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R-001-2018 - Northwest Quadrant Community Reinvestment Area PlansR 18-2 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. R-1-2018 Northwest Quadrant Community Reinvestment Area Plans RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING A NORTHWEST QUADRANT COMMUNITY REINVESTMENT AREA PLAN WHEREAS, the Redevelopment Agency of Salt Lake City ("RDA") was created to transact the business and exercise the powers provided for in the Utah Title 17C Community Reinvestment Agency Act ("the Act"). WHEREAS, on July 12, 2016, the RDA Board of Directors ("RDA Board") adopted Resolution No. 772.02, designating the geographic area referred to as Proposed Project Area as a survey area ("Survey Area") to study whether project area development is feasible within the Survey Area. WHEREAS, on August 16, 2016, Salt Lake City adopted the Northwest Quadrant Master Plan (the "Community General Plan"). WHEREAS, the RDA has determined that project area development is feasible within a modified boundary within the Survey Area ("Project Area"), a boundary description of which is attached hereto as Exhibit A. WHEREAS, the RDA has prepared the Northwest Quadrant Community Reinvestment Area Plan ("CRA Plan") that is attached hereto as Exhibit B. WHEREAS, the RDA's purpose and intent with respect to the Project Area is to utilize tax increment funds derived from the Project Area to facilitate community reinvestment activities as further described in the CRA Plan. WHEREAS, the RDA Board of Directors desires to approve and adopt the CRA Plan. NOW, THEREFORE, BE IT RESOLVED, THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY MAKES THE FOLLOWING FINDINGS AND DETERMINATIONS REGARDING THE CRA PLAN IN ACCORDANCE WITH 17C-5-108 OF THE ACT: 1. Serves a public purpose; 2. Produces a public benefit as demonstrated by the analysis described in Subsection 17C-5-105(2); 3. Is economically sound and feasible; 4. Conforms to the Community General Plan; and 5. Promotes the public peace, health, safety, and welfare of Salt Lake City. Passed by the Board of Directors of thej Redevelopment Agency of Salt Lake City, this 9th day of Jan.2018 Transmitted to the Executive Director on January 10, 2018 The Executive Director: , Chairperson does not request reconsideration requests reconsideration at the next regular Agency meeting. Approved as to form: Salt Lake City Attorney's Office Katherine N. Lewis Attest: City Recorder rvi 6 Jaccfueline M. Biskupski, Executive Director Gc)?POR4te SEAL HB ATTY-#66292-v1-Resolution NWQ_CRA_Plan.docx EXHIBIT A [Attach Boundary Description of Project Area] Northwest Quadrant Community Reinvestment Area Boundary Legal Description Beginning at a point on the existing Salt Lake City boundary which is the Northwest Corner of Section 17, Township 1 North, Range 2 West, Salt Lake Base and Meridian, and running thence along the existing Salt Lake City boundary the following 18 courses: 1) N89°54'36"E 2637.89 feet to the N1/4 Corner of said Section 17; 2) N89°53'20"E 2640.05 feet to the NE Corner of said Section 17; 3) S89°48'47"E 2640.69 feet to the N1/4 Corner of Section 16 said Township; 4) N00°26'13"E 1320.23 feet to the W1/4 Comer of the SE1/4 of Section 9 said Township; 5) S89°48'47"E 2625.84 feet to the E1/4 Corner of the SE1/4 of said Section 9; 6) S00°24'42"W 1320.23 feet to the NE Comer of said Section 16; 7) S00°24'42"W 2650.57 feet to the E1/4 Corner of said Section 16; 8) S00°26'25"W 1325.15 feet to the W1/4 Corner of the SW1/4 of Section 15; 9) S89°50'13"E 1322.93 feet to the Center of the SW1/4 of said Section 15; 10) N00°23'04"E 2648.09 feet to the Center of the NW1/4 of said Section 15; 11) S89°44'08"E 3963.23 feet to the E1/4 Corner of the NE1/4 of said Section 15; 12) S89°47'29"E 1317.60 feet to the Center of the NW1/4 of Section 14 said Township; 13) S00°15'30"W 3961.12 feet to the S1/4 Corner of the SW1/4 of said Section 14; 14) S89°47'29"E 1317.60 feet to the S1/4 Corner of said Section 14; 15) S00°13'53"W 1320.92 feet to the E1/4 Corner of the NW1/4 Section 23 said Township; 16) S89°46'07"E 1320.22 feet to the Center of the NE1/4 of said Section 23; 17) S00° 13'54"W 2643.89 feet to the Center of the SE1/4 of said Section 23; 18) S44°44'23"E 1868.01 feet to the SE Comer of said Section 23; thence along the east line of Section 26 said Township S00°20'01 "W 3991.93 feet to the north line of John Cannon Drive; thence along the north line of John Cannon Drive S89°47'45"E 44.00 feet to the projected east line of 5600 West; thence along the east line of 5600 West S00°20'07"W 1284.30 feet to the south line of Section 25 said township; thence along the south lines of said Section 25 and 26 N89°47'25"W 774.13 feet to the Southwest Corner of Watkins Industrial Park Subdivision as recorded in Book 2003P, Page 162 of Subdivisions, in the Salt Lake County Recorder's Office; thence along the south line of said Section 26 N89°47'24"W 2937.61 feet; thence S00°11'54"W 99.14 feet to the Northeast Corner of Parcel 07-35-100-016; thence along said parcel the following 6 courses: 1) N89°46'53"W 1609.45 feet; 2) N89°50'44"W 2642.88 feet; 3) N89°50'20"W 2644.04 feet; 4) N89°44'53"W 1317.05 feet; 5) S00°13'52"W 2541.25 feet; 6) S00° 14'20"W 1723.95 feet to the north line of the I-80 right-of-way and an 1849.86 foot radius non -tangent curve to the right; thence along said north line and said curve 63.56 feet (chord bears S71°02'20"W 63.56 feet); thence along said north line N89°47'45"W 9176.07 feet to the west boundary line of Salt Lake City; thence along said west boundary the following 10 courses: 1) N00°19'37"E 1745.63 feet to the West Quarter Comer of Section 32 said township; 2) N00°20'10"E 846.69 feet; 3) S89°47'26"E 1320.00 feet; 4) N00°20'10"E 950.40 feet; 5) N89°47'26"W 1320.00 feet; 6) N00°20'10"E 844.84 feet to the Northwest Corner of said Section 32; 7) N00°19'16"E 5285.43 feet to the Southwest Corner of Section 20 said township; 8) N00°17'46"E 2629.78 feet to the West Quarter Corner of said Section 20; 9) N00°18'30"E 2631.00 feet to the Northwest Corner of said Section 20; 10) NOO°17'29"E 5280.23 feet to the point of beginning. Contains 7,739.092 acres, more or less. LAKE CITY MUNICIPAL BOUNDARY J (n 71, Flo Northwest Quadrant Community Reinvestment Area Boundary Model 2625.84' SALT LAKE CITY w S89'48'47'E MUNICIPAL BOUNDARY oqi r Ala 2637.89' 2640.05' 2640.69' z N89'54'36'E N89'53'20"E S89'48'47'E z Beginning at a point on the existing Salt Lake City boundary which is the Northwest Corner of Section 17, Township 1 North, Range 2 West. Salt Lake Bose and Meridian, and running thence along the existing Salt Lake City boundary the following 18 courses: 1) N89'54'36"E 2637.89 feet to the Ni Corner of said Section 17; 2) N89'53'20"E 2640.05 feet to the NE Corner of said Section 17; 3) S89'48'47"E 2640.69 feet to the N} Corner of Section 16 said Township; 4) N00'26'13"E 1320.23 feet to the W} Corner of the SE} of Section 9 said Township; 5) S89'48'47"E 2625.84 feet to the E} Corner of the SE} of said Section 9; 6) S00'24'421V 1320.23 feet to the NE Corner of said Section 16; 7) 600'24'42"W 2650.57 feet to the E} Corner of said Section 16; 8) SO0'26'25'V! 1325.15 feet to the W} Corner of the SW} of Section 15; 9) 589'50'13"E 1322.93 Iw feet to the Center of the SW} of said Section 15; 10) NOO'23'04"E 2648.09 feet o n to the Center of the NW} of said Section 15; 11) S89'44'08'E 3963.23 feet to "Im the E} Comer of the NE} of said Section 15; 12) S89'47'29"E 1317.60 feet to Moto the Center of the NW} of Section 14 said Township; 13) 600'15'30"W 3961.12 feet " 2 to the Si Comer of the SW} of said Section 14; 14) S89'47'29"E 1317.60 feet to the Si Corner of said Section 14; 15) SO0'13'53"W 1320.92 feet to the E} Corner of the NW} Section 23 said Township; 16) S89'46.07"E 1320.22 feet to the Center of the NE} of said Section 23; 17) S00'13'54V 2643.89 feet to the Center of the SE} of said Section 23; 18) S44'44'23"E 1868.01 feet to the SE Comer of said Section 23; thence along the east line of Section 26 said Township SO0'20'01"W 3991.93 feet to the north line of John Cannon Drive; thence along the north line of John Cannon Drive S89'47'45"E 44.00 feet to the projected east line of 5600 West; thence along the eost line of 5600 West 500'20'07 W 1284.30 feet to the south line of Section 25 said township; thence along the south lines o of said Section 25 and 26 N89'47'25"W 774.13 feet to the Southwest Corner of Watkins Industrial Pork Subdivision as recorded in Book 2003P, Page 162 of Subdivisions, in the Solt Lake County Recorders Office; thence olong the south line of said Section 26 N89'47'241W 2937.61 feet; thence 600'11'54"W 99.14 feet to the Northeast Corner of Parcel 07-35-100-016; thence along said porcel the following 6 courses: 1) N89'46'53"W 1609.45 feet; 2) N89'50'44'W 2642.88 feet; 3) N89'50'20'W 2644.04 feet; 4) N89'44'53"W 1317.05 feet; 5) 600'13'52'V 2541.25 feet; 6) S00' 14'20"W 1723.95 feet to the north line of the 1-80 right-of-way and an 1849.86 foot radius non -tangent curve to the right; thence along said north line and said curve 63.56 feel (chord bears S71'02'20"W 63.56 feet); thence along soid north line N89'47'45'W 9176.07 feet to the west boundary line of Salt Lake City; thence along soid west boundary the following 10 courses: 1) NO0'19'37"E 1745.63 feet to the West Quarter Corner of Section 32 said township; 2) N00'20'10"E 846.69 feet; 3) S89'47'26"E 1320.00 feet; 4) N00'20'10"E 950.40 feet; 5) N89'47'26'W 1320.00 feet; 6) N00'20'10'E 844.84 feet to the Northwest Corner of said Section 32; 7) N00'19'16"E 5285.43 feet to the Southwest Corner of Section 20 soid township; 8) N00'17.46"E 2629.78 feet to the West Quarter Corner of said Section 20; 9) N0018'30"E 2631.00 feet to the Northwest Corner of said Section 20; 10) NO0'17'29'E 5280.23 feet to the point of beginning. Contains 7.739.092 acres, more or less. N00'20'10"E 844.84' N89'47'26%4 71320.00' 0 0 �a \_589'47'26"E 1320.00' N00'20' 10"E 846.69' N89'47'45"W 9176.07' INTERSTATE 80 1189'44'53'W 1317.05'A bl- v�i '0- o 1'b=s7T07'70� �8$5 L=61561' n'7i NI U. M N,1322.93' S89'50'13'6 SALT LAKE CITY MUNICIPAL BOUNDARY 3963.23' 1317.60' S89'44'08"E S89'47'29'E 700 NORTH N89'50'20"W N89'50'441V 2644.04' 2642.88' kP 3; �G 689'47'29"i n' Q, 1317.60' i'1 ci t. ^ 1320.22' • 689'46'07"E p N� 0 gIN �r Q 600'11'54"W 99.14 - N89'46'53%1 1609.45" S89'47'45'E 44.00' \ F-- o'n (n " N69'47'241Y vt; 2937.61' r/ N89'47'25'WJ Q 774.13' Q Li) EXHIBIT B [NWQ Project Area Plan] • NORTHWEST QUADRANT CRA PLAN SLCRDA REDEVELOPMENT AGENCY OF SALT LAKE CITY I DEPARTMENT OF ECONOMIC DEVELOPMENT Date available for public comment: December 8, 2017 NWQ COMMUNITY REINVESTMENT AREA PLAN ACKNOWLEDGEMENTS: MAYOR RDA EXECUTIVE DIRECTOR Jacqueline M. Biskupski DEPARTMENT OF ECONOMIC DEVELOPMENT DIRECTOR RDA CHIEF EXECUTIVE OFFICER Lara Fritts RDA CHIEF OPERATING OFFICER Danny Walz RDA BOARD OF DIRECTORS James Rogers, District 1 Andrew Johnston, District 2 Stan