Transmittal - 10/15/2021CITY 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 Note
CITY COUNCIL of SALT LAKE CITY
TO:RDA Board Members
FROM: Ben Luedtke
Budget and Policy Analyst
DATE:September 14, 2021
RE: Redevelopment Agency (RDA)
Project Area Extensions due to the COVID-19 Pandemic
________________________________________________________________________________
This staff note provides context and policy questions staff has heard from Board Members. State law provides an
opportunity for RDA Boards to extend by two years the property tax increment collection period of project areas
negatively impacted by the pandemic. Examples of negative impacts include delayed implementation, cancelled or
scaled-back projects, and loss of property tax increment. Another requirement is that there must be a project area
plan adopted by the Board before December 31, 2019. This requirement is satisfied by all project areas listed in the
Additional Info section table.
Property tax increment collected during the two-year extension would still be subject to the project area plan and
allowable uses. Existing tax increment participation agreements would not be automatically extended with the
project area. December 31, 2021 is the deadline for the Board to adopt a resolution extending project areas under
this one-time option. See Attachment 1 for the authorizing legislation in Utah Code 17C-1-416.
POLICY QUESTIONS
1.School District and County Priorities for Additional Tax Increment – The Board may wish to
discuss with the Administration policy and priority feedback that Members heard from recent discussions
with School Board Members and County Council Members. For example, in a recent meeting some School
Board Members emphasized the importance of creating family-sized affordable housing, accessible
childcare, safe walking routes and green spaces to help stop and reverse student population declines.
2.Extending Other Project Areas – The Board may wish to discuss with the Administration the option of
extending project areas in addition to the four being recommended (CBD, Depot District, Granary District
and North Temple).
3.Estimates of Additional Property Tax Increment – The Board may wish to request the
Administration share estimates of how much additional property tax increment could be generated in the
project areas not currently recommended for extension. The amount of additional tax increment could
inform the Board’s deliberations on which project areas to extend and what uses are feasible at the
estimated funding levels.
Project Timeline:
1st Briefing: September 14, 2021
2nd Briefing: TBD
Potential Action: TBD
December 31, 2021 is the deadline for Board
action to extend project areas per State Law
Page | 2
4.Downtown Open Main Street Initiative (South Temple to 400 South) – The Board may wish to
ask the Administration for an update on how this initiative has performed and whether the goals such as
helping the Downtown recover are being met. The Board may also wish to ask if the Administration has
explored implementing the initiative for longer periods of time or even being permanent (recognizing
freight delivery and emergency response access would occasionally be needed).
5.Extension Increasing Bond Capacity in CBD and North Temple – The Board may wish to discuss
with the Administration how project area extensions would increase bond capacity to fund larger-scale
projects in the CBD and North Temple.
6.Adaptive Reuse Outside Granary District –Some Board Members have expressed interest in funding
a program like the Granary District adaptive reuse grant program in additional project areas. The Board
may wish to discuss with the Administration whether the project areas recommended for extension would
be good candidates for this concept, and if the existing program within the Granary District could also be
extended for an additional two-year period.
ADDITIONAL AND BACKGROUND INFORMATION
Project Area Expiration Dates
Project areas have a designated expiration (aka sunset) date. State law allows RDAs to continue spending tax
increment already collected in expired project areas such as Sugar House. Sometimes project areas can be
extended/renewed for a longer length which happened to the Central Business District. The table below
summarizes project area timeframes from creation to expiration.
Project Area
Initial
Collection
Year
Last
Collection
Year
Total #
Years T.I.
