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9/7/2022 - Meeting Minutes MINUTES FROM THE MEETING OF THE REDEVELOPMENT ADVISORY COMMITTEE Wednesday, September 7, 2022 4:00 p.m. 1. Roll Call The following members were present: Brian Doughty, Chairperson Nic Peterson, Member Rosa Bandeirinha, Member Claudia O'Grady, Member Mark Isaac, Member Baxter Reecer, Member Amy Rowland, Member The following members were absent: Mojdeh Sakaki, Vice-Chairperson Also Present: Cara Lindsley, Deputy Director Tracy Tran, Senior Project Manager Austin Taylor, Project Manager Corinne Piazza, Senior Project Manager Kate Werrett, Project Manager Amanda Greenland, Communications and Outreach Manager Kathryn Hackman, Communications and Outreach Coordinator Eric Holmes, Data Manager Allison Parks, Senior City Attorney Felina Lazalde, Office Facilitator II Taylor Anderson Robyn Stine, Office Manager 2. Briefing by the Staff Amanda Greenland welcomed the new members, Baxter Reecer, and Amy Rowland to the Redevelopment Advisory Committee. 3. Approval of the minutes of the June 1,2022 meeting Mr. Peterson made a motion to approve the minutes from the June 1, 2022 meeting. Ms.O'Grady seconded the motion. Upon roll call,the motion passed unanimously. 4. Business A. Housing and Transit Reinvestment Zone(HTRZ)Creation—Tracy Tran and Kate Werrett, Project Managers Kate Werrett, Project Manager provided a briefing on the Housing and Transit Reinvestment Zone Creation to the RAC members. She explained the general State requirements which include: • Property Tax Maximum Increment Participation: 80% • Sales Tax Increment Maximum Participation: 15% • Housing: o At least 10% affordable housing (80%AMI) o Must include a mixture of housing units&bedroom counts • Land Use: 51% residential • Density: average or 50+units/acre • HTRZ Administration Fees: 1% of the HTRZ funds+gap analysis expenses • Application Process: o Governor's Office of Economic Opportunity conducts gap analysis o HTRZ Committee reviews and approves/declines application • If approved,taxing entities are required to participate. Ms.Werrett explained the transit type differences allowed with in the HTRZ regulations. She said HTRZs around Frontrunner stations offer the largest acreage(125)and longest tax increment(TI)term (25 years within a 45- year period); she added that unlike a CRA, the parcels do not need to be connected and the boundary is 1/3 mile from the Frontrunner station. Ms.Werrett said the boundaries from TRAX/S-LINE and BRT is'/4 mile with maximum acreage of 100 and the TI term is 15 years within a 30-year period. She also said that the number of HTRZ in each county is 8 for TRAX, 3 for BRT and is undefined for Frontrunner stations. Ms.Werrett described the difference between an HTRZ and a CRA: HTRZ CRA Creation • HTRZ proposal submitted to Governor's Office of • Survey Resolution adopted by RDA Board Economic Opportunity • Project Area Plan&Budget Public Hearing • HTRZ Committee commissions a gap analysis and • RDA Board adopts Plan&Budget reviews/approves proposal • City adopts ordinance approving the Plan&Budget Taxing • Required taxing entity participation as agreed to by • Taxing entities may opt out of participation Entities the HTRZ Committee . Participation is negotiated and established with interlocal agreements Tax • Participation Rate: up to 80%of property tax • Participation rate is as negotiated. Increment increment . Typically, no sales tax participation • Up to 15%of state sales tax contributed to the Transit Transportation Investment Fund Ms.Werrett said the HTRZ Act 63N-3-607 details how the funds may be used to pay for a portion of the costs associated with development including the following: • Income targeted housing costs • Structured parking • Enhanced development costs • Horizontal and Vertical construction costs • Property acquisition • Public infrastructure • HTRZ Administration including the State's gap analysis Ms.Werrett said the RDA Board liked the idea of using the funds for targeted housing and public infrastructure. She explained the city and state objectives for HTRZ's, including increased public transit utilization, increase in housing, including affordable and air quality improvement among others(see attached). Ms.Werrett shared potential HTRZ locations that RDA staff have identified: • Intermodal Hub o Station Center Project o Green Loop o First and Last Mile Improvements o East-West Connectivity • 650 South Main TRAX o Grand Boulevards o Public Right-of-Way& Infrastructure o Green Loop • 900 South 200 West Granary TRAX o Granary Project Area o Fleet Block o Green Loop o Grand Boulevards o Public Right-of-Way& Infrastructure o Support TRAX Extension o Developer Requests: ■ Public Right-of-Way& Infrastructure Improvements ■ Affordable Housing ■ Parking Garages • 200 West 1300 South (Ballpark)TRAX o Redevelopment of city-owned parcels o Pedestrian Safety Enhancements&Activation • Sugar House S-Line(Fairmont