amount of tax increment to be generated within the CRA;
c.Each project area funds collection period;
d.Projected amount of tax increment to be paid to other taxing entities in accordance with
Section 17C-1-410 (if applicable);
e.If the area from which tax increment is collected is less than the entire community
reinvestment project area:
(i) a boundary description of the portion or portions of the community reinvestment
project area from which the agency receives tax increment; and
(ii) for each portion described in Subsection (1)(e)(i), the period of time during which tax
increment is collected;
f.Percentage of tax increment the agency is authorized to receive from the community
reinvestment project area; and
g.Maximum cumulative dollar amount of tax increment the agency is authorized to receive
from the community reinvestment project area.
2) Receipt of Sales and Use Tax Revenue
3) Project Area Funds to Implement this CRA Plan
4) RDA’s Combined Incremental Value
5) Amount for Administration
6) Property Owned and Expected to Sell
AS AMENDED
Attachment B: 9 Line CRA Budget as Amended
9 LINE PROJECT AREA BUDGET 2
1(a): BASE TAXABLE VALUE
The base year is anticipated to be 2016, with a base year taxable value of $228,048,136.
1(b): PROJECTED AMOUNT OF TIF
TABLE 2.1: INCREMENTAL PROPERTY TAX REVENUES GENERATED - 20 YEARS
Incremental Tax Revenues - 100%Total – 20 Years
Salt Lake County $4,162,442
Salt Lake City School District $11,613,064
Salt Lake City $8,350,725
TOTAL $24,126,231
1(c): COLLECTION PERIOD
The collection period shall be 20 years.
1(d): TIF PAID TO OTHER TAXING ENTITIES
TABLE 2.2: INCREMENTAL PROPERTY TAX REVENUES TO TAXING ENTITIES - 20 YEARS
Incremental Tax Revenues to Taxing Entities Total – 20 Years
Salt Lake County*$1,040,442 to $2,081,211
Salt Lake City School District $2,903,266
Salt Lake City $2,087,681
TOTAL $6,031,389 to $7,072,158
*Note: The RDA will collect 100% of tax increment from the County Treasurer for Salt Lake County’s portion
and pay Salt Lake County a mitigation payment. The estimated mitigation payment over the 20-year term
is reflected in this table and will vary based on terms as specified in the interlocal agreement. The values
reflected for Salt Lake City School District and Salt Lake City reflect the 25% that the RDA is not entitled to
receive.
1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY
Not applicable. The TIF collection area is the entire CRA boundary.
9 LINE PROJECT AREA BUDGET 3
1(f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE
TABLE 2.3: PARTICIPATION FROM TAXING ENTITIES
Taxing Entity Percentage Length
Salt Lake County*100%20 Years
Salt Lake City School District 75%20 Years
Salt Lake City 75%20 Years
*Note: The RDA will collect 100% of Salt Lake County tax increment and pay Salt Lake County a
mitigation payment of between 25% and 50%. Accordingly, the percentage retained by the RDA will be
between 50% and 75% based on the terms as specified in the interlocal agreement.
1(g): MAXIMUM CUMULATIVE AMOUNT RECEIVED BY THE RDA
The maximum cumulative amount to be received and retained by the RDA is as follows:
TABLE 2.4: TAX INCREMENT REVENUES RETAINED BY RDA - 20-YEARS
Incremental Tax Revenues to RDA Total – 20 Years
Salt Lake County*$2,081,211 to $3,122,000
Salt Lake City School District $8,709,798
Salt Lake City $6,263,044
TOTAL $17,054,053 to $18,094,842
*Note: The maximum amount of Salt Lake County tax increment retained by the RDA may vary based on
terms as specified in the interlocal agreement.
2: SALES AND USE TAX REVENUE: Not applicable.
3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN
TABLE 2.5: BUDGET FOR TAX INCREMENT REVENUES TO RDA - 20-YEARS
Activity Percentage Amount*
Administration & Operations 10%$1,705,405 to $1,809,484
Housing 10%$1,705,405 to $1,809,484
Redevelopment Activities 80%$13,643,243 to $14,475,873
Total 100%$17,054,053 to $18,094,842
*Note: The amount of funds for each budget activity will vary based on the amount of Salt Lake County tax
increment retained by the RDA may vary based on terms as specified in the interlocal agreement.
9 LINE PROJECT AREA BUDGET 4
The RDA shall implement this plan through the following activities:
•ADMINISTRATION AND OPERATIONS:
The tax increment expected to be used to cover the operating costs of administering and
implementing the CRA Plan.
•HOUSING:
The tax increment allocation required to be used for housing activities pursuant to Section
17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
•REDEVELOPMENT ACTIVITIES:
The tax increment expected to be used to carry out project development activities as further
described in this CRA Plan. Activities may include, but not be limited to, land acquisition,
public improvements, infrastructure improvements, loans, grants, and other incentives to
public and private entities.
4: RDA’S COMBINED INCREMENTAL VALUE
TABLE 2.6: RDA’s COMBINED INCREMENTAL VALUE*
PROJECT AREA ASSESSED
PROPERTY VALUE
BASE TAXABLE
VALUE INCREMENTAL VALUE
SLC CBD In 2,630,997,631 136,894,100 2,494,103,531
Depot District 586,694,437 27,476,425 559,218,012
Granary 126,292,575 48,813,397 77,479,178
North Temple Viaduct 175,640,215 36,499,680 139,140,535
North Temple 139,375,192 84,073,572 55,301,620
Block 70 262,153,766 58,757,937 203,395,829
Stadler Rail 20,357,600 3,710 20,353,890
State Street CRA 1,158,719,413 889,305,536 269,413,877
9 Line CRA 321,647,261 228,048,136 93,599,125
Northwest Quadrant CRA 230,643,587 735,791 229,907,796
COMBINED VALUE $5,652,521,677 $1,510,608,284 $4,141,913,393
*Note: 2019 values, collection areas only.
5: PROJECT AREA FUNDS USED FOR ADMINISTRATION
The RDA anticipates utilizing up to 10 percent of the funds captured and retained by the RDA,
which is estimated to be $1,705,405 to 1,809,484.
6: EXPECTED SALE PRICE FOR PROPERTY THE RDA OWNS
The RDA does not own property within the Project Area.
ASSUMPTIONS:
Discount Rate 4.0%
Scenario
Redevelopment Agency of Salt Lake City
9 Line Project Area
Increment and Budget
Growth Rate 2.0%
Payment Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Tax Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTALS NPV
Cumulative Taxable Value Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Tax District 13
Commercial $1,885,594 $4,487,713 $7,808,621 $12,543,030 $17,398,808 $23,045,650 $28,819,308 $34,708,440 $40,715,354 $46,842,406 $54,624,351 $64,155,582 $73,908,697 $75,386,871 $76,894,609 $78,432,501 $80,001,151 $81,601,174 $83,233,198 $84,897,861
Office $608,798 $1,448,940 $2,521,155 $4,049,745 $5,617,520 $7,440,706 $9,304,836 $11,206,249 $13,145,690 $15,123,920 $17,636,462 $20,713,793 $23,862,763 $24,340,018 $24,826,818 $25,323,355 $25,829,822 $26,346,418 $26,873,347 $27,410,814
Residential $524,040 $1,247,215 $2,170,154 $3,485,931 $4,835,437 $6,404,795 $8,009,397 $9,646,091 $11,315,519 $13,018,336 $15,181,076 $17,829,974 $20,540,538 $20,951,349 $21,370,376 $21,797,783 $22,233,739 $22,678,414 $23,131,982 $23,594,622
Industrial $1,161,512 $2,764,399 $4,810,055 $7,726,417 $10,717,541 $14,195,956 $17,752,488 $21,380,150 $25,080,367 $28,854,587 $33,648,210 $39,519,380 $45,527,229 $46,437,773 $47,366,529 $48,313,859 $49,280,137 $50,265,739 $51,271,054 $52,296,475
Total Assessed Value:$4,179,944 $9,948,267 $17,309,985 $27,805,122 $38,569,307 $51,087,107 $63,886,029 $76,940,930 $90,256,929 $103,839,248 $121,090,100 $142,218,729 $163,839,227 $167,116,012 $170,458,332 $173,867,499 $177,344,849 $180,891,746 $184,509,581 $188,199,772
Value of Current Property $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136
Less Base Year Value ($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)
$4,179,944 $9,948,267 $17,309,985 $27,805,122 $38,569,307 $51,087,107 $63,886,029 $76,940,930 $90,256,929 $103,839,248 $121,090,100 $142,218,729 $163,839,227 $167,116,012 $170,458,332 $173,867,499 $177,344,849 $180,891,746 $184,509,581 $188,199,772
TAX RATE & INCREMENT ANALYSIS:2019 Rates
Salt Lake County 0.001933 8,080 19,230 33,460 53,747 74,554 98,751 123,492 148,727 174,467 200,721 234,067 274,909 316,701 323,035 329,496 336,086 342,808 349,664 356,657 363,790 4,162,442 2,448,058
Salt Lake City School District 0.005393 22,542 53,651 93,353 149,953 208,004 275,513 344,537 414,942 486,756 560,005 653,039 766,986 883,585 901,257 919,282 937,667 956,421 975,549 995,060 1,014,961 11,613,064 6,829,993
Salt Lake City 0.003878 16,210 38,579 67,128 107,828 149,572 198,116 247,750 298,377 350,016 402,689 469,587 551,524 635,369 648,076 661,037 674,258 687,743 701,498 715,528 729,839 8,350,725 4,911,313
Salt Lake Library 0.000745 3,114 7,411 12,896 20,715 28,734 38,060 47,595 57,321 67,241 77,360 90,212 105,953 122,060 124,501 126,991 129,531 132,122 134,764 137,460 140,209 1,604,252 943,509
Salt Lake Metropolitan Water District 0.000289 1,208 2,875 5,003 8,036 11,147 14,764 18,463 22,236 26,084 30,010 34,995 41,101 47,350 48,297 49,262 50,248 51,253 52,278 53,323 54,390 622,321 366,006
Salt Lake City Mosquito Abatement District 0.000133 556 1,323 2,302 3,698 5,130 6,795 8,497 10,233 12,004 13,811 16,105 18,915 21,791 22,226 22,671 23,124 23,587 24,059 24,540 25,031 286,397 168,439
Central Utah Water Conservancy District 0.000400 1,672 3,979 6,924 11,122 15,428 20,435 25,554 30,776 36,103 41,536 48,436 56,887 65,536 66,846 68,183 69,547 70,938 72,357 73,804 75,280 861,343 506,582
Totals:0.012771 53,382 127,049 221,066 355,099 492,569 652,433 815,888 982,613 1,152,671 1,326,131 1,546,442 1,816,275 2,092,391 2,134,239 2,176,923 2,220,462 2,264,871 2,310,168 2,356,372 2,403,499 27,500,544 16,173,899
TOTAL INCREMENTAL REVENUE IN PROJECT AREA:$53,382 $127,049 $221,066 $355,099 $492,569 $652,433 $815,888 $982,613 $1,152,671 $1,326,131 $1,546,442 $1,816,275 $2,092,391 $2,134,239 $2,176,923 $2,220,462 $2,264,871 $2,310,168 $2,356,372 $2,403,499 $27,500,544 $16,173,899
PROJECT AREA BUDGET 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Sources of Funds:2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTALS NPV
Property Tax Participation Rate for Budget
Salt Lake County*75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%
Salt Lake City School District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%
Salt Lake City 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%
Salt Lake Library 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Salt Lake Metropolitan Water District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Salt Lake City Mosquito Abatement District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Central Utah Water Conservancy District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
Property Tax Increment for Budget
Salt Lake County $6,060 $14,423 $25,095 $40,310 $55,916 $74,064 $92,619 $111,545 $130,850 $150,541 $175,550 $206,182 $237,526 $242,276 $247,122 $252,064 $257,106 $262,248 $267,493 $272,843 $3,121,832 $1,836,043
Salt Lake City School District $16,907 $40,238 $70,015 $112,465 $156,003 $206,635 $258,403 $311,207 $365,067 $420,004 $489,779 $575,239 $662,689 $675,942 $689,461 $703,251 $717,316 $731,662 $746,295 $761,221 $8,709,798 $5,122,494
Salt Lake City $12,157 $28,935 $50,346 $80,871 $112,179 $148,587 $185,813 $223,783 $262,512 $302,016 $352,191 $413,643 $476,526 $486,057 $495,778 $505,694 $515,807 $526,124 $536,646 $547,379 $6,263,044 $3,683,485
Salt Lake Library - - - - - - - - - - - - - - - - - - - - -$ -$
Salt Lake Metropolitan Water District - - - - - - - - - - - - - - - - - - - - -$ -$
Salt Lake City Mosquito Abatement District - - - - - - - - - - - - - - - - - - - - -$ -$
Central Utah Water Conservancy District - - - - - - - - - - - - - - - - - - - - -$ -$
Total Property Tax Increment for Budget:$35,124 $83,595 $145,456 $233,646 $324,098 $429,285 $536,834 $646,535 $758,429 $872,561 $1,017,520 $1,195,064 $1,376,741 $1,404,276 $1,432,361 $1,461,009 $1,490,229 $1,520,033 $1,550,434 $1,581,443 $18,094,673 $10,642,023
Uses of Tax Increment Funds:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTALS NPV
Redevelopment Activities (Infrastructure, Relocation, Incentives, etc.)80.0%$28,099 $66,876 $116,365 $186,917 $259,278 $343,428 $429,467 $517,228 $606,743 $698,049 $814,016 $956,051 $1,101,393 $1,123,421 $1,145,889 $1,168,807 $1,192,183 $1,216,027 $1,240,347 $1,265,154 $14,475,739 $8,513,618
CRA Housing 10.0%$3,512 $8,360 $14,546 $23,365 $32,410 $42,928 $53,683 $64,653 $75,843 $87,256 $101,752 $119,506 $137,674 $140,428 $143,236 $146,101 $149,023 $152,003 $155,043 $158,144 $1,809,467 $1,064,202
RDA Administration and Operations**10.0%$3,512 $8,360 $14,546 $23,365 $32,410 $42,928 $53,683 $64,653 $75,843 $87,256 $101,752 $119,506 $137,674 $140,428 $143,236 $146,101 $149,023 $152,003 $155,043 $158,144 $1,809,467 $1,064,202
Total Uses $35,124 $83,595 $145,456 $233,646 $324,098 $429,285 $536,834 $646,535 $758,429 $872,561 $1,017,520 $1,195,064 $1,376,741 $1,404,276 $1,432,361 $1,461,009 $1,490,229 $1,520,033 $1,550,434 $1,581,443 $18,094,673 $10,642,023
REMAINING TAX REVENUES FOR TAXING ENTITIES 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTALS NPV
Salt Lake County $2,020 $4,808 $8,365 $13,437 $18,639 $24,688 $30,873 $37,182 $43,617 $50,180 $58,517 $68,727 $79,175 $80,759 $82,374 $84,021 $85,702 $87,416 $89,164 $90,948 $1,040,611 $612,014
Salt Lake City School District $5,636 $13,413 $23,338 $37,488 $52,001 $68,878 $86,134 $103,736 $121,689 $140,001 $163,260 $191,746 $220,896 $225,314 $229,820 $234,417 $239,105 $243,887 $248,765 $253,740 $2,903,266 $1,707,498
Salt Lake City $4,052 $9,645 $16,782 $26,957 $37,393 $49,529 $61,938 $74,594 $87,504 $100,672 $117,397 $137,881 $158,842 $162,019 $165,259 $168,565 $171,936 $175,375 $178,882 $182,460 $2,087,681 $1,227,828
Salt Lake Library $3,114 $7,411 $12,896 $20,715 $28,734 $38,060 $47,595 $57,321 $67,241 $77,360 $90,212 $105,953 $122,060 $124,501 $126,991 $129,531 $132,122 $134,764 $137,460 $140,209 $1,604,252 $943,509
Salt Lake Metropolitan Water District $1,208 $2,875 $5,003 $8,036 $11,147 $14,764 $18,463 $22,236 $26,084 $30,010 $34,995 $41,101 $47,350 $48,297 $49,262 $50,248 $51,253 $52,278 $53,323 $54,390 $622,321 $366,006
Salt Lake City Mosquito Abatement District $556 $1,323 $2,302 $3,698 $5,130 $6,795 $8,497 $10,233 $12,004 $13,811 $16,105 $18,915 $21,791 $22,226 $22,671 $23,124 $23,587 $24,059 $24,540 $25,031 $286,397 $168,439
Central Utah Water Conservancy District $1,672 $3,979 $6,924 $11,122 $15,428 $20,435 $25,554 $30,776 $36,103 $41,536 $48,436 $56,887 $65,536 $66,846 $68,183 $69,547 $70,938 $72,357 $73,804 $75,280 $861,343 $506,582
Total $18,258 $43,454 $75,610 $121,453 $168,471 $223,148 $279,054 $336,078 $394,242 $453,570 $528,922 $621,211 $715,650 $729,963 $744,562 $759,453 $774,642 $790,135 $805,938 $822,057 $9,405,871 $5,531,876
TOTAL INCREMENTAL VALUE:
INCREMENTAL TAX ANALYSIS:
TaxInc Budget
UPDATED 9 Line CRA (Scenario Analysis)
*Salt Lake County's participation rate to vary subject to the terms of the interlocal agreement with Salt Lake County
**Percentage of tax increment used for RDA administration and operations to vary subject to the terms of the interlocal agreement with Salt Lake County
Attachment C: 9 Line CRA Incremental Budget Analysis
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: March 3, 2021
PREPARED BY: Kort Utley
RE: Potential revisions to the Real Property Disposition Policy
REQUESTED ACTION: Consideration of a resolution that revises the Real Property Disposition
Policy
POLICY ITEM: Real Property Disposition Policy
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: Staff requests the Board of Directors (“Board”) consider a resolution
that revises the Redevelopment Agency’s (“Agency”) Real Property Disposition Policy (“Policy”).
