Proposed Resolution - 7/4/2021
REDEVELOPMENT 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Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety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
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