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Proposed Resolution - 7/4/20211 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ 9 Line Community Reinvestment Area Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING THE 9 LINE COMMUNITY REINVESTMENT AREA BUDGET WHEREAS, on August 21, 2018, the RDA Board of Directors (“Board”) adopted the 9 Line Community Reinvestment Area (“9 Line CRA”) budget, effective at the beginning of the CRA’s funds collection period, in accordance with the requirements of Section 17C-5-302 of the Utah Code. WHEREAS, taxing entities including Salt Lake City, Salt Lake County and Salt Lake City School District each executed an interlocal agreement with the Redevelopment Agency of Salt Lake City (“RDA”) in accordance with the requirements of Section 17 -5-204 of the Utah Code, which allows the RDA to receive a portion of the taxing entities’ tax increment within the project area at the beginning of the collection period. WHEREAS, the 9 Line CRA budget must be amended to reflect the same terms in the executed interlocal agreements with Salt Lake City, Salt Lake County and Salt Lake City School District. WHEREAS, all conditions precedent to amend the CRA budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1.Purpose. The purpose of this Resolution is to amend the 9 Line CRA budget, as approved, ratified and finalized by the RDA Board on August 21, 2018. 2.Adoption of Amended 9 Line CRA Budget. The amended 9 Line CRA budget attached as Exhibit A is hereby adopted as the 9 Line CRA budget and shall be incorporated into the 9 Line CRA project area plan. 3.Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder which amendments shall be available for public inspection. Pursuant to Section 17C-5- 305 of the Utah Code, the RDA shall cause a copy of the budget amendments to be filed with the State Tax Commission, the State Board of Education, the state auditor, the Salt Lake County Auditor, and the taxing entities party to the 9 Line CRA interlocal agreements. Attachment A: RDA Board Resolution 2 Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this ___ day of ______________, 2021, to be effective upon adoption. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date: The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. _________________________________ Erin Mendenhall, Executive Director Attest: _________________________ City Recorder March 2, 2021 3 EXHIBIT A TO RESOLUTION [Attach Budget Amendment] 9 LINE PROJECT AREA BUDGET 1 9 LINE PROJECT AREA BUDGET OVERVIEW The 9 Line Project Area Budget conforms with the requirements of 17C-5-303, and includes the following information: ( 1) Receipt of Tax Increment a.Base taxable value; b.Projected amount of tax increment to be generated within the CRA; c.Each project area funds collection period; d.Projected amount of tax increment to be paid to other taxing entities in accordance with Section 17C-1-410 (if applicable); e.If the area from which tax increment is collected is less than the entire community reinvestment project area: (i) a boundary description of the portion or portions of the community reinvestment project area from which the agency receives tax increment; and (ii) for each portion described in Subsection (1)(e)(i), the period of time during which tax increment is collected; f.Percentage of tax increment the agency is authorized to receive from the community reinvestment project area; and g.Maximum cumulative dollar amount of tax increment the agency is authorized to receive from the community reinvestment project area. 2) Receipt of Sales and Use Tax Revenue 3) Project Area Funds to Implement this CRA Plan 4) RDA’s Combined Incremental Value 5) Amount for Administration 6) Property Owned and Expected to Sell AS AMENDED Attachment B: 9 Line CRA Budget as Amended 9 LINE PROJECT AREA BUDGET 2 1(a): BASE TAXABLE VALUE The base year is anticipated to be 2016, with a base year taxable value of $228,048,136. 