Penfold, District 3 (outgoing) Chris Wharton, District 3 (incoming) Derek Kitchen, District 4 Erin Mendenhall, District 5 Charlie Luke, District 6 Lisa Adams, District 7 (outgoing) Amy Fowler, District 7 (incoming) ONTENTS i) INTRODUCTION 4 1) COMMUNITY REINVESTMENT ANALYSIS (17C-5-105) 6 1(a): PROJECT AREA BOUNDARY DESCRIPTION 7 1(b): EXISTING LAND USES AND NEIGHBORHOOD CONTEXT 8 1(c): STANDARDS TO GUIDE PROJECT AREA DEVELOPMENT 11 1(d): FURTHERING PURPOSES OF UTAH TITLE 17C 13 1(e): GENERAL PLAN CONSISTENCY 15 1(f): ELIMINATION OR REDUCTION OF BLIGHT 15 1(g): SPECIFIC PROJECT AREA DEVELOPMENT 15 1(h): PROCESS OF SELECTING PARTICIPANTS 15 1(i): REASON FOR SELECTING THE PROJECT AREA 16 1(j): EXISTING PHYSICAL, SOCIAL, ECONOMIC CONDITIONS 16 1(k): FINANCIAL ASSISTANCE OFFERED TO PARTICIPANTS 16 1(1): PUBLIC BENEFIT ANALYSIS SUMMARY 17 1(m): HISTORIC PRESERVATION 20 1(n): INTERLOCAL AGREEMENT 20 2) PROJECT AREA BUDGET (17C-5-303) 21 1(a): BASE TAXABLE VALUE 22 1(b): PROJECTED AMOUNT OF TIF 22 1(c): COLLECTION PERIOD 22 1(d): TIF PAID TO OTHER TAXING ENTITIES 22 1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY 22 1(f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE 23 1(g): MAXIMUM CUMULATIVE DOLLAR AMOUNT 23 2: SALES AND USE TAX REVENUE 23 3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN 23 4: RDA'S COMBINED INCREMENTAL VALUE 24 5: PROJECT AREA FUNDS USED FOR ADMINISTRATION 25 6: EXPECTED SALES PRICE FOR PROPERTY THE RDA OWNS 26 EXHIBIT A: PROJECT AREA LEGAL DESCRIPTION AND MAP EXHIBIT B: DEFINITIONS EXHIBIT C: PUBLIC BENEFIT ANALYSIS (17C-5-105(2)(b)) NWQ COMMUNITY REINVESTMENT AREA PLAN 3 INTRODUCTION Through this Northwest Quadrant Community Reinvestment Area Plan ("CRA Plan"), the Redevelopment Agency of Salt Lake City ("RDA") contemplates the creation of a Community Reinvestment Area ("CRA") to facilitate the use of tax increment financing ("TIF") as a funding mechanism to further Salt Lake City's economic development goals. In addition, this CRA Plan will facilitate the implementation of the community vision and land use plan established by the Northwest Quadrant Master Plan. HARNESSING OPPORTUNITY Acclaimed as an area with unparalleled economic opportunity, the Northwest Quadrant ("NWQ") north of Interstate 80 offers over 3,000 acres of developable land in close proximity to an international airport, major highway interchange, and national rail crossing. Through the strategic cultivation of growth and prosperity, this area is positioned to become a model of regional economic development that elevates the global competitiveness of Salt Lake City, Salt Lake County, and the State of Utah. The complexity of developing the NWQ, combined with a changing economic landscape, requires a tactical approach to maximize the opportunities at hand. This CRA Plan sets forth goals, objectives, and strategies for the utilization of tax increment to advance development objectives in a sustainable, efficient, and collaborative manner. As efforts move forward, further coordination and partnership building will be key to take full advantage of the knowledge, skills, reach, and experience that stakeholders offer one another. State, county, city, public, private, and nonprofit partners together can have greater impact than working individually. With a steadfast approach, the development of the NWQ will provide jobs, economic growth, and regional prosperity for generations to come. NWQ COMMUNITY REINVESTMENT AREA PLAN 4 CRA PLAN REQUIREMENTS This CRA Plan complies with the community reinvestment project area plan requirements as per Utah Code 17C Community Reinvestment Agency Act. The RDA does not anticipate using eminent domain within the Project Area. Since the RDA is not carrying out a blight study or a blight determination, the Project Area is authorized through interlocal agreements with individual taxing entities, rather than a taxing entity committee. Prior to adopting a board resolution, the RDA Board of Directors (Board) has determined that this CRA Plan: • Contains a boundary description of the Project Area • Contains the RDA's purposes and intent with respect to the Project Area • Serves a public purpose • Produces a public benefit as per 17C-5-105(2) • Is economically sound and feasible • Conforms to the community's general plan • Promotes the public peace, health, safety, and welfare of the community PLAN & POLICY COORDINATION Salt Lake City has carried out various planning efforts focused citywide as well as specific to the NWQ. As components of the city's general plan, these efforts have established a clear vision for future development, and are based on extensive data gathering and community engagement. It is important that this CRA Plan draws from, builds upon, and integrates these prior plans and studies. The hierarchy of the these plans is outlined below. CITYWIDE VISION CITY SYSTEM PLANS COMMUNITY & SMALL AREA PLANS • Plan Salt Lake • Transportation, • Northwest Sustainability, Quadrant Master Open Space, etc. Plan IMPLEMENTATION PLANS & STRATEGIES NVUQ COMMUNITY REINVESTMENT AREA PLAN 5 COMMUNITY REINVESTMENT ANALYSIS OVERVIEW Section 1 conforms to the requirements of 17C-5-105(1), and includes the following information: a. Project Area Boundary Description b. Existing Land Uses and Neighborhood Context c. Standards To Guide Project Area Development d. Furthering Purposes of Utah Title 17C e. General Plan Consistency f. Elimination or Reduction of Blight g. Specific Project Area Development h. Process of Selecting Participants i. Reasons for Selecting the Project Area j. Existing Physical, Social, and Economic Conditions k. Financial Assistance to be Offered to Participants I. Public Benefit Analysis Results m. Historic Preservation Requirements n. Interlocal Agreement NVVQ COMMUNITY REINVESTMENT AREA PLAN 6 1(a): PROJECT AREA BOUNDARY DESCRIPTION The Northwest Quadrant Community Reinvestment Area ("Project Area") is generally defined on the south by Interstate 80 and 700 North; on the west by the Salt Lake City municipal boundary; on the North by the Salt Lake City municipal boundary; and on the east by 5600 West and the western edge of the decommissioned North Temple Landfill. Refer to Exhibit A for a complete legal description of the Project Area. FIGURE 1: PROJECT AREA BOUNDARY MAP 0 2,050 4,100 8,200 Feet "" I I I : NORTHWEST QUADRANT CRA BOUNDARY I PARCELS NWQ COMMUNITY REINVESTMENT AREA PLAN 1(b): EXISTING LAND USES AND NEIGHBORHOOD CONTEXT This section includes a general statement of the existing land uses, layout of principal streets, population densities, and building intensities of the Project Area and how each will be affected by the project area development. LAND USES Existing: Portions of the 7,739-acre Project Area have historically been used for agricultural, recreational, and conservation purposes include farming, grazing, hunting and fishing, housing for individuals working the land, and wildlife and habitat preservation. Today, several hundred acres are still being utilized as a working ranch, with the remainder of the area characterized by vacant land, large canals, stormwater management systems, natural habitat, and floodplains. In addition, regions within the Project Area are characterized by low elevations and highly liquefiable soils, which pose challenges to development. Anticipated Changes: The Northwest Quadrant Master Plan, adopted on August 16, 2016, provides a foundation for future land uses. Of the 7,739 acres contained within the Project Area, approximately half of the land area has been identified for preservation as a natural area. The remaining land area is considered to be developable as per zoning, drainage, and transportation planning requirements and standards. The Northwest Quadrant Overlay District, as established through zoning code, provides the following three subareas: 1. Development Area: Area in which development of light manufacturing uses may occur to promote economic development while minimizing impacts to sensitive lands. Supportive uses, such as restaurants, retail, and service stations are also permitted within this area. 2. Eco-Industrial Buffer Area: A 400' tract of land in which development may occur with additional design standards to mitigate impacts on birds, other wildlife, and the Natural Area. 3. Natural Area: Area in which new development is limited for the protection of sensitive lands and wildlife near the Great Salt Lake shorelands. LAYOUT OF PRINCIPAL STREETS Existing: There are currently no paved streets within the interior of the Project Area, however there are a limited number of privately -owned dirt roads. Anticipated Changes: In coordination with the development of the Utah State Correctional Facility, two access roads will be constructed, the first runs along 8000 West and the second zigzags from 700 North to 7200 West to 1400 North. Other major arterials, minor arterials, and collectors are being planned for the area and will be added to Salt Lake City's Major Street Plan. Additional local streets will be added as development occurs. NWQ COMMUNITY REINVESTMENT AREA PLAN 8 POPULATION DENSITIES Existing: Residential uses in the area are currently limited to housing for individuals working the land. As such, the Project Area has an extremely low population density. Anticipated Changes: As per the Northwest Quadrant Master Plan, residential is not a future land use within the Project Area. As such, the residential population density is anticipated to be few to zero. However, as the Project Area and adjacent landfill develops into a major employment center, a significant number of employees will be employed at businesses located in the NWQ. Tens of thousands of jobs will be created at full build -out depending on the type and density of businesses. BUILDING INTENSITIES Existing: Buildings currently located in the area are accessory structures relating to agricultural and recreational uses. As such, there are a very few existing structures in the Project Area. Anticipated Changes: Low density, large-scale industrial buildings will be developed for businesses relating to technology, manufacturing, processing, fabrication, assembly, freight handling, or similar operations. In addition, the NWQ has been contemplated for an intermodal facility and logistics park, to include a rail system co -located with light industrial development. Incidental commercial, service, and hospitality -oriented buildings will be developed and located primarily at gateways to the Project Area such as 7200 West at Interstate 80. NWQ COMMUNITY REINVESTMENT AREA PLAN 9 FIGURE 2: DEVELOPMENT FRAMEWORK MAP 8,200 Feet r J NATURAL AREA Area in which new development is limited for the protection of sensitive lands and wildlife near the Great Salt Lake shorelands. 2. ECO INDUSTRIAL BUFFER Within this 400' tract of land, development may occur with additional development standards that are intended to help mitigate impacts on wildlife and the natural areas. 