The Policy was adopted in 2016, applies to all real property owned by the Agency and defines how
properties are characterized (Tier 1 or Tier 2), the reporting of dispositions to the Board, methods of
disposition, and the protocol for determining a given property’s sales/disposition price. The revisions
under consideration include the following:
Specifically authorizing long-term ground leases as a form of land disposition; and,
Adding restrictions to how the Agency disposes of property when exclusively negotiating
with adjacent property owners.
Staff discussed modifications to the Policy with the Board at the November 11, 2020 meeting. At that
time, the Board appeared to support the proposed modifications related to long-term ground leases.
Some Board members expressed a desire to further discuss the section of the Policy that allows the
Agency to exclusively negotiate with adjacent property owners for the disposition of Agency
property. Revisions to the Policy that would restrict how the Agency disposes of property in these
circumstances were discussed.
In Attachment B: Proposed Revisions to the Real Property Disposition Policy, staff has proposed
new restrictions to address Board members’ suggestions regarding exclusive negotiations with
adjacent property owners. Per these new restrictions, the Agency would be required to receive at least
90% of the fair market value of the property being disposed of when exclusively negotiating with an
adjacent property owner. This new requirement would apply only to the larger, more prominent
properties owned by the Agency, which are defined in the Policy as “Tier 1” properties.
These revisions are reflected in Attachment A: Resolution. A red-line format of the resolution
showing the proposed revisions is shown as Attachment B: Proposed Revisions to the Real Property
Disposition Policy.
ANALYSIS & ISSUES: Acquisition and disposition of land is one of the primary tools utilized by
the Agency to carry out its mission to revitalize neighborhoods and business district s. This tool, when
used strategically, provides the Agency the ability to foster revit alization in a neighborhood by
having direct control of various attributes of a redevelopment project, such as the project’s location,
when it’s constructed, the use of the building once constructed, and fulfillment of specific design and
placemaking objectives to best incorporate the project into the neighborhood.
Proposed changes to the Policy regarding ground leases:
The vast majority of Agency dispositions of real property are done through sale of the
property, wherein the Agency transfers title to a buyer for a set fee exchanged at closing.
There are circumstances when structuring a real estate project, however, when ground leases
may be a prudent land disposition option for the Agency, therefore staff proposes revising the
Policy to allow ground leases as a form of land disposition.
A ground lease involves leasing land for a long-term period—typically for 50 to 99 years—to
a tenant or lessee who constructs a building on the property. Tenants generally assume
responsibility for any and all expenses during the lease term. This includes construction,
repairs, renovations, improvements, taxes, insurance, and any financing costs associated with
the project constructed on the property. Ground leases typically allow the landlord to assume
ownership of all improvements on the property once the lease term expires.
Two factors make ground leases worth considering when disposing of Agency property:
By retaining ownership of the underlying property, ground leases give the Agency an
opportunity to realize the potential long-term economic value of its property while
simultaneously achieving more immediate redevelopment goals via the tenant’s
project constructed on the property.
Ground leases give the Agency’s private sector development partners an opportunity
to develop a project on Agency property without the burden of significant upfront
acquisition costs for land.
Staff proposes that ground leases be handled similarly to for-sale transactions in the Land
Disposition Policy. For example, if the Agency contemplates disposing of a property through
a ground lease, it would categorize the property as Tier 1 or Tier 2 and report the disposition
to the Board as directed by the Policy. The Agency would then market the property per the
methods allowed in the Policy. In addition, the Agency would follow the Policy’s Sales Price
Protocol whereby property discounts would be subject to approval by a majority vote o f the
Board if property is to be leased at a discount greater than 10% from appraised fair market
value.
These revisions to the Policy that would allow long-term ground leases as a form of property
disposition are represented in Attachment A: Resolution.
Proposed changes to the Policy regarding exclusive negotiations:
Per the Policy, the RDA may sell—or dispose of—real property in two ways: competitively
market the property (e.g. through a request for proposals) or exclusively negotiate for the sale
of the property. The RDA may only exclusively negotiate for the sale of property if one-of-
six criteria outlined in the Policy is met. One of these criterion is as follows:
“Disposition to an adjacent property owner to facilitate redevelopment objectives as
defined in a project area strategic plan.”
At the November 11, 2020 Board meeting, Board members discussed potential modifications
to this language that would restrict how the Agency disposes of property when exclusively
negotiating with adjacent property owners. Based on that discussion and subsequent
conversations with Board members, staff proposes revising the Policy to include the new
language underlined below:
“Disposition to an adjacent property owner to facilitate redevelopment objectives as
defined in a project area strategic plan. If the property being disposed of is a Tier 1
property, the price shall be at least 90% of the fair market value as determined by the
Disposition Price Protocol.
This modification would do three things:
Ensure the Agency receives fair compensation for its most premier properties in any
exclusive negotiation with an adjacent property owner; and
Prevent circumstances in which developers may seek to acquire Agency Tier 1
property at a discount by acquiring a property adjacent to Agency property and
subsequently requesting to exclusively negotiate with the Agency; and
Retain the Agency’s ability to exclusively negotiate with adjacent property owners
for Tier 2 properties, when appropriate and according to the Disposition Price
Protocol found in the Policy.
These revisions that add restrictions to the Policy regarding the disposition of Tier 1
properties when exclusively negotiating with adjacent property owners are represented in
Attachment A: Resolution.
Staff proposes the Board consider these revisions to the Policy that address long-term ground leases
and exclusive negotiations with adjacent property owners.
ATTACHMENTS:
A. Resolution
B. Proposed Revisions to Real Property Disposition Policy
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______
Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THE REAL
PROPERTY DISPOSITION POLICY
WHREAS, on October 18, 2016, pursuant to Resolution No. R-36-2016, the Board of
Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Real
Property Disposition Policy (“2016 Policy”), and
WHEREAS, the Board now desires to repeal and replace the 2016 Policy, and
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; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to
sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for
project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans,
strategic plans, and Salt Lake City master plans.
WHEREAS, the RDA’s disposition of real property includes the sale of real property or
long-term lease of real property. Such leases of real property for durations greater than
twenty-five years shall be referred to in this policy as “lease agreements.”
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Real Property
Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety
and replaced with the following:
1. Administration and Approval Process. Unless otherwise designated herein, the
administration and approval process for the disposition of RDA-owned real
property shall be conducted in the following manner:
a. The Board shall be provided reports on the status of all RDA-owned real
properties, including properties actively being disposed of, as according to
the Reporting procedures outlined herewith.
b. As determined by the RDA Executive Director, RDA-owned properties
may be identified as candidates for disposition and authorized to be
disposed of according to the Methods of Disposition contained herewith.
c. If a satisfactory offer is received on an RDA-owned property, and the
disposition terms and conditions are approved by the RDA Executive
Director, RDA staff shall dispose of the real property pursuant to the RDA’s
administrative procedures, unless disposition terms are required to be
forwarded to the Board for consideration and approval of the sales / lease
price according to the Disposition Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the
disposition price by a majority vote of the Board real property disposition
shall be arranged pursuant to the RDA’s administrative procedures.
e. The RDA Executive Director may enter into exclusive negotiation, option
to purchase, development agreements and lease agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by
the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be
categorized as either Tier 1 or Tier 2.
a. Tier 1 properties shall be real properties that are RDA-owned and meet at
least one of the following categories:
i. Property is specifically identified in a Salt Lake City adopted master
plan.
ii. Property is a parcel or parcel assemblage that totals two (2) or more
contiguous acres in size.
iii. Property is listed on the local or national register of historic places
as historically significant.
iv. Property is fronting or adjacent to city-owned property, other than a
public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise
included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board
with reports regarding the disposition and status of RDA-owned properties as
follows:
a. The RDA shall provide a written briefing to the Board, no less than semi-
annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2
properties. Such briefing shall also include an address and description of
each property, including the approximate size and zoning; description of
significant structures or improvements on the site; description of any
interim uses occurring on the site; disposition status; and timeframe for
potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be
provided at one of the Agency’s public meetings at the following stages of
the disposition process:
i. Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an
update to the Board as to the property’s reuse plan, method of
disposition, timeline of disposition, and other information relevant
to the disposition of the property.
ii. Developer / lessee Selection
RDA staff shall provide an update to the Board when a purchaser or
lessee has been selected with which to negotiate terms of the
disposition.
iii. Development Agreement / Lease Agreement
RDA staff shall provide an update to the Board when the RDA has
entered into a real estate purchase agreement or lease agreement
with the selected purchaser / lessee.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide
by all applicable laws and be conducted in a competitive and transparent manner as
deemed appropriate and effective. Further, disposition methods shall support the
RDA and Salt Lake City objectives as outlined in master plans, project area plans,
and other adopted policies. Disposition of property shall be consistent with the
RDA’s Housing Policy to determine if the inclusion of affordable housing is
required. All RDA-owned properties being disposed of shall be subject to a
development agreement, if being sold, a lease agreement, if being leased, or other
mechanism to ensure compliance with the intended reuse plan for the property.
Unless otherwise specified herein, RDA-owned properties shall be disposed of
through the use of the following methods:
a. Competitively Marketed
The RDA shall competitively market properties to create open and transparent
exposure to the marketplace. Methods to competitively market properties are
available for any RDA-owned property and include the following:
i. Request for qualifications (RFQ): to competitively market the
property through a time-limited qualifications-based selection
process.
ii. Request for proposals (RFP): to competitively market the property
through a time-limited project-based selection process.
iii. Market property on an open-ended basis: to competitively market
the property through a listing with a property broker or other
marketing channels.
b. Exclusively Negotiated
An exclusively negotiated disposition may be deemed appropriate and effective
at a sales or lease price as determined by the Disposition Price Protocol of this
policy, except as detailed in 5(b)(ii), and if at least one of the following criteria
is met:
i. The property is landlocked.
ii. Disposition to an adjacent property owner to facilitate
redevelopment objectives as defined in a project area strategic plan.
If the property being disposed of is a Tier 1 property, the price shall
be at least 90% of the fair market value as determined by the
Disposition Price Protocol.
iii. Disposition to a non-profit or governmental agency for a community
development or public use.
iv. Disposition of property that has been competitively offered with no
competitive responses received.
v. Disposition of property that has previously been used as a public
right of way that is no longer required for such purpose.
vi. If the property is being sold, the exchange of property to facilitate
redevelopment objectives as defined in a project area strategic plan.
6. Disposition Price Protocol. Unless otherwise specified herein, RDA shall dispose
of real property under the most advantageous terms that are appropriate for the
circumstances, and shall abide to the methodology outlined herein as follows:
a. The sales or lease price of the property shall be fair market value as determined
by an RDA-commissioned appraisal that is based on an as-is appraisal premise.
No Board approval shall be required for disposition at appraised fair market
value.
b. The sales or lease price may be discounted below fair market value to support
the implementation of project area strategic plans.
i. Property discounts shall be determined by a financial analysis of the
project, including a gap analysis that demonstrates the property
discount is necessary for the project to succeed. Market conditions,
economic trends, and public benefits relating to affordable housing
and economic development shall be considered when determining
property discounts.
ii. Property discounts are subject to approval by a majority vote of the
Board if property is to be sold or leased at a discount greater than
10% from appraised fair market value.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of ___, 2021.