Collection
Central Business District*1983 2040 58
West Capitol Hill**1998 2022 25
Depot District 1999 2022 24
Granary District 2000 2023 24
North Temple 2012 2037 25
North Temple Viaduct CDA 2012 2037 25
Northwest Quadrant 2019 2038 20
Block 70 CDA 2016 2040 25
Stadler Rail 2019 2038 20
Block 67 2021 2040 20
9-Line 2021 2040 20
State Street 2021 2040 20
NOTE: Only project areas that generate tax increment are listed in the table
*The RDA Board extended the CBD from the original expiration year of 2007
** The RDA Board extended the original expiration year to focus on 300 West streetscape
improvements
ATTACHMENTS
1. Utah Code 17C-1-416 Extension of collection period for project areas impacted by COVID-19 emergency –
Requirements – Limitations
ACRONYMS
CBD – Central Business District
FY – Fiscal Year
RDA – Redevelopment Agency
TBD – To Be Determined
TI – Property Tax Increment
Utah Code
Page 1
Effective 8/31/2020
17C-1-416 Extension of collection period for project areas impacted by COVID-19
emergency -- Requirements -- Limitations.
(1) For purposes of this section:
(a) "COVID-19 emergency" means the same as that term is defined in Section 53-2c-102.
(b) "Extension period" means the period of an impacted project area's project area funds
collection period that is the result of an extension under this section.
(c) "Impacted project area" means a project area:
(i) from which an agency expects to receive tax increment;
(ii) that is subject to a project area funds collection period;
(iii) that is subject to a project area plan that was adopted on or before December 31, 2019; and
(iv) in which the agency determines the conditions resulting from the COVID-19 emergency will
likely:
(A) delay the agency's implementation of the project area plan; or
(B) cause the agency to receive an amount of tax increment from the project area that is less
than the amount of tax increment the agency expected the agency would receive from the
project area.
(d) "Tax increment" includes additional tax increment as that term is defined in Section
17C-1-403.
(2)
(a) Subject to Subsection (3), an agency may extend the project area funds collection period
of an impacted project area for a period not to exceed two years from the day on which the
project area funds collection period ends if:
(i) the board adopts a resolution on or before December 31, 2021, describing:
(A) the conditions resulting from the COVID-19 emergency that the board determines will
likely delay the implementation of the project area plan or reduce the amount of tax
increment that the agency receives from the impacted project area;
(B) why an extension of the project area funds collection period is needed; and
(C) the date on which the extension period will end; and
(ii) no later than November 1 of the year immediately preceding the year in which the project
area funds collection period, not including any extension under this section, ends, the
agency mails or electronically submits a copy of the resolution described in Subsection (2)
(a)(i) to:
(A) the State Tax Commission;
(B) the State Board of Education;
(C) the state auditor;
(D) the auditor of the county in which the impacted project area is located; and
(E) each taxing entity affected by the agency's collection of tax increment from the impacted
project area.
(b) Notwithstanding any other provision of law, an agency is not required to obtain taxing entity
or taxing entity committee approval to extend a project area funds collection period under this
section.
(c) An extension of a project area funds collection period under this section takes effect on the
day on which the agency mails or electronically submits a copy of the resolution described in
Subsection (2)(a)(i) to each entity specified in Subsection (2)(a)(ii).
(3)
(a) This section does not allow an agency to change:
Utah Code
Page 2
(i) the amount or percentage of tax increment that the agency is authorized to receive from the
impacted project area in the final two years of the project area funds collection period; or
(ii) the cumulative dollar amount of tax increment that the agency is authorized to receive from
the impacted project area, if the agency's receipt of tax increment is limited to a maximum
cumulative dollar amount.
(b) An agency that extends a project area funds collection period under this section shall use any
tax increment received during the extension period in the same manner as provided in:
(i) the project area plan; and
(ii)
(A) the project area budget; or
(B) the resolution or interlocal agreement authorizing the agency to receive tax increment
from the impacted project area.
(c)
(i) An extension of a project area funds collection period under this section does not
automatically extend the payment of tax increment under a previously approved
participation agreement for the extension period, regardless of any contrary term in the
participation agreement.
(ii) An agency that extends a project area funds collection period under this section may only
extend the payment of tax increment under a previously approved participation agreement
for the extension period by:
(A) amending the previously approved participation agreement; or
(B) entering into a new participation agreement.