3. DEVELOPMENT AREA Area in which development of light manufacturing uses may occur to promote economic development. Supportive uses, such as restaurants, retail, and services stations are also permitted within this area. 4. EXISTING RAILROAD A short line railroad currently crosses under 1-80 west of the International Center. This rail alignment has the potential to be expanded into the Development Area to boost the economic advantage of the area. SALT LAKE CITY NORTHWEST QUADRANT DEVELOPMENT FRAMEWORK • • Proposed RDA Area Planned Streets MN Development Buffer Conceptual Streets Development Area Existing Railroad Landfill Area (closed) Canal 11111 Natural Area SLCRDA 0TO DOWNTOWN SALT LAKE CITY 5. MOUNTAINVIEW CORRIDOR @ 1-80 UDOT's expansion plans for the Mountainview Corridor include a system connection located at 1-80 halfway between the 5600 W and 7200 W ramps. 6. PLANNED STREETS Two streets will be built to serve the new correctional facility. These streets will need to be up sized to accommodate economic development and growth. 7. CONCEPTUAL STREETS Once finalized, Salt Lake City's Major Street Plan will be updated to include additional arterial and collector streets, thereby enabling these streets to be eligible for impact fees. As development occurs, adjustments to the Major Street Plan may occur to provide flexibility. 8. 7200 WEST @ I - 80 To be developed as a major gateway to Salt Lake City. Development is anticipated to be 4 - 5 stories high, and provide office, lodging, and other services that will support the area's employees and visitors. NWQ COMMUNITY REINVESTMENT AREA PLAN 10 1(c): STANDARDS TO GUIDE PROJECT AREA DEVELOPMENT As standards to guide development, the RDA proposes to use the Guiding Principles provided in the Salt Lake City Northwest Quadrant Visioning Report ("Visioning Report"), dated March 2017. These Guiding Principles were established through analysis of existing site conditions, review of the Northwest Quadrant Master Plan, and input gathered through a stakeholder engagement process that was carried out between November 2016 and January 2017. Input was collected through seven roundtable groups that reached over 100 individual stakeholders. Guiding Principles are divided into Physical, Economic, and Environmental categories, as follows: PHYSICAL 1. Create a mixed -use gateway that highlights the project area as the western entry for Salt Lake City, capitalizes on key transportation corridors, and connects to existing neighborhoods. 2. Create walkable and bikeable linkages to nearby residential communities and recreation amenities. 3. Develop an infrastructure master plan that accounts for high water table and allows for flexibility in distribution and maintenance. 4. Design for an interconnected street and transportation network that accommodates all modes (e.g. pedestrians, bicycles, passenger vehicles, cargo trucks, and passenger and freight rail). 5. Incorporate passive sustainable practices such as permeable surfaces, stormwater capture/bio-filtration swales, and dark sky �- ENVIRONMENT c requirements. 2 co 6. Limit expansive impermeable parking �y �a areas and maximize developable areas '00 ,• by incorporating transportation demand management strategies. NWQ COMMUNITY REINVESTMENT AREA PLAN 11 ECONOMIC ENVIRONMENTAL 1. Maximize economic value and leverage regional demand by creating a forward - thinking, innovative development plan for light industrial uses. 2. Assist in the identification of a preferred location for an inland port to assure Salt Lake City as a growing manufacturing and distribution center that attracts high -quality and innovative businesses. 3. Encourage development of industrial Mega Sites in order to enhance the employment base and economic prosperity of the region. 4. Create partnerships between local educational institutions and business entities to enhance on-the-job training and capitalize on a young, growing workforce. 5. Promote the NWQ as "open for business" by facilitating a streamlined development approval process that includes clear requirements but is flexible enough to capitalize on market opportunities. 6. Recognize that the area provides opportunity to connect to the global supply chain in a more meaningful way by strategically aligning the site's exceptional ability to connect to regional, national, and international transportation networks. 7. Maximize economic value by building synergies with the prison development and infrastructure improvements. 8. Build in flexibility to ensure that implementation plans are nimble enough to adapt to changes in society, technology, and the economy. 9. Cultivate economic benefits enabled by Salt Lake City's Foreign Trade Zone (FTZ). NWQ COMMUNITY REINVESTMENT AREA PLAN 1. Promote transit use and alternative modes of travel. 2. Respect the existing canals and work to incorporate the existing landscape into the overall site design. 3. Promote development that respects the sensitive environment, balances uses and conservation, and reflects a keen understanding of the existing landscape that is unique to the NWQ. 4. Promote public and environmental health to ensure clean air, clean water, and a livable environment. 5. Facilitate the implementation of development standards in the Eco-lndustrial Buffer to help mitigate impacts on birds, wildlife, and the natural environment. 6. Prioritize the ecological health of the NWQ by encouraging project designs that prioritize the preservation and restoration of native habitats. 7. Encourage development that incorporates renewable energy generation, is environmentally friendly, and includes sustainable practices to reduce energy consumption and greenhouse gas emissions. 8. Encourage sustainable project development, possibly to include Eco-district certification, LEED certification, and/or Sustainable Sites certification. 12 1(d): FURTHERING PURPOSES OF UTAH TITLE 17C By implementing this CRA Plan, the RDA shall leverage private investment with TIF to facilitate economic growth and prosperity through infrastructure improvements, preparation of building sites, business development, and citywide housing development. Implementation shall be carried out through the following objectives. OBJECTIVE : INFRASTRUCTURE IMPROVEMENTS 1 TO CONSTRUCT INFRASTRUCTURE IN A COORDINATED, EFFICIENT, AND SYSTEMATIC MANNER FOR THE FACILITATION OF ECONOMIC • DEVELOPMENT AND IMPLEMENTATION OF THE CITY'S GENERAL PLAN, : MAJOR STREET PLAN, AND THE NORTHWEST QUADRANT MASTER DRAINAGE PLAN. TIF may be provided for capital and land costs associated with public infrastructure improvements. Projects shall facilitate economic development, the expansion of the City's tax base, and encourage orderly growth in compliance with the City's General Plan, Major Street Plan, and the Northwest Quadrant Master Drainage Plan. Eligible uses of funds may include, but not be limited to, the following: • Streets, sidewalks, curb and gutter, traffic controls, street lights, bike lanes, trails, wayfinding, and streetscaping; • Stormwater and drainage management systems including drainage channels, storm drains, bio swales, retention areas, and canal improvements; • Water distribution and sewer systems; • Railways and related facilities and infrastructure, including rail track, spurs, terminals, bridges, underpasses, and crossings; and • Other infrastructure that may be located outside of the Project Area but that is found to directly benefit the Project Area. OBJECTIVE : SITE DEVELOPMENT AND REMEDIATION 2 : TO FACILITATE ECONOMIC GOALS AND OBJECTIVES THROUGH THE PREPARATION OF BUILDING SITES FOR FUTURE DEVELOPMENT. TIF may be provided for costs associated with the preparation of building sites for development. Uses of TIF may include, but not be limited to, environmental remediation and/or containment; vapor intrusion mitigation; grading, fill and/ or soil correction; burden costs associated with bringing water, sewer, electrical, telecommunications, and/or other utility service to building sites; and landscaping or drainage improvements. TIF shall support projects that are in accordance with the City's General Plan, meet policies established for the NWQ, meet the City's economic development goals, are projected to generate an increase in the tax base, and meet financial criteria. NWQ COMMUNITY REINVESTMENT AREA PLAN 13 OBJECTIVE : 3: BUSINESS DEVELOPMENT TO FACILITATE AN ACTIVE AND VITAL EMPLOYMENT CENTER THROUGH THE RECRUITMENT, RETENTION, AND EXPANSION OF BUSINESSES TO PROVIDE LIVABLE WAGE JOBS AND ENHANCE ECONOMIC PROSPERITY. TIF may be provided to support business or industry -specific development projects. In addition to loans and reimbursements, the RDA may utilize TIF for the acquisition and/or disposition of property to carry out economic development objectives within the Project Area. TIF shall support projects that are in accordance with the City's general plan, meet policies established for the NWQ, meet the City's economic development goals, are projected to generate an increase in the tax base or return on investment, and meet financial criteria. OBJECTIVE : CITYWIDE HOUSING DEVELOPMENT 4 • : TO EXPAND THE AVAILABILITY AND AFFORDABILITY OF HOUSING : CITYWIDE TO PROVIDE ADDITIONAL HOUSING OPTIONS ALONG WITH : JOB GROWTH. TIF may be provided for the development of citywide housing to ensure the availability and affordability of quality housing throughout Salt Lake City. Funding will not only provide affordable housing for existing Salt Lake City residents, but will also provide housing for the expanding employment base spurred by economic development in the NWQ. NWQ COMMUNITY REINVESTMENT AREA PLAN 14 1(e): GENERAL PLAN CONSISTENCY The Northwest Quadrant Master Plan is the community general plan for the Project Area. The construction of buildings and improvements in the Project Area will be carried out in accordance with the standards set forth in the Northwest Quadrant Master Plan, as well as other applicable plans and policies. Building permits will be issued by the City in order to assure that project area development is consistent with the Northwest Quadrant Master Plan and City ordinances. This CRA Plan aligns with the future land use framework and goals established through the Northwest Quadrant Master Plan. Goals are as follows: • Preserve natural open spaces and sensitive areas to sustain biodiversity and ecosystem functions. • Balance protection and management of natural lands with access to recreational opportunities. • Ensure that the City responds effectively to the social, environmental, and developmental concerns. • Encourage a resilient and diversified economy. • Support quality jobs that include nonpolluting and environmentally -conscious high-tech and manufacturing sectors. • Promote industrial development that is compatible with the environmentally -sensitive nature of the area. • Provide services and infrastructure that are similar to other parts of the City. 1 (f): ELIMINATION OR REDUCTION OF BLIGHT Not applicable. 