Ana Valdemoros, Chairperson
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Allison Parks
Attest:
City Recorder
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______
Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THEADOPTING A
REAL PROPERTY DISPOSITION POLICY
WHREAS, on October 18, 2016, pursuant to Resolution No. R-36-2016, the Board of
Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Real
Property Disposition Policy (“2016 Policy”), and
WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (the
“Board”) Board now desires to repeal and replace formalize policies with respect to the
Redevelopmentthe 2016 Policy Agency of Salt Lake City’s (“RDA”) real property
disposition, and
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; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to
sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for
project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans,
strategic plans, and Salt Lake City master plans.
WHEREAS, the RDA’s disposition of real property includes the sale of real property or
long-term lease of real property. Such leases of real property for durations greater than
twenty-five years shall be referred to in this policy as “lease agreements.”
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Real Property
Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety
and replaced with the following:AS FOLLOWS:
1. Administration and Approval Process. Unless otherwise designated herein, the
administration and approval process for the disposition of RDA-owned real
property shall be conducted in the following manner:
a. The Board shall be provided reports on the status of all RDA-owned real
properties, including properties actively being disposed of, as according to
the Reporting procedures outlined herewith.
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
b. As determined by the RDA Executive Director, RDA-owned properties
may be identified as candidates for disposition and authorized to be
disposed of according to the Methods of Disposition contained herewith.
c. If a satisfactory offer is received on an RDA-owned property, and the
disposition terms and conditions are approved by the RDA Executive
Director, RDA staff shall dispose of the real property pursuant to the RDA’s
administrative procedures, unless disposition terms are required to be
forwarded to the Board for consideration and approval of the sales / lease
price according to the Sales Disposition Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the
sales disposition price by a majority vote of the Board real property
disposition shall be arranged pursuant to the RDA’s administrative
procedures.
e. The RDA Executive Director may enter into exclusive negotiation, option
to purchase, and development agreements and lease agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by
the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be
categorized as either Tier 1 or Tier 2.
a. Tier 1 properties shall be real properties that are RDA-owned and meet at
least one of the following categories:
i. Property is specifically identified in a Salt Lake City adopted master
plan.
ii. Property is a parcel or parcel assemblage that totals two (2) or more
contiguous acres in size.
iii. Property is listed on the local or national register of historic places
as historically significant.
iv. Property is fronting or adjacent to city-owned property, other than a
public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise
included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board
with reports regarding the disposition and status of RDA-owned properties as
follows:
a. The RDA shall provide a written briefing to the Board, no less than semi-
annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2
properties. Such briefing shall also include an address and description of
each property, including the approximate size and zoning; description of
significant structures or improvements on the site; description of any
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
interim uses occurring on the site; disposition status; and timeframe for
potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be
provided at one of the Agency’s public meetings at the following stages of
the disposition process:
i. Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an
update to the Board as to the property’s reuse plan, method of
disposition, timeline of disposition, and other information relevant
to the disposition of the property.
ii. Developer / lessee Selection
RDA staff shall provide an update to the Board when a purchaser or
lessee has been selected with which to negotiate terms of the sale
disposition.
iii. Development Agreement / Lease Agreement
RDA staff shall provide an update to the Board when the RDA has
entered into a real estate purchase agreement or lease agreement
with the selected purchaser / lessee.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide
by all applicable laws and be conducted in a competitive and transparent manner as
deemed appropriate and effective. Further, disposition methods shall support the
RDA and Salt Lake City objectives as outlined in master plans, project area plans,
and other adopted policies. Disposition of property shall be consistent with the
RDA’s Housing Policy to determine if the inclusion of affordable housing is
required. All RDA-owned properties being disposed of shall be subject to a
development agreement, if being sold, a lease agreement, if being leased, or other
mechanism to ensure compliance with the intended reuse plan for the property.
Unless otherwise specified herein, RDA-owned properties shall be disposed of
through the use of the following methods:
a. Competitively Marketed
The RDA shall competitively market properties to create open and transparent
exposure to the marketplace. Methods to competitively market properties are
available for any RDA-owned property and include the following:
i. Request for qualifications (RFQ): to competitively market the
property through a time-limited qualifications-based selection
process.
ii. Request for proposals (RFP): to competitively market the property
through a time-limited project-based selection process.
iii. Market property on an open-ended basis: to competitively market
the property through a listing with a property broker or other
marketing channels.
b. Exclusively Negotiated
An exclusively negotiated sale disposition may be deemed appropriate and
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
effective at a sales or lease price as determined by the Disposition Price
Protocol of this policy, except as detailed in 5(b)(ii), and only if at least one of
the following criteria is met:
i. The property is landlocked.
ii. Disposition Sale to an adjacent property owner to facilitate
redevelopment objectives as defined in a project area strategic plan.
If the property being disposed of is a Tier 1 property, the price shall be
at least 90% of the fair market value as determined by the Disposition
Price Protocol.
iii. Disposition Sale to a non-profit or governmental agency for a
community development or public use.
iv. Disposition Sale of property that has been competitively offered
with no competitive responses received.
v. Disposition Sale of property that has previously been used as a
public right of way that is no longer required for such purpose.
vi. If the property is being sold, the exchange of property to facilitate
redevelopment objectives as defined in a project area strategic plan.
6. Disposition Sales Price Protocol. Unless otherwise specified herein, RDA shall
dispose of real property under the most advantageous terms that are appropriate for
the circumstances, and shall abide to the methodology outlined herein as follows:
a. The sales or lease price of the property shall be fair market value as determined
by an RDA-commissioned appraisal that is based on an as-is appraisal premise.
No Board approval shall be required for disposition at appraised fair market
value.
b. Property The sales or lease price may be discounted below fair market value to
support the implementation of project area strategic plans.
i. Property discounts shall be determined by a financial analysis of the
project, including a gap analysis that demonstrates the property
discount is necessary for the project to succeed. Market conditions,
economic trends, and public benefits relating to affordable housing
and economic development shall be considered when determining
property discounts.
ii. Property discounts are subject to approval by a majority vote of the
Board if property is to be sold or leased at a discount greater than
10% from appraised fair market value.
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of ___, 2021.
Ana Valdemoros, Chairperson
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Allison Parks
Attest:
City Recorder
DEPARTMENT of ECONOMIC DEVELOPMENT
WWW.SLCGOV.COM WWW.SLCRDA.COM WWW.SALTLAKEARTS.ORG
ERIN MENDENHALL
MAYOR
EXECUTIVE DIRECTOR, RDA
BEN KOLENDAR
DIRECTOR
DATE: November 19, 2020
PREPARED BY: Kort Utley
RE: Revisions to Real Property Disposition Policy
REQUESTED ACTION: Consideration of a resolution that revises the Real Property Disposition
Policy
POLICY ITEM: Real Property Disposition Policy
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: Staff requests the Board of Directors (“Board”) consider a resolution
that modifies the Redevelopment Agency’s (“Agency”) Real Property Disposition Policy (“Policy”).
The modifications under consideration were discussed by the Board at the November 11, 2020
meeting and include the following:
Specifically authorizing long-term ground leases as a form of land disposition; and,
Clarifying that exclusively negotiated dispositions must follow the Disposition Price Protocol
found in the Policy.
These revisions are reflected in Attachment A: Resolution. A red-line format of the resolution
showing the modifications to the existing policy is shown as Attachment B: Proposed Revisions to
the Real Property Disposition Policy.
Acquisition and disposition of land is one of the primary tools utilized by the Redevelopment Agency
(“Agency”) to carry out its mission of neighborhood revitalization. This tool, when used
strategically, provides the Agency with the ability to foster revitalization in a neighborhood by
having direct control of various attributes of a redevelopment project , such as the project’s location,
when it’s constructed, the use of the building once constructed, and fulfillment of specific design and
placemaking objectives to best incorporate the project into the neighborhood.
Authorizing long-term ground leases as a form of land disposition would provide the Agency with
greater flexibility when structuring real estate transactions in a manner that maximizes public benefit.
ANALYSIS & ISSUES: Disposition of Agency-owned property is governed by the Real Property
Disposition Policy that was adopted by the Board in October, 2016 (“Existing Policy”). The Existing
Policy applies to all real property owned by the Agency and defines how properties are characterized
(Tier 1 or Tier 2), the reporting of dispositions to the Board, methods of disposition, and the protocol
for determining a given property’s sales / disposition price.
Proposed changes to the Existing Policy regarding ground leases:
The vast majority of Agency dispositions of real property are done through sale of the
property, wherein the Agency transfers title to a buyer for a set fee exchanged at closing.
There are circumstances when structuring a real estate project, however, when ground leases
may be a prudent land disposition option for the Agency, therefore staff proposes revising the
Existing Policy to allow ground leases as a form of land disposition.
A ground lease involves leasing land for a long-term period—typically for 50 to 99 years—to
a tenant or lessee who constructs a building on the property. Tenants generally assume
responsibility for any and all expenses during the lease term. This includes construction,
repairs, renovations, improvements, taxes, insurance, and any financing costs associated with
the project constructed on the property. Ground leases typically allow the landlord to assume
ownership of all improvements on the property once the lease term expires.
Two factors make ground leases an option to consider when disposing of Agency property:
By retaining ownership of the underlying property, ground leases give the Agency an
opportunity to realize the potential long-term economic value of its property while
simultaneously achieving more immediate redevelopment goals via the tenant’s
project constructed on the property.
Ground leases give the Agency’s private sector development partners an opportunity
to develop a project on Agency property without the burden of significant upfront
acquisition costs for land.
Staff proposes that ground leases be handled similarly to for-sale transactions in the Land
Disposition Policy. For example, if the Agency contemplated disposing of a property
through a ground lease, it would categorize the property as Tier 1 or Tier 2 and report the
disposition to the Board accordingly. The Agency would then market the property per the
methods allowed in the Existing Policy. In addition, the Agency would follow the Existing
Policy’s Sales Price Protocol whereby property discounts would be subject to approval by a
majority vote of the Board if property is to be leased at a discount greater than 10% from
appraised fair market value.
These potential revisions to the Existing Policy that would allow long-term ground leases as a
form of property disposition are represented in Attachment A: Resolution.
Proposed changes to the Existing Policy regarding exclusive negotiations:
Per the Existing Policy, the RDA may sell—or dispose of—real property in two ways:
competitively market the property (e.g. through a request for proposals) or exclusively
negotiate for the sale of the property. The RDA may only exclusively negotiate for the sale
of property if one-of-six criteria outlined in the Existing Policy is met.
Staff proposes revising the Existing Policy to clarify that exclusively negotiated dispositions
must follow the Disposition Price Protocol found in the policy. This revision emphasizes the
requirement that any exclusively negotiated property leased or sold at a discount greater than
10% from appraised fair market value would require Board approval.
ATTACHMENTS:
A. Resolution
B. Proposed Revisions to Real Property Disposition Policy
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______
Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THE REAL
PROPERTY DISPOSITION POLICY
WHREAS, on October 18, 2016, pursuant to Resolution No. R-36-2016, the Board of
Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Real
Property Disposition Policy (“2016 Policy”), and
WHEREAS, the Board now desires to repeal and replace the 2016 Policy, and
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; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to
sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for
project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans,
strategic plans, and Salt Lake City master plans.
WHEREAS, the RDA’s disposition of real property includes the sale of real property or
long-term lease of real property. Such leases of real property for durations greater than
twenty-five years shall be referred to in this policy as “lease agreements.”
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Real Property
Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety
and replaced with the following:
1. Administration and Approval Process. Unless otherwise designated herein, the
administration and approval process for the disposition of RDA-owned real
property shall be conducted in the following manner:
a. The Board shall be provided reports on the status of all RDA-owned real
properties, including properties actively being disposed of, as according to
the Reporting procedures outlined herewith.
b. As determined by the RDA Executive Director, RDA-owned properties
may be identified as candidates for disposition and authorized to be
disposed of according to the Methods of Disposition contained herewith.
c. If a satisfactory offer is received on an RDA-owned property, and the
disposition terms and conditions are approved by the RDA Executive
Director, RDA staff shall dispose of the real property pursuant to the RDA’s
administrative procedures, unless disposition terms are required to be
forwarded to the Board for consideration and approval of the sales / lease
price according to the Disposition Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the
disposition price by a majority vote of the Board real property disposition
shall be arranged pursuant to the RDA’s administrative procedures.
e. The RDA Executive Director may enter into exclusive negotiation, option
to purchase, development agreements and lease agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by
the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be
categorized as either Tier 1 or Tier 2.
a. Tier 1 properties shall be real properties that are RDA-owned and meet at
least one of the following categories:
i. Property is specifically identified in a Salt Lake City adopted master
plan.
ii. Property is a parcel or parcel assemblage that totals two (2) or more
contiguous acres in size.
iii. Property is listed on the local or national register of historic places
as historically significant.
iv. Property is fronting or adjacent to city-owned property, other than a
public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise
included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board
with reports regarding the disposition and status of RDA-owned properties as
follows:
a. The RDA shall provide a written briefing to the Board, no less than semi-
annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2
properties. Such briefing shall also include an address and description of
each property, including the approximate size and zoning; description of
significant structures or improvements on the site; description of any
interim uses occurring on the site; disposition status; and timeframe for
potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be
provided at one of the Agency’s public meetings at the following stages of
the disposition process:
i. Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an
update to the Board as to the property’s reuse plan, method of
disposition, timeline of disposition, and other information relevant
to the disposition of the property.
ii. Developer / lessee Selection
RDA staff shall provide an update to the Board when a purchaser or
lessee has been selected with which to negotiate terms of the
disposition.
iii. Development Agreement / Lease Agreement
RDA staff shall provide an update to the Board when the RDA has
entered into a real estate purchase agreement or lease agreement
with the selected purchaser / lessee.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide
by all applicable laws and be conducted in a competitive and transparent manner as
deemed appropriate and effective. Further, disposition methods shall support the
RDA and Salt Lake City objectives as outlined in master plans, project area plans,
and other adopted policies. Disposition of property shall be consistent with the
RDA’s Housing Policy to determine if the inclusion of affordable housing is
required. All RDA-owned properties being disposed of shall be subject to a
development agreement, if being sold, a lease agreement, if being leased, or other
mechanism to ensure compliance with the intended reuse plan for the property.
