07/13/2022 - Meeting Materials (2) MEETING OF THE
REDEVELOPMENT AGENCY FINANCE COMMITTEE
Wednesday, July 13, 2022
11:00 a.m.
451 S State Street Room 126
Salt Lake City, UT 84111
The Redevelopment Agency(RDA) Finance Committee meeting will be a hybrid meeting which enables people to join
remotely or in-person to listen to the meeting and participate during public comment items.
To access and participate in the electronic meeting please visit
https://saltlakecity.webex.com/saltlakecity/j.php?MTID=me 175 a4ba2bbe575b8821 e5a88a57a1 d4
Agenda
1. Roll Call
2. Approval of the minutes
A. Review and Approval of the May 5, 2022 RDA Finance Committee Minutes
Members will review the May 5, 2022 meeting minutes and consider for approval.
3. Business
A. 2022 Emergency Gap Funding Notice of Funding Availability through the Housing Development Loan
Program-Tracy Tran and Kate Werrett, RDA Project Managers
The Committee will review the Emergency Gap Financing—Housing Development Loan Program applications and
consider a recommendation to the RDA Board.
4. Adjournment
People with disabilities may make requests for reasonable accommodation no later than 48 hours in advance in order to
attend this Redevelopment Agency Finance Committee. Accommodations may include alternate formats, interpreters, and
other auxiliary aids. This is an accessible facility. For questions, requests, or additional information, please contact the
RDA at 801-535-7240.
MINUTES of the
REDEVELOPMENT AGENCY FINANCE COMMITTEE
Thursday, May 5, 2022
9:00 a.m.
1. Roll Call
The following members were present:
Danny Walz, Redevelopment Agency
Mary Beth Thompson, Finance
Peter Makowski, Economic Development
Brent Beck, Community and Neighborhoods for Blake Thomas
Tony Milner, Housing Stability
The following members were absent:
Claudia O'Grady, Redevelopment Advisory Committee
Also Present:
Sara Montoya, Senior City Attorney;Allison Parks, Senior City Attorney; Cara Lindsley, RDA Deputy Director; Erin Cunningham,
Financial Analyst; Kathryn Hackman, RDA Communications and Outreach Assistant; Felina Lazalde, RDA Office Facilitator;Austin
Taylor, RDA Project Manager;Tracy Tran, RDA Project Manager; Kort Utley, RDA Senior Project Manager; Kate Werrett, RDA
Project Manager; Donna Matturro McAleer, Bicycle Collective; Todd Reader, Bicycle Collective; Sean Murphy, Bicycle Collective;
Max Coreth, High Boy Ventures, LLC(West End); Robyn Stine, RDA Office Manager
2. Business
A. Discussion and Adoption of the RDA Finance Committee Bylaws—Acting Chair, Danny Walz
Mary Beth Thompson made a motion to adopt the RDA Finance Committee Bylaws. Peter Makowski seconded the motion.
Upon roll call,the motion passed with the following breakdown:
Yes No Abstain
Danny Walz Tony Milner
Mary Beth Thompson
Peter Makowski
Brent Beck
B. Selection of ChairNice Chair for Calendar Year 2022—Acting Chair Danny Walz
Mary Beth Thompson nominated Danny Walz for Chair. Peter Makowski seconded the nomination. Upon roll call, the
nomination was confirmed unanimously.
Peter Makowski nominated Blake Thomas for Vice Chair. Danny Walz seconded the nomination. Upon roll call,the nomination
was confirmed unanimously.
C. Open and Public Meetings Act Training—Sara Montoya, Senior City Attorney
City Attorney Sara Montoya explained that each year there is a statutory requirement to provide this training to all members of
public bodies who are subject to the Open and Public Meetings Act. The main point of the act is to recognize that, as a public
body, the business of the RDA Finance Committee should be in view of the public, open and transparent.
Ms. Montoya provided training on the Open and Public Meetings Act and asked if there were any questions.
There being no questions, she ended her presentation.
D. Bicycle Collective Loan Request—Tracy Tran, Project Manager
Ms. Tran gave an overview of the Bicycle Collective request for a$1,750,000 commercial loan for a new construction
development located at approximately 901 S. Gale Street.
Discussion:
• Tony Milner asked about the Bicycle Collective's board and structure, if there was a separate fundraising board,and
what the fund-raising strategies were.
• Sean Murphy, Chair of the Bicycle Collective board provided a brief history of the organization.
• Todd Reeder, Building Committee Chair for the Bicycle Collection explained that COVID has affected fundraising
which is why they are requesting this loan.
• Donna Matturro McAleer shared the mission and vision of the Bicycle Collective. She also explained that this loan will
help mitigate construction costs.
Mary Beth Thompson made a motion to recommend the Bicycle Collection Loan request to the RDA Board for approval. Brent
Beck seconded the motion. Upon roll call,the motion passed unanimously.
