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Home My WebLink About02/12/2025 - Meeting Materials MEETING OF THE COMMUNITY REINVESTMENT AGENCY FINANCE COMMITTEE Wednesday, February 12, 2025 2:00 p.m. 451 S State Street Room 118 Salt Lake City, UT 84111 The Community Reinvestment Agency (CRA) Finance Committee meeting will be a hybrid meeting which enables people to join remotely or in-person to listen to the meeting. To access the electronic meeting please visit: https://us02web.zoom.us/'/86285237689?pwd=EONfze98g H mO26vBa9iXTVQmgC9'uu.1 Revised Agenda 1. Roll Call 2. Business A. Selection of ChairlVice Chair for Calendar Year 2022 The Committee will take a straw poll to nominate the Chair and Vice Chair of the Redevelopment Agency Finance Committee for the calendar year 2025. The process includes expressions of interest from Committee members and any discussion the members wish to have regarding each nominee. The Committee will then vote for Chair and Vice Chair. B. Discussion and Adoption of the updated CRA Finance Committee Bylaws The Committee will discuss and vote on the updated CRA Finance Committee Bylaws C. Tax Increment Reimbursement Request for Pickle&Hide Mixed-Use Development at 739 S.400 West in the 900 South Housing and Transit Reinvestment Zone Members will consider and may provide recommendation to the Board of Directors request of a tax increment reimbursement for the developer, Blaser Ventures operating as Mountain West Development, LLC D. Adjournment People with disabilities may make requests for reasonable accommodation no later than 48 hours in advance in order to attend this Community Reinvestment Finance Committee. Accommodations may include alternate formats, interpreters, and other auxiliary aids. This is an accessible facility. For questions, requests, or additional information, please contact the CRA at 801-535-7240. AMENDED AND RESTATED BYLAWS OF THE FINANCE COMMITTEE OF THE SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY AMENDED FEBRUARY ,2025 ARTICLE I NAME The name of the body shall be the Finance Committee of the Salt Lake City Community Reinvestment Agency(hereinafter referred to as "Finance Committee"). ARTICLE II PURPOSE The purpose of the Finance Committee is to provide recommendations to the Board of Directors ("Board")of the Salt Lake City Community Reinvestment Agency("CRA")for approval on all CRA loans, tax increment reimbursement agreements, and land write-downs. ARTICLE III MEMBERSHIP The Finance Committee shall consist of not less than 5 voting members and no more than 7 members. The Finance Committee shall consist of members who provide expertise in finance, construction, law, architecture,urban design,planning, and any other expertise with an emphasis on the finance of real estate development. ARTICLE IV CONFLICTS OF INTEREST Finance Committee members are subject to Chapter 2.44 of Salt Lake City Corporation's Ordinance regarding conflict of interest, and the Municipal Officers' and Employees'Ethics Act in the Utah Code. ARTICLE V MEETINGS The Finance Committee shall convene meetings on an as-needed basis,the frequency of which shall be determined by the CRA staff based on when the Finance Committee must make recommendations to the Board. Meetings may be requested by a majority of the Finance Committee, the Finance Committee chair, CRA Director or the Executive Director. Every Finance Committee meeting shall conform with the Utah Open and Public Meetings Act. The Finance Committee may convene and conduct electronic meetings in accordance with the Utah Open and Public Meetings Act. To the extent practicable for the CRA to make the technology available for electronic attendance, any member may attend any meeting electronically so long as the member can participate meaningfully in the meeting to substantially the same degree as if physically present. A quorum is a majority of members who have been appointed to the Finance Committee.Electronic attendance is considered attendance for purposes of calculating a quorum, voting, and conducting other business of the committee. Written minutes and a recording shall be taken of each Finance Committee meeting. Where written minutes of a prior meeting are ready for Finance Committee approval, the Finance Committee shall review and vote for approval of such meeting minutes at any subsequent meeting. ARTICLE VI t OFFICERS The Finance Committee shall annually elect one of its members as chair and another member as vice chair who shall perform the duties of the chair during the absence or disability of the chair. The chair shall preside at all meetings and generally perform the duties of a presiding officer. ARTICLE VIII , AMENDMENTS These By-Laws may be amended by three-fourths of the voting members present at any regular Finance Committee meeting that has a quorum. Passed by the Finance Committee of the Salt Lake City Community Reinvestment Agency, this day of February , 2025. Chairperson ®� ® I S L C C R A CRA FINANCE COMMITTEE MEETING MEMORANDUM Tax Increment Reimbursement Request for Pickle & Hide (Blaser Ventures) Meeting: Wednesday, February 12, 2025, City and County Building, Room 115 DATE: February 12, 2025 TO: CRA Finance Committee 1. Community Reinvestment Advisory Committee: Amy Rowland 2. Community Reinvestment Advisory Committee: Baxter Reecer 3. Economic Development: Peter Makowski(or alternate) 4. Finance: Mary Beth Thompson(or alternate) 5. Community Reinvestment Agency: Danny Walz(or alternate) 6. Community and Neighborhoods: Tammy Hunsaker(or alternate) 7. Housing Stability: Tony Milner(or alternate) FROM: Lauren Parisi, Senior Project Manager RE: Tax Increment Reimbursement Request for Pickle&Hide Mixed-Use Development at 739 S. 400 West in the 900 South Housing and Transit Reinvestment Zone I. EXECUTIVE SUMMARY: Blaser Ventures operating as Mountain West Development,LLC("Developer")has requested a tax increment reimbursement for Phase I and II of the Pickle&Hide development located at approximately 739 S. 400 West in the 900 South Housing and Transit Reinvestment Zone ("HTRZ"). HTRZs are a relatively new type of project area intended to promote affordable housing opportunities and transit-oriented development. This project generally meets the goals of the State's HTRZ policy as well as the Community Reinvestment Agency's (CRA) HTRZ program. If approved,the Developer will receive a percentage of the tax increment generated from its project for a specified timeframe. The CRA has proposed the terms of a Reimbursement Agreement under Attachment A. The terms have been provided for consideration and recommendation by the CRA Finance Committee("Committee"),with the Committee's recommendation to be forwarded, along with the Developer's request,to the CRA Board of Directors("Board"). II. PROJECT OVERVIEW The Pickle&Hide development is a mixed-use project located in the city's Granary District and 900 South HTRZ to be constructed in two phases.Phase I features the renovation of the 1919 Bissinger Co. Hides building(Hide)including the preservation of its front facade and 40%of the exterior walls.The historic facade will serve as the entry to 5,500 square feet of commercial space and a new,multifamily addition. The addition includes 141 multifamily units and a 3-story parking structure with 164 stalls. Per HTRZ requirements, 20%of the units (28)will be affordable at 60%the Area Median Income(AMI)and below. An additional 18%of units (26)will be affordable at 80%AMI and below. The units will vary in size from studios to two-bedrooms. Phase II of the project includes the renovation,restoration and replication of the 1894 Utah Pickle Co.building(Pickle) into 14,500 square feet of retail space. The restoration plan includes preserving a significant portion of the building's front facade, extensive reuse of the original bricks for both the exterior and interior,repurposing the sandstone foundation, and replicating the building's original footprint. The building located at 345 W. 700 South known as Ed's Restaurant will also be renovated for commercial space as part of Phase II. Both Phases are estimated to be completed in June of 2026. The total project cost is approximately $90,356,229. III. TAX INCREMENT BUDGET Per State Code, CRAB are permitted to receive up to 80%of the tax increment generated. Based upon the taxable value of the proposed development,the CRA is projected to receive approximately 6,909,585 in tax increment from Phases I and II of the development over a 15- year period. Of this amount,the Developer is eligible to receive 90% as a reimbursement up to a maximum of$6,094,254.Annual tax increment projections are broken down within the tax increment budget under Attachment D. IV. POLICY ALIGNMENT The project incorporates multiple public benefits centered around affordable housing opportunities, adaptive reuse, sustainability,enhanced safety and walkability, and increased activation. Regarding the Utah State Code Section 63N-3-60: Housing and Transit Reinvestment Zone Act,this project generally aligns with the State's overarching objectives as listed below. The State HTRZ Committee also conditioned their approval of the 900 South HTRZ to require that 20%of housing within the project area is affordable at 60%of the AMI and below, which this project achieves.A complete review of State Code requirements can be found under Attachment B. a) higher utilization of public transit; b) increasing availability of housing,including affordable housing,and fulfillment of moderate income housing plans; c) promoting and encouraging development of owner-occupied housing; d) improving efficiencies in parking and transportation,including walkability of communities near public transit facilities; e) overcoming development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives; f) conserving water resources through efficient land use; g) improving air quality by reducing fuel consumption and motor vehicle trips; h) encouraging transformative mixed-use development and investment in transportation and public transit infrastructure in strategic areas; i) strategic land use and municipal planning in major transit investment corridors as described in Subsection 10-9a-403(2); j) increasing access to employment and educational opportunities;and k) increasing access to child care. Regarding the CRA's HTRZ Tax Increment Reimbursement Program Policy(see Attachment B for staff review),the proposed project meets most all of the threshold requirements including incorporating at least 10%of housing units at 60%AMI,activated ground-floor uses, and providing sufficient evidence of a funding gap. It does not meet the Sustainable Development policy in its entirety and is requesting a waiver from portions it does not meet. 2 The project includes three additional public benefits above and beyond the policy's thresholds,which increases the project's reimbursement rate by 10%per benefit for a total of 90%. These additional benefits include 1) adaptive reuse; 2)walkability where the applicant must provide evidence of a new pedestrian connection accessible to the public and enhanced streetscape; and, 3)neighborhood and commercial services,which is one of this year's annual housing funding priorities to ensure services and amenities like retail and restaurant spaces are incorporated in housing projects to serve the residents that live there. The Developer has submitted a draft of the midblock walkway easement agreement that grants the City and the public perpetual access to the walkway for the purpose of pedestrian ingress and egress. Funding Gap. The Developer has described a funding gap of over$10 million due to the lower rental revenue from affordable housing units and increased construction costs to preserve portions of the Pickle and Hide buildings. Incorporating affordable housing into the development decreases the project's cash flow by approximately$300,000 a year($4.5 million over 15 years)and the overall residual value by$6 million. The development is not supported by low- income housing tax credits that could help make up for this difference. The substantial concrete reinforcement required by building code to support 12 housing units constructed above the existing Hide building increased the cost per unit by$150,000 or$1.8 million total. The restoration of 40%of its historic exterior increased project costs by$1.7 million. Similarly,retaining significant portions of the Pickle building is estimated to cost approximately$550 per square foot for the ground floor, as opposed to $250 per square foot for new construction. This brings the total increased cost to preserve portions of the Pickle and Hide buildings to $5.5 million. The Developer has also stated that obtaining a tax increment reimbursement from the 900 South HTRZ is needed by their senior lender and preferred equity investor to achieve the cashflow necessary to hit required funding metrics. The Developer will also defer 50%of their development fee to meet these metrics. Policy Waivers. The Developer has requested a waiver from the CRA's HTRZ Tax Increment Reimbursement Program Policy to reduce the affordability period from 30 years to 15 years. This project is not supported by low-income housing tax credits that reduce the need for long-term debt and lower debt services payments making affordable rental rates sustainable for longer. Because the term of the HTRZ is 15 years,the developer has asked that the affordability period be reduced to match the term of the subsidy to ensure the project's financial feasibility. State Code requires an affordability period of 15 years. The Developer has also requested two waivers from the CRA's sustainable development policy. • The policy requires projects to operate without on-site fossil fuel combustion or be all-electric with the goal of being powered by renewable energy sources in the future. The Developer has stated that the restaurants they have been working to attract will require natural gas for cooking purposes stipulating: Tenant 1: "Landlord to provide gas line and gas meter stubbed into the tenant's space with a one and a half inch (1.5') line. Gas service to be a minimum of 1,700,000 BTU." 3 Tenant 2: 'A minimum of a 2"medium-pressure gas line stubbed to an agreed-upon location within the Premises...The PRY to be installed to bring from medium(2 psi) to low(114 psi)pressure." • The policy also requires that projects receiving a tax increment reimbursement must meet on-site or off-site net zero requirements. On-site net zero requires that on-site solar be installed to support the project's energy needs. The Developer has sufficiently documented the lack of space to install solar panels with roof plans and stated— "To fully offset 1,400,000 kWh, approximately 4 acres of solar panels would be needed, which is infeasible given site constraints." However,the policy allows for another pathway to achieve net-zero goals by participating in a renewable energy credit program like Rocky Mountain Power's Blue Sky program. This program allows customers to purchase"blocks"of renewable energy that, in turn, support the development of renewable energy sources in the Mountain West. The Developer believes that participation in this program is costly and has limited environmental impact. Staff recommends that the Developer be required to participate in this program at a level to cover the energy needs of the Hide building's commercial spaces, common areas and parking garage,which equate to $350 a month and be made a condition of approval. In lieu of meeting the sustainable development policy outright,the Developer has described different sustainable building measures they have taken within their application. According to the Carbon Avoided Retrofit Estimator or the CARE tool,the total amount of embodied carbon avoided by preserving portions of the building vs.rebuilding equates to 57.7 metric tons. V. APPLICANT INFORMATION The tax increment reimbursement request is being coordinated by Blaser Ventures, a Salt Lake City-based real estate developer with experience in urban mixed-use development, affordable housing,adaptive reuse and industrial projects. They currently have over 400 affordable units(20-80%AMI)under various stages of design and development.A significant portion of their commercial space is also reserved for supporting small, local businesses,non-profits, and other historically underserved and minority-owned businesses. Some of their notable projects include the Post District adjacent to Salt Lake City's downtown and the Silos mixed-use development that incorporates affordable housing. VI. ATTACHMENTS a. Term Sheet b. Policy Alignment c. HTRZ Map d. Tax Increment Budget e. Project Application 4 ATTACHMENT A: Mountain West Development,LLC Tax Increment Reimbursement Agreement TERM SHEET Parties: Mountain West Development,LLC("Developer") and the Community Reinvestment Agency of Salt Lake City("CRA") Scope: The Pickle and Hide development is a mixed-use project located in the CRA's 900 South HTRZ to be constructed in two phases located at approximately 739 S.400 West. Phase I includes the renovation of the Bissinger Co. Hides building,including the preservation of its front fagade and a portion of its side walls for a total of 40%of the exterior,to accommodate 5,500 square feet of commercial space and a multifamily addition to the rear. The residential addition will include 141 units,28 of which are affordable at 60%of the area median income(AMI)and below and 26 of which are affordable at 80% AMI. Phase 11 includes the renovation of the Utah Pickle Co.building to accommodate 17,000 square feet of commercial space as well as the renovation of the existing building known as Ed's Restaurant located at 345 W. 700 South for additional commercial space. Each of the buildings include an activated ground floor use where at least 50%of the ground floor, street- facing building facades contain an active use not exclusive to building tenants. The Developer has provided sufficient evidence that tax increment is necessary for the project to succeed to subsize a portion of revenue loss from affordable rental rates and increased buildings costs associated with adaptive reuse projects. Property: Developer desires to carry out development activities on three existing parcels including P.I.N.s: 15-12-130-037, 15-12-130-034, and 15-12-130-03. Legal descriptions to be included within final agreement. CRA Participation: The CRA will agree to reimburse the Developer 90%of the annual tax increment("TI")the CRA is entitled to receive from the taxing entities, subject to the terms of the Reimbursement Agreement, for a term of 15 years or the sum of the remaining collection years of the Housing and Transit Reinvestment Zone,whichever is less. To obtain this 90%reimbursement,the project has included three additional public benefits above and beyond the CRA HTRZ Tax Increment Reimbursement policy's thresholds,each worth an additional 10% reimbursement including: 1)Adaptive Reuse 2)Walkability 3)Neighborhood Commercial and Services (FY25 annual housing funding priority) Maximum Reimbursement The maximum amount available for reimbursement shall be $6,094,254("Maximum Reimbursement"). The annual TI Payment may be lower or higher than the projected amount based on actual increment generated from the Property,provided,however,the maximum total amount of the Reimbursement shall not exceed the Maximum Reimbursement. CRA Policy Waivers 1. Section 2.c.i. of the CRA's HTRZ Tax Increment Reimbursement Program Policy that requires a deed restriction be recorded against the property to ensure housing affordability for a minimum term of 30 years may be waived and reduced to a minimum term of 15 years. 