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Transmittal - 3/8/2022 DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 ERIN MENDENHALL Mayor MARY BETH THOMPSON Chief Financial Officer CITY COUNCIL TRANSMITTAL ___________________________________ Date Received: ________________ Rachel Otto, Chief of Staff Date sent to Council: ___________ ______________________________________________________________________________ TO: Salt Lake City RDA Board DATE: February 22, 2022 Ana Valdemoros, RDA Chair FROM: Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Director SUBJECT: RDA Budget Amendment #2, FY2021-22 SPONSOR: NA STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or Mary Beth Thompson (801) 535-6403 or Mike Burns (801) 565-6461 or Danny Walz (801) 535-7209 DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: Review and discuss the proposed First Amendment to the Annual RDA Budget for Fiscal Year 2022. Set public hearing date for adoption of the amendment. BUDGET IMPACT: REVENUE EXPENSE RDA FUND $ 11,773,813.00 $ 13,762,458.00 RDA CIP FUND 0.00 0.00 TOTAL $ 11,773,813.00 $ 13,762,458.00 rachel otto (Feb 22, 2022 21:18 MST)2/23/22 2/23/22 EXECUTIVE SUMMARY: The purpose of the second amendment (“amendment”) is to addresses the following items: 1. True-up TI to be received in the current fiscal year and allocate to current year initiatives. 2. Transfer budget for HTF from HAND to RDA for current fiscal year use. 3. Record receipt of NT project area Overnighter Motel fire insurance proceeds and allocate to cleanup of site. 4. True-up prior year UIPA housing allocation. 5. Reallocated RLF funding to Central Station Property Acquisition. 6. Reallocate PIF Arctic Court Infill Home funding to Marmalade Plaza. A summary spreadsheet document, outlining proposed budget changes is attached. The Administration requests this document be modified based on the decisions of the Board. The budget opening is separated in eight different categories: A. New Budget Items B. Grants for Existing Staff Resources C. Grants for New Staff Resources D. Housekeeping Items E. Grants Requiring No New Staff Resources F. Donations G. Council Consent Agenda Grant Awards I. Council Added Items ATTACHMENTS: A. Resolution B. Budget Amendment #1 Summary Spreadsheet C. RDA Transmittal PUBLIC PROCESS: Public Hearing REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV ꞏ WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 ꞏ FAX 801-535-7245   MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: February 18, 2022 PREPARED BY: Erin Cunningham RE: Preliminary Briefing of RDA Budget Amendment #2, FY 2021-2022 REQUESTED ACTION: Written Briefing BUDGET IMPACTS: The preliminary Second Amendment identifies appropriations for Agency operations and projects across multiple funds. EXECUTIVE SUMMARY: The purpose of the briefing is to provide preliminary budget proposals for the Second Amendment (“Amendment”). The proposed budget changes fall into three main categories: 1. Changes to budgets based on Property Tax Increment projections received from the County. These amounts will be adjusted when the Agency receives the final distribution in March. The proposals below are primarily driven by: a. Fixed expenses that are often percentages of Tax Increment as defined by statutory or contractual obligations or other consistent expenses, such as: i. Taxing Entity Payments ii. Tax Increment Reimbursements iii. Primary Housing Contributions iv. Administrative Expenses v. Operations and Maintenance Expenses b. Discretionary expenses that fall into the following types: i. Holding accounts for programs and projects previously approved by the Board ii. Holding accounts for new programs and projects recommended by the Agency iii. Other expenses specific to needs of the fund 2. Transfer of the Housing Trust Fund currently managed by the Department of Community and Neighborhoods' Housing Stability Division into the Agency’s Housing Development Fund (formerly Housing Development Trust Fund). 