Unless otherwise specified herein, RDA-owned properties shall be disposed of
through the use of the following methods:
a. Competitively Marketed
The RDA shall competitively market properties to create open and transparent
exposure to the marketplace. Methods to competitively market properties are
available for any RDA-owned property and include the following:
i. Request for qualifications (RFQ): to competitively market the
property through a time-limited qualifications-based selection
process.
ii. Request for proposals (RFP): to competitively market the property
through a time-limited project-based selection process.
iii. Market property on an open-ended basis: to competitively market
the property through a listing with a property broker or other
marketing channels.
b. Exclusively Negotiated
An exclusively negotiated disposition may be deemed appropriate and effective
at a sales or lease price as determined by the Disposition Price Protocol of this
policy, and if at least one of the following criteria is met:
i. The property is landlocked.
ii. Disposition to an adjacent property owner to facilitate
redevelopment objectives as defined in a project area strategic plan.
iii. Disposition to a non-profit or governmental agency for a community
development or public use.
iv. Disposition of property that has been competitively offered with no
competitive responses received.
v. Disposition of property that has previously been used as a public
right of way that is no longer required for such purpose.
vi. If the property is being sold, the exchange of property to facilitate
redevelopment objectives as defined in a project area strategic plan.
6. Disposition Price Protocol. Unless otherwise specified herein, RDA shall dispose
of real property under the most advantageous terms that are appropriate for the
circumstances, and shall abide to the methodology outlined herein as follows:
a. The sales or lease price of the property shall be fair market value as determined
by an RDA-commissioned appraisal that is based on an as-is appraisal premise.
No Board approval shall be required for disposition at appraised fair market
value.
b. The sales or lease price may be discounted below fair market value to support
the implementation of project area strategic plans.
i. Property discounts shall be determined by a financial analysis of the
project, including a gap analysis that demonstrates the property
discount is necessary for the project to succeed. Market conditions,
economic trends, and public benefits relating to affordable housing
and economic development shall be considered when determining
property discounts.
ii. Property discounts are subject to approval by a majority vote of the
Board if property is to be sold or leased at a discount greater than
10% from appraised fair market value.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of ___, 2020.
Amy Fowler, Chairperson
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Allison Parks
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______
Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THEADOPTING A
REAL PROPERTY DISPOSITION POLICY
WHREAS, on October 18, 2016, pursuant to Resolution No. R-36-2016, the Board of
Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Real
Property Disposition Policy (“2016 Policy”), and
WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (the
“Board”) Board now desires to repeal and replace formalize policies with respect to the
Redevelopmentthe 2016 Policy Agency of Salt Lake City’s (“RDA”) real property
disposition, and
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; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to
sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for
project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans,
strategic plans, and Salt Lake City master plans.
WHEREAS, the RDA’s disposition of real property includes the sale of real property or
long-term lease of real property. Such leases of real property for durations greater than
twenty-five years shall be referred to in this policy as “lease agreements.”
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Real Property
Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety
and replaced with the following:AS FOLLOWS:
1. Administration and Approval Process. Unless otherwise designated herein, the
administration and approval process for the disposition of RDA-owned real
property shall be conducted in the following manner:
a. The Board shall be provided reports on the status of all RDA-owned real
properties, including properties actively being disposed of, as according to
the Reporting procedures outlined herewith.
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
b. As determined by the RDA Executive Director, RDA-owned properties
may be identified as candidates for disposition and authorized to be
disposed of according to the Methods of Disposition contained herewith.
c. If a satisfactory offer is received on an RDA-owned property, and the
disposition terms and conditions are approved by the RDA Executive
Director, RDA staff shall dispose of the real property pursuant to the RDA’s
administrative procedures, unless disposition terms are required to be
forwarded to the Board for consideration and approval of the sales / lease
price according to the Sales Disposition Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the
sales disposition price by a majority vote of the Board real property
disposition shall be arranged pursuant to the RDA’s administrative
procedures.
e. The RDA Executive Director may enter into exclusive negotiation, option
to purchase, and development agreements and lease agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by
the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be
categorized as either Tier 1 or Tier 2.
a. Tier 1 properties shall be real properties that are RDA-owned and meet at
least one of the following categories:
i. Property is specifically identified in a Salt Lake City adopted master
plan.
ii. Property is a parcel or parcel assemblage that totals two (2) or more
contiguous acres in size.
iii. Property is listed on the local or national register of historic places
as historically significant.
iv. Property is fronting or adjacent to city-owned property, other than a
public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise
included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board
with reports regarding the disposition and status of RDA-owned properties as
follows:
a. The RDA shall provide a written briefing to the Board, no less than semi-
annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2
properties. Such briefing shall also include an address and description of
each property, including the approximate size and zoning; description of
significant structures or improvements on the site; description of any
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
interim uses occurring on the site; disposition status; and timeframe for
potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be
provided at one of the Agency’s public meetings at the following stages of
the disposition process:
i. Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an
update to the Board as to the property’s reuse plan, method of
disposition, timeline of disposition, and other information relevant
to the disposition of the property.
ii. Developer / lessee Selection
RDA staff shall provide an update to the Board when a purchaser or
lessee has been selected with which to negotiate terms of the sale
disposition.
iii. Development Agreement / Lease Agreement
RDA staff shall provide an update to the Board when the RDA has
entered into a real estate purchase agreement or lease agreement
with the selected purchaser / lessee.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide
by all applicable laws and be conducted in a competitive and transparent manner as
deemed appropriate and effective. Further, disposition methods shall support the
RDA and Salt Lake City objectives as outlined in master plans, project area plans,
and other adopted policies. Disposition of property shall be consistent with the
RDA’s Housing Policy to determine if the inclusion of affordable housing is
required. All RDA-owned properties being disposed of shall be subject to a
development agreement, if being sold, a lease agreement, if being leased, or other
mechanism to ensure compliance with the intended reuse plan for the property.
Unless otherwise specified herein, RDA-owned properties shall be disposed of
through the use of the following methods:
a. Competitively Marketed
The RDA shall competitively market properties to create open and transparent
exposure to the marketplace. Methods to competitively market properties are
available for any RDA-owned property and include the following:
i. Request for qualifications (RFQ): to competitively market the
property through a time-limited qualifications-based selection
process.
ii. Request for proposals (RFP): to competitively market the property
through a time-limited project-based selection process.
iii. Market property on an open-ended basis: to competitively market
the property through a listing with a property broker or other
marketing channels.
b. Exclusively Negotiated
An exclusively negotiated sale disposition may be deemed appropriate and
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
effective at a sales or lease price as determined by the Disposition Price
Protocol of this policy, and only if at least one of the following criteria is met:
i. The property is landlocked.
ii. Disposition Sale to an adjacent property owner to facilitate
redevelopment objectives as defined in a project area strategic plan.
iii. Disposition Sale to a non-profit or governmental agency for a
community development or public use.
iv. Disposition Sale of property that has been competitively offered
with no competitive responses received.
v. Disposition Sale of property that has previously been used as a
public right of way that is no longer required for such purpose.
vi. If the property is being sold, the exchange of property to facilitate
redevelopment objectives as defined in a project area strategic plan.
6. Disposition Sales Price Protocol. Unless otherwise specified herein, RDA shall
dispose of real property under the most advantageous terms that are appropriate for
the circumstances, and shall abide to the methodology outlined herein as follows:
a. The sales or lease price of the property shall be fair market value as determined
by an RDA-commissioned appraisal that is based on an as-is appraisal premise.
No Board approval shall be required for disposition at appraised fair market
value.
b. Property The sales or lease price may be discounted below fair market value to
support the implementation of project area strategic plans.
i. Property discounts shall be determined by a financial analysis of the
project, including a gap analysis that demonstrates the property
discount is necessary for the project to succeed. Market conditions,
economic trends, and public benefits relating to affordable housing
and economic development shall be considered when determining
property discounts.
ii. Property discounts are subject to approval by a majority vote of the
Board if property is to be sold or leased at a discount greater than
10% from appraised fair market value.
ATTACHMENT B: PROPOSED REVISIONS TO THE REAL PROPERTY
DISPOSITION POLICY
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of ___, 2020.
Amy Fowler, Chairperson
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Allison Parks
DEPARTMENT of ECONOMIC DEVELOPMENT
WWW.SLCGOV.COM WWW.SLCRDA.COM WWW.SALTLAKEARTS.ORG
ERIN MENDENHALL
MAYOR
EXECUTIVE DIRECTOR, RDA
BEN KOLENDAR
DIRECTOR
DATE: August 21, 2020
PREPARED BY: Kort Utley
RE: Potential revisions to Real Property Disposition Policy
REQUESTED ACTION: Briefing and policy discussion
POLICY ITEM: Real Property Disposition Policy
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: Staff would like to discuss potential revisions to the Redevelopment
Agency’s (“Agency”) Real Property Disposition Policy with the Board of Directors (“Board”). The
potential revisions would do the following:
• Specifically authorize long-term ground leases as a form of land disposition; and,
• Clarify the circumstances in which the RDA can exclusively negotiate the disposition of a
property.
These revisions are reflected in red-line format in Attachment A: Proposed Revisions to Real
Property Disposition Policy, which staff submits to the Board for discussion.
Acquisition and disposition of land is one of the primary tools utilized by the Redevelopment Agency
(“Agency”) to carry out its mission of neighborhood revitalization. This tool, when used
strategically, provides the Agency with the ability to foster revitalization in a neighborhood by
having direct control of various attributes of a redevelopment project, such as the project’s location,
when it’s constructed, the use of the building once constructed, and fulfillment of specific design and
placemaking objectives to best incorporate the project into the neighborhood.
Authorizing long-term ground leases as a form of land disposition would provide the Agency with
greater flexibility when structuring real estate transactions in a manner that maximizes public benefit.
ANALYSIS & ISSUES: Disposition of Agency-owned property is governed by the Real Property
Disposition Policy that was adopted by the Board in October, 2016 (“Existing Policy”). The Existing
Policy applies to all real property owned by the Agency and defines how properties are characterized
(Tier 1 or Tier 2), the reporting of dispositions to the Board, methods of disposition, and the protocol
for determining a given property’s sales / disposition price.
Proposed changes to the Existing Policy regarding ground leases:
The vast majority of Agency dispositions of real property are done through sale of the
property, wherein the Agency transfers title to a buyer for a set fee exchanged at closing.
There are circumstances when structuring a real estate project, however, when ground leases
may be a prudent land disposition option for the Agency, therefore staff proposes revising the
Existing Policy to allow ground leases as a form of land disposition.
A ground lease involves leasing land for a long-term period—typically for 50 to 99 years—to
a tenant or lessee who constructs a building on the property. Tenants generally assume
responsibility for any and all expenses during the lease term. This includes construction,
repairs, renovations, improvements, taxes, insurance, and any financing costs associated with
the project constructed on the property. Ground leases typically allow the landlord to assume
ownership of all improvements on the property once the lease term expires.
Two factors make ground leases an option to consider when disposing of Agency property:
• By retaining ownership of the underlying property, ground leases give the Agency an
opportunity to realize the potential long-term economic value of its property while
simultaneously achieving more immediate redevelopment goals via the tenant’s
project constructed on the property.
• Ground leases give the Agency’s private sector development partners an opportunity
to develop a project on Agency property without the burden of significant upfront
acquisition costs for land.
Staff proposes that ground leases be handled similarly to for-sale transactions in the Land
Disposition Policy. For example, if the Agency contemplated disposing of a property
through a ground lease, it would categorize the property as Tier 1 or Tier 2 and report the
disposition to the Board accordingly. The Agency would then market the property per the
methods allowed in the Existing Policy. In addition, the Agency would follow the Existing
Policy’s Sales Price Protocol whereby property discounts would be subject to approval by a
majority vote of the Board if property is to be leased at a discount greater than 10% from
appraised fair market value.
These potential revisions to the Existing Policy that would allow long-term ground leases as a
form of property disposition are represented in Attachment A: Proposed Revisions to the Real
Property Disposition Policy.
Proposed changes to the Existing Policy regarding exclusive negotiations:
Per the Existing Policy, the RDA may sell—or dispose of—real property in two ways:
competitively market the property (e.g. through a request for proposals) or exclusively
negotiate for the sale of the property. The RDA may only exclusively negotiate for the sale
of property if one-of-six criteria outlined in the Existing Policy is met.
Staff proposes revising the Existing Policy to clarify that exclusively negotiated dispositions
must follow the Disposition Price Protocol found in the policy. This revision emphasizes the
requirement that any exclusively negotiated property leased or sold at a discount greater than
10% from appraised fair market value would require Board approval.
ATTACHMENTS:
A. Proposed Revisions to Real Property Disposition Policy
ATTACHMENT A: Proposed Revisions to Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY ADOPTING A REAL PROPERTY DISPOSITION
POLICY
WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (the
“Board”) desires to formalize policies with respect to the Redevelopment Agency of Salt
Lake City’s (“RDA”) real property disposition, and
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; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to
sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for
project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans,
strategic plans, and Salt Lake City master plans.
WHEREAS, the RDA’s disposition of real property includes the sale of real property
or long-term lease of real property. Such leases of real property for durations greater
than twenty five years shall be referred to in this policy as “lease agreements.”
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, AS FOLLOWS:
1. Administration and Approval Process. Unless otherwise designated herein, the
administration and approval process for the disposition of RDA-owned real
property shall be conducted in the following manner:
a. The Board shall be provided reports on the status of all RDA-owned real
properties, including properties actively being disposed of, as according to
the Reporting procedures outlined herewith.
b. As determined by the RDA Executive Director, RDA-owned properties
may be identified as candidates for disposition and authorized to be
disposed of according to the Methods of Disposition contained herewith.
c. If a satisfactory offer is received on an RDA-owned property, and the
disposition terms and conditions are approved by the RDA Executive
Director, RDA staff shall dispose of the real property pursuant to the RDA’s
administrative procedures, unless disposition terms are required to be
forwarded to the Board for consideration and approval of the sales / lease
price according to the Sales Disposition Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the
sales disposition price by a majority vote of the Board real property
disposition shall be arranged pursuant to the RDA’s administrative
procedures.
e. The RDA Executive Director may enter into exclusive negotiation, option
to purchase, and development agreements and lease agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by
the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be
categorized as either Tier 1 or Tier 2.
a. Tier 1 properties shall be real properties that are RDA-owned and meet at
least one of the following categories:
i. Property is specifically identified in a Salt Lake City adopted master
plan.
ii. Property is a parcel or parcel assemblage that totals two (2) or more
contiguous acres in size.
iii. Property is listed on the local or national register of historic places
as historically significant.
iv. Property is fronting or adjacent to city-owned property, other than a
public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise
included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board
with reports regarding the disposition and status of RDA-owned properties as
follows:
a. The RDA shall provide a written briefing to the Board, no less than semi-
annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2
properties. Such briefing shall also include an address and description of
each property, including the approximate size and zoning; description of
significant structures or improvements on the site; description of any
interim uses occurring on the site; disposition status; and timeframe for
potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be
provided at one of the Agency’s public meetings at the following stages of
the disposition process:
i. Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an
update to the Board as to the property’s reuse plan, method of
disposition, timeline of disposition, and other information relevant
to the disposition of the property.
ii. Developer / lessee Selection
RDA staff shall provide an update to the Board when a purchaser or
lessee has been selected with which to negotiate terms of the sale
disposition.
iii. Development Agreement / Lease Agreement
RDA staff shall provide an update to the Board when the RDA has
entered into a real estate purchase agreement or lease agreement
with the selected purchaser / lessee.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide
by all applicable laws and be conducted in a competitive and transparent manner as
deemed appropriate and effective. Further, disposition methods shall support the
RDA and Salt Lake City objectives as outlined in master plans, project area plans,
and other adopted policies. Disposition of property shall be consistent with the
RDA’s Housing Policy to determine if the inclusion of affordable housing is
required. All RDA-owned properties being disposed of shall be subject to a
development agreement, if being sold, a lease agreement, if being leased, or other
mechanism to ensure compliance with the intended reuse plan for the property.
