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HomeMy WebLinkAbout02/24/2026 - Meeting Agenda SPECIAL MEETING OF THE COMMUNITY REINVESTMENT AGENCY FINANCE COMMITTEE Tuesday, February 24, 2026 2:00 p.m. 451 S State Street Room 118 Salt Lake City,Utah 84111 The 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/j/87093887988?pwd=Wmovdl VMUhEQUVESVZGWEZpVmN4dzO9 AGENDA 1. ROLL CALL 2. APPROVAL OF MINUTES A. Consideration and Approval of the Minutes of the January 21, 2026, and February 18, 2026, meetings. 3. BUSINESS A. Tax Increment Reimbursement Request for Silo Park Development - Lauren Parsis, Senior Project Manager, Kristina Harrold; Project Manager, 4. ADJOURNMENT People with disabilities may request reasonable accommodation no later than 48 hours in advance to attend this Community Reinvestment Finance Committee. Accommodation 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. MINUTES OF THE COMMUNITY REINVESTMENT AGENCY FINANCE COMMITTEE Wednesday, January 21, 2026 2:00 p.m. 451 S State Street Room 118 Salt Lake City,Utah 84111 The following Committee Members were present: Danny Walz- Reinvestment Agency, Tammy Hunsaker, Director of Community and Neighborhoods, Tony Milner- Housing Stability, Baxter Reecer- Reinvestment Advisory Committee, Amy Rowland- Reinvestment Advisory Committee, Peter Makowski- Department of Economic Development, Marina Scott — City Treasurer The following Committee Members were absent: Mary Beth Thompson- Chief Financial Officer Present Agency Leadership: Cara Lindsley—Deputy Director Present Agency Staff: Meghan Fenton- Office Facilitator II Present City Staff: Jennifer Huntsman—City Attorney A. ANNOUNCEMENTS Staff reported that there were no updates or announcements at this time. B. BUSINESS ITEMS 1. Recommendation consideration of Phase IV tax increment reimbursement request from NWQ, LLC Kristina Harrold, Project Manager, presents the Phase IV tax increment reimbursement request from Northwest Quadrant (NWQ, LLC) for improvements within the Northwest Quadrant Community Reinvestment Area, consistent with CRA goals. Under the 2018 interlocal agreement, the city receives 25% and the CRA 75% of tax increment for 20 years (13 remaining). The developer is eligible for up to 70% of the CRA's increment, capped at approximately $1.5 million, payable only after eligible improvements are completed and increment is generated. Phase IV includes about$6.5 million in eligible infrastructure improvements and over$63 million in anticipated private investment, creating an estimated $71 million in new assessed value and 309 jobs. The site currently generates minimal tax revenue but is projected to generate $2.6—$2.9 million over the remaining term. If recommended, the next step is CRA Board approval to enter into a TIRA Agreement. 1 C. DISCUSSION AND COMMENTS a. Peter Makowski inquired whether the Phase 4 buildings were built-to-suit or speculative. Kristina Harrold responded that the submitted application for Phase 4 construction is all groundwork and remediation and referred to the developer for the use intent is for. Jake Durney, the developer, confirmed the buildings are speculative with no current tenants and that the TIRA request applies to infrastructure and site work only, not vertical construction. b. Marina Scott asked for clarification regarding timing of improvements,reimbursement caps, and financial projections. Ms. Harrold stated that no improvements have been made yet; reimbursement is capped at approximately $1.5 million and is paid only after eligible improvements are completed and sufficient tax increment is generated. Projections were prepared by an independent consultant, and if the projected increment is not realized, no reimbursement will be issued. The dashboard supports accountability, program evaluation, funding allocation, and long-term planning for affordable housing initiatives. c. Amy Rowland inquired about job creation estimates and methodology. Logan Loftis from LRB, described that projections are based on square footage and regional employment data. Mr. Durney noted that existing phases include multiple active industrial and distribution buildings and that Phase 4 is anticipated to support multi-tenant use. d. Ms. Rowland inquired about zoning and potential residential use; Baron Gajkowski confirmed the property is zoned light industrial (M-1) and residential uses are not permitted. e. Baxter Reecer requested clarification on eligible expenses, specifically vapor barriers and insulated panels. Ms. Harrold and Mr. Durney confirmed these items are eligible under prior agreements and are necessary due to soil conditions and environmental mitigation requirements related to landfill adjacency. f. In response to a question regarding deviations from prior phases, Ms. Harrold, Mr. Durney, Mr. Gajkowski, indicated Phase 4 is consistent with previous agreements but smaller in scale. Mr. Durney anticipates potential future phases tied to additional land acquisitions. g. Committee members vote to request forwarding a recommendation to the CRA Board of Directors: Motion: Committee Member Tammy Hunsaker moves to request forwarding a recommendation to the CRA Board of Directors Second: Committee Member, Marina Scott. Outcome: Motion passed unanimously, (0-7) D. ADJOURNMENT There being no further business, the meeting was adjourned. 2 Minutes Approved: CRA Finance Committee Chairperson, Danny Walz This document, along with the digital recording, constitutes the official minutes of the Community Reinvestment Agency Finance Committee held on Wednesday, January 21, 2026. 3 MINUTES OF THE COMMUNITY REINVESTMENT AGENCY FINANCE COMMITTEE Wednesday, February 18, 2026 2:00 p.m. 451 S State Street Room 118 Salt Lake City,Utah 84111 The following Committee Members were present: Danny Walz- Reinvestment Agency, Mike Akerlow- Deputy Director of Community and Neighborhoods, Heather Royall- Deputy Director of Housing & Neighborhood Development, Amy Rowland- Reinvestment Advisory Committee, Peter Makowski- Department of Economic Development, Marina Scott- City Treasurer The following Committee Members were absent: Baxter Reecer- Reinvestment Advisory Committee, Mary Beth Thompson- Chief Finance Officer Present Agency Leadership: Cara Lindsley—Deputy Director Present Agency Staff: Tracy Tran- Senior Project Manager, Browne Sebright- Project Manager, Austin Taylor- Project Manager, Meghan Fenton-Office Facilitator II,Miranda Johnson-Finance Analyist III,Baylee White-Finance Analyist III,Eric Holmes- Senior Project Manager Present City Staff: Jennifer Huntsman—City Attorney A. ANNOUNCEMENTS Staff reported that there are no new updates or announcements at this time. B. BUSINESS ITEMS 1. Housing Development Loan Program (HDLP)Application Review for Recommendation Browne Sebright, Project Manager, starts the Housing Development Loan Application Review with a brief overview of the program, reviewing the threshold requirements and its goal to provide low-cost finance assistance to incentivize the development and preservation of affordable housing within city limits. Mr. Sebright states the program received ten (10) applications. One (1) application did not meet the threshold requirements, leaving nine (9) eligible applicants for consideration. Total funding for HDLP is $8.1 million is: $5.5 million — Housing Development Program (flexible, citywide). $2.4 million — Deeply affordable housing funds (<30% AMI), $50,000 — High Opportunity Areas funding (for projects in designated census tracts). Mr. Sebright discusses the update made to the project priority list this year,per CRA Board direction. Priority scores are used to rank applications, determine potential interest rate reductions, and reflect the level of public benefit offered. A new secondary observation score was added to assess application quality. Two additional criteria were introduced to encourage new developers and promote affordable housing in areas with limited existing supply. Applications are requesting cash flow loans,unless otherwise noted. FY2025-2026 CRA FINANCE CONEAHTTEE RECONIlVIENDED HDLP FUNDING ALLOCATIONS The CRA Finance Committee recommends that fimdigg be allocated to projects in the nrA of funding ranl®g. Alignment with Project Scoring Criteria FUNDING Alin Funding CRA Housing CRA Deeply Affordable CRA High TOTAL FUNDING PROJECTIAPPLICANT ADDRESS Priorities Score Evaluation LIHTC Awarded? REQUEST Request Development Fund Funds Opportunity Funds RECOMMENDATION 1 in Street 19 17 Yes,9% S3.500,000 $2.000.000 K.168,12 $2,168,128 1 2 1Q5ss200w 14 19 Applying. 9'6 S2,500,000 $1.000.000 <C 2 North " Pipeline Building 315E2110S 11 10 AFplying,49*Z S2.884183 $2.884.18" 5u 3 N Chicago street 9 20 Yes;4% S2.000,000 $2.000.000 $1,687,537 ._'2 463 $2,000,000 2 4 ?7 North 800Nk. 9 11 Yes,4% S2.300.000 $2,000,000 $2,000,000 $2,000,000 2 5 300 West '' 'rmts 1485S300w 9 13 Applying.4°6 S2.400.000 $1.900.000 $1,900,000 $1,900,000 3 7 TheArnelia 209w900S 7 22 Yes;4% S5.000.000 $3,000,000 $0 care west 8 55otiv700S 6 14 Applying,9% s712.866 $499,006 $0 9 1050 S Washingim 6 ■ 17 ' Applying,4% S2,000,000 $1,300,000Street TOTAL S23.297.049 $16,583,189 S5.567.557 2,480,591 SO S8.068,128 Funds Availability Total Available RecommendedFundirg FundaRemaining Legend: CRA Hous+n 0e,:1rpnentFurd $ 5,587,537 $ 5,587,537 $ Green boxes:Applicant qualifiesfor8 wants tobeconsideredtor these funds. CRA Deeply AfforcW to Furds $ 2,480,591 $ 2,480,591 $ Black box:Applicant does not qualify forthese funds. CRA High Opportunity Funds $ 50,000 $ - $ 50,000 Tatal Potential HDLP Funds $ 8,118,128 S 8,068,128 S 50,000 Conditions of Approval: .Projects receive a 0.5%interest rate reduction for each included priority. Sustainability allows for a 1%or 2%reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus(-)Interest Rate Reductions(up to 2%)=proposed interest rate;Base interest rate shall be locked within a month of closing.Projects shall maintain project priorities and the same weighted score at closing.Deviation from Project Priorities met may require Board approval. .Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2025-2026 Housing Development Loan Program(HDLP) Guidelines. Changes to repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or it required by a senior lender. Changes in repayment type will cause a change in the base interest rate.Repayment priority and lien position shall be based on the size of the loan;consideration may be made for other government entity loans if required through their policies. Funds may be disbursed in a lump sum if required by senior lender(s). .For all loan awards greater than$899,999,the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels,but it would not restrict the ability to have backup generators for emergence C. DISCUSSION AND COMMENTS a. Amy Rowland expressed concern that the "emerging developers" category may unintentionally reward lack of experience, potentially conflicting with scoring for developer experience. She suggested ensuring the focus remains on housing models to avoid inconsistencies in point allocation. Ms. Rowland requested clarification on the loan term criteria, specifically whether the stated term refers to amortization or the full loan term. Tracy Tran clarified that it refers to the length of the construction-to-permanent loan term (not amortization). It was confirmed that any remaining balance would be due at the end of the stated loan term. b. Ms. Rowland raised concern about the potential for vacant or inactive commercial space and the impact of the 3-point criterion given close scoring. Ms. Tran clarified that projects must include publicly accessible commercial space that is actively marketed and leased within three years. If not leased within that timeframe, the city may revoke the interest rate reduction. c. Mike Akerlow raised concern in application for Northwest Pipeline Building regarding the high cost. The developer, Grant Wise, responded that the costs are due to the project being a historic building and its conversion and rehabilitation to a residential building. d. Ms. Rowland commented that regarding the "ready to start construction" criterion, noting that while receiving 9%tax credits is a major milestone, it does not necessarily mean a project is construction ready. It was also noted that 4% of credit projects often face additional financing hurdles and the process should avoid incentivizing premature expenditures before funding is secured. e. Committee discusses prioritizing projects with secured LIHTC awards as an indicator of readiness, while acknowledging that tax credits alone do not guarantee construction readiness and that 4% and 9% credits carry different risks and timelines. Members debated balancing readiness with overall project priority scores and public benefits and considered whether to award full minimum funding to the top-ranked, credit-secured project versus distributing funds across multiple projects. Concerns were raised about committing funds to projects that have not yet secured 9%credit due to higher uncertainty and timing risk. f. The committee reviews funding allocations for affordable housing projects, focusing on prioritization and distribution of funds at the minimum request. Finalizing funding allocations for affordable housing projects, confirming Gardens at Palmer as the top priority and directing remaining funds to The Chicago, Emeril Apartments, and 300 West Apartments. g. Committee members vote to request forwarding a recommendation to the CRA Board of Directors: Motion: Committee Member, Heather Royall,moves to request forwarding a recommendation to the CRA Board of Directors Second: Committee Member, Mike Akerlow Outcome: Motion passed unanimously, (0-6) D. ADJOURNMENT There being no further business, the meeting was adjourned. Minutes Approved: Finance Committee Chairperson, Danny Walz This document, along with the digital recording, constitutes the official minutes of the Community Reinvestment Agency Finance Committee held on Wednesday, February 18, 2026 ®dt"i'© I SLCCRA CRA FINANCE COMMITTEE MEETING MEMORANDUM Tax Increment Reimbursement Request for Silo Park Development Meeting: Tuesday, February 24, 2026, City and County Building, Room 118 DATE: February 20, 2026 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: Heather Royall(or alternate) FROM: Lauren Parisi, Senior Project Manager Kristina Harrold, Project Manager RE: Tax Increment Reimbursement Request for The Silos Development at 455 W 500 South in the Salt Lake Central Housing and Transit Reinvestment Zone I. EXECUTIVE SUMMARY: Silos South BCG LPG Partners, LLC and BCG TBD Manager, LLC ("Developer")has requested a tax increment reimbursement for Phases I-V of the Silo Park development located at approximately 455 W 500 South in the Salt Lake Central Housing and Transit Reinvestment Zone("HTRZ"). This project generally meets the goals of the State's HTRZ policy as well as the Salt Lake City 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 Silo Park development is a mixed-use project located in the CRA's Salt Lake Central HTRZ at approximately 500 South and 500 West to be constructed in five phases. The development includes new construction of affordable and market-rate housing, retail space, public open space, and the preservation of six grain silos. Phases I and II, currently under construction,include the 180-unit affordable housing project, a 65-unit market-rate housing building, and Silos Park,a 0.33 acre community-oriented urban park which includes the 0.10 acre preservation of six historic grain silos. Phase III includes a 220-unit market rate project, a 275-unit workforce housing project with approximately 1,100 square feet of ground floor retail space, and a 35,680 square foot commercial project. Future Phase IV and Phase V include the development of a 31,000 square foot commercial building and a 120-to 175-key hotel. See a Phasing Plan in Attachment B. The total area of the Silo Park project will be 8.2 acres with approximately 1,067,000 square feet of development. Of the 740 residential units,24%of the units will be affordable, restricted to 60%Area Median Income. The Silo Park development includes the full preservation of six historic grain silos,the repurposing and reuse of salvaged materials, and inclusion of rooftop solar panels on the affordable Low Income Housing Tax Credit("LIHTC")building. The total project cost is approximately$390 million. III. TAX INCREMENT BUDGET Based upon the taxable value of the proposed development,the CRA is projected to receive approximately $66,475,702 in tax increment from Phases I-V of the development over a 25- year period. Per State Code,CRAB are permitted to receive up to 80%of the tax increment generated, 2% of which may be used to cover the CRA's administrative fees. Pursuant to the requirements in the HTRZ Policy,the Developer is eligible to receive as a reimbursement up to 90%of the tax increment the CRA receives(after administrative fees are taken out), or approximately $58,631,569. Annual tax increment projections are broken down in Attachment C. IV. POLICY ALIGNMENT The project incorporates multiple public benefits centered around affordable housing opportunities, historic preservation, 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 majority of the State's overarching objectives as listed below. The State HTRZ Committee also conditioned their approval of the Salt Lake Central HTRZ to require that tax increment is limited to funding certain uses including parking, affordable housing, enhanced residential costs, and infrastructure improvements. The Silos will use TI funds in alignment with this condition as illustrated on page 8 of their application. A complete review of State Code requirements and Policy Alignment can be found under Attachment D. HTRZ Objectives— 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); 2 j) increasing access to employment and educational opportunities;and k) increasing access to child care. V. Regarding the CRA's HTRZ Tax Increment Reimbursement Program Policy,the proposed project meets most of the threshold requirements by incorporating at least 10% of housing units at 60%AMI, including activated ground-floor uses for more than 50%of the building facade, and providing sufficient evidence of a funding gap. The project does not meet the CRA Sustainable Development Policy in its entirety and is requesting a waiver from portions it does not meet. 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. Additional Affordable Housing—This near fully constructed project is providing an additional 10%of affordable housing units at 60%AMI above and beyond the policy's 10%threshold. The Silo Park development provides 180 deed-restricted affordable units, representing 24%of total residential units. The unit mix of affordable housing is as follows: Efficiency/studio(60), One-bedroom(100), Two-bedroom(20). The affordable units will be deed-restricted for 50 years through a Land Use Restrictive Agreement. The Land Use Restrictive Agreements will include both rent and income restrictions which will limit the maximum rent that can be charged for a unit and will require that the unit be made available only to households with qualifying incomes. 2. Neighborhood Commercial and Services(FY26 annual housing funding priority)—The project incorporates 75,000 square feet of commercial space that will foster economic opportunities for local entrepreneurs.The project will prioritize commercial tenants that provide products and services currently underrepresented in the neighborhood. 3. Public Open Space—A third-acre park will be incorporated within the development in addition to other placemaking elements throughout the site. The park will be accessible to the public via a public easement recorded over a midblock walkway that bisects the block. 4. Walkability—The project creates new,publicly-accessible connections through the block and new buildings feature significant street level building transparency and activity. 5. Historic Preservation—The project will preserve and repurpose and existing structure - the historic silos—that contribute positively to the surrounding neighborhood. 6. Public Art—The project provides publicly visible and accessible, original art that enriches the site and promotes neighborhood identity. Public art installations will be included in the grain silo activation, and may include murals or dedicated exhibition spaces. Funding Gap. The Developer has described a funding gap of$22 million(net present value) due to the additional costs associated with the enhanced infrastructure required to construct higher- density,transit-oriented development as well as amenities that will benefit the community including affordable housing, significant retail space,preservation of six historic grain silos and a publicly assessable urban park. The enhanced development costs of public benefits equate to over$71 million. The estimated costs of the project's public benefits are outlined below: • Affordable Housing Commitment: $11 million 3 • Structured Parking: $28 million • Utility and Site Infrastructure Upgrades $1.4 million • Neighborhood Park Dedication $846,000 • Historic Preservation of Silos $30 million in opportunity cost The Developer's application states that by adding in the increased costs of public benefits, financial requirements of capital partners cannot be met without HTRZ support. While the project's location in an opportunity zone allows for additional capital sources, it does not alter the financial metrics required, such as loan to cost and debt service coverage. The equity markets have demonstrated the ability to support a loan-to-cost ratio of up to 78%of the project's capital stack. These constraints create the need for additional sources to fully capitalize the project without reducing the public benefits within the project. According to their application,the Developer intends to bond against the net present value(NPV)of anticipated HTRZ tax increment reimbursements to help fill the $22 million gap in the development budget. Some phases of the block have already commenced construction because of the investment timing requirements of Qualified Opportunity Zone Businesses(QOZBs). The developer has been able to negotiate with capital partners to proceed, despite a funding gap. In doing so,the applicant has positioned itself as a loss leader to fully realize the project. The developer states that the public benefits"add substantial costs to the project, making HTRZ tax increment financing critical for financial feasibility". Policy Waivers. The Developer has also requested two waivers from the following sections of the CRA's Sustainable Development Policy: 1. Section 3.b. of the CRA's Sustainable Development Policy, which requires emission-free building operation for all new construction projects and adaptive reuse projects that receive over$900,000 in CRA funding. Request is to waive this requirement to accommodate gas stovetops in the designated retail/restaurant spaces within the project and gas boilers for water heating in the residential and commercial portions of the project. 2. Section 4.a.ii. of the CRA's Sustainable Development Policy,which requires projects to achieve"on-site net zero"operation. Request is to waive this requirement and instead require the project to achieve"off-site net zero"standards by participating in Rocky Mountain Power's Blue Sky program. 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 as tenants of the retail spaces have conditions in their leases that will require natural gas for cooking purposes. Leases of tenants stipulate: 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." 