3. Reallocation of funds in holding accounts from previous years’ budgets. ANALYSIS & ISSUES: This Budget Amendment provides for adjustments across multiple funds within the Agency budget for Fiscal Year 2022. The adjustments by fund are described below. 1. Tax Increment and Other Revenue Adjustments Central Business District As shown in the table below, increased Tax Increment revenue received in the Central Business District will result in increased Taxing Entity Payments. The remainder of the prosed changes include:  Gallivan Retail Repairs – Sewer line and HVAC repair costs have increased.  Storefront Revitalization – After funding the Gallivan repairs, the Agency is proposing adding the remainder of the funds to this Storefront Revitalization program. This program was funded during the Fiscal Year 2022 budget to provide funding to businesses in CBD to complete building renovation projects. The program will be established as part of an updated Commercial Loan Program that will come before the Board for future consideration. Central Business District Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Tax Increment 27,573,150 1,765,901 🔺 29,339,051  Interest Income 350,000 ‐  350,000  Total Revenue and Other Sources 27,923,150 1,765,901 🔺 29,689,051       Expenses and Other Uses  ‐    Taxing Entity Payments 16,543,890 1,059,540 🔺 17,603,431  TI Reimbursements 1,477,398 ‐  1,477,398  Transfer to Block 70 Debt Service  ‐    Eccles Debt Service Block 70 RDA Match 3,107,740 ‐  3,107,740  Eccles Debt Service Reserve 1,800,000 ‐  1,800,000  Miscellaneous Property Expenses 975,000 ‐  975,000  Parking Ramp Leases 64,355 ‐  64,355  Gallivan Maintenance 523,138 ‐  523,138  Gallivan Programming 250,000 ‐  250,000  Gallivan Administration 340,482 ‐  340,482  Transfer to Administration 2,757,315 ‐  2,757,315  Capital Expenditures {Holding Accounts} ‐  ‐     Storefront Revitalization 83,832 306,360 🔺 390,192  Gallivan Repairs ‐ 400,000 🔺 400,000  Total Expenses and Other Uses 27,923,150 1,765,901 🔺 29,689,051       Total Over / (Under) ‐ ‐  ‐  West Capitol Hill While the West Capitol Hill Project Area is no longer receiving Tax Increment, interest income is expected. During the Fiscal Year 2022 budget, the funds were directed towards Administration. However, given the volatile nature of construction cost during this time, the Agency is proposing setting those funds aside in a holding account specific to projects that are currently underway in the project area. These projects include the 300 West streetscape improvements and construction of the plaza incorporated into the Marmalade library and adjacent housing development. West Capitol Hill Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Tax Increment ‐ ‐  ‐  Interest Income 150,000 ‐  150,000  Total Revenue and Other Sources 150,000 ‐  150,000       Expenses and Other Uses  ‐    Transfer to Administration 150,000 (150,000) 🔻   Capital Expenditures {Holding Accounts} ‐  ‐     West Capitol Hill Projects ‐ 150,000 🔺 150,000  Total Expenses and Other Uses 150,000 ‐  150,000       Total Over / (Under) ‐ ‐  ‐  Depot District The increased Tax Increment revenue received in the Depot District Project Area will result in increased Tax Increment Reimbursement payments, as well as increased contributions to the Primary Housing Fund and Administration. After fulfilling those obligations, the Agency is recommending the creation of a new holding account for Central Station property development on 100 South and adding the remainder of the funds to it. Depot District Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Tax Increment 3,921,164 1,291,500 🔺 5,212,664  Interest Income 200,000 ‐  200,000  Total Revenue and Other Sources 4,121,164 1,291,500 🔺 5,412,664       Expenses and Other Uses ‐  ‐     TI Reimbursements 1,820,977 144,628 🔺 1,965,606  Transfer to Primary Housing Fund 784,233 258,300 🔺 1,042,533  Miscellaneous Property Expenses 120,000 ‐  120,000  Debt Service ‐ ‐    Grant Tower Debt Service 275,600 ‐  275,600  Transfer to Administration 