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6/2/2021 - Meeting MinutesMINUTES FROM THE MEETING OF THE REDEVELOPMENT ADVISORY COMMITTEE Wednesday, June 2, 2021 4:00 p.m. This meeting was an electronic meeting pursuant to Salt Lake City Emergency Proclamation No. 2 of 2020 (2)(b). Chairperson Doughty read the following statement: I, Brian Doughty, Chair of the Redevelopment Advisory Committee, hereby determine that conducting public meetings at an anchor location presents a substantial risk to the health and safety of those who may be present at the anchor location. Due to the local state of emergency from the earthquake in March 2020 and attendant damage to the building, I find that conducting a meeting at the anchor location under the current local emergency constitutes a substantial risk to the health and safety of those who may be present. 1. Roll Call The following members were present: Brian Doughty, Chairperson Nic Peterson Claudia O’Grady Rosa Bandiernha The following members were absent: Mojdeh Sakaki, Vice-Chairperson Jason Head Mark Isaac Also Present: Tammy Hunsaker, RDA Deputy Director; Robyn Stine, RDA Office Facilitator; Ashley Ogden, RDA Project Manager, Cara Lindsley, RDA Senior Project Manager, Kort Utley, RDA Senior Project Manager; Allison Parks, Senior City Attorney, Felina Lazalde, RDA Office Facilitator; Jonathan Bates, University of Utah, Keith Marmer, University of Utah Roll call was held to introduce new committee member, Nic Peterson. Ms. Stine introduced new RDA Office Facilitator, Felina Lazalde to the Committee. 2. Briefing by the Staff A. Station Center Innovation District Concept – Ashley Ogden, Project Manager and Cara Lindsley, Senior Project Manager Ms. Ogden said for many years the RDA has been working towards the development referred to as the Station Center area, an assemblage of property between 500 - 600 West and 200 - 400 South in the Depot District project area. She said RDA planning efforts have long called for Station Center, which is next to the UTA Intermodal Hub, to become a model of successful transit-oriented development. Ms. Ogden said the vision includes maximizing permitted densities with mixed-use development, including affordable residential spaces and commercial and active street-level use. She said it also includes the extension of the City grid to create new mid-block connections, prioritizing alternative modes over cars. As well as new developments that complement the Salt Lake City Warehouse National Historic District that this project area is located. Ms. Ogden said that the Agency has undertaken significant site planning design efforts, acknowledging the ambitious vision for the neighborhood. She added that Agency staff recognizes the unique opportunity to do something especially impactful and because of that, the RDA began to engage in discussions with the University of Utah related to the establishment of a downtown University presence. She added that with the Mayor’s support, the RDA and the University together commissioned a study by HR&A Advisors to look at the feasibility of partnering to create a University anchored Innovation District at Station Center. Ms. Ogden explained that The Brookings Institute first coined the term Innovation District, describing it as dense enclaves that merge the innovation and employment potential of research-oriented anchor institutions, high-growth firms, and tech and creative start-ups in well designed, amenity rich residential and commercial environments. She said the goal with innovation districts is to co-locate these types of uses all in one place and have this overarching governing entity that manages the district’s increased programming to encourage collaboration and the transfer of ideas between the different tenants. The early version of an innovation district was the Research Park type of model with isolated clusters of office buildings. We are starting to see that people who work in these innovation districts want to be in a more urban environment, where they can take public transit or walk to work or easily pop downstairs for a sandwich or to take an exercise class. She said these trends have pushed the existing research parks to urbanize and add more density to their districts as well as creating demand for these newly developed downtown innovation districts. Some examples of university anchored innovation districts: 1. Research Triangle Park, Raleigh/Durham/Chapel Hill, NC located close to Duke University, NC State, UNC Chapel Hill and NC Central universities. It is governed by a private nonprofit called the Research Triangle Foundation and has been around since 1959 and they first pioneered the idea of different universities and companies could partner to commercialize new technologies. Due to its age, it falls into the category of the Research Park style campus that is now trying to modernize to keep up with evolving preferences. For example, there are major redevelopment plans calling for restaurants, retail spaces, entertainment venues, open space, as well as extending public transit to surface areas. 2. Cortex Innovation Community in St. Louis, MO was founded in 2002 by Washington University, St. Louis University, University of Missouri St. Louis. Barnes Jewish Hospital, and the Missouri Botanical Garden, and governed by a 501(c)3 nonprofit. This project involves the redevelopment of about 200 acres of distressed industrial land in St. Louis's Midtown area, and as of December 2019, the district was home to 425 companies supporting 6000 employees. During the four-year period between 2014 and 2018, the district generated an increase of almost $41 million in additional tax revenue above baseline levels without the new Cortex development. 