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Transmittal - 4/7/2022 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: April 7, 2022 Ana Valdemoros, RDA Chair FROM: Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Chief Operating Officer SUBJECT: RDA Budget Amendment #2, FY2021-22 Revised 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 Second Amendment to the Annual RDA Budget for Fiscal Year 2022. Accept public hearing date for adoption of the amendment. BUDGET IMPACT: REVENUE EXPENSE RDA FUND $ 13,966,072.00 $ 15,853,742.00 RDA CIP FUND 0.00 0.00 TOTAL $ 13,966,072.00 $ 15,853,742.00 rachel otto (Apr 7, 2022 18:03 MDT) 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. 7. Release of held UPAC subdivision cash bond in Block 70 for projects. 8. Use of fund balance for prior year tax increment in the Northwest Quadrant. The revised transmittal includes updates for actual tax increment received. 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 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] REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: April 5, 2022 PREPARED BY: Erin Cunningham RE: RDA Budget Amendment #2, FY 2021-2022 REQUESTED ACTION: Discuss and consider the adoption of the proposed Second Amendment to the Annual RDA Budget for Fiscal Year 2022. BUDGET IMPACTS: The Second Amendment identifies appropriations for Agency operations and projects across multiple funds. EXECUTIVE SUMMARY: The purpose of the briefing is to provide final budget proposals for the Second Amendment (“Amendment”). The proposed budget changes fall into three main categories: 1. Changes to budgets based on the Property Tax Increment the Agency received from the County on March 31, 2022. 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 1,637,213 🔺 29,210,363 Interest Income 350,000 - 350,000 Total Revenue and Other Sources 27,923,150 1,637,213 🔺 29,560,363 Expenses and Other Uses - Taxing Entity Payments 16,543,890 982,327 🔺 17,526,218 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 {Reserved} 83,832 254,885 🔺 338,717 Gallivan Repairs {Appropriated} - 400,000 🔺 400,000 Total Expenses and Other Uses 27,923,150 1,637,213 🔺 29,560,363 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 {Reserved} - 150,000 🔺 150,000 Total Expenses and Other Uses 150,000 - 150,000 Total Over / (Under) - - - West Temple Gateway The RDA is requesting $40,000 of West Temple Gateway funds received from Interest Income for construction mitigation related to the 900 South streetscape project. Funds will be used to assist small businesses adjacent to the on-going construction. The project has experienced delays due to supply-chain issues and coordination with Rocky Mountain Power, who is burying the electrical lines as part of the project. The RDA will coordinate with Economic Development in the deployment of these funds. West Temple Gateway Current Budget Change Proposed Budget Revenue and Other Sources Tax Increment - - - Interest Income 50,000 - 50,000 Total Revenue and Other Sources 50,000 - 50,000 Expenses and Other Uses Transfer to Administration 50,000 (40,000) 🔺 10,000 Capital Expenditures {Holding Accounts} West Temple Gateway Construction Mitigation {Appropriated} - 40,000 🔺 40,000 Total Expenses and Other Uses 50,000 - 50,000 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 1,244,229 🔺 5,165,393 Interest Income 200,000 - 200,000 Total Revenue and Other Sources 4,121,164 1,244,229 🔺 5,365,393 Expenses and Other Uses - - TI Reimbursements 1,820,977 144,628 🔺 1,965,606 Transfer to Primary Housing Fund 784,233 248,845 🔺 1,033,079 Miscellaneous Property Expenses 120,000 - 120,000 Debt Service - - Grant Tower Debt Service 275,600 - 275,600 Transfer to Administration 588,175 186,634 🔺 774,809 Capital Expenditures {Holding Accounts} - - Station Center Infrastructure {Reserved} 332,179 - 332,179 Environmental Remediation {Reserved} 200,000 - 200,000 Central Station (100 S) {Reserved} - 664,121 🔺 664,121 Total Expenses and Other Uses 4,121,163 1,244,229 🔺 5,365,393 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 