04/11/2023 - Meeting Materials ICI®III• 411
�l11s ,,,,
Board of Directors of the
REDEVELOPMENT AGENCY OF
SALT LAKE CITY
AGENDA
April 11, 2023 Tuesday 2:00 PM
Council meetings are held in a hybrid meeting format.Hybrid meetings allow people to join online or in person at
the City&County Building.Learn more at www.sle.gov/council/agendas.
Council Work Room
451 South State Street Room 326
Salt Lake City,UT 84111
SLCRDA.com
In accordance with State Statute and City Ordinance,the meeting may be held electronically. After 5:00
p.m.,please enter the City&County Building through the main east entrance.
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:io:o6:40
A. Comments:
1. General Comments to the Board TENTATIVE
ME 5 min
The RDA Board of Directors will receive public comments regarding Redevelopment
Agency business in the following formats:
1. Written comments submitted to RDA offices,451 South State Street, Suite 118, P.O.
Box 145455, Salt Lake City, UT. 84114-5455•
2. Comments to the RDA Board of Directors. (Comments are taken on any item not
scheduled for a public Hearing, as well as on any other RDA Business. Comments
are limited to two minutes.)
B. Public Hearing- individuals may speak to the Board once per public hearing
topic for two minutes, however written comments are always accepted:
NONE.
C. Redevelopment Agency Business -The RDA Board of Directors will receive
information and/or hold discussions and/or take action on:
�. tpproval of Minutes 2:05 P.M.
5 min.
The Board will approve the meeting minutes of February 14, 2023.
2. Informational: Housing and Transit Reinvestment Zones Creation
Follow-up AftL ft AL � 2:10 P.M.
20 min.
The Board will receive a follow-up briefing about Housing and Transit Reinvestment
Zone(HTRZ)overview.This would review potential HTRZ policies, state law changes
from the 2023 legislative session,explore potential areas in Salt Lake City where HTRZs
could be implemented,and next steps.
3. Resolution: Bicycle Collective Loan 2:30 p.m.
20 min.
The Board will receive a briefing about, and consider adopting, a resolution that would
authorize modifications to the approved loan terms and extending a limited waiver of the
Loan Policy for a loan to the Bicycle Collective.The additional amendments and
extensions are to facilitate the project receiving New Market Tax Credits.This would
fund construction of the nonprofit's headquarters located at approximately 9o1 South
Gale Street and along the 9-Line Trail.The project will contain about 15,000 square feet
for a multi-use building with retail,programming, and operations space.
4. Resolution:Affordable Housing Funding Priorities for Fiscal
Year 2023-24 � 2:5o P.M.
20 min.
The Board will receive a briefing about, and consider a resolution that would adopt the
Affordable Housing Funding Priorities for Fiscal Year 2023-24.These Funding Priorities
guide the upcoming fiscal year's housing activities including the requirements of the
competitive affordable housing Notice of Funding Availability(NOFA).
5. Reso u ion: RDA Budget Ame�ment No-3 for Fiscal Year 202
3:io p.m.
23
Lo min.
The Board will receive a briefing about a resolution that would amend the final budget of
the Redevelopment Agency of Salt Lake City for Fiscal Year 2022-23. Budget
amendments happen several times each year to reflect adjustments in the
Redevelopment Agency's budget,including proposed project additions and
modifications, and staffing changes.The amendment includes adjustments to budgets
based on actual property tax increment received to satisfy obligations under state law,
interlocal agreements with other taxing entities, and reimbursement agreements with
private property owners, and several holding accounts for capital improvements and
strategic intervention funds for future opportunities in project areas among other items.
6. Report and Announcements from the Executive Director TENTATIVE
I 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.
7. po
rt and Announcements from RDA Staff TENTATIVE
L 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 scheduling
items.
D. Written Briefings — the following briefings are informational in nature and
require no action of the Board.Additional information can be provided to the
Board upon request:
i. Informational: RDA Arts Funds Update Written Briefing
The Board will receive a written briefing about the RDA's plan to use $408,000 of
previously allocated public art funds.The projects will be in line with the Agency Art
Policy,which was updated with Board approval in 2021,including further clarification on
the Agency's art programming and collaboration process with the Salt Lake City Arts
Council.
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:
�. Set Date— Resolution: Budget for the Redevelopment Agency of Salt Lake _
City for Fiscal Year 2023-24ML
The Board will set the dates of Tuesday, May 16, 2023 and Tuesday,June 6, 2023 at 7
p.m.to accept public comment and consider approving a resolution adopting the final
budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24.
2. Set Date — Resolution: RDA Budget Amendment No-3 for Fiscal Year
2022-23
The Board will set the date of Tuesday, May 9, 2023 at 2 P.M.to accept public comment
and consider adopting a resolution that would amend the final budget of the
Redevelopment Agency of Salt Lake City for Fiscal Year 2022-23. Budget amendments
happen several times each year to reflect adjustments in the Redevelopment Agency's
budget,including proposed project additions and modifications, and staffing changes.
The amendment includes adjustments to budgets based on actual property tax increment
received to satisfy obligations under state law,interlocal agreements with other taxing
entities, and reimbursement agreements with private property owners, and several
holding accounts for capital improvements and strategic intervention funds for future
opportunities in project areas among other items.
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:
discussion of the character,professional competence,or physical or mental health of
1' 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
prevent the public body from completing the transaction on the best possible
(ii) 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 and body previously gave public notice that the property would be offered
for ale
the terms of the sale are publicly disclosed before the public body approves the
(iii) 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.
CERTIFICATE OF POSTING
On or before 5:00 P.M.on Thursday,April 6, 2023,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.
The City&County Building is an accessible facility. 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.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
PENDING MINUTES — NOT APPROVED
The Board of Directors of the Redevelopment Agency(RDA) of Salt Lake City met on Tuesday,
February 14, 2023.
The following Board Members were present:
Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro Puy,
Darin Mano
Present Agency Leadership:
Mayor Erin Mendenhall, Danny Walz—Chief Operating Officer, Cara Lindsley— Deputy
Director
Present City Staff:
Katherine Lewis—City Attorney, Cindy Lou Trishman—City Recorder,Michelle Barney—
Minutes&Records Clerk,Thais Stewart—Deputy City Recorder, Isaac Canedo—Public
Engagement Communication Specialist,Taylor Hill—Constituent Liaison/Policy Analyst, Scott
Corpany—Staff Assistant, Lauren Parisi— Senior Project Manager, RDA, Lucas Goodrich—
Project Coordinator, RDA,Makena Hawley— Project Manager, RDA
Director Chair Puy presided at and conducted the meeting.
The meeting was called to order at 2:00 pm
1
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
A. Comments:
1. General Comments to the Board TENTATIVE
ME 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.)
Director Puy welcomed everyone to the meeting and reviewed the rules of decorum.
No public comments.
B. Public Hearing- individuals may speak to the Board once per public hearing
topic for two minutes, however written comments are always accepted:
NONE.
C. Redevelopment Agency Business -The RDA Board of Directors will receive
information and/or hold discussions and/or take action on:
i. Approval of Minutes2:05 p.m.�
5 min.
The Board will approve the meeting minutes of December 13, 2022 and January 10,
2023.
Motion:
Moved by Director Mano, seconded by Director Dugan to approve the
meeting minutes from December 13, 2022 and January lo, 2023.
AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler,Alejandro Puy, Darin
Mano
ABSENT: Chris Wharton
Final Result: 6 — o Pass
2. Resolutions:Amending Two Utah Performing Arts CiiML
Interlocal Agreements 2:10 P.M.
AN I 20 min.
The Board will receive a briefing about, and will consider adopting,resolutions
approving changes to two interlocal agreements between Salt Lake City,the
2
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
Redevelopment Agency(RDA), and the Utah Performing Arts Center Agency(UPACA),
for operation of the George S. and Dolores Dore Eccles Theater.The changes are related
to cost increases and funding ongoing maintenance of the facilities.
Lucas Goodrich gave a brief overview of the two resolutions and stated the City
Council would need to make a similar decision.
Directors, Lucas Goodrich and Allison Parks reviewed the RDA and City Council role in
approving the resolutions and the increase in funding and if it would be an annual cost.
Motion:
Moved by Director Dugan, seconded by Director Valdemoros to adopt
Resolution 01 of 2023, approving the fourth amendment to the operating
agreement for the Utah Performing Arts Center and Resolution o2 of 2023,
approving the second amendment to the interlocal cooperation agreement
(Utah Performing Arts Center).
AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler,Alejandro Puy, Darin
Mano
ABSENT: Chris Wharton
Final Result: 6— o Pass
3. Resolution: State Street Community Reinvestment Area Budget
Amendment
2:3o p.m.
20 min.
The Board will receive a briefing about a resolution that would amend the budget for the
State Street Community Reinvestment Area(CRA)for the 20-year consolidated budget.
The purpose of this budget amendment is to align the State Street CRA budget adopted
by the Board in August of 2018 with the terms of the executed interlocal agreements with
participating taxing entities including Salt Lake City, Salt Lake City School District and
Salt Lake County.
Lauren Parisi and Makena Hawley presented the budget amendment,highlighting:
• Project area(300 South to 2100 South and Zoo East to I-15)
• Key changes:
• Reduced collection term from 25 to 20 years
• Fewer total taxing entities participating including Salt Lake City, Salt Lake
City School District, and Salt Lake County
• Updated tax increment revenue projections
• Current budgets
• Budgets as amended
• Next steps for the proposal
Directors, Lauren Parisi and Makena Hawley discussed the reasons for the proposal
needing to be amended.
Director Fowler thanked RDA and Council Staff for all of the hard work that went into
bringing this proposal to fruition.
4. Report and AnnouncememnlImsWom the Executive Director
Report of the Executive Director, including a review of information items,
3
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
announcements, and scheduling items.The Board of Directors may give feedback or
policy input.
No report.
5. Report and Announcements from RDA Stal TENTATIVE
-is,- kL 5 min.
The Board may review Board information and announcements.The Board may give
feedback on any item related to City business,including but not limited to;
• Project Updates; and
• Scheduling Items.
Danny Walz reviewed the project Housing Transit Redevelopment Zone (HTRZ)
located around the goo South 200 West Trax Station.
Directors and Danny Walz discussed the location of the project, applications for projects
around the Depot area and Granary District, areas that were encompassed within the goo
South project area, and how other taxing entities were included in a HTRZ.
Directors wanted a briefing on the process of choosing HTRZ areas and what was
included in review/approval process and what was learned from this project.
Danny Walz reviewed the Notice of Funding Availability(NOFA)discussed at the
January 10, 2023, RDA meeting,the difference in the affordability of the Liberty Corner
project(78 of the 200 units would be under 78% area median income(AMI)) and the
Finance Committee determined the changes would not affect their recommendation of
approval. Danny Walz announced the groundbreaking for the Spark Project would be
held on February 28, 2023, at 10:3o am.
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. Set Date — Resolution: State Street Community Reinvestment
Area Budget Amendment 2.3o p.m.
20 min.
4
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
The Board will set the date of Tuesday, March 14, 2023 at 2 p.m.to accept public
comment about a resolution that would amend the 20-year consolidated budget for the
State Street Community Reinvestment Area(CRA).The purpose of this budget
amendment is to align the State Street CRA budget adopted by the Board in August of
2018 with the terms of the executed interlocal agreements with participating taxing
entities including Salt Lake City, Salt Lake City School District and Salt Lake County.
Motion:
Moved by Director Petro, seconded by Director Dugan to approve the Consent
agenda.
AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro
Puy, Darin Mano
Final Result: 7— o Pass
F. Closed Sessio
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:
discussion of the character,professional competence,or physical or mental health of
1' 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
prevent the public body from completing the transaction on the best possible
(ii) terms;
strategy sessions to discuss the sale of real property,including any form of a water
4' 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) publicthe and body previously gave public notice that the property would be offered
for sale
the terms of the sale are publicly disclosed before the public body approves the
(iii) 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.
Motion:
Moved by Director Fowler, seconded by Director Mano to enter into Closed
Session for the purposes of strategy sessions to discuss the purchase, exchange,
sale or lease of real property and attorney-client matters.
AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan,Amy Fowler, Chris Wharton,Alejandro
Puy, Darin Mano
5
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
Final Result: 7— o Pass
Motion:
Moved by Director Valdemoros, seconded by Director Dugan to exit Closed
Session.
AYE:Ana Valdemoros,Victoria Petro, Daniel Dugan, Chris Wharton,Alejandro Puy, Darin
Mano
ABSENT:Amy Fowler
Final Result: 6— o Pass
Closed Session Started at 2:35 pm
Held via Webex and in the Work Session Room(location)
Council Members in Attendance: Council Members Dugan, Fowler, Petro, Puy,Mano,Wharton
and Valdemoros.
City Staff in Attendance: Mayor Mendenhall,Allison Parks, Katherine Lewis, Rachel Otto,
Lindsey Nikola, Mary Beth Thompson, Cindy Gust-Jenson,Jennifer Bruno,Allison Rowland,
Ben Luedtke,Taylor Hill, Sam Owen, Scott Corpany, Robyn Stine, Eric Holmes,Austin Taylor,
Jim Sirrine, Corinne Piazza,Marcus Lee, Kathryn Hackman, Lucas Goodrich,Amanda
Greenland,Tracy Tran, Kate Werrett, Lauren Parisi, Danny Walz, and Cindy Lou Trishman
Closed Session ended at 3:00 pm.
G.
6
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday, February 14, 2023
Meeting adjourned at 3:00 pm
Minutes Approved:
Redevelopment Agency Chair
City Recorder
Please refer to Meeting Materials (available at www.data.slc.gov by selecting Public Body
Minutes)for supportive content including electronic recordings and comments submitted prior
to or during the meeting.Websites listed within the body of the Minutes may not remain active
indefinitely.
This document along with the digital recording constitutes the official minutes of the Salt Lake
City Redevelopment Agency meeting held Tuesday, February 1-4, 2023 and is not intended to
serve as a full transcript. Please refer to the electronic recording for entire content pursuant to
Utah Code §52-4-203.
7
HOUSING 8 TRANSIT
REINVESTMENT CONES
REDEVELOPMENT AGENCY OF SALT LAKE CITY BOARD OF DIRECTORS
APRIL 11 , 2023
Lu ' 1' " , SLCRDA
HOUSING & TRANSIT REINVESTMENT ZONE ACT SB 217/ 140
STATE HTRZ OBJECTIVES STATE HTRZ REQUIREMENTS
PROMOTE TRANSIT-ORIENTED DEVELOPMENT
(TOD)
. Higher utilization of public transit • Land Use: 51% of developable HTRZ area must
Increasing availability of housing/affordable housing include residential uses
BENEFITS OF TOD • Density: Average of 50 units/acre
• Water conservation through efficient land use
• Improve air quality by reduced fuel consumption & vehicular trips . 10% of housing must be affordable (80% AM I)
• Strategic Areas: Encourage transformative mixed-use
development and investment in public transportation & transit
• Reasonable percentage of units with more than
infrastructure
• Major Transit Corridor Investment: Strategic land use & one bedroom
municipal planning
• Increase access to employment & educational opportunities
HTRZ M FUNDS
ELIGIBLE USES: CAPTURE RATE:
• Income targeted housing costs •Property Tax Increment Participation -
• Public infrastructure 80% Maximum
• Property acquisition costs
• Enhanced development costs •Sales Tax Increment Participation -
• Horizontal construction costs 15% Maximum
• Vertical construction costs
• Structured parking within the HTRZ •HTRZ Administration Fees -
. HTRZ Administration, including the State's 1% of the HTRZ funds + gap analysis expenses
gap analysis
1 1 '
Promote specific housing and transit • Promote community reinvestment more
objectives broadly
Project area boundaries centered around • Project area boundaries determined by
specific transit stops with max. acreage redevelopment agency
Specific development plans • Specific development goals
Subject to Governor's Office of Economic • Subject to individual taxing entity review
Opportunity committee review
• Participation rate set by each taxing entity
Participation rate up to 80%
2023 LEGISLATIVE
UPDATE
During the 2023 Legislative Session, Senate Bill 84 was adopted that amends the HTRZ Act as
follows:
• Amends provisions related to the objectives and required characteristics of an HTRZ
• Restricts how much land a proponent county may own within a HTRZ
Requires an HTRZ proposal to include certain maps of the proposed area
Requires the Governor's Office of Economic Opportunity ("GOEO") to provide notice to relevant
entities after receiving a HTRZ proposal
Requires the State Tax Commission to provide feedback to a housing and transit reinvestment
zone regarding their ability to administer the tax implications of the proposal
• Amends the membership of the HTRZ committee
POTENTIAL HTRZ LOCIATIO'.
rIr Intermodal Hub
*
650 S. Main.
, ' -
90 S. 200 West .�
- : a par
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• Public Infrastructure , 1 I 90o ILs �' JL JLT
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NEXT STEPS
Oq
• Submit 900 South and 200 West proposal to
the State ' ;;
IIII -
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• Update tax increment policy 1-3
• HTRZ implementation and review of TI RA
req u ests 1 Wi ;
�VOPMENT
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9�T AKE0
MAYOR ERIN MENDENHALL DANNY WALZ
Executive Director -�= Director
,���'"��not a``•`��.
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: March 24, 2023
PREPARED BY: Lauren Parisi, Marcus Lee, and Kate Werrett,RDA Project Managers
RE: Housing and Transit Reinvestment Zone (HTRZ) Creation
REQUESTED ACTION: Information Only—Review and discussion regarding HTRZ process
POLICY ITEM: Project Area Creation
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: In 2021,the State of Utah adopted Senate Bill 217 establishing the Housing
and Transit Reinvestment Zone ("HTRZ") Act("Act"). In 2022, the State amended the bill to include the
revisions set forth in Senate Bill 140. During the 2023 Legislative Session additional amendments to the
Act were adopted in Senate Bill 84. Intended to help address Utah's severe housing crisis, this legislation
allows for municipalities to capture tax increment revenue around certain public transit facilities to facilitate
mixed-use,multifamily,and affordable housing development and,ultimately,a higher utilization of public
transit. This memo reviews HTRZ regulations, 2023 legislative updates, explores potential areas in Salt
Lake City where HTRZs could be implemented, and details the RDA HTRZ next steps.
ANALYSIS:
HTRZ Regulations.
In 2021, Senate Bill 217 adopted the Housing and Transit Reinvestment Zone Act("Act"),establishing the
objectives and requirements to create HTRZs.The Act was updated in 2022 with the passing of Senate Bill
140 to clarify the process,requirements,and objectives of the HTRZs.
An HTRZ is a specific type of project area located adjacent to public transit intended to promote sustainable
mixed-use development, affordable housing, and public transportation.Up to 80%of incremental property
tax generated within the project area can be collected to promote these objectives.
1. General HTRZ Requirements. Project area requirements that apply to every HTRZ project area
include:
• Property Tax Maximum Increment Participation: 80%
• Housing
o Affordable Housing: At least 10% of housing units must be affordable to 80% AMI
households
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
o Must include a mixture of housing units to ensure a reasonable percentage of dwellings
with more than one bedroom
• Land Use: 51%of developable area must be residential
• Density: an average of 50 dwelling units per acre is required.
o There is a caveat that if a Bus Rapid Transit's (`BRT's") tax increment collection is
reduced to 60%, its project area may have a reduced density of 39-49 dwelling units
per acre.