3. PHX Core, Phoenix, AZ. This innovation district development is anchored by Arizona State University, the Phoenix Biomedical Campus, and Galvanize, a private company that provides co-working spaces and resources for entrepreneurs. A few different events have contributed to the success of this project, including the extension of light rail near the site. Multiple universities have located hybrid programming within the district, such as enhanced connectivity and reactivation of the downtown attracts more private investment and new residents to the area. Since 2012, the number of tech companies downtown has increased from 67 to 285 and tech jobs increased by almost 20% between 2010 and 2015. Local economic impacts have been significant, and huge deals are being made between inventors and venture capital firms, leading to significant private investment. In in the literature we've looked at, many locals point to Arizona State University's downtown presence as the primary driver of this transformation. Ms. Lindsley said that HR&A Advisors completed a feasibility study of creating an innovation district in Station Center. There were three study components: 1. Stakeholder Engagement 2. Innovation Asset Assessment 3. Programming & Partnerships Strategy Ms. Lindsley said in August and September of 2020, HR&A hosted 14 discussions with representatives from city, regional and state government, various University of Utah programs, and several other local stakeholders all with an interest in growing Salt Lake City's innovation ecosystem. These are the key takeaways from those meetings: Concerns about on-the-ground safety. Housing in the Downtown area is currently inaccessible to a wide range of people. Green/play space is lacking throughout the City and especially in the Depot District and is highly desired. Rio Grande Depot is currently seen as a barrier to development and will require active programming in the future to become less of an obstacle. Ms. Lindsley said other things heard during stakeholder discussions were that biotech and health are potential anchor industries, and there is a citywide shortage in lab, office, and community spaces that would be necessary for an innovation ecosystem. Increased transit access and comfortable bike and pedestrian connections are needed. Important input from the stakeholder sessions is an acknowledgement that the success of the project will be measured in large part by the way it can provide meaningful connections to the West Side, both physically and programmatically. Ms. Lindsley said the second part of this study, which the consultant refers to as the innovation asset assessment, involved evaluating where and how Salt Lake City's innovation assets are currently clustered, both geographically and by sector. She said they identified industry sectors that are most ready for focus and investment in Salt Lake City and identified opportunities in both Life Sciences and Community Health. It was recommended that the Station Center Innovation District focus on these opportunities for developing the district. These are called the programmatic drivers for the Station Center Innovation District. Ms. Lindsley explained that the study provides quite a few examples of opportunities that fall under these two drivers. For Life Sciences, it is recommended to look at research in genetics and the use of robotics in medicine, advancing access to healthcare education, and providing spaces for startups that outgrow incubator space. Under Community Health, recommendations included expanding urban agriculture and local food systems to reduce food insecurity, improving access to nutritious food, and even incorporating preventive health programs on site in the Innovation District. Ms. Lindsley said the third and final part of the study looked at governance and real estate structures for other successful innovation districts which typically involve public private partnerships. The consultant recommended the creation of a new nonprofit entity to govern the district, and the entity would include representatives from the University of Utah, Salt Lake City, and other partners from the community and innovation industry to develop that governance structure. Ms. Lindsley said the project is still in the early stages of planning the governance structure, but one of the first steps will be to execute a partnership agreement that defines the structure and also provides a long-term role for the City in the governance and programming of the district. She said that will help ensure the success of the district and make sure that the public benefits identified are maximized. Ms. Lindsley said innovation districts are run through partnerships and programs, but they need a leader to anchor those programs to the district. HR&A identified the University of Utah is best positioned to act as what they call the programmatic champion of the Station Center Innovation District. The district's success will rely in a lot of ways on leveraging the University’s resources to attract industry partners, developers, and investors. She said some of the resources and benefits that the University would bring as programmatic champion are: 1. A strong reputation in excellence in research and innovation. 2. Proven track record of commercialization pipeline of new company creation and talent retention and attraction. 3. Marketing this partnership with the University would have more impact and attract interest from a wider range of developers than doing this without them. 4. The University has resources that are needed to invest both in people and infrastructure to catalyze activity at Station Center. 