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Transmittal - 1/28/2022DEPARTMENT of ECONOMIC DEVELOPMENT ERIN MENDENHALL MAYOR BEN KOLENDAR DIRECTOR CITY COUNCIL TRANSMITTAL _____________________________ Date Received: ___________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: ____________ __________________________________________________________________ TO: Salt Lake City Council DATE: January 25, 2022 Dan Dugan, Chair FROM: Benjamin Kolendar, Department of Economic Development SUBJECT: Central Business Investment Area (CBIA) – Future Considerations STAFF CONTACTS: Ben Kolendar - ben.kolendar@slcgov.com; Lorena Riffo-Jenson – lorena.riffojenson@slcgov.com Jolynn Walz – jolynn.walz@slcgov.com; William Wright – william.wright@slcgov.com DOCUMENT TYPE: Written Briefing RECOMMENDATION: NA BUDGET IMPACT: SAAs are funded through the assessment by property owners. COORDINTATION: Department of Economic Development, Siobhan Locke with The Langdon Group, The Downtown Advisory Board, & Salt Lake City Attorney’s Office, BACKGROUND/DISCUSSION: In July 2021, the City Council adopted the Resolution of Intent to Designate the assessment area for the Central Business Investment Area 2022 (CBIA-22) for downtown Salt Lake City. During that meeting, Council members stated that although it was too late to make any changes to the current Special Assessment Area and process, they tasked the Department of Economic Development (DED) to research and review future holiday light options. Council member Valdemoros asked DED staff to look particularly into the potential of adding holiday lighting along the walkway bridge on North Temple from 400 West to 650 West and along 200 South between Main Street & 200 East. The surrounding properties are unique given that the bridge isn’t directly adjacent to the properties that would be assessed like other assessment areas for holiday lighting. Lisa Shaffer (Jan 28, 2022 14:50 MST)01/28/2022 01/28/2022 The holiday lighting is an additional assessment to property tax within the assessment area. The holiday lighting map can be found here (hyperlink). The assessed rate is $12.79 per linear foot. The 2019 assessment was for $177,318 for the entirety of the downtown for all three years. This assessment area is by linear foot for those properties that receive holiday lighting. Because special assessment areas are not funded by the City’s General Fund, but by property owners that are assessed within an assessment area, the DED coordinated with the Downtown Alliance to engage with property owners to gain insight from their perspective. To help manage this effort, the Department of Economic Development hired Siobhan Locke with The Langdon Group to facilitate a discussion with the Downtown Advisory Board (Board) on January 10, 2022. The Board is compiled of property owners within downtown and the current CBIA-19 area who pay the most in assessments. Additional Holiday Lighting The Board felt that the current holiday lighting was satisfactory, any future holiday lighting needed should be placed strategically, and a more robust conversation would be needed. The two areas suggested by the City Council seemed a bit randomly placed, and the Board felt that there are better ways to determine holiday placement, such as looking into areas like “Gateways to the City” or creating more of a corridor along 200 South. Another issue with the suggested area along the North Temple bridge is that there are no properties to assess to cover the cost of the lighting. Also, the group felt that the current budget to cover costs within the SAA was divided appropriately and they did not want to take from one category to pay for another. Any additional lighting would need an additional funding mechanism such as expanding the current CBIA boundaries or tapping into additional funding sources within the current boundaries such as assessing single-family leased commercial property owners. Below are additional issues or comments that were raised during the holiday lighting discussion. SAA Creation & Expansion In 2016, the Central Business Improvement Area (CBIA) boundaries were expanded. This process was initiated under the City Council’s direction and not at property owners’ request. Any creation or changes to a special assessment area are typically led or have support from the property owners due to a statutory requirement of a minimum of 60% approval. If property owners of 40% or more of the valuation in area boundaries protest the creation of or changes to the SAA, the area cannot be created or changed, per Utah Code. 11-42-102. DEFINITIONS. (1) As used in this chapter: (a) "Adequate protests" means, for all proposed assessment areas except sewer assessment areas, timely filed, written protests under Section 11-42-203 that represent at least 40% of the frontage, area, taxable value, fair market value, lots, number of connections, or equivalent residential units of the property proposed to be assessed, according to the same assessment method by which the assessment is proposed to be levied, after eliminating: 11-42-206. Public meeting -- Adoption of a resolution or ordinance regarding a proposed assessment area -- Designation prohibited if adequate protests filed -- Recording of resolution or ordinance and notice of proposed assessment. (1) (a) After holding a public hearing under Section 11-42-204 and within 15 days after the day that the protest period expires in accordance