E. West End Loan Extension-Kate Werrett&Tracy Tran, Project Managers
Ms.Werrett provided an overview to the RDA Finance Committee of a request for a 5-year term extension for an existing
$3,100,000 commercial loan for an adaptive reuse development located at approximately 740 West 900 South.
Max Coreth, Highboy Ventures, LLC, shared with the Committee that the pandemic changed a lot of things which is why they
are requesting this loan. He said that they would like to activate the alley and create active uses for the space including
restaurants and coffee shops; adding that they have an LO1 with a group that want to open a Cidery. He also said eventually
plan to build affordable housing on the adjacent parcel, which they own.
Discussion:
None
Tony Milner made a motion to recommend the West End Loan Extension request to the RDA Board for approval. Brent Beck
seconded the motion. Upon roll call,the motion passed unanimously.
3. Adjournment
There being no further business the meeting was adjourned.
Danny Walz, Chairperson
This document along with the digital recording constitute the official minutes of the Redevelopment Agency Finance Committee held
May 5, 2022.
RDA FINANCE COMMITTEE MEMORANDUM
NOTICE OF FUNDING AVAILABILITY (NOFA)FOR AFFORDABLE HOUSING:
Emergency Gap Financing - Housing Development Loan Program
Funding Recommendations Meeting
Wednesday, July 13, 2022: 11:00 AM— 1:00 PM, Webex meeting
DATE: July 7, 2022
TO: RDA Finance Committee
1. Redevelopment Advisory Committee: Claudia O'Grady
2. Economic Development: Peter Makowski
3. Finance: Mary Beth Thompson
4. Redevelopment Agency: Danny Walz
5. Community and Neighborhoods: Blake Thomas
6. Housing Stability: Tony Milner
FROM: Tracy Tran and Kate Werrett, Project Managers
RE: Finance Committee—Funding Recommendations for the 2022 Emergency Gap
Funding Notice of Funding Availability through the Housing Development Loan
Program(HDLP).
OVERVIEW: The Redevelopment Agency of Salt Lake City ("RDA") recently issued a Notice of
Funding Availability("NOFA") to solicit emergency gap financing applications through the Housing
Development Loan Program (HDLP). $3,082,500 is available for affordable housing developments
that are ready to break ground in the next few months. Through the HDLP,the RDA intends to commit
low-cost financial assistance to projects to incentivize the development and preservation of affordable
housing within the city limits. These emergency gap funds are specifically targeted to developments
that have experienced unanticipated cost increases where immediate funding is critical for the
development to break ground and/or complete construction in a timely manner. Qualifying
developments must be able to close on an RDA loan within 90 days of RDA Board approval. The
program provides flexibility to accommodate a wide range of projects that may be dependent upon
myriad of underwriting standards by outside lenders.
Funds Availability
$3,082,500 is available for affordable housing developments that have experienced unanticipated cost
increases and immediate funding is critical for a project to break ground and/or complete construction
in a timely manner.
Guiding Policy
In February of 2021, the RDA Board of Directors ("Board") adopted the Housing Allocation Funds
Policy("Policy"),which establishes policies for allocating and directing resources for the development
and preservation of housing by various funding sources. Highlights of the Policy include:
• Housing Funds:the Policy establishes four housing funds based on fund source. The revenues,
expenditures, interest, and payments for each fund source shall be separately accounted for to
ensure the RDA control and oversight to comply with statutory requirements.
• Annual Budgeting Process: The policy provides that on an annual basis,the RDA shall present
for the Board's consideration a Housing Development Funding Strategy that projects
revenues for the upcoming fiscal year and proposes funding priorities and allocations. This
will allow the RDA to be flexible to address current needs, leverage current opportunities,
coordinate with other city resources, and allow funding priorities to align with evolving plans
and policies.
In March 2021, the Board adopted the Housing Development Loan Program Policy, which provides
low-cost financial assistance to incentivize the development and preservation of affordable housing
within Salt Lake City municipal boundaries. The HDLP provides a centralized application,
underwriting, and approval process regardless of the fund source. The HDLP policy includes:
• Funding allocations and priorities determined on an annual basis.
• The transparent administration of funds through a Notice of Funding Availability (NOFA)
process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA
may be issued for a specific funding 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.
• A standardized process for approving applications and a uniform set of underwriting policies.
Review and Approval Process
Pursuant to the Policy, RDA the Finance Committee ("Committee") is charged with reviewing
submitted applications and providing a funding recommendation that will be forwarded to the RDA
Board of Directors ("Board"). The Board will make the final determination of funding allocations,
after which the RDA will issue a conditional commitment letter to those applications that are selected
for funding. The conditional commitment letter between the RDA and the applicant will contain the
covenants,terms and conditions upon which the RDA will provide financial assistance to the proposed
project once financial, legal, regulatory, and design approvals are obtained.