• Tax Increment Collection Cap: Determined by the proposal
• HTRZ Administration Fees: 1% of the HTRZ funds + cost to complete the gap analysis
described in 63N-3-604(2)of the Act.
2. Transit Stop Requirements. A unique difference between HTRZs and other types of projects
areas is that HTRZs must be established within a specified distance of a transit stop. The Act
provides requirements and limitations dependent on the type of transit stop an HTRZ encompasses.
Certain limiting factors are defined by the project area transit stops for commuter rail, light rail,
BRT, or those located within an Opportunity Zone.
Examples of varying allowances dependent on the type of transit stop include:
• Size of Project Area
• Maximum Acreage
• Term and Phase Length
• Number of HTRZ project areas per transit stop type allowed per county
The table below shows the differences between possible project areas within Salt Lake City.
FRONTRUNNER TRAX/S-LINE BRT OPPORTUNITY
ZONE
BOUNDARY DISTANCE FROM STATION
1/4 MILE X X
113 MILE X
1/2 MILE X(regardless of
transit e)
Note:Any parcels bisected by the radius boundary can be included in their entirety
NLxuv um ACREAGE
NONCONTIGUOUS 125 100 100 Dependent on
ACRES I station type
TAX INCREMENT
TERM&PHASE 25 year phases Dependent on
LENGTH within a 45-year 15 year phases within a 30-year period station type
period
NUMBER OF HTRZ PROJECT AREAS ALLOWED PER COUNTY
HTRZs per County(#) I Not defined 1 8 1 3 1
3. HTRZs Comparison with Community Reinvestment Areas ("CRAs') — While similar to
existing tax increment project areas such as CRAB, HTRZs vary in some significant ways as
summarized in the table below. CRAs are subject to Title 17C of the Utah State Code.
Page 2
HTRZ CRA
• Survey Resolution adopted by the
Redevelopment Agency of Salt Lake
• HTRZ proposal is submitted to the Governor's City's("RDA's")Board of Directors
Office of Economic Opportunity ("Board")
Creation • State appointed HTRZ Committee • Project Area Plan&Budget Public
commissions a gap analysis and Hearing
reviews/approves proposal • RDA Board adopts Plan&Budget
• City adopts ordinance approving the Plan
&Budget
Taxing • Required taxing entity participation as agreed • Taxing entities may opt out of participation
Entities to by the HTRZ Committee and formalized • Participation is negotiated and established
with interlocal agreements with interlocal agreements
Tax • Participation Rate:up to 80%of property tax • Participation Rate:Property tax increment
Increment increment as negotiated
• RDA Board reviews and approves CRA
• HTRZ goals/policy decisions creation and implementation throughout
RDA Board • Budgeting of funds the process
Controls • Tax Increment Reimbursement Agreements • Budgeting of funds
(TIRAs)&other development assistance • Tax Increment Reimbursement
programs Agreements(TIRAs)&other development
assistance programs
NOTE:Other tax increment funding sources are available,and applicability varies dependent upon the type of project.Two possible options are
PIDs and TRZs.
4. Use of HTRZ Funds—Per 63N-3-607,HTRZ funds may be used to pay for a portion of the costs
associated with the following:
a. Income targeted housing costs
b. Structured parking within the HTRZ
c. Enhanced development costs
d. Horizontal construction costs
e. Vertical construction costs
f. Property acquisition costs
g. HTRZ Administration,including the State's gap analysis
h. Public infrastructure
5. 2023 Legislative Update—During the 2023 Legislative Session,Senate Bill 84 was adopted which
amends the HTRZ Act as follows:
a. Amends provisions related to the objectives and required characteristics of an HTRZ
b. Restricts how much land a proponent county may own within a HTRZ
c. Requires a HTRZ proposal to include certain maps of the proposed area
d. Requires the Governor's Office of Economic Opportunity("GOEO")to provide notice to
certain relevant entities after receiving a HTRZ proposal
e. Requires the State Tax Commission to provide feedback to a housing and transit
reinvestment zone regarding their ability to administer the tax implications of the proposal
f. Amends the membership of the HTRZ committee.
HTRZ Objectives.
1. State Objectives—As summarized by Zions Public Finance in a 2021 HTRZ White Paper,the Act
represents an "all-hands-on-deck" approach to helping mitigate the housing affordability crisis
along the Wasatch Front, and to better utilize transit infrastructure and investment. It intends to
encourage transit-oriented development (TOD) near UTA FrontRunner stations, and other transit
Page 3
stops, through tax increment financing and integral city and agency planning efforts. The Act
includes seven main objectives as follows:
a. Higher utilization of public transit
b. Increasing availability of housing, including affordable housing
c. Conservation of water resources through efficient land use
d. Improving air quality by reducing fuel consumption and motor vehicle trips
e. Encouraging transformative mixed-use development and investment in transportation and
public transit infrastructure in strategic areas
f. Strategic land use and municipal planning in major transit investment corridors
g. Increasing access to employment and educational opportunities
2. Alignment with City Objectives—While various city plans provide guidance regarding the State's
overarching HTRZ objectives, encouraging transit-oriented and affordable housing development
in strategic areas of the city — especially as a means to conserve water, improve air quality, and
increase access to employment and education — are objectives that city plans and the RDA's
Guiding Framework (see attached) generally support. Multiple guiding principles within the
citywide vision plan, Plan Salt Lake (2015) directly align with the objectives of HTRZ creation,
particularly the promotion of:
a. Growing responsibly while providing people with choices about where they live,how they
live,and how they get around.
b. Access to a wide variety of housing types for all income levels throughout the City,
providing the basic human need for safety and responding to changing demographics.
c. A transportation and mobility network that is safe, accessible, reliable, affordable, and
sustainable,providing real choices and connecting people with places.
d. Air that is healthy and clean.
e. Protecting the natural environment while providing access and opportunities to recreate
and enjoy nature.
f. A balanced economy that produces quality jobs and fosters an environment for commerce,
local business, and industry to thrive.
Current HTRZ Application: 900 South/200 West TRAX Stop
In November 2022,in an effort to provide an equitable opportunity for property owners who are considering
development to be included in the HTRZ, a survey was sent to commercial and multifamily residential
property owners within two potential HTRZ boundaries. The survey area included property owners within
a half mile radius of the 900 S/200W TRAX station and the 650 S Main TRAX station.
Due to the high concentration of recent construction and proposed development projects in the area, RDA
staff will move forward with an HTRZ proposal for the area surrounding the 900 South/200 West TRAX
station.
The area primarily covers the Salt Lake City's Granary District,Central Ninth neighborhood,and a portion
of downtown. The area is comprised of a mix of land uses including office,commercial, single-family and
multi-family residential. While the area is experiencing growth, public support is needed to facilitate
sustainable affordable housing opportunities that are needed throughout the City and especially adjacent to
the Central Business District's employment center. Much denser, transit-oriented development is also
needed to take full advantage of existing light rail that runs through the proposed HTRZ and the associated
public transit community benefits.
Page 4
w
The Granary District is � ,� I '�
transitionin from primarilyV
industrial uses and warehouse INCLUDED
buildings to the City's center of PARCELS
creativity — with makerspaces for °� ;, ,-
artists and tradespeople, culinary HTRZ
and recreational experiences, life BOUNDARY
sciences, and local businesses of all
types and sizes. Due to the
industrial history of this area, the --
neighborhood has developed
:? L
without the infrastructure d
commonly found in the rest of the
city, Many streets do not have the
basic pedestrian enhancements such
as sidewalks, street trees, park
strips, curb and gutter. Public 'Y'"— 5 rr $.
infrastructure investment is greatlyMWAN
needed to support this
neighborhood's growth and the innovation happening within it. Transformative public projects that are
anticipated to be supported through the creation of this HTRZ include affordable housing,the Green Loop,
the Grand Boulevards, infrastructure improvements,and a public transit extension.
If not for funding provided by the proposed HTRZ, growth may happen sporadically, and not contain the
affordability, nor the density to support the revitalization of the area in alignment with city plans. It's
anticipated that tax increment will be used for the following categories:
• Private Development Support(must incorporate public benefits)
• Public Project Support
• HTRZ Administration
RDA staff is finalizing an HTRZ application centered around the TRAX light rail station located at 900
South and 200 West to submit to GOEO for consideration.
City HTRZ Creation and Implementation Policy Considerations.
The selection and prioritization of future HTRZ project area locations are the next steps for moving forward
with any future HTRZ project area creation. City policy considerations, equitable opportunities, and the
data needed to submit a proposal are important factors in selecting where to create an HTRZ and what
parcels to include.
1. HTRZ Considerations — In addition to the Act's alignment with citywide objectives and the
RDA's Guiding Framework, the Board may also wish to consider the following when analyzing
potential areas of the city to establish an HTRZ:
a. How can HTRZ creation be done in the most equitable manner to benefit Salt Lake City
residents?
b. What area(s) of the city are in need of RDA investment to support housing, transit and
public infrastructure(transit-oriented development)in alignment with State,City and RDA
objectives?
c. What area(s) of the city encompass specific sites where public and/or private catalytic
development projects are being planned with quantifiable funding gaps?
d. What area(s)of the city could leverage existing growth and other funding sources to make
the greatest impact when reinvested into the neighborhood?
Page 5
2. Potential HTRZ Locations.Given the legislation's quota of eight(8)HTRZs adjacent to light rail
stations per county and one (1) HTRZ in an Opportunity Zone associated with light rail per city,
the RDA must contemplate which transit stops would make the most of the HTRZ tool if submitted
to the State. In addition to the 200 West and 900 South TRAX stop,potential HTRZ areas include
the following:
a. Intermodal Hub. KTRZ
Salt Lake City's
intermodal transit Rail Stops /
hub,at approximately
600 West and 300 ♦ i2 /r -
South, encompasses oe�ebpare�t — —
the Station Center Opportunity
development making
t
t
this a top priority Green Loop Iq
location for tax
increment -' ^
Grand Boulevards -� �.,, t L
opportunities. •;, ,
'R
Located a block east Lrt—odad Hub e L
of the Rio Grande
Depot, this hub -
includes multiple .`
public transportation 0 2ml
connections, including the FrontRunner, TRAX blue line, and the Greyhound bus. With these
lines all convening at this point, "first and last-mile"improvements are critical.As this area is
adjacent to a FrontRunner station,the potential project area is excluded from the State's quota
of eight light rail HTRZs per County and;therefore,will not be submitted as the Agency's first
HTRZ request to the State,but should be submitted in the near future as a means to support the
Agency's Station Center planning efforts, the Downtown Plan's Green Loop along 500 West,
and the potential light rail extension project. More generally,there is significant potential here
to facilitate improved east-west connectivity.
b. 200 West/1300 South(Ballpark)TRAX Stop.
Investment in the HM
Ballpark neighborhoodMw G; • :"
is one of the current ; -
Rail Stops ---
administration's top
''\ I
priorities.Tax increment
I
could be used in this
Deveb ment 1 �k
area to redevelop city- o oRunit
owned parcels that
would produce revenue
to fund improvements I _
o and maintenance for the
ballpark. Pedestrian- I r f
safety enhancements
and general activation
are much needed as a
mechanism to combat4.
t ..
I °
crime in the area.
60Oft
Page 6
Quantifying the specific funding gap required by the State may be more straightforward in this
area than others.
The maximum tax increment collection for parcels included in HTRZs is 80%. If parcels are
included in both the State Street CRA and a potential Ballpark HTRZ,the maximum combined
collection will be 80% from each taxing entity. Overlapping tax increment project areas and
timeframes will not increase the maximum tax increment collection from taxing entities for the
parcels.
c. Sugar House S-Line. MR ; �4,v
There is potential for an 0 � `
HTRZ along the S-Line in `� ^L� ,
�il now
Sugar House, particularly
centered around the ♦ y :� :�^ � ;
Fairmont and Sugarmont '` +
stations. The establishment
of this project area could
.y w
support the extension of the
TRAX line to the east; - `,� � # ; _�,�
however, other potential
1 .tiw�7 �Di�•..
funding sources could also .r ,
be used to support this l;q ,
extension. A possible option ''
is a Transit Reinvestment - =o -
Zone (TRZ). Additionally, y '4
support has been requested
pp
for the Thackeray—a multi- `°°"
family project planned at 2100 South and 900 East. Tax increment could be used to push
affordable housing requirements beyond the minimum.
Next Steps.
1. Submission of 900 South/200 West HTRZ Application—Section 63N-3-604 of the Act provides
requirements for the application submission to GOEO. These requirements include defining the
project boundary, identifying included parcels, establishing a base year and collection years,
explaining how the State Objectives will be met, the tax increment projections, and other several
other requested items. The HTRZ Committee uses the tax increment projection included in the
proposal to set the HTRZ cap.
RDA staff is finalizing an HTRZ application for development surrounding the 900 South/200 West
(Granary) TRAX Stop. Neighborhood impacting benefits above what the market would normally
create are the focus of the proposal submission.
2. HTRZ Tax Increment Reimbursement Policy—RDA staff is preparing a tax increment policy
specific to HTRZs for the Board's consideration. The existing tax increment reimbursement policy
is subject to the requirements of the Utah Community Reinvestment Agency Act (17(c)), rather
than the Housing Transit Reinvestment Zone Act. The policy will outline threshold requirements
for participation in reimbursement agreements associated with HTRZ project areas.
3. HTRZ Implementation — If the HTRZ Committee approves the 200 West/900 South HTRZ
proposal,taxing entity participation as established by the HTRZ Committee will be formalized and
potential developer incentives will be considered.
Page 7
ATTACHMENTS:
A. Eligible HTRZ Locations Map
B. Transit Station Map
C. Guiding Framework
Page 8
ATTACHMENT A: ELIGIBLE HTRZ LOCATIONS MAP
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Page 11
REDEVELOPMENT AGENCY OF SLC
BICYCLE COLLECTIVE - 901 S GALE STREET
LOAN AMENDMENT
RDA aonRo of DIRECTORS MEEriNc - ncRa it zosa
Pm
BicyclePR - E VERVIEW
APPLICANT
Collective 011LCTIV� I � '�� �
9 LLE E
L
t► i ,
PROJECT DE rAILS
0 Located at approximately 901 S Gale Street slow
RDA-owned land in Granary District
000 square footbuilding
i
will
I
house ' . 11 . of the organization
including retail, programming, and
�' _. mot► �'�!
operations s1 . �
• Line trailadjacent 1
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one IN I ■
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100 50 0 100 Feet
rYti'4 .file
PROJECT OVERVIEW
JL= ft
BACKGROUND
• In 2017, through RFP, RDA selected Bicycle Collective to negotiate the
development of the property.
• In 2018, the RDA Board approved a land write down for the property in
exchange for public benefits.
• In May 2022, RDA Board approved $1 ,750,000 loan to Bicycle Collective.
• In October 2022, RDA Board approved an increased loan amount
totaling $2,250,000 and 6-month lock on base interest rate.
SINCE OCTOBER BOARD MEETING
• Property conveyed to Bicycle Collective
• Construction began January 2023
• While working on closing on RDA loan, opportunity for the New Markets
Tax Credit became available
REQUEST (AMENDMENT TO LOAN TERMS)
• Disburse loan funds at closing
• Temporarily extend lock in base interest rate .
TIMELINE ¢
• Bicycle Collective must close on New Markets Tax Credit by May 2023
0 Construction anticipated to be complete Q3 2023
• With New Markets Tax Credit, up to $1 ,400,000
INTEREST RATE
RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
• Public Amenities -0.5%
• Transit Alternatives -0.5%
• Architecture and Urban Design -0.5%
• Sustainabilit -0.5%
Final Interest Rate 3.66%
*The applicant is proposing to extend the lock in this base interest rate
TERM/AMORTIZATION ` p
• 5 years120 years
DISBURSEMENT
• With New Markets Tax Credit, loan proceeds shall be disbursed at closing
COLLATERAL --
• First-position lien
CONSIDERATIO -m I
0 The addition of New Markets Tax Credit will provide -$1 ,000,000 in equity
and will reduce amount needed through RDA loan (-$1 ,400,000)
Bicycle Collective will carry less debt
. * RDA will have a lien on the property if they are unable to pay back the loan
Finance Committee reviewed the request and had no concerns
OPME
� T
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rAlol
9
� G
LAKt
MAYOR ERIN MENDENHALL DANNY WALZ
Executive Director "�- au =�' Director
on -
off
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: March 29,2023
PREPARED BY: Tracy Tran, Senior Project Manager
RE: Proposed amendment to distribute funds in a lump sum at closing and
temporarily extend the lock in the base interest rate for the RDA loan to Bicycle
Collective
REQUESTED ACTION: Consider a request to disburse loan funds at closing and temporarily extend
the lock in the base interest rate to align with New Markets Tax Credit
requirements for the continued construction of the Bicycle Collective's
nonprofit headquarters located at approximately 901 S Gale Street
POLICY ITEM: Granary Project area development.
BUDGET IMPACTS: Up to $2,250,000 from the revolving loan fund.
EXECUTIVE SUMMARY: The Bicycle Collective("Applicant"), a nonprofit organization,received an
amendment to their loan approval in October 2022 from the RDA Board of Directors("Board")through
the Redevelopment Agency of Salt Lake City("RDA")Loan Program Policy for the construction of the
Applicant's new headquarters located at approximately 901 S Gale Street("Property"), as illustrated in
Attachment A: Site Map. The Project will contain about 15,000 square feet for a multi-use building that
will house the retail,programming,and operations space for the Bicycle Collective("Project").
The loan approved by the RDA would help fill the Project's financing gap as construction costs and
interest rates continue to rise. The Project began construction in January 2023 and the Applicant was able
to use fundraising resources through their capital campaign to start this construction while they waited to
close on the RDA loan. In the early years of planning for the project,the Applicant contemplated the use
of the New Markets Tax Credit("Tax Credits")for the Project,but opportunities for the Tax Credits did
not exist as the Project worked towards finalizing their sources of funds last year.As the Applicant
worked towards closing on the RDA loan, an opportunity arose for the Project to apply for the Tax
Credits early this year. The Project received a commitment for the Tax Credits on February 16, 2023,
which would provide a Tax Credits equity contribution of around$1,000,000 for the Project and would
provide for a reduction in the amount the Applicant would need to borrow through the RDA loan.
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
1
The Tax Credits program is complex scheme with an intricate set of requirements.For the Applicant to
receive both the RDA loan and Tax Credits,the Applicant has requested certain modifications to the RDA
loan terms as detailed in this memo. Since the Tax Credits are based on specific geographic areas and
because the Bicycle Collective has other locations throughout Utah,to use the Tax Credits financing for
this Project,the program requires the Applicant to form a new legal entity specifically for this transaction
for a 7-year compliance period. While the new entity will be legally separate from the Applicant,the new
entity will nevertheless be controlled by the Applicant. The Applicant would lease the land for a nominal
amount to the new entity to receive the Tax Credits benefits and ensure completion of the construction.
The Applicant will make payments to the new entity(which will ultimately go back to the Applicant to
cover debt payments). The RDA's security would be placed on the land and the improvements to be
constructed on the property. At the end of the compliance period and given all obligations have been met,
the Tax Credit structure would unwind and the new entity that was created would be taken out.