with Subsection 11-42-203(1), the governing body shall: (i) count the written protests filed or withdrawn in accordance with Section 11-42-203 and calculate whether adequate protests have been filed; and (ii) hold a public meeting to announce the protest tally and whether adequate protests have been filed. (b) If adequate protests are not filed, the governing body at the public meeting may adopt a resolution or ordinance: (i) abandoning the proposal to designate an assessment area; or (ii) designating an assessment area as described in the notice under Section 11-42-202 or with the changes made as authorized under Subsection (1)(d). (c) If adequate protests are filed, the governing body at the public meeting: (i) may not adopt a resolution or ordinance designating the assessment area; and (ii) may adopt a resolution or ordinance to abandon the proposal to designate the assessment area. Board members felt that expanding the current CBIA boundaries to 700 South makes sense and an expansion to 900 South could work, but that it should be sometime into the future. Board members stated that expanding to the Granary Area could be an option, but sentiments of the property owners should be taken into consideration. Granary Area property owners may have different needs and priorities than property owners in the CBIA. Within those discussions it needs to be determined if the Granary Area should be its own special assessment area or if the current CBIA area should be expanded to include it. Single Owner - Multi-Family Leased Structures Board members felt there should be a focus on maximizing opportunities within the current CBIA boundaries first before looking at any boundary expansion. One option would be looking into whether single owners of multi-family structures, such as apartments, should be or can be included in future assessments. Currently, these property owners who fall within the boundaries may receive the benefits of an SAA, but they do not actually contribute financially because they are not being assessed. Property Owner Priorities: The following items below are additional topics discussed during the facilitated Board meeting.  Boundary discussion  Clean streets  Safe streets  Utilities working well  Ambassador program  Police on bikes  Open Streets  Urban Forestry  Holiday lighting Top priorities from the list and what Board members want to see funded through the SAA are:  Safe streets  Ambassador Program  Open Streets  Police on bikes All other items in the list were felt to be a secondary priority. Attachments:  CBIA Lighting Map with proposed areas  The Langdon Group Report 200 S 400 S 300 S 500 S600 W400 W300 W200 WState 200 E300 E500 W100 S Main C B A 1st North Temple 800 W2nd 3rd South Temple West Temple I-15 Northbound I-15 Southbound Rio Grande 765 WI-80 EB I-15 NB I-15 NB I-80 WB 200 N 50 N 700 W870 WI-80 EB I-15 SB Market Edison Regent Jeremy Canyon Plum Jackson Pierpont Emeril I-15 SB I-80 WB Floral Exchange I-15 SB 400 S Off Blair Social Hall Pacific Gallivan Dubei Eccles Poplar Wayne I -80 WB 5 0 0 S O nI-15 NB 400 S On Moffatt I -15SB400SOnDelmar I -15NB400SOf f Orpheum Arnold Cactus Marguerite I-80EBI-15SB600SOffCanyon (E) Peasant Shelmerdine Woodbine I-15SB400SOff E B Weechquootee Butterworth I-1 5 NB400SOnEB300 S South Temple Main 300 S Jackson Pacific 300 S 200 N 700 W100 S 500 S Jeremy Pierpont 100 S 500 W700 WJeremy 500 S Pacific Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community Current CBIA Map 405001,000 1,500 2,000250Feet1 inch = 300 feet Drawn By: K. BellSalt Lake City CorporationInformation Management ServicesDecember 2021 Legend Possib le L igh tin g Holida y Lig hting S tree ts CBIA Lig hting B ou nda ry        Downtown Alliance  Advisory Board  Facilitated Meeting  JANUARY 10, 2021 ‐ MEETING SUMMARY  PREPARED BY THE LANGDON GROUP        Report Prepared by The Langdon Group                                                                                                         January 18, 2022     DOWNTOWN ALLIANCE ADVISORY BOARD MEETING AGENDA   January 10, 2022; 10 am – 12 pm  Virtual Meeting    Meeting Summary    Meeting Purpose and Goals – To talk directly with property owners within the Downtown Alliance (DTA)  Special Assessment Area (SAA) – via their representatives on the DTA Advisory Board – to understand  their high‐level priorities for allocating their funding through 2025 and to gather feedback on a few  items that community members and staff have proposed over time.  Meeting Planning/Process – Salt Lake City Economic Development asked a third‐party facilitator to  come in to assist with this meeting to ensure a neutral approach and that no SLC staff member could be  seen as advocating for particular outcomes or programs and so that participants could feel free to share  feedback and thoughts regardless of their relationship with the city or its staff.   Originally planned to be an in‐person meeting at the standing meeting of this group at the Downtown  Alliance offices, COVID restrictions and rising case counts warranted a pivot to an online Zoom platform  for safety reasons.  