5 2. Section 3.a.b. of the CRA's Sustainable Development Policy that requires emission-free building operation for all adaptive reuse projects receiving over$900,000 in CRA funding may be waived for the designated restaurant spaces in Phase I and Phase II of the project to accommodate gas stovetops. The rest of the project must comply with the policy and operate without on-site fossil fuel combustion. 3. Section 4.a.ii. of the CRA's Sustainable Development Policy that requires projects to achieve "on-site net zero"operation may be waived; however,the project must achieve"off-site net zero" standards in this requirement's place at the level described as part of the conditions of approval. Conditions for Agreement Execution: l. CRA approves all terms of the agreement. 2. Developer must submit a Statement of Energy Design Intent for both the"Pickle"and"Ed's Restaurant"buildings achieving a score of 90 or higher. 3. Developer must participate in Rocky Mountain Blue Sky renewable energy program at a level to cover energy needs for the commercial space, common areas, and parking garage a part of Phase I of the project for a minimum contribution of$350 a month. 4. Developer must submit a copy of the executed easement granting public access to the midblock walkway between the Pickle and Hide building. 5. Developer obtains all required City approvals. 6. Developer and CRA execute legal documents as deemed necessary by the CRA and its legal counsel. 7. Developer receives approval from the CRA and its legal counsel of all matters pertaining to title, legality of the request, and the legality, sufficiency, and the form and substance of all documents that are deemed reasonably necessary for the transaction. 8. Such other terms as recommended by the CRA's legal counsel and staff. 6 ATTACHMENT B: CRA HOUSING AND TRANSIT REINVESTMENT ZONE (HTRZ) POLICY ALIGNMENT PICKLE AND HIDE COMMUNITY REINVESTMENT AGENCY OF SALT LAKE CITY HOUSING AND TRANSIT REINVESTMENT ZONE TAX INCREMENT REIMBURSEMENT PROGRAM POLICY 2.0 Requirements and Structure SECTION I DESCRIPTION PICKLE AND HIDE APPLICABILITY a.Threshold requirements of projects that incorporate housing: i. Projects must meet all applicable standards Yes,20%of 28 of the 141 residential units will be affordable and objectives of the HTRZ Act and the at 60%AMI and 18%or 26 of the units will also be approved HTRZ(per the State's condition of affordable at 80%AMI. approval, the 900 South HTRZ requires 20% of housing units be affordable to 60%the Area Median Income AMI-and below). ii. At least 10%of housing units within a Yes,20%of 28 of the 141 residential units will be affordable project must be affordable to those at 60%AMI and 18%or 26 of the units will also be earning 60%the AMI and below,or,20%of affordable at 80%AMI. units must be affordable to those earning 80%AMI and below. iii. Projects must include activated,ground floor Yes,the ground floor of the Hide building includes a lobby space if not a private residence. and commercial uses,the Pickle building includes Activated,ground floor space means a commercial uses,and Ed's Restaurant will be a commercial minimum of 50%of all ground floor, use.There is also a midblock walkway between the Pickle street-facing building facades must contain and Hide building open to the public and activated with an active(commercial,retail,or outdoor dining. office)use that is not exclusive to the tenants of the building. iv. Projects must comply with the RDA's A waiver from the sustainable development policy is being Sustainable Development Policy including: requested including: • ENERGY STAR score of 90+ 1. Utilizing natural gas for restaurant spaces in the • All-electric buildings Pickle and Hide buildings. • On-site solar,OR,participation in 2. Installing on-site solar and participating in Rocky Rocky Mountain Blue Sky Mountain Blue Sky. Staff recommends the condition of approval that the developer participates in Rocky Mountain Blue Sky at a level to cover energy needs for the commercial space,common areas,and parking garage. V. The applicant must provide sufficient The Developer has described a funding gap of over$10 evidence(including,but not limited to million due to the lower rental revenue from affordable the project pro forma,senior lender housing units and increased construction costs to preserve agreement(s),equity investor agreements, portions of the Pickle and Hide buildings.They state: "the etc.)that tax increment funding is necessary HTRZ credits are a requirement for both the Senior Loan and for the project to succeed and to Preferred Equity as well as being essential to achieve the verify that the request is reasonable. cashflow necessary to support the conservative leverage from the Senior Loan and the alternative financing (Preferred Equity). Without the full 90%HTRZ credits, the project would not be able to move forward with the necessary Senior Loan($45M and Preferred Equity($10.3AP.In order to meet the Preferred Equity return hurdles,Blaser Ventures 7 is forgoing—50%of its development fee on top of the cash ow that is comingfirom theproperty and HTRZ credits." c.Affordable housing requirements i. Deed Restriction—If the project qualifies A waiver is being requested to reduce the deed restriction's for a Reimbursement based on the affordability period from 30 to 15 years. incorporation of housing,prior to executing an Agreement,a restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for at least 30 ears. I Bedroom Count Mix—The affordable units Yes,the applicant has submitted floor plans illustrating a mix shall be located on different of unit sizes and confirmed that affordable units will not be floors of the building and spread among clustered in one location.The bedroom count mix is as bedroom counts(1-bedroom,2- follows: bedroom,3-bedroom,etc.)in the same Affordable Units:28(20%)at 60%AMI proportion as the units available • Efficiency/Studio Units:4(11%) within the rest of the project. • 1 Bedrooms: 19(70%) • 2 Bedrooms:5(18%) Affordable Units:26(18%)averaging 80%AMI • Efficiency/Studio Units:3(11%) • 1 Bedrooms: 18(70%) • 2 Bedrooms:5(18%) Market Rate Units:87(62%) • Efficiency/Studio Units:9(11%) • 1 Bedrooms:62(70%) • 2 Bedrooms: 16 18% d. Eligible Project Locations— Yes,the project is located in the 900 South HTRZ. Eligible projects shall be located in or associated with an active HTRZ that allows tax increment reimbursements pursuant to the HTRZ Act. e. Maximum Reimbursement Term— The reimbursement term is 15 years beginning in 2026. The Reimbursement term will be negotiated based upon a project' s level of public benefits and demonstrated financial need and shall be consistent with the HTRZ Act. f. Maximum Reimbursement Rate— In addition to meeting the threshold requirements to achieve Base level=60% the base level reimbursement of 60%,the project also meets Projects may be eligible to receive an the three following requirements to achieve a 90% additional 10%increase in the reimbursement rate. reimbursement rate for meeting elements 1. Building preservation,rehabilitation,or adaptive listed below,with each element being worth reuse livability benchmark that requires the an additional 10%.The possible total preservation,rehabilitation,or repurposing an maximum reimbursement rate is 90%. existing structure for a land use that contributes 1. Incorporating Qualifying Livability positively to the surrounding neighborhood. Benchmarks in the project beyond the 2. Walkability livability benchmark that requires the Threshold Requirements. project improves the vibrancy,safety,and/or comfort 2. Providing an additional 10%of total of the pedestrian experience by providing at least affordable units at 60%AMI and below two of the following: beyond the Threshold Requirements. . New,publicly-accessible accessible pedestrian 3. The inclusion of 3-and 4-bedroom units p y- in projects that incorporate housing. connections; 4. Meeting a priority identified in the • Significant improvements to an existing CDA's Annual Housing Funding sidewalk or walkway such as pedestrian- Strategy established pursuant to the scaled lighting,seating,landscaping and Housing Allocation Funds Policy. shade;or, • Significant street level building 8 transparency and activity 3. Annual housing funding strategy priority—the project meets the FY25 priority of"neighborhood and commercial services"described as promoting an array of commercial spaces that support the neighborhoods,such as daycares,restaurants,and retails aces,which this development includes. g. Maximum Reimbursement Amount— The maximum reimbursement amount is$6,094,254. The maximum reimbursement amount will be negotiated based upon a project' s eligible costs,level of public benefits,and demonstrated financial need,and shall be consistent with the HTRZ and HTRZ Act. State of Utah-Housing and Transit Reinvestment Zone Act 63N-3-603. Applicability,requirements,and limitations on a housing and transit reinvestment zone. SECTION DESCRIPTION PICKLE AND HIDE APPLICABILITY (2)(a)In order to accomplish the objectives described in Subsection(1),a municipality or public transit county that initiates the process to create a housing and transit reinvestment zone as described in this part shall ensure that the proposal for a housing and transit reinvestment zone includes: i.(A) Up to 9%of the proposed dwelling units 18%or 26 of the units will also be affordable at 80%AMI. occupied or reserved for occupancy by households with a gross household income equal to or less than 80%of the median gross income of the applicable municipal or county statistical area for households of the same size. i.(B) At least 3%of the proposed dwelling units 20%of 28 of the 141 residential units will be affordable at occupied or reserved for occupancy by 60%AMI. households with a gross household income equal to or less than 60%of the median gross income of the applicable municipal or county statistical area for households of the same size. ii.(A) At least 5 1%of the developable area within Yes,more than half of the project's square footage or a housing and transit reinvestment zone as approximately 228,000 square feet is dedicated to residential residential uses. use. ii.(B) An average of at least 50 dwelling units per Yes,the project achieves a residential density of 56.4 units acre within the acreage of the housing and per acre. transit reinvestment zone dedicated to residential uses. iii. Mixed-use development. Yes,this is a mixed-use project with residential,retail and restaurants ace. iv. A mix of dwelling units to ensure that a Yes,this project includes a mix of studios, 1-bedroom and 2- reasonable percentage of the dwelling units bedroom units, 18%being 2-bedroom units. has more than one bedroom. 9 W ATTACHMENT C: W9Q05: Ll _ - HTRZ BOUNDARY 10 1 � Jeffe�_�_•' -- k Haivad Av T ATTACHMENT D: Tax Increment Budget J-252— 2026 2o21 202. 2.21 2,030 2031 2032 2033 2034 a35 036 o3T o3 039 040 041 YEAR 0 1 2 3 4 5 6 T >! 9 10 11 12 13 14 15 16 Taxable value - - 85 56,656,945 49 142pee 2022 T..able V I.. - - 2022 ent beforeiaFees - - LessTaxCollectionLoss - 10,923 11,036 11,150 11,266 11,383 11,501 11,620 11,740 11,861 11,984 12,108 12,233 12,359 12,487 12,6 CRAent Daher 80%red—.) less Ad—Fee - 92 Ad $563 8652 e,ld2 8,833 8,926 9,016 9,110 9,— 9,299 1,31 9,492 9,591 9,690 9,— 9,8 otal Increment - - eta!Co...E. Bond Admin Fee - - - - 11 ATTACHMENT E: Project Application 12 BLASER VENTURES Salt Lake City Community Redevelopment Agency Danny Walz 451 S State St Salt Lake City, UT 84111 January 31, 2025 Dear Danny, We are pleased to submit our application for the Housing and Transit Reinvestment Zone (HTRZ) tax incentive program, a vital component to realizing our vision for a transformative mixed-use development in the Granary District. This project aligns closely with the goals of both the City/CRA and the legislature to foster dense, mixed-use, walkable, sustainable, and community-focused development adjacent to the most transit-rich site in Utah. It further supports strategic planning initiatives by creating substantial housing opportunities, activating the area with vibrant commercial uses, and preserving its unique character through adaptive reuse of historic structures. To ensure the feasibility of the Pickle & Hide project and its contributions to the Granary District's revitalization, we respectfully request the following considerations: 1. Full 90% HTRZ Tax Incentive: The project's ambitious scope and commitment to public benefits such as historic preservation, activated public spaces, and affordable housing require significant financial support. The full allocation of the HTRZ tax incentive is essential to bridge the funding gap and ensure this development can move forward. 2. Waiver of the CRA's Net Zero Sustainability Requirement: We are deeply committed to sustainability and have incorporated a comprehensive set of measures to minimize the project's environmental impact, including: Adaptive reuse of historic structures, preserving embodied carbon and reducing construction waste. All-electric residential design, eliminating fossil fuel reliance for heating, cooling, and appliances. High energy performance, with the project achieving an ENERGY STAR score of 92 for new construction. Efficient design that maximizes energy conservation through passive strategies, including optimized building orientation, natural daylighting, and enhanced i insulation. Low-carbon materials that reduce embodied carbon and promote sustainable construction practices. Walkability and transit-oriented development, reducing car dependence and encouraging sustainable mobility choices. While these strategies significantly reduce the project's carbon footprint, achieving full net zero is not feasible due to the site's constraints—specifically, the inability to generate sufficient energy on-site and the financial burden of purchasing off-site credits. However, by prioritizing electrification, efficiency, and sustainable materials, we are taking meaningful steps toward a low-carbon, high-performance development that aligns with the City's broader climate goals. 3. While we strongly support sustainability principles, the unique site conditions make achieving net zero infeasible due to the inability to generate enough energy on-site and the financial burden of purchasing off-site credits. However, we are committed to incorporating high-performance materials, energy-efficient design, electrification of the site and adaptive reuse strategies that significantly reduce the project's environmental impact. 4. 15-Year Deed Restriction for Affordable Units: To match the tax incentive program's duration, we propose a 15-year deed restriction on the 20% affordable units at 60% AMI. This ensures long-term affordability while maintaining financial feasibility for the project. We want to note that this affordability is being created with the HTRZ as the only subsidy option. No tax credits or other subsidies are being utilized to create these units. The Pickle & Hide project exemplifies the vision of the HTRZ program and the Granary District Area Plan by promoting housing opportunities, activating the neighborhood with a vibrant commercial mix, and supporting transit-oriented growth. Approximately 60% of the development's land area is dedicated to housing, with nearly 40% of units as affordable, complemented by public spaces, retail, and adaptive reuse of historical structures. We are dedicated to working collaboratively with the CRA and Salt Lake City to establish a framework for this program that not only supports this project but also serves as a model for future developments in the Granary District. By working together, we can advance the area's transformation into a walkable, sustainable, and inclusive community that fully embraces the multitude of transportation options available in this area. ii Confidentiality Notice: Pursuant to Utah Code Ann. §§ 63G-2-305 and in accordance with Utah Code Ann. §§ 63G-2- 309, the undersigned asserts a claim of business confidentiality to protect the information presented in Attachments 1-3 as proprietary. The following reasons support this claim for business confidentiality: • Reason A: The information contains trade secrets as defined in Utah Code Ann. §§ 63G- 2-305(1). • Reason B: The information includes commercial or non-individual financial data as defined in Utah Code Ann. §§ 63G-2-305(2) and (4). Thank you for your consideration. We look forward to discussing this proposal further and are happy to provide additional information as needed. Sincerely, Brandon Blaser Founder & President Blaser Ventures 386 W 500 S, Suite 100 Salt Lake City, UT 84101 t. 214.235.8778 brandon@blaser-ventures.com iii RDA TIR/HTRZ Application Pickle and Hide (Phase I & II) I. PROJECT SUMMARY PARCEL NUMBERS: 15-12-130-037-0000 (Hide Apartments, 737 S 400 W) 15-12-130-034-0000 (Pickle Building, 741 S 400 W) 15-12-130-027-0000 (Ed's Place, 345 W 700 S) DATE: January 7, 2025 TOTAL PROJECT COST: Approx. $90,017,722 Phase I: $77,258,605, Phase II: $12,759,117 ESTIMATED FINANCIAL GAP: $6.1M of cash flow support over a 15-year term from HTRZ credits. The capital stack consists of$35M of Common Equity, $45M Senior Loan, $10.3M of Preferred Equity. The Senior Loan and Preferred Equity is contingent on the full requested HTRZ credits and the cash flow that this would bring to the project annually. Without these credits, Blaser Ventures would not be able to fill the capital stack and move forward with the project. TIMELINE - PROPOSED PROJECT START/END DATE: Phase I - February 2024/June 2026, Phase II — May 2025/June 2026 PROJECT ADDRESSES: 737, 739 & 741 S 400 W, 345 W 700 S, Salt Lake City, UT 84101 CONTACT: Brandon Blaser, Brandon@blaser-ventures.coi , (214) 235-8778 II. APPLICANT SUMMARY APPLICANT& OWNERSHIP: Mountain West Development LLC 386 West 500 South, Suite 100 Salt Lake City, UT 84101 Tax ID 35-2677318 III. DEVELOPMENT OVERVIEW PROJECT SUMMARY: Pickle & Hide is a new Granary District development that will be constructed in two phases. Phase I will include the new construction of 141 multifamily units, 5,500 square feet of ground floor retail, and a 3-story parking structure with 164 stalls. Phase I will also feature the renovation and preservation of 100% of the front fagade and 40% of the exterior of the historical Bissinger Co. Hides ("Hide") building, which will serve as the entry point for the multifamily and retail. In Phase II of the project, the historical Utah Pickle Co. ("Pickle") building will undergo an adaptive reuse renovation, restoration and replication and will be 1 repurposed as approximately 14,500 square feet of retail/commercial space. The Project will transform an area that has historically been the industrial/manufacturing hub of Salt Lake City into a dynamic mixed-use, mixed-income, adaptive reuse development interconnected with pedestrian-oriented walkways and public spaces. Ed's Place, a —2,500- square-foot beloved former restaurant on 700 S will also be part of the project's adaptive reuse. The one-story brick structure will be restored to its original fagade, abandoning the deteriorating, orange-shingled overhang and Italian flag striped canopy. CONSTRUCTION TYPE: Renovation/Rehabilitation of Existing Structures, Energy-Efficient Upgrades, New Construction, Select Demolition of Existing Structures. LAND AREA: 2.55 acres BUILDING AREA: Approx. 