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006 of 2021 - Revising Real Property Disposition PolicyREDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______ Real Property Disposition Policy RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THE REAL PROPERTY DISPOSITION POLICY WHREAS, on October 18, 2016, pursuant to Resolution No. R-36-2016, the Board of Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Real Property Disposition Policy (“2016 Policy”), and WHEREAS, the Board now desires to repeal and replace the 2016 Policy, and WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act; and WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for project area development, and WHEREAS, the RDA utilizes real property disposition to implement project area plans, strategic plans, and Salt Lake City master plans. WHEREAS, the RDA’s disposition of real property includes the sale of real property or long-term lease of real property. Such leases of real property for durations greater than twenty-five years shall be referred to in this policy as “lease agreements.” NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Real Property Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety and replaced with the following: 1. Administration and Approval Process. Unless otherwise designated herein, the administration and approval process for the disposition of RDA-owned real property shall be conducted in the following manner: a.The Board shall be provided reports on the status of all RDA-owned real properties, including properties actively being disposed of, as according to the Reporting procedures outlined herewith. b. As determined by the RDA Executive Director, RDA-owned properties may be identified as candidates for disposition and authorized to be disposed of according to the Methods of Disposition contained herewith. c.If a satisfactory offer is received on an RDA-owned property, and the disposition terms and conditions are approved by the RDA Executive R-6-2021 Director, RDA staff shall dispose of the real property pursuant to the RDA’s administrative procedures, unless disposition terms are required to be forwarded to the Board for consideration and approval of the sales / lease price according to the Disposition Price Protocol outlined herewith. d. If the disposition requires the approval of the Board, upon approval of the disposition price by a majority vote of the Board real property disposition shall be arranged pursuant to the RDA’s administrative procedures. e.The RDA Executive Director may enter into exclusive negotiation, option to purchase, development agreements and lease agreements. 2. Real Property Disposition Scope. The policy applies to all real property owned by the RDA. 3. Real Property Categorization. All real property owned by the RDA shall be categorized as either Tier 1 or Tier 2. a.Tier 1 properties shall be real properties that are RDA-owned and meet at least one of the following categories: i.Property is specifically identified in a Salt Lake City adopted master plan. ii.Property is a parcel or parcel assemblage that totals two (2) or more contiguous acres in size. iii.Property is listed on the local or national register of historic places as historically significant. iv. Property is fronting or adjacent to city-owned property, other than a public street, of at least 0.5 acres in size. b. Tier 2 properties shall be those that are RDA-owned and are not otherwise included in Tier 1. 4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board with reports regarding the disposition and status of RDA-owned properties as follows: a.The RDA shall provide a written briefing to the Board, no less than semi- annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2 properties. Such briefing shall also include an address and description of each property, including the approximate size and zoning; description of significant structures or improvements on the site; description of any interim uses occurring on the site; disposition status; and timeframe for potentially disposing of the property. b. Updates regarding the disposition process for Tier 1 properties shall be provided at one of the Agency’s public meetings at the following stages of the disposition process: i.Pre-Disposition Prior to marketing of the property, RDA staff shall provide an update to the Board as to the property’s reuse plan, method of disposition, timeline of disposition, and other information relevant to the disposition of the property. ii.Developer / lessee Selection RDA staff shall provide an update to the Board when a purchaser or lessee has been selected with which to negotiate terms of the disposition. iii.Development Agreement / Lease Agreement RDA staff shall provide an update to the Board when the RDA has entered into a real estate purchase agreement or lease agreement with the selected purchaser / lessee. 