The structure for the Tax Credits require that the RDA loan be disbursed at closing as leverage for the
Tax Credits allocation. In addition,the Applicant is asking to extend the lock on the interest rate as it
expires April 11,2023. The Applicant anticipates closing on the Tax Credits and RDA loan no later than
May 4,2023 to meet the conditions for the Tax Credits.
BACKGROUND: In November 2017,the RDA offered the Property through a request for proposals
("RFP")process and selected the Bicycle Collective with which to negotiate for the development of the
Property. In August 2018,the Board approved a land write-down for the property in exchange for
incorporating public benefits within the development. The project will be maintained as the headquarters
of the Bicycle Collective,a community serving non-profit, and include public art,high quality fagade
materials and will be designed to at least a LEED Silver standard or equivalent level.
In May 2022,the RDA Board of Directors("Board") approved a$1,750,000 primary loan to the Bicycle
Collective. Due to construction cost increases and supply-chain issues that delayed the construction of
their development,the Applicant sought an additional$500,000 in primary financing,totaling$2,250,000
and requested to lock in their base interest rate for six months to help them manage costs,which the
Board approved in October 2022.
Since then,the RDA conveyed the Property to the Applicant in late 2022 and the Applicant used their
fundraising capital to start construction on the Property in January 2023. As the Applicant worked to
close on the RDA loan, an opportunity arose for the Tax Credits,which would allow for additional equity
in the Project and a reduction in the amount the Applicant would need to borrow from the RDA.
ANALYSIS&ISSUES: An overview of 1)Property details,2)loan modification request, 3)RDA loan
program policy alignment,4)Granary District project area alignment 5)proposed loan terms, 6)
capability for loan repayment, and 7)Applicant's experience is as follows:
1. Property Details
The .26 acre property is currently owned by the Applicant(the land was transferred from the
RDA to the Applicant in November 2022). The Property is vacant and is zoned D-2 (Downtown
Support)District. However,during the seven-year Tax Credits compliance period,the Property
will be transferred to and owned by a new legal entity that will be majority controlled by the
2
Applicant. Once the compliance period is complete,the Property will be transferred back to the
Applicant.
2. Loan Modification Request
The proposed changes to the loan request are summarized below:
• Under the current Board-approved loan terms,the RDA would have distributed the loan
through construction draws. However,the Tax Credits requires the RDA loan funds to be
disbursed in one lump sum at closing to leverage the funds required for the Tax Credits.
Both the funds raised by the Applicant through their capital campaign and the RDA loan
funds must be held in an investment fund under the newly created entity to leverage the
Tax Credits. To ensure oversight during construction,the RDA will receive reports from
a third-party consultant for each construction draw.
• Under the current Board-approved loan terms,the Applicant received a lock on the base
interest rate for six months, or until April 11, 2023. The Applicant is now requesting an
extension for the lock in the base interest rate to help them manage costs and to ensure
they are able to close by the May 4,2023 deadline.
Though the RDA loan is anticipated to be reduced to about$1.4 million, RDA staff recommends
to maintain the original requested loan amount in case the Applicant is unable to close on the Tax
Credits financing before the expiration date. If for some reason,the Tax Credits portion of this
Project is unable to close,the previously amount approved for the RDA would help ensure the
Project is completed.
3. Policy Alignment:RDA Loan Program
This loan request aligns with RDA Loan Program Policy("Program"),as adopted by the RDA
Board, except for the request to lock in an interest rate prior to closing(which required a waiver
from the Board) and with a clarification that although the loan amount is technically sized
appropriately(using debt service coverage ratio and/or loan to value calculations)as per the
Program,the projected repayment of the loan is based on the ability for the Applicant to
adequately fundraise to cover the loan balance at the end of the term.
The Program states that"the base interest rate shall be fixed at 300 basis points (3%)plus the US
Treasury Yield Curve Rate,as determined by the term of the loan,at loan closing." Since the
request would lock in a rate prior to closing,this change required a waiver from the Board,which
was approved in October 2022. Locking in the interest rate would provide more certainty for the
Applicant to understand their repayment capacity in an environment of continuous rising interest
rates. Resolution R-14-2022 approved the interest rate lock for 6 months which expires on April
11, 2023. The Applicant would like to ensure the interest rate is locked at the same rate when
closing is anticipated to occur on the Tax Credits and RDA loan,which is anticipated to occur by
May 4,2023.
In regards to loan disbursement,the Program states that"As established by administrative
policies and procedures,RDA staff shall ensure that each loan is services in accordance with
procedures used in prudent loan administration." Since the Tax Credits will require disbursement
of the RDA loan at closing,RDA staff will require 3'party construction draw reports to ensure
funds are adequate to complete construction.
3
The reliance on fundraising to cover the loan made this project riskier than others. The Applicant
continues fundraising efforts to receive donations throughout construction. The Tax Credits
equity reduces the amount the Applicant would need to borrow from the RDA(from$2,250,000
to 41,400,000),which reduces the amount of debt service on the Applicant and decreases the
risk from the previous structure. The Applicant has requested an interest rate reduction to
acknowledge four public benefits provided by the Project:
• Public Amenities: The Project is located along 9 Line Corridor that connects the east with
the west side neighborhoods. The Project will also include a public art amenity.
• Transit Alternatives: The mission of the Bicycle Collective is to promote cycling as an
effective and sustainable form of transportation. Additionally,the Project will include
employee showers and lockers.
• Architecture and Urban Design: The Project participated in an RDA design review
process that reviewed the buildings materials,how the project fits in the with surrounding
neighborhood, and how the project will enhance the public realm.
• Sustainability: The Project will be an all-electric building that will include rooftop solar
and the Project has been designed to a LEED-Silver equivalent standard. The Bicycle
Collective was also recently awarded a Blue Sky Grant from Rocky Mountain Power.
4. Policy Alignment: Granary District Redevelopment Project Area Plan
The Project aligns with the RDA's goals for the neighborhood,as adopted through the Granary
District Redevelopment Project Area Plan, as follows:
• Commercial Objectives:
o Provide a broad mixture of small and medium commercial tenants representing a
variety of uses.
o Promote commercial development on a neighborhood scale with an emphasis on
specialty stores and neighborhood services.
• Neighborhood Revitalization:
o Return underutilized land to a productive use through a reduction in the number
of neglected buildings and vacant lots to reduce crime and improve the physical
environment of the neighborhood.
• Housing Objectives:
o Create attractive neighborhood environments that will reinforce the sense of
community.
o Require active, friendly, and public-oriented ground-level uses that contribute to
the pedestrian environment and serve the neighborhood.
• Transportation Objectives:
o Pedestrian and Bicyclist Circulation: Provide access with an emphasis on a
friendly and safe environment for bicycles and pedestrians.
• Urban Design
o Create a pedestrian friendly streetscape that will establish a sense of
neighborhood.
4
5. Summary ofProposed Loan Terms
• Amount: With the Tax Credits,the loan amount will be sized up to $1,400,000. Without
New Markets Tax Credit("Tax Credits"),the loan amount will be sized to the lower of
$2,250,000 or a maximum of a 90%of value as per an as-completed appraisal.
o Interest Rate:
RDA Loan Program Base Rate(U.S. Treasury Yield plus 3%) 5.66%*
Public Benefits Interest Rate Reduction**:
• Public Amenities -0.5%
• Transit Alternatives -0.5%
• Architecture and Urban Design -0.5%
• Sustainability -0.5%
Final Interest Rate*** 3.66%
*Base interest rate shall be locked at this 5.6601o,as opposed to the rate at closing. This rate is
based on the U.S. Treasury Yield Curve Rate, as determined by the term of the loan.
"To be eligible for interest rate reductions, the project will be required to meet the criteria
outlined in section 3.
***The final interest rate will be based on 5.66%base interest rate minus eligible interest rate
reductions.
• Term: 5 years.
• Amortization: 20 years.
• Lien: A first position lien on the property.
6. Loan Repayment
The loan repayment for this Project is based on fundraising. The Project is projected to pay off
the loan through their capital campaign that will seek donations from individuals,organizations,
and foundations. The Applicant has raised a large portion of funds and anticipates additional
donations throughout construction. These donations are expected to cover the debt service for the
loan. The addition of the Tax Credits equity reduces the amount of debt needed for this project,
which reduces the risk of this loan.
7. Developer's Experience
The development team consists of four members from the Applicant's Building Committee with a
range of experience in executive,project, and construction management.
PREVIOUS BOARD ACTION:
• October 2022: The RDA Board approved an increase in the amount of the primary loan to
$2,250,000 to the Bicycle Collective and approved a base interest-rate lock. (R-14-2022)
• May 2022: The RDA Board approved a$1,750,000 primary loan to the Bicycle Collective for
construction of the Project. (R-6-2022)
5
• August 2018: The RDA Board approved a land write-down for the property in exchange for
incorporating public benefits within the development(R-28-2018).
ATTACHMENTS:
A. Site Map
B. Site Photos
C. Project Renderings
D. Term Sheet
E. Resolution from October 2022 (R-14-2022)
F. Resolution
6
ATTACHMENT A: SITE MAP
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11
ATTACHMENT D: TERM SHEET
RDALOAN LOAN TERM SHEET
Bicycle Collective
RDA LOAN PROGRAM
APPLICANT
Bicycle Collective("Applicant"), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
• Amount
o With New Markets Tax Credit: loan amount will be sized up to $1,400,000
o Without New Markets Tax Credit: $2,250,000
• Eligible Uses: Construction costs
• Interest Rate:
RDA Loan Program Base Rate(U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
• Public Amenities** -0.5%
• Transit Alternatives*** -0.5%
• Architecture and Urban Design**** -0.5%
• Sustainability***** -0.5%
Final Interest Rate****** 3.66%
RDA staff will confirm the Project qualifies for the applicable interest rate reductions.Any changes to the
project could result in changes to the interest rate reductions:
*Base interest rate shall be locked at this 5.6601o,as opposed to the rate at closing. This rate is based on the
U.S. Treasury Yield Curve Rate,as determined by the term of the loan, and shall be valid for 3 months.
"To be eligible for this interest rate reduction, the project will include a public art amenity
***To be eligible for this interest rate reduction,the project will be required to provide employee shower,
locker,and bicycle facilities as part of their overall development.
****The project participated and received approval through an RDA Design Review process.
*****The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
******The final interest rate will be based on 5.66%base interest rate minus eligible interest rate
reductions.
• Term: 5 years
• Amortization: 20 years
12
• Payments: Hard repayments with balloon payment due at the end of the teen.
• Security: A first position lien on the property.
• Disbursement:With New Market Tax Credits,Loan proceeds shall be disbursed at closing.
Without New Market Tax Credits,loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing,the Applicant will complete the following:
• RDA approves all terms of the loan.
• Obtain all required City approvals.
• Execute loan documents(e.g. promissory notes, loan agreements, security documents, and
guarantees) as deemed necessary by the RDA and its legal counsel.
• Receive approval from the RDA and its legal counsel of all matters pertaining to title,legality of
the loan,and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property.
• Such other terms as recommended by the RDA's legal counsel and staff.
OTHER CONDITIONS
• The Project shall operate as the intended use over the term.
• The Project shall remain in good financial and legal standing over the term.
13
ATTACHMENT E: RESOLUTION FROM OCTOBER 2022 (R-14-2022)
14
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. 14 of 2022
Amending Loan Terms and Approving an Exception to the Loan Policy
for a Loan to Bicycle Collective
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDED TERM SHEET AND AN EXCEPTION
TO THE LOAN POLICY FOR A LOAN TO THE BICYCLE COLLECTIVE FOR A
COMMERCIAL DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 901
SOUTH GALE STREET
WHEREAS, the Redevelopment Agency of Salt Lake City ("RDA") was created to
transact the business and exercise the powers provided for in the Utah Community Reinvestment
Agency Act.
WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas that it manages in accordance with the RDA Loan Program Policy
("Policy").
WHEREAS, the Policy provides that the base interest rate for loans will be set at the
closing of the loan.
WHEREAS,on May 10,2022, in accordance with the Policy,the RDA Board of Directors
(the"Board") approved resolution R-6-2022 allocating the funding and approving terms of a loan
in the amount of S1,750,000 to Bicycle Collective, a Utah nonprofit entity (the "Developer"), in
connection with the a commercial development to house its headquarters (the "Project") on the
property consisting of approximately 0.26 acres located at approximately 901 South Gale Street.
WHEREAS, the Developer has requested to increase the loan amount to $2,250,000 and
requested an exception to the Policy to set the base interest rate as the rate of 5.66% as reflected
in Exhibit A: Term Sheet.
WHEREAS, on September 21, 2022, the RDA Finance Committee ("Committee")
reviewed Developer's requested changes to the loan terms and interest rate exception.
WHEREAS,based on the Committee's recommendations,the RDA staff recommends the
Board approve the attached amended set of terms(the"Term Sheet")for the loan to the Developer,
as borrower, for the Project. Additionally, the RDA staff recommends approving an exception to
the Policy to set the base interest rate at the rate stated in the Term Sheet and such exception shall
be valid for six months from the date of this resolution.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City that it approves the loan outlined in the Term Sheet
attached hereto, subject to revisions that do not materially affect the rights and obligations of the
RDA hereunder. The Board authorizes the waiver of the Policy to set the base interest rate at the
rate stated on the Term Sheet, which waiver shall be valid for six months from the date of this
15
resolution. The Board authorizes the Executive Director to negotiate and execute the loan
agreement and any other relevant documents consistent with the Term Sheet, and incorporating
such other terms and agreements as recommended by the City Attorney's office.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
1 Ith day of October, 2022.
Ana Val emoros(Oct 15,202214:42 MDT)
Ana Valdemoros, Chair
Approved as to form: Alliso-n7arksTOctl2,202214:29MDT) �#0"9MEtvr
Salt Lake City Attorneys Office '���o '
Allison Parks �,�� ��'arF
Date: Oct 12,2022 u SEAL o$
SgAi N��,,
The Executive Director:
0 does not request reconsideration
�—requests reconsideration at the next regular Agency meeting.
Erin en enhall(Oct 20,202210:42 MDT)
Erin Mendenhall, Executive Director
Attest:
cli�
City Recorder
16
EXHIBIT A: LOAN TERM SHEET
� RDALOAN LOAN TERM SHEET
" Bicycle Collective
RDA LOAN P -\� OGRAM
APPLICANT
Bicycle Collective("Applicant"), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
• Amount: $2,250,000
• Eligible Uses: Construction costs
• Interest Rate:
RDA Loan Program Base Rate(U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
• Public Amenities** -0.5%
• Transit Alternatives*** -0.5%
• Architecture and Urban Design**** -0.5%
• Sustainability***** -0.5%
Final Interest Rate****** 3.66%
RDA.staff will confirm the Project qualifies for the applicable interest rate reductions.Any changes to the
project could result in changes to the interest rate reductions:
*Base interest rate shall be locked at this 5.66%as opposed to the rate at closing. This rate is based on the
U.S. Treasury Yield Curve Rate,as determined by the term of the loan,and shall be valid for 6 months.
**To be eligible for this interest rate reduction,the project will include a public art amenity
***To be eligible for this interest rate reduction,the project will be required to provide employee shower,
locker, and bicycle facilities as part of their overall development.
*** The project participated and received approval through an RDA Design Review process.
*****The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
******The final interest rate will be based on 5.66%base interest minus eligible interest rate reductions.
• Term: 5 years
• Amortization: 20 years
• Payments: Hard repayments with balloon payment due at the end of the term.
• Security: A first position lien on the property.
• Disbursement: Loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing,the Applicant will complete the following:
• RDA approves all terms of the loan.
17
• Obtain all required City approvals.
• Execute loan documents(e.g.promissory notes,loan agreements,security documents,and
guarantees) as deemed necessary by the RDA and its legal counsel.
• Receive approval from the RDA and its legal counsel of all matters pertaining to title,legality of
the loan, and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property.
• Such other terms as recommended by the RDA's legal counsel and staff.
OTHER CONDITIONS
• The Project shall operate as the intended use over the term.
• The Project shall remain in good financial and legal standing over the term.
18
ATTACHMENT F: RESOLUTION
19
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO.
Amending and Restating Loan Terms and Extending a Limited Waiver of the Loan Policy
for a Loan to the Bicycle Collective
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDED AND RESTATED TERM SHEET
AND EXTENDING A LIMITED WAIVER TO THE LOAN POLICY FOR A LOAN TO THE
BICYCLE COLLECTIVE FOR A COMMERCIAL DEVELOPMENT PROJECT LOCATED
AT APPROXIMATELY 901 SOUTH GALE STREET
WHEREAS,the Redevelopment Agency of Salt Lake City(RDA)was created to
transact the business and exercise the powers provided for in the Utah Community Reinvestment
Agency Act.
WHEREAS,the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas that it manages in accordance with the RDA Loan Program Policy
(Policy), which provides that the base interest rate for loans will be set at the closing of the loan.
WHEREAS, on May 10,2022, in accordance with the Policy,the RDA Board of Directors
(Board) approved resolution R-6-2022 allocating the funding and approving terms of a loan in the
amount of $1,750,000 to the Bicycle Collective, a Utah nonprofit entity (the Developer), in
connection with the a commercial development to house its headquarters (the Project) on the
property consisting of approximately 0.26 acres located at approximately 901 South Gale Street in
the RDA's Granary Project Area.
WHEREAS, on October 11, 2022, in accordance with the Policy, the Board approved
resolution R-14-2022 modifying the terms of the originally approved loan to increase the amount
of the loan to$2,250,000 and waive a portion of the Policy to lock in the base interest rate of 5.66%
for six months.
WHEREAS, due to Developer's receipt of financing through New Markets Tax Credits,
the Developer has again requested modifications to the loan terms to modify how the loan is
distributed and extend the limited waiver of the Policy to lock in the base interest rate of 5.66%
for another three months as reflected in Exhibit A: Amended and Restated Term Sheet.
WHEREAS, the RDA Finance Committee (Committee) reviewed Developer's requested
changes to the loan terms and interest rate waiver and had no concerns.
WHEREAS, based on the Committee's input, the RDA staff recommends the Board
approve the attached amended and restated set of terms for the loan to the Developer, as borrower,
for the Project. Additionally,the RDA staff recommends approving a limited waiver of the Policy
20
NOW, THEREFORE,BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City that it approves the loan outlined in the Amended and
Restated Term Sheet attached hereto, subject to revisions that do not materially affect the rights
and obligations of the RDA hereunder. The Board authorizes the waiver of the Policy to set the
base interest rate at the rate stated on the Term Sheet, which waiver shall be valid for three
months from the date of this resolution. The Board authorizes the Executive Director to negotiate
and execute the loan agreement and any other relevant documents consistent with the Amended
and Restated Term Sheet, and incorporating such other terms and agreements as recommended
by the City Attorney's office.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
_day of April, 2023.