228,000 square feet, including 141 Mixed-Income Units, parking, amenities, 5,500 square feet Retail (Phase 1) and approx. 17,000 square feet Adaptive Reuse Commercial/Retail (Phase II) LAND USE MIX: 20% of the residential units will be affordable at 60%AMI per threshold requirement with an additional 18% averaging 80%AMI. The affordable units will be dispersed throughout the building and mirror the unit mix of the market rate apartments. Hide Apartments: • 141 Mixed Income Residential Units o Affordable Units: 28 (20%) at 60%AMI ■ Efficiency/Studio Units: 4 (11%) ■ 1 Bedrooms: 19 (70%) ■ 2 Bedrooms: 5 (18%) o Affordable Units: 26 (18%) averaging 80%AMI ■ Efficiency/Studio Units: 3 (11%) ■ 1 Bedrooms: 18 (70%) ■ 2 Bedrooms: 5 (18%) o Market Rate Units: 87 (62%) ■ Efficiency/Studio Units: 9 (11%) ■ 1 Bedrooms: 62 (70%) ■ 2 Bedrooms: 16 (18%) • 5,500 square feet Retail/Food & Beverage • 164 Parking Stalls (structured) Pickle Building (Adaptive Reuse) • 14,500 square feet Commercial, Retail/Food & Beverage • 12 Parking Stalls (surface) Ed's Place (Adaptive Reuse) 2 • 2,500 square feet Commercial • 60 Parking Stalls (surface) Public and Open Space • Public: —30,000 square feet— 22,000 square feet midblock connectivity and programmable outdoor space, 4,500 square feet for Pickle frontage, 2,500 square feet for Ed's sidewalk, 500 square feet Hide 400 W frontage • Retail Patio Outdoor Space: —4,500 square feet CURRENT AND PROPOSED ZONING: General Commercial, no proposed zone change IV. ELIGIBILITY PROJECT LOCATION: Granary District, 900 South HTRZ V. PROJECT OBJECTIVES 1. ALIGNMENT WITH MOST RECENT PROJECT AREA PLAN (Granary District Area Plan Vision and Goals): Alignment with Granary District Area Plan Vision and Goals Vision: To improve mobility and circulation for the Granary District by responding to development patterns, existing and future transit service, walking and biking connectivity, and public right-of-way opportunities. Goal 1: Foster Inclusive and Welcoming Community Connections • Community-Centric Public Spaces: The project has a recorded public midblock walkway easement, promoting outdoor public spaces that encourage social interaction and enhance neighborhood identity for all ages and abilities. This area will facilitate pedestrian connections from 400 W to 700 S as well as to Kilby Court and include approximately 20,000 square feet of accessible retail and restaurant space. Goal 2: Identify Gaps and Barriers for People Moving to and through the district • Enhanced Walkability: By adhering to the city's midblock walkway directive, the design prioritizes accessibility and walkability, creating an inviting environment that encourages residents to engage with their surroundings and each other. Goal 3: Define Transportation Opportunities • Support for Alternative Transportation: Streetscape enhancements, integrated midblock connectivity, secure bike parking, and real-time transit screens encourage walking, biking, and the use of alternative transit modes. With proximity to the Red, Blue and Green Lines, as well as the future UTA TRAX extension along 400 W, the project strengthens local and regional transit access. 3 • Integration with City and UTA Initiatives: The project is uniquely positioned within a network of transformative city and transit initiatives. The Green Loop project along 500 W, the Grand Boulevards initiative along 500 S and 400 S, and the new TRAX line on 400 W create a multi-modal, transit-rich environment that enhances connectivity and makes Pickle & Hide a pivotal component of the district's infrastructure. Goal 4: Develop a Blueprint for Collaborative Implementation • Building Preservation and Adaptive Reuse: Phase I includes the renovation of the historical 1919 Bissinger & Co. Hides building, preserving 100% of its front fagade and 40% of the brick exterior. Phase II will renovate, restore and replicate the 1894 Utah Pickle Co. building into 14,500 square feet of retail space. The restoration plan includes preserving a significant portion of the front fagade, extensive reuse of the original bricks for both the exterior and interior, repurposing the sandstone foundation, and replicating the building's original footprint. This adaptive reuse of the district's first industrial building constructed in 1894 by former LDS Church President Heber J. Grant. The building has served many roles over its 130-year history—from a soap factory to a pickle and condiment plant, and most recently, an arts and event space. The Pickle building will now be transformed into 14,500 square feet of retail and commercial space, maintaining its industrial charm. The original "Utah Pickle and Co."signage has been carefully preserved and will be refurbished to once again adorn the structure, honoring its storied past. Goal S: Engage Businesses and Residents about Needs and Opportunities • Public Art and Local Engagement: The project will showcase rotating art exhibits in the multifamily lobby. Additional opportunities exist in programming the public walkways and open spaces. These initiatives will engage the community, foster cultural authenticity, and attract visitors, enhancing the area's vibrancy. • Comprehensive Safety Strategies: By integrating neighborhood activation, thoughtful public space design, and improved connectivity, the project aims to create a safer community. Increased foot traffic, active engagement, and well-designed environments will contribute to a resilient and secure atmosphere, ensuring residents feel safe and connected. 2. TIR THRESHOLD REQUIREMENTS: • Affordable Housing Requirement of 20% of units averaging 60%AMI (900 S HTRZ): See Section III. DEVELOPMENT OVERVIEW - Land Use Mix—shows the development includes 28 units (20%) averaging 60% AMI and 26 units (18%) averaging 80% AMI. • Minimum Investment of$12 million in capital expenditures: The total project cost for Phase I and Phase 11 is $90,017,722 4 • Salt Lake City-based Business: Mountain West Development LLC is a Salt Lake City based business located at 386 West 500 South, Suite 100, Salt Lake City, UT 84101, the tax ID number is 35-2677318. The project is being led by Blaser Ventures the sponsor and developer of the project, a Salt Lake City based, community-focused development company. • Facility Improvement or Expansion: See Section VI. PUBLIC BENEFIT- Neighborhood Safety, Public Space/Public Art, Walkability, Historic Preservation • Job Retention and/or Job Creation: See Section VI. PUBLIC BENEFIT- Permanent Job Creation • Demonstrate TIR is Necessary for Project to Succeed See Attachments: Term Sheet(s) and Sources and Uses • Employ Sustainable Construction Practices: See Section V. PROJECT OBJECTIVE5, 5. Project's Sustainability 3. STATE HTRZ ACT REQUIREMENTS The information provided in this application demonstrates the project adheres to the central objectives of SB217 Housing and Transit Reinvestment Zone Act and subsequent amendments (SB140, S1384, & S13208) by: • Promoting greater utilization of public transit • Increasing the availability of attainable housing • Encouraging transformative mixed-use development and collaborative investment in transit and transportation in strategic areas • Maximizing available planning and economic development tools to strengthen and grow major transit corridors • Increasing access to employment and educational opportunities • Improving water conservation and air quality resources through efficient land use and better utilization of transit opportunities In addition, the project meets the HTRZ State requirements, more specifically: Land Area: The Project is within the required 1/3-mile radius of a commuter rail station, 900 South/200 West Blue, Green and Red Light Rail lines. �x? O = • - r' U -- „ fi 10 min — .. t .. r�. o.amn•• s- Housing and Mixed-Use: The mixed-use project provides approx. 22,500 square feet of retail/commercial, public walkways, bike paths and open spaces, and a total of 141 residential units or 56.4 units per acre, exceeding the 50-unit-per-acre minimum required. Housing affordability also exceeds the minimum requirement with 20% of the units at 60%AMI and 18% at 80%AMI for a total of 38% or 54 affordable units. The state requirement by comparison is 12% affordable with 9% at less than or equal to 80% AMI and at least 3% at less than or equal to 60% AMI (See Section III. Development Overview, Land Use Mix) 4. ESTIMATED TAX INCREMENT REQUESTED AND WHY IT IS NECESSARY FOR PROJECT'S SUCCESS The Pickle & Hide development, as proposed, delivers immense public benefits, including affordable housing, historic preservation, public spaces, and enhanced pedestrian connectivity. However, without HTRZ tax increment financing tools, the project would be economically infeasible, and many of these benefits—critical to achieving the City's goals—would not be realized. Below are the key arguments: Substantial Preservation and Adaptive Reuse Costs The project's hallmark features include the preservation and restoration of three historic structures—the Hide Building, the Pickle Building, and Ed's Place. Adaptive reuse is more complex and costly than new construction due to structural retrofitting, fagade restoration, and compliance with modern building codes and the floodplain. For example: • The Hide Building required substantial concrete reinforcement to support the housing units constructed above the structure, adding $150,000 per unit for 12 of the residential units. This essential construction option to preserve the historic character of the building increased the project cost by an additional $1.8M, a necessary expense to ensure structural integrity and meet code requirements. Additionally, the restoration of a significant portion of the historic exterior greatly increased the project's overall cost. Ideally, the entire structure would have been preserved; however, this would have added approximately $3M to the budget, rendering the project infeasible. It was determined that by retaining 40% of the exterior (including the entire fagade and the original painted signage on the north and south walls) we could lower that additional cost to the project to $1.7M. Combined with the $1.8M concrete reinforcement, the Hide Building alone requires an additional $3.5M in costs. To preserve the site's historic character, cost-saving measures were identified elsewhere to make the $1.7M option viable, with the expectation that HTRZ credits could help offset the expense. Without HTRZ credits, preserving even 40% of the exterior walls would not be feasible. 6 • The Pickle Building is set to undergo a complete transformation, converting its 130-year-old industrial frame into 14,500 square feet of functional retail space while preserving its original, authentic charm. However, restoring, rebuilding, and replicating this cultural landmark comes at a premium cost of approximately $1.8 million more than demolishing the structure and constructing a new building of the same size and design. Retaining significant portions of the existing structure is estimated to cost approximately$550 per square foot for the 7,000-square-foot ground floor, compared to around $250 per square foot for demolishing the existing building and constructing a new structure. These substantial preservation and adaptive reuse costs, totaling an additional $5.5M, highlight the importance of HTRZ tax incentives to make the project financially viable. Without HTRZ funding, the financial burden of adaptive reuse would make it more viable to demolish these structures and pursue a standard new-build development—sacrificing the cultural and architectural history of the district. Elimination of Affordable Housing The project commits to providing 38% of units as affordable housing, with 20% of the units at 60%AMI and another 18% at 80%AMI. The inclusion of affordable units imposes significant financial strain: • Affordable units generate lower rental revenue compared to market-rate units, which reduces the property cash flow by—$300,000 per year and overall residual value by over $6 million (250 -300 basis point reduction in returns). This translates to a higher cost of capital to the project, which in turn creates an undesirable funding environment for potential investors, significantly limiting the investor pool and limiting available cash required to build the project. • The cost of mixed-use elements like efficient structured parking (164 stalls), —21,000 square feet public open space, and retail space further stretches project financing. (—$8.6M) Without HTRZ incentives, the project would be forced to pivot to a market-rate-only housing model, with a larger footprint parking garage (current footprint is smaller and more efficient, which is also more costly to design and construct than a typical garage), larger (less efficient and higher monthly cost for residents) units, more private amenities, no public open space in excess of code requirement, no sustainable elements, and no retail, diminishing the vibrancy of a mixed use development and vital affordable and attainable units that address a critical housing shortage. Public Benefits Depend on Financing Support The project delivers extensive public benefits beyond housing, including: • 30,000 square feet of public and programmable space promoting connectivity and community interaction. 7 • Affordable commercial spaces for local businesses, enhancing the district's economic vitality and authenticity. • Streetscape improvements, pedestrian and bike-friendly infrastructure that promote connectivity and multi-modal transportation. These amenities do not generate direct financial returns but are essential for long- term neighborhood resilience. Without HTRZ funding, many of these amenities would be deemed financially unsustainable. Demolition as the Only Alternative In the absence of HTRZ financing, the economic realities of the project necessitate: • Demolition of the historic structures to reduce construction costs. • Development of a simpler market-rate multifamily building with minimal public amenities. This outcome would eliminate affordable housing, erase critical historical landmarks, and fail to align with the City's goals for inclusive, sustainable, and community- oriented development. This project is an opportunity to preserve Salt Lake City's rich industrial history, deliver affordable housing, and activate the Granary District with vibrant, connected public spaces. However, achieving this vision is contingent upon HTRZ tax increment financing tools. Without this support, the project would regress into a generic, market-rate development devoid of affordability, historic preservation, and meaningful public benefits. Investing in this project through HTRZ ensures that Salt Lake City reaps the rewards of thoughtful, equitable, and transformative redevelopment. 5. HOW PROJECT MEETS THE RDA's SUSTAINABILITY POLICY Adaptive Reuse to Reduce Carbon Footprint The project prioritizes the adaptive reuse of existing structures, significantly reducing its carbon footprint by minimizing the need for new materials and construction waste. This approach allows for the integration of modern, energy- efficient technologies while preserving the historical and cultural character of the site. Key sustainable measures include the reuse of over 10% of the original wood floor system and wooden columns from the Hide building, along with repurposed steel trusses and approximately 12,500 bricks salvaged on-site. High Energy Performance Phase I of the project will achieve an ENERGY STAR score of 92 for all new construction, setting a benchmark for energy efficiency (See Energy Star Score Attachment). The project is designed to be fully electric, with residential units utilizing all-electric appliances. The only exception is a limited gas service for 8 restaurant tenants, representing 5,500 square feet of the approximately 200,000 gross square feet in Phase I. While the goal is to maximize electrification, restaurant tenants have specific operational requirements that currently make all-electric cooking impractical. Existing LOls with restaurant tenants include provisions that necessitate gas service due to the lack of reliability of electric alternatives in high-performance commercial kitchens: • Tenant 1: "Landlord to provide gas line and gas meter stubbed into the tenant's space with a one and a half inch (1.5") line. Gas service to be a minimum of 1,700,000 BTU." • Tenant 2: "A minimum of a 2"medium-pressure gas line stubbed to an agreed-upon location within the Premises...The PRY to be installed to bring from medium (2 psi) to low (114 psi)pressure." To further support sustainability, leasing and marketing teams will actively promote the benefits of induction cooking, encouraging restaurant tenants to adopt this cleaner, more efficient alternative to gas whenever possible. Additionally, all retail spaces are stubbed for heavy-amperage electrical service to accommodate all- electric restaurant operations in the future. Promoting Sustainable Mobility The project emphasizes pedestrian- and cycling-friendly design to encourage car- optional living for residents and visitors. Key strategies include: • Proximity to multiple transit lines, ensuring accessible and sustainable transportation options. • On-site retail and restaurant spaces, reducing reliance on car trips. • Meeting and focus rooms within the Hide apartment building to reduce the need for residents to commute for work or study. • Proposed bike paths along street frontages, complemented by secured bike parking and storage facilities for residents, visitors, and retail patrons. • 4 electric vehicle charging stalls, with infrastructure for an additional 12 future charging stations to meet evolving demand. Low-Carbon Materials and Efficient Design The project integrates low-carbon emission materials in its interior design, paired with native, drought-tolerant landscaping to reduce maintenance, lower carbon emissions, and improve environmental health. On-site pollinator beehives contribute to ecosystem biodiversity while enhancing air quality and fostering a healthier living environment for residents and neighbors. 9 Net-Zero and Renewable Energy Strategies The project team has carefully evaluated on-site and off-site renewable energy options to meet net-zero goals. o On-Site Solar: o Phase I would generate a maximum of 20,000 kWh annually through rooftop solar—approximately 1.4% of the 1.4M kWh needed to power the development. Due to retrofit costs of$250,000 and limited energy offset (enough to power common areas only, which require 264,000 kWh annually), this approach is neither cost-effective nor feasible. - The retro fitting costs include all the roofing components/systems for the Hide building (including but not limited to; trusses, anchors, mechanical equipment, roof material, etc.). Other challenges with the redesign would be approvals with the building department and procurement of materials, both causing delays in the construction process. o Phase 11 would require structural reinforcement of the historic building to incorporate solar, making it financially prohibitive. o To fully offset 1,400,000 kWh, approximately 4 acres of solar panels would be needed, which is infeasible given site constraints. o Passive Design: The project incorporates building orientation, shading, high-performance insulation, and strategically placed operable windows to reduce energy consumption while enhancing comfort. Features such as high-performance windows and zone-specific heating and cooling systems further lower energy use by minimizing unnecessary temperature fluctuations. o Wind Turbines: Wind energy was deemed unsuitable due to low and inconsistent wind speeds caused by urban turbulence, aesthetic concerns, noise pollution, and the need for specialized turbine designs to function in dense environments. These factors make wind energy technically challenging and cost prohibitive. o Geothermal: Geothermal energy was considered but ruled out due to high installation costs (approximately $30,000—$40,000 per unit), the high-water table, mismatched energy demand, maintenance challenges, and utility restrictions. Off-Site Renewables and Energy Credits Off-site renewable energy credits (RECs) offer a supplemental approach but pose challenges, including market volatility, cost sustainability, and limited environmental impact. o The estimated annual costs for Phase I per the Blue Sky Environmental Impact Calculator by Rocky Mountain Power are $942/month or $11,303 annually for the 1,400,000 kWh needed for the project, including the following: • Residential Units (1,015,000 kWh): o $717/month or $8,606 annually ($61/unit for 141 units). 