1(g): SPECIFIC PROJECT AREA DEVELOPMENT Specific projects and project sites have not been identified. Rather, project area development activities will facilitate infrastructure improvements, preparation of building sites, business development, and citywide housing development as further described in Section 1(d). 1(h): PROCESS OF SELECTING PARTICIPANTS The RDA may enter into participation agreements (also known as tax increment reimbursement agreements) for the purpose of providing incentives in the form of tax increment for project area development. Program participants shall be selected through an evaluation process as per the RDA's tax increment reimbursement program and policies. Potential participants must provide sufficient evidence that tax increment funding is necessary for the proposed project to succeed. In addition, the proposed project must align with CRA objectives and involve significant private investment so as to assure adequate yield of tax increment. NWQ COMMUNITY REINVESTMENT AREA PLAN 15 1(i): REASON FOR SELECTING THE PROJECT AREA Salt Lake City selected the Project Area due to the unparalleled opportunity to facilitate job creation, economic growth, and regional prosperity. However, the complexity of developing the NWQ, combined with a changing economic landscape, requires a tactical approach to maximize the opportunities at hand. As such, over the past several months, Salt Lake City has adopted a land use master plan, enacted zoning amendments, drafted an economic development visioning report and strategic plan, and established a public utilities basis for design. These efforts not only provide a land use and development framework for the area, but also provide an assessment of economic and market conditions to inform policy objectives and direct investments. Looking to the future, implementation of the vision and plans recently completed will require significant commitment of capital to leverage private investment. Establishment of the Project Area to facilitate tax increment financing is the first step in advancing development objectives in a sustainable, efficient, and collaborative manner. 1(j): EXISTING PHYSICAL, SOCIAL, ECONOMIC CONDITIONS An analysis of social and economic conditions within the CRA is generally inapplicable due to the undeveloped nature of the area. Current physical conditions relate to wildlife management, ranching, farming, canals, stormwater management, and vacant land. The Project Area is adjacent to a major regional rail line and extensive highway infrastructure. A relatively small group of property owners control the majority of the Northwest Quadrant's undeveloped land, providing a unique opportunity for quality planning and collaboration on development. 1(k): FINANCIAL ASSISTANCE OFFERED TO PARTICIPANTS To promote investment in real property and consequent increases in property values, the RDA has established programs to assist property owners and businesses within RDA project areas. The most widely used forms of RDA assistance are loans, tax increment reimbursements, and the property acquisition/disposition process. However, the RDA may also develop project area - specific programs strategically targeted to promote the goals and objectives of the Project Area. An overview of existing programs is as follows: 1. TAX INCREMENT REIMBURSEMENT PROGRAM The RDA Tax Increment Reimbursement Program may provide project developers a tax increment reimbursement for the development of improvements that meet the goals and objectives of this CRA Plan and provide significant public benefit. Tax increment NWQ COMMUNITY REINVESTMENT AREA PLAN 16 reimbursements shall be based upon the difference between the initial taxable value of a property prior to improvements and the increased taxable value resulting from said improvements. The developer will receive a percentage of the tax increment generated from its project for a specified time frame, and the RDA will receive the residual tax increment generated by the project. 2. LOAN PROGRAM The RDA Loan Program may provide financing to facilitate various development projects, including new construction, building rehabilitation, and energy efficiency upgrades. Funding is made available for construction costs or hard costs. Loan funds may also be used for site improvements associated with a development project. Use of funds for environmental remediation or demolition shall be considered on a case -by -case basis. 3. PROPERTY ACQUISITION/DISPOSITION In addition to programs, the RDA may implement this CRA Plan by acquiring property to market for strategic redevelopment, particularly to stimulate private investment, improve conditions, and increase economic development with the area. As per the Utah Code 17C Community Reinvestment Agency Act, the RDA may sell, convey, grant, gift, or otherwise dispose of any interest in real property to provide for project area development. Disposition of all RDA -owned real property, including land write -downs, shall abide by the RDA's real property disposition policy, all applicable laws, and be conducted in a competitive and transparent manner as deemed appropriate and effective. 1(1): PUBLIC BENEFITS ANALYSIS SUMMARY According to the Utah Code 17C Community Reinvestment Agency Act, the RDA shall conduct an analysis to determine whether this CRA Plan will provide a public benefit. The RDA contracted with Zions Public Finance ("ZPFI") to carry out this effort. A summary of the resulting analysis, as completed by ZPFI, is as follows. Refer to Exhibit C for the complete Northwest Quadrant Community Reinvestment Area Public Benefits Analysis. a. An evaluation of the reasonableness of the costs of the proposed project area development An evaluation of the reasonableness of the costs of the proposed project area development is based on a comparison of the costs of the development compared to the revenues and benefits it will generate for the various taxing entities. The Project Area is currently generating only a minimal amount of tax revenues annually. Over 20 years, the anticipated tax revenues, assuming current conditions, will amount to $207,272. NWQ COMMUNITY REINVESTMENT AREA PLAN 17 BASE (EXISTING) TAX REVENUES: Base Year Tax Revenues Total — 20 Years NPV* — 20 Years Annual Tax Revenues Salt Lake County $32,934 $22,379 $1,647 Multicounty Assessing & Collecting Levy $147 $100 $7 County Assessing & Collecting Levy $3,591 $2,440 $180 Salt Lake City School District $84,586 $57,478 $4,229 Salt Lake City $63,072 $42,858 $3,154 Salt Lake Library $12,273 $8,340 $614 Salt Lake Metropolitan Water District $4,783 $3,250 $239 Central Utah Water Conservancy District $5,886 $4,000 $294 TOTAL $207,272 $140,845 $10,364 *Net present value discounted at a rate of 4 percent In comparison, with the projected development, the area will generate an estimated $233 million in property tax revenues over 20 years. The annual tax increment revenue will increase yearly, as development proceeds. b. Efforts that have been, or will be made to capitalize private investment Private investment in the area, for real property alone, is anticipated to reach nearly $3.6 billion within 35 years. This represents a substantial investment in an area of the Salt Lake Valley that is currently undeveloped and that deals with significant construction concerns, most notably the high water levels, soil stability, and lack of infrastructure. In an effort to increase private investment in the area, the RDA is proposing the creation of a CRA to assist with the extraordinary costs of construction that negatively impact the attractiveness of the area to developers. The amount to be contributed to the RDA is estimated at $174,815,907. Therefore, this represents a ratio of 20:1 of private investment to public investment. c. Rationale for use of project area funds ("but for" analysis) Development within the Project Area is unlikely to take place within the next ten years without some sort of public assistance. The rationale for the use of tax increment funds in the area is due to the extraordinary costs of construction associated with the high water table and lack of infrastructure in the area. In addition, there are development barriers relating to soil conditions and lowland areas within the general area. This adds uncertainty, time, and cost to the construction process. By assisting with these concerns, much of the present uncertainty expressed by developers would be mitigated and the area would become more attractive for development. NWQ COMMUNITY REINVESTMENT AREA PLAN 18 There is also some uncertainty regarding access to utilities and the placement of future infrastructure in the area. Preliminary plans indicate that the State of Utah will lead the construction effort for two roadway/transmission corridors, one running north from 1-80 to the prison site and the other running west from the International Center to the prison site. It is anticipated that the State will cover the up -front costs of street and baseline water/ sewer infrastructure. In anticipation of future development, Salt Lake City may allocate funding to cover the difference between the cost of baseline water/sewer infrastructure and a higher capacity system, thereby establishing a backbone system for the Project Area. Tax increment may be utilized to cover the cost of street and public utility improvements that lead from this backbone system to developable sites. d. An estimate of total amount of funds and the length of time during which funds will be spent Because of the extremely high costs associated with placing backbone infrastructure in this area, as well the uncertainties with the soil stability in some areas, the RDA anticipates the need for 75 percent of tax increment for a period of 20 years. Assuming a 20-year timeframe, with 75 percent of increment flowing to the RDA, the RDA would receive a total of nearly $175 million with a net present value (NPV) of roughly $100 million. e. The beneficial influences on the community's tax base The current taxable value of the Project Area is $735,791 or an average of $95.64 per acre. With the proposed development, the average taxable value per acre is projected to increase to $464,668 — an increase of roughly 485,751 percent. The following table summarizes the increases in real property taxable value projected at different time periods using the assumptions for absorption and average values. Year Taxable Value Increase over Current Value 5 $226,457,109 $225,721,318 10 $700,177,676 $699,441,885 15 $1,293,827,500 $1,293,091,710 20 $1,893,473,788 $1,892,737,997 25 $2,493,120,075 $2,492,384,285 30 $3,092,766,363 $3,092,030,572 35 $3,574,881,978 $3,574,146,187 Fourty-one percent of the increased tax revenues would benefit the Salt Lake City School District, 30 percent would benefit Salt Lake City and 16 percent would benefit Salt Lake County. Therefore, there are significant benefits to the tax base of the community from creating a project area. NWQ COMMUNITY REINVESTMENT AREA PLAN 19 f. The associated business and economic