Alejandro Puy, Chair
Approved as to form: Sys'
Salt Lake City Attorney's Office
Allison Parks
Date: March 29, 2023
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
21
EXHIBIT A: AMENDED AND RESTATED LOAN TERM SHEET
RDALOAN LOAN TERM SHEET
' Bicycle Collective
RDA LOAN PROGRAM
APPLICANT
Bicycle Collective("Applicant"), a nonprofit entity
ADDRESS
Property located at approximately 901 S Gale Street
PROPOSED LOAN TERMS
• Amount
o With New Markets Tax Credit: loan amount will be sized up to $1,400,000
o Without New Markets Tax Credit: $2,250,000
• Eligible Uses: Construction costs
• Interest Rate:
RDA Loan Program Base Rate(U.S. Treasury Yield plus 3%) 5.66%*
Public Benefit Interest Rate Reduction:
• Public Amenities** -0.5%
• Transit Alternatives*** -0.5%
• Architecture and Urban Design**** -0.5%
• Sustainability***** -0.5%
Final Interest Rate****** 3.66%
RDA staff will confirm the Project qualifies for the applicable interest rate reductions.Any changes to the
project could result in changes to the interest rate reductions:
*Base interest rate shall be locked at this 5.6601o,as opposed to the rate at closing. This rate is based on the
U.S. Treasury Yield Curve Rate,as determined by the term of the loan,and shall be valid for 3 months.
**To be eligible for this interest rate reduction, the project will include a public art amenity
**To be eligible for this interest rate reduction,the project will be required to provide employee shower,
locker,and bicycle facilities as part of their overall development.
**The project participated and received approval through an RDA Design Review process.
*****The project will be an all-electric building that will include rooftop solar and the Project has been
designed to a LEED-Silver equivalent standard.
******The final interest rate will be based on 5.66%base interest rate minus eligible interest rate
reductions.
• Term: 5 years
• Amortization: 20 years
22
• Payments: Hard repayments with balloon payment due at the end of the teen.
• Security: A first position lien on the property.
• Disbursement:With New Market Tax Credits,Loan proceeds shall be disbursed at closing.
Without New Market Tax Credits,loan proceeds shall be disbursed through construction draws.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing,the Applicant will complete the following:
• RDA approves all terms of the loan.
• Obtain all required City approvals.
• Execute loan documents(e.g. promissory notes, loan agreements, security documents, and
guarantees) as deemed necessary by the RDA and its legal counsel.
• Receive approval from the RDA and its legal counsel of all matters pertaining to title,legality of
the loan,and the legality, sufficiency, and the form and substance of all documents that are
deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed necessary by
the RDA for the Property.
• Such other terms as recommended by the RDA's legal counsel and staff.
OTHER CONDITIONS
• The Project shall operate as the intended use over the term.
• The Project shall remain in good financial and legal standing over the term.
23
Item C4
!d
-- MOTION SHEET
r T S
Redevelopment Agency Board of SALT LAKE CITY
t 7,
1 T •••
TO: RDA Board Members
FROM: Allison Rowland
Budget&Policy Analyst
DATE: April u,2023
RE: RESOLUTION:AFFORDABLE HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2023-24
MOTION i—ADOPT ORDINANCE
I move that the Board adopt the resolution adopting Affordable Housing Funding Priorities for Fiscal Year 2023-24•
MOTION 2—NOT ADOPT
I move that the Council not adopt the resolution adopting Affordable Housing Funding Priorities for Fiscal Year 2023-24,and
proceed to the next agenda item.
LIE
bow
ANNUAL
HOUSING
FUNDING
4PRIORITIES
FY 24
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APRIL 11,2023
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HOUSINGi i
POLICYFUNDS ANNUAL HOUSING
FUNDING STRATEGY
PRIMARY Estimated amounts
HOUSING will be brought to
FUND the Board for
This policy (ADLLOCATIONISO budget review next
established guidelines month
SECONDARY for allocating/directing
HOUSING resources for housing
FUND by funding source. ANNUAL
HOUSING For your
Also requires "Annual PRIORITIES consideration
WESTSIDE Housing Funding today
COMMUNITY Strategy" (right) be
INITIATIVE brought in front of
FUND Board every year. HOUSING
ACTIVITIES
HOUSING These will be
DEVELOPMENT adopted as part
FUND of the budget
AMPI approval
......................................... ADOPTED 012021 ................................................... YEARLY BOD APPROVAL...........................................♦
HOUSING FUND ALLOCATIONS
ANNUAL HOUSING
FUNDING STRATEGY
HOUSING
FUND I
E
ALLOCATIONS (HOUSING
ARY SECONDARY C
SING
HOUSING PMENT TY
ND FUND ND E
$TBD $TBD $TBD $TBD
RECOMMENDED ANNUAL HOUSING PRIORITIES
ANNUAL HOUSING For the Board's consideration today
FUNDING STRATEGY
WEALTH AFFORDABLE C
EPLY MISSING ,
BUILDING FAMILY RDABLE MIDDLE
ANNUAL OPPORTUNITY HOUSING USING HOUSING
HOUSING
PRIORITIES
RECOMMENDED HOUSING ACTIVITIES
ANNUAL HOUSING Tools/programs by which to achieve Priorities, which will be approved as part of the budget.
FUNDING STRATEGY
HOUSING
EQUITY DEVELOPMENT LAND
BUILDING LOAN PARTNERSHIP ACQUISITION/
MODEL DISPOSITION
PROGRAM
HOUSING
ACTIVITIES
HOUSING ACTIVITIES
ANNUAL HOUSING
FUNDING STRATEGY
Housing Development Loan Program
U iii�
Competitive NO FA
• Resolution proposes requiring affordable
family housing and/or deeply affordable
housing as threshold
S
FY24 ANNUAL HOUSING FUNDING STRATEGY
..........................................................................................................................................................................
ANNUAL HOUSING HOUSING HOUSING FUND
PRIORITIES ACTIVITIES ALLOCATIONS
AFFORDABLE LAND HOUSING
1 FAMILY ACQUISITION/ DEVELOPMENT
HOUSING DISPOSITION FUND
WEALTH
BUILDING MISSING EQUITY ADU
OPPORTUNITY MIDDLE BUILDING PARTNERSHIP PRIMARY SECONDARY
HOUSING MODEL
DEEPLY HOUSING WESTSIDE
AFFORDABLE DEV. LOAN COMMUNITY
HOUSING PROGRAM INITIATIVE
FUND
NEXT STEPS
ANNUAL HOUSING
FUNDING STRATEGY
• Today - Board may wish to consider the adoption of the
U
resolution to approve the Funding Priorities for FY 24.
• May - Proposed funding allocations to housing funds and
activities will be brought to the Board with the budget
ANNUAL
HOUSING presentation.
PRIORITIES
• June - Housing activities are approved as a part of the RDA
HOUSING budget approval
ACTIVITIES
\1\11 It
1R
MAYOR ERIN MENDENHALL
Executive Director '""' _ DANNY WALZ
�� '" �� - Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
DATE: March 24, 2023
PREPARED BY: Lauren Parisi & Tracy Tran, RDA Senior Project Managers
RE: FY 24 Annual Housing Funding Priorities
REQUESTED ACTION: Consider adoption of a resolution to establish the FY 24 Housing Funding
Priorities
POLICY ITEM: Affordable Housing
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City's ("RDA")Housing
Development Loan Program("HDLP")policy requires that the RDA Board of Directors ("Board") approve
housing funding priorities ("Funding Priorities")on an annual basis. These Funding Priorities guide the
upcoming fiscal year's housing activities including the requirements of the HDLP's competitive affordable
housing notice of funding availability(NOFA).
At their March 2023 meeting,the Board reviewed and discussed potential Funding Priorities for the
upcoming fiscal year 2023-2024 ("FY 24"). More detail regarding the information presented at this meeting
can be found within the March RDA Board Memo. The Board seemed to come to a consensus regarding
the approval of four priorities including:
• Wealth Building Opportunity
• Affordable Family Housing
• Deeply Affordable Housing
• Missing Middle Housing
This memo outlines the intent of each of the four Funding Priorities. The resolution under Attachment A
has been included for the Board's consideration to approve the FY 24 Funding Priorities.
ANALYSIS:
FY 24 Annual Housing Funding Priorities. The intent of each priority that will be used to guide housing
decisions throughout the upcoming fiscal year are described below.
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
1. Wealth Building Opportunity—Facilitate the ability for low-moderate income households to build
wealth through different pathways such as homeownership, supplemental income opportunities,
stipends for renters, cooperative housing, and other wealth building models.
2. Affordable Family Housing—Provide opportunities for families to enjoy the many benefits of
urban living by encouraging the development of housing that is more conducive to larger household
sizes with at least three(3) or more bedrooms. Affordable family housing is generally defined as
units with three or more bedrooms affordable to those earning 80% of the area median income
(AMI) or below.
3. Deeply Affordable Housing—Expand the availability of units for extremely low-income
households, thereby providing housing options for individuals or families that are homeless or at
risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those
earning 40%of the area median income(AMI) or below.
4. Missing Middle Housing—Promote an array of housing forms such as—but not limited to smaller
apartment buildings,townhomes and accessory dwelling units to diversify the City's housing stock
and provide more affordable living options for residents.
Workforce Housing.As a part of the housing priorities discussion in March,the Board indicated that
workforce housing—designated for essential workers such as police officers, teachers, nurses, etc. —is a
housing type important to promote across the city. While it's not proposed as one of the four main housing
priorities for the upcoming fiscal year, staff will aim to reserve units for essential workers as part of land
disposition projects. This may also be a priority for the Board to consider next fiscal year.
Housing Development Loan Program—Competitive NOFA. To utilize the competitive HDLP notice of
funding availability(NOFA)to promote the Funding Priorities, RDA staff recommends to make family
housing and/or deeply affordable housing into thresholds requirements in order for a project to be eligible
for funding. To meet the family housing threshold, at least 10%of a project's units must have three or more
bedrooms. To meet the deeply affordable housing threshold, at least 10%of a project's units must be
affordable to those earning 40%AMI or below. Similar to previous year, the priorities for the upcoming
fiscal year will be weighted more in scoring than other benchmarks. Projects will also be eligible for
interest rate reductions for meeting other RDA benchmarks as outlined in the HDLP guidelines.
FY 24 Housing Fund Projections. RDA staff will share the housing fund projections for the upcoming
fiscal year when it becomes available.
NEXT STEPS:
• Pursuant to the Housing Development Loan Program Policy,the Board may wish to consider the
adoption of the attached resolution to approve the Funding Priorities for FY 24.
• RDA staff will present proposed funding allocations to housing activities as a part of the FY 24
budget discussion.
2
ATTACHMENTS:
Attachment A—FY 24 Affordable Housing Funding Priorities Resolution
3
ATTACHMENT A-FY 24 AFFORDABLE HOUSING FUNDING PRIORITIES
RESOLUTION
4
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO.
FY 2023-24 Affordable Housing Funding Priorities
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR
2023-24
WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City
(Board) adopted the Housing Funds Allocation Policy and the Housing Development Loan
Program Policy, which provide that the Redevelopment Agency of Salt Lake City(RDA)will
present to the Board an overall funding strategy and specific funding priorities (Funding
Priorities) for how housing funds should be allocated to the housing funds and housing loan
program for the upcoming fiscal year.
WHEREAS,the Housing Development Loan Program Policy provides that the specific
Funding Priorities shall be subject to approval by the Board.
WHEREAS, the Board desires to adopt the Funding Priorities identified in this
resolution to direct resources for the development of affordable housing for fiscal year 2023-24.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the
Redevelopment Agency of Salt Lake City hereby adopt following Funding Priorities for fiscal year
2023-24:
Funding Priority Objective
Deeply Affordable Housing Expand the availability of units for extremely
Threshold requirement for Housing low-income households, thereby providing
Development Loan Program applications housing options for individuals or families that
are homeless or at risk of homelessness.
Affordable Family Housing Provide opportunities for families to enjoy the
Threshold requirement for Housing many benefits of urban living by encouraging
Development Loan Program applications the development of housing that is more
conducive to larger household sizes.
Wealth Building Opportunity Facilitate the ability for low-moderate income
households to build wealth through different
pathways such as homeownership,
supplemental income opportunities, stipends
for renters, cooperative housing, and other
wealth building models.
Missing Middle Housing Promote an array of housing forms to diversify
the City's housing stock and provide more
affordable living options for residents.
5
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of , 2023.
Alejandro Puy, Chair
Approved as to form:
Salt Lake City Attorney's Office
Allison Parks
Date: March 23, 2023
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
6
COUNCIL STAFF REPORT
.`� �A\�� ��// �•, CITY COUNCIL of SALT LAKE CITY
TO: RDA Board Members
FROM: Ben Luedtke
Budget and Policy Analyst Project Timeline:
Set Date&ist Briefing:April u,2023
DATE: April u,2023 Public Hearing&2nd Briefing:May 9,2023
Potential Action: May 9,or June 13,2023
RE: Redevelopment Agency(RDA)Budget
Amendment Number Three Fiscal Year(FY) 2023
RDA Budget Amendment Number Two includes requested changes to 15 project areas and funds.Total
expenditures are$10,312,004 for 46 items in this amendment.Total revenues across all funding sources are$6.1
million more than budgeted.Two significant revenue decreases below budget are a$1.5 million drop in the Central
Business District and a$1.3 million drop in the Housing Trust Fund.Most of the proposed items are true-up
adjustments based on preliminary property tax increment numbers from Salt Lake County.The actual tax
increment received could be adjusted up or down.An updated transmittal will be sent later this month or next when
the final numbers are available.Note that in this staff report the amounts in red font are negative numbers.
The annual budget uses a conservative forecasting of property tax increment which results in an end of fiscal year
"true-up"budget amendment to recognize and adjust budgets based on actual tax increment revenues.The
"Amended Budget Totals by Fund"section on pages 13-19 of the transmittal provides line-item detail of revenue
and expense changes by project area and fund.The additional and background information section near the end of
this staff report includes project area expiration dates,allowable uses of RDA funds per state law,and an update on
the Board's FY2023 legislative intent to review all RDA accounts.The Board may wish to reference Attachment 1—
The RDA's Guiding Framework for evaluating and prioritizing budget requests.
LEGALLY REQUIRED ITEMS
Many items in the budget amendment are legal requirements for the RDA which mostly fall into three categories
listed below.Detailed breakouts of the individual obligations within these line items can be requested from the
Administration if Board Members would like additional information.
— Taxing entity—payments which are pass throughs from the RDA to the School District or Salt Lake County as
required by interlocal agreements.
— Property tax increment reimbursements to property owners that have agreements with the RDA.If certain
conditions are met,then a portion of their property taxes is reimbursed.This is called post-performance
because reimbursement is only provided after the property owner has met the conditions and the County
Assessor confirms higher property values.
— State law affordable housing set aside which is required only for some project areas which mostly goes to
the primary housing fund(can be used citywide for units with rent affordable to 8o%AMI and below).
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET,ROOM 304 COUNCIL.SLCGOV.COM
P.O.BOX 145476,SALT LAKE CITY,UTAH 84114-5476 TEL 801-535-7600 FAX 801-535-7651
DISCRETIONARY ITEMS
The items below are not legal requirements of the RDA.If desired,the Board could decide to take additional time to
consider some or all the items below or could decline to fund any of the items.In recent years the Board's
preference has been to limit duplication of funding requests for items in the last budget amendment of the year and
the proposed annual budget.This approach can provide the Board with greater flexibility to consider all competing
needs and funding sources together.The Administration is working to implement this approach while transitioning
to a new financial system. Holding accounts are typically for capital projects so the funding does not lapse to cash
reserves at the end of the fiscal year,and the Board would need to approve specific uses at a future meeting.
Transitioning between Financial Systems
The City is transitioning to a new financial system as part of the WorkDay Enterprise Resource Planning software
platform.The transition is expected to go live on July 1,2023 to coincide with the start of FY2024.The RDA and
Finance Department are working to reconcile and convert accounts between the old and new financial systems.As
part this process,there are five transition holding accounts proposed in this budget amendment.The transition
holding accounts reflect remaining property tax increment revenues above budget after meeting legally required
expenses and anticipated obligations this fiscal year.This approach will be reflected in an updated transmittal.The
Administration plans to return to the Board for a comprehensive review of all RDA accounts once the new financial
system is implemented(per the Board's FY2023 legislative intent in the Additional Info section for reference).The
new system is expected to include improved tracking such as whether an account is for housing,commercial,or
infrastructure so these categories can be easily shown across all project areas and funds.
Administration Budget
(All project areas contribute to the Administration budget. There is no policy guiding how the costs are shared
between the project areas.)
A. $36o,000 increase to anew balance of$66o,000 for the Operating and Maintenance budget.
B. $288,671 increase to anew balance of$507,231 for the Charges and Services budget.
Policy Questions:
1. Does the Board want to provide policy guidance for a)how RDA Administrative transfers are calculated
from each project area,and b)how the RDA Administration budget should adjust when revenue is
significantly different than expected?For example,administrative expenses may fluctuate unrelated to
the activity and revenue from project areas.Because RDA revenues are estimated and can come in
either higher or lower than projected,the Board may wish to discuss how those overages or shortfalls
should be applied.A little more than half of the RDA Administration budget is for ongoing personnel
costs(salary and benefits).The rest is used for property maintenance,operations,equipment,
administrative fees,and charges and services.The CBD provides more than half of the revenue for the
RDA Administration budget as shown in the table below.
Overview of Revenues from Pro'ect Areas to the RDA Administration Bud et
Project Area Transfer to Budget Budget Amendment Variance Project Area
RDA Administration #3 Forecast Transfer%of Total
9-Line $ 118,218 $ 31o,673 $ 192,455 7%
Central Business District $ 2,757,315 $ 2,602,931 $(154,384) 56%
Depot District $ 599,938 $ 835,540 $ 235,602 18%
Granary District $ 95,032 $ 163,099 $ 68,o67 4%
North Temple $ 44,405 $ 99,583 $ 55,178 2%
North Temple Viaduct $ 18,077 $ 42,884 $ 24,807 1%
Northwest Quadrant $ 90,310 $ 145,026 $ 54,716 3%
Stadler Rail $ 7,242 $ 7,426 $ 184 0%
State Street $ 263,118 $ 435,164 $ 172,046 9%
West Temple Gateway* $ 5,000 $ 5,000 $ - o%
TOTALS1 $ 3,998,655 1 $ 4,647,326 1 $ 648,671 1 100%
*This project area no longer collects property tax increment.Interest income is generated from unspent
Page 1 2
2. The Board may wish to ask for additional information about the$200,000 for a remodel of the RDA
and Economic Development Department office space such as the project scope and cost breakout.
Central Business District(CBD)
C. (-$1,543,844)decrease in revenue from the adopted budget.As a result,there are three proposed
corresponding reductions in expense budgets.A(-$929,3o6)decrease to a new balance of$12,357,345 for
legally required taxing entity payments is based on the terms of those interlocal agreements.The other two
proposed reductions are up to the Board's determination:
— (-$154,384)decrease to anew balance of$2,6o2,931 for the CBD transfer to RDA Administration expenses
which is available,and
— (-$463,153)decrease to anew balance of$270,9o8 for the property acquisition holding account.
Policy Questions:
1. What is causing the$1.;million or 6%decrease in CBD property tax increment revenue?The
Administration mentions in the transmittal that the reduced property value assessments are potentially
driven by hotels and shopping centers.There could also be an increase of property tax appeals.
2. What is the funding target to purchase property downtown?The Board may wish to discuss with the
Administration how much funding would be needed to acquire property in the CBD and what policy
goals could be advanced by such purchases.
Block 70
(Eccles Theater and Regent Street between loo and 200 South, and Main and State Streets)
D. $2,594 of additional funding for the Regent Street Parking Structure Capital Reserve holding account.If
approved,then the new total budget would be$366,275.