621,124 354,151 🔺 975,276 Interest Income 45,000 - 45,000 Total Revenue and Other Sources 666,124 354,151 🔺 1,020,276 Expenses and Other Uses - - Transfer to Primary Housing Fund 124,225 70,830 🔺 195,055 Miscellaneous Property Expenses 5,000 - 5,000 Transfer to Administration 93,169 53,122 🔺 146,291 Capital Expenditures {Holding Accounts} - - Community/Cultural Initiative {Reserved} 443,731 230,198 🔺 673,929 Total Expenses and Other Uses 666,124 354,151 🔺 1,020,276 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 435,346 239,498 🔺 674,845 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 2,119,484 239,498 🔺 2,358,983 Expenses and Other Uses Transfer to Primary Housing Fund 87,069 47,899 🔺 134,969 Transfer to Administration 43,535 23,949 🔺 67,485 Capital Expenditures {Holding Accounts} 10% School Construction Fund {Appropriated} 30,474 16,764 🔺 47,239 North Temple Strategic Intervention Fund {Reserved} 1,958,406 150,884 🔺 2,109,290 Total Expenses and Other Uses 2,119,484 239,498 🔺 2,358,983 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. As part of the Eccles Theater project in Fiscal Year 2016, the Agency deposited a subdivision bond with the City, which was released in March 2022. Related to this project, the Agency entered into an agreement to relocate Bennion Jewelers, for which $100,000 is remaining to be disbursed. The remaining funds from the release of the bond funds are recommended to be set aside for Eccles Theater Site Improvements. Block 70 Current Budget Change Proposed Budget Revenue and Other Sources Tax Increment 1,922,323 234,207 🔺 2,156,531 Interest Income - - - Release of Cash Bond - Eccles Theater - 719,778 🔺 719,778 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 10,939,263 953,985 🔺 11,893,249 Expenses and Other Uses Taxing Entity Payments 576,697 70,262 🔺 646,959 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 {Reserved} 100,000 163,681 🔺 263,682 Bennion Jewelers Relocation Agreement {Appropriated} 100,000 🔺 100,000 Eccles Theater Site Improvements {Reserved} 620,041 🔺 620,042 Total Expenses and Other Uses 10,939,263 953,985 🔺 11,893,249 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 1,392,515 🔺 2,573,995 Interest Income 7,500 - 7,500 Total Revenue and Other Sources 1,188,979 1,392,515 🔺 2,581,495 Expenses and Other Uses Debt Service Payment to Salt Lake City 1,171,257 1,371,627 🔺 2,542,885 Transfer to Administration 17,722 20,887 🔺 38,610 Total Expenses and Other Uses 1,188,979 1,392,515 🔺 2,581,495 Total Over / (Under) - - - Northwest Quadrant The Tax Increment revenue received was lower than originally budgeted in the Northwest Quadrant, which results in a decrease of contributions to the Primary Housing Fund, the Secondary Housing Fund, and Administration. The remainder of the decrease will reduce the Shared Costs reserve account to zero. This account 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. The Participation and Reimbursement Agreement between NWQ, LLC and the Agency requires the recipient of the reimbursement to submit documentation to satisfy the Conditions of Repayment, as described in the Agreement. As recipient is near completing the requirement for its first reimbursement, the Agency is recommending the use $1,179,247 of fund balance, which as been set aside from previous years’ budgets. The expected reimbursement for Fiscal Year 2022 is $724,744, which brings the total budget for TI Reimbursement NWQ Phase I to $1,903,991. Northwest Quadrant Current Budget Change Proposed Budget Revenue and Other Sources Tax Increment 1,500,000 (464,652) 🔺 1,035,348 Interest Income - - Total Revenue and Other Sources 1,500,000 (464,652) 🔺 1,035,348 Expenses and Other Uses TI Reimbursement NWQ Phase I 500,000 1,403,990 🔺 1,903,991 Transfer to Secondary Housing Fund 350,000 (246,465) 🔺 103,535 Transfer to Primary Housing Fund 150,000 (46,465) 🔺 103,535 Transfer to Administration 150,000 (46,465) 🔺 103,535 Capital Expenditures {Holding Accounts} Shared Costs {Reserved} 350,000 (350,000) 🔺 - Total Expenses and Other Uses 1,500,000 714,595 🔺 