Summary of Applications
An overview of submitted applications in the order received is as follows:
FUNDING REQUEST
US
PROJECT DEVELOPER PRE L0 RDA CURRENT
AN
COMMITMENTS REQUEST
1. The Nest* Janet West/W3 Partners $1,082,500 $1,000,000
2. 1700 South Affordable Wasatch Residential Group,LLC n/a $1,000,000
3. 255 S State Street* Brinshore $14,554,879 $750,000**
4. 144 S 500 E* Peter Corroon/Red Gate Properties $775,000 $1,000,000
TOTAL FUNDING REQUEST: $3,750,000
AVAILABLE FUNDING: $3,082,500
*These projects have received other RDA loan commitment in previous years. To streamline the administration of
these loans, the interest rate reduction calculations may be based on guidelines/approvals from previous years and
the loans will be consolidated if approved by the Board.
**This application does not meet the HDLP threshold requirements as the RDA has contributed to over 10% of
the total project cost. However,RDA staff is exploring other funding sources to help fill the gap,particularly for the
commercial rehab portion of the development.
2
Please refer to Attachment B:Application Overview for an overview of all applications and Attachment
C:Project Summary Sheets for an overview of salient information for each application.
Standards of Review
As per the HDLP guidelines, applications that meet all the Threshold Requirements, found in
Attachment B:Application Overview and Thresholds, will be evaluated based on the following:
I. Alignment with project priorities.
II. Content and quality of the project narrative.
III. Qualifications and experience of the applicant and development team.
IV. Content, effectiveness, and appropriateness of the budget, sources and uses, operating
proforma, and related assumptions.
V. The readiness of the project to proceed to construction.
VI. Any and all content regarding building and site design.
Once applications have been reviewed and ranked by the Committee, they will be forwarded to the
RDA Board of Directors for their approval.
ATTACHMENTS:
A. Project Priorities and Interest Rate Reductions
B. Application Overview and Thresholds
C. Project Summary Sheets
3
ATTACHMENT A: PROJECT PRIORITIES AND INTEREST RATE REDUCTIONS
Project priority criteria will be utilized to evaluate applications as well as provide for interest rate
reductions.
NOFA 0.5%INTEREST
POLICY OBJECTIVE BENCHMARK RANKING RATE
WEIGHT* REDUCTION**
Create opportunities for those Project is a for-sale
who have historically rented in product that will be
1 Homeownership the community to build wealth sold to income 3 X
and establish permanent roots qualified
through homeownership. individuals/families.
Provide opportunities for
families to enjoy the many
benefits of urban living by At least 10%of the
2 Family Housing encouraging the development total units are 3+ 3 X
of housing that is more bedroom units.
conducive to larger household
sizes.
At least 10%of the
Expand the availability of units units are set aside for
for extremely low-income extremely low
households and special income households
Target (30%AMI or less)
3 Populations populations,thereby providing and/or special 3 X
housing options for individuals
or families that are homeless or populations in
at risk of homelessness. partnership with a
governmental or
nonprofit entity.
Projects are either a
missing middle
housing type(i.e.
town homes,
Promote an array of scale of courtyard
Missing Middle project types to diversify the apartments,small-
4 & Unique City's housing stock/forms and scale apartments)or 3 X
Housing Types provide more affordable living a housing type that is
options for residents. not commonly built:
tiny homes, modular
homes, pre-fab
homes,accessory
dwelling units(ADUs)
Projects must be
Achieve green building and built to Off-Site Net
energy conservation standards Zero or On-Site Net
5 Sustainability to lower housing expenses, Zero standard as 1 X***
conserve resources,and described in the
promote resiliency. RDA's Sustainable
Development Policy.
Transportation Promote a multimodal Projects must meet
6 1 X
Opportunities transportation network and two of the following:
4
ensure convenient and • Includes a car
equitable access to a variety of sharing, bike
transportation options. sharing,or transit
pass program that
is widely available
to employees/
residents
• Includes a
commercial project
that includes
employee shower,
locker,and bicycle
facilities
• Is located within
1/3 mile walking
distance of a TRAX
station or S-Line
station
• Implements
reduced parking
strategies without
negatively
impacting the
neighborhood
• Incorporates
majority of parking
within a primary
structure to
minimize the need
for a surface
parking lot.
Projects are located
within an active RDA
Utilize the development of project area, refer to
housing to reduce the number RDA Project Area
Neighborhood of vacant and distressed Map and incorporate7 1 X
Safety buildings and lots to reduce documented Crime
crime and return land to a Prevention through
productive use. Environmental
design (CPTED)
principals.