Unless otherwise specified herein, RDA-owned properties shall be disposed of
through the use of the following methods:
a. Competitively Marketed
The RDA shall competitively market properties to create open and transparent
exposure to the marketplace. Methods to competitively market properties are
available for any RDA-owned property and include the following:
i. Request for qualifications (RFQ): to competitively market the
property through a time-limited qualifications-based selection
process.
ii. Request for proposals (RFP): to competitively market the property
through a time-limited project-based selection process.
iii. Market property on an open-ended basis: to competitively market
the property through a listing with a property broker or other
marketing channels.
b. Exclusively Negotiated
An exclusively negotiated sale disposition may be deemed appropriate and
effective at a sales or lease price as determined by the Disposition Price
Protocol of this policy, and only if at least one of the following criteria is met:
i. The property is landlocked.
ii. Disposition Sale to an adjacent property owner to facilitate
redevelopment objectives as defined in a project area strategic plan.
iii. Disposition Sale to a non-profit or governmental agency for a
community development or public use.
iv. Disposition Sale of property that has been competitively offered
with no competitive responses received.
v. Disposition Sale of property that has previously been used as a
public right of way that is no longer required for such purpose.
vi. If the property is being sold, the exchange of property to facilitate
redevelopment objectives as defined in a project area strategic plan.
6. Disposition Sales Price Protocol. Unless otherwise specified herein, RDA shall
dispose of real property under the most advantageous terms that are appropriate for
the circumstances, and shall abide to the methodology outlined herein as follows:
a. The sales or lease price of the property shall be fair market value as determined
by an RDA-commissioned appraisal that is based on an as-is appraisal premise.
No Board approval shall be required for sale disposition at appraised fair
market value.
b. Property The sales or lease price may be discounted below fair market value to
support the implementation of project area strategic plans.
i. Property discounts shall be determined by a financial analysis of the
project, including a gap analysis that demonstrates the property
discount is necessary for the project to succeed. Market conditions,
economic trends, and public benefits relating to affordable housing
and economic development shall be considered when determining
property discounts.
ii. Property discounts are subject to approval by a majority vote of the
Board if property is to be sold or leased at a discount greater than
10% from appraised fair market value.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of ___, 2020
Amy Fowler, Chairperson
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
Allison Parks
REDEVELOPMENT AGENCY OF SLC
HOUSING DEVELOPMENT LOAN PROGRAM POLICY
RDA BOARD OF DIRECTORS MEETING –MARCH 23, 2021
HDLP OVERVIEW –STATUS, PURPOSE, & FUNDS
Status
•The Policy has been revised based on feedback provided by the Board at the February
meeting.
Purpose
•To provide low-cost financial assistance to incentivize the development and preservation of
affordable housing within Salt Lake City municipal boundaries. The HDLP shall provide a
centralized application, underwriting, and approval process regardless of the fund source .
Sources of Funds
•A combination of fund sources as established through the Housing Allocation Funds Policy.
•Funding allocations shall be administered through the HDLP to a project directly from an
individual fund source with revenues, expenditures, interest, payments and repayments
accounted for from the fund source.
HDLP OVERVIEW –ALLOCATIONS, PRIORITIES,
ADMINISTRATION
Intent Statements
•Intent Statements: The Policy includes general intent statements that are applicable to all
funding sources and meant to remain relevant as conditions change.
Annual Funding Priorities & Allocations
•The RDA shall present an Annual Housing Development Funding Strategy “Funding Strategy”
prior to the annual budget process that shall include proposed revenues and funding priorities
to be administered through the HDLP for the next fiscal year.
Administrative Process
•Funding shall be administered through a transparent notice of funding availability (“NOFA”)
process and shall incorporate the funding priorities as determined annually by the Board.
HDLP –EVALUATION & APPROVAL PROCESS,
MONITORING & COMPLIANCE
Evaluation & Approval Process
•For each issued NOFA, the RDA shall evaluate and consider applications for approval as
follows:
1.Eligibility Review
2.Review Committee Recommendation
3.RDA Board of Directors Approval
4.Funding Commitment
Monitoring & Compliance
•The RDA shall be required to monitor, or contract with a third party to monitor, the projects
funded through the HDLP.
REVISIONS –INTENT STATEMENTS (1 of 2)
The Intent Statements (Section 2) have been revised as follows:
1.Provide a mix of affordable housing, serving a range of households and income levels,
consistent with income limits and affordability requirements for each fund source, to promote
housing opportunity and choice throughout the City for household sizes ranging from
single persons to families.
2.Foster a mix of household incomes in projects and neighborhoods and to disperse
affordable housing projects throughout the City to achieve a balance of incomes in all
neighborhoods and communities.
3.Promote equity and anti-displacement efforts through the development and preservation of
affordable housing in low-income neighborhoods where underserved groups have historic
ties, including neighborhoods where low-income individuals and families are at high risk of
displacement.
Note: New text in purple.
REVISIONS –INTENT STATEMENTS (2 of 2)
4.Contribute to the development of sustainable, walkable neighborhoods to expand housing
choice near transportation, services, and economic opportunity.
5.Support an array of scale of project types, including detached housing, accessory dwelling
units, rowhouses, and small to large scale multifamily buildings, that contribute to
neighborhood context and livability.
6.Incorporate green-building elements and energy efficiency to lower housing expenses,
conserve resources, and promote resiliency.
7.Leverage private and non-city funding sources to ensure the greatest number of quality
affordable housing units are preserved or produced.
8.Be provided as loans that are repaid over time and not grants, forgivable loans, or
indefinitely deferred loans.
Note: New text in purple.
REVISIONS -LOAN MODIFICATIONS
A new section (Loan Modifications, Section 8) has been added to the Policy that clarifies the process
for payment forbearance, payment deferment, and loan write-down,as follows:
•Adjustments to loan terms shall be considered on a case-by-case basis and shall be subject
to a thorough review of the project’s financial standing and other relevant information.
o Forbearance/Deferment: The Executive Director of the RDA may elect to provide the
Borrower a temporary forbearance or deferment of payment for up to one (1) year. For
periods of forbearance or deferment longer than one (1) year, the Review Committee
shall provide a recommendation that is forwarded to the Board, who shall consider and
act upon all such requests.
o Loan Write-down: The Review Committee shall provide a recommendation that is
forwarded to the Board, who shall consider and act upon all such requests.
REVISIONS –UNDERWRITING GUIDELINES
The Underwriting Guidelines (Exhibit A-C) have been revised as follows:
•Limits to Assistance:
o Clarification that funding shall be sized in proportion to the affordable component.
•Base Interest Rate:
o Rather than being a static interest rate, the base interest rates are tied to the U.S.
Treasury Yield Curve Rate with a maximum cap.
•Affordability Restriction
o Clarification that the restriction is for both rent and income.
o Reduction in the affordability period for homeownership from 30 years to 15 years.
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: March 4, 2021
PREPARED BY: Tammy Hunsaker
RE: Housing Development Loan Program Policy Follow-up
REQUESTED ACTION: Consider approval of a resolution establishing a policy for a Housing
Development Loan Program.
POLICY ITEM: Affordable housing.
BUDGET IMPACTS: N/A.
EXECUTIVE SUMMARY: Over the past several months, the Redevelopment Agency of Salt Lake
City (“RDA”) has been working to establish a Housing Development Loan Program (“Program”)
intended to provide a one-stop-shop for community partners to access resources for the development
and preservation of affordable housing. During the February 2021 meeting of the RDA Board of
Directors (“Board”), the Board reviewed a preliminary draft of the Housing Development Loan
Program Policy (“Policy”). The Policy resolution has been updated to incorporate feedback and
comments provided by RAC and the Board. An approved-as-to-form version of the resolution is
provided as Attachment A for the Board’s consideration.
REDEVELOPMENT ADVISORY COMMITTEE RECOMMENDATION: On March 3, 2021,
the Redevelopment Advisory Committee (“RAC”) convened to review the Housing Development
Loan Program Policy, and recommended approval of the policy as presented as Attachment A.
ANALYSIS & ISSUES: Additional detail on the housing discussion background and substantive
revisions to the Policy is as follows:
I. Background
The formation of the Program has been several months in the making. During this time, RDA
Staff has provided multiple briefings to the Board on various RDA housing topics, including
housing activities, requirements, and outcomes. Additionally, in February of 2020, RDA
Staff briefed the Board on the Draft Salt Lake City Housing Implementation Framework,
jointly developed by the RDA, Department of Community and Neighborhoods (“CAN”) and
Division of Housing and Neighborhood Development (“HAND”), that defines the roles and
responsibilities of housing activities across City divisions and departments. This framework
includes the centralization of City and RDA housing development resources under the RDA.
In February of 2021, the Board approved an RDA Housing Allocation Funds Policy (“Funds
Policy”) that establishes guidelines for allocating and directing resources for the development
and preservation of housing. The last step of the process to centralize housing development
resources is the establishment of the Program as discussed herein.
II. Substantive Revisions
Based on previous feedback from RAC and the Board, the following substantive revisions to
the Policy have been incorporated:
• Intent Statements (Section 2): The following intent statements have been revised to
include the underlined text:
o Provide a mix of affordable housing, serving a range of households and income
levels, consistent with income limits and affordability requirements for each fund
source, to promote housing opportunity and choice throughout the City for
household sizes ranging from single persons to families.
o Support an array of scale of project types, including detached housing, accessory
dwelling units, rowhouses, and small to large scale multifamily buildings, that
contribute to neighborhood context and livability.
• Loan Modifications (Section 8): A new section regarding the process for loan
modifications has been included to match the RDA Loan Program policy, as follows:
o In the event of extenuating circumstances, the RDA may provide payment
forbearance, payment deferment, or loan write-down. Such adjustment to loan
terms shall be considered on a case-by-case basis and shall be subject to a
thorough review of the project’s financial standing and other relevant
information. The process for providing loan modifications shall be considered
and authorized as follows:
▪ Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for
up to one (1) year. For periods of forbearance or deferment longer than one
(1) year, the Review Committee shall provide a recommendation that is
forwarded to the Board, who shall consider and act upon all such requests.
▪ Loan Write-down: The Review Committee shall provide a recommendation
that is forwarded to the Board, who shall consider and act upon all such
requests.
• Underwriting Guidelines (Exhibit A-C): The following underwriting guidelines have
been revised:
o Limits to Assistance: This guideline was added to clarify that funding shall be
sized in proportion to the affordable component, taking into consideration the
AMI structure and number of units in the project.
o Base Interest Rate: The Base Interest Rates have been revised so that rather
than being a static interest rate, they are tied to the U.S. Treasury Yield Curve
Rate with a maximum cap. This will allow the Base Interest Rate to vary
based on the index, but not go so high as to impede the ability to provide an
interest rate low enough to facilitate the financial feasibility of affordable
housing projects.
o Affordability Restriction: The affordability restriction section has been
updated as follows:
i. Clarification that the restriction is for both rent and income, which
will limit the maximum rent that can be charged for a unit and to
require that the unit be made available only to households with
qualifying incomes.
ii. Reduction in the affordability period for homeownership from 30
years to 15 years. The affordability period for homeownership units
requires limits on future sales prices to preserve affordability, a model
known as “shared equity” ownership. Due to the complexities of this
model, the minimum affordability period was reduced to 15 years,
however longer affordability periods can be structured depending on
the project specifics.
PREVIOUS BOARD ACTION:
• 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. Housing Development Loan Program Policy Resolution
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REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____________
Housing Development Loan Program Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY ADOPTING A HOUSING DEVELOPMENT LOAN
PROGRAM POLICY AND REPEALING THE AFFORDABLE HOUSING NOTICE OF
FUNDING AVAILABILITY POLICY
WHEREAS, Salt Lake City has an adopted housing plan that identifies housing
needs, priorities, and goals on a citywide basis (“Housing Plan”).
WHEREAS, the Board of Directors (the “Board”) of the Redevelopment Agency
of Salt Lake City (“RDA”) has adopted project area plans that identify housing needs,
priorities, and goals on a project area basis (“Project Area Plans”).
WHEREAS, on June 12, 2018, the Board adopted Resolution R-17-2018,
Affordable Housing Notice of Funding Availability Policy (“NOFA Policy”).
WHEREAS, the RDA supports the implementation of the Housing Plan and
Project Area Plans through various funding sources that are further described in the RDA
Housing Allocation Funds Policy adopted by the Board on February 9, 2021 (“Funds
Policy”).
WHEREAS, through the Funds Policy, the Board may dedicate funds to be
administered for the development and preservation of affordable housing.
WHEREAS, the Board desires to repeal the NOFA Policy and to establish a housing
development loan program to centralize the application, underwriting, and approval process
across all funding sources identified in the Funds Policy, providing a one-stop-shop for
community partners to access resources for the development and preservation of affordable
housing.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the NOFA Policy
adopted pursuant to Resolution R-17-2018 is repealed in its entirety and the following policy
for a Housing Development Loan Program is adopted:
1. PURPOSE
The purpose of the Housing Development Loan Program (“HDLP”) is to provide low
cost financial assistance to incentivize the development and preservation of affordable
housing within Salt Lake City municipal boundaries. The HDLP shall provide a
centralized application, underwriting, and approval process regardless of the fund
source.