2,214,595 Total Over / (Under) - (1,179,247) (1,179,247) 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 37,334 🔺 108,334 Interest Income - - Total Revenue and Other Sources 71,000 37,334 🔺 108,334 Expenses and Other Uses TI Reimbursements 56,800 29,867 🔺 86,667 Transfer to Primary Housing Fund 7,100 3,733 🔺 10,833 Transfer to Administration 7,100 3,733 🔺 10,833 Total Expenses and Other Uses 71,000 37,334 🔺 108,334 Total Over / (Under) - - - State Street As seen in the table below, while not budgeted in Fiscal Year 2022, the Agency received a significant amount of Tax Increment from 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 - 3,289,619 🔺 3,289,619 Interest Income - - - Total Revenue and Other Sources - 3,289,619 🔺 3,289,619 Expenses and Other Uses Transfer to Primary Housing Fund (Note: School District contribution must be set aside for family and workforce housing) - 328,961 🔺 328,962 Transfer to Administration - 328,961 🔺 328,962 Capital Expenditures {Holding Accounts} Infrastructure Improvements {Reserved} - 500,000 🔺 500,000 Commercial Loan Program {Reserved} - 500,000 🔺 500,000 Ballpark Strategic Development {Reserved} - 1,631,695 🔺 1,631,695 Total Expenses and Other Uses - 3,289,619 🔺 3,289,619 Total Over / (Under) - - - 9 Line Also not in the Fiscal Year 2022 budget, the Agency received 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 - 1,871,603 🔺 1,871,603 Interest Income - - - Total Revenue and Other Sources - 1,871,603 🔺 1,871,603 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) - 187,160 🔺 187,160 Transfer to Administration - 149,728 🔺 149,728 Capital Expenditures {Holding Accounts} Property Acquisition {Reserved} - 982,752 🔺 982,752 Accessory Dwelling Unit Program {Reserved} - 300,000 🔺 300,000 Total Expenses and Other Uses - 1,871,603 🔺 1,871,603 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 {Appropriated} 250,000 - 250,000 Commercial Revitalization Program {Reserved} 667,535 - 667,535 Sustainability Technical Assistance Program {Reserved} 200,000 - 200,000 Total Expenses and Other Uses 1,742,535 100,000 🔺 1,842,535 Total Over / (Under) - (50,000) 🔺 (50,000) Secondary Housing Fund Impacted by the decrease of the contribution from the Northwest Quadrant Project Area, the Secondary Housing Fund will need to decrease the funding originally budgeted for the Accessory Dwelling Unit Program. Secondary Housing Fund Current Budget Change Proposed Budget Revenue and Other Sources Interest Income 44,000 - 44,000 Internal Transfers In Northwest Quadrant 350,000 (246,465) 🔺 103,535 Total Revenue and Other Sources 394,000 (246,465) 🔺 147,535 Expenses and Other Uses Capital Expenditures {Holding Accounts} Accessory Dwelling Unit Program {Reserved} 394,000 - 394,000 Total Expenses and Other Uses 394,000 - 394,000 Total Over / (Under) - (246,465) 🔺 (246,465) 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 784,233 248,845 🔺 1,033,079 Granary District 124,225 70,830 🔺 195,055 North Temple 87,069 47,899 🔺 134,969 Northwest Quadrant 150,000 (46,465) 🔺 103,535 State Street - 328,961 🔺 328,962 9 Line - 187,160 🔺 187,160 Total Revenue and Other Sources 1,491,527 837,232 🔺 2,328,760 Expenses and Other Uses Transfer Out to North Temple Project Area (One-time) - - - Capital Expenditures {Holding Accounts} Housing Development Loan Program {Reserved} 491,527 837,232 🔺 1,328,760 North Temple Strategic Intervention Fund {Reserved} 1,000,000 - 1,000,000 Total Expenses and Other Uses 1,491,527 837,232 🔺 2,328,760 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 {Reserved} 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 (40,000) 🔺 10,000 Depot District 588,175 186,634 🔺 774,809 Granary District 93,169 53,122 🔺 146,291 North Temple 43,535 23,949 🔺 67,485 Block 70 - - - North Temple Viaduct 17,722 20,887 🔺 38,610 Northwest Quadrant 150,000 (46,465) 🔺 103,535 Stadler Rail 7,100 3,733 🔺 10,833 State Street - 328,961 🔺 328,962 9 Line - 149,728 🔺 149,728 Program Income Fund - - - Total Revenue and Other Sources 3,857,015 530,553 🔺 4,387,568 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 