10 • Commercial, Common Areas, and Garage (385,000 kWh): o $350/month or $4,200 annually. While purchasing RECs helps offset carbon footprints, their reliance on geographically distant renewable sources raises concerns about long-term feasibility and transparency. Long-Term Renewable Vision Given the constraints of limited space, high-density energy demands, and regulatory challenges, the project would benefit from a more district-wide renewable energy strategy. This approach would align with broader sustainability goals, pooling resources and infrastructure for a greater collective impact. To achieve this, collaboration is essential among key stakeholders, including utility providers, municipal leaders, renewable energy consultants, property owners and developers, and community organizations. By working together, these groups can design and implement scalable solutions such as shared solar installations, microgrids, or district heating and cooling systems, ensuring equitable access and maximizing environmental benefits. VI. PUBLIC BENEFIT PERMANENT JOB CREATION/ECONOMIC IMPACT: • The project will create permanent jobs for retail operators, featuring nearly 20,000 s square feet of retail aimed to attract local retail/restaurant operators. The owner is currently holding leasing discussions with local operators. In addition, the 141 residential units will create numerous permanent job opportunities including leasing and maintenance staff as well as contracted service vendors. AFFORDABLE HOUSING: • 38% of the residential units will be affordable averaging 60%-80%AMI. The units will be dispersed throughout the building and floors. mirroring the unit mix of the market rate apartments. AFFORDABLE COMMERCIAL: • Working with local shops, restaurants, businesses and services is essential to Blaser's development philosophy and enhances the district's character while supporting local entrepreneurs. Leasing is focused on offering spaces to local business owners and artisans at accessible rates to support growth within the local community. TRANSPORTATION OPPORTUNITIES: • Alternative means of transportation such as biking, walking, and transit, are encouraged and supported by the project's secured bike parking and storage, real- time transit screens, and streetscape/sidewalk improvements in front of the site along 400 W. (see Attachment 5a, Site and Landscape Plan) 11 • 4 electric vehicle charging stalls will be available to the public, with infrastructure for an additional 12 future charging stations to meet evolving demand. • The project's shared parking garage (164 stalls) also benefits from its location within a 1/3 mile from existing transit lines providing safer and more convenient access to transit lines and stops, with the Red, Blue, and Green lines along with 5 nearby bus stations within 2-3 blocks from the site. • The project team is actively coordinating with City agencies on streetscape enhancements to 400 W, incorporating multi-modal best practices to ensure safe and accessible transportation options for all users. • Blaser is also coordinating with the UTA on the proposed Trax Extension project designed to run along 400 W, right in front of the project, with 2 transit stops within a one-block radius. NEIGHBORHOOD SAFETY/COMMUNITY ENGAGEMENT: • Neighborhood activation, thoughtful public space design, improved connectivity, and active engagement creates a comprehensive strategy for enhancing neighborhood safety. By prioritizing these elements, the project not only addresses current safety concerns but also fosters a resilient and vibrant community where residents feel secure and connected. PUBLIC SPACE AND PUBLIC ART: • The Project has recorded a 10' public midblock walkway easement for community- focused outdoor public space that invites and promotes social interaction, neighborhood identity, and urban character. • Walkways, sidewalks and public spaces will be illuminated with pedestrian-scaled lighting that is directed downward for preservation of our night skies. • Phase I and Phase II will feature approximately 20,000 square feet of retail/restaurant space accessible to the public. • The multifamily lobby will showcase rotating art from local and regional artists. WALKABILITY: • The walkability and accessibility of the area continues to improve as more parcels are redeveloped. In designing the Pickle & Hide Project, the team focused on creating new, publicly accessible pedestrian connections, namely a recorded 10' public mid-block walkway easement through the site including connectivity to Kilby Court to encourage social interaction and improve the user experience through the site • The Project focuses on creating an environment that improves the pedestrian experience as demonstrated in the Site and Landscape Plan (Attachment 5a) with new and improved sidewalks and walkways in front and through the site complemented with pedestrian scaled lighting, seating and substantial landscaping. 12 • The ground-floor retail spaces are designed with significant transparency, featuring extensive glazing and large openings to promote indoor/outdoor seating and enhance the connection between the interior spaces and the surrounding streetscape. This design encourages interaction, fosters a welcoming pedestrian experience, and supports active street life. HISTORIC PRESERVATION, REHAB AND ADAPTIVE REUSE: • Phase I of the project will focus on the renovation and preservation of the historic 1919 Bissinger& Co. Hides ("Hide") building. This includes restoring 100% of the front fagade and 40% of the original brick exterior, along with the preservation of the iconic "Bissinger"signage that has long defined the building's identity. The new- build multifamily portion of the project has been purposefully designed around the historic Hide building, intentionally incorporating many of the industrial materials and elements into the design. The Hide building will serve as the gateway to a thoughtfully integrated multifamily and retail space, blending history with modern use. • Phase II will center on the renovation, restoration and replication for adaptive reuse of the Utah Pickle Co. ("Pickle") building. Given the poor structural integrity of the building and the significant cost of renovation, the focus of the restoration plan is to preserve as much of the front fagade as possible, maintaining the original footprint and reusing as many of the original bricks and materials as feasible to ensure the historical and cultural character is well preserved. Constructed in 1894 by former LDS Church President Heber J. Grant, the building has served many roles over its 130-year history—from a soap factory to a pickle and condiment plant, and most recently, an arts and event space. Now, the Pickle building will be transformed into 14,500 square feet of retail and commercial space, maintaining its industrial charm. The original "Utah Pickle and Co."signage has been carefully preserved and will be refurbished to once again adorn the structure, honoring its storied past. • Additionally, Ed's Place, a 2,500-square-foot, single-story brick building on 700 South, will undergo renovation and retrofitting for commercial use. Once a beloved neighborhood breakfast and lunch spot, the building's original fagade will be restored, removing the deteriorating, orange-shingled overhang and Italian-flag- striped canopy to reveal its historical character. • This phased approach to adaptive reuse preserves the rich industrial architecture that defines the district, maintaining its cultural identity while minimizing the project's carbon footprint. By blending history with contemporary functionality, the project will help stimulate the local economy, attracting businesses, visitors, and residents seeking a culturally authentic and character-rich environment. 13 ATTACHMENT CHECKLIST 1. Sources and Uses 2. Operating Pro Forma 3. Tax Increment Reimbursement Calculation 4. Appraised Project Value— (Not available until loan closing, will complement application as soon as available) 5. Preliminary Plans & Renderings a. Site and Landscape Plan b. Floor Plans (Hide) c. Elevations (Hide) d. Roof-top Solar Availability Plan (Hide) e. Renderings 6. Energy Star Score Card 7. Project's Carbon Avoidance 14 ATTACHMENT 1: SOURCES AND USES USES Land&Acquisition Costs 8 EC6 192 Hard Costs 65 139,864 Soft Costs 8 896 6 16 Project Fees 3 938 557 Financing Fees 100% 3.875 CCC Total Uses 90,356,229 SOURCES Equity Raised 35 CCC CCC Loan Proceeds 45 Cu Preferred Equity 10,356,229 Total Sources 90,356,229 15 ATTACHMENT 3: TAX INCREMENT REIMBURSEMENT CALCULATION Jan 25 Jan-26 Jan 27 Ian 28 Jan 29 Jan-30 Jan 31 Ian 32 Jan 33 Jan-34 Ian 35 Ian 36 Jan 37 Jan-38 Ian 39 JanA0 JanAl 2026 2027 2028 2029 2,030 2031 2032 2033 2034 2035 2036 2037 2039 2039 2040 2041 YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Taxable Value - - 56.095,985 56,656,945 57,223.514 57.795,749 58.373,707 58,957.444 59,547.019 60.142,488 60.743,913 61,351.352 61,964.866 62.584,514 63.210,360 63,942.463 64,480.889 Taxes - - 566.305 572,968 577.688 583465 589.299 595,192 601.144 607,156 613.227 619,360 625.553 631,809 638,127 64M1,508 650.953 2022 Taxable Value - 1.997,700 1.997,700 1,997.700 1,997.700 1.997,700 1,997,700 1,997.700 1,997.700 1.997,700 1,997,700 1,997.700 1,997.700 1.997,700 1,997,700 1,997.700 2022 Taxes 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 Increment before Fees 546,138 SS1,801 557,522 563,297 569,132 S75,025 580,977 586,988 593,060 599,192 605,386 611,641 617,960 624,341 630,786 Less iox Collection Lou - - 10,923 11,036 11,150 11,266 11,383 11,501 11,620 11,740 11,861 11,984 12,108 12,233 12,359 12,487 12,616 CM lncrement(aRer 80%reduction) 428,172 432,612 437,096 441,625 446,200 450,820 455,486 460,299 464,959 469,767 474,623 479,527 484,480 489,483 494,536 less Admin Fee - - 8,563 8,652 8,742 8,833 8,924 9,016 9,110 9,204 9,299 9,395 9,492 9,591 9,690 9,790 9,891 Total Increment - - 419.609 423,960 428.354 432,793 437,276 441.803 446.376 450,995 455,660 460.371 465.130 469,936 474,791 479.694 484.645 Increment Net of Coverage 419,609 423,960 428,354 432,793 437,276 441,803 446,376 450,995 455.660 460,371 465,130 469,936 474.791 479,694 484,64S Bond Ad m in Fee - - - - 27.061 27,602 29,154 28.717 29.291 29,977 30,475 31.084 31.706 32,340 32,987 33.647 3M1,320 Trustee Fee - - - - 4.000 4,000 4,000 4,000 4.000 4,000 4,000 4,000 4.000 4,000 4,000 4,000 M1.000 TOTAL PROCEEDS IF WNDED 377,648 381,564 354,458 357,911 361,394 364,906 368,447 372,018 37S,619 379,250 382,911 396,603 390,325 394,077 397,861 - - 75.530 76,313 77.104 77,903 79310 79.525 80.349 81,179 82,019 82.867 83.723 84,589 85,462 86.345 87.236 17 ATTACHMENT 5ba: PRELIMINARY PLANS & RENDERINGS SITE AND LANDSCAPE PLAN mlau,ITrr 700SOUTH SALT LANE CITY CITY DATA-CO ZONE CM CO01 CM.TIL2I.OM ED,S PLACE 1 ullolCARurzRcul ET I M,. bp,SSP TKpS— PRorao w9wwmwz PIIONTYMOYIfuk nsn UIRfF• Ro«v.Ro PWSTCOMM0/ >RS�I•fTSSf AiF•A• ROdI10MN IDlp SMOY SSSISSIOOMK 4 IMIOIG9PIrMS9 YOx1tl MI.•WSM 1-. OIKgPD010 PWITCOrIMSS 9law•s.iM9M 1mv.— IISIOSIS MIpMI PRY IMIOSOARIMA SOIPSF . IOIIJ OIIOIN 1011IMARSILA R 0 1,S1b e< 1pYlVMOn,�1911 0 pxls oRx;lVOiFlOxcs lol nxw��x.stxr 4M WAPI:PARK STRIP 101. SIOIRIM PSOVDIO .❑T OT STIISITTI—TASSPSK 90 0T 91>I90•q M 1 -S QhA.-W.YS wovlpo InrroMrulo Tx+anx r.RK- ns .Fou�cFonwxTaowRPa In•uooa t,wlP•9n O `•zs" - if @� m�m�-- �II rla.law.0 rRK� Iw FKaTrumPwnna RETAIL Ty. ;�•cT;,""k . �xa�"�r«aun .w.M. soo. PARKING cw.M. ma. t •� y —I 9.�sn WF __ ____ _..«1___ I •e�1 _-- - n,. r:1 w I.woscnPs vino 1.n.n.a.a1 a. � orlox.l ti p s'F'• All oirbx..Pl.xnxo I IaP I HIDE RETA L/ _ > FOOD&BEVERAGE ® m 61 MxIP rx� P,Ix—PPL.x— xw FourwlnxoscnPE. I"r"'� -�„� ^^°� "SEE—«aWxFoxIFFOP9aCKx,aF9 AID N9rP1P1,ax ¢ PICKLE RETAIL/ 4P FOOD&BEVERAGE PulxsrxiP.xens a ®' FUTURE BUILDING SCOPE v.n(9rRly PlAxriNO O T I << I CONNECTIVITY TO KILBY COURT I Pickle& Hide-Site and Landscape Plan 18 ATTACHMENT 5b: PRELIMINARY PLANS & RENDERINGS HIDE FLOOR PLANS f DRAFT 4 4 o 0 mom tII ^l 4 `lt - - tt -I 'nenL.xosgspinl � -�� Pickle i Nkle- With Und avnrl;ibildy and uli pbrl t y�irc sublet(to chrnl,)r.without.ipprovul Lan tluo uny pnisdictional agency based on compliance with(hc I;ur Ilousng A c....snnc pi-Ilduri0o................ IuucmunL..and Ihu pn....I ul!mn holdcis.All nppfic;dams Of I iuvwwud 1 ui accordance wilt)thosu cntona.Ghangos in a"W"bdity inriy uccw depending on those lucfnrs rind may affect unit assignments. ,1 OV BUILDING PLAN-LEVEL I e 110 8 OxIxMlIlO011 PLW NONP I� DRAFT xae�»P• Olt J� h• y .- '�. • xa l JI O IL-+ �c - socewusmno� O ® wCxIL•xro.W ®Mlgq•Y1YMLaY6i ��_� ® w• .a 5 �" fs.V1M a �rrw�Fr=...a nivrrc Pickle i IIIG- No1M Unit availabilityand eligibility are subject to change without approval from the an jurisdictional a enc based on compliance (lance 9 Y / 9 PP YI g v with the Fair Housing Act,income qualification requirements,and the priorities of lien holders.All appbrurons will be reviewed i in accordance with these criteria.Changes in availability may occur depending on these factors and may affect unit L assignments. Q 1 OVL__UUUILDINO PL -LEVEL2 A112 i AN 19 mm m o© s � a c c o 0 0 ` m - _.s o - © c c „ o. B C G o. B C G ` � �tie t to r e oe�lwrwon1wl�wo. 4 DRAFT aoo N Nda�v PIOYN�MIA�- UNd } Unit availability and eligibility are subject to change without approval from the any jurisdictional agency based on compliance �»w+• with the Fair Housing Act.income qualification requirements,and the priorities of lien holders.All applications will be reviewed in accordance with these criteria.Changes in availability may occur depending on these factors and may affect unit assignments. Q r10VTLL BUILDING PLM-LEVEL 6 Allb 22 ATTACHMENT 5c: PRELIMINARY PLANS & RENDERINGS HIDE ELEVATIONS Phase I--H-ide Elevations .... - - - ,.o mmm T 4OVERALL BUILDING ELEVATION-WES ----- --------------— - - - a - - -—- - - ji - - — - - - 1 n z -—- -—-—- ---------------- — 1 3 C OVERALL BUILDI ELEVATION-EAST NG ) 0) 0) Y•Y _ _ _ _ _ _ _ _ _ _ _ _ _ s E t it �. OVERALL BUILDING ELEVATION-SOUTH — — ——-—-—-—-—- -- — —— �..... - m - - - - m - - - - - 1,. KEY PLAN TM A �. rm OVERALL BUILDING ELEVATION-NORTH 1 Phase I- Hide Elevations 23 1 1 � A v _ 1 4e - ° D D D ° ° NM ��o °. ♦ ♦ DAD.° °_ t �..�y♦\ `' ° ° .rmg�b�r. IVA 500 // Ell z= �i E % On /� /i ..,� .. . . . . ... . : .�.. .. -. . Be ON login r ism , lir in 0 ism imm in Nino RMUMS Ilk 7 NJ a s L ��■ woo 411 AP- . . ... . . . . .. 1 1 • qr • � '• � 'iRb q. } 1 l � - L' �' :•.\ 1� ,fir R �Z �:' yam• �ld� �'+y'1"h � e\t e4. e,: — ATTACHMENT 6: ENERGY STAR SCORE CARD ENERGY -@Statement of Energy Design Pickle and Hide- North LEARN MORE AT energystar11 Primary Property Type:Multifamily Housing Gross Floor Area(ft2): 138,235 92 Estimated Date of Certification of Occupancy: Date Generated:July 02,2024 ENERGY STAR® Design Score 1.This form is required when applying for Designed to Earn the ENERGY STAR recognition.it was generated from ENERGY STAR Portfolio Manager. 2.The ENERGY STAR 1-100 Score is based on total annual Source Energy.To be eligible for Designed to Earn the ENERGY STAR recognition you must score at least 75. Property Address Project Architect Owner Contact Pickle and Hide-North _ 739 S 400 W Salt Lake City,UT 84101 Salt Lake City,Utah 84101 Property ID:35049732 Architect Of Record Property Owner LJ- Estimated Design Fuel Type Usage Energy Rate($/Untt) Electric-Grid 1,401,612 kWh(thousand Watt-hours) $0.11/kWh(thousand Watt-hours) IEWlate the 1-100 ENERGY STAR Score. Multifamily Housing Retail Store Number of Laundry Hookups in Common 0 *Number of Workers on Main Shift 5.63<--default Area(s) value Percent That Can Be Cooled All of it-100% *Percent That Can Be Cooled All of it-100% Common Entrance Yes E default Number of Computers 1.13<--default value value Resident Population Type No specific Length of All Open or Closed Refrigeration/ 0 Ft.<-default resident Freezer Units value population *Number of Residential Living Units in a 0 *Number of Walk-in Refrigeration/Freezer 0<-default valt. Low-rise Building(1-4 stories) Units *Total Number of Residential Living Units 141 Number of Cash Registers 1.69<--default value Number of Laundry Hookups in All Units 141 Cooking Facilities No *Number of Bedrooms 167 *Number of Open or Closed Refrigeration/ 0<-default vale. Freezer Units *Number of Residential Living Units in a Mid-141 *Weekly Operating Hours 65<--default rise Building(5-9 stories) value Percent That Can Be Heated All of it-100% *Percent That Can Be Heated All of it-100% *Gross Floor Area 132,603 Sq.Ft. *Gross Floor Area 5,632 Sq.Ft. *Number of Residential Living Units in a 0 *Exterior Entrance to the Public Yes High-rise Building(10 or more stories) EPA Form 5900-22 Page 1 of 4 Statement of Energy Design Intent(SEDI)for Pickle and Hide-North Generated On:710212024 27 Government Subsidized Housing No Single Store Yes Area of All Walk-in Refrigeration/Freezer 0 Sq.Ft. Units Parking Partially Enclosed Parking Garage Size 0 Sq.Ft. Open Parking Lot Size 0 Sq.Ft. -,'rCompletely Enclosed Parking Garage 38,777 Sq.Ft. Supplemental Heating No Metric Design Project Median Property Estimated Savings ENERGY STAR Score(1-100) 92 50 N/A Energy Reduction(from Median)(%) -30 0 N/A Source Energy Use Intensity(kBtu/ftz/yr) 96 138 42 Site Energy Use Intensity(kBtu/ft2/yr) 34 49 15 Source Energy Use(kBtu/yr) 13,390,438 19,123.382 5.732.944 Site Energy Use(kBtu/yr) 4,782,299 6,829,780 2.047.481 Energy Costs(S) 151,374 216.182 64,808 Total(Location-Based)GHG Emissions(Metric Tons 405 579 174 CO2e) EPA Form 5900-22 Page 2 of 4 Statement of Energy Design Intent(SEDI)for Pickle and Hide-North Generated On:7/02r2024 28 ATTACHMENT 7: CARBON AVOIDANCE V Project Pivot, LLC I ProjectPivot.net 3645 SE Glenwood Street Portland, OR 97202 T: 503.519.3513 January 30,2025 Re:345 WesVPickle&Hide Carbon Avoidance Blaser Ventures 386 West 500 South Suite 100 Salt Lake City,UT 84101 Please find the following analyses,calculating the estimated carbon savings from reusing specific components from existing buildings. 345 West 700 South Using the Carbon Avoided Retrofit Estimator(C.A.R.E.)tool.our team established an estimate of the avoided embodied carbon emissions found by choosing to reuse and remodel the existing building instead of demolishing and building new. Structural System Reuse Extent of Structural Reinforcement or Replacement with no Lateral Upgrade.50% Envelope Reuse Exterior Walls with Minor Repairs and Added Insulation Window Replacement: 100% Roof Replacement. 