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 4 to support the project's energy needs. The Developer has documented the lack of space on buildings for a sufficient amount of solar panels to meaningfully offset the energy demand. The Developer will be including solar on the LIHTC building to partially offset the energy demand of the affordable housing units. The Developer has identified the various ways in which they have incorporated sustainability measures into the project to achieve environmental and human health benefits intended with the CRA Sustainable Development Policy: • Encouraging sustainable transportation options through proximity to public transit lines,proposed bike lanes,pedestrian pathways,bike storage, 30 electric charging stalls, and district walkability • Reduction and reuse of materials through the preservation of historic silos and repurposing of brick, steel, and existing rail steel for adaptive reuse. • Drought-tolerant landscaping to reduce water use • Solar panels on the LIHTC affordable housing project to offset 5% of affordable housing energy demand VI. APPLICANT INFORMATION The tax increment reimbursement request is being coordinated with a joint venture between Lowe Property Group and Blaser Ventures. Lowe Property Group ("LPG")is a real estate development and investment firm located in Salt Lake City,Utah. During its 35-year history,LPG, and its predecessors have built a portfolio of over 3,000 units and 40,000+square feet of retail space along the Wasatch front through ground up development and the acquisition of existing communities. LPG Residential,the property management business of LPG,manages over 1,500 market-rate and tax credit apartment units in Salt Lake City Valley. Blaser Ventures is 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. VII. ATTACHMENTS a. Term Sheet b. Phasing Plan c. Tax Increment Projections d. Policy Alignment e. HTRZ MAP f. Project Application 5 ATTACHMENT A: TERM SHEET 6 Silo Park Development Tax Increment Reimbursement Agreement TERM SHEET Parties: Silos South BCG LPG Partners, LLC and BCG TBD Manager, LLC ("Developer")and the Community Reinvestment Agency of Salt Lake City("CRA") Scope: The Silo Park development(the"Project") is a planned mixed-use project located in the CRA's Salt Lake Central Housing and Transit Reinvestment Zone("HTRZ") at approximately 455 West 500 South to be constructed in five phases. The Project will include both new construction and historic preservation, featuring housing, commercial space, and public open space. The Project is phased as follows: • Phases I and II—a mostly completed 180-unit affordable housing project restricted at 60% area median income("AMI") for 50 years, a 65-unit market rate housing project, approximately 6,500 square feet of ground floor retail space, and a planned 0.33 acre public urban park,known as Silos Park,that includes the 0.10 acre preservation of the historic grain silos. • Phase III—a planned 220-unit market rate housing project, a 275-unit workforce housing project, with approximately 1,100 square feet of ground floor retail space, and approximately 32,395 square feet of commercial space • Phase IV and Phase V—approximately 31,000-square foot commercial building and a 120-175 key hotel. The Developer has provided sufficient evidence in the form of financial models and cost estimates demonstrating that tax increment is necessary for the overall Project to succeed to subsidize a portion of the cost burden from providing the improvements to benefit the public, including enhanced residential costs, infrastructure for publicly accessible mid-block walkways, infrastructure that supports affordable housing,parking, and historic preservation. The Project will provide other public benefits, as well, including a publicly accessible micro-park and preservation of historic silo structures (the costs of which will not be reimbursed with tax increment). Property: Developer desires to carry out development activities on eight existing parcels: 15013810010000—455 W 500 S 15013760110000—425 W 500 S 15013760140000—522 S 400 W 15013770240000—536 S 400 W 15013770270000—470 W 600 S 15013770290000—440 W 600 S 15013770330000—553 S 500 W 15013770320000—568 S 400 W CRA Participation: Subject to Developer's full compliance with the terms and conditions of this term sheet,the CRA will enter into a tax increment reimbursement agreement(the"TIRA")to reimburse the Developer in an amount equal to up to 90%of the annual tax increment("TI")the CRA is entitled to receive from the taxing entities, subject to the terms of, and Developer's compliance with,the Reimbursement Agreement, for a term of 25 years or the sum of the remaining collection years of the Housing and Transit Reinvestment Zone,whichever is less. 1 To obtain this 90%reimbursement,the project has included additional public benefits' above and beyond the CRA HTRZ Tax Increment Reimbursement policy's thresholds, each worth an additional 10% reimbursement including: 1. Additional Affordable Housing—This near fully constructed project is providing an additional 10%of affordable housing units at 60%AMI above and beyond the policy's 10% threshold, for a total of at least 20%. The Silo Park development provides 180 deed-restricted affordable units,representing 24%of total residential units. The unit mix of affordable housing is as follows: Efficiency/studio (60), One-bedroom(100), Two-bedroom(20). The affordable units will be deed-restricted for 50 years through a Land Use Restrictive Agreement. The Land Use Restrictive Agreements will include both rent and income restrictions which will limit the maximum rent that can be charged for a unit and will require that the unit be made available only to households with qualifying incomes. 2. Public Open Space—A third-acre park will be incorporated within the development in addition to other placemaking elements throughout the site. The park will be accessible to the public via a public easement recorded over a midblock walkway that bisects the block. 3. Neighborhood Commercial and Services (FY26 annual housing funding priority)—The project incorporates 75,000 square feet of commercial space, a portion of which will foster economic opportunities for local entrepreneurs. The project will prioritize commercial tenants that provide products and services currently underrepresented in the neighborhood. 4. Walkability—The Project infrastructure includes new,publicly accessible connections through the block and new buildings featuring significant street level building transparency and activity. 5. Historic Preservation—The project will preserve the historic silos structures that contribute positively to the surrounding neighborhood. 6. Public Art—The project provides publicly visible and accessible, original art that enriches the site and promotes neighborhood identity. Public art installations will include a mural along a building fagade. Maximum Reimbursement The maximum amount available for reimbursement shall be $58,630,000("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,that the maximum total amount of the TI reimbursement shall not exceed the Maximum Reimbursement. Eligible Reimbursable Improvements Developer may seek reimbursement only for parking, affordable housing,enhanced residential costs, and infrastructure improvements (i.e. streetscape and utility improvements) ("Reimbursable Improvements"). For the Project,Reimbursable Improvements may include some or all of the improvements listed on Exhibit A to this term sheet(to the extent they fit the definition of Reimbursable Improvements),up to the Maximum Reimbursement and subject to the terms and conditions of the TIRA. Use of Tax Increment Reimbursements The Developer may use anticipated tax increment reimbursement to secure private financing;however, the CRA nor the City shall not be a borrower, obligor,guarantor, or issuer with respect to any such financing.No lender or bondholder shall have any right of recourse against the CRA or City, and the 'While these public benefits support CRA's decision to provide additional tax increment reimbursement to the Project,tax increment will not be used to reimburse the costs of construction of anything other than parking, affordable housing-related costs,enhanced residential costs or infrastructure improvements,consistent with the May 1.2025 approval of the Housing and Transit Reinvestment Zone by the Governor's Office of Economic Opportunity. 2 CRA shall not be obligated to make any payment in the event tax increment revenues are insufficient or not generated. CRA Policy Waivers 1. Section 3.a.b. of the CRA's Sustainable Development Policy that requires emission-free building operation for all new construction projects and adaptive reuse projects that receive over$900,000 in CRA funding, may be waived for the designated retail/restaurant spaces within the project to accommodate gas stovetops as well as gas-boilers for water heating in the residential and commercial portions for the project. 2. 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 participate in an"off-site net zero"program at the level described as part of the conditions of approval. Conditions for Agreement Execution: 1. CRA must approve all terms of the agreement in line with this term sheet. 2. Developer agrees to preserve the existing historic silo structures currently located on the site. 3. Developer agrees it will maintain the 0.33 acre park as open space for at least 25 years per the plans previously submitted to the city. 4. Developer agrees to build ground floor retail spaces immediately adjacent to the park on both the west and east sides of the park including an approximately 2,000-square foot outdoor retail patio adjacent to the west side of the park. 5. Developer agrees to follow CRA's design review process and must submit all final building elevations, site plan, and public art specifications. 6. Developer agrees to submit a Statement of Energy Design Intent for all buildings showing a score of 90 or higher. 7. Developer must participate in Rocky Mountain Blue Sky renewable energy program at a minimum contribution of$2000 a month. 8. Developer agrees to install electric cookstoves in all residential units. 9. Developer must obtain all required City approvals. 10. Developer and CRA execute legal documents as reasonably deemed necessary by the CRA and its legal counsel. 11. Developer must receive approval from the CRA and its legal counsel of all matters pertaining to title; legality of the TI reimbursement request; the legality, sufficiency, and the form and substance of all documents that are deemed reasonably necessary for the transaction; and compliance of the Project with applicable laws and policies (including but not limited to the Housing and Transit Reinvestment Zone Act, Utah Code § 63N-3-602 et seq.,the CRA Housing and Transit Reinvestment Zone Tax Increment Reimbursement Policy, and any applicable conditions of the Governor's Office of Economic Opportunity approval of the Salt Lake Central HTRZ application). 12. Developer shall not,without the prior written approval of the CRA, enter into any financing agreement, issue any bonds or other debt that would pledge, assign, encumber,or grant the right to receive TI Reimbursement,if such financing,bonds, or debt would be secured by,payable from, or otherwise serviced in whole or in part with funds received or to be received as TI Reimbursement. 13. Such other terms as recommended by the CRA's legal counsel and staff as generally outlined in this term sheet. 3 ATTACHMENT B: PHASING PLAN 560 SOUTH STR EET SILO PARK PHASING PLAN .MNWO. MA PHASE ,, nnone R—) OlyYVu LIIQC 0OZB,LLC YMC &""I . 