Meeting Agenda  1. Meeting Purpose and Goals  Discussion  2. Agenda Review  3. Presentations/Discussion   a. High level overview of how  funds are allocated through  the SAA process  b. Holiday lighting discussion  (map was shown for  discussion – see fig 1. Below)  c. Property Owners priorities  5 MINUTE BREAK   4. Review and prioritize discussion  items  5. Roll call and vote  6. Review Next Steps and conclude meeting         Figure 1 ‐ Downtown Alliance Holiday Lighting Area     Report Prepared by The Langdon Group                                                                                                         January 18, 2022   Meeting Notes and Key Takeaways    Attendees  Downtown Alliance Advisory Board Members Salt Lake City Leadership and Staff  Dee Brewer, Executive Director DTA  Nico Priskos, Internet Properties & Chair of DTA  Lloyd Allen, CBRE    Holly Yocom, Salt Lake County Community  Services Director  Linda Wardell, City Creek  Derek Miller, President and CEO of SL Chamber  Chloe Gehrke, Vector Management  Chris Kirk, Colliers & Co‐Chair of DTA   Bruce Bingham, Hamilton Partners  Kim Abrams, Goldman Sachs & Past Chair of DTA  Mayor Erin Mendenhall   Ben Kolendar – Director of Economic Development  William Wright – Project Manager, Economic  Development  Jolynn Walz – Executive Manager, Economic  Development        Siobhan Locke – The Langdon Group, facilitator    Meeting Notes  Holiday Lighting Discussion Summary  Existing Holiday Lighting Areas  ‐ Overall, most members felt that the current holiday lighting plan was sufficient, and costs are  covered in the current budget.   People also expressed that additions to holiday lighting might be best linked to increased funding  within the current boundaries and/or to additional funding coming in through widening the  boundaries. Suggested New Areas  ‐ North Temple Bridge ‐ Due to the bridge not being associated with any commercial properties  there is nothing to assess and no property owners to cover the additional expense of the holiday  lighting. A funding source would need to be determined in order to add lighting to the bridge.   o If we were to shift our thinking to highlighting “gateways into the city”, the group  thought there could be merit to that but that the funding would have to be more of a  conversation because there might be some big pushback if residential and industrial  property owners were asked to foot the bill  ‐ 200 S. (between State and 200 E.) ‐ might be a good fit but really, the areas that feel  “intentional” and “city‐sponsored” are the areas like Main and State that are continuous –  perhaps looking into a 200 S. holiday lighting corridor would have more merit than looking  block‐by‐block      Report Prepared by The Langdon Group                                                                                                         January 18, 2022       Property Owner Priorities (as identified by the members of the Advisory Board)   Other Priorities Brainstorm  ‐ Boundary discussion   ‐ Clean streets  ‐ Safe Streets  ‐ Utilities working well  ‐ Ambassador program   ‐ Police on bikes   ‐ Open Streets   ‐ Urban Forestry   ‐ Holiday lighting    Other Priorities Discussion  Boundary Expansion ‐ looking at expanding to 700 S makes sense (900 maybe at some future time),  granary makes sense for the most part ‐ depending on the sentiments of the property owners, consider  scheduling a tour and discussion with these folks. Granary area property owners may have different  needs and wants than property owners in the core of downtown.   Focus on Maximizing Opportunities within Boundaries First ‐ before Looking at boundary expansion by  looking at assessing Leased Multi‐Family Residential   Ambassador program ‐ this program is a huge help and warrants expansion (in current and new areas),  not just more ambassadors but the right ones – maybe need to discuss recruitment for this later  Open Streets ‐ looking into making that permanent and – the barriers now aren’t pretty – focus on  beautifying when/if it becomes permanent  Urban Forestry – more trees the better – looking into this further may be supported  Priorities Ranking Discussion Summary  The Facilitator went around to each participant to ask (1) does the list of priorities cover everything that  is important to you in this conversation? (2) what would you put at the top of your list if you were to  rank these items?  1. Participants all confirmed the list reflected everything they would want to see funding through  the SAA  2. Overall, the group wanted to see the following items brought to the top of a priority list  a. Safe Streets, Ambassador Program, Open Streets, Police on Bikes  And, thought these were still important but perhaps lower down on the list      Report Prepared by The Langdon Group                                                                                                         January 18, 2022   b. Clean streets, utilities working well, Holiday lighting, boundary expansion, urban forestry    Associated Thoughts for Consideration raised by the property owners  ‐ It can be challenging to think about the future into 2025 – right now the current allocations feel  comfortable especially with the uncertainty in the future  ‐ Reallocation thoughts  o Q. Can we move to further support ambassador program without adding to the total  budget?   o A. We’ve looked at this closely – and we have things appropriately allocated – we  don’t want to take away from the other things we’ve funded. Adjusting the  percentages wouldn’t be great because of all the thought that has gone into the  investments to‐date (many contribute to safety that may not seem to on their face) –  probably looking at increasing the funding base – expanding boundaries, etc. would be  best