5. The project would result in a significant amount of job creation, both direct and indirect, on-site earnings and regional economic output. Ms. Lindsley added that all private development in the Station Center Innovation District would be considered a taxable improvement and subject to property taxes and impact fees. She said the University is currently under contract to purchase about two acres of property located within Station Center. Ms. Ogden said the type of assets and expertise that the University would bring to the table are necessary to create a successful innovation district. She added that staff has heard about how other districts have failed to pair their innovation programming with the physical land planning that is necessary to create a true sense of place, which is the whole ethos behind these districts for a high level of interaction and collaboration between different users. She said some pitfalls include loss of character through the demolition of historic structures, construction of oversized buildings that eliminate sense of human scale and walkability, lack of diversity and building design, and a clear divide between areas with sterile institutional buildings and those containing neighborhood amenities like retail, restaurants, and bars. Ms. Ogden said the RDA had already undertaken steps that will prevent Station Center from falling into a similar trap. This includes the creation of the Station Center Design Guidelines, which will require new development to be compatible with the surrounding districts. The RDA’s support of the rehab of Artspace’s Beehive Brick and City Center buildings, historic warehouse buildings, as well as the stabilization of the historic Salt Lake Mattress Company building, which staff is currently working through the permitting process to get that structure stabilized after it suffered damage in the 2020 earthquake. Ms. Ogden said there are long planned-for streetscape infrastructure and community space improvements, including three new mid walk streets running through the district, the reconstruction of 300 South into a pedestrian-oriented festival street that can be closed to program for community events. She added that when it comes to funding the improvements, the RDA Board has allocated almost $9 million for construction of streets and upgrades. But the disposition strategy will be to identify a funding source for the remaining balance to construct improvements. Ms. Ogden said the Agency views Station Center as a unique opportunity to incorporate a high level of community benefits into one project, and the University has expressed a commitment to these goals as well. She added that it is still in the early stages of determining what the district will look like, but potential public benefits include affordable housing, family-size housing, affordable home and commercial ownership opportunities, subsidized commercial spaces for local businesses and nonprofits, implementation of the community health priorities, equitable opportunities for those not typically engaged in these industry sectors, and programming that provides opportunities for upward mobility to Westside residents. She added that staff would like to set the bar when it comes to sustainable development by utilizing on site renewable energy sources and sustainable stormwater treatment solutions, as well as reducing dependency on cars and encouraging the use of alternative modes of transportation. Ms. Lindsley explained that the RDA plans to exclusively negotiate with University of Utah, which is one of the methods that is provided for in the RDA’s disposition policy when selling land to a nonprofit organization or government entity for a community development or public use. She said the preferred structure is for the University to purchase the RDA property through a fee title sale, and then the University would ground lease property to private developers selected through a competitive request for proposal (RFP) process that the RDA will be involved in along with the University of Utah. The University maintains long term ownership and preserves the innovation district use by ground leasing to end users and being able to then utilize the ground lease structure to fund district programming and maintenance. She explained that if the RDA sold its property to the University at or near fair market value, it would allow the Agency to realize the value of the land upon sale, providing funds for constructing infrastructure improvements and implementing other RDA priorities across other project areas. She said in contrast, if the Agency did a ground lease, the RDA would receive smaller lease payments over time, without the infusion of funds for other priority projects. Ms. Ogden said that although the RDA is proposing selling the property to the University, it is the intention to remain involved as a long-term partner to ensure the success of the district and inclusion of community benefits. She said one of the first steps in this overall partnership process is to execute a partnership agreement between the RDA and the University establishing roles and responsibilities for each entity. She added that it would establish the selected governance structure, protective covenants, and other restrictions to be placed on the properties to ensure that those community benefits are affordability, and it would outline the development review process moving forward. It is expected that the City will have representation within the selected Station Center Governance Entity, and that the RDA will participate in drafting the RFPs to find the developer, the developer selection process, and design review of the selected proposal. Ms. Ogden explained the preliminary timeline for moving this project forward (attached). Questions: Ms. Bandiernha asked if there was a plan for building conservation of existing buildings as it would be an important feature to maintain and keep the identity of the location. Ms. Ogden said that adaptive reuse of any remaining structures is something the RDA wants to encourage. She said it is a National Warehouse Historic District, but unfortunately there are not many old buildings left. She added that the RDA has assisted with the rehabilitation of some of the Artspace structures in the area, and the RDA owns one of the buildings