Policy Question:
1. Regent Street Parking Structure Responsibility—The Board may wish to ask the Administration to
what extent is the RDA and other entities responsible for maintenance of the parking structure.Note
that the agreement for maintenance is related to the guarantee of a certain number of parking spaces to
serve the Eccles Theater.
Depot District
(2024 is the last year for property tax increment collection.Note a tax increment reimbursement agreement
expired last year which resulted in a$1 million reduction in that legal obligation. This frees up funding that can
be used on discretionary items.)
E. $235,602 increase to a new balance of$835,54o for the Depot District transfer to RDA Administration.See
policy question#1 in the Administration Budget section above about the Board providing policy guidance for
how the RDA Administration budget should be adjusted when revenue is significantly different than expected.
F. $1,970,671 for a new transition holding account.See the transitioning between financial systems at the start of
the discretionary items section above for more.As the funds are going into a holding account,the Board would
need to approve specific uses of the funds at a future meeting.
G. $25,000 increase to a new balance of$150,000 for miscellaneous propeM expenses which includes costs such
as utilities,maintenance,and minor repairs.
H. $25,268 increase to a new balance of$550,000 to fully repay the Revolving Loan Fund for a Central Station
property acquisition transfer last fiscal year.
Page 13
Granary District
(2025 is the last year for property tax increment collection)
I. $68,067 increase to a new balance of$163,099 for the Granary District transfer to RDA Administration.See
policy question#1 in the Administration Budget section above about the Board providing policy guidance for
how the RDA Administration budget should be adjusted when revenue is significantly different than expected.
J. $294,955 increase to a new transition holding account.See the transitioning between financial systems at the
start of the discretionary items section above for more.As the funds are going into a holding account,the Board
would need to approve specific uses of the funds at a future meeting.Note that the$421,805 existing property
acquisition holding account remains available.
North Temple
K. $55,178 increase to a new balance of$99,583 for the North Temple transfer to RDA Administration.See policy
question#1 in the Administration Budget section above about the Board providing policy guidance for how the
RDA Administration budget should be adjusted when revenue is significantly different than expected.
L. $347,616 for a new transition holding account.See the transitioning between financial systems at the start of
the discretionary items section above for more.As the funds are going into a holding account,the Board would
need to approve specific uses of the funds at a future meeting.
North Temple Viaduct
M. $24,807 increase to a new balance of$42,884 for the North Temple Viaduct transfer to RDA Administration.
See policy question#1 in the Administration Budget section above about the Board providing policy guidance
for how the RDA Administration budget should be adjusted when revenue is significantly different than
expected.
N. $1,629,018 increase to a new balance of$2,817,550 for the annual bond debt service payment to the General
Fund.This is an ongoing annual payment to reimburse the General Fund for fronting annual bond payments
when the property tax increment revenues were insufficient to cover the debt service.Note that the General
Fund carries the responsibility to cover the debt service each year,but when the debt was issued,the
understanding was that the RDA would eventually fully cover those payments.
Policy Question:
1. The Board may wish to ask the Administration when is the General Fund projected to be fully
reimbursed for all bond payments?The Board may also wish to have a discussion with the
Administration about policy goals for these funds.For example,in the FY2022 annual budget the
Council transferred$1 million from that year's reimbursement to the General Fund to the North
Temple Strategic Intervention Fund,as it was more than what was needed to cover the General Fund's
bond obligation.
2. The Board may also wish to ask has the Administration evaluated whether the City could repay the
bond early?
Northwest Quadrant(NWQ)
O. $54,716 increase to a new balance of$145,026 for the Northwest Quadrant transfer to RDA Administration.See
policy question#1 in the Administration Budget section above about the Board providing policy guidance for
how the RDA Administration budget should be adjusted when revenue is significantly different than expected.
P. $54,716 increase to a new balance of$150,026 for the shared costs holding account.This account is intended to
be used for projects that benefit the entire project area or multiple properties.No specific projects are currently
identified for use.Note this is the second year the RDA budgeted revenues from the Northwest Quadrant.
Policy Question:
1. The Board may wish to discuss with the Administration what kinds of projects would be eligible for
these funds.There may be opportunities to plan for these kinds of projects in the upcoming Capital
Asset Plan(five-year CIP plan)to leverage multiple funding sources with the Northwest Quadrant
Page 14
shared costs holding account.For example,public infrastructure improvements in the area might be
eligible to use transportation impact fees in combination with the NWQ shared costs funds.
State Street
Q. $172,046 increase to a new balance of$435,164 for the State Street transfer to RDA Administration.See policy
question#1 in the Administration Budget section above about the Board providing policy guidance for how the
RDA Administration budget should be adjusted when revenue is significantly different than expected.
R. $1,373,365 for a new transition holding account.See the transitioning between financial systems at the start of
the discretionary items section above for more.As the funds are going into a holding account,the Board would
need to approve specific uses of the funds at a future meeting.Note that the$2,107,974 existing property
acquisition holding account remains available.
9-Line
S. $192,455 increase to a new balance of$31o,673 for the 9-Line transfer to RDA Administration.See policy
question#1 in the Administration Budget section above about the Board providing policy guidance for how the
RDA Administration budget should be adjusted when revenue is significantly different than expected.
T. $770,952 for a new transition holding account.See the transitioning between financial systems at the start of
the discretionary items section above for more.As the funds are going into a holding account,the Board would
need to approve specific uses of the funds at a future meeting.Note that the$959,774 existing property
acquisition holding account remains available.
Primary Housing
(state law allows the RDA to fund housing at 8o%or below AMI citywide—not just in project areas)
U. (-$635,647)decrease to anew balance of$964,223 for the property acquisition holding account.
Policy Question:
1. How does the Primary Housing property acquisition holding account relate to the Housing
Development Fund Affordable Housing property acquisition holding account?The Board adopted a
legislative intent with the FY2023 annual budget(see Additional Info Section)to review all RDA
accounts to see whether they still align with the Board's priorities.The Board could identify potential
streamlining of multiple holding accounts for the same purpose.
V. $1,124,053 for additional funding to the Housing Development Loan Program.
W. $375,947 for a new School District Family&Workforce Housing account.The interlocal agreement between the
RDA and the School District limits a portion of that taxing entity's property tax increment for family-sized
(three bedrooms or more)and workforce housing. Placing the funds into a separate account would allow for
better tracking and reporting.
Housing Development Fund
X. (-$1,382,000)decrease to anew balance of$2,848,000 for the Housing Development Loan Program.
Policy Question:
1. Details of Housing Trust Fund Portfolio—The Board may wish to ask the Administration for details on
the funds'portfolio such as how many loans exist,what is the total future repayments,is an aging
report being developed so the agency knows how much revenue to budget each year from repayments,
etc.
Page 15
ADDITIONAL&BACKGROUND INFORMATION
FY2023 Legislative Intent Update
The legislative intent below was adopted by the Board along with the FY2023 annual budget.The review of all RDA
accounts is pending implementation of the new Work Day Enterprise Resource Planning financial system which is
expected to go live on July 1, 2023(first day of FY2024).There are several new holding accounts and additional
funding to existing holding accounts proposed in this budget amendment.Those accounts can be included in the
comprehensive review of all RDA financial accounts next fiscal year.
New Program Funding Allocations.It is the intent of the RDA Board in the current budget year,and in
future budget years,to consolidate the budgeting and policy development steps for new programs so that
funding is allocated after the Board has had the opportunity to get a full understanding of the proposal and
to exercise their policy making discretion.It is further the intent of the Council to review by December 2022
all RDA accounts that contain balances to determine whether the appropriations still align with the goals of
the Board.
Gallivan Utah Center Owners Association(GUCOA)
GUCOA is the managing agency for the entire block through Covenants,Conditions&Restrictions(CCRs)and is
responsible for maintenance and programming.The RDA is the majority owner(over 51%).The CCRs originally
contemplated a contractor to provide maintenance and programming which has been provided by the Public
Services Department after an RFP process.An assessment is levied on the first floor of adjacent commercial
properties to contribute funding to administration,programming,and events.The programming contract has
requirements for a set number of events that must be open to the public annually.Gallivan also provides many free
events to activate the space consistent with the Council/Board's public policy goals for downtown.
Project Area Expiration Dates
Project areas have a designated expiration(aka sunset)date.State law allows RDAs to continue spending tax
increment already collected in expired project areas such as Sugar House.Sometimes project areas can be
extended/renewed for a longer length which happened to the Central Business District.The table below
summarizes project area timeframes from creation to expiration.
Project Area Initial Collection Last Collection
Year Year
IWentral Business District*t 1983 2042
estt Capitol Hill** 1998 2022
Depot Districtt 1999 2024
Granary Districtt 2000 2025
North Templet 2012 2039
North Temple Viaduct CDA 2012 2037
Northwest Quadrant 2019 2038
Block 70 CDA 2o16 2040
Stadler Rail 2019 2038
Block 67 2021 2040
9-Line 2021 2040
State Street 2021 2040
NOTE: Only project areas that generate tax increment are listed in the table
*The RDA Board extended the CBD from the original expiration year of 2007
**The RDA Board extended the original expiration year to focus on 300 West streetscape
improvements
tln October 2021 the Board approved two-year extensions for these project areas.State law was
changed to allow extensions for projects areas negatively impacted by the COVID-19 pandemic
Page 16
Statutory Definition of Project Area Development(Utah Code 17C-1-102(48))
The section of Utah Code below is a key list of allowable uses of RDA funds.The Utah Legislature updated this
statute in the 2016 General Session.
(47) "Project area development"means activity within a project area that,as determined by the board,encourages,
promotes,or provides development or redevelopment for the purpose of implementing a project area plan,
including:
(a) promoting,creating,or retaining public or private jobs within the state or a community;
(b) providing office,manufacturing,warehousing,distribution,parking,or other facilities or improvements;
(c) planning,designing,demolishing,clearing,constructing,rehabilitating,or remediating environmental
issues;
(d) providing residential,commercial,industrial,public,or other structures or spaces,including recreational
and other facilities incidental or appurtenant to the structures or spaces;
(e) altering,improving,modernizing,demolishing,reconstructing,or rehabilitating existing structures;
(f) providing open space,including streets or other public grounds or space around buildings;
(g) providing public or private buildings,infrastructure,structures,or improvements;
(h) relocating a business;
(i) improving public or private recreation areas or other public grounds;
0) eliminating blight or the causes of blight;
(k) redevelopment as defined under the law in effect before May 1,20o6; or
(1) any activity described in Subsections 8 a through Uk outside of a project area that the board
determines to be a benefit to the project area.
ATTACHMENTS
1. RDA Guiding Framework
ACRONYMS
CBD—Central Business District
CCR-Covenants,Conditions&Restrictions
CDA—Community Development Area
FY—Fiscal Year
GUCOA—Gallivan Utah Center Owners Association
NWQ—Northwest Quadrant
PIF—Program Income Fund
RDA—Redevelopment Agency
RFP—Request for Proposals
TBD—To Be Determined
Page 7
Exhibit A to the Resolution
Guiding Framework 44� RDA
This Guiding Framework is a strategic operational document outlining the methodology for evaluating and prioritizing projects requesting RDA financial assistance. The RDA's
Mission and Values form the foundation of the Guiding Framework, declaring the RDA's purpose and the intended economic, social, and physical outcomes expected of RDA
projects and partnerships.
MISSION: The Redevelopment Agency of Salt Lake City strengthens neighborhoods and business districts to improve livability, create economic opportunity and
foster authentic, equitable communities, serving as a catalyst for strategic development projects that enhance the City's housing opportunities,
commercial vitality, public spaces, and environmental sustainability.
VALUES: Economic Opportunity- Equity&Inclusion- Neighborhood Vibrancy-
We invest in the long-term prosperity and growth We prioritize people-focused projects and We cultivate distinct and livable places that are
of our local economy. programs that encourage everyone to contextually sensitive, durable, connected, and
participate in and benefit from development sustainable.
decisions that shape their communities.
PROJECT EVALUATION PROCESS: The RDA prioritizes projects that demonstrate a commitment to the Mission and Values, evaluating projects via three steps,which answer the
following questions: 1.) Does the project meet the minimum THRESHOLDS required for RDA participation?2.)To what degree does the project benefit the public by achieving
defined LIVABILITY BENCHMARKS, thereby warranting RDA assistance? 3.) Does the project meet the CRITERIA outlined in existing RDA programs and policies, such as the
RDA Loan Program or Tax Increment Reimbursement Program?
Step 1: Alignment with adopted City policies&plans
THRESHOLDS Alignment with RDA Project Area Work Plans
Financial viability with a demonstrated and reasonable need for public assistance
Economic Opportunity Equity&Inclusion Neighborhood Vibrancy
Leveraging Transit Opportunities Public Space
Step 2: Timeliness Mixed-Income Neighborhoods Public Art
LIVABILITY Return of Investment Neighborhood Safety Architecture&Urban Design
BENCHMARKS Permanent Job Creation & Retention Community Engagement&Support Sustainability
Affordable Commercial Spaces Housing for Everyone Walkability
Ownership Displacement Mitigation Building Preservation, rehabilitation, or
Affordable Housing Preservation adaptive reuse
Missing Middle& Unique Building Types
Step 3:
PROGRAM Evaluation of project according to respective RDA policies, programs and procedures
CRITERIA
*Spanning a 1-3 year time frame,Project Area Work Plans identify redevelopment objectives and strategic redevelopment projects for each project area,along with a corresponding schedule&budget for each project. The Project Area Work Plans
will be based on relevant City policies and plans and the Project Area Plans that were adopted when the project area was created and will provide direction for the annual RDA budget process.
11.24.21
IL
BRAND OPENING
Redevelopment Agency FY22-23
Preliminary Budget Amendment #3
W
Project Area Revenue Changes
Tax Increment Revenue Change
40,862,198 47,043,177 6,180,979
Tax Increment Revenue Changes by Project Area
E
26 029,306
27,573,150
B70 1,926,029
19922,323
DD 5,570,264
3,999,587
1,087,324
GD ■ 633,546
il 995,825
NT . 444,053
NTV2,858,934
09
NWQ 261
:9037,100
SR 138,527
1 72,420
SS 4,351,640
ME M2,631,183
9L 2,635,067
MM 1,477,727
Project Area Funds Expense Changes
Total Project Area Fund Changes
Obligations
6,180,979 1,803,588 0 4,377,391
TotalObligations), TotalDiscretionary
Line Description Budget Forecast Variance Line Description Budget Forecast Variance
Transfer to Primary Housing Fund 1,523,880 2,012,286 488,406 Capital Reserves-Property
Transfer to Primary Housing-School Acquisition 3,064,721 0 (3,064,721)
District Family&Workforce Housing 0 375,947 375,947 Capital Reserves-Housing Property
Transfer to Administration 31993,655 4,642,326 648,671 Acquisition 734,061 270,908 (463,153)
TI Reimbursements 4,090,606 3,532,931 (557,675) Capital Reserves-Shared Costs 95,310 150,026 54,716
Taxing Entity Payments 14,085,314 13,229,940 (855,374) Capital Reserves-Strategic
Miscellaneous Property Expense 1,430,000 1,455,000 25,000 Intervention 421,805 3,834,142 3,412,337
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018 Revolving Loan Fund Repayment 524,732 550,000 25,268
Capital Reserves—Transition
County Administration Fee 26,996 35,374 8,378 Holding Account 0 4,412,943 4,412,943
Capital Reserves-School Construction Total 4,840,629 9,218,020 4,377,391
Fund(10%)* 31,084 69,708 38,624
Capital Reserves-Regent Street Parking
Structure 100,000 102,594 2,594
Total 26,470,067 28,273,655 1,803,588
Project Area Funds Expense Changes
Discretionary p-
Fund Line Description Budget Forecast Variance Comments
Central Business Capital Reserves—Housing Property 734,061 270,908 (463,153) Decrease in tax increment revenue requires a decreased
District Acquisition contribution
Depot District Capital Reserves—Transition Holding Account 0 1,970,671 1,970,671
Add remaining tax increment revenue to Transition Holding
Account
Revolving Loan Fund Repayment 524,732 550,000 25,268 Return the entire$550K to the Revolving Loan Fund
Granary District Capital Reserves—Strategic Intervention 421,805 421,805 0 No change from FY23 Budget
Capital Reserves—Transition Holding Account 294,955 294,955 Add increased tax increment revenue to Transition Holding
Account
North Temple Capital Reserves—Transition Holding Account 0 347,616 347,616 Add increased tax increment revenue to Transition Holding
Account
Northwest Capital Reserves-Shared Costs 95,310 150,026 54,716 Increase contribution to Shared Costs
Quadrant
State Street Capital Reserves-Property Acquisition 2,104,947� 0 (2,104,947) Reallocate non-specific Property Acquisition to Strategic
Capital Reserves-Strategic Intervention 0 2,104,947 2,104,947 Intervention
Capital Reserves—Transition Holding Account 1,373,365 1,373,365 Add increased tax increment revenue to Transition Holding
Account
9 Line Capital Reserves-Property Acquisition 959,774 0 (959,774)
Reallocate non-specific Property Acquisition to Strategic
Capital Reserves-Strategic Intervention 0 959,774 959,774 Intervention
Capital Reserves—Transition Holding Account 770,952 770,952 Add increased tax increment revenue to Transition HoldingAccount
Total 4,840,629 9,218,020 4,377,391
Housing Funds Changes
Housing Funds Revenue Change
7,339,880 6,822,233 (517,647)
Revenue Changes by Housing Funds Housing Funds Expense Changes by Line Description
Housing Development Fund 3,848,000 Housing Development Loan Program 3,972,053
5,230,000 4,230,000
Primary Housing 2,464,233
- 1,599,880 Capital Reserves-Housing Property 964,233
Westside Community Initiative
500,000 Acquisition 1,599,880
. 500,000
School District Family&Workforce , 375,947
Secondary Housing 10,000 10,000 Housing
Discretionary Expenses
Fund Line Description Budget Forecast Variance
Primary Housing Capital Reserves-Property Acquisition 1,599,880 964,233 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce 0 375,947 375,947
Housing
Housing Development Fund Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Total 5,829,880 5,312,233 (517,647)
Administration Fund Changes
Administration Fund Revenue Change
3,998,655 4,647,326 648,671
Administration Fun' ExpenseAdministration Fund Expense Changes
Charges and Services 507,231
Line Description Budget Forecast Variance 218,560
Operating&Maintenance 300,000 660,000 360,000
Charges and Services 218 560 507 231 288 671 660,000
g Operating&Maintenance
�300,000
518,560 1,167,231 648,671
ERIN MENDENHALL MARY BETH THOMPSON
Mayor Chief Financial Officer
Pr *4
,P
RDA BOARD TRANSMITTAL
uta
rach tto(Mar28,202310:58MDT) Date Received: 3/28/2023
Erin Mendenhall, Executive Director Date sent to Council: 3/28/2023
TO: Salt Lake City RDA Board DATE: March 28, 2023
Alejandro Puy, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Chief Operating Officer
SUBJECT: RDA Budget Amendment#3, FY2022-23
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director(801) 535-6394 or
Mary Beth Thompson(801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed third amendment to the Annual
RDA Budget for Fiscal Year 2023. Accept public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 10,312,004.00 $ 10,312,004.00
RDA CIP FUND 0.00 0.00
TOTAL $ 10,312,004.00 $ 10,312,004.00
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET,ROOM 238
PO BOX 145467,SALT LAKE CITY,UTAH 84114-5455 TEL 801-535-6394
EXECUTIVE SUMMARY:
The purpose of the third amendment("amendment") is to addresses the following items:
1. Transfer from the General Fund for the purchase of property.
2. True up for tax increment received.
3. Adjustments to the housing trust fund.
4. Adjustment to the revolving loan fund balance.
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board.The
budget opening contains one item:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment#1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO
Third Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL
YEAR 2022-2023
WHEREAS, on June 14, 2022, the Redevelopment Agency ("RDA") Board of Directors
("Board")adopted the final budget of the RDA,effective for the fiscal year beginning July 1,2022,
and ending June 30,2023,in accordance with the requirements of Section 17C-1-601.5 of the Utah
Code.