1(b): PROJECTED AMOUNT OF TIF TABLE 2.1: INCREMENTAL PROPERTY TAX REVENUES GENERATED - 20 YEARS Incremental Tax Revenues - 100%Total – 20 Years Salt Lake County $4,162,442 Salt Lake City School District $11,613,064 Salt Lake City $8,350,725 TOTAL $24,126,231 1(c): COLLECTION PERIOD The collection period shall be 20 years. 1(d): TIF PAID TO OTHER TAXING ENTITIES TABLE 2.2: INCREMENTAL PROPERTY TAX REVENUES TO TAXING ENTITIES - 20 YEARS Incremental Tax Revenues to Taxing Entities Total – 20 Years Salt Lake County*$1,040,442 to $2,081,211 Salt Lake City School District $2,903,266 Salt Lake City $2,087,681 TOTAL $6,031,389 to $7,072,158 *Note: The RDA will collect 100% of tax increment from the County Treasurer for Salt Lake County’s portion and pay Salt Lake County a mitigation payment. The estimated mitigation payment over the 20-year term is reflected in this table and will vary based on terms as specified in the interlocal agreement. The values reflected for Salt Lake City School District and Salt Lake City reflect the 25% that the RDA is not entitled to receive. 1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY Not applicable. The TIF collection area is the entire CRA boundary. 9 LINE PROJECT AREA BUDGET 3 1(f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE TABLE 2.3: PARTICIPATION FROM TAXING ENTITIES Taxing Entity Percentage Length Salt Lake County*100%20 Years Salt Lake City School District 75%20 Years Salt Lake City 75%20 Years *Note: The RDA will collect 100% of Salt Lake County tax increment and pay Salt Lake County a mitigation payment of between 25% and 50%. Accordingly, the percentage retained by the RDA will be between 50% and 75% based on the terms as specified in the interlocal agreement. 1(g): MAXIMUM CUMULATIVE AMOUNT RECEIVED BY THE RDA The maximum cumulative amount to be received and retained by the RDA is as follows: TABLE 2.4: TAX INCREMENT REVENUES RETAINED BY RDA - 20-YEARS Incremental Tax Revenues to RDA Total – 20 Years Salt Lake County*$2,081,211 to $3,122,000 Salt Lake City School District $8,709,798 Salt Lake City $6,263,044 TOTAL $17,054,053 to $18,094,842 *Note: The maximum amount of Salt Lake County tax increment retained by the RDA may vary based on terms as specified in the interlocal agreement. 2: SALES AND USE TAX REVENUE: Not applicable. 3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN TABLE 2.5: BUDGET FOR TAX INCREMENT REVENUES TO RDA - 20-YEARS Activity Percentage Amount* Administration & Operations 10%$1,705,405 to $1,809,484 Housing 10%$1,705,405 to $1,809,484 Redevelopment Activities 80%$13,643,243 to $14,475,873 Total 100%$17,054,053 to $18,094,842 *Note: The amount of funds for each budget activity will vary based on the amount of Salt Lake County tax increment retained by the RDA may vary based on terms as specified in the interlocal agreement. 