that has not been rehabbed yet, but staff is working to stabilize it structurally so it can be included in this project. Mr. Doughty asked how this project came to the RDA. Ms. Ogden said that the physical land planning component has largely remained the same including the infrastructure, streetscaping, and adaptive reuse of the structures. She said when it comes to the innovation district concept in programming, that was led by the University and once the RDA started engaging in discussions with them, it became the focus for the project. Mr. Bates, Executive Director of Real Estate Administration for the University of Utah, shared the University’s historical desire to create a university node downtown, adding that this innovation center is the potential fruition of a long history of conversations between the University and the City. He said there is huge value in bringing University programming downtown and providing a more natural conduit geographically for those Westside communities to interface directly with the University. He said this would be in addition to a quick and easy transit connection to the campus or employment center that is in Research Park. Ms. O’Grady asked if there have been conversations regarding housing as the development of the business incubation plans have progressed. Mr. Bates said that the University is committed to being a good partner and creating equitable access to housing. He said the University sees this as a critical component for Station Center and with a focus on innovation and wellness and health, plans for Station Center should lead out creatively and innovatively on housing. Mr. Bates added that the University wants to make sure that they are creating opportunities for the entire spectrum of workforce to find a solution for housing in that district. Ms. Bandiernha said western movement from the University is important, and that it is important to have a physical and very intentional connection not only to downtown, but to the true West Side. Mr. Doughty asked about the TRAX line extension down 400 South to Station Center. Ms. Lindsley said that is one of the transportation alternatives identified in the Wasatch Front Regional Council’s long-range plan. Last fall, UTA did a feasibility study of a few downtown alignments for light rail. That feasibility study is complete, and one of the alternatives includes a connection along 400 South through the area between 500 and 600 West and into the intermodal hub on 600 West. B. Project Area Creation Priorities Briefing – Kort Utley, Senior Project Manager Mr. Utley said that RDA staff has been discussing what the project area creation priorities are for the Agency and the Administration, and what areas of the City most need the RDAs attention and investment. He said anytime the RDA is creating a project area, it involves the taxing entity partners like the School District and the County to determine what their priorities and interests are, as well as considering RDA staff resources. Occasionally the RDA is asked by developers to create a project area for their projects, such as the Block 67 project area. Mr. Utley said that the RDA is always thinking about neighborhood revitalization but sometimes project areas are contemplated for other purposes, such as the expansion of the transit system or to construct parking structures. He added that Staff has been examining how to consider project area creation in the context of the current City priorities of equity and sustainability. Mr. Utley said currently there are eight project areas: Northwest Quadrant, North Temple, Depot, Central Business District, State Street, Granary, 9 Line and Stadler Rail, which is a single purpose community reinvestment area. He said in 2023, the Depot District and the Granary District project areas will expire. He said that staff has been considering this internally and there are five areas in the City being discussed in the context of creating a new project area. Mr. Utley said the potential Research Park project area was identified by the RDA Board in 2020 to begin the project area creation process. He said through a RDA Board resolution the boundaries were established and staff is in the process of creating a project area plan, a public benefits analysis, and looking at some of the financial considerations, or tax increment, and how it might be invested within the area. He said the real objective for Research Park is for there to be an innovation hub, like the Station Center item previously discussed at this meeting, but in a different location. The RDA is focused on this notion of incubating businesses so they can then grow and spin off and land somewhere within the City. Mr. Utley said housing is an important part of what is envisioned for Research Park, as well as neighborhood services and making the area more of a neighborhood on its own with open space, trails, and accommodating walking, biking, and transit. He said it would be a powerful partnership between the RDA and the University as the University is a regional asset. He said when the County is considering new project areas and their financial participation, they often look at whether a potential new project area has regional significance, and we believe Research Park certainly does. Mr. Utley said Ballpark is another potential project area the RDA is considering. He said it was a project area years ago for the purpose of constructing the park itself and the neighborhood surrounding the ballpark is located within the State Street project area. He said the purpose of this potential project area would be to strategically redevelop the city owned properties adjacent to the stadium for the purposes of activating that neighborhood, and through that activation, address some of the crime that neighborhood has been experiencing. He added the City has a tremendous history with baseball, and this neighborhood, and