588,175 193,725 🔺 781,900  Capital Expenditures {Holding Accounts} ‐  ‐     Station Center Infrastructure 332,179 ‐  332,179  Environmental Remediation 200,000 ‐  200,000  Central Station (100 S) ‐ 694,847 🔺 694,847  Total Expenses and Other Uses 4,121,163 1,291,500 🔺 5,412,664       Total Over / (Under) ‐ ‐  ‐  Granary District The increased Tax Increment revenue received in the Granary District Project Area will result in increased contributions to the Primary Housing Fund and Administration. The Community/Cultural Initiative is the recommended recipient of the remainder of the funds. This program was funded during the Fiscal Year 2022 budget to support public arts and cultural programming. Agency staff will bring the proposed Community/Cultural Initiative program to the Board for future consideration. Granary District Current  Budget Change  Proposed  Budget  Revenue and Other Sources ‐  ‐     Tax Increment 621,124 360,282 🔺 981,407  Interest Income 45,000 ‐  45,000  Total Revenue and Other Sources 666,124 360,282 🔺 1,026,407                            ‐                             ‐          Expenses and Other Uses                          ‐                             ‐          Transfer to Primary Housing Fund 124,225 72,056 🔺 196,281  Miscellaneous Property Expenses 5,000 ‐  5,000  Transfer to Administration 93,169 54,042 🔺 147,211  Capital Expenditures {Holding Accounts} ‐  ‐     Community/Cultural Initiative 443,731 234,183 🔺 677,915  Total Expenses and Other Uses 666,124 360,282 🔺 1,026,407   ‐  ‐     Total Over / (Under) ‐ ‐  ‐  North Temple The increased Tax Increment revenue received in the North Temple Project Area will result in increased contributions to the Primary Housing Fund, Administration, and the 10% School Construction Fund. The remaining funds are proposed to go to the North Temple Strategic Intervention Fund. North Temple Current  Budget Change  Proposed  Budget  Revenue and Other Sources   Tax Increment 435,346 238,765 🔺 674,112  Interest Income 15,000 ‐  15,000  External Transfers In      Debt Service Fund Class 81 North Temple  Viaduct Bond RDA Reimbursement (One‐time) 1,000,000 ‐  1,000,000  General Fund Investments in  Underserved Neighborhoods Holding Account  (One‐time)  669,138 ‐  669,138  Total Revenue and Other Sources 2,119,484 238,765 🔺 2,358,250   ‐  ‐     Expenses and Other Uses ‐  ‐     Transfer to Primary Housing Fund 87,069 47,753 🔺 134,822  Transfer to Administration 43,535 23,876 🔺 67,411  Capital Expenditures {Holding Accounts} ‐  ‐     10% School Construction Fund  30,474 16,713 🔺 47,188  North Temple Strategic Intervention  Fund  1,958,406 150,422 🔺 2,108,829  Total Expenses and Other Uses 2,119,484 238,765 🔺 2,358,250   ‐  ‐     Total Over / (Under) ‐ ‐  ‐  Block 70 The increased Tax Increment revenue received in the Block 70 Project Area will result in increased Taxing Entity Payments. After the fulfilling that obligation, the Agency recommends adding the remainder of the funds to Regent Street Parking Structure Capital Reserves. This reserve was established to meet potential obligations in the future that are required under the contract with PRI which provides parking for the Eccles Theater. Under the agreement, the Agency is required to contribute towards the maintenance and long-term capital repairs of the parking structure. Block 70 Current  Budget Change  Proposed  Budget  Revenue and Other Sources ‐  ‐     Tax Increment 1,922,323 233,830 🔺 2,156,154  Interest Income ‐ ‐  ‐  Internal Transfers In ‐ ‐    CBD Taxing Entity Payments 4,109,200 ‐  4,109,200  CBD Eccles Debt Service RDA match 3,107,740 ‐  3,107,740  CBD Eccles Debt Service Reserve Account 1,800,000 ‐  1,800,000  Total Revenue and Other Sources 10,939,263 233,831 🔺 11,173,094       Expenses and Other Uses      Taxing Entity Payments 576,697 70,149 🔺 646,846  Eccles Theater Debt Service 8,068,209 ‐  8,068,209  Reserve for Eccles Debt Service 90,617 ‐  90,617  Regent Street Bond Debt Service 1,448,740 ‐  1,448,740  Fundraising Fulfillment 100,000 ‐  100,000  