4 weuii �. • Sb Pwk PHASE SI ..wroow 2 B."3 Y Sibs Mdbbck - H SGWNCWM C l y QOZB.LLC PHANV i�wr..��� laal.o.rolml F &M"4 F y H mi PHASE V • w O plwMMai O(+l p O yl ♦�i Sibs South OOZE.LLC SsMCa1�W MM+1�1 ■ 0®® c.ci.a:.YST 600 SOUTH STR EET 7 ATTACHMENT C: TAX INCREMENT PROJECTIONS FOR OLYMPUS QOZB, SILOS SOUTH, SILOS MIDBLOCK TI Calculations - Olympus OOZB OLYMPUS QOZB,LLC Asset ID Units/SF Year Start Years to Build Year End Tax Year Stabilized Taxable Value LIHTC Multifamily 1 180 2024 2 2026 1 32,400,000 LIHTC Parking Garage 5 207 2024 2 2026 1 3,208,500 Hotel 4 180 2026 2 2028 3 36,000,000 NE Retail 3 31,000 2026 1 2027 2 13,950,000 Total 85,558,500 Taxable Values Totals Multifamily 1 180,000/unit Total HTRZ CF 18,698,683 Office 2 375 psf ---Totals,If Bonded--- Retail 3 450 psf Bond Rate 6.66% Hotel 4 200,000/key Bond Fees 5.00% Parking 5 15,500/stall Total Bonded Proceeds 7,105,677 Assumptions 2025 Parcel Tax Value Base Year 2025 15013810010000 3,455,900 HTRZ Zone(Years) 25 '15013760110000 3,533,700 Reassessment 2.88% 2.88% '15013760140000 2,800,700 Mill Rate 0.92% Total 9,790,300 Collection&Admin Fees 2.00% Cash flow to HTRZ 80.00% Project Share of HTRZ CF 90.00% 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Year 0 1 2 3 4 5 6 7 8 9 30 11 12 13 LIHTC Multifamily 33,333,216 34,293,311 35,281,060 36,297,259 37,342,727 38,418,308 39,524,869 40,663,302 41,834,525 43,039,483 44,279,147 45,554,518 46,866,623 LIHTC Parking Garage 3,300,914 3,395,990 3,493,805 3,594,437 3,697,967 3,804,480 3,914,060 4,026,796 4,142,780 4,262,104 4,384,866 4,511,163 4,641,097 Hotel 12,000,000 24,000,000 39,201,177 40,330,287 41,491,919 42,687,009 43,916,521 45,181,446 46,482,806 47,821,648 49,199,053 50,616,131 52,074,025 NE Retail 6,975,000 14,765,176 15,190,456 15,627,986 16,078,119 16,541,216 17,017,652 17,507,810 18,012,087 18,530,889 19,064,633 19,613,751 20,178,685 Total Taxable Value 9,790,300 55,609,130 76,454,477 93,166,498 95,849,969 98,610,732 101,451,012 104,373,101 107,379,355 110,472,198 113,654,124 116,927,699 120,295,562 123,760,430 Taxes 90,462 513,828 706,439 860,858 885,654 911,163 937,407 964,407 992,185 1,020,763 1,050,164 1,080,412 1,111,531 1,143,546 Base Year Taxes 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 Gross Tax Increment - 423,366 615,977 770,396 795,191 820,701 846,945 873,945 901,723 930,301 959,702 989,950 1,021,069 1,053,084 Collection&Admin Fees - 8,467 12,320 15,408 15,904 16,414 16,939 17,479 18,034 18,606 19,194 19,799 20,421 21,062 Net Taxlncrement - 414,899 603,657 754,988 779,288 804,287 830,006 856,466 883,688 911,695 940,508 970,151 1,000,647 1,032,022 Annual Project Tax Increment - 298,727 434,633 543,591 561,087 579,086 597,604 616,656 636,256 656,420 677,166 698,508 720,466 743,056 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 14 15 16 17 18 19 20 21 22 23 24 25 48,216,520 49,605,298 51,034,078 52,504,010 54,016,281 55,572,109 57,172,750 58,819,495 60,513,670 62,256,642 64,049,818 65,894,642 4,774,775 4,912,302 5,053,791 5,199,355 5,349,112 5,503,182 5,661,690 5,824,764 5,992,534 6,165,137 6,342,711 6,525,400 53,573,911 55,116,998 56,704,531 58,337,789 60,018,090 61,746,788 63,525,278 65,354,994 67,237,411 69,174,047 71,166,464 73,216,269 20,759,891 21,357,837 21,973,006 22,605,893 23,257,010 23,926,880 24,616,045 25,325,060 26,054,497 26,804,943 27,577,005 28,371,304 127,326,096 130,992,436 134,765,405 138,647,047 142,640,492 146,748,960 150,975,764 156,324,312 159,798,112 164,400,770 169,135,998 174,007,615 1,176,484 1,210,370 1,245,232 1,281,099 1,317,998 1,355,960 1,395,016 1,435,197 1,476,535 1,519,063 1,562,817 1,607,830 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 90,462 1,086:022 1,119,908 1,154:770 1,190,636 1,227,536 1,265:498 1,304:554 1,344:734 1,386:072 1,428:601 1,472,354 1,517,368 21,720 22,398 23,095 23,813 24,551 25,310 26,091 26,895 27,721 28,572 29,447 30,347 1,064,301 1,097,510 1,131,675 1,266,824 2,202,985 1,240,188 1,278,463 1,317,840 1,358,351 1,400,029 1,442,907 1,487,021 766,297 790,207 814,806 840,113 866,149 892,935 920,493 948,845 978,013 1,008,021 1,038,893 1,070,655 8 TI Calculations - Silos Midblock SILOS MIDBLOCK QOZB, LLC Asset ID Units/SF Year Start Years to Build Year End Tax Year Stabilized Taxable Value Building lMultifamily 1 65 2024 1 2025 0 18,158,284 Total 18,158,284 Taxable Values Totals Multifamily 1 279,358/unit Total HTRZ CF 3,668,740 Office 2 375 psf ---Totals,If Bonded--- Retail 3 450 psf Bond Rate 6.66% Hotel 4 200,000/key Bond Fees 5.00% Parking 5 15,500/stall Total Bonded Proceeds 1,465,174 Assumptions 2025 Parcel Tax Value Base Year 2025 15013770240000 2,834,400 HTRZ Zone(Years) 25 Total 2,834,400 Reassessment 2.88% 2.88% M i It Rate 0.92% Collection&Admin Fees 2.00% Cash flow to HTRZ 80.00% Project Share of HTRZ CF 90.00% 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Building lMultifamily 18,158,284 18,681,297 19,219,373 19,772,948 20,342,467 20,928,391 21,531,190 22,151,352 22,789,377 23,445,778 24,121,086 24,815,844 25,530,614 26,265,971 Total Taxable Value 2,834,400 18,681,297 19,219,373 19,772,948 20,342,467 20,928,391 21,531,190 22,151,352 22,789,377 23,445,778 24,121,086 24,815,844 25,530,614 26,265,971 Taxes 26,190 172,615 177,587 182,702 187,964 193,378 198,948 204,678 210,574 216,639 222,879 229,298 235,903 242,698 Base Year Taxes 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 Gross Tax Increment - 146,425 151,397 156,512 161,775 167,188 172,758 178,489 184,384 190,449 196,689 203,109 209,713 216,508 Collection&Admin Fees - 2,929 3,028 3,130 3,235 3,344 3,455 3,570 3,688 3,809 3,934 4,062 4,194 4,330 Net Taxlncrement - 143,497 148,369 153,382 158,539 163,845 169,303 174,919 180,696 186,640 192,755 199,046 205,519 212,178 Annual Project Tax Increment - 103,318 106,826 110,435 114,148 117,968 121,898 125,942 130,101 134,381 138,784 143,313 147,974 152,768 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 14 15 16 17 18 19 20 21 22 23 24 25 27,022,509 27,800,837 28,601,583 29,425,393 30,272,932 31,144,882 32,041,946 32,964,849 33,914,334 34,891,167 35,896,136 - 27,022,509 27,800,837 28,601,583 29,425,393 30,272,932 31,144,882 32,041,946 32,964,849 33,914,334 34,891,167 35,896,136 - 249,688 256,880 264,279 271,891 279,722 287,779 296,068 304,595 313,368 322,394 331,680 - 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 26,190 223,498 230,690 238,089 245,701 253,532 261,589 269,878 278,405 287,179 296,205 305,490 (26,190) 4,470 4,614 4,762 4,914 5,071 5,232 5,398 5,568 5,744 5,924 6,110 (524) 219,028 226,076 233,327 240,787 248,461 256,357 264,480 272,837 281,435 290,280 299,381 (25,666) 157,700 162,775 167,995 173,366 178,892 184,577 190,426 196,443 202,633 209,002 215,554 (18,480) 9 TI Calculations - Silos South SILOS SOUTH QOZB,LLC Asset ID Units/SF Year Start Years to Build Year End Tax Year Stabilized Taxable Value Building 2 Multifam ily 1 275 2024 3 2027 2 76,823,511 Building 3 Multifamily 1 220 2024 3 2027 2 61,458,809 Building 2 Parki ng 5 418 2024 3 2027 2 6,479,000 Building 2 Parki ng 5 185 2024 3 2027 2 2,867,500 Silos South Commercial 3 43,610 2026 3 2029 4 19,624,500 Total 167,253,320 Taxable Values Totals Multifamily 1 279,358/unit Total HTRZ CF 36,264,146 Office 2 375 psf ---Totals,if Bonded--- Retail 3 450 psf Bond Rate 6.66% Hotel 4 200,000/key Bond Fees 5.00% Parking 5 15,500/stall Total Bonded Proceeds . 13,712,398 Assumptions 2025 Parcel Tax Value Base Year 2025 15013770270000 6,667,900 HTRZ Zone(Years) 25 '15013770290000 1,829,900 Reassessment 2.88% 2.88% '15013770320000 6,425,900 Mill Rate 0.92% '15013770330000 5,185,700 Collection&Admin Fees 2.00% Total 20,109,400 Cash flow to HTRZ 80.00% Project Share of HTRZ CF 90.00% B2 6,829,623 50% B3 5,273,844 38% SSC 1,608,930 12% Total 13,712,398 100% 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Building 2 Multifamily 38,411,755 81,312,733 83,654,780 86,064,285 88,543,191 91,093,497 93,717,259 96,416,593 99,193,676 102,050,747 104,990,110 108,014,136 111,125,262 Building 3 Multifamily 30,729,404 65,050,186 66,923,824 68,851,428 70,834,553 72,874,797 74,973,807 77,133,274 79,354,941 81,640,598 83,992,088 86,411,309 88,900,210 Building Parking 3,239,500 6,857,604 7,055,123 7,258,331 7,467,393 7,682,476 7,903,754 8,131,405 8,365,614 8,606,568 8,854,463 9,109,498 9,371,878 Building Parking 1,433,750 3,035,064 3,122,483 3,212,419 3,304,947 3,400,139 3,498,073 3,598,828 3,702,485 3,809,127 3,918,841 4,031,715 4,147,841 Silos South Commercial 4,906,125 9,812,250 14,718,375 21,985,048 22,618,282 23,269,756 23,939,993 24,629,536 25,338,939 26,068,776 26,819,634 27,592,118 28,386,853 Total Taxable Value 20,209,400 78,720,535 166,067,837 175,474,585 187,371,512 192,768,365 198,320,664 204,032,886 209,909,636 215,955,654 222,175,816 228,575,136 235,158,776 241,932,044 Taxes 185,811 727,378 1,534,467 1,621,385 1,731,313 1,781,180 1,832,483 1,885,264 1,939,565 1,995,430 2,052,905 2,112,034 2,172,867 2,235,452 Base Year Taxes 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 Gross Tax Increment - 541,567 1,348,656 1,435,574 1,545,502 1,595,369 1,646,672 1,699,453 1,753,754 1,809,619 1,867,094 1,926,223 1,987,056 2,049,641 Collection&Admin Fees - 10,831 26,973 28,711 30,910 31,907 32,933 33,989 35,075 36,192 37,342 38,524 39,741 40,993 Net Tax Increment - 530,736 1,321,683 1,406,863 1,514,592 1,563,461 1,613,739 1,665,464 1,718,679 1,773,427 1,829,752 1,887,699 1,947,315 2,008,648 Annual Project Tax Increment - 382,130 951,612 1,012,941 1,090,506 1,125,692 1,161,892 1,199,134 1,237,449 1,276,867 1,317,421 1,359,143 1,402,067 1,446,227 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 14 15 16 17 18 19 20 21 22 23 24 25 114,325,998 117,618,925 121,006,698 124,492,049 128,077,788 131,766,807 135,562,080 139,466,669 143,483,721 147,616,477 151,868,268 156,242,523 91,460,799 94,095,140 96,805,358 99,593,639 102,462,230 105,413,445 108,449,664 111,573,335 114,786,977 118,093,182 121,494,614 124,994,018 9,641,816 9,919,529 10,205,240 10,499,181 10,801,589 11,112,707 11,432,785 11,762,083 12,100,866 12,449,407 12,807,987 13,176,895 4,267,311 4,390,222 4,516,673 4,646,767 4,780,608 4,918,303 5,059,965 5,205,707 5,355,647 5,509,905 5,668,607 5,831,879 29,204,478 30,045,654 30,911,057 31,801,387 32,717,361 33,659,718 34,629,217 35,626,641 36,652,794 37,708,502 38,794,619 39,912,019 248,900,402 256,069,470 263,445,027 271,033,023 278,839,576 286,870,980 295,133,712 303,634,436 312,380,005 321,377,473 330,634,094 340,157,334 2,299,840 2,366,082 2,434,232 2,504,345 2,576,478 2,650,688 2,727,036 2,805,582 2,886,391 2,969,528 3,055,059 3,143,054 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 185,811 2,114,029 2,180,271 2,248,421 2,318,534 2,390,667 2,464,877 2,541,225 2,619,771 2,700,580 2,783,717 2,869,248 2,957,243 42,281 43,605 44,968 46,371 47,813 49,298 50,824 52,395 54,012 55,674 57,385 59,145 2,071,748 2,136,666 2,203,453 2,272,164 2,342,853 2,415,579 2,490,400 2,567,376 2,646,569 2,728,043 2,811,863 2,898,098 1,491,659 1,538,399 1,586,486 1,635,958 1,686,855 1,739,217 1,793,088 1,848,511 1,905,530 1,964,191 2,024,542 2,086,631 10 ATTACHMENT D: HOUSING AND TRANSIT REINVESTMENT ZONE (HTRZ) POLICY ALIGNMENT SILO PARK DEVELOPMENT 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 PROJECT APPLICABILITY a.Threshold requirements of projects that incorporate housing: i. Projects must meet all applicable standards Confirmed. The project will have 740 total residential units, and objectives of the HTRZ Act and the 180 of which are at 60%or below. 180 units represents 24% approved HTRZ(per the State's condition of of all residential units,exceeding the threshold requirement of approval, the Salt Lake Central HTRZ 10%of units at 60%AMI or below. requires 10%of housing units be affordable to 60%the Area Median Income AMI-and below, or 20%must be affordable to 80% AMI or below). ii. At least 10%of housing units within a Confirmed. The project will have 740 total residential units, project must be affordable to those 180 of which are at 60%or below. 