WHEREAS, all conditions precedent to amend the RDA's final 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 final budget of the RDA, as
approved, ratified and finalized by the Board on June 14, 2022.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as"Board
Approved" are hereby adopted and incorporated into the budget of the RDA.
3. Filing o�pies 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.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this day of , 2023, to be effective upon adoption.
Alejandro Puy, Chair
Approved as to form:
Salt Lake City Attorney's Office
Allison Parks
Date:March 23,2023
1
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
2
EXHIBIT A TO RESOLUTION
[Attach Board's Final Approved Budget Amendment]
3
Fiscal Year 2022-23 RDA Budget Amendment #3
Administration Proposed Board Approved
Expenditure Revenue Expenditure Ongoing or One-
Amolunt AmoluntAmount
Section A: New Items
1 Transfer from GF for Property Purchase 4,000,000.00 4,000,000.00 One-Time -
Section B: Grants for Existing Staff Resourc '
Section C: Grants for New Staff ResouMJMMMML '
Section D: Housekeeping
1 True Up Tax Increment CBD (1,543,843.00) (125432843.00) One-time -
1 True Up Tax Increment DD 1,570,677.00 1,5452409.00 One-time -
1 True Up Tax Increment GD 453,778•oo 453,778.00 One-time -
1 True Up Tax Increment Nl'V 12653,825.00 1,653,825.00 One-time -
1 True Up Tax Increment Block 70 3,7o6.00 3,7o6.00 One-time -
1 True Up Tax Increment SS 1,720,457.00 1,720,457.00 One-time -
1 True Up Tax Increment 9 Line 121572340.00 1,157,340.00 One-time -
1 True Up Tax Increment NT 551,772.00 551,772.00 One-time -
1 True Up Tax Increment SR 662107.00 66,107.00 One-time -
1 True Up Tax Increment NWQ 547,161.00 547,161.00 One-time -
1 True Up Tax Increment Primary Housing 864,353.00 8642353.00 One-time -
1 True Up Tax Increment Admin 648,671.00 6482671.00 One-time -
2 Adjust Housing Trust Fund Loan HTF (172,000.00) (123822000.00) One-time -
2 Adjust Housing Trust Fund Loan HTF (12210,000.00) One-time -
3 RLF - 25,268.00 One-time -
Revolving Loan Fund balance adjustment
Section E: Grants Requiring No New Staff
Section F: Donations
Section G: Board Consent Agenda--Grant A
Section I: Board Added Items
Total of Budget Amendment Items 10 312 004.00 10 312 004.00 - -
�y Fund,BudgetAmendment#2: MM
Redevelopment Agency RDA 10,312,004.00 10,312,004.00 - - -
Redevelopment Agency-CP RDA-CIP - - - -
Total of Budget Amendment Items 1 10 31z 004.00 10,312,004.00 - - -
1
Fiscal Year 2022-23 RDA Budget Amendment #3
Administration Proposed Board Approved
ExpenditureExpenditure Revenue
Number/Name
Current Year Budget Summary,provided for information only
FY2022-23 Budget,Including Budget Amendments
Adopted Budget RDA BA#iTotal RDA1To-Date
Redevelopment Agency 50,172,718 - 3,266,8o5.0o 10,312,004.00 63,751,527
Redevelopment Agency CIP 13,128,181 - (3,220,000.00) - 9,9o8,181
Total of Budget Amendment Items 63,3oo,899 - 46,80.5•oo 63,347,704
Certification
Budget Director
Deputy Director,City Council/RDA Board
Contingentpp op
2
MAYOR ERIN MENDENHALL DANNY WALZ
Executive Director Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: March 24,2023
PREPARED BY: Erin Cunningham
RE: Preliminary Budget Amendment#3,FY 2022-2023
REQUESTED ACTION: Written Briefing
BUDGET IMPACTS: The preliminary Third Amendment identifies appropriations for Agency
operations and projects across multiple funds.
EXECUTIVE SUMMARY: The purpose of the briefing is to present forecasted budget proposals for the
Third Amendment("Amendment"). These proposals are based on preliminary tax increment revenue
projections received from Salt Lake County, as well as adjustments to loan principal and interest revenue
received in the Housing Development Fund. These amounts will be adjusted after the Agency receives the
final distribution at the end of March.
The proposed budget expenditure changes fall into two categories:
1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or
contractual obligations or other consistent expenses, such as:
a. Taxing Entity Payments
b. Tax Increment Reimbursements
c. Primary Housing Contributions
d. Administrative Expenses
e. Operations and Maintenance Expenses
2. Discretionary expenses that fall into the following types:
a. Capital reserve accounts for programs and projects previously approved by the Board
b. Capital reserve accounts for new programs and projects recommended by the Agency
c. Other expenses specific to needs of the fund
ANALYSIS &ISSUES: This Amendment provides for adjustments across multiple funds within the
Agency budget for Fiscal Year 2023, as described below.
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
Tax Increment and Other Revenue Adjustments
Based on the tax increment revenue projections received from the County,the Agency is expected to
receive over$6 million in additional revenue compared to the original budget.As a result, additional
contributions to the Primary Housing Fund and the Administration Fund are expected to increase.
However,while most project areas have a positive variance,the Central Business District is projected to
receive approximately$1.5 million less than was initially budgeted. A preliminary analysis indicates that
the cause is likely due to a drop in certified tax rates, coupled with decreasing assessed property values in
the hotel and shopping center industries,which are still recovering from the pandemic. Our staff is
actively gathering more data and conducting further analyses to fully understand the situation.
It is worth noting that this fiscal year marks the first year that the Agency has administered the Housing
Trust Fund loans,which were previously serviced by the Housing Stability Division. Initially, $1.6
million in principal and interest payments was budgeted,but it is now expected that the actual amount
will be approximately$1.3 million less than originally projected.
The tables below outline the forecasted revenue changes by fund.
Project Area Funds Budget BA3 Forecast Variance
Central Business District 27,573,150 26,029,306 (1,543,844)
Block 70 1,922,323 1,926,029 3,706
Depot District 3,999,587 5,570,264 1,570,677
Granary District 633,546 1,087,324 453,778
North Temple 444,053 995,825 551,772
North Temple Viaduct 1,205,109 2,858,934 1,653,825
Northwest Quadrant 903,100 1,450,261 547,161
Stadler Rail 72,420 138,527 66,107
State Street 2,631,183 4,351,640 1,720,457
9-Line 1,477,727 2,635,067 1,157,340
Total 40,862,198 47,043,177 6,180,979
Housing Funds Budget BA3 Forecast Variance
Primary Housing 1,599,880 2,464,233 864,353
Secondary Housing 10,000 10,000 0
Housing Development Fund 5,230,000 3,848,000 (1,382,000)
Westside Community Initiative 500,000 500,000 0
Total 7,339,880 6,822,233 (517,647)
Administration Fund Budget BA3 Forecast Variance
Redevelopment Agency 3,998,655 4,647,326 648,671
Operations
Total 3,998,655 4,647,326 648,671
Obligated Expense& Other Uses Adjustments
The increase in tax increment revenue will result in an increase in obligated expenses, including transfers
to the Primary Housing and Administration Funds,Debt Service to Salt Lake City,and the School
Construction Fund in the North Temple project area, as well as Administrative Fees payable to Salt Lake
County.
Moreover,the Agency anticipates that Miscellaneous Property Expenses will rise due to inflation, and it
is recommended that the remaining tax increment received in Block 70 be allocated to the Regent Street
Parking Structure reserves.
On the other hand, some expense reductions are expected, such as the expiration of a tax increment
reimbursement agreement in the Depot District and a decrease in taxing entity payments due to the
decline in tax increment revenue received in the Central Business District.
Please note that a new line description, "Transfer to Primary Housing- School District Family&
Workforce Housing,"has been added. This change is due to the interlocal agreements that the Agency has
with the Salt Lake City School District for the 9 Line and State Street project areas,which mandate that
the Primary Housing fund contribution be used exclusively for family and workforce housing. Therefore,
this addition has been made to segregate these funds and enable more efficient tracking of them.
The table below summarizes the overall changes for the Agency,which total approximately$1.8 million.
Details regarding changes by fund are provided at the end of this document.
BA3
Line Description Budget Forecast Variance
Transfer to Primary Housing Fund 1,523,880 2,012,286 488,406
Transfer to Primary Housing- School District Family 0 375,947 375,947
&Workforce Housing
Transfer to Administration 3,993,655 4,642,326 648,671
TI Reimbursements 4,090,606 3,532,931 (557,675)
Taxing Entity Payments 14,085,314 13,229,940 (855,374)
Miscellaneous Property Expense 1,130,000 1,155,000 25,000
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018
County Administration Fee 26,996 35,374 8,378
Capital Reserves- School Construction Fund(10%) 31,084 69,708 38,624
Capital Reserves-Regent Street Parking Structure 100,000 102,594 2,594
Total 26,170,067 27,973,655 1,803,588
Project Area Funds Discretionary Expense & Other Uses Adjustments
After assessing the obligatory expenses, the Agency has identified$4,377,391 in project area funds
available for discretionary spending. The staff recommends allocating any additional funds received from
tax increment to a Strategic Intervention Program for each project area, except for the following:
1. Central Business District-Due to a decrease in increment,the staff suggests reducing the
previously allocated$734,061 for Property Acquisition, specifically for Housing,to $270,908.
2. Depot District-The Board had previously approved the reallocation of$550,000 from the
Revolving Loan Fund for a Central Station property acquisition in the Depot District project area
through Budget Amendment#2 of Fiscal Year 2022. In the Fiscal Year 2023 budget,a repayment
of$524,732 to the Revolving Loan Fund was approved. With the additional tax increment
received,the staff is requesting to fully repay the$550,000.
3. Northwest Quadrant-The Northwest Quadrant project area has a budget for a Shared Costs
reserve account,which is set aside to fund redevelopment activities that benefit the entire Project
Area, are system-wide, or benefit multiple property owners or parcels. Staff proposes allocating
the additional funds received in the project area to this reserve, increasing the budget from
$95,310 to $150,026.
4. State Street and 9 Line-In addition to the extra tax increment, staff is requesting to reallocate
previously set-aside funds for Property Acquisition in the 9 Line and State Street Project Areas to
the Strategic Intervention Program. The Agency is categorizing property acquisitions into
Housing, Commercial, and Infrastructure categories to allow for better reporting during the City's
transition to Workday.As the property acquisition category had not been defined during the
Fiscal Year 2023 budget,the intention of using the Strategic Intervention Program is to set aside
funds that do not yet specify the type of property acquisition and to return to the Board when the
use is better defined.
For context, Strategic Intervention funds were approved for the North Temple and Granary District
project areas in the Fiscal Year 2022 and 2023 budgets. During the Board meeting held on April 12,2022,
a straw poll was conducted to expand the use of these funds for property acquisition, site development
cost(cleaning of contaminated properties, etc.), and development support for community benefits.
However,the final use of these funds will require approval from the Board.
Expense changes by project area fund are outlined below.
Project Area Funds Budget BA3 Forecast Variance
Central Business District
Capital Reserves-Property Acquisition 734,061 270,908 (463,153)
Total 734,061 270,908 (463,153)
Depot District MM
Capital Reserves- Strategic Intervention 0 1,970,671 1,970,671
Revolving Loan Fund Repayment 524,732 550,000 25,268
Total 524,732 2,520,671 1,995,939
Granary District
Capital Reserves- Strategic Intervention 421,805 716,760 294,955
Total 421,805 716,760 294,955
Project Area Funds Budget BA3 Forecast Variance
8North Temple
Capital Reserves- Strategic Intervention 0 347,616 347,616
Total 0 347,616 347,616
MEM
Northwest Quadrant
Capital Reserves - Shared Costs 95,310 150,026 54,716
Total 95,310 150,026 54,716
State Stree
Capital Reserves -Property Acquisition 2,104,947 0 (2,104,947)
Capital Reserves - Strategic Intervention 0 3,481,312 3,481,312
Total 2,104,947 3,481,312 1,376,365
9-Line
Capital Reserves-Property Acquisition 959,774 0 (959,774)
Capital Reserves- Strategic Intervention 0 1,730,726 1,730,726
Total 959,774 1,730,726 770,952
Project Area Funds Total 4,840,629 9,218,020 4,377,391
Housing Funds Discretionary Expense & Other Uses Adjustments
The Agency has projected an increase of$864,353 in contributions to the Primary Housing Fund.
However, due to the reallocation of$1.5 million to the Spark project in Budget Amendment#2,the
remaining budget for housing-related property acquisition stands at$99,880. In light of this,the staff has
recommended adding the additional funds back into property acquisition.
To account for the decrease of$1,382,000 in budget revenue from loan and principal payments in the
Housing Development Fund, a reduction in the contribution to the Housing Development Loan Program
will be necessary. It is important to note that this is the first year of receiving payments from the Housing
Trust Fund loans, and therefore, staff factored in the uncertainty of receiving these payments in the 2023
Notice of Funding Availability.
Housing Funds Budget BA3 Forecast Variance
Primary Housing
Capital Reserves-Property Acquisition 1,599,880 964,233 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce Housing 0 375.947 375,947
Total 1,599,880 2,464,233 864,353
Housing Development Fund
Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Total 4,230,000 29848,000 (1,382,000)
Housing Funds Total 598299880 593129233 (517,647)
Administration Fund Expense & Other Uses Adjustments
The Agency anticipates that contributions to the Administration Fund will increase by$648,671. To
accommodate the expected rise in operating expenses,the Agency proposes to augment the Operating&
Maintenance and Charges& Services line items. These increases will account for the costs associated
with inflation, including property maintenance and management,computer software and hardware,office
supplies, and travel expenses.
In addition to the increased operating expenses,the Agency has been sharing office space with the
Economic Development department. Both departments have identified a need to reconfigure their
workspace for more effective operations. The projected cost of this remodel is $200,000.
Line Description Budget BA3 Forecast Variance
Operating&Maintenance 300,000 660,000 360,000
Charges&Services 218,560 507,231 288,671
Total 5189560 191679231 6489671
Amended Budget Totals by Fund
The following tables show the preliminary proposed revenue and expense budget amendments by fund.
These tables include all the changes made to the budget and provide a comprehensive view of the
proposed amendments.
