8/4/2021 - Meeting Materials REGULAR MEETING OF THE
REDEVELOPMENT ADVISORY COMMITTEE
Wednesday, August 4, 2021
4:00 p.m.
To access and participate in the meeting please visit
https://saltlakecity.webex.com/saltlakecity/j.php?MTID=md0b675914890e452242fa27c02f4c7c8
Meeting Password: wiV9PwtAq83
I, Brian Doughty, Chair of the Redevelopment Advisory Committee, hereby determine that conducting the Redevelopment
Advisory Committee meeting at an anchor location presents a substantial risk to the health and safety of those who may be
present, and that the City and County building has been ordered closed to the public for health and safety reasons.
Amended Agenda
1. Roll Call
2. Briefing by the Staff
A. Sustainability Policy Update— Lauren Parisi, Project Manager
Staff will provide a briefing on the draft RDA Sustainability Policy.
B. 2022 Budget Update— Danny Walz, Director, Tammy Hunsaker, Deputy Director and Erin Cunningham,
Financial Analyst
Staff will provide an update on the FY2022 Budget.
3. Approval of the minutes
A. Review and Approval of June 2, 2021 RAC Minutes
RAC members will review the June 2, 2021 meeting minutes and consider for approval.
4. Business
None
5. Adjournment
People with disabilities may make requests for reasonable accommodation no later than 48 hours in advance in order to
attend this Redevelopment Advisory Committee. Accommodations may include alternate formats, interpreters, and other
auxiliary aids. This is an accessible facility. For questions, requests, or additional information, please contact the RDA at
801-535-7240.
,`,\..,1 'Si,,�'
-s 4
MAYOR ERIN MENDENHALL 9w� DANNY WALZ
Executive Director = — - Director
_T llCi is e
; 4.
,,,,,C:• r T-- ,,`,
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: July 30,2021
TO: Redevelopment Advisory Committee(RAC)
PREPARED BY: Lauren Parisi and Cara Lindsley,RDA Project Managers
RE: Sustainable Development Policy
REQUESTED ACTION: Provide feedback and make a recommendation regarding the proposed
sustainable development policy
POLICY ITEM: RDA project-area-wide sustainable development policy
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City("RDA")recognizes the
great impact development has on local air quality and is working to promote smarter,more sustainable
growth across the city and to become a model for the state.Under the current RDA loan program,projects
that meet certain sustainable building certification standards receive a .5%interest rate reduction.
However, achieving City and the RDA climate goals will require a sustainable development policy that
applies to most all RDA-funded projects.
The RDA's proposed sustainable development policy can be broken down into two categories:
1)Threshold Sustainability Measures that are required of all new-construction projects and other
building projects that receive a certain level of RDA funding; and,
2)RDA Program-Specific Sustainability Measures that are either required or are used to further
incentivize sustainability in projects participating in RDA loan programs,the tax increment
reimbursement program and RDA land dispositions.
Threshold Sustainability Measures require sustainable building design and efficient energy systems for
projects receiving over$400,000 in RDA funding, and emission-free operation for projects receiving over
$900,000 in RDA funding. Program-Specific Sustainability Measures require 100% of a building's
electricity to be supplied with off-site or on-site renewable energy, depending on the RDA program, and
net-zero certification.
The attached draft sustainable development policy is proposed for the Redevelopment Advisory
Committee's review.
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
ANALYSIS: According to 2020 U.S. Census data,Utah was the fastest-growing state in the nation from
2010 to 2020, at 18.4%. Much like the State, Salt Lake City is also experiencing record growth. This
growth comes at a time when our community continues to face air quality challenges and the detrimental
impacts of climate change including increased temperatures, changes in water systems and extreme
weather events. In Salt Lake City, electricity consumption accounts for 50.4%of greenhouse gas
emissions and natural gas combustion accounts for 26.3%. (Climate Positive 2040,2016). Both sources
are primarily consumed in buildings and together account for three quarters of all greenhouse emissions
within the city—much more than what is produced by the transportation sector. Electricity, and building
energy in general, offer the greatest opportunity for emissions reductions (SLC Community Carbon
Footprint,2010).