(d) Nothing in this section limits the right of an agency to extend the agency's collection of tax
increment as otherwise provided in this title.
Enacted by Chapter 11, 2020 Special Session 6
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director DANNY WALZ
Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
DATE: August 26, 2021
PREPARED BY: Danny Walz
RE: Project Area Extensions
REQUESTED ACTION: Briefing on the extension of certain Agency project areas due to the impacts
of the COVID-19 emergency
POLICY ITEM: N/A
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: During a 2020 special session, the State Legislature passed SB6001,
Community Reinvestment Agency Modifications, which allows a Community Reinvestment Agency to
extend for up to two years the collection period for certain project areas impacted by the COVID-19
emergency. To do so the Agency Board must pass a resolution stating the conditions resulting from the
COVID-19 emergency that the Board determines will likely delay the implementation of the project area
plan or reduce the amount of tax increment the Agency may expect to receive. The purpose of this memo
is to present information on the legislation as it relates to Salt Lake City Redevelopment Agency project
areas in order to consider a resolution to authorize the extension as well as propose the potential use of
additional increment.
ANALYSIS & ISSUES: Passed during a 2020 special State Legislative session, SB6001 - Community
Reinvestment Agency Modifications, allows a Community Reinvestment Agency to pass a resolution
extending for up to two years the collection period for certain project areas impacted by the COVID-19
emergency.
Highlights of the legislation are as follows:
• An Agency may extend the project area funds collection period for an additional two years from the
day the collection period ends.
• The Agency must pass a resolution prior to December 2021 that includes:
o The conditions resulting from the COVID-19 emergency that the Board determines will
likely delay the implementation of the project area plan or reduce the amount of tax
increment the Agency may expect to receive;
o Why an extension of the project area funds collection period is needed; and
o The date on which the collection period will end
• The Agency is not required to obtain approval from the taxing entities.
• Any extension does not allow an Agency to change the percentage of tax increment an Agency is
authorized to receive or the cumulative dollar amount if there is a maximum cap on total increment.
• The Agency may use the additional increment in the same manner previously approved for the
project area.
The primary advantage of the legislation is that it allows for the collection of additional increment for the
purposes of carrying out the project area plan. To the extent the future increment can be capitalized in
today’s dollars then it presents an opportunity to 1) Provide funding and assistance that can go directly to
ongoing COVID recovery efforts, 2) Infuse capital into developments that grow the tax base at a faster rate
thereby increasing future increment, and 3) Carry out targeted priorities and initiatives within project areas.
Potential concern for utilizing the legislation is that it extends the date on which the taxing entities would
receive their respective increases in property tax revenue from the project areas. To address this, it is
suggested that the Agency reach out to the school district and County and discuss the potential of utilizing a
portion of funds to provide direct assistance for their COVID-related impacts or address their specific goals
or objectives within the project areas. Possible ideas include assistance for County facilities in the Central
Business District and funding of programs within the school district to help address student needs resulting
from COVID.
In considering how best to utilize the legislation Agency staff determined the following project areas would
most likely warrant an extension. The proposed uses of funds within each area focus on the following
goals and objectives:
• Provide for immediate assistance, short-term recovery and long-term investment to utilize the
increment for respective projects and benefits.
• Balance the overall amount of funds across the priorities while achieving the Agency goals for
equity, sustainability, increasing the tax base and providing a return on investment.
• Provide increased opportunities for the lower-income and minority residents who have been hit
hardest by COVID.
Central Business District: As the project area initially considered for the extension, the CBD experienced
the most direct impact from COVID. The primary focus for the area would be to invest in the arts and
entertainment to reactivate downtown and further serve as a catalyst for the recovery of retail, restaurants
and bars. However, the length of the remaining term of the project area presents the challenge of how to
capitalize future increment in today’s dollars in order to utilize the funds.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$31,160,698 2040 2041 & 2042 $40,274,958**
* Assumes a 2% Growth Rate
** Net of Taxing Entity Payments
Potential uses for additional tax increment:
• Provide assistance to the County, City, RDA and tenants of cultural facilities to help recover from
the impact of COVID and loss of revenue.