5. Methods of Disposition. Disposition of all RDA-owned real property shall abide by all applicable laws and be conducted in a competitive and transparent manner as deemed appropriate and effective. Further, disposition methods shall support the RDA and Salt Lake City objectives as outlined in master plans, project area plans, and other adopted policies. Disposition of property shall be consistent with the RDA’s Housing Policy to determine if the inclusion of affordable housing is required. All RDA-owned properties being disposed of shall be subject to a development agreement, if being sold, a lease agreement, if being leased, or other mechanism to ensure compliance with the intended reuse plan for the property. Unless otherwise specified herein, RDA-owned properties shall be disposed of through the use of the following methods: a.Competitively Marketed The RDA shall competitively market properties to create open and transparent exposure to the marketplace. Methods to competitively market properties are available for any RDA-owned property and include the following: i.Request for qualifications (RFQ): to competitively market the property through a time-limited qualifications-based selection process. ii.Request for proposals (RFP): to competitively market the property through a time-limited project-based selection process. iii.Market property on an open-ended basis: to competitively market the property through a listing with a property broker or other marketing channels. b. Exclusively Negotiated An exclusively negotiated disposition may be deemed appropriate and effective at a sales or lease price as determined by the Disposition Price Protocol of this policy, except as detailed in 5(b)(ii), and if at least one of the following criteria is met: i.The property is landlocked. ii.Disposition to an adjacent property owner to facilitate redevelopment objectives as defined in a project area strategic plan. If the property being disposed of is a Tier 1 property, the price shall be at least 90% of the fair market value as determined by the Disposition Price Protocol. iii.Disposition to a non-profit or governmental agency for a community development or public use. iv. Disposition of property that has been competitively offered with no competitive responses received. v. Disposition of property that has previously been used as a public right of way that is no longer required for such purpose. vi. If the property is being sold, the exchange of property to facilitate redevelopment objectives as defined in a project area strategic plan. 6. Disposition Price Protocol. Unless otherwise specified herein, RDA shall dispose of real property under the most advantageous terms that are appropriate for the circumstances, and shall abide to the methodology outlined herein as follows: a.The sales or lease price of the property shall be fair market value as determined by an RDA-commissioned appraisal that is based on an as-is appraisal premise. No Board approval shall be required for disposition at appraised fair market value. b. The sales or lease price may be discounted below fair market value to support the implementation of project area strategic plans. i.Property discounts shall be determined by a financial analysis of the project, including a gap analysis that demonstrates the property discount is necessary for the project to succeed. Market conditions, economic trends, and public benefits relating to affordable housing and economic development shall be considered when determining property discounts. ii.Property discounts are subject to approval by a majority vote of the Board if property is to be sold or leased at a discount greater than 10% from appraised fair market value. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day of ___, 2021. Ana Valdemoros, Chairperson Transmitted to the Executive Director on . The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting. Erin Mendenhall, Executive Director Approved as to form: Salt Lake City Attorney’s Office Allison Parks Attest: City Recorder 23 Mar. Ana Valdemoros (May 17, 2021 13:35 MDT) Erin Mendenhall (May 17, 2021 15:01 MDT) 4 Cindy Trishman (May 17, 2021 16:20 MDT) 05/17/2021 RDA Resolution R-6-2021 (Real Property Policy Disposition Revisions) adopted 03-23-21 Final Audit Report 2021-05-17 Created:2021-04-05 By:Kory Solorio (kory.solorio@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAAGOJrMsBD_PIWDS5Waau8-rwyBYGT1nDy "RDA Resolution R-6-2021 (Real Property Policy Disposition Re visions) adopted 03-23-21" History Document created by Kory Solorio (kory.solorio@slcgov.com) 2021-04-05 - 10:25:39 PM GMT- IP address: 204.124.13.151 Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature 2021-04-05 - 10:27:45 PM GMT Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com) 2021-05-17 - 7:34:48 PM GMT- IP address: 136.60.130.16 Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com) Signature Date: 2021-05-17 - 7:35:23 PM GMT - Time Source: server- IP address: 136.60.130.16 Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature 2021-05-17 - 7:35:25 PM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2021-05-17 - 9:00:35 PM GMT- IP address: 136.36.67.177 Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com) Signature Date: 2021-05-17 - 9:01:13 PM GMT - Time Source: server- IP address: 136.36.67.177 Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2021-05-17 - 9:01:15 PM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2021-05-17 - 10:20:39 PM GMT - Time Source: server- IP address: 204.124.13.151 Agreement completed. 2021-05-17 - 10:20:39 PM GMT