Entity Staff Report - 7/1/2021CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
COUNCIL.SLCGOV.COM
TEL 801-535-7600 FAX 801-535-7651
COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM: Ben Luedtke
Budget and Policy Analyst
DATE:June 1, 2021
RE: Redevelopment Agency (RDA)
Budget Amendment Number One FY2021
________________________________________________________________________________
RDA Budget Amendment Number One includes requested changes to 11 project areas and funds. Total expenditures
are $14,036871. There is a total of 50 items in this amendment. Most of the proposed items are true-up adjustments
based on actual property tax increment received. The annual budget uses a conservative forecasting of property tax
increment which results in an end of fiscal year amendment to recognize and adjust budgets based on actual (in this
case higher) tax increment revenues.
LEGALLY REQUIRED ITEMS
Many items in the budget amendment are legal requirements for the RDA which mostly fall into three categories:
Taxing entity payments which are pass throughs from the RDA to the School District or Salt Lake County.
Tax increment reimbursements to property owners that have agreements with the RDA. If certain
conditions are met, then a portion of their property taxes is reimbursed. This is called post-performance
because the reimbursement is only provided after the property owner has met the conditions and the
County Assessor confirms higher property values.
State law affordable housing set aside which is required only for some project areas which mostly goes to
the primary housing fund (can be used citywide).
DISCRETIONARY ITEMS
The items below are not legal requirements of the RDA. If desired, the Board could decide to take additional time to
consider some or all the items below and could decline to fund any of the items.
A. $568,354 request for Central Business District (CBD) Commercial Development Loan Program (page 2 of
transmittal from excess CBD tax increment revenue)
o If approved, then the loan program would have $818,354 available to lend in the CBD and does not
lapse to Fund Balance at the end of a fiscal year
o The Administration is working on revising the loan guidelines which would require Board approval
o There are currently no applications in the pipeline for these funds
o The Board may wish to ask:
What is the timeline for revising the loan guidelines?
How is the CBD loan program different than the RDA’s Revolving Loan Fund?
Project Timeline:
Set Date: April 13, 2021
1st Briefing: May 18, 2021
Public Hearing: May 18, 2021
2nd Briefing: June 1, 2021
Potential Action: June 8, 2021
Page | 2
B. $594,673 request for the Eccles Theater Debt Service Reserve Fund (page 2 of transmittal from excess CBD tax
increment revenue)
o If approved, then the reserve fund would have a balance of $2,132,122
o From FY21 to FY29 there’s a $7.5 million projected shortfall in revenues to cover bond payments
o An updated forecast is being developed with the Finance Department
o The Board may wish to ask the Administration for a timeline on the updated forecast to
account for the pandemic’s impact on Eccles Theater operations and the RDA’s
financial liability.
C. $959,009 request for Station Center infrastructure in the Depot District (page 3 of transmittal from excess
Depot District revenue)
o FY22 annual budget is also requesting $332,179
o If both requests are approved, then the total project budget would be $11,178,513
o The total estimated cost for Station Center is $14 million to $16 million based on current designs which
means a funding gap of approximately $3 million to $5 million
o The Board may wish to ask the Administration for a timeline on when construction is
planned and how the funding gap could be addressed or if current designs could be
brought within the approved lower budget level.
D. $288,173 request for a Community and Cultural Initiative in the Granary District (page 3 of transmittal from
excess Granary District revenue)
o FY22 annual budget is also requesting $443,731
o This is a new program so the funds would go into a holding account until the Board approves criteria
and a process
o The Board may wish to ask the Administration:
What are the goals of this new program and how does it align with the RDA's
recently updated guiding framework (see Attachment 2)?
What can the program accomplish before the Granary District stops collecting
tax increment in two years?
How would interested parties find out about this new program?
Will the process be first come first served or will criteria provide prioritization?
E. $144,419 request for a North Temple Catalytic Development (page 4 of transmittal from excess North Temple
revenue)
o FY22 annual budget also requesting $289,268
o If both requests are approved, then the catalytic development fund would have a balance of $1,293,252
o There is neither a specific property identified for these funds nor criteria for what qualifies as catalytic
o The Board may wish to discuss if the funding level is sufficient to meet goals for the
North Temple corridor.