100% Interior Reuse Interior Finish Replacement. 96% Interior Wall Removal. 2% MEP Reuse Major Replacement.100% Total Embodied Carbon Emissions Avoided: 57.5 metric tons CO2e Please note,the modeled timeframe is 25 years,calculations are cradle to gale and do not include operational carbon. Hide Buildina Facade By reusing the surface area of 3,950 sq It of existing brick facade the Hide building,the project is estimated to avoid 15.44 metric tons of CO2e emissions.The calculation assumes if the facades had been demolished and concrete foundation walls using a 5000 psi @ 28 days mix with 40%fly ash would have been built in these areas. Using calculations from the Project Architect and General Contractor.retaining the existing facade,saved the equivalent of 62 cubic meters of concrete.Data from EPD#10294(At-A3)confirms 248.98kg of CO2 per cubic meter (or 0.249 metric tons) Avoided carton in additional concrete:62 cubic meters'0.249=15.44 metric tons CO2e Additionally,the existing 100-year-old bricks contain their own embodied carbon.EPDs for this product do not exist. However.using the Industry Wide North American Brick EPD10447(A1-A3)as a baseline.the embodied carbon impact of the existing brick can be estimated.Data from the EPD confirms 0.503 metric tons CO2e per cubic meter of brick.(500 standard bricks in 1 cubic meter)37 cubic meters of existing brick is remaining 3.950 sq ft of facade. Embodied carbon in existing brick:37 cubic meters'0.503=18.61 metric tons of CO2e Julie McEvoy Baines,AIA,LEED BD+C.WELL AP Partner+Sustainability Consultant+LCA Specialist Project Pivot.LLC juliemb@projectpivot.net (503)519.3513 'agu 1 j'2 29 . Project Pivot, LLC I ProjectPivot.net 3645 SE Glenwood Street Portland,OR 97202 T:503.519.3513 Resources Carbon Avoided Retrofit Estimator:https:/twww.caretool.org/ EC3 Embodied Carbon Construction Calculator:https:I/buildingtransparency.org/ec3)industry-epds/ec36sjpn The Brick Industry Association Industry Wide EPD:https:llwww.gobrick.com/contentluserfiles/files/EPD10447.pdf National Ready Mix Concrete Industry Wide EPD:https:llwww.astm.org/products-services/certification/environmental- prod uct-declaratio nslepd-perlepd-national-ready-mixed-concrete.html EPA Greenhouse Gas Equivalencies:https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator Brick Calculator Tool:httpsl/www.brickworkssupply.com/inspiration-resourceslbrick-calculator 'ayu 2 j'2 30 ®� ® I S L C C R A CRA FINANCE COMMITTEE MEETING MEMORANDUM Tax Increment Reimbursement Request for Pickle & Hide (Blaser Ventures) Meeting: Wednesday, February 12, 2025, City and County Building, Room 115 DATE: February 12, 2025 TO: CRA Finance Committee 1. Community Reinvestment Advisory Committee: Amy Rowland 2. Community Reinvestment Advisory Committee: Baxter Reecer 3. Economic Development: Peter Makowski(or alternate) 4. Finance: Mary Beth Thompson(or alternate) 5. Community Reinvestment Agency: Danny Walz(or alternate) 6. Community and Neighborhoods: Tammy Hunsaker(or alternate) 7. Housing Stability: Tony Milner(or alternate) FROM: Lauren Parisi, Senior Project Manager RE: Tax Increment Reimbursement Request for Pickle&Hide Mixed-Use Development at 739 S. 400 West in the 900 South Housing and Transit Reinvestment Zone I. EXECUTIVE SUMMARY: Blaser Ventures operating as Mountain West Development,LLC("Developer")has requested a tax increment reimbursement for Phase I and II of the Pickle&Hide development located at approximately 739 S. 400 West in the 900 South Housing and Transit Reinvestment Zone ("HTRZ"). HTRZs are a relatively new type of project area intended to promote affordable housing opportunities and transit-oriented development. This project generally meets the goals of the State's HTRZ policy as well as the Community Reinvestment Agency's (CRA) HTRZ program. If approved,the Developer will receive a percentage of the tax increment generated from its project for a specified timeframe. The CRA has proposed the terms of a Reimbursement Agreement under Attachment A. The terms have been provided for consideration and recommendation by the CRA Finance Committee("Committee"),with the Committee's recommendation to be forwarded, along with the Developer's request,to the CRA Board of Directors("Board"). II. PROJECT OVERVIEW The Pickle&Hide development is a mixed-use project located in the city's Granary District and 900 South HTRZ to be constructed in two phases.Phase I features the renovation of the 1919 Bissinger Co. Hides building(Hide)including the preservation of its front facade and 40%of the exterior walls.The historic facade will serve as the entry to 5,500 square feet of commercial space and a new,multifamily addition. The addition includes 141 multifamily units and a 3-story parking structure with 164 stalls. Per HTRZ requirements, 20%of the units (28)will be affordable at 60%the Area Median Income(AMI)and below. An additional 18%of units (26)will be affordable at 80%AMI and below. The units will vary in size from studios to two-bedrooms. Phase II of the project includes the renovation,restoration and replication of the 1894 Utah Pickle Co.building(Pickle) into 14,500 square feet of retail space. The restoration plan includes preserving a significant portion of the building's front facade, extensive reuse of the original bricks for both the exterior and interior,repurposing the sandstone foundation, and replicating the building's original footprint. The building located at 345 W. 700 South known as Ed's Restaurant will also be renovated for commercial space as part of Phase II. Both Phases are estimated to be completed in June of 2026. The total project cost is approximately $90,356,229. III. TAX INCREMENT BUDGET Per State Code, CRAB are permitted to receive up to 80%of the tax increment generated. Based upon the taxable value of the proposed development,the CRA is projected to receive approximately 6,909,585 in tax increment from Phases I and II of the development over a 15- year period. Of this amount,the Developer is eligible to receive 90% as a reimbursement up to a maximum of$6,094,254.Annual tax increment projections are broken down within the tax increment budget under Attachment D. IV. POLICY ALIGNMENT The project incorporates multiple public benefits centered around affordable housing opportunities, adaptive reuse, sustainability,enhanced safety and walkability, and increased activation. Regarding the Utah State Code Section 63N-3-60: Housing and Transit Reinvestment Zone Act,this project generally aligns with the State's overarching objectives as listed below. The State HTRZ Committee also conditioned their approval of the 900 South HTRZ to require that 20%of housing within the project area is affordable at 60%of the AMI and below, which this project achieves.A complete review of State Code requirements can be found under Attachment B. a) higher utilization of public transit; b) increasing availability of housing,including affordable housing,and fulfillment of moderate income housing plans; c) promoting and encouraging development of owner-occupied housing; d) improving efficiencies in parking and transportation,including walkability of communities near public transit facilities; e) overcoming development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives; f) conserving water resources through efficient land use; g) improving air quality by reducing fuel consumption and motor vehicle trips; h) encouraging transformative mixed-use development and investment in transportation and public transit infrastructure in strategic areas; i) strategic land use and municipal planning in major transit investment corridors as described in Subsection 10-9a-403(2); j) increasing access to employment and educational opportunities;and k) increasing access to child care. Regarding the CRA's HTRZ Tax Increment Reimbursement Program Policy(see Attachment B for staff review),the proposed project meets most all of the threshold requirements including incorporating at least 10%of housing units at 60%AMI,activated ground-floor uses, and providing sufficient evidence of a funding gap. It does not meet the Sustainable Development policy in its entirety and is requesting a waiver from portions it does not meet. 2 The project includes three additional public benefits above and beyond the policy's thresholds,which increases the project's reimbursement rate by 10%per benefit for a total of 90%. These additional benefits include 1) adaptive reuse; 2)walkability where the applicant must provide evidence of a new pedestrian connection accessible to the public and enhanced streetscape; and, 3)neighborhood and commercial services,which is one of this year's annual housing funding priorities to ensure services and amenities like retail and restaurant spaces are incorporated in housing projects to serve the residents that live there. The Developer has submitted a draft of the midblock walkway easement agreement that grants the City and the public perpetual access to the walkway for the purpose of pedestrian ingress and egress. Funding Gap. The Developer has described a funding gap of over$10 million due to the lower rental revenue from affordable housing units and increased construction costs to preserve portions of the Pickle and Hide buildings. Incorporating affordable housing into the development decreases the project's cash flow by approximately$300,000 a year($4.5 million over 15 years)and the overall residual value by$6 million. The development is not supported by low- income housing tax credits that could help make up for this difference. The substantial concrete reinforcement required by building code to support 12 housing units constructed above the existing Hide building increased the cost per unit by$150,000 or$1.8 million total. The restoration of 40%of its historic exterior increased project costs by$1.7 million. Similarly,retaining significant portions of the Pickle building is estimated to cost approximately$550 per square foot for the ground floor, as opposed to $250 per square foot for new construction. This brings the total increased cost to preserve portions of the Pickle and Hide buildings to $5.5 million. The Developer has also stated that obtaining a tax increment reimbursement from the 900 South HTRZ is needed by their senior lender and preferred equity investor to achieve the cashflow necessary to hit required funding metrics. The Developer will also defer 50%of their development fee to meet these metrics. Policy Waivers. The Developer has requested a waiver from the CRA's HTRZ Tax Increment Reimbursement Program Policy to reduce the affordability period from 30 years to 15 years. This project is not supported by low-income housing tax credits that reduce the need for long-term debt and lower debt services payments making affordable rental rates sustainable for longer. Because the term of the HTRZ is 15 years,the developer has asked that the affordability period be reduced to match the term of the subsidy to ensure the project's financial feasibility. State Code requires an affordability period of 15 years. The Developer has also requested two waivers from the CRA's sustainable development policy. • The policy requires projects to operate without on-site fossil fuel combustion or be all-electric with the goal of being powered by renewable energy sources in the future. The Developer has stated that the restaurants they have been working to attract will require natural gas for cooking purposes stipulating: Tenant 1: "Landlord to provide gas line and gas meter stubbed into the tenant's space with a one and a half inch (1.5') line. Gas service to be a minimum of 1,700,000 BTU." 3 Tenant 2: 'A minimum of a 2"medium-pressure gas line stubbed to an agreed-upon location within the Premises...The PRY to be installed to bring from medium(2 psi) to low(114 psi)pressure." • The policy also requires that projects receiving a tax increment reimbursement must meet on-site or off-site net zero requirements. On-site net zero requires that on-site solar be installed to support the project's energy needs. The Developer has sufficiently documented the lack of space to install solar panels with roof plans and stated— "To fully offset 1,400,000 kWh, approximately 4 acres of solar panels would be needed, which is infeasible given site constraints." However,the policy allows for another pathway to achieve net-zero goals by participating in a renewable energy credit program like Rocky Mountain Power's Blue Sky program. This program allows customers to purchase"blocks"of renewable energy that, in turn, support the development of renewable energy sources in the Mountain West. The Developer believes that participation in this program is costly and has limited environmental impact. Staff recommends that the Developer be required to participate in this program at a level to cover the energy needs of the Hide building's commercial spaces, common areas and parking garage,which equate to $350 a month and be made a condition of approval. In lieu of meeting the sustainable development policy outright,the Developer has described different sustainable building measures they have taken within their application. According to the Carbon Avoided Retrofit Estimator or the CARE tool,the total amount of embodied carbon avoided by preserving portions of the building vs.rebuilding equates to 57.7 metric tons. V. APPLICANT INFORMATION The tax increment reimbursement request is being coordinated by Blaser Ventures, a Salt Lake City-based real estate developer with experience in urban mixed-use development, affordable housing,adaptive reuse and industrial projects. They currently have over 400 affordable units(20-80%AMI)under various stages of design and development.A significant portion of their commercial space is also reserved for supporting small, local businesses,non-profits, and other historically underserved and minority-owned businesses. Some of their notable projects include the Post District adjacent to Salt Lake City's downtown and the Silos mixed-use development that incorporates affordable housing. VI. ATTACHMENTS a. Term Sheet b. Policy Alignment c. HTRZ Map d. Tax Increment Budget e. Project Application 4 ATTACHMENT A: Mountain West Development,LLC Tax Increment Reimbursement Agreement TERM SHEET Parties: Mountain West Development,LLC("Developer") and the Community Reinvestment Agency of Salt Lake City("CRA") Scope: The Pickle and Hide development is a mixed-use project located in the CRA's 900 South HTRZ to be constructed in two phases located at approximately 739 S.400 West. Phase I includes the renovation of the Bissinger Co. Hides building,including the preservation of its front fagade and a portion of its side walls for a total of 40%of the exterior,to accommodate 5,500 square feet of commercial space and a multifamily addition to the rear. The residential addition will include 141 units,28 of which are affordable at 60%of the area median income(AMI)and below and 26 of which are affordable at 80% AMI. Phase 11 includes the renovation of the Utah Pickle Co.building to accommodate 17,000 square feet of commercial space as well as the renovation of the existing building known as Ed's Restaurant located at 345 W. 700 South for additional commercial space. Each of the buildings include an activated ground floor use where at least 50%of the ground floor, street- facing building facades contain an active use not exclusive to building tenants. The Developer has provided sufficient evidence that tax increment is necessary for the project to succeed to subsize a portion of revenue loss from affordable rental rates and increased buildings costs associated with adaptive reuse projects. Property: Developer desires to carry out development activities on three existing parcels including P.I.N.s: 15-12-130-037, 15-12-130-034, and 15-12-130-03. Legal descriptions to be included within final agreement. CRA Participation: The CRA will agree to reimburse the Developer 90%of the annual tax increment("TI")the CRA is entitled to receive from the taxing entities, subject to the terms of the Reimbursement Agreement, for a term of 15 years or the sum of the remaining collection years of the Housing and Transit Reinvestment Zone,whichever is less. To obtain this 90%reimbursement,the project has included three additional public benefits above and beyond the CRA HTRZ Tax Increment Reimbursement policy's thresholds,each worth an additional 10% reimbursement including: 1)Adaptive Reuse 2)Walkability 3)Neighborhood Commercial and Services (FY25 annual housing funding priority) Maximum Reimbursement The maximum amount available for reimbursement shall be $6,094,254("Maximum Reimbursement"). The annual TI Payment may be lower or higher than the projected amount based on actual increment generated from the Property,provided,however,the maximum total amount of the Reimbursement shall not exceed the Maximum Reimbursement. CRA Policy Waivers 1. Section 2.c.i. of the CRA's HTRZ Tax Increment Reimbursement Program Policy that requires a deed restriction be recorded against the property to ensure housing affordability for a minimum term of 30 years may be waived and reduced to a minimum term of 15 years. 5 2. Section 3.a.b. of the CRA's Sustainable Development Policy that requires emission-free building operation for all adaptive reuse projects receiving over$900,000 in CRA funding may be waived for the designated restaurant spaces in Phase I and Phase II of the project to accommodate gas stovetops. The rest of the project must comply with the policy and operate without on-site fossil fuel combustion. 3. Section 4.a.ii. of the CRA's Sustainable Development Policy that requires projects to achieve "on-site net zero"operation may be waived; however,the project must achieve"off-site net zero" standards in this requirement's place at the level described as part of the conditions of approval. Conditions for Agreement Execution: l. CRA approves all terms of the agreement. 2. Developer must submit a Statement of Energy Design Intent for both the"Pickle"and"Ed's Restaurant"buildings achieving a score of 90 or higher. 3. Developer must participate in Rocky Mountain Blue Sky renewable energy program at a level to cover energy needs for the commercial space, common areas, and parking garage a part of Phase I of the project for a minimum contribution of$350 a month. 4. Developer must submit a copy of the executed easement granting public access to the midblock walkway between the Pickle and Hide building. 5. Developer obtains all required City approvals. 6. Developer and CRA execute legal documents as deemed necessary by the CRA and its legal counsel. 7. Developer receives approval from the CRA and its legal counsel of all matters pertaining to title, legality of the request, and the legality, sufficiency, and the form and substance of all documents that are deemed reasonably necessary for the transaction. 8. Such other terms as recommended by the CRA's legal counsel and staff. 