Projects are located
within a High
Opportunity Area,
Provide for Neighborhoods of which is defined as
Expand Opportunity by promoting the an area that provides
8 economic diversity of the conditions that 1 X
Opportunity housing stock within expand a person's
neighborhoods. likelihood for social
mobility as identified
through an analysis
of quality-of-life
5
indicators. Refer to
High Opportunity
Area Map and Table.
Buildings shall
include an active
Encourage housing that is high- ground floor use,
Architecture& quality,enduring,and that significant ground
9 Urban Design contributes to neighborhood floor glass,durable 1 X
(Neighborhood context and livability through building materials
Impact) architectural and urban design and engaging
best practices. building entrances as
determined by RDA
staff.
Projects are mixed-
use and establish
new services,
Foster a mix of land uses and amenities,or
10 Commercial unique neighborhood business underrepresented 1 X
Vitality districts that adequately meet business types in the
the local community's needs. neighborhood that
the local community
identifies as lacking
and desired.
Acknowledge a
neighborhood's
history and maintain
its unique character
Historic Encourage the preservation through
11 Preservation and/or reuse of buildings to preservation,
1 X
preserve the character of
/Adaptive Reuse neighborhoods. rehabilitation,or
repurposing of
historic or
underutilized
structures.
Project contributes
Promote cultural expression at least 1.5%of the
and add to the experience and RDA contribution
12 Public Art value of the built environment towards the 1 X
through art that is publicly installation of art
visible or accessible for all to onsite or towards the
experience. RDA art fund as
outlined in the RDA
Art Policy.
*Note:NOFA Ranking Weight:Uses a number(the weight)between 1 and 3 to assess the importance of the funding priority, with 1
being of lower importance and 3 being of the highest importance.
**Note:0.5%Interest Rate Reductions: While 12 interest rate reductions will be available, the maximum interest rate can be reduced a
maximum of 2%,thereby reducing the interest rate to a minimum of 1%.Please see Attachment B of the Guidelines for applicable
standard loan terms and conditions.
***Note:Sustainability Interest Rate Reduction:As per the RDA's Sustainable Development Policy,projects built to an Off-Site Net Zero
standard are eligible for a 1%interest rate reduction and projects built to an On-Site Net Zero standard are eligible for a 2%interest rate
reduction.
6
ATTACHMENT B: APPLICATIONS OVERVIEW AND THRESHOLDS
The Nest 1700 South Affordable 144 South 255 State Street
382 Rio grande 230 W 1700 S 144 S 500E 265 S.State St(Overall)
Current RDA Loan Request $1,000,000 $1,000,000 $1,000,000 $750,000
Total RDA Contribution(approved&
pending) $2,082,500 $1,000,000 $1,750,000 $15,304,879
Project Cost $62,841,781 $57,835,943 $35,177,365 $95,142,936
#Units 200 237 110 190
RDA Funds per Unit $10,412.50 $4,219.41 $15,909.09 $80,551.99
Financing Gap Requirement:
Current RDA Loan Request Participation 1.59% 1.73% 2.84% 0.79%
Overall RDA Project Participation(%)of 3.31% 1.73% 4.97% 16.09%
total project cost
Proposed Loan Terms 20/40
Term/Amortization 2.5%Interest 30/30 40/40 30/30
Interest Cashflow payments with 3.5%Interest 1%Interest 1.63%Interest*
Repayment Type balloon payment at end Cashflow Loan Amortizing Loan Cashflow Loan
of term
Eligible Applicants:
1)For Profit,Partnersp,JV or Sole
2)Private 501c3 For Profit-LLC For Profit-LLC For Profit-LLC For Profit-LLC
3)Public Housing agency,unit of govt
Development Team Experience: Red Gate est.1995
1)Experience,Financial and technical cap. Wasatch Residential
W3 Partners Valmont est.2010 Brinshore Development,LLC
2)LT viability and compliance Group,LLC
EMG est.1985
Eligible Project Types:
1)New Construction
2)Adaptive Reuse New Construction New Construction New Construction New Construction
3)Rehab:Substantial
Eligible Activities: Gap Financing for Gap Financing for Predevelopment& Gap Financing for Construction
Construction Costs,Site imp and soft costs Construction Costs Construction Costs Construction Costs Costs
Site Control: Deed of Trust with
Ownership,option,sale agreement or LT Lease Ground Lease to Project Special Warranty Deed Special Warranty Deed Deed of Trust
Ilc (100%interest)
Minimum Affordability:
1)20%@ 60 AMI 75(39%)@ Market
200(100%)@ 60%AMI 237(100%)@ 60%AMI 110(100%)@ 60%AMI 91(48%)@ 60%AMI
2)Max Income 80%AMI) 24(13%)@<40%AMI
Unit Mix Market 60% <40%
Studio 24 Studio 12 17
Studio 140 1BR 130 Studio 53 1BR 38 4