Eccles Theater‐ Operating Reserve for  Ancillary Spaces 475,000 ‐  475,000  Regent Street Maintenance 80,000 ‐  80,000  Capital Expenditures {Holding Accounts} ‐  ‐   ‐  Regent Street Parking Structure Capital  Reserves 100,000 163,681 🔺 263,682  Total Expenses and Other Uses 10,939,263 233,831 🔺 11,173,094        Total Over / (Under) ‐ ‐  ‐  North Temple Viaduct The increased Tax Increment revenue received in the North Temple Viaduct Project Area will result in an increased contribution to Administration. The remainder of the funds are proposed to go the Debt Service Payment to the City. North Temple Viaduct Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Tax Increment 1,181,479 1,431,148 🔺 2,612,628  Interest Income 7,500 ‐  7,500  Total Revenue and Other Sources 1,188,979 1,431,148 🔺 2,620,128   ‐  ‐     Expenses and Other Uses ‐  ‐     Debt Service Payment to Salt Lake City 1,171,257 1,409,681 🔺 2,580,939  Transfer to Administration 17,722 21,467 🔺 39,189  Total Expenses and Other Uses 1,188,979 1,431,148 🔺 2,620,128       Total Over / (Under) ‐ ‐  ‐  Northwest Quadrant The Tax Increment revenue is projected to come in lower than originally budgeted in the Northwest Quadrant. The result will decrease contributions to the Primary Housing Fund and Administration. The remainder of the decrease will impact the Shared Costs reserve account that was established to set aside a portion of 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. Northwest Quadrant Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Tax Increment 1,500,000 (371,125) 🔻 1,128,875  Interest Income ‐ ‐    Total Revenue and Other Sources 1,500,000 (371,125) 🔻 1,128,875       Expenses and Other Uses      TI Reimbursement NWQ Phase I 500,000 ‐  500,000  Transfer to Secondary Housing Fund 350,000 ‐  350,000  Transfer to Primary Housing Fund 150,000 (37,112) 🔻 112,888  Transfer to Administration 150,000 (37,112) 🔻 112,888  Capital Expenditures {Holding Accounts}      Shared Costs 350,000 (296,900) 🔻 53,100  Total Expenses and Other Uses 1,500,000 (371,125) 🔻 1,128,875        Total Over / (Under) ‐ ‐  ‐  Stadler Rail The increased Tax Increment revenue in the Stadler Rail Project Area will result in increased Tax Increment Reimbursements expenses, as well as increased contributions to the Primary Housing Fund and Administration. Stadler Rail Current  Budget Change  Proposed  Budget  Revenue and Other Sources ‐  ‐     Tax Increment 71,000 37,327 🔺 108,327  Interest Income ‐ ‐    Total Revenue and Other Sources 71,000 37,327 🔺 108,327       Expenses and Other Uses      TI Reimbursements 56,800 29,861 🔺 86,662  Transfer to Primary Housing Fund 7,100 3,732 🔺 10,833  Transfer to Administration 7,100 3,732 🔺 10,833  Total Expenses and Other Uses 71,000 37,327 🔺 108,327       Total Over / (Under) ‐ ‐  ‐  State Street As seen in the table below, while not budgeted in Fiscal Year 2022, the County is projecting a significant Tax Increment payment for the State Street Project Area. The current obligations for this fund include contributions to the Primary Housing Fund and Administration. The Agency is proposing splitting the rest of the funds into holding accounts for Infrastructure Improvements ($500K), a Commercial Loan Program ($500K), and Ballpark Strategic Development (remaining funds not allocated). State Street Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Tax Increment ‐ 3,288,979 🔺 3,288,979  Interest Income ‐ ‐  ‐  Total Revenue and Other Sources ‐ 3,288,979 🔺 3,288,979       Expenses and Other Uses      Transfer to Primary Housing Fund  (Note: School District contribution must be set aside for  family and workforce housing)  ‐ 328,897 🔺 328,898  Transfer to Administration ‐ 328,897 🔺 328,898  Capital Expenditures {Holding Accounts}      Infrastructure Improvements ‐ 500,000 🔺 500,000  Commercial Loan Program ‐ 500,000 🔺 500,000  Ballpark Strategic Development ‐ 1,631,183 🔺 1,631,183  Total Expenses and Other Uses ‐ 3,288,979 🔺 3,288,979    Total Over / (Under) ‐ ‐  ‐  9 Line Also not in