6 ATTACHMENT B: CRA HOUSING AND TRANSIT REINVESTMENT ZONE (HTRZ) POLICY ALIGNMENT PICKLE AND HIDE COMMUNITY REINVESTMENT AGENCY OF SALT LAKE CITY HOUSING AND TRANSIT REINVESTMENT ZONE TAX INCREMENT REIMBURSEMENT PROGRAM POLICY 2.0 Requirements and Structure SECTION I DESCRIPTION PICKLE AND HIDE APPLICABILITY a.Threshold requirements of projects that incorporate housing: i. Projects must meet all applicable standards Yes,20%of 28 of the 141 residential units will be affordable and objectives of the HTRZ Act and the at 60%AMI and 18%or 26 of the units will also be approved HTRZ(per the State's condition of affordable at 80%AMI. approval, the 900 South HTRZ requires 20% of housing units be affordable to 60%the Area Median Income AMI-and below). ii. At least 10%of housing units within a Yes,20%of 28 of the 141 residential units will be affordable project must be affordable to those at 60%AMI and 18%or 26 of the units will also be earning 60%the AMI and below,or,20%of affordable at 80%AMI. units must be affordable to those earning 80%AMI and below. iii. Projects must include activated,ground floor Yes,the ground floor of the Hide building includes a lobby space if not a private residence. and commercial uses,the Pickle building includes Activated,ground floor space means a commercial uses,and Ed's Restaurant will be a commercial minimum of 50%of all ground floor, use.There is also a midblock walkway between the Pickle street-facing building facades must contain and Hide building open to the public and activated with an active(commercial,retail,or outdoor dining. office)use that is not exclusive to the tenants of the building. iv. Projects must comply with the RDA's A waiver from the sustainable development policy is being Sustainable Development Policy including: requested including: • ENERGY STAR score of 90+ 1. Utilizing natural gas for restaurant spaces in the • All-electric buildings Pickle and Hide buildings. • On-site solar,OR,participation in 2. Installing on-site solar and participating in Rocky Rocky Mountain Blue Sky Mountain Blue Sky. Staff recommends the condition of approval that the developer participates in Rocky Mountain Blue Sky at a level to cover energy needs for the commercial space,common areas,and parking garage. V. The applicant must provide sufficient The Developer has described a funding gap of over$10 evidence(including,but not limited to million due to the lower rental revenue from affordable the project pro forma,senior lender housing units and increased construction costs to preserve agreement(s),equity investor agreements, portions of the Pickle and Hide buildings.They state: "the etc.)that tax increment funding is necessary HTRZ credits are a requirement for both the Senior Loan and for the project to succeed and to Preferred Equity as well as being essential to achieve the verify that the request is reasonable. cashflow necessary to support the conservative leverage from the Senior Loan and the alternative financing (Preferred Equity). Without the full 90%HTRZ credits, the project would not be able to move forward with the necessary Senior Loan($45M and Preferred Equity($10.3AP.In order to meet the Preferred Equity return hurdles,Blaser Ventures 7 is forgoing—50%of its development fee on top of the cash ow that is comingfirom theproperty and HTRZ credits." c.Affordable housing requirements i. Deed Restriction—If the project qualifies A waiver is being requested to reduce the deed restriction's for a Reimbursement based on the affordability period from 30 to 15 years. incorporation of housing,prior to executing an Agreement,a restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for at least 30 ears. I Bedroom Count Mix—The affordable units Yes,the applicant has submitted floor plans illustrating a mix shall be located on different of unit sizes and confirmed that affordable units will not be floors of the building and spread among clustered in one location.The bedroom count mix is as bedroom counts(1-bedroom,2- follows: bedroom,3-bedroom,etc.)in the same Affordable Units:28(20%)at 60%AMI proportion as the units available • Efficiency/Studio Units:4(11%) within the rest of the project. • 1 Bedrooms: 19(70%) • 2 Bedrooms:5(18%) Affordable Units:26(18%)averaging 80%AMI • Efficiency/Studio Units:3(11%) • 1 Bedrooms: 18(70%) • 2 Bedrooms:5(18%) Market Rate Units:87(62%) • Efficiency/Studio Units:9(11%) • 1 Bedrooms:62(70%) • 2 Bedrooms: 16 18% d. Eligible Project Locations— Yes,the project is located in the 900 South HTRZ. Eligible projects shall be located in or associated with an active HTRZ that allows tax increment reimbursements pursuant to the HTRZ Act. e. Maximum Reimbursement Term— The reimbursement term is 15 years beginning in 2026. The Reimbursement term will be negotiated based upon a project' s level of public benefits and demonstrated financial need and shall be consistent with the HTRZ Act. f. Maximum Reimbursement Rate— In addition to meeting the threshold requirements to achieve Base level=60% the base level reimbursement of 60%,the project also meets Projects may be eligible to receive an the three following requirements to achieve a 90% additional 10%increase in the reimbursement rate. reimbursement rate for meeting elements 1. Building preservation,rehabilitation,or adaptive listed below,with each element being worth reuse livability benchmark that requires the an additional 10%.The possible total preservation,rehabilitation,or repurposing an maximum reimbursement rate is 90%. existing structure for a land use that contributes 1. Incorporating Qualifying Livability positively to the surrounding neighborhood. Benchmarks in the project beyond the 2. Walkability livability benchmark that requires the Threshold Requirements. project improves the vibrancy,safety,and/or comfort 2. Providing an additional 10%of total of the pedestrian experience by providing at least affordable units at 60%AMI and below two of the following: beyond the Threshold Requirements. . New,publicly-accessible accessible pedestrian 3. The inclusion of 3-and 4-bedroom units p y- in projects that incorporate housing. connections; 4. Meeting a priority identified in the • Significant improvements to an existing CDA's Annual Housing Funding sidewalk or walkway such as pedestrian- Strategy established pursuant to the scaled lighting,seating,landscaping and Housing Allocation Funds Policy. shade;or, • Significant street level building 8 transparency and activity 3. Annual housing funding strategy priority—the project meets the FY25 priority of"neighborhood and commercial services"described as promoting an array of commercial spaces that support the neighborhoods,such as daycares,restaurants,and retails aces,which this development includes. g. Maximum Reimbursement Amount— The maximum reimbursement amount is$6,094,254. The maximum reimbursement amount will be negotiated based upon a project' s eligible costs,level of public benefits,and demonstrated financial need,and shall be consistent with the HTRZ and HTRZ Act. State of Utah-Housing and Transit Reinvestment Zone Act 63N-3-603. Applicability,requirements,and limitations on a housing and transit reinvestment zone. SECTION DESCRIPTION PICKLE AND HIDE APPLICABILITY (2)(a)In order to accomplish the objectives described in Subsection(1),a municipality or public transit county that initiates the process to create a housing and transit reinvestment zone as described in this part shall ensure that the proposal for a housing and transit reinvestment zone includes: i.(A) Up to 9%of the proposed dwelling units 18%or 26 of the units will also be affordable at 80%AMI. occupied or reserved for occupancy by households with a gross household income equal to or less than 80%of the median gross income of the applicable municipal or county statistical area for households of the same size. i.(B) At least 3%of the proposed dwelling units 20%of 28 of the 141 residential units will be affordable at occupied or reserved for occupancy by 60%AMI. households with a gross household income equal to or less than 60%of the median gross income of the applicable municipal or county statistical area for households of the same size. ii.(A) At least 5 1%of the developable area within Yes,more than half of the project's square footage or a housing and transit reinvestment zone as approximately 228,000 square feet is dedicated to residential residential uses. use. ii.(B) An average of at least 50 dwelling units per Yes,the project achieves a residential density of 56.4 units acre within the acreage of the housing and per acre. transit reinvestment zone dedicated to residential uses. iii. Mixed-use development. Yes,this is a mixed-use project with residential,retail and restaurants ace. iv. A mix of dwelling units to ensure that a Yes,this project includes a mix of studios, 1-bedroom and 2- reasonable percentage of the dwelling units bedroom units, 18%being 2-bedroom units. has more than one bedroom. 9 W ATTACHMENT C: W9Q05: Ll _ - HTRZ BOUNDARY 10 1 � Jeffe�_�_•' -- k Haivad Av T ATTACHMENT D: Tax Increment Budget J-252— 2026 2o21 202. 2.21 2,030 2031 2032 2033 2034 a35 036 o3T o3 039 040 041 YEAR 0 1 2 3 4 5 6 T >! 9 10 11 12 13 14 15 16 Taxable value - - 85 56,656,945 49 142pee 2022 T..able V I.. - - 2022 ent beforeiaFees - - LessTaxCollectionLoss - 10,923 11,036 11,150 11,266 11,383 11,501 11,620 11,740 11,861 11,984 12,108 12,233 12,359 12,487 12,6 CRAent Daher 80%red—.) less Ad—Fee - 92 Ad $563 8652 e,ld2 8,833 8,926 9,016 9,110 9,— 9,299 1,31 9,492 9,591 9,690 9,— 9,8 otal Increment - - eta!Co...E. Bond Admin Fee - - - - 11 ATTACHMENT E: Project Application 12 BLASER VENTURES Salt Lake City Community Redevelopment Agency Danny Walz 451 S State St Salt Lake City, UT 84111 January 31, 2025 Dear Danny, We are pleased to submit our application for the Housing and Transit Reinvestment Zone (HTRZ) tax incentive program, a vital component to realizing our vision for a transformative mixed-use development in the Granary District. This project aligns closely with the goals of both the City/CRA and the legislature to foster dense, mixed-use, walkable, sustainable, and community-focused development adjacent to the most transit-rich site in Utah. It further supports strategic planning initiatives by creating substantial housing opportunities, activating the area with vibrant commercial uses, and preserving its unique character through adaptive reuse of historic structures. To ensure the feasibility of the Pickle & Hide project and its contributions to the Granary District's revitalization, we respectfully request the following considerations: 1. Full 90% HTRZ Tax Incentive: The project's ambitious scope and commitment to public benefits such as historic preservation, activated public spaces, and affordable housing require significant financial support. The full allocation of the HTRZ tax incentive is essential to bridge the funding gap and ensure this development can move forward. 2. Waiver of the CRA's Net Zero Sustainability Requirement: We are deeply committed to sustainability and have incorporated a comprehensive set of measures to minimize the project's environmental impact, including: Adaptive reuse of historic structures, preserving embodied carbon and reducing construction waste. All-electric residential design, eliminating fossil fuel reliance for heating, cooling, and appliances. High energy performance, with the project achieving an ENERGY STAR score of 92 for new construction. Efficient design that maximizes energy conservation through passive strategies, including optimized building orientation, natural daylighting, and enhanced i insulation. Low-carbon materials that reduce embodied carbon and promote sustainable construction practices. Walkability and transit-oriented development, reducing car dependence and encouraging sustainable mobility choices. While these strategies significantly reduce the project's carbon footprint, achieving full net zero is not feasible due to the site's constraints—specifically, the inability to generate sufficient energy on-site and the financial burden of purchasing off-site credits. However, by prioritizing electrification, efficiency, and sustainable materials, we are taking meaningful steps toward a low-carbon, high-performance development that aligns with the City's broader climate goals. 3. While we strongly support sustainability principles, the unique site conditions make achieving net zero infeasible due to the inability to generate enough energy on-site and the financial burden of purchasing off-site credits. However, we are committed to incorporating high-performance materials, energy-efficient design, electrification of the site and adaptive reuse strategies that significantly reduce the project's environmental impact. 4. 15-Year Deed Restriction for Affordable Units: To match the tax incentive program's duration, we propose a 15-year deed restriction on the 20% affordable units at 60% AMI. This ensures long-term affordability while maintaining financial feasibility for the project. We want to note that this affordability is being created with the HTRZ as the only subsidy option. No tax credits or other subsidies are being utilized to create these units. The Pickle & Hide project exemplifies the vision of the HTRZ program and the Granary District Area Plan by promoting housing opportunities, activating the neighborhood with a vibrant commercial mix, and supporting transit-oriented growth. Approximately 60% of the development's land area is dedicated to housing, with nearly 40% of units as affordable, complemented by public spaces, retail, and adaptive reuse of historical structures. We are dedicated to working collaboratively with the CRA and Salt Lake City to establish a framework for this program that not only supports this project but also serves as a model for future developments in the Granary District. By working together, we can advance the area's transformation into a walkable, sustainable, and inclusive community that fully embraces the multitude of transportation options available in this area. ii Confidentiality Notice: Pursuant to Utah Code Ann. §§ 63G-2-305 and in accordance with Utah Code Ann. §§ 63G-2- 309, the undersigned asserts a claim of business confidentiality to protect the information presented in Attachments 1-3 as proprietary. The following reasons support this claim for business confidentiality: • Reason A: The information contains trade secrets as defined in Utah Code Ann. §§ 63G- 2-305(1). • Reason B: The information includes commercial or non-individual financial data as defined in Utah Code Ann. §§ 63G-2-305(2) and (4). Thank you for your consideration. We look forward to discussing this proposal further and are happy to provide additional information as needed. Sincerely, Brandon Blaser Founder & President Blaser Ventures 386 W 500 S, Suite 100 Salt Lake City, UT 84101 t. 214.235.8778 brandon@blaser-ventures.com iii RDA TIR/HTRZ Application Pickle and Hide (Phase I & II) I. PROJECT SUMMARY PARCEL NUMBERS: 15-12-130-037-0000 (Hide Apartments, 737 S 400 W) 15-12-130-034-0000 (Pickle Building, 741 S 400 W) 15-12-130-027-0000 (Ed's Place, 345 W 700 S) DATE: January 7, 2025 TOTAL PROJECT COST: Approx. $90,017,722 Phase I: $77,258,605, Phase II: $12,759,117 ESTIMATED FINANCIAL GAP: $6.1M of cash flow support over a 15-year term from HTRZ credits. The capital stack consists of$35M of Common Equity, $45M Senior Loan, $10.3M of Preferred Equity. The Senior Loan and Preferred Equity is contingent on the full requested HTRZ credits and the cash flow that this would bring to the project annually. Without these credits, Blaser Ventures would not be able to fill the capital stack and move forward with the project. TIMELINE - PROPOSED PROJECT START/END DATE: Phase I - February 2024/June 2026, Phase II — May 2025/June 2026 PROJECT ADDRESSES: 737, 739 & 741 S 400 W, 345 W 700 S, Salt Lake City, UT 84101 CONTACT: Brandon Blaser, Brandon@blaser-ventures.coi , (214) 235-8778 II. APPLICANT SUMMARY APPLICANT& OWNERSHIP: Mountain West Development LLC 386 West 500 South, Suite 100 Salt Lake City, UT 84101 Tax ID 35-2677318 III. DEVELOPMENT OVERVIEW PROJECT SUMMARY: Pickle & Hide is a new Granary District development that will be constructed in two phases. Phase I will include the new construction of 141 multifamily units, 5,500 square feet of ground floor retail, and a 3-story parking structure with 164 stalls. Phase I will also feature the renovation and preservation of 100% of the front fagade and 40% of the exterior of the historical Bissinger Co. Hides ("Hide") building, which will serve as the entry point for the multifamily and retail. In Phase II of the project, the historical Utah Pickle Co. ("Pickle") building will undergo an adaptive reuse renovation, restoration and replication and will be 1 repurposed as approximately 14,500 square feet of retail/commercial space. The Project will transform an area that has historically been the industrial/manufacturing hub of Salt Lake City into a dynamic mixed-use, mixed-income, adaptive reuse development interconnected with pedestrian-oriented walkways and public spaces. Ed's Place, a —2,500- square-foot beloved former restaurant on 700 S will also be part of the project's adaptive reuse. The one-story brick structure will be restored to its original fagade, abandoning the deteriorating, orange-shingled overhang and Italian flag striped canopy. CONSTRUCTION TYPE: Renovation/Rehabilitation of Existing Structures, Energy-Efficient Upgrades, New Construction, Select Demolition of Existing Structures. LAND AREA: 2.55 acres BUILDING AREA: Approx. 228,000 square feet, including 141 Mixed-Income Units, parking, amenities, 5,500 square feet Retail (Phase 1) and approx. 17,000 square feet Adaptive Reuse Commercial/Retail (Phase II) LAND USE MIX: 20% of the residential units will be affordable at 60%AMI per threshold requirement with an additional 18% averaging 80%AMI. The affordable units will be dispersed throughout the building and mirror the unit mix of the market rate apartments. Hide Apartments: • 141 Mixed Income Residential Units o Affordable Units: 28 (20%) at 60%AMI ■ Efficiency/Studio Units: 4 (11%) ■ 1 Bedrooms: 19 (70%) ■ 2 Bedrooms: 5 (18%) o Affordable Units: 26 (18%) averaging 80%AMI ■ Efficiency/Studio Units: 3 (11%) ■ 1 Bedrooms: 18 (70%) ■ 2 Bedrooms: 5 (18%) o Market Rate Units: 87 (62%) ■ Efficiency/Studio Units: 9 (11%) ■ 1 Bedrooms: 62 (70%) ■ 2 Bedrooms: 16 (18%) • 5,500 square feet Retail/Food & Beverage • 164 Parking Stalls (structured) Pickle Building (Adaptive Reuse) • 14,500 square feet Commercial, Retail/Food & Beverage • 12 Parking Stalls (surface) Ed's Place (Adaptive Reuse) 2 • 2,500 square feet Commercial • 60 Parking Stalls (surface) Public and Open Space • Public: —30,000 square feet— 22,000 square feet midblock connectivity and programmable outdoor space, 4,500 square feet for Pickle frontage, 2,500 square feet for Ed's sidewalk, 500 square feet Hide 400 W frontage • Retail Patio Outdoor Space: —4,500 square feet CURRENT AND PROPOSED ZONING: General Commercial, no proposed zone change IV. ELIGIBILITY PROJECT LOCATION: Granary District, 900 South HTRZ V. PROJECT OBJECTIVES 1. ALIGNMENT WITH MOST RECENT PROJECT AREA PLAN (Granary District Area Plan Vision and Goals): Alignment with Granary District Area Plan Vision and Goals Vision: To improve mobility and circulation for the Granary District by responding to development patterns, existing and future transit service, walking and biking connectivity, and public right-of-way opportunities. Goal 1: Foster Inclusive and Welcoming Community Connections • Community-Centric Public Spaces: The project has a recorded public midblock walkway easement, promoting outdoor public spaces that encourage social interaction and enhance neighborhood identity for all ages and abilities. This area will facilitate pedestrian connections from 400 W to 700 S as well as to Kilby Court and include approximately 20,000 square feet of accessible retail and restaurant space. Goal 2: Identify Gaps and Barriers for People Moving to and through the district • Enhanced Walkability: By adhering to the city's midblock walkway directive, the design prioritizes accessibility and walkability, creating an inviting environment that encourages residents to engage with their surroundings and each other. Goal 3: Define Transportation Opportunities • Support for Alternative Transportation: Streetscape enhancements, integrated midblock connectivity, secure bike parking, and real-time transit screens encourage walking, biking, and the use of alternative transit modes. With proximity to the Red, Blue and Green Lines, as well as the future UTA TRAX extension along 400 W, the project strengthens local and regional transit access. 