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2. INTENT
The Board intends that funds allocated through the HDLP:
a. Provide a mix of affordable housing, serving a range of households and income
levels, consistent with income limits and affordability requirements for each fund
source, to promote housing opportunity and choice throughout the City for
household sizes ranging from single persons to families.
b. Foster a mix of household incomes in projects and neighborhoods and to disperse
affordable housing projects throughout the City to encourage a balance of
incomes in all neighborhoods and communities.
c. Promote equity and anti-displacement efforts through the development and
preservation of affordable housing in low-income neighborhoods where
underserved groups have historic ties, including neighborhoods where low
income individuals and families are at high risk of displacement.
d. Contribute to the development of sustainable, walkable neighborhoods to expand
housing choice near transportation, services, and economic opportunity.
e. Support an array of scale of project types, including detached housing, accessory
dwelling units, rowhouses, and small to large scale multifamily buildings, that
contribute to neighborhood context and livability.
f. Incorporate green-building elements and energy efficiency to lower housing
expenses, conserve resources, and promote resiliency.
g. Leverage private and non-city funding sources to ensure the greatest number of
quality affordable housing units are preserved or produced.
h. Be provided as loans that are repaid over time and not grants, forgivable loans,
or indefinitely deferred loans.
3. SOURCE OF FUNDS
HDLP activities shall be funded through a combination of fund sources (collectively the
“Housing Funds”) as established through the Funds Policy. Funding allocations shall be
administered through the HDLP to a project directly from an individual fund source with
revenues, expenditures, interest, payments, and repayments accounted for from the fund
source.
Each of the individual fund sources that comprise the Housing Funds operates under
separate state or local laws and regulations. Laws and regulations include restrictions on
the incomes of households served, maximum allowable rents, and eligible activities.
4. ANNUAL BUDGET PROCESS
As further described in the Funds Policy, the RDA shall present an Annual Housing
Development Funding Strategy (“Funding Strategy”) prior to the annual budget process
that shall include proposed funding priorities and revenues to be administered through
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the HDLP for the next fiscal year. The Board shall consider the Funding Strategy as part
of the annual budget adoption process.
5. FUNDING PRIORITIES
To provide flexibility to address current needs and policies, funding priorities shall be
proposed on an annual basis through the Funding Strategy, subject to approval by the
Board. Funding priorities shall align with policies as adopted by the Board and Salt Lake
City Council including the Housing Plan, Project Area Plans, RDA Guiding Framework,
and Funds Policy.
6. FUNDS ADMINISTRATION PROCESS
Funding shall be administered through a transparent notice of funding availability
(“NOFA”) process and shall incorporate the funding priorities as determined annually
by the Board. Funds from multiple fund sources may be combined into a consolidated
NOFA or a NOFA may be issued from one fund source. NOFAs may be offered on an
annual basis or multiple times per year and can be competitive or open-ended depending
on availability of funds, priorities, and demand.
7. BASIC ELIGIBILITY
Projects eligible for funding through the HDLP shall at a minimum meet these basic
eligibility requirements, as well as specific requirements that may be set forth in
individual NOFAs as they are issued.
a. Applicant Types: Eligible applicants include entities and organizations with
affordable housing development experience, as follows:
i. For-profit corporations, partnerships, joint ventures, or sole proprietors.
ii. Private incorporated non-profit agencies with IRS 501(c) designation.
iii. Public housing agencies or units of local government.
b. Project Types: The new construction or substantial rehabilitation of affordable,
mixed-use and/or mixed-income housing.
c. Uses of Funds: Land/property acquisition, hard construction costs, site
improvements, and related soft costs.
d. Area Median Income (“AMI”): AMI requirements shall reflect the policies and
regulations of the Housing Funds as defined through the Funds Policy.
e. Financing Gap: Projects shall demonstrate that RDA funding is necessary for the
project to succeed and that the request is reasonable. Applicants must obtain
commercial loans sized with the highest loan-to-value and lowest debt service
parameters that are commercially available in the marketplace and aggressively
pursue other funding sources to the fullest extent possible to minimize the HDLP
funding request.
f. Site Control: Evidence of site control must be demonstrated through ownership,
option, sale agreement, long-term lease, or equivalent.
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g. Policies and Master Plans: Projects shall align with the Housing Plan, Project
Area Plans, Master Plans, and other applicable adopted plans and policies.
h. Good Standing: Applicants and affiliated entities must be in good standing on all
existing contracts administered by Salt Lake City, the RDA, Utah Housing
Corporation, and other State and local entities.
i. Relocation Plan (if applicable): Displacement is strongly discouraged. However,
if it is necessary and unavoidable, the developer must submit a relocation plan
that complies with applicable federal, state, and local policies for temporary or
permanent displacement.
j. Design: Projects shall align with applicable design guidelines and comply with
all applicable Salt Lake City building and zoning codes and ordinances.
8. UNDERWRITING STANDARDS
Funding shall expand housing opportunities for low-and moderate-income households by
reducing a project’s financing cost. Flexibility shall be provided to accommodate a wide
range of projects that may be dependent upon myriad of underwriting standards by outside
lenders. With this flexibility in mind, funding shall generally be provided as loans
pursuant to the terms and conditions outlined in Exhibit A.
9. EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval
as follows:
a. Eligibility Review: Funding applications shall be reviewed and evaluated in
detail by RDA staff based on the requirements listed herein, specific Housing
Funds requirements, and additional criteria published in the relevant NOFA.
b. Review Committee: For applications that meet the basic eligibility requirements,
applications and supporting materials shall be forwarded to a review committee
that shall be comprised of members with experience relevant to the affordable
housing industry, and may be comprised of RDA/City staff, finance
professionals, affordable housing experts, and/or real estate development
professionals. The review committee shall analyze and rank applications based
on the polices contained herein and the criteria published in the NOFA. Projects
that the Committee finds to rank competitively compared with other proposed
projects of similar type shall be recommended to the RDA Board for a funding
allocation.
c. RDA Board of Directors: The RDA Board of Directors shall make the final
selection of projects to receive a funding allocation.
d. Funding Commitment: The project funding process shall be carried out in two
subparts as follows:
i. Conditional Commitment Period: The RDA shall issue a Conditional
Commitment letter to those applications that are selected for a funding
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allocation by the RDA Board. The Conditional Commitment letter between
the RDA and the applicant shall contain the covenants, terms and conditions
upon which the RDA may provide financial assistance to the proposed project
once financial, legal, and regulatory approvals are obtained.
ii. Firm Commitment & Loan Closing: Projects that successfully meet
conditions shall be invited to execute a Letter of Commitment that finalizes
the loan terms, subject to a set of conditions precedent to closing.
10. MONITORING AND COMPLIANCE
The RDA shall be required to monitor, or contract with a third party to monitor, the
projects funded through the HDLP. Monitoring shall evaluate and ensure that projects
are complying with affordability requirements and other requirements as determined in
the loan agreement.
11. LOAN MODIFICATIONS
In the event of extenuating circumstances, the RDA may provide payment forbearance,
payment deferment, or loan write-down. Such adjustment to loan terms shall be
considered on a case-by-case basis and shall be subject to a thorough review of the
project’s financial standing and other relevant information. The process for providing
loan modifications shall be considered and authorized as follows:
a. Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for up
to one (1) year. For periods of forbearance or deferment longer than one (1)
year, the Review Committee shall provide a recommendation that is forwarded
to the Board, who shall consider and act upon all such requests.
b. Loan Write-down: The Review Committee shall provide a recommendation that
is forwarded to the Board, who shall consider and act upon all such requests.
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EXHIBIT A: Standard Loan Terms and Conditions
Standard loan terms and conditions for I) Gap Financing: Rental Construction to Permanent,
II) Property Acquisition, and III) Gap Financing: Homeownership Construction are as
follows:
I. GAP FINANCING: RENTAL CONSTRUCTION TO PERMANENT
Limits to Assistance:
Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
Loan to Value: A loan-to-value limit is not applicable. However, land and project
costs shall be reasonable as compared similar projects in size, scope, and
location.
Debt Service Coverage Ratio (DSCR): Repayment terms for amortizing HDLP
loans shall be calculated as described herein and shall be based on a DSCR of
1.10 inclusive of the RDA’s loan and all senior debt.
Cash Flow: For loans that qualify for a cash flow repayment structure, pursuant
to the standards contained herein, applicants must demonstrate that the HDLP
loan can be repaid within its scheduled term or at the end of the term.
Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
Depending on the project’s capacity for repayment, loans may be repaid as an
amortized loan, a cash flow loan based on available cash flow, or a combination
of both types of loan.
o Amortized Loan: The RDA shall determine what portion of its loan can
be paid on an amortized schedule with required payments using the
DSCR standards contained herein and the DSCR requirements of the
senior lender.
o Cash Flow Loan: If full amortization is not feasible due to limited cash
flow, funds shall be repaid from an agreed upon percentage split of
surplus cash flow. Cash flow loans shall be considered only for projects
that provide a high level of affordability, target a difficult to serve
population, or include other significant public benefit.
At the RDA’s discretion, payments may not be required and interest may not
accrue or accrue at a reduced interest rate during the construction and lease-up
phase. Upon completion of construction, lease-up, project stabilization, or other
fixed date, loans shall begin to accrue interest and shall be subject to repayment.
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Any accrued but unpaid interest and principal is due in full at loan maturity.
Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
RDA loan terms shall generally match the term of permanent senior debt,
generally up to a maximum of 30-years for projects with non-HUD financing and
up to a maximum of 40 years for projects with HUD financing.
Commencement of the loan term and/or repayment period may be deferred for a
period of time to allow for completion of construction and lease-up phase.
Interest Rate:
Base Interest Rate: The base interest rate shall be as follows:
o Amortized Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 1%, locked in within a month of loan closing, with a
maximum base interest rate of 3%. The interest rate for loans with a term
longer than 30 years shall utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
o Cash Flow Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 2%, locked in within a month of loan closing, with a
maximum base interest rate of 4%. The interest rate for loans with a term
longer than 30 years shall utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
Interest shall accrue as simple interest.
Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
annually pursuant to the Funds Policy. For each funding priority met, the project
is eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
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HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders typically established based upon size of the loans.
Security:
Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
Given the rent restrictions on affordable housing projects, affordable housing
developments typically do not have substantial cash flow after debt service on
their primary loans. As such, developer fees are recognized as a significant part
of the income on which affordable housing organizations depend for their
operations. For projects utilizing a low-income housing tax credit (“LIHTC”)
program, the calculation to determine a maximum developer fee shall be
consistent with Utah Housing Corporation’s policy, which caps the maximum
developer fee. The maximum developer fee for projects not utilizing LIHTC shall
be evaluated on a case-by-case basis in the context of the proportion of affordable
units and AMIs.
Borrower Contribution:
Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution shall be considered on a case-by-case basis and
shall be evaluated based on the type of ownership entity and level of public
benefit provided by the project.
For Low Income Housing Tax Credit (“LIHTC”) projects that are requesting a
cash flow loan, the borrower shall maximize the amount of deferred developer
fee allowed under Utah Housing Corporation’s standards to be allowed in tax
credit basis and acceptable for their tax credit investor in that this amount must
be payable within a time frame allowed by the LIHTC program as approved by
the project’s tax counsel.
Projects that have not maximized a developer fee, pursuant to the standards
contained herein, or that serve lower AMIs or special populations, such as
permanent supportive housing, may have the ability to waive the borrower
contribution.
Disbursement of Funds:
Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
Loans are non-assumable without written permission from the RDA.
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II. PROPERTY ACQUISITION
Limits to Assistance:
Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
Loan to Value: Loans shall be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
Repayment:
Depending on the applicant’s capacity for repayment, loans may be repaid as a
deferred or interest-only loan.
Any accrued but unpaid interest and principal is due in full at loan maturity.
Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
The maximum loan term shall be 24-months with the ability for one 12-month
extension if the project is demonstrating a progression toward construction.
Interest Rate:
Base Interest Rate: The base interest rate shall be the current U.S. Treasury Yield
for the loan term plus 2.5%, locked in within a month of loan closing, with a
maximum base interest rate of 3%.
Interest shall accrue as simple interest.
Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is eligible
to receive a .5% reduction from the Base Interest Rate, with the ability to reduce
the interest rate to a minimum of 1%.
Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
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restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders is typically established based upon size of the loans.
Security:
Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
Developer fees are not an eligible cost for a property acquisition loan.
Disbursement of Funds:
Funding may be disbursed at loan closing.
Other
Loans are non-assumable without written permission from the RDA.
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III. GAP FINANCING: HOMEOWNERSHIP CONSTRUCTION
Limits to Assistance:
Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
Loan to Value: Loans shall be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
Loans shall be repaid from the sale of housing units in the project. HDLP funds
may be repaid after payout to senior loans have been accounted for.
Any accrued but unpaid interest and principal is due in full at loan maturity.
Loans can be prepaid in whole or in part at any time without penalty.
Prepayment does not end the affordability period before its original end date.
Term:
The maximum loan term shall be 36-months with the ability for one 12-month
extension if the project is demonstrating a progression toward completion.
Interest Rate:
Base Interest Rate: The base interest rate shall be the current U.S. Treasury
Yield for the loan term plus 2.5%, locked in within a month of loan closing,
with a maximum base interest rate of 3%. Interest shall accrue as simple
interest.
Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is
eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
Interest rates are subject to an adjustment, of up a 1% deviation, based on
project cash flow and debt coverage ratio calculated at time of application and
underwriting.
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Affordability Restriction:
A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 15 years, whichever is greater. Both a sales price and
income restriction shall be included to limit the maximum sales price that can be
charged for a unit and to require that the unit be made available only to
households with qualifying incomes.
Subordination to Senior Debt:
HDLP loans may be subordinated to leverage private financing, with the
priority among subsidy lenders is typically established based upon size of the
loans.
Security:
Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
Maximum developer fees shall be considered on a case-by-case basis and shall
be evaluated based on the affordability levels of the project, type of ownership
entity, and level of public benefit provided by the project.
Borrower Contribution:
Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution shall be considered on a case-by-case basis and
shall be evaluated based on the affordability levels of the project, type of
ownership entity, and level of public benefit provided by the project.
Deferred developer fees shall be paid after the HDLF loan has been fully
repaid.
Disbursement of Funds:
Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
Loans are non-assumable without written permission from the RDA.
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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
March 5, 2021
144-158 MAIN STREET DISPOSITION
OPEN SPACE CONTINGENCY
RDA BOARD OF DIRECTORS MEETING –MARCH 23, 2021
SITE
Location: 144 –158 South Main Street
Size: 0.89 acres
Zoning:D-1 Central Business District
BACKGROUND
2010: Acquired the Property
2010 –2016: Explored various preservation and reuse options in collaboration with third
party consultants and interested user groups.