activity the proposed project area development will likely stimulate Based on a financial feasibility analysis completed by Jones Lang LaSalle, the Salt Lake City Northwest Quadrant Phase II Feasibility Analysis, nearly 32,000 jobs will be created in the Project Area. This is a significant number, as total employment in Salt Lake County was 712,912 in October 2017. Therefore, the job projections for the Project Area represent 4.5 percent of the current workforce in the County. g• The Kem C. Gardner Policy Institute ("Policy Institute") recently completed an economic analysis specifically looking at employment sector comparisons for the NWQ. The Policy Institute's analysis indicates that as many as 100,000+ jobs may be created at full build out when factoring in local multipliers. In addition to full-time jobs created in the Project Area, there will be a significant number of construction jobs created over a long period of time as absorption takes place in this area. Whether adoption of the proposed community reinvestment project area plan is necessary and appropriate to undertake the proposed project area development The creation of the proposed Community Reinvestment Project Area Plan is necessary and appropriate for the following reasons: • There are significant infrastructure issues (landfill remediation, uncertainty regarding access to utilities, and lowlands with high water tables) that make the area currently unattractive to developers. • The creation of a Project Area with remediation of the above -listed problems will generate significant economic development and increased property tax base. • The development that will take place in the area will create a significant number of new jobs. • Expansion of the Salt Lake City International Airport will create significant development opportunities in the area if a well -planned area, with good infrastructure, is available. • This area forms a gateway from the west, along 1-80, for visitors entering Salt Lake City, the State's capital city. 1(m): HISTORIC PRESERVATION Not applicable. 1(n): INTERLOCAL AGREEMENT According to the Utah Code 17C Community Reinvestment Agency Act The Project Area is subject to an interlocal agreement with taxing entities, rather than a taxing entity committee, because the RDA is not carrying out a blight study. NWQ COMMUNITY REINVESTMENT AREA PLAN 20 PROJECT AREA BUDGET OVERVIEW Section 2 of this CRA Plan 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 NWQ COMMUNITY REINVESTMENT AREA PLAN 21 1(a): BASE TAXABLE VALUE The base year is anticipated to be 2017, with a base year taxable value of $735,791. 1(b): PROJECTED AMOUNT OF TIF INCREMENTAL PROPERTY TAX REVENUES GENERATED FOR 20 YEARS: Incremental Tax Revenues - 100% Salt Lake County Total — 20 Years $37,035,901 NPV* — 20 Years $21,148,021 Multicounty Assessing & Collecting Levy $165,487 $94,495 County Assessing & Collecting Levy $4,037,873 $2,305,682 Salt Lake City School District $95,121,698 $54,315,828 Salt Lake City $70,927,557 $40,500,633 Salt Lake Library $13,801,582 $7,880,898 Salt Lake Metropolitan Water District $5,378,315 $3,071,093 Central Utah Water Conservancy District $6,619,464 $3,779,807 TOTAL $233,087,876 $133,096,458 *Net present value discounted at a rate of 4 percent 1(c): COLLECTION PERIOD The collection period shall be 20 years. 1(d): TIF PAID TO OTHER TAXING ENTITIES INCREMENTAL PROPERTY TAX REVENUES TO TAXING ENTITIES FOR 20 YEARS: Incremental Tax Revenues to Taxing Entities Salt Lake County Total — 20 Years $9,258,975 NPV* — 20 Years $5,287,005 Multicounty Assessing & Collecting Levy $41,372 $23,624 County Assessing & Collecting Levy $1,009,468 $576,421 Salt Lake City School District $23,780,424 $13,578,957 Salt Lake City $17,731,889 $10,125,158 Salt Lake Library $3,450,396 $1,970,224 Salt Lake Metropolitan Water District $1,344,579 $767,773 Central Utah Water Conservancy District $1,654,866 $944,952 TOTAL $58,271,969 $33,274,114 *Net present value discounted at a rate of 4 percent 1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY Not applicable. The TIF collection area is the entire CRA boundary. NWQ COMMUNITY REINVESTMENT AREA PLAN 22 1 (f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE REQUESTED PARTICIPATION FROM TAXING ENTITIES: Taxing Entity Percentage Length Salt Lake County 75% 20 Years Salt Lake City School District 75% 20 Years Salt Lake City 75% 20 Years Salt Lake Library 75% 20 Years Salt Lake Metropolitan District 75% 20 Years Salt Lake City Mosquito Abatement Dis. 75% 20 Years Central Utah Water Conservancy District 75% 20 Years 1(g): MAXIMUM CUMULATIVE AMOUNT RECEIVED BY THE RDA Based on a conservative projection of tax increment generation, the RDA estimates receiving approximately $175,000,000 in tax increment revenues over a 20-year period. Actual receipt of tax increment may be higher depending on absorption rates, market conditions, and taxing entity participation terms. As such, tax increment budget estimates and maximums, if applicable, will be established through an interlocal agreement with each of the participating taxing entities. Estimated tax increment revenues are as follows: 20-YEAR TAX INCREMENT REVENUES TO RDA AT 75% PARTICIPATION RATE: Incremental Tax Revenues to RDA Salt Lake County Total, 2022-2041 $27,776,926 NPV, 2022-2041 $15,861,016 Multicounty Assessing & Collecting Levy $124,115 $70,871 County Assessing & Collecting Levy $3,028,405 $1,729,262 Salt Lake City School District $71,341,273 $40,736,871 Salt Lake City $53,195,668 $30,375,475 Salt Lake Library $10,351,187 $5,910,673 Salt Lake Metropolitan Water District $4,033,736 $2,303,320 Central Utah Water Conservancy District $4,964,598 $2,834,855 TOTAL $174,815,907 $99,822,343 2: SALES AND USE TAX REVENUE: Not applicable. 3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN BUDGET FOR 20-YEAR TAX INCREMENT Activity Administration REVENUES TO Percentage 10% RDA: Amount $17,481,591 Housing 10% $17,481,591 Shared Costs 10% $17,481,591 Redevelopment Activities 70% $122,815,907 Total 100% $174,815,907 NWQ COMMUNITY REINVESTMENT AREA PLAN 23 The RDA shall implement this plan through the following activities: • ADMINISTRATION AND OPERATIONS: The tax increment expected to be used to cover the operatings 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. • SHARED COSTS: The tax increment expected to be used for redevelopment activities that benefit the entire Project Area, are system wide, or that benefit multiple property owners or parcels. • 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 PROJECT AREA SLC CBD In INCREMENTAL ASSESSED PROPERTY VALUE $2,253,069,110 VALUE BASE TAXABLE VALUE $136,894,100 INCREMENTAL VALUE $2,116,175,010 SLC CBD Out $468,564,069 $0 $468,564,069 Sugar House $358,792,409 $53,401,199 $305,391,210 West Temple $131,625,455 $50,234,090 $81,391,365 Baseball $2,994,111 $0 $2,994,111 West Capitol Hill $83,471,701 $28,322,952 $55,148,749 Depot District $419,610,969 $27,476,425 $392,134,544 Depot District Non -Collection $17,069,143 $0 $17,069,143 Granary $90,443,298 $48,813,397 $41,629,901 North Temple Viaduct $64,730,133 $36,499,680 $28,230,453 North Temple $106,098,060 $84,073,572 $22,024,488 Block 70 $158,846,344 $58,757,937 $100,088,407 COMBINED VALUE $4,155,314,802 $524,473,352 $3,630,841,450 5: PROJECT AREA FUNDS USED FOR ADMINISTRATION The RDA anticipates utilizing up to 10 percent of the funds captured and retained by the agency, which is estimated to be $17,481,591. 6: EXPECTED SALE PRICE FOR PROPERTY THE RDA OWNS The RDA does not own property within the Project Area. NWQ COMMUNITY REINVESTMENT AREA PLAN 24 EXHIBIT A: PROJECT AREA LEGAL DESCRIPTION & MAP Beginning at a point on the existing Salt Lake City boundary which is the Northwest Corner of Section 17, Township 1 North, Range 2 West, Salt Lake Base and Meridian, and running thence along the existing Salt Lake City boundary the following 18 courses: 1) N89°54'36"E 2637.89 feet to the N1/4 Corner of said Section 17; 2) N89°53'20"E 2640.05 feet to the NE Corner of said Section 17; 3) S89°48'47"E 2640.69 feet to the N1/4 Corner of Section 16 said Township; 4) N00°26'13"E 1320.23 feet to the W1/4 Corner of the SE1/4 of Section 9 said Township; 5) S89°48'47"E 2625.84 feet to the E1/4 Corner of the SE1/4 of said Section 9; 6) S00°24'42"W 1320.23 feet to the NE Corner of said Section 16; 7) S00°24'42"W 2650.57 feet to the E1/4 Corner of said Section 16; 8) SOO°26'25"W 1325.15 feet to the W1/4 Corner of the SW1/4 of Section 15; 9) S89°50'13"E 1322.93 feet to the Center of the SW1/4 of said Section 15; 10) N00°23'04"E 2648.09 feet to the Center of the NW1/4 of said Section 15; 11) S89°44'08"E 3963.23 feet to the E1/4 Corner of the NE1/4 of said Section 15; 12) S89°47'29"E 1317.60 feet to the Center of the NW1/4 of Section 14 said Township; 13) SOO°15'30"W 3961.12 feet to the S1/4 Corner of the SW1/4 of said Section 14; 14) S89°47'29"E 1317.60 feet to the S1/4 Corner of said Section 14; 15) S00°13'53"W 1320.92 feet to the E1/4 Corner of the NW1/4 Section 23 said Township; 16) S89°46'07"E 1320.22 feet to the Center of the NE1/4 of said Section 23; 17) S00°13'54"W 2643.89 feet to the Center of the SE1/4 of said Section 23; 18) S44°44'23"E 1868.01 feet to the SE Corner of said Section 23; thence along the east line of Section 26 said Township S00°20'Ol"W 3991.93 feet to the north line of John Cannon Drive; thence along the north line of John Cannon Drive S89°47'45"E 44.00 feet to the projected east line of 5600 West; thence along the east line of 5600 West S00°20'07"W 1284.30 feet to the south line of Section 25 said township; thence along the south lines of said Section 25 and 26 N89°47'25"W 774.13 feet to the Southwest Corner of Watkins Industrial Park Subdivision as recorded in Book 2003P, Page 162 of Subdivisions, in the Salt Lake County Recorder's Office; thence along the south line of said Section 26 N89°47'24"W 2937.61 feet; thence S00°11'54"W 99.14 feet to the Northeast Corner of Parcel 07-35-100-016; thence along said parcel the following 6 courses: 1) N89°46'53"W 1609.45 feet; 2) N89°50'44"W 2642.88 feet; 3) N89°50'20"W 2644.04 feet; 4) N89°44'53"W 1317.05 feet; 5) S00°13'52"W 2541.25 feet; 6) S00°14'20"W 1723.95 feet to the north line of the 1-80 right-of-way and an 1849.86 foot radius non -tangent curve to the right; thence along said north line and said curve 63.56 feet (chord bears S71°02'20"W 63.56 feet); thence along said north line N89°47'45"W 9176.07 feet to the west boundary line of Salt Lake City; thence along said west boundary the following 10 courses: 1) NOO°19'37"E 1745.63 feet to the West Quarter Corner of Section 32 said township; 2) N00°20'10"E 846.69 feet; 3) S89°47'26"E 1320.00 feet; 4) N00°20'10"E 950.40 feet; 5) N89°47'26"W 1320.00 feet; 6) N00°20'10"E 844.84 feet to the Northwest Corner of said Section 32; 7) N00°19'16"E 5285.43 feet to the Southwest Corner of Section 20 said township; 8) N00°17'46"E 2629.78 feet to the West Quarter Corner of said Section 20; 9) N00°18'30"E 2631.00 