3 • Integration with City and UTA Initiatives: The project is uniquely positioned within a network of transformative city and transit initiatives. The Green Loop project along 500 W, the Grand Boulevards initiative along 500 S and 400 S, and the new TRAX line on 400 W create a multi-modal, transit-rich environment that enhances connectivity and makes Pickle & Hide a pivotal component of the district's infrastructure. Goal 4: Develop a Blueprint for Collaborative Implementation • Building Preservation and Adaptive Reuse: Phase I includes the renovation of the historical 1919 Bissinger & Co. Hides building, preserving 100% of its front fagade and 40% of the brick exterior. Phase II will renovate, restore and replicate the 1894 Utah Pickle Co. building into 14,500 square feet of retail space. The restoration plan includes preserving a significant portion of the front fagade, extensive reuse of the original bricks for both the exterior and interior, repurposing the sandstone foundation, and replicating the building's original footprint. This adaptive reuse of the district's first industrial building constructed in 1894 by former LDS Church President Heber J. Grant. The building has served many roles over its 130-year history—from a soap factory to a pickle and condiment plant, and most recently, an arts and event space. The Pickle building will now be transformed into 14,500 square feet of retail and commercial space, maintaining its industrial charm. The original "Utah Pickle and Co."signage has been carefully preserved and will be refurbished to once again adorn the structure, honoring its storied past. Goal S: Engage Businesses and Residents about Needs and Opportunities • Public Art and Local Engagement: The project will showcase rotating art exhibits in the multifamily lobby. Additional opportunities exist in programming the public walkways and open spaces. These initiatives will engage the community, foster cultural authenticity, and attract visitors, enhancing the area's vibrancy. • Comprehensive Safety Strategies: By integrating neighborhood activation, thoughtful public space design, and improved connectivity, the project aims to create a safer community. Increased foot traffic, active engagement, and well-designed environments will contribute to a resilient and secure atmosphere, ensuring residents feel safe and connected. 2. TIR THRESHOLD REQUIREMENTS: • Affordable Housing Requirement of 20% of units averaging 60%AMI (900 S HTRZ): See Section III. DEVELOPMENT OVERVIEW - Land Use Mix—shows the development includes 28 units (20%) averaging 60% AMI and 26 units (18%) averaging 80% AMI. • Minimum Investment of$12 million in capital expenditures: The total project cost for Phase I and Phase 11 is $90,017,722 4 • Salt Lake City-based Business: Mountain West Development LLC is a Salt Lake City based business located at 386 West 500 South, Suite 100, Salt Lake City, UT 84101, the tax ID number is 35-2677318. The project is being led by Blaser Ventures the sponsor and developer of the project, a Salt Lake City based, community-focused development company. • Facility Improvement or Expansion: See Section VI. PUBLIC BENEFIT- Neighborhood Safety, Public Space/Public Art, Walkability, Historic Preservation • Job Retention and/or Job Creation: See Section VI. PUBLIC BENEFIT- Permanent Job Creation • Demonstrate TIR is Necessary for Project to Succeed See Attachments: Term Sheet(s) and Sources and Uses • Employ Sustainable Construction Practices: See Section V. PROJECT OBJECTIVE5, 5. Project's Sustainability 3. STATE HTRZ ACT REQUIREMENTS The information provided in this application demonstrates the project adheres to the central objectives of SB217 Housing and Transit Reinvestment Zone Act and subsequent amendments (SB140, S1384, & S13208) by: • Promoting greater utilization of public transit • Increasing the availability of attainable housing • Encouraging transformative mixed-use development and collaborative investment in transit and transportation in strategic areas • Maximizing available planning and economic development tools to strengthen and grow major transit corridors • Increasing access to employment and educational opportunities • Improving water conservation and air quality resources through efficient land use and better utilization of transit opportunities In addition, the project meets the HTRZ State requirements, more specifically: Land Area: The Project is within the required 1/3-mile radius of a commuter rail station, 900 South/200 West Blue, Green and Red Light Rail lines. �x? O = • - r' U -- „ fi 10 min — .. t .. r�. o.amn•• s- Housing and Mixed-Use: The mixed-use project provides approx. 22,500 square feet of retail/commercial, public walkways, bike paths and open spaces, and a total of 141 residential units or 56.4 units per acre, exceeding the 50-unit-per-acre minimum required. Housing affordability also exceeds the minimum requirement with 20% of the units at 60%AMI and 18% at 80%AMI for a total of 38% or 54 affordable units. The state requirement by comparison is 12% affordable with 9% at less than or equal to 80% AMI and at least 3% at less than or equal to 60% AMI (See Section III. Development Overview, Land Use Mix) 4. ESTIMATED TAX INCREMENT REQUESTED AND WHY IT IS NECESSARY FOR PROJECT'S SUCCESS The Pickle & Hide development, as proposed, delivers immense public benefits, including affordable housing, historic preservation, public spaces, and enhanced pedestrian connectivity. However, without HTRZ tax increment financing tools, the project would be economically infeasible, and many of these benefits—critical to achieving the City's goals—would not be realized. Below are the key arguments: Substantial Preservation and Adaptive Reuse Costs The project's hallmark features include the preservation and restoration of three historic structures—the Hide Building, the Pickle Building, and Ed's Place. Adaptive reuse is more complex and costly than new construction due to structural retrofitting, fagade restoration, and compliance with modern building codes and the floodplain. For example: • The Hide Building required substantial concrete reinforcement to support the housing units constructed above the structure, adding $150,000 per unit for 12 of the residential units. This essential construction option to preserve the historic character of the building increased the project cost by an additional $1.8M, a necessary expense to ensure structural integrity and meet code requirements. Additionally, the restoration of a significant portion of the historic exterior greatly increased the project's overall cost. Ideally, the entire structure would have been preserved; however, this would have added approximately $3M to the budget, rendering the project infeasible. It was determined that by retaining 40% of the exterior (including the entire fagade and the original painted signage on the north and south walls) we could lower that additional cost to the project to $1.7M. Combined with the $1.8M concrete reinforcement, the Hide Building alone requires an additional $3.5M in costs. To preserve the site's historic character, cost-saving measures were identified elsewhere to make the $1.7M option viable, with the expectation that HTRZ credits could help offset the expense. Without HTRZ credits, preserving even 40% of the exterior walls would not be feasible. 6 • The Pickle Building is set to undergo a complete transformation, converting its 130-year-old industrial frame into 14,500 square feet of functional retail space while preserving its original, authentic charm. However, restoring, rebuilding, and replicating this cultural landmark comes at a premium cost of approximately $1.8 million more than demolishing the structure and constructing a new building of the same size and design. Retaining significant portions of the existing structure is estimated to cost approximately$550 per square foot for the 7,000-square-foot ground floor, compared to around $250 per square foot for demolishing the existing building and constructing a new structure. These substantial preservation and adaptive reuse costs, totaling an additional $5.5M, highlight the importance of HTRZ tax incentives to make the project financially viable. Without HTRZ funding, the financial burden of adaptive reuse would make it more viable to demolish these structures and pursue a standard new-build development—sacrificing the cultural and architectural history of the district. Elimination of Affordable Housing The project commits to providing 38% of units as affordable housing, with 20% of the units at 60%AMI and another 18% at 80%AMI. The inclusion of affordable units imposes significant financial strain: • Affordable units generate lower rental revenue compared to market-rate units, which reduces the property cash flow by—$300,000 per year and overall residual value by over $6 million (250 -300 basis point reduction in returns). This translates to a higher cost of capital to the project, which in turn creates an undesirable funding environment for potential investors, significantly limiting the investor pool and limiting available cash required to build the project. • The cost of mixed-use elements like efficient structured parking (164 stalls), —21,000 square feet public open space, and retail space further stretches project financing. (—$8.6M) Without HTRZ incentives, the project would be forced to pivot to a market-rate-only housing model, with a larger footprint parking garage (current footprint is smaller and more efficient, which is also more costly to design and construct than a typical garage), larger (less efficient and higher monthly cost for residents) units, more private amenities, no public open space in excess of code requirement, no sustainable elements, and no retail, diminishing the vibrancy of a mixed use development and vital affordable and attainable units that address a critical housing shortage. Public Benefits Depend on Financing Support The project delivers extensive public benefits beyond housing, including: • 30,000 square feet of public and programmable space promoting connectivity and community interaction. 7 • Affordable commercial spaces for local businesses, enhancing the district's economic vitality and authenticity. • Streetscape improvements, pedestrian and bike-friendly infrastructure that promote connectivity and multi-modal transportation. These amenities do not generate direct financial returns but are essential for long- term neighborhood resilience. Without HTRZ funding, many of these amenities would be deemed financially unsustainable. Demolition as the Only Alternative In the absence of HTRZ financing, the economic realities of the project necessitate: • Demolition of the historic structures to reduce construction costs. • Development of a simpler market-rate multifamily building with minimal public amenities. This outcome would eliminate affordable housing, erase critical historical landmarks, and fail to align with the City's goals for inclusive, sustainable, and community- oriented development. This project is an opportunity to preserve Salt Lake City's rich industrial history, deliver affordable housing, and activate the Granary District with vibrant, connected public spaces. However, achieving this vision is contingent upon HTRZ tax increment financing tools. Without this support, the project would regress into a generic, market-rate development devoid of affordability, historic preservation, and meaningful public benefits. Investing in this project through HTRZ ensures that Salt Lake City reaps the rewards of thoughtful, equitable, and transformative redevelopment. 5. HOW PROJECT MEETS THE RDA's SUSTAINABILITY POLICY Adaptive Reuse to Reduce Carbon Footprint The project prioritizes the adaptive reuse of existing structures, significantly reducing its carbon footprint by minimizing the need for new materials and construction waste. This approach allows for the integration of modern, energy- efficient technologies while preserving the historical and cultural character of the site. Key sustainable measures include the reuse of over 10% of the original wood floor system and wooden columns from the Hide building, along with repurposed steel trusses and approximately 12,500 bricks salvaged on-site. High Energy Performance Phase I of the project will achieve an ENERGY STAR score of 92 for all new construction, setting a benchmark for energy efficiency (See Energy Star Score Attachment). The project is designed to be fully electric, with residential units utilizing all-electric appliances. The only exception is a limited gas service for 8 restaurant tenants, representing 5,500 square feet of the approximately 200,000 gross square feet in Phase I. While the goal is to maximize electrification, restaurant tenants have specific operational requirements that currently make all-electric cooking impractical. Existing LOls with restaurant tenants include provisions that necessitate gas service due to the lack of reliability of electric alternatives in high-performance commercial kitchens: • Tenant 1: "Landlord to provide gas line and gas meter stubbed into the tenant's space with a one and a half inch (1.5") line. Gas service to be a minimum of 1,700,000 BTU." • Tenant 2: "A minimum of a 2"medium-pressure gas line stubbed to an agreed-upon location within the Premises...The PRY to be installed to bring from medium (2 psi) to low (114 psi)pressure." To further support sustainability, leasing and marketing teams will actively promote the benefits of induction cooking, encouraging restaurant tenants to adopt this cleaner, more efficient alternative to gas whenever possible. Additionally, all retail spaces are stubbed for heavy-amperage electrical service to accommodate all- electric restaurant operations in the future. Promoting Sustainable Mobility The project emphasizes pedestrian- and cycling-friendly design to encourage car- optional living for residents and visitors. Key strategies include: • Proximity to multiple transit lines, ensuring accessible and sustainable transportation options. • On-site retail and restaurant spaces, reducing reliance on car trips. • Meeting and focus rooms within the Hide apartment building to reduce the need for residents to commute for work or study. • Proposed bike paths along street frontages, complemented by secured bike parking and storage facilities for residents, visitors, and retail patrons. • 4 electric vehicle charging stalls, with infrastructure for an additional 12 future charging stations to meet evolving demand. Low-Carbon Materials and Efficient Design The project integrates low-carbon emission materials in its interior design, paired with native, drought-tolerant landscaping to reduce maintenance, lower carbon emissions, and improve environmental health. On-site pollinator beehives contribute to ecosystem biodiversity while enhancing air quality and fostering a healthier living environment for residents and neighbors. 9 Net-Zero and Renewable Energy Strategies The project team has carefully evaluated on-site and off-site renewable energy options to meet net-zero goals. o On-Site Solar: o Phase I would generate a maximum of 20,000 kWh annually through rooftop solar—approximately 1.4% of the 1.4M kWh needed to power the development. Due to retrofit costs of$250,000 and limited energy offset (enough to power common areas only, which require 264,000 kWh annually), this approach is neither cost-effective nor feasible. - The retro fitting costs include all the roofing components/systems for the Hide building (including but not limited to; trusses, anchors, mechanical equipment, roof material, etc.). Other challenges with the redesign would be approvals with the building department and procurement of materials, both causing delays in the construction process. o Phase 11 would require structural reinforcement of the historic building to incorporate solar, making it financially prohibitive. o To fully offset 1,400,000 kWh, approximately 4 acres of solar panels would be needed, which is infeasible given site constraints. o Passive Design: The project incorporates building orientation, shading, high-performance insulation, and strategically placed operable windows to reduce energy consumption while enhancing comfort. Features such as high-performance windows and zone-specific heating and cooling systems further lower energy use by minimizing unnecessary temperature fluctuations. o Wind Turbines: Wind energy was deemed unsuitable due to low and inconsistent wind speeds caused by urban turbulence, aesthetic concerns, noise pollution, and the need for specialized turbine designs to function in dense environments. These factors make wind energy technically challenging and cost prohibitive. o Geothermal: Geothermal energy was considered but ruled out due to high installation costs (approximately $30,000—$40,000 per unit), the high-water table, mismatched energy demand, maintenance challenges, and utility restrictions. Off-Site Renewables and Energy Credits Off-site renewable energy credits (RECs) offer a supplemental approach but pose challenges, including market volatility, cost sustainability, and limited environmental impact. o The estimated annual costs for Phase I per the Blue Sky Environmental Impact Calculator by Rocky Mountain Power are $942/month or $11,303 annually for the 1,400,000 kWh needed for the project, including the following: • Residential Units (1,015,000 kWh): o $717/month or $8,606 annually ($61/unit for 141 units). 