180 units represents 24% earning 60%the AMI and below,or,20%of of all residential units,exceeding the threshold requirement of units must be affordable to those earning 10%of units at 60%AMI or below. 80%AMI and below. iii. Projects must include activated,ground floor Confirmed. The project will have 75,000 sf of activated space if not a private residence. commercial ground floor space. Activated,ground floor space means a minimum of 50%of all ground floor, street-facing building facades must contain an active(commercial,retail,or office)use that is not exclusive to the tenants of the building. iv. Projects must comply with the CRA's • All new buildings will receive an ENERGY STAR Sustainable Development Policy including: score of 90+. • ENERGY STAR score of 90+ • All new buildings will incorporate all-electric • All-electric buildings infrastructure,expect restaurant spaces that have • On-site solar,OR,participation in requested to use natural gas for cooking and the non- Rocky Mountain Blue Sky LIHTC residential buildings that will utilize gas boilers for hot water heating.Waivers must be requested for these elements. • A waiver must be requested from the on-site net zero requirement.The project should participate in Rocky Mountain Blue Sky at a reasonable level to meet off- site net zero requirements. V. The applicant must provide sufficient Confirmed. There is a demonstrated$22M gap due to the cost evidence(including,but not limited to of public improvements and financing constraints.The the project pro forma, senior lender developer writes: agreement(s),equity investor agreements, "...the HTRZproceeds($22MMNPV)are directly tied etc.)that tax increment funding is necessary to costs incurred to build parking facilities, roadways, utility for the project to succeed and to infrastructure, and a park that provides access to the public... verify that the request is reasonable. This funding gap exists primarily due to financial metrics (e.g loan to cost and debt service coverage requirements) 11 required by capital partners not being met given the additional cost burden from the key factors__." The Developer intends to issue a bond to close the near-term $22 million gap. The requested tax increment reimbursements of$58 million over 25 years will help service the bond and a for other incurred costs. c.Affordable housing requirements i. Deed Restriction—If the project qualifies Confirmed.LURA to ensure affordability for 50+years(see for a Reimbursement based on the page 3 of application). 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 There is one deed-restricted LIHTC project with 180 units shall be located on different restricted to 60%AMI and below.There will additionally be floors of the building and spread among one building with 50%of the units designated as workforce bedroom counts(1-bedroom,2- housing for 80%AMI or below,with no deed restriction.The bedroom,3-bedroom,etc.)in the same unit counts are as follows: proportion as the units available 740 Mixed Income Residential Units within the rest of the project. • Affordable Units: 180 LIHTC 60%AMI(24%of total residential units) o Efficiency/Studio Units: 60 0 1 Bedrooms: 100 o 2 Bedrooms:20 • Market Rate Units: 560(76%of total residential units) o Efficiency/Studio Units: 152 0 1 Bedrooms:227 o 2 Bedrooms: 124 o 3 Bedrooms: 7 d. Eligible Project Locations— Confirmed. The project is within the Salt Lake Central Eligible projects shall be located in or HTRZ. associated with an active HTRZ that allows tax increment reimbursements pursuant to the HTRZ Act. e. Maximum Reimbursement Term— Confirmed.Proposed 25-year duration(maximum). 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— This project incorporates the following livability benchmarks Base level=60% beyond the Threshold: Projects may be eligible to receive an 1. Public Space additional 10%increase in the 2. Walkability reimbursement rate for meeting elements listed below,with each element being worth Additional 10%of total affordable units beyond Threshold: an additional 10%.The possible total 24%of all units are affordable,which is 14%above the maximum reimbursement rate is 90%. Threshold requirement. 1. Incorporating Qualifying Livability Benchmarks in the project beyond the FY25 Housing Priority—Neighborhood Commercial and Threshold Requirements. Services—has also been met. 2. Providing an additional 10%of total affordable units at 60%AMI and below beyond the Threshold Requirements. 12 3. The inclusion of 3-and 4-bedroom units in projects that incorporate housing. 4. Meeting a priority identified in the CDA's Annual Housing Funding Strategy established pursuant to the Housing Allocation Funds Policy. g. Maximum Reimbursement Amount— $58,630,000 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 I DESCRIPTION I PROJECT 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 24%of the units will be affordable at 60%AMI or below. 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 county statistical area for households of the same size. L(B) At least 3%of the proposed dwelling units 24%of the units will be affordable at 60%AMI or below. occupied or reserved for occupancy by households with a gross household income equal to or less than 60%of the median gross income of the county statistical area for households of the same size. ii.(A) At least 5 1%of the developable area within Confirmed.More than half of the project's square footage a housing and transit reinvestment zone as is dedicated to residential uses. residential uses. ii.(B) An average of at least 50 dwelling units per Confirmed. The development meets this requirement with acre within the acreage of the housing and over 90 units per acre. transit reinvestment zone dedicated to residential uses. iii. Mixed-use development. Confirmed. The development includes residential, commercial,retail,and hotels aces. iv. A mix of dwelling units to ensure that at Affordable units more than one bedroom= 11% least 25%of the dwelling units has more Market rate units more than one bedroom=23.4% than one bedroom. Total=33.4% 13 ATTACHMENT E: HTRZ MAP N l t • 4(� i. .. Legend .r HTRZ Boundar, — +• Dwelling Units perAcre _ 1.49 =0 75 �. 76-125 i � - - 126.225 ;' _226+ 0 0 075 015 0 3 Miles 14 ATTACHMENT F: PROJECT APPLICATION 15 Salt Lake City Community Redevelopment Agency Danny Walz 451 S State St Salt Lake City, UT 84111 January 14, 2026 Dear Danny, We are pleased to submit our application for the Housing and Transit Reinvestment Zone (HTRZ) tax incentive program to support The Silos—a transformative mixed-use development at the western gateway of the Granary District. This submission reflects our continued commitment to advancing the City and CRA's shared vision for dense, transit-oriented, sustainable, and inclusive development that enhances the cultural fabric of this historic district. To ensure the financial feasibility of The Silos and to maximize its contributions to the area, we respectfully request the following: 1. Full 90% HTRZ Tax Incentive The Silos project is ambitious in both scope and impact, delivering 740 residential units — 24% of which are deeply affordable—alongside 75,000 square feet of commercial space. It includes substantial infrastructure investments such as buried utility lines, structured parking, preservation of the historic silos, a one-third-acre public park, and enhanced bike and pedestrian connectivity. These public benefits require significant upfront capital, making the full 90% HTRZ incentive essential to bridging the financial gap and securing the long-term success of the project. 2. Waiver of the CRA's Net Zero Sustainability Requirement for LIHTC and Hotel We share the City's sustainability goals and have integrated an extensive range of environmentally responsible design strategies, including: Preservation of historic silos structures Fully electric residential design with the exception of domestic hot water at Bldg 1-3 and excluding limited restaurant service specs required by tenants ENERGY STAR scores of 90+for all new construction On-site solar for the LIHTC building 30 EV charging stations, 96 EV-ready stalls, and robust support for cycling and transit Despite these efforts,the site's density, limited rooftop area, and conflicting infrastructure needs make true net-zero—particularly via off-site RECs—financially and practically unfeasible, especially for affordable housing. We respectfully request a waiver for net zero requirements for the LIHTC portion of the project in recognition of the meaningful sustainability measures already being implemented and an exception for the restaurant spaces and domestic hot water in the other buildings as an exception to the zero emission portion of the project. As an offset, we are prepared to enroll in off site net zero options through Blue Sky for the entirety of the project with the exception of the LIHTC building. The Silos is already under construction and moving forward in multiple phases. Timely review of this application is critical to maintaining project momentum and securing the necessary financing. We're committed to working closely with the CRA to expedite the review process and ensure the project delivers on its full potential as a model for equitable, transit-connected development. 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 your feedback and to next steps. Sincerely, 0 Ben Lowe Brandon Blaser Principal Founder & President 2170 S McClelland St. Blaser Ventures Suite 100 386 W 500 S, Suite 100 Salt Lake City, UT 84106 Salt Lake City, UT 84101 Phone: 801-582-3188 Phone: 214.235.8778 blowe@loweprop.com brandon@blaser-ventures.com CRA TIR/HTRZ Application Silo Park (All Phases) 1. PROJECT SUMMARY PARCEL NUMBERS: 15013810010000—455 W 500 S 15013760110000—425 W 500 S 15013760140000— 522 S 400 W 15013770240000— 536 S 400 W 15013770270000—470 W 600 S 15013770290000—440 W 600 S 15013770330000— 553 S 500 W 15013770320000— 568 S 400 W DATE: January 2026 TOTAL PROJECT COST: Approx. $390 million Phase I: $59.1 million (LIHTC: $41 million, garage: $16 million) Phase II: $32 million (park: $1 million, roads and infrastructure: $1 million, 65 market rate units: $30 million), Phase III: $202 million (275 Market Rate & 220 Market Rate units, —36,860 square feet retail/Food & Beverage, —682 parking stalls), Phase IV: $19 million (new build retail) Future Phase: $80 million (Hotel) PROPOSED PROJECT START/END DATE: Phase I: Q1 2024/Q1 2026 Phase II: Q3 2024/Q4 2025 Phase III: Q3 2025/Q4 2027 Phase IV: Q3 2025/Q4 2026 PROJECT ADDRESS: 500-600 South 400 West, Salt Lake City, UT CONTACT: Ben Lowe I blowe@loweprop.com 1 801.582.3188 Brandon Blaser I bra ndon@blaser-ventures.corr 1 214.235.8778 APPLICANT SUMMARY JOINT APPLICANTS: BCG TBD Manager, LLC Silos South BCG LPG Partners LLC Note: This is a joint application between the two entities listed above. 