9 LINE PROJECT AREA BUDGET 4 The RDA shall implement this plan through the following activities: •ADMINISTRATION AND OPERATIONS: The tax increment expected to be used to cover the operating costs of administering and implementing the CRA Plan. •HOUSING: The tax increment allocation required to be used for housing activities pursuant to Section 17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412. •REDEVELOPMENT ACTIVITIES: The tax increment expected to be used to carry out project development activities as further described in this CRA Plan. Activities may include, but not be limited to, land acquisition, public improvements, infrastructure improvements, loans, grants, and other incentives to public and private entities. 4: RDA’S COMBINED INCREMENTAL VALUE TABLE 2.6: RDA’s COMBINED INCREMENTAL VALUE* PROJECT AREA ASSESSED PROPERTY VALUE BASE TAXABLE VALUE INCREMENTAL VALUE SLC CBD In 2,630,997,631 136,894,100 2,494,103,531 Depot District 586,694,437 27,476,425 559,218,012 Granary 126,292,575 48,813,397 77,479,178 North Temple Viaduct 175,640,215 36,499,680 139,140,535 North Temple 139,375,192 84,073,572 55,301,620 Block 70 262,153,766 58,757,937 203,395,829 Stadler Rail 20,357,600 3,710 20,353,890 State Street CRA 1,158,719,413 889,305,536 269,413,877 9 Line CRA 321,647,261 228,048,136 93,599,125 Northwest Quadrant CRA 230,643,587 735,791 229,907,796 COMBINED VALUE $5,652,521,677 $1,510,608,284 $4,141,913,393 *Note: 2019 values, collection areas only. 5: PROJECT AREA FUNDS USED FOR ADMINISTRATION The RDA anticipates utilizing up to 10 percent of the funds captured and retained by the RDA, which is estimated to be $1,705,405 to 1,809,484. 6: EXPECTED SALE PRICE FOR PROPERTY THE RDA OWNS The RDA does not own property within the Project Area. ASSUMPTIONS: Discount Rate 4.0% Scenario Redevelopment Agency of Salt Lake City 9 Line Project Area Increment and Budget Growth Rate 2.0% Payment Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Tax Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTALS NPV Cumulative Taxable Value Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Tax District 13 Commercial $1,885,594 $4,487,713 $7,808,621 $12,543,030 $17,398,808 $23,045,650 $28,819,308 $34,708,440 $40,715,354 $46,842,406 $54,624,351 $64,155,582 $73,908,697 $75,386,871 $76,894,609 $78,432,501 $80,001,151 $81,601,174 $83,233,198 $84,897,861 Office $608,798 $1,448,940 $2,521,155 $4,049,745 $5,617,520 $7,440,706 $9,304,836 $11,206,249 $13,145,690 $15,123,920 $17,636,462 $20,713,793 $23,862,763 $24,340,018 $24,826,818 $25,323,355 $25,829,822 $26,346,418 $26,873,347 $27,410,814 Residential $524,040 $1,247,215 $2,170,154 $3,485,931 $4,835,437 $6,404,795 $8,009,397 $9,646,091 $11,315,519 $13,018,336 $15,181,076 $17,829,974 $20,540,538 $20,951,349 $21,370,376 $21,797,783 $22,233,739 $22,678,414 $23,131,982 $23,594,622 Industrial $1,161,512 $2,764,399 $4,810,055 $7,726,417 $10,717,541 $14,195,956 $17,752,488 $21,380,150 $25,080,367 $28,854,587 $33,648,210 $39,519,380 $45,527,229 $46,437,773 $47,366,529 $48,313,859 $49,280,137 $50,265,739 $51,271,054 $52,296,475 Total Assessed Value:$4,179,944 $9,948,267 $17,309,985 $27,805,122 $38,569,307 $51,087,107 $63,886,029 $76,940,930 $90,256,929 $103,839,248 $121,090,100 $142,218,729 $163,839,227 $167,116,012 $170,458,332 $173,867,499 $177,344,849 $180,891,746 $184,509,581 $188,199,772 Value of Current Property $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 $228,048,136 Less Base Year Value ($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136)($228,048,136) $4,179,944 $9,948,267 $17,309,985 $27,805,122 $38,569,307 $51,087,107 $63,886,029 $76,940,930 $90,256,929 $103,839,248 $121,090,100 $142,218,729 $163,839,227 $167,116,012 $170,458,332 $173,867,499 $177,344,849 $180,891,746 $184,509,581 $188,199,772 TAX RATE & INCREMENT ANALYSIS:2019 