202,700 380,553 🔺 583,253 Furniture, Fixtures and Equipment 100,000 - 100,000 Total Expenses and Other Uses 3,857,015 530,553 🔺 4,387,568 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 $2.8 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 - 2,800,000 🔺 2,800,000 Total Revenue and Other Sources 2,590,000 2,800,000 🔺 5,390,000 - Expenses and Other Uses - - Capital Expenditures {Holding Accounts} - - Housing Development Loan Program {Reserved} 2,590,000 2,800,000 🔺 5,390,000 Total Expenses and Other Uses 2,590,000 2,800,000 🔺 5,390,000 - - 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 Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs 1 RDA Budget Amendment - True Tax Received 9-Line 1,871,603.00 1,871,603.00 One-time - 1 RDA Budget Amendment - True Tax Received SS 3,289,619.00 3,289,619.00 One-time - 1 RDA Budget Amendment - True Tax Received WCH - - One-time - 1 RDA Budget Amendment - True Tax Received PHF 837,232.00 837,232.00 One-time - 1 RDA Budget Amendment - True Tax Received DD 1,244,229.00 1,244,229.00 One-time - 1 RDA Budget Amendment - True Tax Received GD 354,152.00 354,152.00 One-time - 1 RDA Budget Amendment - True Tax Received CBD 1,637,213.00 1,637,213.00 One-time - 1 RDA Budget Amendment - True Tax Received NTV 1,392,516.00 1,392,516.00 One-time - 1 RDA Budget Amendment - True Tax Received Block 70 234,208.00 233,944.00 One-time - 1 RDA Budget Amendment - True Tax Received NTA 239,499.00 239,499.00 One-time - 1 RDA Budget Amendment - True Tax Received SRCRA 37,334.00 37,334.00 One-time - 1 RDA Budget Amendment - True Tax Received NWQ-Op (464,652.00) (464,652.00) One-time - 1 RDA Budget Amendment - True Tax Received Admin 530,553.00 530,553.00 One-time - 1 RDA Budget Amendment - True Tax Received SHF (246,465.00) (246,465.00) 2 RDA Budget Amendment - Transfer to HDF from Hand HDF 2,800,000.00 2,800,000.00 One-time - 3 RDA Budget Amendment - Fire clean up PIF 50,000.00 100,000.00 One-time - 4 RDA Budget Amendment - UIPA Housing Allocation WCI 159,031.00 97,676.00 One-time - 5 RDA Budget Amendment - Reallocate RLF funding to Central Station Property Acquisition CS-PA - 550,000.00 One-time - 5 RDA Budget Amendment - Reallocate RLF funding to Central Station Property Acquisition RLF-CL - (550,000.00) One-time - 6 RDA Budget Amendment - Reallocate PIF Arctic Court Infill Home funding to Marmalade Plaza PIF - (338,141.00) One-time - 6 RDA Budget Amendment - Reallocate PIF Arctic Court Infill Home funding to Marmalade Plaza MP - 338,141.00 One-time - 7 Relase of UPAC cash bond Block 70 - 720,042.00 8 FY2021 TI Reimbursement NWQ-Op - 1,179,247.00 1 Transfer from Admin to CE Marmalade Plaza PHF - (150,000.00) 1 Transfer from Admin to CE Marmalade Plaza PHF - 150,000.00 2 Transfer from Admin to West Temple Construction Mitigation WCH - (40,000.00) 2 Transfer from Admin to West Temple Construction Mitigation WCH - 40,000.00 Fiscal Year 2021-22 RDA Budget Amendment #2 Section A: New Items Section B: Grants for Existing Staff Resources Section C: Grants for New Staff Resources Section D: Housekeeping Board ApprovedAdministration Proposed 1 Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs Fiscal Year 2021-22 RDA Budget Amendment #2 Board ApprovedAdministration Proposed - Total of Budget Amendment Items 13,966,072.00 15,853,742.00 - - Total by Fund, Budget Amendment #1: Redevelopment Agency RDA 13,966,072.00 15,853,742.00 - - Total of Budget Amendment Items 13,966,072.00 15,853,742.00 - - - Current Year Budget Summary, provided for information only FY 2019-20 Budget, Including Budget Amendments FY 2021-22 Adopted Budget RDA BA #1 Total RDA BA #2 Total Total To-Date Redevelopment Agency 61,909,808 (1,298,467) 15,853,742.00 76,465,083 Redevelopment Agency CIP - - Total of Budget Amendment Items 61,909,808 (1,298,467) 60,611,341 Adopted __/__/____ Certification Budget Manager Deputy Director, City Council/RDA Board Contingent Appropriation Section G: Board Consent Agenda -- Grant Awards Section I: Board Added Items Section E: Grants Requiring No New Staff Resources Section F: Donations 2