2170 S McClelland Street, Suite 100 Salt Lake City, Utah 84106 2 OWNERSHIP: Olympus QOZB LLC Silos South QOZB LLC Silos Midblock QOZB, LLC 3. DEVELOPMENT OVERVIEW PROJECT SUMMARY: Set against the backdrop of the preserved historic grain silos that inspired its name, The Silos is a transformative redevelopment by Lowe Property Group, Blaser Ventures, and Catalyst Opportunity Funds. Positioned at the gateway to Salt Lake City and the Granary District,just west of the Post District, this project serves as a key entry point from the airport, blending the district's industrial heritage with innovative, future-forward design. This mixed-use development features inclusive housing, vibrant retail spaces for local and regional businesses, community-centered open areas, engaging public plazas, and adaptable commercial spaces. By thoughtfully integrating historic structures with contemporary architecture,The Silos fosters a strong sense of place and reinforces the Granary District's unique identity and growth trajectory. Phases I & II, currently under construction, include the Silos LIHTC affordable housing project with 180 units, 65 market-rate housing units, and community-oriented spaces such as a one- third-acre urban park, midblock walkways, and pedestrian-friendly plazas. Phase III is partially underway with the 220 unit market rate project commencing construction in July 2025 and the 275 unit market rate project expected to commence construction prior to year end. Future phases, which are progressing through design, can commence construction as early as in Q4 2025 and be completed over the next two to four years with HTRZ support. At full build-out, The Silos will be a vibrant, inclusive mixed-use community that prioritizes placemaking, sustainability, and connection. Despite not yet receiving HTRZ funds for the project, the applicant has been successful in commencing construction on a number of phases on the block. Since purchasing the land over three years ago, the applicant has diligently worked to negotiate with capital partners to proceed with construction before HTRZ funds are received and while a funding gap still exists. The alternative would have been to delay the improvement of this block which sits at the entrance to downtown for more than two years. Negotiations with capital partners were successful based on the understanding that HTRZ funding shown in proformas and budgets is pending and would be recognized prior to the completion of much of the construction on the block. CONSTRUCTION TYPE: 3 Renovation/Rehabilitation and/or modification of Existing Structures, Energy-Efficient Upgrades, New Construction, Demolition of Existing Structures, Multi-family, Retail, Hospitality, and Community Amenities. LAND AREA: 8.2 acres BUILDING AREA: Total — 1,067,000 square feet, including 740 Mixed-Income Residential Units, Retail/Food & Beverage, one-third acre of public park, structured and surface parking, and 175-Key Hotel. LAND USE MIX: 24%of the residential units will be affordable, restricted at 60% AMI subject to a Land Use Restrictive Agreement (LURA), which ensures units remain affordable for 50 years or more, exceeding the CRA threshold of 10% at 60%AMI or 20%at 80%AMI.The affordable units are part of Phase I and currently under construction with completion set for Q1 2026. • 740 Mixed Income Residential Units o Affordable Units: 180 LIHTC 60% AMI (24% of total residential units) ■ Efficiency/Studio Units: 60 (33%) ■ 1 Bedrooms: 100 (56%) ■ 2 Bedrooms: 20 (11%) o Market Rate Units: 560 (76% of total residential units) ■ Efficiency/Studio Units: 152 (27.1%) ■ 1 Bedrooms: 277 (49.5%) ■ 2 Bedrooms: 124 (22.1%) ■ 3 Bedrooms: 7 (1.3%) • —75,000 square feet Commercial — Retail/Food & Beverage, etc. o Phase 11: 6,750 square feet o Phase 111: 36,860 square feet o Phase IV: 31,000 square feet • One-third Acre Public Open Space • 175-Key Hotel • 889 Parking Stalls (810 garage & 79 surface) CURRENT AND PROPOSED ZONING. General Commercial, no proposed zone change 4. ELIGIBILITY PROJECT LOCATION: Salt Lake Central HTRZ Zone PROJECT OBJECTIVES 1. ALIGNMENT WIT4 MOST RECENT PROJECT AREA PLAN • Anchors the western gateway of the Grand Boulevard Vision Plan (ongoing) • Borders the northern edge of the Granary District Area Plan (2024) 4 • Situated along the western route (500 W) of the Green Loop Plan The Silos project serves as a model for coordinated urban development that reflects and reinforces Salt Lake City's most transformative planning efforts, including the Granary District Area Plan, the Green Loop Plan, and the Grand Boulevard Plan. Each of these initiatives emphasizes mobility, sustainability, public space, and community well-being— all of which are core to the Silos vision. In addition to implementing these priorities through design, Blaser Ventures has directly contributed to the planning and visioning of these efforts, offering technical input, participating in public engagement processes, and dedicating resources to help shape their execution. Granary District Area Plan The Silos aligns strongly with the Granary District Plan by improving mobility, fostering inclusive community connections, and transforming underutilized land through thoughtful, human-scaled urban design. The project introduces midblock walkways, a one-third-acre public park, and a network of pedestrian-friendly open spaces, forging critical north-south and east-west connections across 400 W, 500 W, and 500 S. These connections are activated by over 80,000 square feet of publicly accessible retail, dining, and cultural uses that strengthen neighborhood identity and foster daily interaction. With transit access via FrontRunner and the future TRAX extension, plus robust biking and walking infrastructure, The Silos supports the plan's goal to reduce transportation barriers and enhance district-wide accessibility. The preservation of the grain silos further honors the area's industrial heritage, while the design of Silo Park creates a shaded, flexible gathering space that reflects the aspirations of a dynamic, inclusive community. Green Loop Plan Located along the western edge of the future Green Loop, The Silos project embraces the plan's vision of a connected, resilient, and welcoming public realm. Its design contributes to a robust downtown urban forest, with extensive tree canopies, shaded walkways, and landscaped park strips that provide environmental benefits and enhance pedestrian comfort. Green infrastructure—including native planting and stormwater management elements—is integrated into midblock corridors and open spaces to improve water quality and support urban cooling. Public-facing amenities and human-scaled design foster a "community front yard" atmosphere, turning formerly industrial land into a vibrant and ecologically responsive neighborhood node. As a tangible step in implementing the Green Loop, The Silos helps set a precedent for how private development can advance climate resilience and neighborhood connectivity at a citywide scale. Grand Boulevard Plan Fronting both 500 S and 600 S, The Silos is positioned to play a key role in transforming 5 these corridors into the multimodal, placemaking-focused boulevards envisioned in the Grand Boulevard Plan. Project streetscapes feature widened sidewalks, protected bike infrastructure, pedestrian crossings, park strips, and buried utilities, all contributing to a safer, greener, and more cohesive public realm. The project's orientation and active ground floor uses support urban vibrancy and enhance the pedestrian experience, creating strong transitions between public and private space. In addition to implementing these improvements on-site, Blaser Ventures has played a proactive role in the development of the Grand Boulevard Plan, contributing ideas, feedback, and implementation strategies to align private development with public infrastructure investment. 2. TIR THRESHOLD REQUIREMENTS: • Minimum Investment of$12 million in capital expenditures: The total project cost is $390 million. In addition, each phase of the project exceeds the minimum investment amount. • Salt Lake City-based Business: The applicant and all owners (Olympus QOZB, Silos South QOZB and Silos Midblock QOZB) are Salt Lake City based businesses. • Facility Improvement or Expansion: See VI. PUBLIC BENEFIT- Neighborhood Safety, Public Space/Public Art, Walkability, Historic Preservation • Job Retention and/or Job Creation: See VI. PUBLIC BENEFIT- Permanent Job Creation • Demonstrate TI is Necessary for Project to Succeed: See 4. ESTIMATED TAX INCREMENT REQUESTED and Attachments: Sources and Uses • Employ Sustainable Construction Practices: See 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, & SB208) 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 6 • Improving water conservation and air quality resources through efficient land use and better utilization of transit opportunities. More specifically: Promoting Greater Utilization of Public Transit: The Silos is located within a half mile of Salt Lake Central Station, a major regional hub that serves both the FrontRunner commuter rail and the TRAX Blue Line light rail. This strategic proximity encourages transit-oriented living, reduces car dependency, and supports broader goals around sustainable urban mobility and accessibility. �d SALT LAKE CENTRAL f� '` ' / f _ t STATIONIk •� ` Ili�� `� f � i :..: ,�►�}�,• ���� i WOW WON 9 min SILOS" _ 5 Increasing Availability of Attainable Housing: Provides a total of 740 residential units—achieving a density of 92.4 units per acre, well above the state's required minimum of 50 units per acre. Housing affordability also exceeds state thresholds, with 24% of units restricted to households earning 60%of Area Median Income (AMI), compared to the state requirement of 12% (including just 3% at or below 60% AMI). These income-restricted units are secured under a Land Use Restrictive Agreement (LURA), ensuring long-term affordability for 50 years or more. Transformative Mixed-Use Development and Collaborative Investment: Converts a former industrial site into a vibrant, inclusive community with affordable and market-rate housing, urban flex space, and public open areas. Located in Salt Lake City's Granary District and within a designated HTRZ, the project is strategically aligned with major city infrastructure initiatives, including the Green 7 Loop, the 400 West grand boulevard redesign, and a planned TRAX extension. It fosters walkability, transit connectivity, and collaborative investment while activating a key gateway site with housing, retail, hospitality, and cultural amenities that support long-term district revitalization. Maximizing available planning and economic development tools: Leverages the Housing and Transit Reinvestment Zone (HTRZ) designation to support dense, mixed-use growth along key transit corridors. It aligns with Salt Lake City's long-term planning initiatives—such as the Green Loop, TRAX expansion, and 400 West streetscape improvements—ensuring integrated infrastructure investment. By combining state financing tools, LIHTC funding, and coordinated public-private planning, the project catalyzes growth along the transit corridor while reinforcing broader goals of connectivity, affordability, and economic vitality. Increasing Access to Employment and Educational Opportunities: Places residents within walking distance of Salt Lake Central Station, connecting them directly to regional job centers and higher education institutions via the TRAX and FrontRunner systems. Its central location in the Granary District also provides immediate proximity to downtown employers, creative industries, and workforce development programs. By integrating affordable housing in a highly accessible urban core, the project removes transportation barriers and supports upward mobility for a diverse range of residents. Improving Water Conservation and Air Quality: Promotes compact, high-density land use near major transit, reducing reliance on personal vehicles and lowering emissions. Its location adjacent to Salt Lake Central Station and future TRAX expansions encourages transit ridership, biking, and walking, helping to curb air pollution. Additionally, the project's sustainable site design incorporates drought-tolerant landscaping and water-efficient systems, contributing to reduced water consumption and supporting the City's environmental and climate goals. 