1BR 80 2BR 73 1BR 57 2BR 20 20
3BR 10 3BR 3 9
4BR 2 3
Sustainability:1)E-Star Score>90(80 if getting
a building permit in 2022) 84 96 96 Letter of Intent
Project Priorities/Interest Rate Transportation Opportunities,
Reductions-These were used to Transportation
Neighborhood Safety, Family Housing,Target
calculate interest rate%above in Opportunities,
Transportation Populations,Neighborhood
Proposed Loan Terms Opportunities, Neighborhood Safety Neighborhood Impact, Impact,Neighborhood Safety,
Commercial Vitality,
Neighborhood Impact Public Art Historic Preservation/Adaptive
Reuse
*This project has existing loan with the RDA @ 1.63%interest rate.If project is approved for funding,this loan would fold into existing loan
7
ATTACHMENT C: PROJECT SUMMARY SHEETS
8
HOUSING
DEVELOPMENT PROJECT NAME: The Nest
LOAN PROGRAM ADDRESS: 382 S Rio Grande St
OVERVIEW: SOURCES:
DEVELOPER: W3 Partners, LC FUNDING SOURCES AMOUNT
REQUEST TYPE: Construction Costs Perm Loan $25,700,000 40.9%
PROJECT TYPE: New Construction Tax Credit Equity 28,924,151 46.0%
EXISTING LAND USE: Office and Vacant Land Deferred Developer Fee 1,000,000 1.6%
Olene Walker Loan $1,000,000 3.2%
HOUSING UNITS: 220 TOTAL RDA Loans $2,082,500 3.3%
60-40% Investor Equity $3,075,130 4.9%
TOTAL MARKET AMI <40%AMI Questar Rebate $60,000 0.1%
Studio 140 - Rocky Mountain Power Rebate $60,000 0.1%
1-Bed 80 TOTAL SOURCES: $62,841,781 100%
TOTAL 220
USES:
FUNDING REQUEST: FUNDING USES AMOUNT
NOFA REQUEST TOTAL PROJECT COST Construction $48,400,000 77.0%
$1,000,000 1.6% $62,841,781 Development $5,008,988 8.0%
Reserves 1,385,860 2.2%
TIMELINE: Dev Fee 4,328,797 6.9%
Commence Construction September 2022 Deferred Dev Fee 1,000,000 1.6%
Complete Construction December 2024 Financing Costs 2,377,761 3.8%
Bond Issuance Expenses 340,375 0.5%
TAX CREDITS: TOTAL USES: $62,841,781 100%
Applying for Tax Credits(Y/N): Y
Tax Credits Awarded (Y/N): Y,4% PROPOSED TERMS:
Interest Rate: 2.5%
Term/Am: 20 yr term/40 yr Am
Details: Cashflow repayments
annually with balloon
payment in Y20. The
land will be leased to the
project Ilc and will be
based on cashflow.
Land lease payments are
said 'rior to debt service.
DOES THE PROJECT MEET NOFA THRESHOLD
REQUIREMENTS?: Yes, and this project was awarded HDLP funds in the 2021 Competitive NOFA.
PROJECT SUMMARY:
According to developer"W3 Partners has purchased land consisting of three parcels totaling approximately 1.59 acres and
located at 358 and 382 South Rio Grande Street and 365 South 500 West in Salt Lake City, Utah.
9
Located on Parcel 1 is an existing office building consisting of approximately 27,000 rentable square feet that is 100%leased
until 2028. Parcel 2 is adjacent to, and south of, the office building and currently has a surface parking lot that parks the office
building. Parcel 3 is vacant land and is adjacent to both parcels on their west boundary. Parcels 2 and 3 can be developed
immediately(1.08 acres), and this is the land upon which the Low-Income Housing Tax Credit(LIHTC)multi-family housing
will be built.
The LIHTC multi-family project(The Nest @ Rio Grande) will consist of six floors, with five levels of residential units totaling
220 units situated over one level of structured parking(50 stalls).Additional parking(22 stalls) will be built on the north portion
of Parcel 3 and situated behind the office building. This parking will be used by the office building during business hours
Monday through Friday and used by the tenants of the apartment building during the nights and weekends. We are
anticipating a 100%LIHTC project at 60%of the Average Median Income (AMI). We have a market study performed by
Western States Multifamily that suggests this is a great location for an affordable project, with LIHTC rents being on average
14%-29%less than the surrounding market rents."
DEVELOPER SUMMARY:
According to the developer, "W3 Partners, LC, was founded in 2020 to continue the investment, development and
management of real estate assets that the three principals have been engaged in for many years. On a combined basis, the
three principals have been engaged in this business for over 100 years. Their previous company began as Cottonwood
Partners in 1997 and had an established record of very successfully investing over$2 billion in new development and
existing properties over its 28-year history. Founders of W3 Partners were owners of Cottonwood and/or its assets and were,
respectively, the CEO, CFO and Director of Asset Management, and Broker, Directing of Leasing and Development Officer for
Cottonwood.