• Identify opportunities for supporting the school district in their efforts to counter the educational
impacts of COVID as well as potential long-term partnerships with the arts community.
• Partner with Downtown Alliance, arts community and entertainment venues to provide funds for
the ongoing reactivation of downtown.
• Install improvements for continuation of the open streets initiative.
• Provide an incentive/loan program for the renovation of vacant or underutilized street level retail
space with a clearly stated preference for arts, culture, non-profit, and minority and women-owned
business end users.
• Increase unique forms of housing opportunities for artists, including shared housing or live/work
types.
North Temple: Similar to CBD, the North Temple project area has a longer remaining term before the
additional increment would be realized. However, this could still provide opportunities to either capitalize
the future increment or simply serve as an extension of the project area providing additional collection
years when the amount is more significant. The primary goal would be to further support catalytic projects
that will provide an impact in the neighborhood and encourage additional investment.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$633,123 2037 2038 & 2039 $1,548,656
* Assumes a 2% Growth Rate
Potential uses for additional tax increment:
• Target strategic properties for acquisition and investment.
• Increase the supply of affordable housing and provide opportunities for lower-income and
minority populations to build wealth and establish permanent roots through home/commercial
ownership.
• Target funds through the Agency’s loan program for the renovation of commercial and retail
buildings.
• Provide an incentive program for the remediation of contaminated properties along the Folsom
corridor.
Depot District: The Depot District is nearing its termination as a project area and therefore it presents an
opportunity to utilize additional tax increment in the short term. The primary goal would be to provide
support to priority projects that will continue to provide an impact in the neighborhood after the project
area expires.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$5,375,538 2022 2023 & 2024 $11,656,755
* Assumes a 2% Growth Rate
Potential uses for additional tax increment:
• Provide additional funding for infrastructure improvements and additional public benefits as part
of the Station Center project.
• Partner with owners of the Gateway for the ongoing repositioning of the retail property into a
center for technology companies and entertainment uses.
• Provide assistance for the development of the Agency’s properties on 100 South and incorporate
public benefits such as affordable housing, community activation, and incorporation of an arts &
culture use.
• Provide relocation assistance to temporary tenants currently leasing Agency property.
Granary District: The Granary District is closest to its termination but the additional tax increment is not as
significant as other project areas. The primary goal would be to provide support to the Agency’s proposed
Cultural & Community Initiatives Program that seeks to reinforce public arts and cultural programming by
supporting community organizations in better carrying out their missions or projects.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$926,661 2023 2024 & 2025 $1,645,757
* Assumes a 2% Growth Rate
Potential uses for additional tax increment:
• Provide funding for the Agency’s proposed Cultural & Community Initiatives Program to
reinforce public arts and cultural programming and projects.
• Provide assistance for the development of the Agency’s property at 800 South & 300 West and
incorporate public benefits such as affordable housing, public space, and affordable commercial
space for small business or non-profit tenants.
• Support the preservation and ongoing management of Kilby Court as an all age’s music venue.
• Target funds through the Agency’s loan program for the renovation of commercial and retail
buildings.
Next Steps - Upon receiving input and direction from the Board, staff will further refine the priorities and
objectives for the extensions and return for consideration of the resolution. Staff would also begin to
explore options for capitalizing the future increment and other opportunities for potential partners.
The Board would approve the final use of the additional increment either through the Agency’s annual
budget process when the funds are received or through approval of any advance capitalization of the future
funds. Prior to final approval, staff would provide any recommendations or requests from the School
District and County as part of the Agency’s coordination efforts.
PREVIOUS BOARD ACTION: None.
ATTACHMENTS: None.
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director DANNY WALZ
Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
DATE: September 24, 2021
PREPARED BY: Danny Walz
RE: Project Area Extensions
REQUESTED ACTION: Consideration of a resolution for the extension of the Central Business
District, Depot District, Granary District, and North Temple Project Area
Funds Collection Period.