The RDA recognizes the great impact development has on local air 2O15 Carbon Footprint
m7 COIe 4,769,171
quality and is working to promote smarter,more sustainable growth
1% Emissions Sources,Son Lake Lity
across the city and become a model for the state.Under the current `
t � ®Manon fuels
RDA loan program,projects that meet certain sustainable �`;: -, i + D�e1
development certification standards receive a.5% interest rate tii •E'"'"`"'
•Ga,.,,me
reduction;however, in order to meet both the City's and the RDA's �--=— •N,,,,a,gas
climate goals, sustainable development strategies must be considered •Other(annpnsud natural gas.
propane)
for all RDA-funded projects. Similar organizations to the RDA across
the U.S.require sustainable technology to be incorporated in all
government-funded projects. Thus,the attached draft sustainable
development policy has been proposed for the Redevelopment Advisory Committee's review.
City Goals—In 2016,the City passed a Mayor-Council joint resolution(updated in 2019)to achieve the
following sustainability goals derived from the Climate Positive 2040 plan:
1. 100 X 2030: 100%Renewable Energy for Community Electricity Supply by 2030
2. 80 X 2040: 80%Reduction in Community Greenhouse Gas Emissions by 2040, Compared to
2009 Baseline (Goal includes at least 50%reduction in community footprint by 2030)
RDA Target—Additionally, as directed by Mayor Mendenhall,the RDA will target:
• Emission-Free Buildings by 2023
This means that the RDA will support the development and rehabilitation of buildings without on-site
fossil fuel combustion(i.e.propane,natural gas)that receive a building permit from 2023 onwards.
With these goals in mind,the overarching purpose of the RDA's sustainable development policy,once
adopted, is to promote a built environment that incorporates sustainable building practices and
technologies to reduce building-related greenhouse gas emissions, improve local air quality,preserve
natural resources and enhance community resiliency.
DRAFT Sustainable Development Policy—The RDA's sustainable development policy can be broken
down into two categories, including 1)Threshold Sustainability Measures that are required of all new
construction projects and other building projects that receive a certain level of RDA funding, and 2)RDA
Program-Specific Sustainability Measures that are either required or are used to further incentivize
sustainability in projects participating in RDA loan programs,the tax increment reimbursement program,
and RDA-owned land dispositions.
2
To allow time for developers to meet all threshold requirements,this policy will apply to all projects
receiving a building permit on or after January 1,2023,except for projects that receive a tax increment
reimbursement agreement for which this policy becomes effective immediately. Projects seeking an RDA
loan that meet the Threshold Sustainability Measures before January 1,2023, shall earn a 1%interest rate
reduction.
1. Threshold Sustainability Measures:
Enhanced Energy Performance—
• Applicable Projects—All new construction projects and building projects that receive
over$400,000 in RDA funds,no matter the RDA program.
• Requirement—Projects shall be designed to achieve a"Designed to Earn ENERGY
STAR" score of 90 and above or a Design Target Site EUI value corresponding with
such a score that is generated by the Designed to Earn ENERGY STAR tool. Once the
building is operating,projects shall also participate in Salt Lake City Sustainability's
Elevate Buildings program and submit building operation data to the city on an annual
basis.
• Goal of Standard—This first"level"of the threshold sustainability measures has been
proposed to encourage RDA-funded projects to take a step towards more sustainable
building design through the incorporation of efficient energy systems(i.e. heating,
cooling,lighting, appliances, insulation, etc.). An ENERGY STAR score and energy use
intensity(EUI) are well-known industry metrics that applicants can calculate for free with
the Portfolio Manager tool from ENERGY STAR;however, some energy modeling will
be required to input into the Portfolio Manager tool. A building with an ENERGY STAR
score of 75 and above indicates that it performs in the top 25%of similar building types
nationwide,which some building codes require. Certain building types may not qualify
for the"Designed to Earn ENERGY STAR,"which is why achieving a similar EUI target
is an alternative option.