The focus of W3 Partners is to invest in properties that can be significantly enhanced by development or redesign and
refurbishment. This philosophy has been successfully executed in many projects, and they include the 1 million square-foot
Cottonwood Corporate Center, the Scowcroft Office Building, the Newpark Office Buildings, and the 45-acre Forge
development. These are all in Utah and are representative of the company's expertise and success. The capital necessary for
the these, and other projects, has been provided by wealthy individuals, private equity firms, institutional investors, banks and
insurance companies."
SITE MAP:
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10
PROJECT RENDERINGS:
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Updated Exterior Rendering - April 2022
11
HOUSING
DEVELOPMENT PROJECT NAME: 1700 South Affordable
LOAN PROGRAM ADDRESS: 230 W 1700 S
OVERVIEW: SOURCES:
Jeff Nielson —Wasatch FUNDING SOURCES AMOUNT
DEVELOPER: Residential Group, LLC Equity $23,861,204 41.3%
REQUEST TYPE: Construction Costs Tax Exempt Loan $31,300,000 54.1%
PROJECT TYPE: New Construction Olene Walker Loan $1,000,000 1.7%
Office/Warehouse& RDA Gap Funding $1,000,000 1.7%
EXISTING LAND USE: Vacant Land Deferred Developer Fee $674,739 1.2%
HOUSING UNITS: 237 TOTAL TOTAL SOURCES: $57,835,943 100%
60-40%
TOTAL MARKET AMI <40%AMI USES:
Studio 24 — FUNDING USES AMOUNT
1-Bed 130 - Land $4,260,823 7.4%
2-Bed 73 - Construction Costs $43,926,951 76.0%
3-Bed 10 - FFE $474,000 0.8%
TOTAL 237 - Third Party Reports $98,959 0.2%
Architect&Engineering $651,095 1.1%
FUNDING REQUEST: Permits&Fees $410,503 0.7%
NOFA REQUEST TOTAL PROJECT COST Insurance/Bonding/Taxes $425,400 0.7%
$1,000,000 1.72% $57,835,943 Marketing/Leasing/Operating $924,317 1.6%
Reserve
Legal/Organizational $156,307 0.3%
TIMELINE: Finance Fees/Cost of Issuance $946,370 1.6%
Commence Construction June 2021 Debt Service $1,205,106 2.1%
Complete Construction June 2023 Developer Fees $4,356,112 7.5%
TOTAL USES: $57,835,943 100%
TAX CREDITS:
Applying for Tax Credits (Y/N): Y PROPOSED TERMS:
Tax Credits Awarded (Y/N): Y,4% Interest Rate: 3.5%
Term/Am: 30 yr term/30 yr amort
Details: Cashflow repayments
annually
DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: Yes
PROJECT SUMMARY:
According to developer"Wasatch Residential Group, LLC("WRG)plans to develop 3.06 acres of land at 204 West 1700
South, in Salt Lake City, Utah as a 237-unit affordable housing project. The project will consist of one five-story building with
interior corridors and elevators that will meet all pertinent zoning requirements. Construction will be wood-frame with five floors
of residential wrapped around five floors of structured parking. The property will consist of 24 studio apartments, 130 one-
bedroom units, 73 two-bedroom units, and 10 three-bedroom units. The units will be equipped with central heat/air
conditioning, hardwood cabinets, window coverings, and energy efficient appliances. The property will target tenants who earn
60%or less of the area median income.
12
There is high demand for this type of workforce affordable housing in the Salt Lake City area. On-site community amenities
will consist of pool, spa, sun deck with BBQ grills and seating, a large open courtyard, energy efficient windows,pet friendly
amenities, access for persons with disabilities, covered parking, exercise gym facility and 24-hour emergency maintenance
service.
The construction is tentatively scheduled to begin March 2021 and finish January 2023. The acquisition and construction of
1700 South Affordable Apartments is proposed to be financed with Private Activity Bonds, 4% Federal Low-Income Housing
Tax Credits, and deferred developer fee. Enterprise Community Capital is slated to provide the equity from the sale of the tax
credits and Key Bank is scheduled to provide construction/permanent debt for the project.
1700 South Affordable is ideally located near downtown Salt Lake City. Its central location in the Salt Lake valley, as well as
its proximity to many vital services that are important to residents, make the project a tremendous addition to the affordable
housing stock in the Salt Lake valley. The proximity to public transportation, along with convenient walkable access to nearby
restaurants and retail, makes this project an ideal location for workforce affordable housing."