the Fiscal Year 2022 budget, the County is projecting the following Tax Increment revenue in the 9 Line Project Area. According to the Interlocal Agreement, the Agency shall reimburse 50% of the County’s Tax Increment contribution, as well as 6% of their contribution for County Administration and Operations expenses. The other obligations for this fund include contributions to the Primary Housing Fund and Administration. The Agency is proposing splitting the rest of the funds into holding accounts for the Accessory Dwelling Unit Program ($300K), and Property Acquisition (remaining funds not allocated). 9 Line Current  Budget Change  Proposed  Budget  Revenue and Other Sources ‐  ‐     Tax Increment ‐ 1,847,159 🔺 1,847,159  Interest Income ‐ ‐  ‐  Total Revenue and Other Sources ‐ 1,847,159 🔺 1,847,159       Expenses and Other Uses      Taxing Entity Payments ‐ 224,966 🔺 224,966  County Administration and Operations ‐ 26,995 🔺 26,996  Transfer to Primary Housing Fund  (Note: School District contribution must be set aside for  family and workforce housing)  ‐ 184,715 🔺 184,716  Transfer to Administration ‐ 147,772 🔺 147,773  Capital Expenditures {Holding Accounts}    Property Acquisition ‐ 962,708 🔺 962,708  Accessory Dwelling Unit Program ‐ 300,000 🔺 300,000  Total Expenses and Other Uses ‐ 1,847,159 🔺 1,847,159    Total Over / (Under) ‐ ‐  ‐  Program Income Fund A fire during the demolition of the Overnighter Motel resulted in $100K of remediation expenses not budgeted in the Program Income Fund during the Fiscal Year 2022 Budget. An insurance claim was filed but has a $50K deductible. The resulting impact to the fund’s budget is the receipt of the $50K insurance claim reimbursement, and the use fund balance to cover the other $50K of the total remediation expense. The difference will be absorbed by fund balance. Program Income Fund Current  Budget Change  Proposed  Budget  Revenue and Other Sources        Parking Structure Income  1,242,335 ‐  1,242,335  Rents 215,700 ‐  215,700  Interest Income  250,000 ‐  250,000  Loan Repayments  28,000 ‐  28,000  Interest on Loans 6,500 ‐  6,500  Insurance Reimbursement ‐ 50,000 🔺 50,000  Internal Transfers In ‐ ‐  ‐  Use of North Temple Catalytic Project  Holding Account (One‐time) ‐  ‐   ‐  Total Revenue and Other Sources 1,742,535 50,000 🔺 1,792,535       Expenses and Other Uses      Professional Services 300,000 ‐  300,000  Miscellaneous Property Expense  300,000 100,000 🔺 400,000  Marketing and Sales  25,000 ‐  25,000  Transfer Out to North Temple Project Area  (One‐time) ‐  ‐   ‐  Capital Expenditures {Holding Accounts}      Gallivan Repairs 250,000 ‐  250,000  Commercial Revitalization Program 667,535 ‐  667,535  Sustainability Technical Assistance  Program 200,000 ‐  200,000  Total Expenses and Other Uses 1,742,535 100,000 🔺 1,842,535         Total Over / (Under) ‐ (50,000) 🔻 (50,000)  Primary Housing Fund The changes to the Primary Housing Fund contributions from each project area are in the table below. The Agency is recommending the remainder of the funds be added to the Housing Development Loan Program, a permanent and annually renewable program that consolidates and centralizes resources for the development and preservation of affordable housing. Loans provided through the HDLP shall be funded directly from an individual fund source, with revenues, expenditures, interest, payments and repayments accounted for from the fund source to comply with applicable State and Local statutes. Primary Housing Fund Current  Budget Change  Proposed  Budget  Revenue and Other Sources      Interest Income 225,000 ‐  225,000  Loan Repayments  51,000 ‐  51,000  Interest on Loans 70,000 ‐  70,000  Internal Transfers In ‐ ‐  ‐  Depot District 784,233 258,300 🔺 1,042,533  Granary District 124,225 72,056 🔺 196,281  North Temple 87,069 47,753 🔺 134,822  Northwest Quadrant 150,000 (37,112) 🔻 112,888  State Street ‐ 328,897 🔺 328,898  9 Line ‐ 184,715 🔺 184,716  Total Revenue and Other Sources 1,491,527 854,610 🔺 2,346,138       Expenses and