Central Business District -
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 27,573,150 26,029,306 (1,543,844)
Interest from Investments 23,500 23,500 0
Total 27,5969650 26,0529806 (1,5439844)
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Taxing Entity Payments 13,283,651 12,357,345 (926,306)
Transfer to Administration 2,757,315 2,602,931 (154,384)
Capital Reserves-Property Acquisition 734,061 270,908 (463,153)
Total 16,775,027 15,231,183 (1,543,844)
Block 70
Revenue&Other Sources
Line Description Budget BA3 Forecast Variance
Tax Increment 1,922,323 1,926,029 3,706
Interest from Investments 2,500 2,500 0
Reserves for Eccles Debt 2,469,853 2,469,853 0
Transfer From B70 Eccles Debt Service RDA match 3,260,239 3,260,239 0
Transfer From B70 Taxing Entity Payments 3,260,239 3,260,239 0
Total 10,915,154 10,918,860 3,706
Expenses&Other Uses
Line Description Budget BA3 Forecast Variance
Taxing Entity Payments 576,697 577,809 1,112
Capital Reserves Regent Street Parking Structure 100,000 102,594 2,594
Total 676,697 680,403 3,706
Depot District
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 3,999,587 5,570,264 1,570,677
Interest from Investments 50,000 50,000 0
Total 4,049,587 5,620,264 1,570,677
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 599,938 835,540 235,602
Capital Reserves- Strategic Intervention 0 1,970,671 1,970,671
Miscellaneous Property Expense 125,000 150,000 25,000
Revolving Loan Fund Repayment 524,732 550,000 25,268
TI Reimbursements 2,000,000 1,000,000 (1,000,000)
Transfer to Primary Housing Fund 799,917 1,114,053 314,136
Total 4,049,587 5,620,264 1,570,677
Granary District
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 633,546 1,087,324 453,778
Interest from Investments 15,000 15,000 0
Total 648,546 1,102,324 453,778
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 95,032 163,099 68,067
Capital Reserves- Strategic Intervention 421,805 716,760 294,955
Transfer to Primary Housing Fund 126,709 217,465 90,756
Total 643,546 1,097,324 453,778
Mth
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 444,053 995,825 551,772
Interest from Investments 5,000 5,000 0
Total 449,053 1,000,825 551,772
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 44,405 99,583 55,178
Capital Reserves- School Construction Fund(10%) 31,084 69,708 38,624
Capital Reserves- Strategic Intervention 0 347,616 347,616
Transfer to Primary Housing Fund 88,811 199,165 110,354
Total 164,300 716,072 551,772
North Temple Viaduct
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 1,205,109 2,858,934 1,653,825
Interest from Investments 1,500 1,500 0
Total 1,206,609 2,860,434 1,653,825
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 18,077 42,884 24,807
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018
Total 1,206,609 2,860,434 1,653,825
Northwest Quadrant
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 903,100 1,450,261 547,161
Interest from Investment 5,000 5,000 0
Total 908,100 1,455,261 547,161
Expenses &Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 90,310 145,026 54,716
Capital Reserves- Shared Costs 95,310 150,026 54,716
TI Reimbursements 632,170 1,015,183 383,013
Transfer to Primary Housing Fund 90,310 145,026 54,716
Total 908,100 1,455,261 547,161
Stadler Rail
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 72,420 138,527 66,107
Interest from Investments 500 500 0
Total 72,920 139,027 66,107
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 7,242 7,426 184
TI Reimbursements 58,436 117,748 59,312
Transfer to Primary Housing Fund 7,242 13,853 6,611
Total 72,920 139,027 66,107
State Street'
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 2,631,183 4,351,640 1,720,457
Total 2,631,183 4,351,640 1,720,457
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 263,118 435,164 172,046
Transfer to Primary Housing Fund 263,118 179,430 (83,688)
Transfer to Primary Housing- School District Family& 0 255,734 255,734
Workforce Housing
Capital Reserves-Property Acquisition 2,104,947 (2,104,947)
Capital Reserves- Strategic Intervention 3,481,312 3,481,312
Total 2,631,183 4,351,640 1,720,457
9-Line
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 1,477,727 2,635,067 1,157,340
Total 1,477,727 2,635,067 1,157,340
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Taxing Entity Payments 224,966 294,787 69,821
Transfer to Administration 118,218 310,673 192,455
Transfer to Primary Housing Fund 147,773 143,294 (4,479)
Transfer to Primary Housing- School District Family& 0 120,213 120,213
Workforce Housing
County Administration Fee 26,996 35,374 8,378
Capital Reserves-Property Acquisition 959,774 0 (959,774)
Capital Reserves- Strategic Intervention 0 1,730,726 1,730,726
Total 1,477,727 2,635,067 1,157,340
Primary Housing
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Interest Income 50,000 50,000 0
Interest on Loans 3,000 3,000 0
Loan Repayments 23,000 23,000 0
Transfer In from 9-Line 147,773 263,507 115,734
Transfer In from Depot District 799,917 1,114,053 314,136
Transfer In from Granary District 126,709 217,465 90,756
Transfer In from North Temple 88,811 199,165 110,354
Transfer In from Northwest Quadrant 90,310 145,026 54,716
Transfer In from Stadler Rail 7,242 13,853 6,611
Transfer In from State Street 263,118 435,164 172,046
Total 1,599,880 2,464,233 864,353
Expenses &Other Uses
BA3
Line Description Budget Forecast Variance
Capital Reserves-Property Acquisition 1,599,880 964,223 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce Housing 0 375,947 375,947
Total 1,599,880 2,464,233 864,353
Housing Development Fund
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Funding Our Future Land Discounts and Financing 2,590,000 2,590,000 0
Interest on Investment 15,000 15,000 0
Interest on Loans 255,000 83,000 (172,000)
Loan Repayments 1,370,000 160,000 (1,210,000)
Mayor's request for additional affordable housing 1,000,000 1,000,000 0
Total 5,230,000 3,848,000 (1,382,000)
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Affordable Housing Acquisition Program 1,000,000 1,000,000 0
Total 5,230,000 3,848,000 (1,382,000)
Administration Fund
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Transfer In from 9-Line 118,218 310,673 192,455
Transfer In from Central Business District 2,757,315 2,602,931 (154,384)
Transfer In from Depot District 599,938 835,540 235,602
Transfer In from Granary District 95,032 163,099 68,067
Transfer In from North Temple 44,405 99,583 55,178
Transfer In from North Temple Viaduct 18,077 42,884 24,807
Transfer In from Northwest Quadrant 90,310 145,026 54,716
Transfer In from Stadler Rail 7,242 7,426 184
Transfer In from State Street 263,118 435,164 172,046
Transfer in from West Temple Gateway 5,000 5,000 0
Total 3,998,655 4,647,326 648,671
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
RDA Personnel 2,480,095 2,480,095 0
Administrative Fees 1,000,000 1,000,000 0
Operating&Maintenance 300,000 660,000 360,000
Charges and Services 218,560 507,231 288,671
Total 3,998,655 4,647,326 648,671
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2022/2023 Budget
2. Approval of the Fiscal Year 2022/2023 Budget Amendment#1
3. Approval of the Fiscal Year 2022/2023 Budget Amendment#2
ATTACHMENTS: Fiscal Year 2022/2023 Preliminary Budget Amendment#3 Slides
Project Area Revenue Changes
Tax Increment Revenue Change
40,862,198 47,043,177 6,180,979
Tax Increment Revenue Changes by Project Area
E
26 029,306
27,573,150
B70 1,926,029
19922,323
DD 5,570,264
3,999,587
1,087,324
GD ■ 633,546
il 995,825
NT . 444,053
NTV2,858,934
09
NWQ 261
:9037,100
SR 138,527
1 72,420
SS 4,351,640
ME M2,631,183
9L 2,635,067
MM 1,477,727
Project Area Funds Expense Changes
Total Project Area Fund Changes
Obligations
6,180,979 1,803,588 0 4,377,391
TotalObligations), TotalDiscretionary
Line Description Budget Forecast Variance Line Description Budget Forecast Variance
Transfer to Primary Housing Fund 1,523,880 2,012,286 488,406 Capital Reserves-Property
Transfer to Primary Housing-School Acquisition 3,798,782 270,908 (3,527,874)
District Family&Workforce Housing 0 375,947 375,947 Capital Reserves-Shared Costs 95,310 150,026 54,716
Transfer to Administration 31993,655 4,642,326 648,671 Capital Reserves-Strategic
TI Reimbursements 4,090,606 3,532,931 (557,675) Intervention 421,805 8,247,086 7,825,281
Taxing Entity Payments 14,085,314 13,229,940 (855,374) Revolving Loan Fund Repayment 524,732 550,000 25,268
Miscellaneous Property Expense 1,430,000 1,455,000 25,000 Total 4,840,629 9,218,020 4,377,391
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018
County Administration Fee 26,996 35,374 8,378
Capital Reserves-School Construction
Fund(10%)* 31,084 69,708 38,624
Capital Reserves-Regent Street Parking
Structure 100,000 102,594 2,594
Total 26,470,067 28,273,655 1,803,588
Project Area Funds Expense Changes
Discretionary p-
Fund Line Description Budget Forecast Variance Comments
Central Business Capital Reserves-Property Acquisition 734,061 270,908 (463,153) Decrease in tax increment revenue requires a decreased
District contribution
Depot District Capital Reserves-Strategic Intervention 0 1,970,671 1,970,671 Add remaining tax increment revenue to Strategic Intervention
Revolving Loan Fund Repayment 524,732 550,000 25,268 Return the entire$550K to the Revolving Loan Fund
Granary District Capital Reserves-Strategic Intervention 421,805 716,760 294,955 Add increased tax increment revenue to Strategic Intervention
North Temple Capital Reserves-Strategic Intervention 0 347,616 347,616 Add increased tax increment revenue to Strategic Intervention
Northwest Capital Reserves-Shared Costs 95,310 150,026 54,716 Increase contribution to Shared Costs
Quadrant
State Street Capital Reserves-Property Acquisition 2,104,947 0 (2,104,947) Reallocate non-specific Property Acquisition to Strategic
\ Intervention
\y 3,481,312 3,481,312 Add increased tax increment revenue to Strategic Intervention,
Capital Reserves Strategic Intervention 0 along with reallocated Property Acquisition budget
9 Line Capital Reserves-Property Acquisition 959,774 0 (959,774)
Reallocate non-specific Property Acquisition to Strategic
\ Intervention
\y 1,730,726 1,730,726 Add increased tax increment revenue to Strategic Intervention,
Capital Reserves Strategic Intervention 0 along with reallocated Property Acquisition budget
Total 4,840,629 9,218,020 4,377,391
Housing Funds Changes
Housing Funds Revenue Change
7,339,880 6,822,233 (517,647)
Revenue Changes by Housing Funds Housing Funds Expense Changes by Line Description
Housing Development Fund 3,848,000 Housing Development Loan Program 3,972,053
5,230,000 4,230,000
Primary Housing 2,464,233
- 1,599,880 Capital Reserves-Housing Property 964,233
Westside Community Initiative
500,000 Acquisition 1,599,880
. 500,000
School District Family&Workforce , 375,947
Secondary Housing 10,000 10,000 Housing
Discretionary Expenses
Fund Line Description Budget Forecast Variance
Primary Housing Capital Reserves-Property Acquisition 1,599,880 964,233 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce 0 375,947 375,947
Housing
Housing Development Fund Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Total 5,829,880 5,312,233 (517,647)
Administration Fund Changes
Administration Fund Revenue Change
3,998,655 4,647,326 648,671
Administration Fun' ExpenseAdministration Fund Expense Changes
Charges and Services 507,231
Line Description Budget Forecast Variance 218,560
Operating&Maintenance 300,000 660,000 360,000
Charges and Services 218 560 507 231 288 671 660,000
g Operating&Maintenance
�300,000
518,560 1,167,231 648,671
MAYOR ERIN MENDENHALL DANNY WALZ
Executive Director -�= Director
,���'"��not a�`•`��.
REDEVELOPMENT AGENCY Of SALT LAKE CITY
DATE: March 24, 2023
PREPARED BY: Corinne Piazza, Senior Project Manager
RE: Redevelopment Agency of Salt Lake City("Agency")Art Funds Update
REQUESTED ACTION: None
POLICY ITEM: Agency Art Policy
BUDGET IMPACTS: Not Applicable—Prior Budget Allocation
EXECUTIVE SUMMARY: This is a written briefing to inform the Board of how Agency staff plans to
use previously allocated art funds.
ANALYSIS & ISSUES: The Agency has funds earmarked for art and intends to use the funding for the
following art projects.The chart below includes upcoming projects,a high-level description of each project,
and funding amounts.The following projects will be in line with the Agency Art Policy,which was updated
with Board approval in 2021, including further clarification on the Agency's art programming and
collaboration process with the Salt Lake City Arts Council("Arts Council").
Project Description Amount
State Street Project Area: Similar to the Agency's Granary District Mural $150,000
Community Connection Project,this project will be launched in the new State
Mural Project Street Project Area as an initial activation effort in
collaboration with local businesses,property owners,
and artists. Agency staff is currently crafting the
program parameters and anticipates that over—6,000
square feet of publicly visible mural art will be added
to the neighborhood through this project.
Seven Canyons Trust Seven Canyons Trust is a local nonprofit $8,000
Folsom Corridor Mural organization that specializes in daylighting Salt Lake
Valley's buried and impaired creeks and is a partner
with the Agency on the City Creek Daylighting
Design Plan. The Agency has partnered with Seven
Canyons Trust to collaboratively fund a$15,000
mural project on the Folsom Trail with additional
partners including the Arts Council and River District
Business Alliance.
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
The call for artists is open until March 31 with an
anticipated unveiling celebration in August 2023.
The mural is intended to acknowledge City Creek's
presence,beautify the Folsom Trail corridor, and
represent the Euclid and Poplar Grove
neighborhoods.
Japantown Placemaking The Agency recently facilitated the creation of the $100,000
Japantown Design Strategy("Strategy")in
partnership with the Japantown community and
GSBS Architects. The Strategy identifies community
placemaking priorities, including history and
storytelling elements, art,entryway monuments, and
streetscaping. Agency staff will work with the
Japantown community to prioritize and implement an
initial art project.
North Temple Corridor: The Agency is working with the Arts Council to $150,000
Activation through Public create new art installations along the North Temple
Art corridor.
Total - $408,000
Additionally, the Fiscal Year 2024 budget will include a request for $150,000 in art funds for the 9 Line
Project Area. This (if approved), combined with the projects listed above, would result in approximately
$550,0000 in art investments within the Agency's two newest project areas(State Street and 9 Line),North
Temple, and the Central Business District.
REDEVELOPMENT ADVISORY COMMITTEE RECOMMENDATIONS:Not applicable
PREVIOUS BOARD ACTION:
• March 2021: Board Approved Agency Art Policy Update
• FY2021 Budget: $250,000 Public Art Funding Allocation
• FY2018 Budget: $250,000 Public Art Funding Allocation
ATTACHMENTS:None
ERIN MENDENHALL MARY BETH THOMPSON
Mayor Chief Financial Officer
Pr *4
,P
RDA BOARD TRANSMITTAL
uta
rach tto(Mar28,202310:58MDT) Date Received: 3/28/2023
Erin Mendenhall, Executive Director Date sent to Council: 3/28/2023
TO: Salt Lake City RDA Board DATE: March 28, 2023
Alejandro Puy, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Chief Operating Officer
SUBJECT: RDA Budget Amendment#3, FY2022-23
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director(801) 535-6394 or
Mary Beth Thompson(801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed third amendment to the Annual
RDA Budget for Fiscal Year 2023. Accept public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 10,312,004.00 $ 10,312,004.00
RDA CIP FUND 0.00 0.00
TOTAL $ 10,312,004.00 $ 10,312,004.00
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET,ROOM 238
PO BOX 145467,SALT LAKE CITY,UTAH 84114-5455 TEL 801-535-6394
EXECUTIVE SUMMARY:
The purpose of the third amendment("amendment") is to addresses the following items:
1. Transfer from the General Fund for the purchase of property.
2. True up for tax increment received.
3. Adjustments to the housing trust fund.
4. Adjustment to the revolving loan fund balance.
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board.The
budget opening contains one item:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment#1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO
Third Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL
YEAR 2022-2023
WHEREAS, on June 14, 2022, the Redevelopment Agency ("RDA") Board of Directors
("Board")adopted the final budget of the RDA,effective for the fiscal year beginning July 1,2022,
and ending June 30,2023,in accordance with the requirements of Section 17C-1-601.5 of the Utah
Code.
WHEREAS, all conditions precedent to amend the RDA's final 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 final budget of the RDA, as
approved, ratified and finalized by the Board on June 14, 2022.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as"Board
Approved" are hereby adopted and incorporated into the budget of the RDA.
3. Filing o�pies 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.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this day of , 2023, to be effective upon adoption.
Alejandro Puy, Chair
Approved as to form:
Salt Lake City Attorney's Office
Allison Parks
Date:March 23,2023
1
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
2
EXHIBIT A TO RESOLUTION
[Attach Board's Final Approved Budget Amendment]
3
Fiscal Year 2022-23 RDA Budget Amendment #3
Administration Proposed Board Approved
Expenditure Revenue Expenditure Ongoing or One-
Amolunt AmoluntAmount
Section A: New Items
1 Transfer from GF for Property Purchase 4,000,000.00 4,000,000.00 One-Time -
Section B: Grants for Existing Staff Resourc '
Section C: Grants for New Staff ResouMJMMMML '
Section D: Housekeeping
1 True Up Tax Increment CBD (1,543,843.00) (125432843.00) One-time -
1 True Up Tax Increment DD 1,570,677.00 1,5452409.00 One-time -
1 True Up Tax Increment GD 453,778•oo 453,778.00 One-time -
1 True Up Tax Increment Nl'V 12653,825.00 1,653,825.00 One-time -
1 True Up Tax Increment Block 70 3,7o6.00 3,7o6.00 One-time -
1 True Up Tax Increment SS 1,720,457.00 1,720,457.00 One-time -
1 True Up Tax Increment 9 Line 121572340.00 1,157,340.00 One-time -
1 True Up Tax Increment NT 551,772.00 551,772.00 One-time -
1 True Up Tax Increment SR 662107.00 66,107.00 One-time -
1 True Up Tax Increment NWQ 547,161.00 547,161.00 One-time -
1 True Up Tax Increment Primary Housing 864,353.00 8642353.00 One-time -
1 True Up Tax Increment Admin 648,671.00 6482671.00 One-time -
2 Adjust Housing Trust Fund Loan HTF (172,000.00) (123822000.00) One-time -
2 Adjust Housing Trust Fund Loan HTF (12210,000.00) One-time -
3 RLF - 25,268.00 One-time -
Revolving Loan Fund balance adjustment
Section E: Grants Requiring No New Staff
Section F: Donations
Section G: Board Consent Agenda--Grant A
Section I: Board Added Items
Total of Budget Amendment Items 10 312 004.00 10 312 004.00 - -
�y Fund,BudgetAmendment#2: MM
Redevelopment Agency RDA 10,312,004.00 10,312,004.00 - - -
Redevelopment Agency-CP RDA-CIP - - - -
Total of Budget Amendment Items 1 10 31z 004.00 10,312,004.00 - - -
1
Fiscal Year 2022-23 RDA Budget Amendment #3
Administration Proposed Board Approved
ExpenditureExpenditure Revenue
Number/Name
Current Year Budget Summary,provided for information only
FY2022-23 Budget,Including Budget Amendments
Adopted Budget RDA BA#iTotal RDA1To-Date
Redevelopment Agency 50,172,718 - 3,266,8o5.0o 10,312,004.00 63,751,527
Redevelopment Agency CIP 13,128,181 - (3,220,000.00) - 9,9o8,181
Total of Budget Amendment Items 63,3oo,899 - 46,80.5•oo 63,347,704
Certification
Budget Director
Deputy Director,City Council/RDA Board
Contingentpp op
2
MAYOR ERIN MENDENHALL DANNY WALZ
Executive Director Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: March 24,2023
PREPARED BY: Erin Cunningham
RE: Preliminary Budget Amendment#3,FY 2022-2023
REQUESTED ACTION: Written Briefing
BUDGET IMPACTS: The preliminary Third Amendment identifies appropriations for Agency
operations and projects across multiple funds.
EXECUTIVE SUMMARY: The purpose of the briefing is to present forecasted budget proposals for the
Third Amendment("Amendment"). These proposals are based on preliminary tax increment revenue
projections received from Salt Lake County, as well as adjustments to loan principal and interest revenue
received in the Housing Development Fund. These amounts will be adjusted after the Agency receives the
final distribution at the end of March.
The proposed budget expenditure changes fall into two categories:
1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or
contractual obligations or other consistent expenses, such as:
a. Taxing Entity Payments
b. Tax Increment Reimbursements
c. Primary Housing Contributions
d. Administrative Expenses
e. Operations and Maintenance Expenses
2. Discretionary expenses that fall into the following types:
a. Capital reserve accounts for programs and projects previously approved by the Board
b. Capital reserve accounts for new programs and projects recommended by the Agency
c. Other expenses specific to needs of the fund
ANALYSIS &ISSUES: This Amendment provides for adjustments across multiple funds within the
Agency budget for Fiscal Year 2023, as described below.
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
Tax Increment and Other Revenue Adjustments
Based on the tax increment revenue projections received from the County,the Agency is expected to
receive over$6 million in additional revenue compared to the original budget.As a result, additional
contributions to the Primary Housing Fund and the Administration Fund are expected to increase.
However,while most project areas have a positive variance,the Central Business District is projected to
receive approximately$1.5 million less than was initially budgeted. A preliminary analysis indicates that
the cause is likely due to a drop in certified tax rates, coupled with decreasing assessed property values in
the hotel and shopping center industries,which are still recovering from the pandemic. Our staff is
actively gathering more data and conducting further analyses to fully understand the situation.
It is worth noting that this fiscal year marks the first year that the Agency has administered the Housing
Trust Fund loans,which were previously serviced by the Housing Stability Division. Initially, $1.6
million in principal and interest payments was budgeted,but it is now expected that the actual amount
will be approximately$1.3 million less than originally projected.
The tables below outline the forecasted revenue changes by fund.
Project Area Funds Budget BA3 Forecast Variance
Central Business District 27,573,150 26,029,306 (1,543,844)
Block 70 1,922,323 1,926,029 3,706
Depot District 3,999,587 5,570,264 1,570,677
Granary District 633,546 1,087,324 453,778
North Temple 444,053 995,825 551,772
North Temple Viaduct 1,205,109 2,858,934 1,653,825
Northwest Quadrant 903,100 1,450,261 547,161
Stadler Rail 72,420 138,527 66,107
State Street 2,631,183 4,351,640 1,720,457
9-Line 1,477,727 2,635,067 1,157,340
Total 40,862,198 47,043,177 6,180,979
Housing Funds Budget BA3 Forecast Variance
Primary Housing 1,599,880 2,464,233 864,353
Secondary Housing 10,000 10,000 0
Housing Development Fund 5,230,000 3,848,000 (1,382,000)
Westside Community Initiative 500,000 500,000 0
Total 7,339,880 6,822,233 (517,647)
Administration Fund Budget BA3 Forecast Variance
Redevelopment Agency 3,998,655 4,647,326 648,671
Operations
Total 3,998,655 4,647,326 648,671
Obligated Expense& Other Uses Adjustments
The increase in tax increment revenue will result in an increase in obligated expenses, including transfers
to the Primary Housing and Administration Funds,Debt Service to Salt Lake City,and the School
Construction Fund in the North Temple project area, as well as Administrative Fees payable to Salt Lake
County.