2015: Began to engage adjacent property owners to explore a partnership on
redevelopment of the Property.
2019:Determined that it was challenging to preserve the Theater due to
several barriers, including the significant public investment that would be
required to bring the structure up to current building and seismic code, as
well as the lack of a viable end user.
2019:With Hines acting as the lead developer, Hines and 160 Main proposed
the construction of a mixed-use tower that is approximately 375 to 400
feet high with commercial and residential uses and includes affordable
housing, public space, historic repurposing of Theater elements,
structured parking, and public art.
2019:The RDA and Hines/160 Main entered into a Purchase and Sale
Agreement that outlines the terms and conditions of the sale/purchase of
the Property. This parties are continuing to work under this active contract.
SALES PRICING TERMS
On December 3, 2019, the Board approved a resolution authorizing the sales price terms of
the Property for $0 so long as certain public benefits are incorporated into the Project,
including the following:
1.Affordable Housing:
The Project will include a minimum of 10% of the residential units affordable to
households earning 60% to 80% of the area median income (“AMI”).
2.Midblock Walkway:
The Project will include a privately-maintained, publicly-accessible, midblock
walkway that extends into the interior of the block from Main Street.
3.Historic Repurposing:
The Project will include the reclamation and incorporation of historic theater
elements.
CONTINGENCIES -OVERVIEW
1.Historic Documentation Continency
Prior to demolishing the Utah Theater, the RDA ensures historic elements of the
theater are sufficiently documented through measured drawings, film, photographs,
and/or written data to provide a detailed record to the Board and public of the
property’s significance.
2.Open Space Contingency
Confirmation that the Developer intends to build green open space in addition to a
midblock walkway as part of the proposed Project, and prior to closing, the Developer
will provide to the Board of Directors detailed plans for the open space. Prior to closing,
the Board of Directors may consider providing incentives to the Developer, or through
the City Council, related to the open space.
In addition, the Board included the following contingencies:
CONTINGENCIES -CURRENT
1.Historic Documentation Continency
•RDA staff presented on the historic documentation contingency at the February
Board meeting.
2.Open Space Contingency
•Today’ briefing includes current plans for the open space to fulfill the open space
contingency.
•By submitting this information, the requirements of the resolution are met, and
the parties can proceed to closing on the Property once contractual obligations
are fulfilled.
•If the Board wants to provide direction to further explore enhanced design
elements, RDA staff can work with Hines on a consideration to provide
additional participation relating to the enhanced features (as contemplated
through the Board’s contingency).
An update on the :
*This rendering is a concept and is subject to change
8% of Salt Lake City’s land is used for parks and recreation47% less than the National Average * Retrieved from https://www.tpl.org/parkscore8%10%11%15% 15%18%21% 21%0%5%10%15%20%Salt Lake City Austin Nashville Minneapolis National Average Portland New York City San FranciscoPercentage of Land used for Parks and Recreation*
Myriad Botanical Garden, Oklahoma CityCoyoacan 1622,Mexico City
The Highline, New York City
30thSt Station, Philadelphia
Rail Park, Philadelphia
West Loop Patio, Chicago
Teardrop Park, NYCVan Campenvaart Playground, Quebec City
*This rendering is a concept and is subject to change
*This rendering is a concept and is subject to change
MERIEL MARINA BAY —QUINCY, MARESIDENCES AT SLOAN’S LAKE —DENVER, COWOLF POINT EAST —CHICAGO, IL THE LINCOLN COMMON —CHICAGO, IL 8800 DORAL —DORAL, FL33 TEHAMA —SAN FRANCISCO, CA1213 WALNUT – PHILADELPHIA, PAMACARTHUR COMMONS—OAKLAND, CARESIDENCES AT LA COLOMBE D’OR –HOUSTON, TX
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: March 4, 2021
PREPARED BY: Danny Walz and Tammy Hunsaker
RE: Update on the Open Space Contingency for the Sales Pricing Terms of RDA-
owned Property located at 144 – 158 South Main Street
REQUESTED ACTION: Briefing.
POLICY ITEM: Disposition of real property for Central Business District project area
development.
BUDGET IMPACTS: N/A.
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) has been
working on the disposition and redevelopment of 0.89 acres of RDA-owned property located at 144 –
158 Main Street (“Property”) in the Central Business District project area. The Property is the site of
the Utah Theater (“Theater”) and adjacent retail spaces. On December 3, 2019, the RDA Board of
Directors (“Board”) approved resolution R-23-2019 (“Resolution”) authorizing the sales pricing
terms of the Property conditioned upon the incorporation of certain public benefits and subject to two
contingencies.
The first contingency requires documentation of the Theater’s historic elements. This contingency
has been fulfilled, as RDA staff presented a summary of the historic documentation effort at the
February Board meeting. The final outstanding contingency is as follows:
Confirmation that the Developer intends to build green open space in addition to a midblock
walkway as part of the proposed Project, and prior to closing, the Developer will provide to
the Board of Directors detailed plans for the open space, and proposed costs to (a) construct
the open space, (b) ensure the open space is publicly accessible and (c) maintain the open
space. Prior to closing, the Board of Directors may consider providing incentives to the
Developer, or through the City Council, related to the open space.
To fulfill this contingency, Hines Acquisitions LLC (“Hines”) will present plans for the open space
at the March 2021 Board meeting. By submitting this information, Hines will fulfill the contingency
requirements of the Resolution and the parties can proceed to closing on the Property.
ANALYSIS & ISSUES: Additional details on the 1) project summary, 2) open space contingency,
and 3) consideration of additional incentives are as follows:
I. Project Summary
Pursuant to the administrative purchase and sale agreement (“PSA”), executed on November
7, 2019, the project will include the construction of a mixed-use tower that is approximately
375-feet high with commercial and residential uses and includes affordable housing, public
space, historic repurposing of Theater elements, structured parking, and public art
(“Project”). Additional detail on the required public benefits is as follows:
• Affordable Housing:
The Project will include a minimum of 10% of the residential units affordable to
households earning 60% to 80% of the area median income (“AMI”).
• Midblock Walkway:
The Project will include a privately maintained, publicly accessible, midblock
walkway between 14 and 40 feet wide by approximately 200 to 220 feet long that
extends into the interior of the block from Main Street.
• Historic Repurposing:
The Project will include the reclamation and incorporation of historic theater
elements, with elements to be identified through a collaborative effort between Hines
and RDA in coordination with historic preservation experts.
II. Open Space Contingency
The PSA provides that an optional component of the Project, subject to further negotiation, is
privately maintained, publicly accessible open space located on the top floor of the parking
structure. Subsequently adopted by the Board, the Resolution authorizing the property write-
down includes a contingency stating that the Project shall include green open space in
addition to the midblock walkway and, prior to closing, the Board may consider providing
incentives to the Project, or through the City Council, related to the open space.
To fulfill this contingency, plans for the open space, and proposed costs to (a) construct the
open space, (b) ensure the open space is publicly accessible and (c) maintain the open space
will be presented at the March 2021 meeting. Initial estimates of the hard costs for the park
space total ~$2,500,000 (including both soft and hard costs) with an ongoing annual
operating expense of ~$69,000. These expenses fit within the financial capacity of the
Project. As such, no additional financial participation from the RDA is required to implement
this baseline plan.
Prior to closing on the Property, the RDA will require an easement and/or restricted
covenants to be recorded on the open space to ensure public access. Time, place, and manner
restrictions will be utilized to promote order, preserve property interests, and maintain public
safety. Time, place, and manner restrictions will not impede on the First Amendment but
rather regulate when, where, and how the public may engage with the space.
III. Consideration of Additional Incentives
Encouraging privately-owned open space that is publicly accessible can be a great way to
leverage the City’s limited resources. Nationally, real estate developers are emerging as key
players in supporting open space creation, maintenance, and programming.
If the Board is interested, RDA staff can work with Hines to elevate the design of the park
space and midblock walkway. Additional design elements may include pedestrian amenities
along the midblock walkway, including plantings, benches, public art, lighting, and signage.
Additionally, the elevator could be placed at the Main Street frontage to improve accessibility
to persons with limited mobility. This elevator could go up to an elevated walkway that
connects to the open space as well as to the Kearns Building terrace. The park space could
include additional amenities such as shade structures, additional seating, and a playground.
Elevating the design of the open space would require additional participation from the
RDA/City to aid in offsetting the costs of constructing and maintaining additional design
elements of the open space for public use. Considerations are as follows:
• Tax Increment Reimbursement
Additional participation could be funded through a tax increment reimbursement (“TIR”)
that would allow Hines to receive a percentage of the tax increment generated from the
Project for a specified timeframe, and the RDA would receive the residual tax increment
for other project area development activities. The Project is projected to generate almost
$20 million in tax increment revenue through the end of the Central Business District
project area which is scheduled to sunset in 2040. Of the $20 million in total tax
increment, the RDA will retain 40%, or approximately $8 million, pursuant to
agreements with the taxing entities. A portion of the $8 million retained by the RDA
could be provided as a TIR to enhance and maintain the open space for public use.
• Park Impact Fees
Under the current impact fee schedule, park impact fees for multifamily buildings equate
to $3,078 per unit. As such the Project will be required to pay ~$1,200,000 in park impact
fees while also providing park space with a public easement. Pursuant to the impact fee
ordinance, impact fees cannot be used for ongoing maintenance and can only be used for
improvements to publicly owned parks. However, the ordinance does provide an
administrative process for how impact fees may be waived or “offset.” To offset impact
fees, there would need to be a nexus to the value of any construction of improvements or
contribution or dedication of land or money by a developer for qualifying improvements
of the same category for which an impact fee was imposed. While this is an option that
may be used to provide additional improvements to the open space for public use, further
assessment and coordination would need to be carried out to determine if this option is
viable.
RDA staff and Hines can return to the Board with plans for elevated designs for the park
space and the proposed structure of RDA/City participation if the Board is interested.
PREVIOUS BOARD ACTION:
• February 2020: RDA staff provided a detailed record to the Board on the historic
documentation of the Theater.
• December 2019: The Board approved resolution R-23-2019 authorizing the sales pricing
terms of the Property conditioned upon the incorporation of certain public benefits and
subject to certain contingencies.
• August 2019: RDA staff submitted a briefing on an opportunity to partner with Hines and
LaSalle on redeveloping the Property as a mixed-use development that maximizes public
benefits including affordable housing, public open space, structured parking, repurposing of
Theater elements, public art, and the activation of Main Street.
• August 2018: RDA staff submitted a briefing that 1) provided context and background for the
acquisition of the Property, 2) summarized the existing contracts and critical provisions
within those contracts, and 3) summarized the studies completed to date to assess the
redevelopment potential of the Property.
ATTACHMENTS:
• Attachment A: Midblock Walkway and Open Space Renderings
*This rendering is a concept and is subject to change
*This rendering is a concept and is subject to change
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
Chief Operating Officer
STAFF MEMO
DATE: January 22, 2021
PREPARED BY: Danny Walz, Tammy Hunsaker, and Lauren Parisi
RE: Update on the Conditions for the Sales Pricing Terms of RDA-owned
Property located at 144 – 158 South Main Street
REQUESTED ACTION: Briefing.
POLICY ITEM: Disposition of real property for Central Business District project area
development.
BUDGET IMPACTS: N/A.
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) has been
working on the disposition and redevelopment of 0.89 acres of RDA-owned property located at 144 –
158 Main Street (“Property”) in the Central Business District. The Property is the site of the Ut ah
Theater (“Theater”) and adjacent retail spaces. On December 3, 2019, the RDA Board of Directors
(“Board”) approved resolution R-23-2019 authorizing the sales pricing terms of the Property
conditioned upon the incorporation of certain public benefits and subject to certain contingencies.
This memorandum provides an update on the disposition and redevelopment of the Property,
including an update on the following sales pricing term contingencies:
1. Open Space Contingency
Confirmation that the Developer intends to build green open space in addition to a midblock
walkway as part of the proposed Project, and prior to closing, the Developer will provide to
the Board of Directors detailed plans for the open space, and proposed costs to (a) construct
the open space, (b) ensure the open space is publicly accessible and (c) maintain the open
space. Prior to closing, the Board of Directors may consider providing incentives to the
Developer, or through the City Council, related to the open space.
2. Historic Documentation Continency
Prior to demolishing the Utah Theater, the RDA ensures historic elements of the theater are
sufficiently documented through measured drawings, film, photographs, and/or written data
to provide a detailed record to the Board and public of the property’s significance.
ANALYSIS & ISSUES: Additional details on 1) the project’s background, 2) open space
contingency, and 3) historic documentation contingency are as follows:
I. Background
In 2010 the RDA acquired the Property with the intention of potentially utilizing it as the site
of a Utah performing arts center, which was ultimately sited across the street as what is now
the Eccles Theater. Between 2010 and 2016 the RDA explored various preservation options
in collaboration with third-party consultants and interest user groups, which did not result in
a viable path forward for the Property’s rehabilitation and reuse. In 2015, to address site
constraints of the Property that limit its redevelopment potential, the RDA began to engage
adjacent property owners Hines Acquisitions LLC (“Hines”) and 160 Main LLC (“160
Main”) in negotiations on redevelopment of the Property.
In 2019, the RDA determined that it was unfeasible to preserve the Theater due to several
barriers, including the significant public investment that would be required to bring the
structure up to current building and seismic code, as well as the lack of a viable end user.
With Hines acting as the lead developer, Hines and 160 Main proposed the construction of a
mixed-use tower that is approximately 375-feet high with commercial and residential uses
and includes affordable housing, public space, historic repurposing of Theater elements,
structured parking, and public art (“Project”). On December 3, 2019, the Board approved a
resolution authorizing the sales price terms of the Property for $0.00 so long as certain public
benefits are incorporated into the Project, including the following:
• Affordable Housing:
The Project will include a minimum of 10% of the residential units affordable to
households earning 60% to 80% of the area median income (“AMI”).
• Midblock Walkway:
The Project will include a privately-maintained, publicly-accessible, midblock
walkway between 14 and 40 feet wide by approximately 200 to 220 feet long that
extends into the interior of the block from Main Street.
• Historic Repurposing:
The Project will include the reclamation and incorporation of historic theater
elements, with elements to be identified through a collaborative effort between Hines
and RDA in coordination with historic preservation experts.
In addition to these public benefits, the Board resolution authorizing the sales pricing terms
requires the following contingencies:
• Open Space:
The Project will include green open space in addition to a midblock walkway.
• Historic Documentation:
The historical significance of the Theater will be documented and available to the
public prior to demolishing the Theater.