The City Sustainability Department's Elevate Buildings program will be utilized to
ensure RDA projects maintain projected ENERGY STAR scores. This program is
currently in place and requires all qualifying commercial buildings 25,000 square feet
and larger to submit ENERGY STAR data to the city on an annual basis. Per the RDA's
proposed sustainable development policy,if the project does not meet an ENERGY
STAR score within five(5)points of what was originally projected within two years of
receiving a certificate of occupancy,building updates will be required aimed at achieving
the target score.
Emission-Free Building Operation—
• Applicable Projects—All new construction projects and building projects that receive
over$900,000 in RDA funds,no matter the RDA program.
• Requirement—Projects shall be designed to operate without on-site fossil fuel
combustion(i.e.,propane,natural gas).
• Goal of Standard—This second"level"of the threshold sustainability measures aims to
hit the RDA's target of supporting emission-free buildings by 2023 and achieve the
City's overarching climate goals of increasing the renewable energy supply and reducing
greenhouse gas emissions. This measure would eliminate the use of natural gas in
3
buildings for heating and cooking.Natural gas contributes to 26.3%of Salt Lake City's
greenhouse gas emissions (Climate Positive 2040,2016). While the majority of today's
electricity supply is generated from fossil fuels,the intent of building electrification is to
prepare buildings for carbon-free operation when the electricity supply is entirely
powered by renewable sources such as solar,wind and geothermal energy.
2. RDA Program Specific Sustainability Measures: To be eligible for certain RDA incentive
programs or to receive larger incentives, "Off-Site Renewables"or"On-Site Renewables"will be
required in addition to the Threshold Sustainability Measures as follows:
RDA Program Sustainability Measures—
Requirement or Incentive as Indicated
Tax Increment Reimbursement Program
—applicable to tax increment • On-Site Net Zero building status is required
reimbursements over$500,000
• Off-Site Net Zero is required
• On-Site Net Zero will receive higher rankings
Land Dispositions
for competitively marketed land dispositions
• Off-Site Net Zero will receive interest rate
RDA Loan Programs—applicable to any reduction of 1%
RDA loan • On-Site Net Zero will receive interest rate
reduction of 2%
Off-Site Net Zero—Because the electrical grid is not sourced by 100%renewable energy,
projects can meet this measure by participating in available renewable energy utility
programs/tariffs. These programs are sometimes referred to as"green tariffs."A green tariff is a
price structure, or an electricity rate,offered by a local utility that allows eligible customers to
source up to 100%of their electricity from renewable resources. Here in Utah,the Blue Sky and
Subscriber Solar green tariffs are in place,but more programs are on the horizon,including Utah
100 Communities.
On-Site Net Zero—For projects that receive larger incentives,higher sustainability measures
above and beyond the Threshold Measures will be required. This requirement promotes the
incorporation of on-site renewable energy such as on-site solar. RDA staff acknowledges that
some properties may not have the capacity to supply 100%on-site renewable energy for various
reasons and administrative modifications to this requirement can be approved by staff, subject to
verification. Certifications will be required to achieve"Off-Site Net Zero" status as the RDA
finds value in the technical expertise and levels of monitoring that these certifications include.A
limited amount of funding will be made available for certification fees during the first year that
this policy is in place.
Compliance—To meet the Threshold Enhanced Energy Performance requirement, a Statement of Energy
Design Intent shall be submitted verifying an ENERGY STAR score of 90 and above. To meet the
Threshold Emission-Free Building Operation standard,a letter shall be submitted from a licensed
architect or engineer verifying the absence of on-site fossil fuel combustion and description the proposed
energy system.