or Sugarmont Stations) o Support Transit Extension o Affordable Housing o Developer Requests: ■ Housing Project Support Ms.Werrett said that the creation of an HTRZ is something that is desirable across the board but ensuring it is done in an equitable manner is very important. She explained that RDA staff plan to release a Request for Information (RFI)for different areas to allow developers, property owners,and stakeholders to submit their ideas for their properties. She added that should a developer submit their idea or plans, Staff could then include those plans in the application. Ms. Werrett said that when the application is submitted,the income staff reports as potential revenue must be as accurate as possible because it creates a cap on how much can be collected. Next steps include releasing the RFI and submitting proposals to the state. B. Accessory Dwelling Unit Financing Program—Austin Taylor, Project Manager Austin Taylor, Project Manager, presented the proposed RDA Accessory Dwelling Unit(ADU) Financing Program to the Committee. He explained the goals of this program which include increase the supply of naturally affordable rental housing, increase density in low-density neighborhoods, provide low-to-moderate income homeowners in formerly redlined areas a wealth building opportunity and increase neighborhood stability and investment. Mr. Taylor said that Agency staff is looking to launch an ADU pilot program in the 9-Line Project Area for a variety of reasons including, but not limited to: • Historic redlining • $232K average home values • $48k median household income • 8,000 square foot median lot size • 89%of residential land zoned R1 • 4.1 average family size He added that Salt Lake County said if the Agency focused on this area,creating a program within five years, they would increase their tax increment participation. Mr. Taylor said some of the challenges include zoning restrictions such at setbacks, maximum ADU size, height limit, limited to single family homes and conditional use permit. He added that construction costs are between $100,000 and$250,000 with a 15% year-on-year increase, and financing options are limited. Mr. Taylor explained the process the Agency staff have taken to date including stakeholder interviews, financial program surveys,organizing city-wide ADU task force, participating in local and national ADU-related discussions and drafting the pilot project RFQ. Mr.Taylor said the program preferences the Agency will include in the RFQ are as follows: • Loans or grants • Landlord training and tenant screening • Attached and detached ADUs • Cost-cutting strategies • Compliance monitoring • Affordability for tenants and owners Discussion • Ms. O'Grady confirmed that these units would be restricted from short term, overnight rentals. • Ms. O'Grady said she would advocate for deed restriction for affordability for a specific length of time, in exchange for cheap money. • Ms. Rowland confirmed that the owner is required to occupy the property. • Mr. Baxter said the goal to prevent people from being priced out of where they live is ambitious and suggested looking into financing options that work with prefab ADUs. • Mr. Peterson asked if there is a variance process on the size of the ADU. Mr. Taylor said that Planning Commission is looking into establishing a maximum size of 800 square foot rather than being tied to the size of the main house. • Mr. Peterson recommended using social media to reach out about this program and get people engaged. • Mr. Baxter suggested reaching out to utility companies regarding an incentive partnership. • Mr. Doughty asked whether it's been investigated how much property tax would increase with an ADU on site. Mr. Taylor said he reached out to an appraiser who said average property values will increase $100,000 to$150,000 and property tax would increase approximately$1,000 per year. 5. Adjournment There being no further business the meeting was adjourned. xn%e LGLGL,It 6I Oln DOUght Teb _2023 2b HST) Brian Doughty, Chairperson This document along with the digital recording constitute the official minutes of the Redevelopment Advisory Committee held September 7,2022. 2022-09-07 RAC Minutes Final Final Audit Report 2023-02-06 Created: 2023-02-06 By: Robyn Stine(robyn.stine@slcgov.com) Status: Signed Transaction ID: CBJCHBCAABAAeJxOk-zaPbsYWg9lhslrC-pQ8gtNNU8S "2022-09-07 RAC Minutes Final" History Document created by Robyn Stine (robyn.stine@slcgov.com) 2023-02-06-7:24:51 PM GMT Document emailed to brian.doughty@me.com for signature 2023-02-06-7:25:14 PM GMT Email viewed by brian.doughty@me.com 2023-02-06-7:25:46 PM GMT Signer brian.doughty@me.com entered name at signing as Brian Doughty 2023-02-06-7:26:03 PM GMT ;., Document e-signed by Brian Doughty (brian.doughty@me.com) Signature Date:2023-02-06-7:26:05 PM GMT-Time Source:server ® Agreement completed. 2023-02-06-7:26:05 PM GMT Powered by F Adobe lC /r' Acrobat Sign