10 • Commercial, Common Areas, and Garage (385,000 kWh): o $350/month or $4,200 annually. While purchasing RECs helps offset carbon footprints, their reliance on geographically distant renewable sources raises concerns about long-term feasibility and transparency. Long-Term Renewable Vision Given the constraints of limited space, high-density energy demands, and regulatory challenges, the project would benefit from a more district-wide renewable energy strategy. This approach would align with broader sustainability goals, pooling resources and infrastructure for a greater collective impact. To achieve this, collaboration is essential among key stakeholders, including utility providers, municipal leaders, renewable energy consultants, property owners and developers, and community organizations. By working together, these groups can design and implement scalable solutions such as shared solar installations, microgrids, or district heating and cooling systems, ensuring equitable access and maximizing environmental benefits. VI. PUBLIC BENEFIT PERMANENT JOB CREATION/ECONOMIC IMPACT: • The project will create permanent jobs for retail operators, featuring nearly 20,000 s square feet of retail aimed to attract local retail/restaurant operators. The owner is currently holding leasing discussions with local operators. In addition, the 141 residential units will create numerous permanent job opportunities including leasing and maintenance staff as well as contracted service vendors. AFFORDABLE HOUSING: • 38% of the residential units will be affordable averaging 60%-80%AMI. The units will be dispersed throughout the building and floors. mirroring the unit mix of the market rate apartments. AFFORDABLE COMMERCIAL: • Working with local shops, restaurants, businesses and services is essential to Blaser's development philosophy and enhances the district's character while supporting local entrepreneurs. Leasing is focused on offering spaces to local business owners and artisans at accessible rates to support growth within the local community. TRANSPORTATION OPPORTUNITIES: • Alternative means of transportation such as biking, walking, and transit, are encouraged and supported by the project's secured bike parking and storage, real- time transit screens, and streetscape/sidewalk improvements in front of the site along 400 W. (see Attachment 5a, Site and Landscape Plan) 11 • 4 electric vehicle charging stalls will be available to the public, with infrastructure for an additional 12 future charging stations to meet evolving demand. • The project's shared parking garage (164 stalls) also benefits from its location within a 1/3 mile from existing transit lines providing safer and more convenient access to transit lines and stops, with the Red, Blue, and Green lines along with 5 nearby bus stations within 2-3 blocks from the site. • The project team is actively coordinating with City agencies on streetscape enhancements to 400 W, incorporating multi-modal best practices to ensure safe and accessible transportation options for all users. • Blaser is also coordinating with the UTA on the proposed Trax Extension project designed to run along 400 W, right in front of the project, with 2 transit stops within a one-block radius. NEIGHBORHOOD SAFETY/COMMUNITY ENGAGEMENT: • Neighborhood activation, thoughtful public space design, improved connectivity, and active engagement creates a comprehensive strategy for enhancing neighborhood safety. By prioritizing these elements, the project not only addresses current safety concerns but also fosters a resilient and vibrant community where residents feel secure and connected. PUBLIC SPACE AND PUBLIC ART: • The Project has recorded a 10' public midblock walkway easement for community- focused outdoor public space that invites and promotes social interaction, neighborhood identity, and urban character. • Walkways, sidewalks and public spaces will be illuminated with pedestrian-scaled lighting that is directed downward for preservation of our night skies. • Phase I and Phase II will feature approximately 20,000 square feet of retail/restaurant space accessible to the public. • The multifamily lobby will showcase rotating art from local and regional artists. WALKABILITY: • The walkability and accessibility of the area continues to improve as more parcels are redeveloped. In designing the Pickle & Hide Project, the team focused on creating new, publicly accessible pedestrian connections, namely a recorded 10' public mid-block walkway easement through the site including connectivity to Kilby Court to encourage social interaction and improve the user experience through the site • The Project focuses on creating an environment that improves the pedestrian experience as demonstrated in the Site and Landscape Plan (Attachment 5a) with new and improved sidewalks and walkways in front and through the site complemented with pedestrian scaled lighting, seating and substantial landscaping. 12 • The ground-floor retail spaces are designed with significant transparency, featuring extensive glazing and large openings to promote indoor/outdoor seating and enhance the connection between the interior spaces and the surrounding streetscape. This design encourages interaction, fosters a welcoming pedestrian experience, and supports active street life. HISTORIC PRESERVATION, REHAB AND ADAPTIVE REUSE: • Phase I of the project will focus on the renovation and preservation of the historic 1919 Bissinger& Co. Hides ("Hide") building. This includes restoring 100% of the front fagade and 40% of the original brick exterior, along with the preservation of the iconic "Bissinger"signage that has long defined the building's identity. The new- build multifamily portion of the project has been purposefully designed around the historic Hide building, intentionally incorporating many of the industrial materials and elements into the design. The Hide building will serve as the gateway to a thoughtfully integrated multifamily and retail space, blending history with modern use. • Phase II will center on the renovation, restoration and replication for adaptive reuse of the Utah Pickle Co. ("Pickle") building. Given the poor structural integrity of the building and the significant cost of renovation, the focus of the restoration plan is to preserve as much of the front fagade as possible, maintaining the original footprint and reusing as many of the original bricks and materials as feasible to ensure the historical and cultural character is well preserved. Constructed in 1894 by former LDS Church President Heber J. Grant, the building has served many roles over its 130-year history—from a soap factory to a pickle and condiment plant, and most recently, an arts and event space. Now, the Pickle building will be transformed into 14,500 square feet of retail and commercial space, maintaining its industrial charm. The original "Utah Pickle and Co."signage has been carefully preserved and will be refurbished to once again adorn the structure, honoring its storied past. • Additionally, Ed's Place, a 2,500-square-foot, single-story brick building on 700 South, will undergo renovation and retrofitting for commercial use. Once a beloved neighborhood breakfast and lunch spot, the building's original fagade will be restored, removing the deteriorating, orange-shingled overhang and Italian-flag- striped canopy to reveal its historical character. • This phased approach to adaptive reuse preserves the rich industrial architecture that defines the district, maintaining its cultural identity while minimizing the project's carbon footprint. By blending history with contemporary functionality, the project will help stimulate the local economy, attracting businesses, visitors, and residents seeking a culturally authentic and character-rich environment. 13 ATTACHMENT CHECKLIST 1. Sources and Uses 2. Operating Pro Forma 3. Tax Increment Reimbursement Calculation 4. Appraised Project Value— (Not available until loan closing, will complement application as soon as available) 5. Preliminary Plans & Renderings a. Site and Landscape Plan b. Floor Plans (Hide) c. Elevations (Hide) d. Roof-top Solar Availability Plan (Hide) e. Renderings 6. Energy Star Score Card 7. Project's Carbon Avoidance 14 ATTACHMENT 1: SOURCES AND USES USES Land&Acquisition Costs 8 EC6 192 Hard Costs 65 139,864 Soft Costs 8 896 6 16 Project Fees 3 938 557 Financing Fees 100% 3.875 CCC Total Uses 90,356,229 SOURCES Equity Raised 35 CCC CCC Loan Proceeds 45 Cu Preferred Equity 10,356,229 Total Sources 90,356,229 15 ATTACHMENT 3: TAX INCREMENT REIMBURSEMENT CALCULATION Jan 25 Jan-26 Jan 27 Ian 28 Jan 29 Jan-30 Jan 31 Ian 32 Jan 33 Jan-34 Ian 35 Ian 36 Jan 37 Jan-38 Ian 39 JanA0 JanAl 2026 2027 2028 2029 2,030 2031 2032 2033 2034 2035 2036 2037 2039 2039 2040 2041 YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Taxable Value - - 56.095,985 56,656,945 57,223.514 57.795,749 58.373,707 58,957.444 59,547.019 60.142,488 60.743,913 61,351.352 61,964.866 62.584,514 63.210,360 63,942.463 64,480.889 Taxes - - 566.305 572,968 577.688 583465 589.299 595,192 601.144 607,156 613.227 619,360 625.553 631,809 638,127 64M1,508 650.953 2022 Taxable Value - 1.997,700 1.997,700 1,997.700 1,997.700 1.997,700 1,997,700 1,997.700 1,997.700 1.997,700 1,997,700 1,997.700 1,997.700 1.997,700 1,997,700 1,997.700 2022 Taxes 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 Increment before Fees 546,138 SS1,801 557,522 563,297 569,132 S75,025 580,977 586,988 593,060 599,192 605,386 611,641 617,960 624,341 630,786 Less iox Collection Lou - - 10,923 11,036 11,150 11,266 11,383 11,501 11,620 11,740 11,861 11,984 12,108 12,233 12,359 12,487 12,616 CM lncrement(aRer 80%reduction) 428,172 432,612 437,096 441,625 446,200 450,820 455,486 460,299 464,959 469,767 474,623 479,527 484,480 489,483 494,536 less Admin Fee - - 8,563 8,652 8,742 8,833 8,924 9,016 9,110 9,204 9,299 9,395 9,492 9,591 9,690 9,790 9,891 Total Increment - - 419.609 423,960 428.354 432,793 437,276 441.803 446.376 450,995 455,660 460.371 465.130 469,936 474,791 479.694 484.645 Increment Net of Coverage 419,609 423,960 428,354 432,793 437,276 441,803 446,376 450,995 455.660 460,371 465,130 469,936 474.791 479,694 484,64S Bond Ad m in Fee - - - - 27.061 27,602 29,154 28.717 29.291 29,977 30,475 31.084 31.706 32,340 32,987 33.647 3M1,320 Trustee Fee - - - - 4.000 4,000 4,000 4,000 4.000 4,000 4,000 4,000 4.000 4,000 4,000 4,000 M1.000 TOTAL PROCEEDS IF WNDED 377,648 381,564 354,458 357,911 361,394 364,906 368,447 372,018 37S,619 379,250 382,911 396,603 390,325 394,077 397,861 - - 75.530 76,313 77.104 77,903 79310 79.525 80.349 81,179 82,019 82.867 83.723 84,589 85,462 86.345 87.236 17 ATTACHMENT 5ba: PRELIMINARY PLANS & RENDERINGS SITE AND LANDSCAPE PLAN mlau,ITrr 700SOUTH SALT LANE CITY CITY DATA-CO ZONE CM CO01 CM.TIL2I.OM ED,S PLACE 1 ullolCARurzRcul ET I M,. bp,SSP TKpS— PRorao w9wwmwz PIIONTYMOYIfuk nsn UIRfF• Ro«v.Ro PWSTCOMM0/ >RS�I•fTSSf AiF•A• ROdI10MN IDlp SMOY SSSISSIOOMK 4 IMIOIG9PIrMS9 YOx1tl MI.•WSM 1-. OIKgPD010 PWITCOrIMSS 9law•s.iM9M 1mv.— IISIOSIS MIpMI PRY IMIOSOARIMA SOIPSF . IOIIJ OIIOIN 1011IMARSILA R 0 1,S1b e< 1pYlVMOn,�1911 0 pxls oRx;lVOiFlOxcs lol nxw��x.stxr 4M WAPI:PARK STRIP 101. SIOIRIM PSOVDIO .❑T OT STIISITTI—TASSPSK 90 0T 91>I90•q M 1 -S QhA.-W.YS wovlpo InrroMrulo Tx+anx r.RK- ns .Fou�cFonwxTaowRPa In•uooa t,wlP•9n O `•zs" - if @� m�m�-- �II rla.law.0 rRK� Iw FKaTrumPwnna RETAIL Ty. ;�•cT;,""k . �xa�"�r«aun .w.M. soo. PARKING cw.M. ma. t •� y —I 9.�sn WF __ ____ _..«1___ I •e�1 _-- - n,. r:1 w I.woscnPs vino 1.n.n.a.a1 a. � orlox.l ti p s'F'• All oirbx..Pl.xnxo I IaP I HIDE RETA L/ _ > FOOD&BEVERAGE ® m 61 MxIP rx� P,Ix—PPL.x— xw FourwlnxoscnPE. I"r"'� -�„� ^^°� "SEE—«aWxFoxIFFOP9aCKx,aF9 AID N9rP1P1,ax ¢ PICKLE RETAIL/ 4P FOOD&BEVERAGE PulxsrxiP.xens a ®' FUTURE BUILDING SCOPE v.n(9rRly PlAxriNO O T I << I CONNECTIVITY TO KILBY COURT I Pickle& Hide-Site and Landscape Plan 18 ATTACHMENT 5b: PRELIMINARY PLANS & RENDERINGS HIDE FLOOR PLANS f DRAFT 4 4 o 0 mom tII ^l 4 `lt - - tt -I 'nenL.xosgspinl � -�� Pickle i Nkle- With Und avnrl;ibildy and uli pbrl t y�irc sublet(to chrnl,)r.without.ipprovul Lan tluo uny pnisdictional agency based on compliance with(hc I;ur Ilousng A c....snnc pi-Ilduri0o................ IuucmunL..and Ihu pn....I ul!mn holdcis.All nppfic;dams Of I iuvwwud 1 ui accordance wilt)thosu cntona.Ghangos in a"W"bdity inriy uccw depending on those lucfnrs rind may affect unit assignments. ,1 OV BUILDING PLAN-LEVEL I e 110 8 OxIxMlIlO011 PLW NONP I� DRAFT xae�»P• Olt J� h• y .- '�. • xa l JI O IL-+ �c - socewusmno� O ® wCxIL•xro.W ®Mlgq•Y1YMLaY6i ��_� ® w• .a 5 �" fs.V1M a �rrw�Fr=...a nivrrc Pickle i IIIG- No1M Unit availabilityand eligibility are subject to change without approval from the an jurisdictional a enc based on compliance (lance 9 Y / 9 PP YI g v with the Fair Housing Act,income qualification requirements,and the priorities of lien holders.All appbrurons will be reviewed i in accordance with these criteria.Changes in availability may occur depending on these factors and may affect unit L assignments. Q 1 OVL__UUUILDINO PL -LEVEL2 A112 i AN 19 mm m o© s � a c c o 0 0 ` m - _.s o - © c c „ o. B C G o. B C G ` � �tie t to r e oe�lwrwon1wl�wo. 4 DRAFT aoo N Nda�v PIOYN�MIA�- UNd } Unit availability and eligibility are subject to change without approval from the any jurisdictional agency based on compliance �»w+• with the Fair Housing Act.income qualification requirements,and the priorities of lien holders.All applications will be reviewed in accordance with these criteria.Changes in availability may occur depending on these factors and may affect unit assignments. Q r10VTLL BUILDING PLM-LEVEL 6 Allb 22 ATTACHMENT 5c: PRELIMINARY PLANS & RENDERINGS HIDE ELEVATIONS Phase I--H-ide Elevations .... - - - ,.o mmm T 4OVERALL BUILDING ELEVATION-WES ----- --------------— - - - a - - -—- - - ji - - — - - - 1 n z -—- -—-—- ---------------- — 1 3 C OVERALL BUILDI ELEVATION-EAST NG ) 0) 0) Y•Y _ _ _ _ _ _ _ _ _ _ _ _ _ s E t it �. OVERALL BUILDING ELEVATION-SOUTH — — ——-—-—-—-—- -- — —— �..... - m - - - - m - - - - - 1,. KEY PLAN TM A �. rm OVERALL BUILDING ELEVATION-NORTH 1 Phase I- Hide Elevations 23 1 1 � A v _ 1 4e - ° D D D ° ° NM ��o °. ♦ ♦ DAD.° °_ t �..�y♦\ `' ° ° .rmg�b�r. IVA 500 // Ell z= �i E % On /� /i ..,� .. . . . . ... . : .�.. .. -. . Be ON login r ism , lir in 0 ism imm in Nino RMUMS Ilk 7 NJ a s L ��■ woo 411 AP- . . ... . . . . .. 1 1 • qr • � '• � 'iRb q. } 1 l � - L' �' :•.\ 1� ,fir R �Z �:' yam• �ld� �'+y'1"h � e\t e4. e,: — ATTACHMENT 6: ENERGY STAR SCORE CARD ENERGY -@Statement of Energy Design Pickle and Hide- North LEARN MORE AT energystar11 Primary Property Type:Multifamily Housing Gross Floor Area(ft2): 138,235 92 Estimated Date of Certification of Occupancy: Date Generated:July 02,2024 ENERGY STAR® Design Score 1.This form is required when applying for Designed to Earn the ENERGY STAR recognition.it was generated from ENERGY STAR Portfolio Manager. 2.The ENERGY STAR 1-100 Score is based on total annual Source Energy.To be eligible for Designed to Earn the ENERGY STAR recognition you must score at least 75. Property Address Project Architect Owner Contact Pickle and Hide-North _ 739 S 400 W Salt Lake City,UT 84101 Salt Lake City,Utah 84101 Property ID:35049732 Architect Of Record Property Owner LJ- Estimated Design Fuel Type Usage Energy Rate($/Untt) Electric-Grid 1,401,612 kWh(thousand Watt-hours) $0.11/kWh(thousand Watt-hours) IEWlate the 1-100 ENERGY STAR Score. Multifamily Housing Retail Store Number of Laundry Hookups in Common 0 *Number of Workers on Main Shift 5.63<--default Area(s) value Percent That Can Be Cooled All of it-100% *Percent That Can Be Cooled All of it-100% Common Entrance Yes E default Number of Computers 1.13<--default value value Resident Population Type No specific Length of All Open or Closed Refrigeration/ 0 Ft.<-default resident Freezer Units value population *Number of Residential Living Units in a 0 *Number of Walk-in Refrigeration/Freezer 0<-default valt. Low-rise Building(1-4 stories) Units *Total Number of Residential Living Units 141 Number of Cash Registers 1.69<--default value Number of Laundry Hookups in All Units 141 Cooking Facilities No *Number of Bedrooms 167 *Number of Open or Closed Refrigeration/ 0<-default vale. Freezer Units *Number of Residential Living Units in a Mid-141 *Weekly Operating Hours 65<--default rise Building(5-9 stories) value Percent That Can Be Heated All of it-100% *Percent That Can Be Heated All of it-100% *Gross Floor Area 132,603 Sq.Ft. *Gross Floor Area 5,632 Sq.Ft. *Number of Residential Living Units in a 0 *Exterior Entrance to the Public Yes High-rise Building(10 or more stories) EPA Form 5900-22 Page 1 of 4 Statement of Energy Design Intent(SEDI)for Pickle and Hide-North Generated On:710212024 27 Government Subsidized Housing No Single Store Yes Area of All Walk-in Refrigeration/Freezer 0 Sq.Ft. Units Parking Partially Enclosed Parking Garage Size 0 Sq.Ft. Open Parking Lot Size 0 Sq.Ft. -,'rCompletely Enclosed Parking Garage 38,777 Sq.Ft. Supplemental Heating No Metric Design Project Median Property Estimated Savings ENERGY STAR Score(1-100) 92 50 N/A Energy Reduction(from Median)(%) -30 0 N/A Source Energy Use Intensity(kBtu/ftz/yr) 96 138 42 Site Energy Use Intensity(kBtu/ft2/yr) 34 49 15 Source Energy Use(kBtu/yr) 13,390,438 19,123.382 5.732.944 Site Energy Use(kBtu/yr) 4,782,299 6,829,780 2.047.481 Energy Costs(S) 151,374 216.182 64,808 Total(Location-Based)GHG Emissions(Metric Tons 405 579 174 CO2e) EPA Form 5900-22 Page 2 of 4 Statement of Energy Design Intent(SEDI)for Pickle and Hide-North Generated On:7/02r2024 28 ATTACHMENT 7: CARBON AVOIDANCE V Project Pivot, LLC I ProjectPivot.net 3645 SE Glenwood Street Portland, OR 97202 T: 503.519.3513 January 30,2025 Re:345 WesVPickle&Hide Carbon Avoidance Blaser Ventures 386 West 500 South Suite 100 Salt Lake City,UT 84101 Please find the following analyses,calculating the estimated carbon savings from reusing specific components from existing buildings. 345 West 700 South Using the Carbon Avoided Retrofit Estimator(C.A.R.E.)tool.our team established an estimate of the avoided embodied carbon emissions found by choosing to reuse and remodel the existing building instead of demolishing and building new. Structural System Reuse Extent of Structural Reinforcement or Replacement with no Lateral Upgrade.50% Envelope Reuse Exterior Walls with Minor Repairs and Added Insulation Window Replacement: 100% Roof Replacement. 100% Interior Reuse Interior Finish Replacement. 96% Interior Wall Removal. 2% MEP Reuse Major Replacement.100% Total Embodied Carbon Emissions Avoided: 57.5 metric tons CO2e Please note,the modeled timeframe is 25 years,calculations are cradle to gale and do not include operational carbon. Hide Buildina Facade By reusing the surface area of 3,950 sq It of existing brick facade the Hide building,the project is estimated to avoid 15.44 metric tons of CO2e emissions.The calculation assumes if the facades had been demolished and concrete foundation walls using a 5000 psi @ 28 days mix with 40%fly ash would have been built in these areas. Using calculations from the Project Architect and General Contractor.retaining the existing facade,saved the equivalent of 62 cubic meters of concrete.Data from EPD#10294(At-A3)confirms 248.98kg of CO2 per cubic meter (or 0.249 metric tons) Avoided carton in additional concrete:62 cubic meters'0.249=15.44 metric tons CO2e Additionally,the existing 100-year-old bricks contain their own embodied carbon.EPDs for this product do not exist. However.using the Industry Wide North American Brick EPD10447(A1-A3)as a baseline.the embodied carbon impact of the existing brick can be estimated.Data from the EPD confirms 0.503 metric tons CO2e per cubic meter of brick.(500 standard bricks in 1 cubic meter)37 cubic meters of existing brick is remaining 3.950 sq ft of facade. Embodied carbon in existing brick:37 cubic meters'0.503=18.61 metric tons of CO2e Julie McEvoy Baines,AIA,LEED BD+C.WELL AP Partner+Sustainability Consultant+LCA Specialist Project Pivot.LLC juliemb@projectpivot.net (503)519.3513 'agu 1 j'2 29 . Project Pivot, LLC I ProjectPivot.net 3645 SE Glenwood Street Portland,OR 97202 T:503.519.3513 Resources Carbon Avoided Retrofit Estimator:https:/twww.caretool.org/ EC3 Embodied Carbon Construction Calculator:https:I/buildingtransparency.org/ec3)industry-epds/ec36sjpn The Brick Industry Association Industry Wide EPD:https:llwww.gobrick.com/contentluserfiles/files/EPD10447.pdf National Ready Mix Concrete Industry Wide EPD:https:llwww.astm.org/products-services/certification/environmental- prod uct-declaratio nslepd-perlepd-national-ready-mixed-concrete.html EPA Greenhouse Gas Equivalencies:https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator Brick Calculator Tool:httpsl/www.brickworkssupply.com/inspiration-resourceslbrick-calculator 'ayu 2 j'2 30