4
To meet the Off-Site Net Zero requirement, a utility bill verifying participation in a legitimate renewable
energy utility tariff program shall be submitted within three months of the building having received its
certificate of occupancy. To meet the On-Site Net Zero requirement,third-party certification is required
as indicated within Table 2 of the sustainable development policy. Certification/building code options
include: 2021 IECC Appendix CC Zero Energy Commercial Building Provisions;Passive House;U.S.
Green Building Council LEED Zero; and International Living Future Institute.
Exceptions—The RDA Board of Directors,by a majority vote of those present,may waive requirements
or make exceptions to the foregoing criteria and procedures with a finding that the RDA's mission and
values will be furthered by such waiver or exception.
Community Engagement—Three roundtable discussions were held with local stakeholders on May 25th
and 26t. Participating stakeholders had backgrounds that included engineering, architecture,
development, finance,construction management, and affordable housing.Notes and key takeaways from
these meetings are provided in Attachment B. The most substantive change to the draft policy resulting
from stakeholder engagement was to eliminate the"On-Site Net Zero"requirement or participation in
utility tariffs as a threshold,and instead,make it an optional RDA program requirement.
Policy Questions—
1. The Threshold Sustainability Measures(`a' & `b')will apply to both new construction and
rehabilitation projects. Because there is some inherent sustainability associated with
rehabilitation projects, should these requirements only apply to new construction?
2. This policy will also apply to all new-construction affordable housing projects. The majority
of housing projects that the RDA supports include some affordable housing. However, as the
development of more affordable housing is a high priority for the City and the RDA, should
certain administrative exceptions to this policy be made for affordable housing projects?
3. Should funding be made available to supplement the cost of sustainable certification fees to
remove a barrier to be able to comply with this policy?
Attachments:
• Attachment A: RDA Sustainable Development Policy Draft
• Attachment B: Notes from Professional Roundtable Discussions
5
Attachment A: RDA Sustainable Development Policy Draft
6
#9ofv, SLCRDA
AK6
The Redevelopment Agency of Salt Lake City
Sustainable Development Policy
1. Purpose: The purpose of the RDA sustainable development policy is to promote a built
environment that incorporates sustainable building practices and technologies to reduce building-
related greenhouse gas emissions, improve local air quality, preserve natural resources and
enhance community resiliency.
2. Threshold Requirements:*
a. Enhanced Energy Performance -All new construction building projects and building
projects that receive over four hundred thousand dollars ($400,000) in RDA funding shall
be designed to achieve a "Designed to Earn ENERGY STAR" score of 90 or higher or a
Design Target Site Energy Use Intensity (EUI) value corresponding with such a score that
is generated by the Designed to Earn ENERGY STAR tool and participate in the City
Sustainability Department's Elevate Buildings Program. The EUI and ENERGY STAR
targets shall be based on ENERGY STAR or comparable source.'
b. Emission-Free Building Operation - In addition to meeting the Threshold Requirement
for enhanced energy performance, all new construction building projects and building
projects that receive over nine hundred thousand dollars ($900,000) or more in RDA
funding shall also be designed to operate without on-site fossil fuel combustion (i.e.,
propane, natural gas).2
*Threshold requirements must be met as described above for all projects that receive a building permit on or
after January 1, 2023, except for projects that receive a tax increment reimbursement agreement for which
this policy becomes effective immediately. Projects receiving a loan that meet the threshold requirements
before January 1, 2023,shall earn a 1%interest rate reduction.
3. RDA Program Requirements: Sustainable development requirements and/or incentives beyond
the threshold requirements are determined by the applicable RDA program as listed in Table 1
below. If an RDA program is not listed, no further sustainability measures will be required beyond
the threshold requirements.