feet to the Northwest Corner of said Section 20; 10) N00°17'29"E 5280.23 feet to the point of beginning. Contains 7,739.092 acres, more or less. NWQ COMMUNITY REINVESTMENT AREA PLAN: EXHIBIT A 25 SALT LAKE CITY MUNICIPAL BOUNDARY PROPOSED \OMHW SALT LAKE CITY MUNICIPAL BOUNDARY 2637.89' 2640.05' 2640.69' CRA BO,J\ 2625.84' N89'54'36"E N89'53'20"E S89'48'47'E 589'48'47"E Beginning at a point on the existing Solt Lake City boundary which is the Northwest Corner of Section 17, Township 1 North, Range 2 West, Salt Loke Bose and Meridian, and running thence along the existing Solt Loke City boundary the following 18 courses: 1) N89'54'36"E 2637.89 feet to the N4 Comer of said Section 17; 2) N89'53'20"E 2640.05 feet to the NE Corner of said Section 17; 3) 689'48'47"E 2640.69 feet to the Ni Comer of Section 16 said Township; 4) N00'26'13"E 1320.23 feet to the W4 Comer of the SE4 of Section 9 said Township; 5) 589'48'47"E 2625.84 feet to the E4 Corner of the SE4 of said Section 9; 6) 500'24'42"W 1320.23 feet to the NE Corner of said Section 16; 7) S00'24'42"W 2650.57 feet to the E4 Corner of said Section 16; 8) 600'26'25'W 1325.15 feet to the W4 Corner of the SW} of Section 15; 9) 689'50'13"E 1322.93 feet to the Center of the SW} of said Section 15; 10) NOO'23'04"E 2648.09 feet to the Center of the NW4 of said Section 15; 11) 689'44'08"E 3963.23 feet to the E4 Corner of the No of said Section 15; 12) 689'47.29"E 1317.60 feet to the Center of the NW4 of Section 14 said Township; 13) 500'15'30V1 3961.12 feet to the 54 Corner of the SW4 of said Section 14; 14) 689'47'29"E 1317.60 feet to the 54 Corner of said Section 14; 15) 500'13'53V/ 1320.92 feet to the E} Corner of the NW4 Section 23 said Township; 16) S89'46'07"E 1320.22 feet to the Center of the Na of said Section 23; 17) 500'13'54'W 2643.89 feet to the Center of the SE4 of said Section 23; 18) 644'44'23"E 1868.01 feet to the 5E Corner of said Section 23; thence along the east line of Section 26 said Township 500'20'01'W 3991.93 feet to the north line of John Cannon Drive; thence along the north line of John Cannon Drive S89'47'45"E 44.00 feet to the projected east line of 5600 West; thence along the east line of 5600 West 600'20'07'W 1284.30 feet to the south line of Section 25 said township; thence along the south lines of said Section 25 and 26 N89'47'251v 774.13 feet to the Southwest Comer of Watkins Industrial Park Subdivision as recorded in Book 2003P, Page 162 of Subdivisions, in the Salt Lake County Recorders Office; thence along the south line of said Section 26 N89'47'24'W 2937.61 feet; thence S00'11'5414 99.14 feet to the Northeast Corner of Parcel 07-35-100-016; thence along said parcel the following 6 courses: 1) N89'46'53'W 1609.45 feet; 2) N89'50'44"W 2642.88 feet; 3) N89'50'20111 2644.04 feet; 4) N89'44'53.'111 1317.05 feet; 5) SO0'13'52'W 2541.25 feet; 6) S00'14'20"W 1723.95 feet to the north line of the I-80 right-of-way and on 1849.86 foot radius non -tangent curve to the right; thence along said north line and said curve 63.56 feet (chord bears 571'02'20"W 63.56 feet); thence along said north line N89'47'45'W 9176.07 feet to the west boundary line of Salt Lake City; thence along said west boundary the following 10 courses: 1) N00'19'37"E 1745.63 feet to the West Quarter Comer of Section 32 said township; 2) N00'20'10"E 846.69 feet; 3) 589'47'26"E 1320.00 feet; 4) N00'20'10"E 950.40 feet; 5) N89'47'26 8 1320.00 feet; 6) N00'20'10"E 844.84 feet to the Northwest Corner of said Section 32; 7) N00'19'16"E 5285.43 feet to the Southwest Corner of Section 20 said township; 8) N00'17'46"E 2629.78 feet to the West Quarter Corner of said Section 20; 9) NOO'18'30'E 2631.00 feet to the Northwest Corner of said Section 20; 10) NOD'17'29.E 5280.23 feet to the point of beginning. Contains 7,739.D92 acres, more or less. N00'20'10'E 7844.84' N89'47'26V! {1320.00' N89'44'53'W 1317.05'A 1.1 \_589'47'26"E 1320.00' N00'20'10"E 846.69' m � � N89'47'45.1 9176.07' INTERSTATE 80 din 1.1. 1322.93' 689'50'13'E EST Q UA3 A\T 3ARY SALT LAKE CITY MUNICIPAL BOUNDARY 3963.23' 1317.60' 689'44'08-E S89'47'29'E 700 NORTH N89'50'20'W N89'50'44V/ N P Q�yxp920.� .j2,0 4Y L.63.561. 2644.04' 2642.88' 589'47'29'EJ 1317.60' 1320.22' 0� 589'46'07" S00' 11'54 W 99.14'� N89'46'5311 1609.45' j S89'47'45'E 44.00' \ N89'47'24'W 2937.61' N89'47'25-W ] 774.13' NWQ COMMUNITY REINVESTMENT AREA PLAN: EXHIBIT A 26 - (n dw 0 0 L() EXHIBIT B: DEFINITIONS 1. The term "Act" or "Utah Code 17C Community Reinvestment Agency Act" shall mean the "Limited Purpose Local Government Entities - Community Reinvestment Agency Act" as found in Title 17C, Utah Code Annotated 1953, as amended. 2. The term "Affordable Housing" shall mean housing to be owned or occupied by persons and families of low or moderate income, as determined by resolution of the RDA. 3. The term "Base Taxable Value" unless otherwise adjusted in accordance with provisions of this title, shall mean a property's taxable value as shown upon the assessment roll last equalized during the base year. 4. The term "Base Year" shall mean, except as provided in Subsection 17C-1-402(4)(c), the year during which the assessment roll is last equalized 5. The term "Board" shall mean the governing body of the Agency, as provided in Section 17C-1-203 of the Act. 6. The term "City" shall mean the city of Salt Lake City. 7. The term "Housing Allocation" shall mean tax increment allocated for housing under Section 17C-2- 203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412. 8. The term "Income Targeted Housing" shall mean housing to be owned or occupied by a family whose annual income is at or below 80% of the median annual income for Salt Lake County. 9. The term "Northwest Quadrant Master Plan" shall mean the Community General Plan as required by the Act, which acts as the master plan, adopted by Salt Lake City on August 16, 2016. 10. The term "Project Area" shall mean the area described in Exhibit A attached hereto. 11. The term "Project Area Budget" shall mean a multiyear projection of annual or cumulative revenues and expenses and other fiscal matters pertaining to the Project Area that includes: (i) the Base Taxable Value of property in the Project Area; (ii) the projected Tax Increment expected to be generated within the Project Area; (iii) the amount of Tax Increment expected to be shared with other taxing entities; (iv) the amount of Tax Increment expected to be used to implement the Project Area Plan, including the estimated amount of Tax Increment to be used for land acquisition, public improvements, infrastructure improvements, and loans, grants, or other incentives to private and public entities; (v) the Tax Increment expected to be used to cover the cost of administering the Project Area Plan; (vi) if the area from which Tax Increment is to be collected is less than the entire Project Area: (a) the tax identification numbers of the parcels from which Tax Increment will be collected; or (b) a legal description of the portion of the Project Area from which Tax Increment will be collected; (vii) for property that the RDA owns and expects to sell, the expected total cost of the property to the RDA and the expected selling price; and (viii) the following required information: (a) the number of tax years for which the RDA will be allowed to receive Tax Increment from the Project Area; and (b) the percentage of Tax Increment or maximum cumulative dollar amount of Tax Increment the RDA is entitled to receive from the Project Area under the Project Area Budget. 12. The term "RDA" shall mean the Redevelopment Agency of Salt Lake City. 13. The term "Taxable Value" shall mean the value of property as shown on the last equalized assessment roll as certified by the Salt Lake County Assessor. 14. The term "Tax Increment" shall mean the difference between: (i) the amount of property tax revenues generated each tax year by all taxing entities from the area within a Project Area designated in the Project Area Plan as the area from which Tax Increment is to be collected, using the current assessed value of the property; and (ii) the amount of property tax revenues that would be generated from that same area using the Base Taxable Value of the property. 15. The term "Taxing Entity" shall mean a public entity that levies a tax on a parcel or parcels of property located within the City. NWQ COMMUNITY REINVESTMENT AREA PLAN: EXHIBIT B 27 Salt Lake City Redevelopment Agency Northwest Quadrant Community Reinvestment Area Benefits Analysis Z UNS PUBLIC FINANCE,INC. ©0 December 7, 2017 Salt Lake City Northwest Quadrant CRA 1 DRAFT Market and Benefits Analysis Contents ©11 Contents 1 Background 2 Development Assumptions 4 ZonesA&C 5 Benefits Analysis 5 Evaluation of the Reasonableness of the Costs of the Proposed Project Area Development 5 Efforts to Maximize Private Investment 7 Rationale for Use of Project Area Funds — Whether the Proposed Project Area Development Might Reasonably Be Expected to Occur in the Foreseeable Future Solely Through Private Investment 7 Estimate of Total Amount of Project Area Funds the Agency Intends to Spend on Project Area Development and Length of Time Over Which the Project Area Funds Will Be Spent 8 Beneficial Influences on the Community's Tax Base 9 Associated Business and Economic Activity the Proposed Project Area Development Will Likely Stimulate 10 Whether Adoption of the Proposed Community Reinvestment Project Area Plan is Necessary and Appropriate to Undertake the Proposed Project Area Development 12 Appendix A 13 Appendix B 15 Zions Public Finance, Inc. December 2017 1 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis ©© ® Q Background The purpose of this report is to conduct a benefits analysis for development of the Northwest Quadrant under Utah Code §17C-5-105(2) which lists the following requirements: (a) An Agency shall conduct an analysis in accordance with Subsection (2)(b) to determine whether the proposed community reinvestment project area plan will provide a public benefit. (b) The analysis described in Subsection (2)(a) shall consider: (i) the benefit of any financial assistance or other public subsidy to be provided by the agency, including: (A) an evaluation of the reasonableness of the costs of the proposed project area development; (B) efforts that have been, or will be made, to maximize private investment; (C) the rationale for use of project area funds, including an analysis of whether the proposed project area development might reasonably be expected to occur in the foreseeable future solely through private investment; and (D) an estimate of the total amount of project area funds that the agency intends to spend on project area development and the length of time over which the project area funds will be spent; and (ii) the anticipated public benefit derived from the proposed project area development, including: (A) the beneficial influences on the community's tax base; (B) the associated business and economic activity the proposed project area development will likely stimulate; and (C) whether adoption of the proposed community reinvestment project area plan is necessary and appropriate to undertake the proposed project area redevelopment. The study area, outlined in the figure below, is the area located immediately west of the Salt Lake City International Airport and the International Center, and north of 1-80, not including the North Temple Landfill. 