POLICY ITEM: Project Area Collection Periods.
BUDGET IMPACTS: Future Central Business District, Depot District, Granary District, and North
Temple tax increment.
EXECUTIVE SUMMARY: During the September meeting of the Board of Directors (“Board”), Agency
staff presented a briefing on state legislation passed during a 2020 special session, SB6001 - Community
Reinvestment Agency Modifications, which allows a Community Reinvestment Agency to extend for up to
two years the collection period for certain project areas impacted by the COVID-19 emergency. To do so
the Board must pass a resolution stating the conditions resulting from the COVID-19 emergency that the
Board determines will likely delay the implementation of the project area plan or reduce the amount of tax
increment the Agency may expect to receive. The Board indicated support for extending the Central
Business District, Depot District, Granary District, and North T emple project areas. As such, a resolution to
authorize the extension of these project areas is provided as Attachment A for the Board’s consideration.
If passed, the resolution will extend the term of the project areas by two years because of the following
conditions resulting from COVID-19 that have impacted project area implementation:
•Decreased demand for hospitality and commercial space that has delayed the development of new
projects and increased vacancy rates in existing projects due to market and financial forces.
•Significant increases in construction costs that have delayed the de velopment of new projects due to
financial gaps.
•Increased need to provide support for the mitigation of business loss due to decreased revenues.
Pursuant to the legislation, the Board must approve the resolution prior to the end of the year for the
extension to take effect. Additionally, the legislation includes requirements for noticing to taxing entity
partners. For project areas in which the collection period ends in 2022, noticing must occur prior to
November 1, 2021. Since the Depot District’s collection period currently ends in 2022, the Board must
pass the resolution authorizing the extension in October to meet noticing requirements.
ANALYSIS & ISSUES: Additional detail on SB6001 - Community Reinvestment Agency Modifications,
and the Agency’s plans for utilization of the additional tax increment area as follows:
Highlights of the legislation are as follows:
• An Agency may extend the project area funds collection period for an additional two years from the
day the collection period ends.
• The Agency must pass a resolution prior to December 2021 that includes:
o The conditions resulting from the COVID-19 emergency that the Board determines will
likely delay the implementation of the project area plan or reduce the amount of tax
increment the Agency may expect to receive;
o Why an extension of the project area funds collection period is needed; and
o The date on which the collection period will end
• The Agency is not required to obtain approval from the taxing entities.
• Any extension does not allow an Agency to change the percentage of tax increment an Agency is
authorized to receive or the cumulative dollar amount if there is a maximum cap on total increment.
• The Agency may use the additional increment in the same manner previously approved for the
project area.
The primary advantage of the legislation is that it allows for the collection of additional increment for the
purposes of carrying out the project area plan. To the extent the future increment can be capitalized in
today’s dollars then it presents an opportunity to 1) Provide funding and assistance that can go directly to
ongoing COVID recovery efforts, 2) Infuse capital into developments that grow the tax base at a faster rate
thereby increasing future increment, and 3) Carry out targeted priorities and initiatives within project areas.
Potential concern for utilizing the legislation is that it extends the date on which the taxing entities would
receive their respective increases in property tax revenue from the project areas. To address this, it is
suggested that the Agency reach out to the school district and County and discuss the potential of utilizing a
portion of funds to provide direct assistance for their COVID-related impacts or address their specific goals
or objectives within the project areas. Possible ideas include assistance for County facilities in the Central
Business District and funding of programs within the school district to help address student needs resulting
from COVID.
In considering how best to utilize the legislation Agency staff determined the following project areas would
most likely warrant an extension. The proposed uses of funds within each area focus on the following
goals and objectives:
• Provide for immediate assistance, short-term recovery and long-term investment to utilize the
increment for respective projects and benefits.
• Balance the overall amount of funds across the priorities while achieving the Agency goals for
equity, sustainability, increasing the tax base and providing a return on investment.
• Provide increased opportunities for the lower-income and minority residents who have been hit
hardest by COVID.