1See`Designed to Earn the ENERGY STAR'
program:https://www.energystar.gov/buildings/resources topic/commercial new construction/achieve designed earn energy star
2 Projects may utilize the All-Electric provisions of the New Building Institute's Building Decarbonization Code or comparable standard.See:
https://newbuildings.orglresource/building-decarbonization-code/
TABLE 1:
RDA Program Sustainability Measures—
Requirement or Incentive as Indicated
Tax Increment Reimbursement Program
(TIRA) over$500,000 • On-Site Net Zero building status is required
• Off-Site Net Zero is required
Land Dispositions • On-Site Net Zero will receive higher rankings for
competitively marketed projects
• Off-Site Net Zero will receive interest rate reduction
RDA Loan Programs—applicable to any of 1%
RDA loan* • On-Site Net Zero will receive interest rate reduction
of 2%
* Projects are eligible for one sustainability-related interest rate reduction but may qualify for additional
public benefit reductions as described in applicable loan program policies.
c. RDA Program Sustainability Measures
i. Off-Site Net Zero -To be eligible for the Off-Site Net Zero incentives, projects
must meet the Threshold Requirements and also supply 100% of the building's
electricity needs with renewable energy. Available utility-sponsored renewable
electricity programs/tariffs include the Blue Sky or Subscriber Solar programs.
ii. On-Site Net Zero -To be eligible for the On-site Net Zero incentives, projects
must meet the Threshold Requirements and also supply 100% of the building's
electricity needs with renewable energy with as much on-site solar energy
generation as the site will reasonably/cost effectively allow. Any remaining
renewable energy generation that can't be accommodated on site must be
procured through off-site renewable energy generation, including utility-sponsored
renewable electricity programs or tariffs. Projects must meet the 2021 IECC Zero
Energy Appendix standards or obtain a third-party certification to achieve On-Site
Net Zero status.
Examples of code-based and third-party certifications for net zero buildings are
included in Table 2. Alternative code-based or third-party certifications not listed in
Table 2 will be considered on a case-by-case basis.
TABLE 2: Examples of Code-based or Third-Party Certifications for Net Zero Buildings
EXAMPLE CODE OFF-SITE NET ON-SITE NET ZERO
COMPLIANCE OR ZERO INCENTIVE INCENTIVE BUILDNG TYPE INTENT
CERTIFICATION (1%REDUCTION) (2%REDUCTION)
Code-Based Pathway for Net Zero
2021 IECC Meets required EUI Meets required EUI Any building subject to This is a code-based
Appendix CC Zero targets and 100%of targets and includes the IECC Commercial performance approach to
Energy renewable electricity as much onsite solar provision(generally achieving net zero energy in
Commercial is supplied by as can be cost- 4+stories) a project that is determined
Building offsite sources effectively installed, through compliance with the
Provisions(LINK) approved in the with the remaining Zero Energy Commercial
2021 IECC renewable electricity code language rather than a
Appendix CC.
supplied by offsite third-party certification.
sources approved in
the 2021 IECC
Appendix CC.
Third-Party Certification Pathways for Net Zero
Passive House Passive House with Passive House with Any building type This approach adds a
(LINK) 100%offsite as much onsite solar renewable energy
renewable energy as can be cost- requirement to a project that
effectively installed, uses Passive House
with the remaining strategies for ultra-low
renewable electricity energy use.
supplied by offsite
sources approved in
the 2021 IECC
Appendix CC.
Enterprise Green EGC Standards 5.4 EGC Standards 5.4 Any affordable Enterprise Green
Communities (Zero Energy)with (Zero Energy)and housing project Communities is a state-and
Certification Plus offsite and-5.5b 5.5b(Zero Carbon). nationally-recognized
2020(LINK) (Zero Carbon) Projects must include affordable housing
as much onsite solar sustainability certification.
as can be cost- The 2020 criteria awards
effectively installed, increased points for projects
with the remaining that achieve energy-related
renewable electricity innovations, including Zero
supplied by offsite Energy status(100%on or
sources approved in off-site)and Zero Carbon
the 2021 IECC status(all-electric).