Since the sales pricing terms were approved by the Board in December of 2019, Hines has
been working on due diligence, entitlements, design, and financing for the Project. The RDA
anticipates closing on the Property within the next few months after checking in with the
Board to verify the contingencies have been met.
II. Open Space Contingency
The Project will include a publicly-accessible midblock walkway that is terraced and leads to
park space atop the parking structure that spans between the Property and the Kearns
Building property to the north. Entering into agreements with property owners to provide for
the public enjoyment of privately-owned spaces is a common model utilized by cities across
the nation. The midblock walkway has always been contemplated to be privately owned and
maintained yet accessible to the public. The level of public accessibility of the park space has
been an ongoing negotiation between the RDA and Hines.
The RDA analyzed options to facilitate public accessibility of the park space and reached out
to the City’s Division of Public Lands to discuss these options. Public Lands is very
supportive of adding new open space to the downtown urban fabric whether through new
publicly-owned inventory or through privately-owned inventory that is publicly accessible.
Due to the context of this particular park space, the City determined that it is more
appropriate for the park space to be privately owned and maintained rather than part of the
City’s open space inventory. This is because of several reasons including but not limited to
the following:
• The park space is to be located atop the parking structure which, while being an
innovative way to incorporate open space into the built environment, would create
challenges with adding it to the City’s open space inventory from both a legal and
logistical perspective.
• The City’s resources for new park space in the urban core is limited and, as such, the
City wants to prioritize using these resources for new park space that better aligns
with current plans and priorities.
Encouraging privately owned open space that is publicly accessible is a great way to leverage
the City’s limited resources. The RDA and Public Lands agree that the Project’s open space,
both the midblock walkway and park space, will provide numerous benefits to the City from
a design, sustainability, and civic standpoint. It is important to note that while the park space
will have a certain level of public accessibility, this accessibility will be limited with time,
place, and manner restrictions that provide a balance between public use and private property
rights.
To fulfill the open space contingency, Hines is planning to provide to the Board detailed
plans for the open space, and proposed costs to (a) construct the open space, (b) ensure the
open space is publicly accessible and (c) maintain the open space. Hines has completed this
work and is prepared to present an update at the March Board meeting.
III. Historic Documentation Contingency
To satisfy this requirement, the RDA released an RFP for the Theater’s historic
documentation in March of 2020 and the selection committee ultimately chose local design
firm Modern Out West to complete the project. Modern Out West’s team began their
documentation work inside the Theater in July of 2020. This work involved diligently
sketching, painting, scanning, photographing and filming the Theater building to cr eate the
following deliverables:
• Updated intensive level survey to the Utah State Historic Preservation Office’s
standards involving the collection of Sanborn maps, original blueprints, newspaper
clippings, tax files, title reports, historic concert programs, etc.
• Experimental drawings including pencil sketches, charcoal drawings, watercolors and
streetscapes of the existing and original building
• Architectural drawings including a site plan, elevations, floor plans, cross sections,
reflected ceiling plans, analytiques and detailed drawings of architecturally
significant features throughout the building
• Photographs including a collection of historic photos as well as new, professional
photos taken of the existing building and architecturally significant fea tures
• Drone video footage of the Theater’s interior
• 3D scan of the building and associated point cloud data
• Virtual reality tour of the building
• Interactive online archive/website accessible to the public at https://pta.lib.utah.edu/
Modern Out West completed their work on November 1, 2020. The material was submitted
to the Utah State Historic Preservation Office (SHPO) per their intensive level survey
requirements. SHPO’s digital archives are housed by the University of Utah’s J. Willard
Marriott Library where the materials created as a part of this project can be accessed by the
public. Any originals that were created such as the pencil sketches, charcoal drawings and
watercolors were donated to the Marriott Library to keep within their physical archives. All
of the materials were also submitted digitally to the RDA. The Salt Lake City Recorder’s
Office is currently working on the creation of a retention schedule for the archives, which
will eventually be scanned into the City’s Laserfiche system that can be accessed internally.
In addition to these required archives, a substantial amount of the project materials were
compiled and included on an interactive website that can be accessed publicly at
https://pta.lib.utah.edu/. Here, the public can read more about the Theater’s history and
namesake Alexander Pantages, view photographs and architectural drawings, and even take a
virtual tour of the Theater. The website link will be posted on the RDA’s and City Planning’s
websites and the virtual tour is also accessible on Google Maps. The Marriott Library will
host the website for at least five years, after which they will review their digital preservation
plan and capacity to continue hosting the site. Marriott staff have also i ndicated that they may
create a physical exhibit with the project materials in addition to collecting oral histories from
those who visited the Theater during its heyday.
The RDA is grateful for the work Modern Out West has done not only for creating an
extremely thorough archive, but for capturing the spirit of the Theater’s original grandeur and
preserving its memory forever.
PREVIOUS BOARD ACTION:
• December 2019: The Board approved resolution R-23-2019 authorizing the sales pricing
terms of the Property conditioned upon the incorporation of certain public benefits and
subject to certain contingencies.
• August 2019: RDA staff submitted a briefing on an opportunity to partner with Hines and
LaSalle on redeveloping the Property as a mixed-use development that maximizes public
benefits including affordable housing, public open space, structured parking, thematic
repurposing of Theater elements, public art, and the activation of Main Street.
• August 2018: RDA staff submitted a briefing that 1) provided context and background for the
acquisition of the Property, 2) summarized the existing contracts and critical provisions
within those contracts, and 3) summarized the studies completed to date to assess the
redevelopment potential of the Property.
ATTACHMENTS:
• Attachment A: Watercolor samples
• Attachment B: Architectural drawing samples
• Attachment C: Photograph samples
Attachment A: Watercolor Samples
Attachment B: Architectural Drawing Samples
Attachment C: Photograph Samples
University of Utah Research Park
CRA Analysis Update
RDA BOARD MEETING –MARCH 23, 2021
2019
•UURP Master Plan process began
•RDA and various city departments involved in process
2020
•UURP Strategic Vision Plan completed
•Boundary Survey process (Board approval 2020)
authorizes preparation of CRA Plan and analysis that
determines whether project area creation is feasible
•RDA has been engaged with UURP’s Phase II Strategic
Implementation Plan
UNIVERSITY OF UTAH RESEARCH PARK (UURP)
•Create a sustainable, mixed-use development that incorporates
additional uses such as housing, retail, and services to the existing
office development and surface parking within Research Park;
•Promote compact and human-scale environment
•Lead with sustainable and resilient development and design strategies
•Prioritize multi-modal circulation to and through the campus
•Design strategy focuses on three categories:
o Ecological Framework
o Connective Network
o Innovation Ecosystem
UURP STRATEGIC VISION PLAN
TIMELINE
Completed: Board authorized RDA staff to prepare draft plan and analysis (Jan 2020)
Next Steps: Preparation of draft plan includes:
•Feasibility and public benefits analysis of project area development:
o Evaluate land use data and future uses
o Estimate taxable value and tax increment
o Assess rationale for use of project area funds
o Evaluate uses of tax increment
•Project area goals and objectives
•Community engagement and coordination with stakeholders
(Property owners, taxing entities, stakeholders, City depts)
Future Steps :
•Review and adopt plan
•Negotiations with taxing entities (Interlocal agreements)
•Noticing
•Prepare and adopt budget
UPCOMING BOARD MEETINGS
Draft Plan Components Tentative Schedule
Public Benefits Analysis Q2 2021
Standards and Activities to Guide Development Q3 2021
Project Area Plan (1st Draft) Q3 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
Chief Operating Officer
STAFF MEMO
DATE: January 21, 2021
PREPARED BY: Tracy Tran
RE: University of Utah Research Park Update
REQUESTED ACTION: Written Briefing
POLICY ITEM: Project Area Creation
BUDGET IMPACTS: Future tax increment generated by the CRA
EXECUTIVE SUMMARY: In January 2020, the RDA Board of Directors (“Board”) adopted a
boundary survey resolution, which initiated the process that authorizes the preparation of a draft
community reinvestment area plan (“Draft Plan”) and analysis to determine whether project area
development is feasible as a proposed community reinvestment area (“CRA”) within the
University of Utah Research Park.
CRA Plan and Public Benefits Analysis
The Agency has begun the process for preparing the Draft Plan in accordance with Utah Title 17-
C (“Title 17C”) and has engaged consultants to analyze the feasibility of a CRA within the
University of Utah Research Park, which is based on the vision laid out in the associated
University of Utah Research Park Master Plan. The Draft Plan will include further establishing a
vision for the development of the area, the full evaluation of infrastructure needs including
transportation, utilities, protection of natural resources, and the funding sources required to
achieve these goals. The establishment of a CRA would enable the RDA to capture incremental
increase in building and property values from new development in the area and to invest these
funds in projects that would promote and realize its potential envisioned in the Master Plan.
Agency staff will return to the Board in upcoming months to share a draft CRA Plan and
associated Public Benefits Analysis. In general, project area plans are required to include a
description of the geographic boundaries of the survey area; an analysis of existing conditions;
an overview of standards to guide development; demonstration of conformance with the general
plan; an explanation of how project area development will further Title 17C; and project area
development activities.
As required in Title 17C, a Public Benefit analysis must be conducted as part of the project area
creation process. The analyses will evaluate the proposed project area’s beneficial influences on
the tax base, associated business and economic activity likely to be stimulated, and whether the
1
project area is necessary to undertake the proposed project area development.
In addition, this process will include engaging with City Departments, property owners,
stakeholders, and Taxing Entities (County and School District) to guide development of the Draft
Plan for the Board’s consideration.
Community Reinvestment Area Creation Process:
• Step 1: Board authorization of RDA staff to prepare a Draft Plan. (Adopted in 2020)
• Step 2: RDA staff creates the Draft Plan, which includes a public benefits analysis and
proposed budget as outlined by Title 17C. RDA Staff engages with taxing entities in the
initial review of the Draft Plan.
• Step 3: Make Draft Plan available for public review. A public plan hearing is also
organized with notification sent to property owners, State Tax Commission, participating
taxing entities, and the County Assessor and Auditor. All written and oral comments
collected from participants during the hearing are considered by the RDA in connection
with the preparation of a revised Draft Plan.
• Step 4: Following a 30-day public comment period, RDA Board approves of a resolution
adopting the Draft Plan as the Community Reinvestment Project Area Plan (the “CRA
Plan”). After adoption by the Board, the City Council adopts an ordinance that designates
the approved CRA Plan as the official community development plan of the project area.
• Step 5: Once City Council approves the CRA Plan, a notice will be placed in the local
newspaper providing a 30-day protest period.
• Step 6: The RDA enters into negotiations with participating taxing entities for the terms
of the Interlocal Agreements. Included within these agreements are the respective
participation terms that will make up the final project area budget. Notices of the
finalized Interlocal Agreements with each entity are published in the newspaper with a
30-day protest period.
• Step 7: Based on the final terms negotiated with each of the participating taxing entities,
the RDA prepares a CRA Budget and makes it available for public review. After a 30-day
noticing period, with notifications sent to property owners, State Tax Commission,
participating taxing entities, and the County Assessor and Auditor, the Board holds a
budget hearing and then consider a resolution adopting the CRA Budget.
• Step 8: Once the CRA Budget is adopted by the Board, a notice will be placed in the
local newspaper providing a 30-day protest period.
PREVIOUS BOARD ACTION:
January 14, 2020: The RDA Board adopted a boundary survey resolution that authorized the
preparation of a Draft Plan and allowed for the further analysis of a community reinvestment
area at the University of Utah Research Park.
June 9, 2020: Representatives from the University of Utah provided a briefing to the Board on
the Research Park Master Plan.
ATTACHMENTS:
• A: Map of University of Utah Research Park Community Reinvestment Survey Area
2
ATTACHMENT A: MAP OF UNIVERSITY OF UTAH RESEARCH PARK
COMMUNITY REINVESTMENT SURVEY AREA
3
Legend
0 0.125
• University of Utah Research Park Survey Area
0.25 0 .5
Miles
N
A
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
RDA TRANSMITTAL
______________________________ Date Received: 2/5/2021
Rachel Otto, Chief of Staff
Date Sent to Council: 2/5/2021
TO: RDA Doard of Directors DATE: 2/5/20201
Ana Valdemoros, Board of Directors
FROM: Rachel Otto, Chief of Staff
Office of the Mayor
SUBJECT: Board Appointment Recommendation: Redevelopment Advisory Committee
STAFF CONTACT: Jessi Eagan
jessi.eagan@slcgov.com
DOCUMENT TYPE: Board Appointment Recommendation: Redevelopment Advisory
Committee
RECOMMENDATION: The Administration recommends the Board consider the
recommendation in the attached letter from the Mayor and appoint Rosa Marnoto Bandeirinha as a
member of the Redevelopment Advisory Committee.
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
February 5, 2020
Salt Lake City Redevelopment Agency Board
451 S State Street Room 404
PO Box 145518
Salt Lake City, Utah 84114
Dear Board Chair Valdemoros,
Listed below is my recommendation for membership appointment to the Redevelopment Advisory
Committee.
Rosa Marnoto Bandeirinha – to be appointed for a term ending January 20, 2025, starting from the
date of Redevelopment Agency Board advice and consent.
I respectfully ask your consideration and support for this appointment.
Respectfully,
Erin Mendenhall, Mayor
Cc: File
March 23, 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
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
RDA TRANSMITTAL
______________________________ Date Received: 2/5/2021
Rachel Otto, Chief of Staff
Date Sent to Council: 2/5/2021
TO: RDA Doard of Directors DATE: 2/5/20201
Ana Valdemoros, Board of Directors
FROM: Rachel Otto, Chief of Staff
Office of the Mayor
SUBJECT: Board Appointment Recommendation: Redevelopment Advisory Committee
STAFF CONTACT: Jessi Eagan
jessi.eagan@slcgov.com
DOCUMENT TYPE: Board Appointment Recommendation: Redevelopment Advisory
Committee
RECOMMENDATION: The Administration recommends the Board consider the
recommendation in the attached letter from the Mayor and appoint Rosa Marnoto Bandeirinha as a
member of the Redevelopment Advisory Committee.
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
February 5, 2020
Salt Lake City Redevelopment Agency Board
451 S State Street Room 404
PO Box 145518
Salt Lake City, Utah 84114
Dear Board Chair Valdemoros,
Listed below is my recommendation for membership appointment to the Redevelopment Advisory
Committee.
Rosa Marnoto Bandeirinha – to be appointed for a term ending January 20, 2025, starting from the
date of Redevelopment Agency Board advice and consent.
I respectfully ask your consideration and support for this appointment.
Respectfully,
Erin Mendenhall, Mayor
Cc: File