4. ESTIMATED TAX INCREMENT REQUESTED AND WHY IT IS NECESSARY FOR PROJECT'S SUCCESS The estimated tax increment requested as part of this application is $58,631,569 (total 25-year tax increment) or $22,283,249 (net present value assuming tax increment dollars are bonded). The applicant expects to issue a bond for the approved HTRZ proceeds. The tax increment dollars from the HTRZ are then expected to be the primary source of funds for bond payments. As demonstrated in the table below, the HTRZ proceeds (—$22MM NPV) are directly tied to costs incurred to build parking facilities, roadways, utility infrastructure, and a park that provides access to the public. Each of the different individual projects (e.g. Building 1, NE Retail, South Commercial, etc.) on the block are reliant on the parking facilities, infrastructure, etc. and therefore HTRZ proceeds generated by each individual project are allocated towards the construction of these improvements. A more detailed site 8 map breakdown outlining the costs of the parking and infrastructure improvements is provided as attachment 9. HTRZ Funds Generated(NPV) NE Retail 1,158,555 Hotel 2,989,818 LIHTC Garage 266,468 LIHTC Apts 2,690,837 Building 1 1,465,174 Building 2 6,829,623 Building 3 5,273,844 South Commerical 1,608,930 Total Sources 22,283,249 Allocation of HTRZ Funds North Road&Utilities 2,300,000 South Road&Utilities 1,300,000 Park 1,200,000 LIHTC Garage Hard Costs(207 Structured) 6,883,781 Building 2 Garage Hard Costs(418 Structure,58 Surface) 10,599,468 Total Uses 22,283,249 A funding gap exists in the amount equal to the -$22MM net present value amount noted above. This funding gap exists primarily due to financial metrics (e.g. loan to cost and debt service coverage requirements) required by capital partners not being met given the additional cost burden from the key factors outlined and quantified below and herein. For example, minimum DSCR required by lenders is 1.20x with a maximum loan to cost ("LTC") ratio from lenders of 60%. The equity markets have demonstrated ability to only go up to -78% LTC in the project capital stack. These restraints create the need for additional sources to fully capitalize the projects-as demonstrated in the provided proformas, capital stacks, and budgets. While the project's location in an opportunity zone allows for additional capital sources, it does not alter the financial metrics these capital sources require and thus, a funding gap remains. As mentioned in the project summary, a number of phases on the block have already commenced construction despite not yet receiving HTRZ proceeds. This achievement was possible by negotiating with capital partners to proceed with the improvements despite a funding gap. The funding gap in some cases is being temporarily bridged via out of market measures such as foregoing the receipt of construction and development fees that would otherwise be recognized. These out of market measures were only agreed upon with the understanding that HTRZ proceeds would eventually fill the funding gap and fees would be recognized. The Silos development provides numerous public benefits, including, a substantial percentage of affordable housing, significant historic preservation, generous public green- and open-spaces, alternative transportation options, and improved pedestrian connectivity—all of which align with the City's sustainability and infrastructure goals. 9 However, these benefits add substantial costs to the project, making HTRZ tax increment financing critical for financial feasibility. Key Cost Factors & Necessity of HTRZ Support 1) Affordable Housing Commitment Estimated Additional Costs: —$11,000,000 Ensuring a mix of affordable and market-rate housing is key to fostering a diverse, inclusive community, yet it significantly impacts project financials. The LIHTC vs Market Rate opportunity cost is the value left on the table after the difference between a market and LIHTC rate is discounted back. This is at a 10% discount rate for the difference between cash flows of the two scenarios. 24%of units at 60%AMI exceeds the City's affordability goals but generates lower revenue over the 50-year deed restriction compared to market-rate units, requiring subsidies to remain viable. Financing Challenges: Reduced rental income affects debt service capacity, making it difficult to secure traditional financing without HTRZ support. Mixed-Use Balance: Incorporating affordable housing alongside public amenities, open spaces, and retail spaces increases upfront costs while reducing immediate returns. Public Benefit: HTRZ incentives allow the project to maintain affordability while integrating community-focused elements such as public plazas, green spaces, and neighborhood-serving retail, ensuring a truly mixed-income, mixed-use development. The affordable housing on the block, owned by Silos Affordable LLC, is not affiliated with the underlying property other than being a lessee to a development lease by Olympus QOZB. Its capitalization and cash flows are not part of the Olympus QOZB development and the property ownership described in this request. Despite this, Olympus QOZB allowed a below market lease to move forward and commenced a low yielding asset of parking on the site in order to meet the upcoming requirements of the HTRZ. For calculation purposes, we have included the opportunity cost to building an affordable project vs a market rate product. 2) Structured Parking, Infrastructure, and Land Intensity Estimated Additional Hard and Opportunity Costs: $60 million Developing the Silos site to support high density urban mixed-use that aligns with the City's sustainability goals necessitates structured parking and integrated public amenities—both of which significantly increase development costs compared to lower-intensity models. 10 • Structured Parking Requirement: The structured and surface parking on the block will be accessible to both residential tenants and members of the public. With 740 units and a density of 92.4 units per acre, structured parking is necessary to meet demand without sacrificing developable land area. This adds significant costs compared to surface parking. Estimated hard costs: $28 million • Utility and Site Infrastructure Upgrades: The project includes internal site infrastructure as well as the burial of power lines along 500 South improving visual quality, safety, connectivity and long- term resilience. Estimated additional cost: $1.4 million • Neighborhood Park Dedication A dedicated one-third-acre public park within the site footprint reduces buildable area, limiting revenue potential while providing a valuable community amenity. The park will be open and accessible to the public via an already executed and recorded midblock walkway easement (see attachment 7). Estimated hard costs to construct the park: $846,000 • Historic Preservation Trade-Offs: Preserving the existing historic grain silos honors the site's legacy and enhances placemaking but limits full land utilization. Estimated opportunity cost: $30 million (e.g., loss of 40 potential hotel rooms) Public Benefit: HRTZ support enables development at an intensity that supports walkable,transit- connected urban growth while preserving character-defining elements, public space, and the site's long-term viability as a mixed-use hub. Without structured parking and open space, density and livability would be significantly compromised. 3) Sustainability& Resilience Measures Estimated Additional Upfront Costs: —$180,000 (Includes costs for solar panels,framing, electrical, plumbing, and energy-efficient lighting) The Silos development is committed to integrating cutting-edge sustainability and resilience measures that align with the City's climate action goals. However, these initiatives come with significant upfront and ongoing costs that could hinder implementation without HTRZ support. 11 Key Sustainability & Resilience Initiatives • Energy-Efficient Design & Net-Zero Goals— Meeting Energy Star 90+ and Enterprise Green Communities standards, incorporating high-performance building systems, renewable energy credits, and enhanced insulation strategies—reduces long-term energy consumption but significantly increases initial project costs and adds ongoing project costs with a —$50,000/annual fee to participate in the Blue Sky Renewable Energy Program. • Alternative Transportation & Pedestrian Connectivity— Investments in bike infrastructure, transit integration, mid-block walkways, a public park, and car- free public spaces promote walkability and reduce vehicle reliance. • Rooftop Solar Panels—Solar panels on the LIHTC building will offset energy usage for the leasing office and common areas, yet the upfront $120,000 investment will take nearly 14 years to recoup. Public Benefit of HTRZ Support HTRZ funding is crucial to ensuring these sustainability features are fully realized, positioning the Silos development as a model for resilient urban design while providing long-term operational savings for tenants. Without these investments, the project's ability to advance the city's climate objectives and improve community well-being will be significantly limited. 4) Historic Preservation &Adaptive Reuse Estimated Additional Restoration/Maintenance Costs: —$200,000 Preserving the remaining Grain Silos requires investment beyond what would be needed for new construction, along with ongoing maintenance obligations to ensure their long-term stability and public value. • Structural Analysis: Extensive inspections and investigations have been conducted to assess and confirm the structural integrity of the silos. This due diligence ensures the feasibility of preservation without requiring reinforcement at this stage, though future costs may arise to maintain structural performance overtime. • Ongoing Maintenance: Preserved structures require continuous upkeep, including exterior repairs, protective treatments, and structural monitoring— costs that typically exceed those of conventional new buildings. • Land Value vs. Preservation: The land beneath the silos holds high development potential. Without financial incentives, there is pressure to demolish and redevelop with greater density rather than retain these character-defining structures. Public Benefit: Preserving the grain silos strengthens the district's unique character, fosters 12 placemaking, and attracts long-term investment. Adaptive reuse supports sustainability goals by conserving embodied carbon, reducing demolition waste, and limiting the need for new materials. Continued maintenance ensures these public benefits endure—aligning with the City's broader environmental, cultural, and economic objectives. Risk Without Incentives Without HTRZ tax credits, the project would be unfeasible. At best, it would likely need to shift toward a market-rate-only model, resulting in: • Loss of Affordable Housing— Reducing access to equitable living opportunities. • Elimination of Public & Cultural Spaces— Diminishing community engagement and place-making efforts. • Scaled-Back Sustainability Commitments— Undermining climate resilience and long-term environmental benefits. 