Appendix CC. Enterprise Green
Communities is recognized
in the Utah Housing
Corporation's Qualified
Allocation Plan for Low
Income Housing Tax
Credits.
U.S.Green LEED Zero Energy LEED Zero Energy Any building with This approach utilizes the
Building Council certification(building certification(building LEED NC or EB+O U.S.Green Building
LEED Zero(LINK) with 100%of source with 100%of source certification,or Council's LEED Zero
energy supplied or energy supplied or seeking these program for projects already
offset with offset with renewable certifications.
renewable energy energy over 12- certified as LEED or
over 12-month month period—with seeking LEED certification.
period at least 50%of
(LEED Zero Carbon renewable energy
also qualifies) being located on-
site)
(LEED Zero Carbon
also qualifies)
International N/A Zero Energy Any building type This standard requires the
Living Future certification(LINK) elimination of on-site
Institute combustion and 100%on-
site renewable energy.
Zero Carbon(LINK) Any building type This standard allows off-site
renewable energy in certain
situations.
4. Project Compliance:All projects must verify compliance with Threshold and/or RDA Program
Sustainability Measures as follows:
a. Threshold Requirements
i. Enhanced Energy Performance—A Statement of Energy Design Intent(SEDI)3
verifying that the project has been designed to meet a Designed to Earn ENERGY
STAR target of 90 or higher or a corresponding EUI target must be submitted to
the RDA.A year after the building has received a certificate of occupancy (CofO),
the project must begin to participate in the City Sustainability Department's Elevate
Buildings Program4 and submit building operation data on an annual basis. If the
project does not meet an ENERGY STAR score within five (5) points of what was
originally projected within two (2) years of receiving CofO, building updates will be
required aimed at achieving the target score.
ii. Emission-Free Building Operation—A letter from a licensed architect or
engineer verifying that the project has been designed without on-site fossil fuel
combustion and describing the energy system(s) utilized must be submitted to the
RDA.
3 An ENERGY STAR Statement of Energy Design Intent(SEDI)document includes the Design Target ENERGY STAR Score and the Design
Target Site EUI.Energy modeling will be necessary to estimate the annual energy consumption of a building,which is required to input into the
ENERGY STAR Portfolio Manager and complete the SEDI.An example SEDI document can be accessed
here:https://www.energystar.gov/sites/default/files/tools/SEDI_Sample%281%29.pdf?f4b0-a781
4 See'Elevate Buildings'Program:https://www.slc.gov/sustainability/elevate-buildings/
b. RDA Program Sustainability Measures
i. Off-Site Net Zero Building Incentives -An energy bill verifying participation in
available renewable energy utility tariff program must be submitted to the RDA
within three (3) months of receiving a CofO.
iii. On-Site Net Zero Building Incentives— Projects must meet the 2021 IECC Zero
Energy Appendix standards (verified in a letter by a licensed architect or engineer)
or obtain a third-party certification to submit to the RDA as indicated within Table
2. Where certifications are not issued until after the building has been put into
service, a letter from a licensed architect or engineer verifying that the building has
been designed to meet certification standards and noting the anticipated
certification date must be submitted to the RDA. The completed certification
checklist must also be attached to the letter.
For On-Site Net Zero projects that have limited solar access, or insufficient
building/roof/site space to locate adequate on-site solar generation (including
space for solar canopies), an onsite solar generation assessment must be
performed and the maximum reasonable on-site generation with a 20-year or
shorter simple payback must be included in the project.A letter from a certified
solar designer illustrating the maximum achievable on-site solar generation must
be submitted for RDA approval.
5. Exceptions: The RDA Board of Directors, by a majority vote of those present, may waive
requirements or make exceptions to the foregoing criteria and procedures with a finding that the
RDA's mission and values will be furthered by such waiver or exception. RDA staff will prepare a
written recommendation and statement regarding the waiver or exception. The statement will be
placed in the project file.