Central Business District: As the project area initially considered for the extension, the CBD experienced
the most direct impact from COVID. The primary focus for the area would be to invest in the arts and
entertainment to reactivate downtown and further serve as a catalyst for the recovery of retail, restaurants
and bars. However, the length of the remaining term of the project area presents the challenge of how to
capitalize future increment in today’s dollars in order to utilize the funds.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$31,160,698 2040 2041 & 2042 $40,274,958**
* Assumes a 2% Growth Rate
** Net of Taxing Entity Payments
Potential uses for additional tax increment:
• Provide assistance to the County, City, RDA and tenants of cultural facilities to help recover from
the impact of COVID and loss of revenue.
• Identify opportunities for supporting the school district in their efforts to counter the educational
impacts of COVID as well as potential long-term partnerships with the arts community.
• Partner with Downtown Alliance, arts community and entertainment venues to provide funds for
the ongoing reactivation of downtown.
• Install improvements for continuation of the open streets initiative.
• Provide an incentive/loan program for the renovation of vacant or underutilized street level retail
space with a clearly stated preference for arts, culture, non-profit, and minority and women-owned
business end users.
• Increase unique forms of housing opportunities for artists, including shared housing or live/work
types.
North Temple: Similar to CBD, the North Temple project area has a longer remaining term before the
additional increment would be realized. However, this could still provide opportunities to either capitalize
the future increment or simply serve as an extension of the project area providing additional collection
years when the amount is more significant. The primary goal would be to further support catalytic projects
that will provide an impact in the neighborhood and encourage additional investment.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$633,123 2036 2037 & 2038 $1,548,656
* Assumes a 2% Growth Rate
Potential uses for additional tax increment:
• Target strategic properties for acquisition and investment.
• Increase the supply of affordable housing and provide opportunities for lower-income and
minority populations to build wealth and establish permanent roots through home/commercial
ownership.
• Target funds through the Agency’s loan program for the renovation of commercial and retail
buildings.
• Provide an incentive program for the remediation of contaminated properties along the Folsom
corridor.
Depot District: The Depot District is nearing its termination as a project area and therefore it presents an
opportunity to utilize additional tax increment in the short term. The primary goal would be to provide
support to priority projects that will continue to provide an impact in the neighborhood after the project
area expires.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$5,375,538 2022 2023 & 2024 $11,656,755
* Assumes a 2% Growth Rate
Potential uses for additional tax increment:
• Provide additional funding for infrastructure improvements and additional public benefits as part
of the Station Center project.
• Partner with owners of the Gateway for the ongoing repositioning of the retail property into a
center for technology companies and entertainment uses.
• Provide assistance for the development of the Agency’s properties on 100 South and incorporate
public benefits such as affordable housing, community activation, and incorporation of an arts &
culture use.
• Provide relocation assistance to temporary tenants currently leasing Agency property.
Granary District: The Granary District is closest to its termination but the additional tax increment is not as
significant as other project areas. The primary goal would be to provide support to the Agency’s proposed
Cultural & Community Initiatives Program that seeks to reinforce public arts and cultural programming by
supporting community organizations in better carrying out their missions or projects.
2021 Tax Increment
Amount
Sunset Year Extension Years Total Estimated Add’l
Tax Increment*
$926,661 2023 2024 & 2025 $1,645,757
* Assumes a 2% Growth Rate
Potential uses for additional tax increment:
• Provide funding for the Agency’s proposed Cultural & Community Initiatives Program to
reinforce public arts and cultural programming and projects.
• Provide assistance for the development of the Agency’s property at 800 South & 300 West and
incorporate public benefits such as affordable housing, public space, and affordable commercial
space for small business or non-profit tenants.
• Support the preservation and ongoing management of Kilby Court as an all age’s music venue.
• Target funds through the Agency’s loan program for the renovation of commercial and retail
buildings.
Next Steps - Upon approval of the resolution by the Board, staff will further refine the priorities and
objectives for the extensions and begin to explore options for capitalizing the future increment and other
opportunities for potential partners.