DEVELOPER SUMMARY:
According to the developer, "As one of the premier real estate development companies in Utah, Wasatch Residential Group
will utilize its competitive advantages to ensure maximum development cost efficiencies.As an owner/manager of over 24
apartment communities in the state of Utah, Wasatch and its affiliates are able to obtain very competitive local pricing for its
construction contracts and materials, which translates to more effective and efficient use of taxpayer dollars."
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15
HOUSING
DEVELOPMENT PROJECT NAME: 144 South
LOAN PROGRAM ADDRESS: 144 S. 500 East
OVERVIEW: SOURCES:
Peter Corroon—144 South FUNDING SOURCES AMOUNT
DEVELOPER: Apartments LLC Senior Lender Debt $10,661,959 30.3%
REQUEST TYPE: Emergency Gap Deferred Developer's Fee $2,373,206 6.7%
PROJECT TYPE: New Construction Salt Lake County $1,250,000 3.6%
Vacant Office Olene Walker $2,817,093 8.0%
EXISTING LAND USE: Buildini/House RDA Loans $1,775,000 2.3%
HOUSING UNITS: 110 TOTAL LIHTC Equity $16,270,107 46.3%
60 40% Energy Rebates $30,000 0.1%
TOTAL MARKET AMI <40%AMI TOTAL SOURCES: $35,177,365 100%
Studio 53 1-Bed 57 — USES:
TOTAL 110 — FUNDING USES AMOUNT
Site Work $2,020,947 5.7%
FUNDING REQUEST: Construction $22,860,825 65.0%
NOFA REQUEST TOTAL PROJECT COST Contingency $1,219,914 3.5%
$1,000,000 2.8% $35,177,365 Architectural &Engineering Fees $428,500 1.2%
Profit and Overhead $4,394,460 12.5%
TIMELINE: Interim Financing Expenses $1,478,964 4.2%
Commence Construction Se•tember2022 Permanent Financing Expenses $1,605,263 4.6%
Complete Construction Janua 2025 Soft Costs $497,228 1.4%
Project Reserves $671,264 1.9%
TAX CREDITS: Site Work $2,020,947 5.7%
Applying for Tax Credits(Y/N): Y TOTAL USES: $35,177,365 100%
Tax Credits Awarded (Y/N): Y,4%
PROPOSED TERMS:
Interest Rate: 1%
Term/Amortization: 40/40
DOES THE PROJECT MEET NOFA THRESHOLD Loan Details Hard Repayments,fully
REQUIREMENTS?: Yes, and this project was awarded amortizing
HDLP funds in the 2021 Competitive NOFA. Repayment Priority: Subordinate to Senior
Lender
PROJECT SUMMARY:
From Developer—The developer, 144 South Apartments, LLC, proposes to build the 144 South project, a 6-story(above-
grade), 110-unit apartment building on a 0.62-acre parcel located at 144 S 500 East in Salt Lake City. The project will include
a 420 square-foot cafe (or other retail)which is integrated into the entry lobby, an approximately 1,600 sf co-working business
center, plus an abundance of amenity spaces including a club house, exercise facility, pet wash, secure bike parking and
large outdoor deck. There will be 53 studio units and 57 one-bedroom units. The developer is seeking Low-Income Housing
Tax Credits so that building contains 110 affordable housing units (100%)with rents for tenants at or below 60%Area Median
Income.
16
The building will consist of five floors of wood frame construction over a 3-level concrete parking structure with 113 parking
spaces available for tenants. The Department of Housing and Urban Development is requiring at least one-to-one parking for
each apartment in order to obtain its funding.
DEVELOPER SUMMARY:
From Developer— 144 South Apartments, LLC consists of two partners, Red Gate Properties and Valmont Investments. Red
Gate Properties was founded in 1995 by brothers Peter and Christopher Corroon. Red Gate Properties has developed,
rehabilitated and/or managed several multi-family and commercial real estate properties in Utah, including seven multi-family
properties as well as a self-storage facility, two office buildings and two warehouses. Peter Corroon has completed three
affordable tax-credit projects. More recent affordable housing projects include the Cornell Street Apartments with 146 units
and the Casa Milagros by Centro Civico Housing with 61 apartments.
Valmont Investments, LLC invests in single-family and multi-family investment properties in the Salt Lake valley.
Once completed,the property will be professionally managed on a day-to-day basis by the EMG Management which has
many years of experience with multi-family affordable housing projects.