Attachment B: Notes from Professional Roundtable Discussions
Stakeholder Roundtable Feedback Summary
On May 25th and 26th 2021,the Redevelopment Agency of Salt Lake City(RDA),Utah Clean Energy,and
the Salt Lake City Sustainability Department presented the updated RDA Sustainability Policy draft and
secured feedback from 30 builders,developers, engineers, and architects. All three meetings were held
virtually and utilized Mentimeter software to survey and collect feedback from local stakeholders.
Polling results:
• 21 stakeholders view buildings as an important opportunity towards improving air quality
and reducing emissions in Utah;None selected"No"
• On a scale of 1-5 (1 low; 5 _ _
high), stakeholders selected an average of
3.5 when asked where building electrification
ranks relative to other energy and 741k
decarbonization steps(general efficiency, _ T
electric vehicles, etc.) for your a
company/organization.
• After reviewing the proposed updates,we ii—Ci.:7_2411
received the following
results when stakeholders were asked if their ,_- . - • . •
company/organization would be more likely or Figure 1-Screersnor of thehRtrol Stakeholder Roundtat e
less likely to utilize RDA programs and tools: Discussion on ",ov 25,2021
O 6 more likely
O 4 less likely
O 9 unsure
O 11 did not respond
Key Takeaways from the Open Discussion:
Supportive Feedback from Stakeholders
• "As developers, this will help contribute to improved energy use and air quality."
• "An all-electric future will help Utah meet federal air quality standards. "
• "As designers, we get excited about these ideas, but it can be difficult to get developers to
adopt these practices. ---this policy and the incentives that it provides help owners get on
board"
• "This kind of policy provides a foundation to spur more sustainable develop, and helps
drive uptake of new technologies, which helps to drive down costs of new technologies."
Feedback and RDA Responses
The following updates were made to the Sustainable development policy draft utilizing the
valuable stakeholder feedback provided during the roundtable discussions:
"I think we all acknowledge that high performance buildings are a good way to reduce energy use. When
the people who are responsible for ongoing operating costs they make the decision to create a high
performance building. The breakdown occurs when the people who pay for the development costs are not
the ones paying the long term operating costs they frequently select lower upfront costs. We need to find a
way to incentivize the decision to build the better buildings."-Stakeholder
• This project helps can help shift away from business as usual development and
demonstrates the need go above building codes and energy modeling
"There needs to be a component of the program that verifies the energy performance for the projects that
receive incentives or funding"
• RDA-supported projects will report a project's actual energy performance data through
Salt Lake City's Elevate Buildings program, and penalties are being considered if buildings
don't meet the building energy performance targets
"Consider reducing the threshold to avoid developers from submitting a$999,999 project"
• RDA Response -Decreased the threshold amounts to$400k and$900k from$500k and
$1,000,000
"25%better EUI than median might not be ambitious enough. How does this compare to 2018 IECC?
2021 IECC? To ENERGY STAR?"
• Increase EUI target to 30%better than the median or an Energy Star Score of 80
"There is limited capacity to participate in utility renewable energy programs (e.g. Subscriber Solar), not
to mention it will be difficult to require tenants to participate in the programs"
• Remove the requirement for projects to participate in utility renewable energy
programs/tariffs
"The most beneficial support would be an RDA employee walking developers through the process to
minimize the burden/hours working through the program"-Stakeholder
• Consider allocating a portion of funds to provide technical assistance to project
applicants
"I've found developers typically have a process which works for them and provides an expected ROI.
Adding more time to the process may not be ideal even with the added financial benefit."
"Align the policy change with other incentive programs to encourage competition."
• RDA will leverage and align the policy with utility-sponsored rebate programs for
commercial and multifamily buildings to provide financial incentives and technical support
for project applicants.
"Net-zero certification is a lengthy process with multiple cost angles. If that was something the city
could subsidize or provide assistance somehow that would very much help"
• The RDA may allocate funding from its budget to help pay for net-zero energy buildings
Additional Sample Roundtable Feedback:
"There needs to be a component of the program that verifies the performance for the projects that receive
incentives or funding."