If the extensions are approved, the Board will approve the final use of the additional increment either
through the Agency’s annual budget process when the funds are received or through approval of any
advance capitalization of the future funds. Staff will provide any recommendations or requests from the
School District and County as part of the Agency’s coordination efforts.
PREVIOUS BOARD ACTION:
• September 2021: RDA staff briefed the Board on the statutory requirements and Agency goals and
objectives for project area collection period extensions due to the COVID-19 emergency.
ATTACHMENTS:
A. Extension of the Central Business District, Depot District, Granary District, and North Temple
Project Area Funds Collection Period Resolution.
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. of 2021
AUTHORIZING EXTENSION OF THE CENTRAL BUSINESS DISTRICT, NORTH
TEMPLE, DEPOT DISTRICT, AND GRANARY DISTRICT PROJECT AREA FUNDS
COLLECTION PERIODS
WHEREAS, pursuant to Chapter 5, Community Reinvestment, of Title 17C of the Utah
Code, the Redevelopment Agency of Salt Lake City (“Agency”) may approve community
reinvestment project area plans for the purpose of supporting community revitalization within
designated project areas.
WHEREAS, prior to December 31, 2019, the Board of Directors of the Agency (“Board”)
approved the Central Business District, North Temple, Depot District, and Granary District project
area plans which facilitate the capture of tax increment within the boundaries of the respective
project areas during a defined project area funds collection period. These four project areas will be
referred to collectively as the “Impacted Project Areas.”
WHEREAS, due to the COVID-19 emergency (as that term is defined in 53-2c-102 of the
Utah Code), the Agency determined that the Impacted Project Areas have been affected such that
the Agency will likely be delayed in implementing the project area plans or the Agency will likely
receive a lower amount of tax increment than expected.
WHEREAS, subject to the requirements of 17C-1-416 of the Utah Code, the Agency may
extend project areas’ funds collection periods for up to two years to account for the impacts of the
COVID-19 emergency.
WHEREAS, the Board desires to adopt this Resolution to extend the project area funds
collection periods for two years for the Impacted Project Areas.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment
Agency of Salt Lake City:
1. The Board finds that the following conditions resulting from the COVID-19 emergency
will likely delay the implementation of the project area plans or reduce the amount of tax
increment that the Agency will receive from the Impacted Project Areas:
a. Decreased demand for hospitality and commercial space that has delayed the
development of new projects and increased vacancy rates in existing projects due
to market and financial forces.
b. Significant increases in construction costs that have delayed the development of
new projects due to financial gaps.
c. Increased need to provide support for the mitigation of business loss due to
decreased revenues.
2. A two-year extension of the Impacted Project Areas’ project area funds collection periods
is needed for the purpose of carrying out the overall goals of the respective project area
plans. The additional increment will be utilized to provide for immediate assistance, short-
term recovery efforts, and long-term investment for respective project area benefits. The
2
Agency further intends to balance the overall amount of funds across the priorities while
achieving the Agency goals for equity, sustainability, increasing the tax base, providing a
return on investment, and supporting opportunities for those residents who have been hit
hardest by the COVID-19 emergency.
3. The tax year on which the extension period will end for each Impacted Project Area is as
follows:
Impacted Project Area Extension Period End Date
Central Business District 2042
North Temple 2038
Depot District 2024
Granary District 2025
4. No later than November 1, 2021, the Agency shall mail or electronically submit a copy of
this Resolution to the State Tax Commission, the State Board of Education, the State
Auditor, the Salt Lake County Auditor, and each taxing entity affected by the Agency’s
collection of tax increment from the Impacted Project Areas.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of , 2021.
Ana Valdemoros, Board Chair
Transmitted to the Executive Director on .
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency Board meeting
Erin Mendenhall, Executive Director
Approved as to form:
Salt Lake City Attorney’s Office
_____________________________________
Attest:
Salt Lake City Recorder’s Office