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18
HOUSING
DEVELOPMENT PROJECT NAME: 255 State Street
LOAN PROGRAM ADDRESS: 265 S State Street
OVERVIEW: SOURCES:
Whitney Weller—Brinshore FUNDING SOURCES AMOUNT
DEVELOPER: Development, LLC Federal LIHTC Equity $34,664,058 36.4%
REQUEST TYPE: Construction Costs Perm Loan $31,980,000 33.6%
PROJECT TYPE: New Construction Perm Loan-Second Traunch $1,202,499 1.3%
EXISTING LAND USE: Vacant Land State LIHTC Equity $2,654,000 2.8%
SLC Seller's Note $5,000,000 5.3%
HOUSING UNITS: 190 TOTAL RDA Loan $9,554,879 10.0%
70-80% 60 40% <40%AMI RDA Emergency GAP Loan $750,000 0.8%
TOTAL MARKET AMI AMI State-Olene Walker Funds-1 $1,770,100 1.9%
Studio 5 7 17 3 (HOME)
1-Bed 10 28 42 13 State-Olene Walker Funds-2 $2,000,000 2.1%
2-Bed 5 15 20 4 (HTF)
3-Bed 1 2 9 2 SL County-HOME $300,000 0.3%
4-Bed 1 1 3 2 SL City-HOME/HTF $755,000 0.8%
TOTAL 22 53 91 24 Ales Foundation $750,000 0.8%
GP Equity $200 0.0%
FUNDING REQUEST: Rocky Mountain Power Rebate $127,300 0.1%
NOFA REQUEST TOTAL PROJECT COST Deferred Developer Fee $3,000,000 3.2%
$750,000 0.8% $95,142,936 TOTAL SOURCES: $95,142,936 100.0%
TIMELINE: USES:
Commence Construction April 2021 FUNDING USES AMOUNT
Complete Construction December 2022 Land Cost/Acquisition $5,000,000 5.3%
Construction $66,196,319 69.6%
TAX CREDITS: Architect and Engineering $3,581,415 3.8%
Applying for Tax Credits (Y/N): Y Financing $5,678,393 6.0%
Tax Credits Awarded (Y/N): Y, 9% &4% Legal Fees $505,364 0.5%
Reserves $2,056,338 2.2%
Other Project Costs $4,839,977 5.1%
Developer Fee $7,285,130 7.7%
DOES THE PROJECT MEET NOFA THRESHOLD TOTAL USES: $95,142,936 100.0%
REQUIREMENTS?: No, if approved, the overall RDA
housign loans for 255 S State Street project as a % of TPC PROPOSED TERMS:
would be 16%. The Housing Development Loan Program Interest Rate: 1.63%
limits participation to 10%. The RDA is reviewing alternative Term/Am: 30 yr term/30 yr amort
funding sources. Details: Cashflow repayments
PROJECT SUMMARY:
According to developer"255 S. State Street is a prime location within downtown Salt Lake City with the opportunity to
influence significantly the economic development of the multiple planning regions it is identified with including the Central
Business District, the Broadway District overlap and the Cultural Core.
19
Through a Request for Qualifications, the Redevelopment Agency of Salt Lake City chose the Brinshore Development
Team to develop this exciting and critical site in downtown Salt Lake City. With its challenging history, it is of upmost
importance to the Redevelopment Agency, City Council and Mayor's office that the redevelopment effort be thoughtful,
collaborative and timely.
The Brinshore Development team has proposed a 190 unit mixed-income mixed-use development plan to be funded
through a combined 9%Low Income Housing Tax Credit and 4%Low Income Housing Tax Credit with Tax Exempt Bonds
financing structure. The 9%component consists of 72 residential units, 27 parking spaces, the historic Cramer House
and a variety of amenities for residents. The 4%component will consist of 118 residential units with approximately
20,000 SF of commercial space and 44 parking spaces. The overall project consists of two towers connected by a
subterranean parking structure and activated paseo at street level. The smaller 8 story tower is the subject of this 9%
LIHTC application.
Of the 72 units, 50 are affordable to families between 20%and 80%of AMI with the remaining 23 units to be market rate
as described below."
DEVELOPER SUMMARY:
According to the developer, `Brinshore Development specializes in the development of affordable and market rate housing by
blending public and private resources. Brinshore is able to develop financially successful rental and home ownership options
affordable to community residents.All of Brinshore's developments are conceived with input and cooperation from local
community officials, community organizations, and community residents. Best efforts are put forth to provide employment
opportunities for community residents. This combination of public,private and community involvement has proven to be an
effective formula for successful residential developments.
Brinshore prides itself on its success in financing mixed income affordable rental housing using layered financing, including
low-income housing tax credits, tax-exempt bonds and a variety of funds available for these efforts. Since its first project in
1994, Brinshore has been one of the most consistently successful developers in obtaining tax credit reservations, receiving
over 90 tax credit awards around the country. Additionally, Brinshore has now obtained four tax credit reservations and two
tax-exempt bond allocations from the Utah Housing Corporation.
To enhance affordability for its residents, Brinshore has used more than 25 different subsidy programs in its developments
including CDBG and HOME funds and is always prepared to learn the rules for new sources of finance. Brinshore leverages
these scarce dollars with private funds to create much needed affordable housing in mixed income settings and to catalyze
neighborhood investment.."
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