Other Uses      Transfer Out to North Temple Project Area  (One‐time) ‐  ‐   ‐  Capital Expenditures {Holding Accounts}      Housing Development Loan Program 491,527 854,610 🔺 1,346,138  North Temple Strategic Intervention  Fund 1,000,000 ‐  1,000,000  Total Expenses and Other Uses 1,491,527 854,610 🔺 2,346,138    Total Over / (Under) ‐ ‐  ‐  Westside Community Initiative Fund The UIPA Housing Allocation was deposited in the Westside Community Initiative Fund in June 2021, after the adoption of the Fiscal Year 2022 budget. The Agency is proposing to shift the funds from the Westside Urban Land Fund into the Housing Development Loan Program, as well as retain 15% in fund balance. This shift aligns with the newly amended Housing Allocation Funds Policy and will still be utilized as part of the Westside Community Initiative priorities. Westside Community Initiative Fund  (Northwest Quadrant Housing Fund)  Current  Budget Change  Proposed  Budget  Revenue and Other Sources        UIPA Housing Allocation 250,000 159,031 🔺 409,031  Interest Income ‐ ‐  ‐  Total Revenue and Other Sources 250,000 159,031 🔺 409,031       Expenses and Other Uses      Capital Expenditures {Holding Accounts} ‐  ‐     West Side Urban Land Fund 250,000 (250,000) 🔻 ‐  Housing Development Loan Program  347,676 🔺 347,676  Total Expenses and Other Uses 250,000 97,676 🔺 347,676   ‐  ‐     Total Over / (Under) ‐ 61,354 🔺 61,355  Administration The impact of the Tax Increment and other revenue adjustments to the Administration Fund detailed above can be seen in the table below, under Internal Transfers In. Expenses have been adjusted to include an expected increase in Administrative Fees the Agency will receive from the City. In addition, the Charges and Services line description has been adjusted for increased expenses that include a $25K RAISE Grant Contribution, a 900 S Improvements project shortfall of $155K, and $100K for Ballpark development efforts. Administration Current  Budget Change  Proposed  Budget  Revenue and Other Sources        Internal Transfers In      Revenue and Other Sources 2,757,315 ‐  2,757,315  West Capitol Hill 150,000 (150,000) 🔻 ‐  West Temple Gateway 50,000 ‐  50,000  Depot District 588,175 193,725 🔺 781,900  Granary District 93,169 54,042 🔺 147,211  North Temple 43,535 23,876 🔺 67,411  Block 70 ‐  ‐   ‐  North Temple Viaduct 17,722 21,467 🔺 39,189  Northwest Quadrant 150,000 (37,112) 🔻 112,888  Stadler Rail 7,100 3,732 🔺 10,833  State Street ‐ 328,897 🔺 328,898  9 Line ‐ 147,772 🔺 147,773  Program Income Fund ‐  ‐   ‐  Total Revenue and Other Sources 3,857,015 586,402 🔺 4,443,417       Expenses and Other Uses        RDA Personnel 2,254,632 ‐  2,254,632  Administrative Fees 939,683 150,000 🔺 1,089,683  Operating & Maintenance 360,000 ‐  360,000  Charges and Services 202,700 436,402 🔺 639,102  Furniture, Fixtures and Equipment 100,000 ‐  100,000  Total Expenses and Other Uses 3,857,015 586,402 🔺 4,443,417       Total Over / (Under) ‐ ‐  ‐  2. Transfer of Housing Trust Fund Housing Development Fund The Housing Development Fund (formerly known as the Housing Development Trust Fund) was established in the Fiscal Year 2020. The intent of establishing this fund was to evaluate further codifying the consolidation of housing development loan programs by ordinance, to confirm that all the City's housing development loan funds, regardless of funding source and regardless of which entity administered the program, are deployed in a transparent manner. Funding Our Future Land Discounts and Finance funds have been transferred into this fund each fiscal year since its establishment, with the intent of transferring the Housing Trust Fund currently managed by the Department of Community and Neighborhoods' Housing Stability Division into the Agency’s Housing Development Fund. Finance has recently finished reconciling the loans in the Housing Trust Fund in preparation of the transfer and will prepare a Budget Amendment Ordinance to move all assets and liabilities to the Agency. The expected