"Until off-site renewable resources are available,the metric may need to read on-site emissions free."
"Not a developer but I would think the rate reduction would be compelling. As a designer, introducing
the opportunity too explore the possibilities will open up more future opportunities in other places"
"The most beneficial support would be an RDA employee walking developers through the process to
minimize the burden/hours working through the program."
Perhaps consider tying energy use reduction to an"improvement on code requirements" to maintain
flexibility.
"Agree with the need and benefit associated with case studies. Is there adequate incentive for developers
and design teams to engage in case studies from a cost/time perspective?
"Has there been any cost/benefit analysis done to help developers decide if they want to pursue these
incentives?"
„,„ ,,,,,''%
� L
)o°
y, r/z/,-7
MAYOR ERIN MENDENHALL 4 10 ? R• ” _ DANNY WALZ
Executive Director °� � _ Director
1-17
ll5v'v
1.
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: July 30, 2021
PREPARED BY: Danny Walz, Director; Tammy Hunsaker, Deputy Director; Erin
Cunningham, Financial Analyst
RE: Fiscal Year 22 Budget Overview
REQUESTED ACTION: Briefing
POLICY ITEM: Budget
BUDGET IMPACTS: FY 22 Budget of—$61.9 Million
EXECUTIVE SUMMARY: The Fiscal Year 22 ("FY22")Budget for the Redevelopment Agency of
Salt Lake City("RDA") includes tax increment spending in all project areas for projects,loan funds, as
well as department administration. The total FY 22 Budget is $61.9 million and includes revenue from tax
increment, loan proceeds,parking garage and commercial space leases, interest income,and private
donations for the Eccles Theater. The largest non-donation source of revenue is tax increment,which will
generate $37.2 million in FY 22 from ten active project areas(up from$33m in FY 21). The FY 22
Budget was adopted by the RDA Board in June of 2021 and runs from July 1,2021 through June 30,
2022.
ANALYSIS & ISSUES: At the August 4,2021 meeting of the Redevelopment Advisory Committee
("RAC"),RDA staff will present a budget overview for FY 22,that includes highlights of recently
completed projects,new budget priority projects,new programs,tax increment revenue trends, and
expenditures for each fund. The budget includes funding for new programs and initiatives that are
intended to better target resources to equity and sustainability activities,as follows:
• Storefront and Commercial Revitalization Programs:
To better leverage resources,target community needs, support smaller-scale projects,and
facilitate anti-displacement strategies,the RDA is working on proposed revisions to the RDA
Loan Program and the development of a new Storefront Activation Program. It is envisioned that
revisions to the RDA Loan Program will provide for the targeting of project-specific needs,
including small-scale projects,tenant improvements, and the revitalization of
existing/underutilized buildings. The intent of the Storefront Activation Program is to facilitate
the occupancy of ground-floor commercial space by local and underrepresented businesses.
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
• Sustainability Technical Assistance Program:
A new program to assist developers with implementing heightened sustainability standards that
will increase resiliency and reduce negative impacts on the environment. Funding will be utilized
to assist developers in performing sustainability activities,whether through direct funding to
developers or through RDA-led trainings.Activities could include energy modeling,trainings by
technical experts, and technical assistance for projects to acquire sustainability certifications.
• Cultural&Community Initiative Program:
A new program to reinforce public arts and cultural programming by supporting community
organizations in better carrying out their missions or projects. The program is intended to be
similar to the"Lighter, Quicker, Cheaper"model by incentivizing either small small-scale capital
projects and/or capacity building. Projects could include building improvements,placemaking
projects, community engagement efforts,and feasibility/planning studies. Eligible projects would
need to demonstrate community involvement and support for the project.
PREVIOUS BOARD ACTION:
• June 2021: The Board adopted the FY 22 Annual Implementation Budget.
MINUTES
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 1-15. 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 1-15 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.