5. HOW PROJECT MEETS THE CRA'S SUSTAINABILITY POLICY The project prioritizes adaptive reuse as a core sustainability strategy, significantly reducing its carbon footprint by limiting the need for new materials and minimizing construction waste. Our commitment to the full preservation of the six historic grain silos ensures that this iconic element of the Granary District is retained and thoughtfully integrated into the development. Key sustainable measures include: • Full preservation of the six historic grain silos • On-site repurposing and reuse of salvaged materials, including wood, brick, steel, and concrete • Integration of low-carbon building systems and materials, such as repurposed rail steel and salvaged trusses for architectural features and park infrastructure By preserving the silos and reusing materials already embedded in the site, the project conserves embodied carbon, diverts demolition waste from landfills, and contributes to a more sustainable and place-based development model. These actions reinforce the CRA's sustainability goals and support the enduring identity of the Granary District. High Energy Performance An ENERGY STAR score above 90 (See Energy Star Score Attachments) for all Phases will be achieved for all new construction (excluding restaurants that require gas). The project is designed to be fully electric, with residential units utilizing all-electric appliances. The only exception is a limited gas service for restaurant tenants, 13 representing a relatively small percentage of the approximately 1,067,000 gross square feet of the project. While the goal is to maximize electrification, restaurant tenants have specific operational requirements that currently make all-electric cooking impractical. Standard LOls with restaurant tenants include provisions that necessitate gas service due to the lack of reliability of electric alternatives in high-performance commercial kitchens: • Future Tenant A: "Landlord to provide gas line and gas meterstubbed 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." • Future Tenant B: "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 low- carbon, 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, promoting walkability and reducing reliance on car travel. • Proposed bike paths along street frontages, complemented by secured bike parking and storage facilities for residents, visitors, and retail patrons. • 30 Electric charging stalls, with 96 additional EV ready stalls making it convenient to have an electric vehicle. • Meeting and focus rooms within both the LIHTC and market rate residential buildings to reduce the need for residents to commute daily for work or study. Low-Carbon Materials and Efficient Design — The project incorporates low-carbon materials through extensive adaptive reuse of existing buildings, repurposing brick and steel from the site for the park canopy and using old rail steel for architectural details throughout the park and development. Additionally, native, drought-tolerant landscaping will reduce maintenance needs, lower carbon emissions, and enhance environmental health. 14 On-site Net-Zero • Rooftop Solar—The Silos development is a high-density urban project with limited available land and rooftop space, making large-scale solar panel installations impractical for fully offsetting energy usage. While the LIHTC project will take advantage of financial incentives to install rooftop solar, the panels will generate only about 5% of the building's energy use, making it more of a symbolic gesture than a viable energy solution for other buildings on the site. The project team is exploring targeted solar applications where feasible, but the site's density and competing rooftop needs—such as mechanical systems and shared resident amenities—significantly limit the potential for on-site renewable energy generation. • Wind Turbines—While wind turbines can technically be used in denser urban settings, they are generally not considered a highly viable option due to the turbulent and unpredictable wind patterns caused by urban environments and the limited amount of energy they are able to generate. • 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 While the intent behind requiring net-zero energy for new developments through the purchase of Renewable Energy Credits (RECs) is rooted in sustainability, imposing the purchase of$60,000 in annual off-site Renewable Energy Credits (RECs) is an unnecessary financial burden, especially for the affordable housing units, which would incur$10,866 annually in additional costs. These additional costs make it an unreasonable mandate for a development that prioritizes both mixed-income housing and economic feasibility while already exceeding sustainability standards, with all buildings achieving an Energy Star rating of 90 or higher—placing them in the top 10% of energy-efficient buildings nationwide. • According to the Blue Sky Environmental Impact Calculator for Rocky Mountain Power Utah, the additional costs for the project are as follows: ■ Affordable Housing (180 units): 1,337,945 kWh = $10,866 annually ($60/unit/year) ■ Market-Rate Housing (560 units): 4,560,000 kWh = $33,420 annually ($60/unit/year) ■ Commercial, Common Areas & Garage (Buildings 1-3): 2,148,590 kWh = $16,548 annually ■ NE Retail (Bldg 4) & Hotel: 2,525,200 kWh = $19,182 annually 15 ■ Total Project Energy Offset (Buildings 1-3): 9,233,790 kWh = $64,926 annually Key Issues with the REC Requirement: • Financially Burdensome & Redundant—The development already significantly minimizes energy consumption through high-performance design, making RECs an unnecessary cost with no direct impact on actual energy use. • Unviable On-Site Solar Options—As a high-density urban site, Silos has limited rooftop and land area, restricting large-scale solar installations. While targeted applications are being explored, requiring RECs penalizes the project for site constraints. • Limited Local Environmental Benefit— RECs are often sourced from geographically distant locations, doing little to support Salt Lake City's local grid or renewable energy infrastructure. 6. PUBLIC BENEFII Permanent Job Creation & Economic Impact The project will generate permanent jobs through nearly —75,000 square feet of commercial space, attracting local businesses and restaurant operators. Additionally, the 740 residential units and 175 key hotel will support long-term employment opportunities, including leasing, maintenance, and contracted service vendors. Affordable Housing (LIHTC) 24%of the residential units will be designated as affordable, restricted at 60%AMI, and subject to a Land Use Restrictive Agreement (LURA) to ensure affordability for 50 years or more. Commercial Space A core principle of the project is supporting and prioritizing local businesses, restaurants, and services, enhancing the district's character and fostering economic opportunities for local entrepreneurs. The project will prioritize commercial tenants that provide products and services currently underrepresented in the neighborhood (e.g. food and beverage), ensuring a diverse and well-rounded mix of offerings that meet community needs. Transportation Opportunities The project actively encourages alternative transportation through a combination of infrastructure improvements and strategic planning: • Biking, Walking &Transit—The development supports non-car travel with secured bike parking, storage, and enhanced streetscapes and sidewalks (see Attachment 5a, Site and Landscape Plan). 16 • Electric Vehicle Charging—The site will include 30 public EV charging stations, with infrastructure for 96 additional future stations to accommodate growing demand. o Phase I: 8 EV stalls in the Silos LIHTC garage. o Phase III: 22 EV stalls in Building 2. • Transit Accessibility—The 600+ shared parking garage stalls benefit from the site's proximity to Salt Lake Central Station (serving the FrontRunner and TRAX Blue Line) and six bus stops within 1-2 blocks. • City & UTA Coordination —The project team is actively working with city agencies on key infrastructure projects, including the Green Loop, Grand Boulevard streetscape enhancements, and the 400 W multimodal corridor. The proposed TRAX extension, which will run along 400 W with two transit stops within a one-block radius, further strengthens connectivity. • Walkability& Accessibility—The project prioritizes pedestrian-friendly design, integrating public spaces, retail, dining, and entertainment within a 10-minute walking radius to enhance urban vibrancy. Neighborhood Safety& Community Engagement The project enhances neighborhood safety through a holistic approach that includes public space activation, improved connectivity, and thoughtful design. These elements foster a vibrant, resilient community where residents feel both secure and connected. Public Space & Public Art The Silos development prioritizes community-centered public spaces that promote social interaction and celebrate the district's unique character: • A one-third-acre public park at the heart of the development will host community programming to foster cultural engagement and attract visitors. Additional public placemaking elements will further activate the Granary District. The park will be open and accessible to the public via an already executed and recorded midblock walkway easement. • The Project has recorded midblock walkway easements for community-focused outdoor public space that invites and promotes social interaction, neighborhood identity, and urban character. (see Attachment 7). • Public art installations, including activation of the grain silos, murals along buildings facing public roads, artistic reuse of historic materials, and dedicated exhibition spaces, will highlight the community's history, identity, and culture while fostering an authentic, creative atmosphere. • Cultural events through programming in the park, concerts, activities, etc. Walkability& Urban Design The Silos is designed to improve the pedestrian and cycling experience, encouraging car-optional living with transit access and walkable amenities. The project enhances 17 sidewalks, walkways, pedestrian-scale lighting, seating, and landscaping (see Attachment 5a, Site and Landscape Plan) to create a welcoming and safe urban environment. Adaptive Reuse to Reduce Carbon Footprint The project prioritizes adaptive reuse as a key sustainability strategy, significantly reducing its carbon footprint by limiting the need for new materials and minimizing construction waste. Our commitment to the full preservation of the six historic grain silos ensures that a central piece of the Granary District's industrial legacy is retained and meaningfully integrated into the site. Key sustainable measures include: • Full preservation of the six historic grain silos • On-site repurposing and reuse of salvaged materials, including wood, brick, steel, and concrete. For example, current design anticipates railroad ties and beams being incorporated into the walkways and park design. We are committed to preserving the historic Silos on site that remain. The steel chute structure is being pared back for safety reasons and anything cutoff from that steel structure will be recycled. The old rail line and overhead rail steel structure will either be incorporated into the landscape and/or building design or recycled. All of those materials will be diverted from the landfill. • Integration of low-carbon building systems and materials, such as repurposed rail steel and salvaged trusses for architectural features and park infrastructure By preserving the silos and reusing existing materials, the project conserves embodied carbon, reduces landfill-bound demolition waste, and contributes to a more sustainable development model. These strategies not only reduce environmental impact but also reinforce the unique identity and authenticity of the Granary District. 7. ATTACHMENT CHECKLIST (see separate Attachment section) 1. Sources and uses 2. Operating pro forma 3. Tax Increment Reimbursement Calculation 4. Organizational Chart 5. Appraised Project Value— (Provided for portions of the project that have received, will provide future appraised values when receive) 6. Preliminary plans (include renderings if available) a. Site Plan and Phasing Plan 18 b. Floor Plans and Elevations (LIHTC, Buildings 1-3, Casket & former Miller) c. Project Renderings 7. Midblock Public Easement Recordation 8. Energy Star Design Scores a. Silos LIHTC & Solar Proposal b. Building 1 c. Building 2 d. Building 3