Rates Salt Lake County 0.001933 8,080 19,230 33,460 53,747 74,554 98,751 123,492 148,727 174,467 200,721 234,067 274,909 316,701 323,035 329,496 336,086 342,808 349,664 356,657 363,790 4,162,442 2,448,058 Salt Lake City School District 0.005393 22,542 53,651 93,353 149,953 208,004 275,513 344,537 414,942 486,756 560,005 653,039 766,986 883,585 901,257 919,282 937,667 956,421 975,549 995,060 1,014,961 11,613,064 6,829,993 Salt Lake City 0.003878 16,210 38,579 67,128 107,828 149,572 198,116 247,750 298,377 350,016 402,689 469,587 551,524 635,369 648,076 661,037 674,258 687,743 701,498 715,528 729,839 8,350,725 4,911,313 Salt Lake Library 0.000745 3,114 7,411 12,896 20,715 28,734 38,060 47,595 57,321 67,241 77,360 90,212 105,953 122,060 124,501 126,991 129,531 132,122 134,764 137,460 140,209 1,604,252 943,509 Salt Lake Metropolitan Water District 0.000289 1,208 2,875 5,003 8,036 11,147 14,764 18,463 22,236 26,084 30,010 34,995 41,101 47,350 48,297 49,262 50,248 51,253 52,278 53,323 54,390 622,321 366,006 Salt Lake City Mosquito Abatement District 0.000133 556 1,323 2,302 3,698 5,130 6,795 8,497 10,233 12,004 13,811 16,105 18,915 21,791 22,226 22,671 23,124 23,587 24,059 24,540 25,031 286,397 168,439 Central Utah Water Conservancy District 0.000400 1,672 3,979 6,924 11,122 15,428 20,435 25,554 30,776 36,103 41,536 48,436 56,887 65,536 66,846 68,183 69,547 70,938 72,357 73,804 75,280 861,343 506,582 Totals:0.012771 53,382 127,049 221,066 355,099 492,569 652,433 815,888 982,613 1,152,671 1,326,131 1,546,442 1,816,275 2,092,391 2,134,239 2,176,923 2,220,462 2,264,871 2,310,168 2,356,372 2,403,499 27,500,544 16,173,899 TOTAL INCREMENTAL REVENUE IN PROJECT AREA:$53,382 $127,049 $221,066 $355,099 $492,569 $652,433 $815,888 $982,613 $1,152,671 $1,326,131 $1,546,442 $1,816,275 $2,092,391 $2,134,239 $2,176,923 $2,220,462 $2,264,871 $2,310,168 $2,356,372 $2,403,499 $27,500,544 $16,173,899 PROJECT AREA BUDGET 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Sources of Funds:2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTALS NPV Property Tax Participation Rate for Budget Salt Lake County*75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City School District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake Library 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Salt Lake Metropolitan Water District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Salt Lake City Mosquito Abatement District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Central Utah Water Conservancy District 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Property Tax Increment for Budget Salt Lake County $6,060 $14,423 $25,095 $40,310 $55,916 $74,064 $92,619 $111,545 $130,850 $150,541 $175,550 $206,182 $237,526 $242,276 $247,122 $252,064 $257,106 $262,248 $267,493 $272,843 $3,121,832 $1,836,043 Salt Lake City School District $16,907 $40,238 $70,015 $112,465 $156,003 $206,635 $258,403 $311,207 $365,067 $420,004 $489,779 $575,239 $662,689 $675,942 $689,461 $703,251 $717,316 $731,662 $746,295 $761,221 $8,709,798 $5,122,494 Salt Lake City $12,157 $28,935 $50,346 $80,871 $112,179 $148,587 $185,813 $223,783 $262,512 $302,016 $352,191 $413,643 $476,526 $486,057 $495,778 $505,694 $515,807 $526,124 $536,646 $547,379 $6,263,044 $3,683,485 Salt Lake Library - - - - - - - - - - - - - - - - - - - - -$ -$ Salt Lake Metropolitan Water District - - - - - - - - - - - - - - - - - - - - -$ -$ Salt Lake City Mosquito Abatement District - - - - - - - - - - - - - - - - - - - - -$ -$ Central Utah Water Conservancy District - - - - - - - - - - - - - - - - - - - - -$ -$ Total Property Tax Increment for Budget:$35,124 $83,595 $145,456 $233,646 $324,098 $429,285 $536,834 $646,535 $758,429 $872,561 $1,017,520 $1,195,064 $1,376,741 $1,404,276 $1,432,361 $1,461,009 $1,490,229 $1,520,033 $1,550,434 $1,581,443 $18,094,673 $10,642,023 Uses of Tax Increment Funds:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTALS NPV Redevelopment Activities (Infrastructure, Relocation, Incentives, etc.)80.0%$28,099 $66,876 $116,365 $186,917 $259,278 $343,428 $429,467 $517,228 $606,743 $698,049 $814,016 $956,051 $1,101,393 $1,123,421 $1,145,889 $1,168,807 $1,192,183 $1,216,027 $1,240,347 $1,265,154 $14,475,739 $8,513,618 CRA Housing 10.0%$3,512 $8,360 $14,546 $23,365 $32,410 $42,928 $53,683 $64,653 $75,843 $87,256 $101,752 $119,506 $137,674 $140,428 $143,236 $146,101 $149,023 $152,003 $155,043 $158,144 $1,809,467 $1,064,202 RDA Administration and Operations**10.0%$3,512 $8,360 $14,546 $23,365 $32,410 $42,928 $53,683 $64,653 $75,843 $87,256 $101,752 $119,506 $137,674 $140,428 $143,236 $146,101 $149,023 $152,003 $155,043 $158,144 $1,809,467 $1,064,202 Total Uses $35,124 $83,595 $145,456 $233,646 $324,098 $429,285 $536,834 $646,535 $758,429 $872,561 $1,017,520 $1,195,064 $1,376,741 $1,404,276 $1,432,361 $1,461,009 $1,490,229 $1,520,033 $1,550,434 $1,581,443 $18,094,673 $10,642,023 REMAINING TAX REVENUES FOR TAXING ENTITIES 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTALS NPV Salt Lake County $2,020 $4,808 $8,365 $13,437 $18,639 $24,688 $30,873 $37,182 $43,617 $50,180 $58,517 $68,727 $79,175 $80,759 $82,374 $84,021 $85,702 $87,416 $89,164 $90,948 $1,040,611 $612,014 Salt Lake City School District $5,636 $13,413 $23,338 $37,488 $52,001 $68,878 $86,134 $103,736 $121,689 $140,001 $163,260 $191,746 $220,896 $225,314 $229,820 $234,417 $239,105 $243,887 $248,765 $253,740 $2,903,266 $1,707,498 Salt Lake City $4,052 $9,645 $16,782 $26,957 $37,393 $49,529 $61,938 $74,594 $87,504 $100,672 $117,397 $137,881 $158,842 $162,019 $165,259 $168,565 $171,936 $175,375 $178,882 $182,460 $2,087,681 $1,227,828 Salt Lake Library $3,114 $7,411 $12,896 $20,715 $28,734 $38,060 $47,595 $57,321 $67,241 $77,360 $90,212 $105,953 $122,060 $124,501 $126,991 $129,531 $132,122 $134,764 $137,460 $140,209 $1,604,252 $943,509 Salt Lake Metropolitan Water District $1,208 $2,875 $5,003 $8,036 $11,147 $14,764 $18,463 $22,236 $26,084 $30,010 $34,995 $41,101 $47,350 $48,297 $49,262 $50,248 $51,253 $52,278 $53,323 $54,390 $622,321 $366,006 Salt Lake City Mosquito Abatement District $556 $1,323 $2,302 $3,698 $5,130 $6,795 $8,497 $10,233 $12,004 $13,811 $16,105 $18,915 $21,791 $22,226 $22,671 $23,124 $23,587 $24,059 $24,540 $25,031 $286,397 $168,439 Central Utah Water Conservancy District $1,672 $3,979 $6,924 $11,122 $15,428 $20,435 $25,554 $30,776 $36,103 $41,536 $48,436 $56,887 $65,536 $66,846 $68,183 $69,547 $70,938 $72,357 $73,804 $75,280 $861,343 $506,582 Total $18,258 $43,454 $75,610 $121,453 $168,471 $223,148 $279,054 $336,078 $394,242 $453,570 $528,922 $621,211 $715,650 $729,963 $744,562 $759,453 $774,642 $790,135 $805,938 $822,057 $9,405,871 $5,531,876 TOTAL INCREMENTAL VALUE: INCREMENTAL TAX ANALYSIS: TaxInc Budget UPDATED 9 Line CRA (Scenario Analysis) *Salt Lake County's participation rate to vary subject to the terms of the interlocal agreement with Salt Lake County **Percentage of tax increment used for RDA administration and operations to vary subject to the terms of the interlocal agreement with Salt Lake County Attachment C: 9 Line CRA Incremental Budget Analysis