Moreover,the Agency anticipates that Miscellaneous Property Expenses will rise due to inflation, and it
is recommended that the remaining tax increment received in Block 70 be allocated to the Regent Street
Parking Structure reserves.
On the other hand, some expense reductions are expected, such as the expiration of a tax increment
reimbursement agreement in the Depot District and a decrease in taxing entity payments due to the
decline in tax increment revenue received in the Central Business District.
Please note that a new line description, "Transfer to Primary Housing- School District Family&
Workforce Housing,"has been added. This change is due to the interlocal agreements that the Agency has
with the Salt Lake City School District for the 9 Line and State Street project areas,which mandate that
the Primary Housing fund contribution be used exclusively for family and workforce housing. Therefore,
this addition has been made to segregate these funds and enable more efficient tracking of them.
The table below summarizes the overall changes for the Agency,which total approximately$1.8 million.
Details regarding changes by fund are provided at the end of this document.
BA3
Line Description Budget Forecast Variance
Transfer to Primary Housing Fund 1,523,880 2,012,286 488,406
Transfer to Primary Housing- School District Family 0 375,947 375,947
&Workforce Housing
Transfer to Administration 3,993,655 4,642,326 648,671
TI Reimbursements 4,090,606 3,532,931 (557,675)
Taxing Entity Payments 14,085,314 13,229,940 (855,374)
Miscellaneous Property Expense 1,130,000 1,155,000 25,000
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018
County Administration Fee 26,996 35,374 8,378
Capital Reserves- School Construction Fund(10%) 31,084 69,708 38,624
Capital Reserves-Regent Street Parking Structure 100,000 102,594 2,594
Total 26,170,067 27,973,655 1,803,588
Project Area Funds Discretionary Expense & Other Uses Adjustments
After assessing the obligatory expenses, the Agency has identified$4,377,391 in project area funds
available for discretionary spending. The staff recommends allocating any additional funds received from
tax increment to a Strategic Intervention Program for each project area, except for the following:
1. Central Business District-Due to a decrease in increment,the staff suggests reducing the
previously allocated$734,061 for Property Acquisition, specifically for Housing,to $270,908.
2. Depot District-The Board had previously approved the reallocation of$550,000 from the
Revolving Loan Fund for a Central Station property acquisition in the Depot District project area
through Budget Amendment#2 of Fiscal Year 2022. In the Fiscal Year 2023 budget,a repayment
of$524,732 to the Revolving Loan Fund was approved. With the additional tax increment
received,the staff is requesting to fully repay the$550,000.
3. Northwest Quadrant-The Northwest Quadrant project area has a budget for a Shared Costs
reserve account,which is set aside to fund redevelopment activities that benefit the entire Project
Area, are system-wide, or benefit multiple property owners or parcels. Staff proposes allocating
the additional funds received in the project area to this reserve, increasing the budget from
$95,310 to $150,026.
4. State Street and 9 Line-In addition to the extra tax increment, staff is requesting to reallocate
previously set-aside funds for Property Acquisition in the 9 Line and State Street Project Areas to
the Strategic Intervention Program. The Agency is categorizing property acquisitions into
Housing, Commercial, and Infrastructure categories to allow for better reporting during the City's
transition to Workday.As the property acquisition category had not been defined during the
Fiscal Year 2023 budget,the intention of using the Strategic Intervention Program is to set aside
funds that do not yet specify the type of property acquisition and to return to the Board when the
use is better defined.
For context, Strategic Intervention funds were approved for the North Temple and Granary District
project areas in the Fiscal Year 2022 and 2023 budgets. During the Board meeting held on April 12,2022,
a straw poll was conducted to expand the use of these funds for property acquisition, site development
cost(cleaning of contaminated properties, etc.), and development support for community benefits.
However,the final use of these funds will require approval from the Board.
Expense changes by project area fund are outlined below.
Project Area Funds Budget BA3 Forecast Variance
Central Business District
Capital Reserves-Property Acquisition 734,061 270,908 (463,153)
Total 734,061 270,908 (463,153)
Depot District MM
Capital Reserves- Strategic Intervention 0 1,970,671 1,970,671
Revolving Loan Fund Repayment 524,732 550,000 25,268
Total 524,732 2,520,671 1,995,939
Granary District
Capital Reserves- Strategic Intervention 421,805 716,760 294,955
Total 421,805 716,760 294,955
Project Area Funds Budget BA3 Forecast Variance
8North Temple
Capital Reserves- Strategic Intervention 0 347,616 347,616
Total 0 347,616 347,616
MEM
Northwest Quadrant
Capital Reserves - Shared Costs 95,310 150,026 54,716
Total 95,310 150,026 54,716
State Stree
Capital Reserves -Property Acquisition 2,104,947 0 (2,104,947)
Capital Reserves - Strategic Intervention 0 3,481,312 3,481,312
Total 2,104,947 3,481,312 1,376,365
9-Line
Capital Reserves-Property Acquisition 959,774 0 (959,774)
Capital Reserves- Strategic Intervention 0 1,730,726 1,730,726
Total 959,774 1,730,726 770,952
Project Area Funds Total 4,840,629 9,218,020 4,377,391
Housing Funds Discretionary Expense & Other Uses Adjustments
The Agency has projected an increase of$864,353 in contributions to the Primary Housing Fund.
However, due to the reallocation of$1.5 million to the Spark project in Budget Amendment#2,the
remaining budget for housing-related property acquisition stands at$99,880. In light of this,the staff has
recommended adding the additional funds back into property acquisition.
To account for the decrease of$1,382,000 in budget revenue from loan and principal payments in the
Housing Development Fund, a reduction in the contribution to the Housing Development Loan Program
will be necessary. It is important to note that this is the first year of receiving payments from the Housing
Trust Fund loans, and therefore, staff factored in the uncertainty of receiving these payments in the 2023
Notice of Funding Availability.
Housing Funds Budget BA3 Forecast Variance
Primary Housing
Capital Reserves-Property Acquisition 1,599,880 964,233 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce Housing 0 375.947 375,947
Total 1,599,880 2,464,233 864,353
Housing Development Fund
Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Total 4,230,000 29848,000 (1,382,000)
Housing Funds Total 598299880 593129233 (517,647)
Administration Fund Expense & Other Uses Adjustments
The Agency anticipates that contributions to the Administration Fund will increase by$648,671. To
accommodate the expected rise in operating expenses,the Agency proposes to augment the Operating&
Maintenance and Charges& Services line items. These increases will account for the costs associated
with inflation, including property maintenance and management,computer software and hardware,office
supplies, and travel expenses.
In addition to the increased operating expenses,the Agency has been sharing office space with the
Economic Development department. Both departments have identified a need to reconfigure their
workspace for more effective operations. The projected cost of this remodel is $200,000.
Line Description Budget BA3 Forecast Variance
Operating&Maintenance 300,000 660,000 360,000
Charges&Services 218,560 507,231 288,671
Total 5189560 191679231 6489671
Amended Budget Totals by Fund
The following tables show the preliminary proposed revenue and expense budget amendments by fund.
These tables include all the changes made to the budget and provide a comprehensive view of the
proposed amendments.
Central Business District -
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 27,573,150 26,029,306 (1,543,844)
Interest from Investments 23,500 23,500 0
Total 27,5969650 26,0529806 (1,5439844)
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Taxing Entity Payments 13,283,651 12,357,345 (926,306)
Transfer to Administration 2,757,315 2,602,931 (154,384)
Capital Reserves-Property Acquisition 734,061 270,908 (463,153)
Total 16,775,027 15,231,183 (1,543,844)
Block 70
Revenue&Other Sources
Line Description Budget BA3 Forecast Variance
Tax Increment 1,922,323 1,926,029 3,706
Interest from Investments 2,500 2,500 0
Reserves for Eccles Debt 2,469,853 2,469,853 0
Transfer From B70 Eccles Debt Service RDA match 3,260,239 3,260,239 0
Transfer From B70 Taxing Entity Payments 3,260,239 3,260,239 0
Total 10,915,154 10,918,860 3,706
Expenses&Other Uses
Line Description Budget BA3 Forecast Variance
Taxing Entity Payments 576,697 577,809 1,112
Capital Reserves Regent Street Parking Structure 100,000 102,594 2,594
Total 676,697 680,403 3,706
Depot District
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 3,999,587 5,570,264 1,570,677
Interest from Investments 50,000 50,000 0
Total 4,049,587 5,620,264 1,570,677
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 599,938 835,540 235,602
Capital Reserves- Strategic Intervention 0 1,970,671 1,970,671
Miscellaneous Property Expense 125,000 150,000 25,000
Revolving Loan Fund Repayment 524,732 550,000 25,268
TI Reimbursements 2,000,000 1,000,000 (1,000,000)
Transfer to Primary Housing Fund 799,917 1,114,053 314,136
Total 4,049,587 5,620,264 1,570,677
Granary District
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 633,546 1,087,324 453,778
Interest from Investments 15,000 15,000 0
Total 648,546 1,102,324 453,778
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 95,032 163,099 68,067
Capital Reserves- Strategic Intervention 421,805 716,760 294,955
Transfer to Primary Housing Fund 126,709 217,465 90,756
Total 643,546 1,097,324 453,778
Mth
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 444,053 995,825 551,772
Interest from Investments 5,000 5,000 0
Total 449,053 1,000,825 551,772
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 44,405 99,583 55,178
Capital Reserves- School Construction Fund(10%) 31,084 69,708 38,624
Capital Reserves- Strategic Intervention 0 347,616 347,616
Transfer to Primary Housing Fund 88,811 199,165 110,354
Total 164,300 716,072 551,772
North Temple Viaduct
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 1,205,109 2,858,934 1,653,825
Interest from Investments 1,500 1,500 0
Total 1,206,609 2,860,434 1,653,825
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 18,077 42,884 24,807
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018
Total 1,206,609 2,860,434 1,653,825
Northwest Quadrant
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 903,100 1,450,261 547,161
Interest from Investment 5,000 5,000 0
Total 908,100 1,455,261 547,161
Expenses &Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 90,310 145,026 54,716
Capital Reserves- Shared Costs 95,310 150,026 54,716
TI Reimbursements 632,170 1,015,183 383,013
Transfer to Primary Housing Fund 90,310 145,026 54,716
Total 908,100 1,455,261 547,161
Stadler Rail
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 72,420 138,527 66,107
Interest from Investments 500 500 0
Total 72,920 139,027 66,107
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 7,242 7,426 184
TI Reimbursements 58,436 117,748 59,312
Transfer to Primary Housing Fund 7,242 13,853 6,611
Total 72,920 139,027 66,107
State Street'
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 2,631,183 4,351,640 1,720,457
Total 2,631,183 4,351,640 1,720,457
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Transfer to Administration 263,118 435,164 172,046
Transfer to Primary Housing Fund 263,118 179,430 (83,688)
Transfer to Primary Housing- School District Family& 0 255,734 255,734
Workforce Housing
Capital Reserves-Property Acquisition 2,104,947 (2,104,947)
Capital Reserves- Strategic Intervention 3,481,312 3,481,312
Total 2,631,183 4,351,640 1,720,457
9-Line
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Tax Increment 1,477,727 2,635,067 1,157,340
Total 1,477,727 2,635,067 1,157,340
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Taxing Entity Payments 224,966 294,787 69,821
Transfer to Administration 118,218 310,673 192,455
Transfer to Primary Housing Fund 147,773 143,294 (4,479)
Transfer to Primary Housing- School District Family& 0 120,213 120,213
Workforce Housing
County Administration Fee 26,996 35,374 8,378
Capital Reserves-Property Acquisition 959,774 0 (959,774)
Capital Reserves- Strategic Intervention 0 1,730,726 1,730,726
Total 1,477,727 2,635,067 1,157,340
Primary Housing
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Interest Income 50,000 50,000 0
Interest on Loans 3,000 3,000 0
Loan Repayments 23,000 23,000 0
Transfer In from 9-Line 147,773 263,507 115,734
Transfer In from Depot District 799,917 1,114,053 314,136
Transfer In from Granary District 126,709 217,465 90,756
Transfer In from North Temple 88,811 199,165 110,354
Transfer In from Northwest Quadrant 90,310 145,026 54,716
Transfer In from Stadler Rail 7,242 13,853 6,611
Transfer In from State Street 263,118 435,164 172,046
Total 1,599,880 2,464,233 864,353
Expenses &Other Uses
BA3
Line Description Budget Forecast Variance
Capital Reserves-Property Acquisition 1,599,880 964,223 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce Housing 0 375,947 375,947
Total 1,599,880 2,464,233 864,353
Housing Development Fund
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Funding Our Future Land Discounts and Financing 2,590,000 2,590,000 0
Interest on Investment 15,000 15,000 0
Interest on Loans 255,000 83,000 (172,000)
Loan Repayments 1,370,000 160,000 (1,210,000)
Mayor's request for additional affordable housing 1,000,000 1,000,000 0
Total 5,230,000 3,848,000 (1,382,000)
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Affordable Housing Acquisition Program 1,000,000 1,000,000 0
Total 5,230,000 3,848,000 (1,382,000)
Administration Fund
Revenue&Other Sources
BA3
Line Description Budget Forecast Variance
Transfer In from 9-Line 118,218 310,673 192,455
Transfer In from Central Business District 2,757,315 2,602,931 (154,384)
Transfer In from Depot District 599,938 835,540 235,602
Transfer In from Granary District 95,032 163,099 68,067
Transfer In from North Temple 44,405 99,583 55,178
Transfer In from North Temple Viaduct 18,077 42,884 24,807
Transfer In from Northwest Quadrant 90,310 145,026 54,716
Transfer In from Stadler Rail 7,242 7,426 184
Transfer In from State Street 263,118 435,164 172,046
Transfer in from West Temple Gateway 5,000 5,000 0
Total 3,998,655 4,647,326 648,671
Expenses&Other Uses
BA3
Line Description Budget Forecast Variance
RDA Personnel 2,480,095 2,480,095 0
Administrative Fees 1,000,000 1,000,000 0
Operating&Maintenance 300,000 660,000 360,000
Charges and Services 218,560 507,231 288,671
Total 3,998,655 4,647,326 648,671
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2022/2023 Budget
2. Approval of the Fiscal Year 2022/2023 Budget Amendment#1
3. Approval of the Fiscal Year 2022/2023 Budget Amendment#2
ATTACHMENTS: Fiscal Year 2022/2023 Preliminary Budget Amendment#3 Slides
Project Area Revenue Changes
Tax Increment Revenue Change
40,862,198 47,043,177 6,180,979
Tax Increment Revenue Changes by Project Area
E
26 029,306
27,573,150
B70 1,926,029
19922,323
DD 5,570,264
3,999,587
1,087,324
GD ■ 633,546
il 995,825
NT . 444,053
NTV2,858,934
09
NWQ 261
:9037,100
SR 138,527
1 72,420
SS 4,351,640
ME M2,631,183
9L 2,635,067
MM 1,477,727
Project Area Funds Expense Changes
Total Project Area Fund Changes
Obligations
6,180,979 1,803,588 0 4,377,391
TotalObligations), TotalDiscretionary
Line Description Budget Forecast Variance Line Description Budget Forecast Variance
Transfer to Primary Housing Fund 1,523,880 2,012,286 488,406 Capital Reserves-Property
Transfer to Primary Housing-School Acquisition 3,798,782 270,908 (3,527,874)
District Family&Workforce Housing 0 375,947 375,947 Capital Reserves-Shared Costs 95,310 150,026 54,716
Transfer to Administration 31993,655 4,642,326 648,671 Capital Reserves-Strategic
TI Reimbursements 4,090,606 3,532,931 (557,675) Intervention 421,805 8,247,086 7,825,281
Taxing Entity Payments 14,085,314 13,229,940 (855,374) Revolving Loan Fund Repayment 524,732 550,000 25,268
Miscellaneous Property Expense 1,430,000 1,455,000 25,000 Total 4,840,629 9,218,020 4,377,391
Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,629,018
County Administration Fee 26,996 35,374 8,378
Capital Reserves-School Construction
Fund(10%)* 31,084 69,708 38,624
Capital Reserves-Regent Street Parking
Structure 100,000 102,594 2,594
Total 26,470,067 28,273,655 1,803,588
Project Area Funds Expense Changes
Discretionary p-
Fund Line Description Budget Forecast Variance Comments
Central Business Capital Reserves-Property Acquisition 734,061 270,908 (463,153) Decrease in tax increment revenue requires a decreased
District contribution
Depot District Capital Reserves-Strategic Intervention 0 1,970,671 1,970,671 Add remaining tax increment revenue to Strategic Intervention
Revolving Loan Fund Repayment 524,732 550,000 25,268 Return the entire$550K to the Revolving Loan Fund
Granary District Capital Reserves-Strategic Intervention 421,805 716,760 294,955 Add increased tax increment revenue to Strategic Intervention
North Temple Capital Reserves-Strategic Intervention 0 347,616 347,616 Add increased tax increment revenue to Strategic Intervention
Northwest Capital Reserves-Shared Costs 95,310 150,026 54,716 Increase contribution to Shared Costs
Quadrant
State Street Capital Reserves-Property Acquisition 2,104,947 0 (2,104,947) Reallocate non-specific Property Acquisition to Strategic
\ Intervention
\y 3,481,312 3,481,312 Add increased tax increment revenue to Strategic Intervention,
Capital Reserves Strategic Intervention 0 along with reallocated Property Acquisition budget
9 Line Capital Reserves-Property Acquisition 959,774 0 (959,774)
Reallocate non-specific Property Acquisition to Strategic
\ Intervention
\y 1,730,726 1,730,726 Add increased tax increment revenue to Strategic Intervention,
Capital Reserves Strategic Intervention 0 along with reallocated Property Acquisition budget
Total 4,840,629 9,218,020 4,377,391
Housing Funds Changes
Housing Funds Revenue Change
7,339,880 6,822,233 (517,647)
Revenue Changes by Housing Funds Housing Funds Expense Changes by Line Description
Housing Development Fund 3,848,000 Housing Development Loan Program 3,972,053
5,230,000 4,230,000
Primary Housing 2,464,233
- 1,599,880 Capital Reserves-Housing Property 964,233
Westside Community Initiative
500,000 Acquisition 1,599,880
. 500,000
School District Family&Workforce , 375,947
Secondary Housing 10,000 10,000 Housing
Discretionary Expenses
Fund Line Description Budget Forecast Variance
Primary Housing Capital Reserves-Property Acquisition 1,599,880 964,233 (635,647)
Housing Development Loan Program 0 1,124,053 1,124,053
School District Family&Workforce 0 375,947 375,947
Housing
Housing Development Fund Housing Development Loan Program 4,230,000 2,848,000 (1,382,000)
Total 5,829,880 5,312,233 (517,647)
Administration Fund Changes
Administration Fund Revenue Change
3,998,655 4,647,326 648,671
Administration Fun' ExpenseAdministration Fund Expense Changes
Charges and Services 507,231
Line Description Budget Forecast Variance 218,560
Operating&Maintenance 300,000 660,000 360,000
Charges and Services 218 560 507 231 288 671 660,000
g Operating&Maintenance
�300,000
518,560 1,167,231 648,671