2 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA 1 DRAFT Market and Benefits Analysis FIGURE 1: MAP OF PROJECT AREA BOUNDARIES PROPOSED NORTHWEST QUADRANT COMMUNITY REINVESTMENT AREA ©0 © 0 r I-80 Salt Lake City Municipal Boundary 0 0.25 0.5 1.5 Salt Lake international Airport 2 Miles A Proposed CRA Boundary as Authorized by the RDA Board of Directors, July sorb ; Proposed Revised CRA Boundary, December sari This report is organized as follows: • Background • Development Assumptions • Tax Increment Projections • Benefits Analysis Zions Public Finance, Inc. December 2017 3 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis ©© Pi Ell Development Assumptions Development assumptions were provided by the Salt Lake City Redevelopment Agency ("RDA") from the Salt Lake City Northwest Quadrant Phase I1 Feasibility Analysis prepared by JLL in December 2017. Absorption projections are for light industrial, flex office, retail and hotel development. Zones A & C represent the study area shown above, minus the landfill. Zone B represents the landfill site. Zone A Zone B Zone C TOTAL SF Absorbed Light Industrial Flex Office Retail 14,196,995 5,880,412 20,115,587 40,192, 994 5,166,231 85,327 5,302,950 534,293 2,088,368 - 12,557,549 619,620 Source: Salt Lake City Northwest Quadrant Phase 11 Feasibility Analysis Hotel Rooms/Acres For purposes of analysis, Zones A and C have been combined in this study, and Zone B (landfill) is considered in a separate analysis. Therefore, the total square feet absorbed in zones A & C is as follows: Zone A Zone C Light Industrial 14,196,995 20,115,587 Flex Office Retail 5,166,231 2,088,368 85,327 TOTAL SF Absorbed 34,312,582 7,254,599 85,327 Source: Salt Lake City Northwest Quadrant Phase 11 Feasibility Analysis 115 718 833 Hotel Rooms/Acres 115 115 The JLL study also provides estimates of the future densities, or floor area ratios (FAR), of the various types of development. ZPFI has used the JLL assumptions for light industrial, retail and hotel, but has slightly reduced the FAR for flex office. Light Industrial Flex Office Retail Hotel Rooms/Acres Building sf per acre 13,068 17,424 13,068 79 Floor Area Ratio 0.3 0.5 0.3 NA Finally, the JLL report also provides estimates of the land and construction costs of the various types of development. This analysis uses the JLL estimates for all categories, with the exception of flex office construction costs. For this category, we have reduced the building costs to $100 per building square foot. Throughout the analysis, all costs have been inflated at a growth rate of two percent per year. 4 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis TABLE 4: LAND COSTS PER ACRE Light Industrial $189,006 TABLE 5: VERTICAL CONSTRUCTION COSTS PER BUILDING Si" Light Industrial Flex Office $60 $100 aQ ©11 Flex Office Retail Hotel Rooms/Acres $325,319 $285,628 $831,904 Retail $160 Hotel Rooms/Acres $130,000 In addition, personal property valuation must be added to the light industrial and flex office construction costs. This analysis adds $5.00 per building square foot to the light industrial and flex office categories in order to cover personal property valuation. While it is recognized that personal property values depreciate yearly, and replacement costs must also be considered, the $5.00 is an average value used. Personal property values range significantly in industrial development. With no specific tenants in mind at this point in time, a conservative estimate has been used. Zones A & C Based on the foregoing assumptions, total valuation is expected to reach $3,574,881,978 over the 35- year time period of this analysis. TABLE 6: PROJECTED TAXABLE VALUE AT BUILDOUT — ZONES A & C Building Category Zones A & C — Land Light Industrial Flex Office Retail Hotel TOTAL Land Zones A & C — Construction Light Industrial Flex Office Retail Hotel TOTAL Construction TOTAL TAXABLE VALUE Benefits Analysis sec _:acs-,�:ti Taxable Value at Buildout :a s,cHzr. rsazr!s "'" $496,363,338 $54,189,523 $1,865,342 $1,214,581 $553,632,784 $2,230,727,390 $761,872,774 $13, 654, 827 $14,994,202 $3,021,249,194 $3,574,881,978 Evaluation of the Reasonableness of the Costs of the Proposed Project Area Development An evaluation of the reasonableness of the costs of the proposed project area development is based on a comparison of the costs of the development compared to the revenues and benefits it will generate for the various taxing entities. 5 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis The project area is currently generating only a minimal amount of tax revenues annually. Over 20 years, the anticipated tax revenues, assuming current conditions, will amount to $207,272.1 TABLE 7: BASE (EXISTING) TAX REVENUES Base Year Tax Revenues Total — 20 Years NPV* — 20 Years Annual Tax Revenues ..,fi Salt Lake County $32,934 $22,379 $1,647 Multicounty Assessing & Collecting Levy $147 $100 $7 County Assessing & Collecting Levy $3,591 $2,440 $180 Salt Lake City School District $84,586 $57,478 $4,229 Salt Lake City $63,072 $42,858 $3,154 Salt Lake Library $12,273 $8,340 $614 Salt Lake Metropolitan Water District $4,783 $3,250 $239 Central Utah Water Conservancy District $5,886 $4,000 $294 TOTAL $207,272 $140,845 $10,364 *Net present value discounted at a rate of 4 percent In comparison, with the projected development, the area will generate an estimated $233 million in property tax revenues over 20 years. The annual tax increment revenue will increase yearly, as development proceeds. Incremental Tax Revenues - 100% Total — 20 Years NPV* — 20 Years Salt Lake County $37,035,901 $21,148,021 Multicounty Assessing & Collecting Levy $165,487 $94,495 County Assessing & Collecting Levy $4,037,873 $2,305,682 Salt Lake City School District $95,121,698 $54,315,828 Salt Lake City $70,927,557 $40,500,633 Salt Lake Library $13,801,582 $7,880,898 Salt Lake Metropolitan Water District $5,378,315 $3,071,093 Central Utah Water Conservancy District $6,619,464 $3,779,807 TOTAL $233,087,876 $133,096,458 *Net present value discounted at a rate of 4 percent Therefore, the proposal to contribute 75 percent to the Agency, with 25 percent remaining with the taxing entities appears reasonable. The following table shows the additional property tax revenues that the taxing entities will receive, assuming 25 percent of incremental tax revenues for a period of 20 years. The additional amount is projected to be over $58 million. Incremental Tax Revenues to Taxing Entities Total — 20 Years NPV* — 20 Years Salt Lake County $9,258,975 $5,287,005 Multicounty Assessing & Collecting Levy $41,372 $23,624 County Assessing & Collecting Levy $1,009,468 $576,421 Salt Lake City School District $23,780,424 $13,578,957 Salt Lake City $17,731,889 $10,125,158 Salt Lake Library $3,450,396 $1,970,224 Salt Lake Metropolitan Water District $1,344,579 $767,773 1 The base year taxable value of the project area is $735,791. 6 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis Incremental Tax Revenues to Taxing Entities Total — 20 Years NPV* — 20 Years Central Utah Water Conservancy District $1,654,866 $944,952 TOTAL $58,271,969 $33,274,114 *Net present value discounted at a rate of 4 percent Efforts to Maximize Private investment Private investment in the area, for real property alone, is anticipated to reach nearly $3.6 billion within 35 years. This represents a substantial investment in an area of the Salt Lake Valley that is currently undeveloped and that deals with significant construction concerns, most notably the high water levels, soil stability and lack of infrastructure. In an effort to increase private investment in the area, the Redevelopment Agency is proposing the creation of a CRA to assist with the extraordinary costs of construction that negatively impact the attractiveness of the area to developers. The amount to be contributed to the Agency is estimated at $174,815,907. Therefore, this represents a ratio of 20:1 of private investment to public investment. Rationale for Use of Project Area Funds — Whether the Proposed Project Area Development Might Reasonably Be Expected to Occur in the Foreseeable Future Solely Through Private Investment Development within the proposed Project Area is unlikely to take place within the next ten years without some sort of public assistance. The rationale for the use of tax increment funds in the area is due to the extraordinary costs of construction associated with the high water table and lack of infrastructure in the area. By assisting with these concerns, much of the present uncertainty expressed by developers would be mitigated and the area would become more attractive for development. As the following map shows, there are a considerable amount of lowland areas within the general area. This adds uncertainty, time and cost to the construction process. 7 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA 1 DRAFT Market and Benefits Analysis FIGURE 2: MAP OF LOWLANDS IN NORTHWFST QUADRANT AREA ©0 There is also some uncertainty regarding access to utilities and the placement of future infrastructure in the area. Preliminary plans indicate that the State of Utah will lead the construction effort for two roadway/transmission corridors, one running north from 1-80 to the prison site and the other running west from the International Center to the prison site. It is anticipated that the State will cover the upfront costs of street and baseline water/sewer infrastructure. In anticipation of future development, Salt Lake City may allocate funding to cover the difference between the cost of baseline water/sewer infrastructure and a higher capacity system, thereby establishing a backbone system for the study area. Tax increment may be utilized to cover the cost of street and public utility improvements that lead from this backbone system to developable sites. Estimate of Total Amount of Project Area Funds the Agency Intends to Spend on Project Area Development and Length of Time Over Which the Project Area Funds Will Be Spent Because of the extremely high costs associated with placing backbone infrastructure in this area, as well the uncertainties with the soil stability in some areas, the Redevelopment Agency anticipates the need for 75 percent of tax increment for a period of 20 years. The tax increment projections shown below assume completion of major roads and utilities. Assuming a 20-year timeframe, with 75 percent of Zions Public Finance, Inc. December 2017 8 Salt Lake City Northwest Quadrant CRA 1 DRAFT Market and Benefits Analysis ©Q increment flowing to the Agency, the Agency would receive a