fund balance available to lend is approximately $2 million, and it is proposed to add the full amount to the Housing Development Loan Program, as referenced in the table below. When the final Second Amendment is presented, the corresponding Budget Resolution will be presented for approval. Once the Ordinance and Amendments are approved, the administrative tasks of transferring the management of the loans may proceed. Housing Development Fund Current  Budget Change  Proposed  Budget  Revenue and Other Sources ‐  ‐     Funding Our Future Land Discounts and  Financing 2,590,000 ‐  2,590,000  Transfer from Housing Trust Fund ‐ 2,000,000 🔺 2,000,000  Total Revenue and Other Sources 2,590,000 2,000,000 🔺 4,590,000   ‐  ‐     Expenses and Other Uses ‐  ‐     Capital Expenditures {Holding Accounts} ‐  ‐     Housing Development Loan Program 2,590,000 2,000,000 🔺 4,590,000  Total Expenses and Other Uses 2,590,000 2,000,000 🔺 4,590,000   ‐  ‐     Total Over / (Under) ‐ ‐  ‐  3. Reallocation Central Station Property Acquisition The Agency currently owns approximately 4 acres of land in what is referred to as Central Station located at approximately 600 West and 100 South. As previously directed by the Board, RDA staff is working to acquire additional property for future development. This budget amendment would reallocate $550,000 from the RDA’s Revolving Loan Fund to purchase this property. The intention would be to repay this contribution from the proceeds or lease payments as part of the future project. Budget Impact: The proposed change would reduce the Revolving Loan Fund’s current available to lend balance from $5,403,577.35 to 4,853,577.35. West Capitol Hill Projects In addition to the budget reallocation requests in the West Capitol Hill Project Area above, the Agency is requesting to reallocate $338,141of funds previously set aside in the Program Income Fund for the Arctic Court Infill Home project to projects in West Capitol Hill, as a contingency for expected increases in construction costs. Budget Impact: The Program Income Fund for the Arctic Court Infill Home project would be reduced to zero. It is anticipated the Agency would request the use of housing funds in the future to finish the infill housing project. PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2021-2022 Budget. 2. Approval of the Fiscal Year 2021-2022 Budget Amendment #1. ATTACHMENTS: N/A 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ Second Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2021-2022 WHEREAS, on June 15, 2020, the RDA Board of Directors (“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA, as approved, ratified and finalized by the RDA Board on June 15, 2021. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the budget of the RDA. 3. Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this ___ day of ______________, 2021, to be effective upon adoption. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ 2 The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. _________________________________ Erin Mendenhall, Executive Director Attest: _________________________ City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ Second Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2021-2022 WHEREAS, on June 15, 2020, the RDA Board of Directors (“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA, as approved, ratified and finalized by the RDA Board on June 15, 2021. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the budget of the RDA. 3. Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this ___ day of ______________, 2021, to be effective upon adoption. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ February 22, 2022 2 The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. _________________________________ Erin Mendenhall, Executive Director Attest: _________________________ City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] Signature: Email: Garrett A. Danielson (Feb 23, 2022 10:17 MST) Garrett A. Danielson garett.danielson@slcgov.com