the ballpark, could truly benefit from RDA investment. Like Research Park, the ballpark is a regional asset and that could play a role in requesting the County’s participation in this potential new project area. Mr. Utley said then there is the Station Center area which was previously discussed in this meeting, and the RDA objectives for a project area there would be to finish the redevelopment work the RDA has begun there, to get the public infrastructure in place that will establish this as a vibrant place, with sustainability, transit orientation, and rich pedestrian experience. He said housing is a huge part of that vision, along with neighborhood services located within walking distance, adding this is the most transit rich area of the City. The RDA owns approximately 15 acres here, and UTA owns even more than that. He said with the University’s interest in a satellite location and innovation district, this area would be a great location. Mr. Utley said the next potential project area being considered is the area just south of Pioneer Park and centered on the 400 West corridor, which includes the City’s Fleet Block. He said this potential project area would focus on the timely construction of the light rail expansion envisioned for the area, leveraging City, State and Federal funds. The Agency’s priority would be to incentivize affordable housing, neighborhood services via small local businesses and contributing to the development of sustainable, walkable neighborhoods with a rich pedestrian experience. He said one of the advantages with this project area is the inclusion of the Fleet Block which is owned by the City. While the RDA does not own the Fleet Block, it could potentially be involved in the redevelopment of that block and that RDA funds could also be utilized to help with transit planning in the area. Mr. Utley said there is a potential project area related to the S Line expansion, adding that it is unknown at this time where this potential expansion would go. He said the State recently appropriated approximately $12 million for this expansion. It is unclear what the RDA’s role could be, or if there even is one, but Staff wanted to ensure this option was discussed. Mr. Utley said that if RDA staff determined this neighborhood needed RDA investment, staff would have this conversation with both the RDA Board and with RAC. Mr. Utley said there are some questions to be considered with any of these potential project areas, specifically around those that have already been a Project Area and if the RDA should do it again. Ms. O’Grady said she likes the idea of the University concentrating on redeveloping Research Park and involving more residential use intermixed with business and business development, however she does not think that it needs RDA investment to do that. She added that she believes RDA investment would be better used elsewhere, like the Ballpark District which remains an area that needs a lot of attention and focus. She said that where the RDA is, it works and development is being incentivized, and developers are gravitating toward those project areas in a really good way. Mr. Doughty agreed with Ms. O’Grady and expressed surprise that Research Park was included. Mr. Peterson also agreed and said the potential Station Center project area is exciting and could really create a shining example of what can happen with the right kind of focused investment. He commented that a project in Phoenix became a victim of its own success and that it is important to maintain the focus for what the end goal is with that project. Mr. Utley said staff was discussing neighborhood livability and where the private sector isn’t delivering on that. He said this analysis of neighborhood livability can help focus where and what role the RDA can play to improve neighborhoods, adding that is why the RDA does so much with affordable housing. Ms. Hunsaker said that the RDA looks at integrating deed-restricted units as neighborhood change occurs, even at the beginning of a project area when staff is identifying specific needs within the community. She said that the RDA also must look at impacts of that development that are immediately noticeable, for example as property values rise, and developers come in, those naturally occurring affordable units can then flip to market rate relatively quickly. She added it is key to integrate deed- restricted affordable housing as we go. Ms. Bandiernha said she thinks one area that would be worth looking at for a potential new project area is the neighborhoods flanking I-15. She said the focus tends to be the connection between the eastern and western portions of the City, , and fixing specific spots on the connection between downtown and the West Side, adding it is important to consider the North/South direction of I-15 and what to do with it as an element that divides the City. Mr. Peterson asked about the deed restrictions and whether individuals or investors can buy into those projects at below market rates and make themselves instant investors. Ms. Hunsaker said the deed restrictions allow for rents to remain at an affordable level for certain area median incomes (AMI). Those deed restrictions run with the land for 50 years, typically, restricting the rents on those units. She said even if a project with deed restricted units is sold, the deed-restricted affordable units are still restricted to those affordable rents. 3. Approval of the minutes of the April 7, 2021 meeting Ms. O’Grady made a motion to approve the minutes from the April 7, 2021 meeting. Ms. Bandiernha seconded the motion. Upon roll call, the motion passed unanimously. 4. Business None 5. Adjournment There being no further business the meeting was adjourned. Brian Doughty, Chairperson This document along with the digital recording constitute the official minutes of the Redevelopment Advisory Committee held July 7, 2021.