F. $176,611 in 9-Line and State Street Project Area Seed Funds (page 6 of transmittal from excess Program
Income Fund (PIF) revenue)
o If the request is approved, then the total seed funds budget would be $2,181,826. Of that amount
$750,000 was fronted by the RDA to build the new 650 South Main Street TRAX Station contingent
upon adjacent developments reimbursing the RDA
o Note that these funds are flexible between the two project areas and are not limited to one or the other
o The Board may wish to discuss if the funding level is sufficient to meet goals for the two
new project areas or if there’s interest to identify additional funding to invest during
the early years of 9-Line and State Street project areas.
ATTACHMENTS
1. Station Center Map with Proposed New Streets
2. RDA Guiding Framework
ACRONYMS
CBD – Central Business District PIF – Program Income Fund
FY – Fiscal Year RDA – Redevelopment Agency
ATTACHMENT A
Station Center Site Plan
October 18, 2019
Guiding Framework
This Guiding Framework is a strategic operational document outlining the methodology for evaluating and prioritizing projects requesting RDA financial assistance. The RDA’s
Mission and Values form the foundation of the Guiding Framework, declaring the RDA’s purpose and the intended economic, social, and physical outcomes expected of RDA
projects and partnerships.
MISSION: The Redevelopment Agency of Salt Lake City revitalizes neighborhoods and business districts to improve livability, spark economic growth, and foster
authentic communities, serving as a catalyst for strategic development projects that enhance the City’s housing opportunities, commercial vitality, public
spaces, and environmental sustainability.
VALUES: Economic Growth-
We act as a responsible steward of public funds,
taking a long-term view of investment, return,
and property values.
Community Impact-
We prioritize projects and programs that
demonstrate commitment to improving equity
and quality of life for residents and businesses
in Salt Lake City.
Neighborhood Vibrancy-
We cultivate distinct and livable built
environments that are contextually sensitive,
resilient, connected, and sustainable.
PROJECT EVALUATION PROCESS: In the context of the Mission and Values, the RDA evaluates projects via three steps, which answer the following questions: 1.) Does the
project meet the minimum THRESHOLDS required for RDA participation? 2.) To what degree does the project benefit the public by achieving defined LIVABILITY BENCHMARKS,
thereby warranting RDA assistance? 3.) Does the project meet the CRITERIA outlined in existing RDA programs and policies, such as the RDA Loan Program or Tax Increment
Reimbursement Program?
*Spanning a 1-3 year time frame, Project Area Work Plans identify redevelopment objectives and strategic redevelopment projects for each project area, along with a corresponding schedule & budget for each project. The Project Area Work Plans
will be based on relevant City policies and plans and the Project Area Plans that were adopted when the project area was created and will provide direction for the annual RDA budget process.
Step 1:
THRESHOLDS
Alignment with adopted City policies & plans
Alignment with Project Area Work Plans*
Financial viability with a demonstrated and reasonable need for public assistance
Step 2:
LIVABILITY
BENCHMARKS
Economic Growth
Leveraging
Timeliness
Return of Investment
Permanent Job Creation & Retention
Business Districts
Targeted Resources
Community Impact
Public Space
Transit Opportunities
Local Business Opportunities
Mixed-Income Neighborhoods
Neighborhood Safety
Public Art
Community Support
Neighborhood Vibrancy
Quality Materials
Site & Urban Design
Building Design & Architecture
Sustainability
Walkability
Historic Preservation
Adaptive Reuse
Step 3:
PROGRAM
CRITERIA
Evaluation of project according to respective RDA policies, programs and procedures
EXHIBIT “A” TO RESOLUTION
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: ________________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________
______________________________________________________________________________
TO: Salt Lake City RDA Board DATE: May 3, 2021
Ana Valdemoros, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
SUBJECT: RDA Budget Amendment #1, FY2020-21
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed First Amendment to the Annual
RDA Budget for Fiscal Year 2021. Set public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 13,781,124.00 $ 14,036,871.00
RDA CIP FUND 0.00 0.00
TOTAL $ 13,781,124.00 $ 14,036,871.00
Lisa Shaffer (May 5, 2021 11:08 MDT)
EXECUTIVE SUMMARY:
The purpose of the First Amendment (“Amendment”) is to allocate the actual amount of TI
received for FY21.
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Council. The
budget opening is separated in eight different categories:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. RDA Staff Memo
C. Budget Amendment #1 Summary Spreadsheet
PUBLIC PROCESS: Public Hearing