total of nearly $175 million with a net present value (NPV) of roughly $100 million. Incremental Tax Revenues to Agency Salt Lake County Multicounty Assessing & Collecting Levy County Assessing & Collecting Levy Salt Lake City School District Salt Lake City Salt Lake Library Salt Lake Metropolitan Water District Central Utah Water Conservancy District TOTAL Beneficial Influences on the Community's Tax Base Total, 20 Years NPV, 20 Years $27,776,926 $15,861,016 $124,115 $70,871 $3,028,405 $1,729,262 $71,341,273 $40,736,871 $53,195,668 $30,375,475 $10,351,187 $5,910,673 $4,033,736 $2,303,320 $4,964,598 $2,834,855 $174,815,907 $99,822,343 The current taxable value of the project area is $735,791 (see list of attached parcels in Appendix A) or an average of $95.64 per acre.2 With the proposed development, the average taxable value per acre is projected to increase to $464,668 — an increase of roughly 485,751 percent. The following table summarizes the increases in real property taxable value projected at different time periods using the assumptions for absorption and average values discussed previously in this analysis. TABLE 11: INCREMENTAL PROPERTY Tcvx VALUE Year Taxable Value 5 $226,457,109 10 $700,177,676 15 $1,293,827,500 20 $1,893,473,788 25 $ 2,493,120, 075 30 $3,092,766,363 35 $3,574,881,978 Increase over Current Value $225,721,318 $699,441,885 $1,293,091,710 $1,892,737,997 $2,492,384,285 $3,092,030,572 $3,574,146,187 The project area is located in Tax Districts 13E and 13F. The two districts have the following taxing entities, with the following tax rates:3 Taxing Entity Salt Lake County Tax Rate % of Total 0.002238 16% 2 Based on 7,693.41 acres in the project area. 3 Tax District 13E accounts for 942.52 acres in the project area, while Tax District 13F accounts for 6,750.89 acres. There is one difference between the two tax districts. 13E includes the Magna Mosquito Abatement District while 13F does not. The Magna Mosquito Abatement District is not included in the analysis as much of the area located in Tax District 13E is undevelopable and the impacts of the Mosquito Abatement District would be minimal. 9 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis Taxing Entity Tax Rate Multicounty Assessing & Collecting Levy 0.00001 0% County Assessing & Collecting Levy 0.000244 2% Salt Lake City School District 0.005748 41% Salt Lake City 0.004286 30% Salt Lake Library 0.000834 6% Salt Lake Metropolitan Water District 0.000325 2% Central Utah Water Conservancy District 0.0004 3% TOTAL 0.014085 100% % of Total Therefore, 41 percent of the increased tax revenues would benefit the Salt Lake City School District, 30 percent would benefit Salt Lake City and 16 percent would benefit Salt Lake County. Therefore, there are significant benefits to the tax base of the community from creating a project area. Associated Business and Economic Activity the Proposed Project Area Development Will Likely Stimulate Full -Time Job Creation. The proposed development will create jobs in the study area. The number of jobs created will vary significantly by type, as shown in the table below, taken directly from the JLL study. OAVERAGE BUILDING SQUARE FEET PER EMPLOYEE Development Type Square Feet per Employee Light Industrial 2,000 Flex Office 500 Retail 500 Hotel 0.5 employees per room Using both the total square feet projections of JLL, and JLL's estimate of the number of square feet per employee, nearly 32,000jobs are created in the study area. This is a significant number. Total employment in Salt Lake County was 712,912 in October 2017.4 Therefore, the job projections for the project area represent 4.5 percent of the current workforce in the County. 3.4: PROJECTED JOB CREATION — 35 YEA ;= SF per Square Feet per Employee Employee/Employees per Total SF Total Jobs Room Light Industrial 2,000 34,312,582 17,156 Flex Office 500 7,254,599 14,509 Retail 500 85,327 171 Hotel (per Room) 0.5 115 58 TOTAL 31,894 'Source: https://jobs.utah.gov/wi/press/2001press/ratecurrent.pdf 10 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis At the present time, average wages for available jobs in the Northwest Quadrant (including the International Center and south of 1-80) are between $42,000 to $50,000.5 TABLE 15: PROJECTE Year 5 Light Industrial Flex Office Retail Hotel TOTAL © 0 Year 10 Year 20 Year 30 1,012 3,296 9,050 14,833 856 2,788 7,654 12,544 10 33 90 148 58 58 58 58 1,936 6,174 16,852 27,582 Assuming an average wage of $50,000, the following wages would be paid annually in the timeframes shown below: TABLE 16: PROJECTED ANNUAL WAGES PAID IN SELECTED YEARS Wages -- Jobs Wages Paid in That Year Year 5 1,936 $96,779,109 Year 10 Year 20 Year 30 6,174 16,852 27,582 $308,714,911 $842,578,514 $1,379,124,848 With the wages paid, these employees will create additional jobs in the community through their purchases for food, entertainment, housing, transportation, education, etc. Construction Job Creation. In addition to full-time jobs created in the study area, there will be a significant number of construction jobs created over a long period of time as absorption takes place in this area. The average construction wage is roughly $50,000 per year.' With benefits and other costs, this analysis uses an average construction job cost of $75,000. Labor costs represent approximately 40 percent of construction expenses, with the remaining 60 percent mainly allocated for construction supplies, and with some room for overhead and profit. This analysis assumes that 40 percent of the projected construction investment per year will be spent on construction labor and that the number of construction jobs created per year will vary depending on the level of development taking place in that year. Given the absorption projections shown earlier in this report, it is assumed that the area will average 460 construction jobs per year,' with some years higher and other years lower. As the table below indicates, projected jobs are based on average burdened labor of $75,000 per employee, with construction labor estimated at 40 percent of new construction costs. The number of jobs created and wages paid in given years, is shown in the table below. 'Source: Job Search databases, multiple listing services and active brokers 6 Utah Department of Workforce Services Construction jobs in the early years are much lower than construction jobs in later years, as absorption is projected to increase over time. Therefore, the average of 381 jobs per year is much more reflective of later years, as this analysis considers development through 2050. The average number of jobs in the first three years is only 30. 11 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis TABLE 17: PROJECTED JOBS AND WAGES PAID ©0 Year 5 Year 10 Year 20 Year 30 Construction Cost $55,721,852 $91,181,212 $101,312,458 $101,312,458 Construction Wages Paid $22,288,741 $36,472,485 $40,524,983 $40,524,983 Construction Jobs 297 486 540 540 Whether Adoption of the Proposed Community Reinvestment Project Area Plan is Necessary and Appropriate to Undertake the Proposed Project Area Development The creation of the proposed Community Reinvestment Project Area Plan is necessary and appropriate for the following reasons: • There are significant infrastructure issues (landfill remediation, uncertainty regarding access to utilities, and lowlands with high water tables) that make the area currently unattractive to developers • The creation of a Project Area with remediation of the above -listed problems will generate significant economic development and increased property tax base • The development that will take place in the area will create a significant number of new jobs • Expansion of the Salt Lake City International Airport will create significant development opportunities in the area if a well -planned area, with good infrastructure, is available • This area forms a gateway from the west, along 1-80, for visitors entering Salt Lake City, the State's capitol city. 12 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest quadrant CRA 1 DRAFT Market and Benefits Analysis 8 0 Appendix A TABLE 18: PARCELS IN PROJECT AREA Parcel ID Owner Name Property Location 7094000020000 GILLMOR, EDWARD L JR 2698 N 8800 W 7094000044002 GILLMOR, EDWARD L, JR 2698 N 8800 W 7152000050000 SALT LAKE CITY CORPORATION 2698 N 8800 W 7154000040000 SALT LAKE CITY CORPORATION 2698 N 8800 W 7161000020000 KENNECOTT UTAH COPPER LLC 2698 N 8800 W 7162000010000 SIV GILLMOR PROPERTIES, LLC 2698 N 8800 W 7171000030000 EPPERSON ASSOCIATES, LLC 2698 N 8800 W 7173000020000 EPPERSON ASSOCIATES, LLC 2698 N 8800 W 7173000030000 KENNECOTT UTAH COPPER 2698 N 8800 W 7174000020000 EPPERSON ASSOCIATES, LLC 2698 N 8800 W 7201000010000 KENNECOTT UTAH COPPER 2698 N 8800 W 7201000020000 EPPERSON ASSOCIATES, LLC 2698 N 8800 W 7202000030000 MOREHOUSE, RICHARD M & 2698 N 8800 W 7203000010000 EPPERSON ASSOCIATES, LLC 2698 N 8800 W 7223000050000 KENNECOTT UTAH COPPER LLC 6901 W IEIGHTYWEST FWY 7223000060000 DIVERSIFIED HABITATS 1 LLC 6901 W IEIGHTYWEST FWY 7223000070000 G-BAR VENTURES, LLC 2698 N 8800 W 7223000080000 GILLMOR, EDWARD L, JR 2698 N 8800 W 7231000180000 SALT LAKE CITY CORPORATION 2698 N 8800 W 7231000190000 SALT LAKE CITY CORPORATION 2698 N 8800 W 7233000034001 SIV GILLMOR PROPERTIES, LLC 2698 N 8800 W 7234000040000 G-BAR VENTURES, LLC 850 N 5600 W 7251000120000 SALT LAKE CITY CORPORATION & 780 N 5600 W 7261000080000 KENNECOTT UTAH COPPER, LLC 6620 W 700 N 7262000010000 G-BAR VENTURES, LLC 850 N 5600 W 7262000030000 SUBURBAN LAND RESERVE, INC 718 N 5600 W 7262760010000 G-BAR VENTURES, LLC 850 N 5600 W 7264000010000 SUBURBAN LAND RESERVE INC 775 N 5600 W 7264000024001 SUBURBAN LAND RESERVE, INC 695 N JOHN GLENN RD 7264000024002 SUBURBAN LAND RESERVE, INC 695 N JOHN GLENN RD 7264260010000 G-BAR VENTURES, LLC 850 N 5600 W 7271000030000 G-BAR VENTURES, LLC 2698 N 8800 W 7271000040000 GILLMOR, EDWARD L, JR 2698 N 8800 W 7274000020000 KENNECOTT UTAH COPPER LLC 6680 W 700 N 7291000030000 EPPERSON ASSOCIATES, LLC 8306 W 700 N 7292000010000 EPPERSON ASSOCIATES LLC 8306 W 700 N 7321000010000 BONNEVILLE INTERNATIONAL CORP 550 N 8800 W 13 Zions Public Finance, Inc. December 2017 Salt Lake City Northwest Quadrant CRA I DRAFT Market and Benefits Analysis Parcel ID 7321000030000 7321000040000 7322000030000 7331000050000 7351000170000 7352010050000 7331000010000 7341000010000 7342000010000 7342000020000 7342000030000 7342000040000 7342000050000 Owner Name EPPERSON ASSOCIATES, LLC EPPERSON ASSOCIATES, LLC EPPERSON ASSOCIATES LLC EPPERSON ASSOCIATES, LLC KENNECOTT UTAH COPPER LLC SALT LAKE CITY CORP Kira ©o Property Location 8306 W 700 N 8700 NORTHTEMPLE FRTG ST 8390 NORTHTEMPLE FRTG ST 7610 NORTHTEMPLE FRTG ST 675 N JOHN GLENN RD 578 N JOHN GLENN RD 14 Zions Public Finance, Inc. December 2017 ©0 Salt Lake City Northwest Quadrant CRA 1 DRAFT Market and Benefits Analysis Appendix B Tax Increment projections spreadsheet © 15 Zions Public Finance, Inc. 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