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HomeMy WebLinkAboutTransmittal - 8/2/2022Erin Mendenhall Mayor DEPARTMENT of COMMUNITY and NEIGHBORHOODS Blake Thomas Director SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 445 WWW.SLC.GOV P.O. BOX 145487, SALT LAKE CITY, UTAH 84114-5487 TEL 801.535.7712 FAX 801.535.6269 CITY COUNCIL TRANSMITTAL ________________________ Date Received: _________________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: _________________ ______________________________________________________________________________ TO: Salt Lake City Council DATE: August 2, 2022 Dan Dugan, Chair FROM: Blake Thomas, Director, Department of Community & Neighborhoods __________________________ SUBJECT: Northpoint Small Area Master Plan STAFF CONTACT: Krissy Gilmore, Senior Planner; kristina.gilmore@slcgov.com 801-535-7780 DOCUMENT TYPE: Information Only RECOMMENDATION: Review BUDGET IMPACT: None BACKGROUND/DISCUSSION: The Northpoint Small Area Plan is a land use plan for the land that is generally located between the Salt Lake City International Airport and the northern boundary of the city along the 2200 West corridor. The Northpoint Small Area Plan was adopted in April 2000. The update of the plan was funded to provide guidance on anticipated development in the area and to address annexation related issues in the area. The Northpoint Small Area Plan adopted in 2000 includes the following goal: The purpose of the Northpoint Small Area Plan is to eliminate potential land use conflicts with the Salt Lake International Airport while preserving and enhancing the existing agricultural lifestyle. The original plan identifies land use issues related to the airport, agriculture, business park development, the environment, and infrastructure. The plan includes a land use map that identifies most of the land west of 2200 West as Business Park and the majority of the land east of 2200 8/2/2022 8/2/2022 West as Agriculture. The plan includes land that is located outside of the city boundaries for the purpose of future annexations. A 2019 development proposal to develop land in unincorporated portions of Salt Lake County along 2200 West for residential purposes was submitted to Salt Lake County. This proposal triggered an annexation proposal for the land to be annexed into North Salt Lake City because both the county and city land use regulations prohibited residential development so close in proximity to the airport. In response to the proposed annexation the City Council funded an update to the Northpoint Small Area Plan. The purpose of funding the update was to address development pressure in the plan area and to address potential annexations of unincorporated land. The RFP process started in December 2019. The RFP was scheduled to be published at the end of March 2020. Due to uncertainty related to the pandemic the RFP was paused and not released to the public. The money was reallocated during in the 2020-2021 budget. The RFP process was relaunched in January 2021 utilizing the same RFP document that was produced in 2020. The RFP selection team included representatives from the Planning Division, the Airport, Transportation Division, Engineering Division, and a member of the Community Council from the area. After interviews, the selection committee chose Logan Simpson. The contract with the consultant was finalized in May 2021. A transmittal was sent to the City Council in July 2021 to satisfy the process identified in Resolution 14 of 2020. That briefing included the scope of work, timeline, and public engagement plan. The next step in that process that involves the City Council is to provide a briefing on the draft plan prior to the Planning Commission adoption process. This transmittal includes the draft plan that has been produced by the consultant and that is currently going through the final part of the engagement process. SMALL AREA PLAN KEY CONCEPTS: The plan will guide the future development of the area by presenting a vision map, design standards and guidelines for private development throughout the area. The plan also provides action steps the city can implement to mitigate the impact of new development on the surrounding natural habitat and existing residential properties. Finally, the plan will set into place strategies for creating a safer pedestrian environment in general. Key concepts of the draft plan include: • Identifies appropriate future land use (called a vision map) and development characteristics for the area that can coexist with the wildlife habitat and natural Image 1: Northpoint general vicinity environment of the Great Salt Lake, and the operations of the Salt Lake City International Airport. • Identifies appropriate buffering, building design, and development characteristics to reduce the impacts on agricultural uses, important wildlife habitats, and other uses within the corridor. • Recommends methods to reduce the negative impacts that future land uses may have on air quality, water quality, noise, and light. • Updates future annexation potential for unincorporated land within Salt Lake County. The plan implementation matrix and toolkit will guide future land use decisions and the allocation of infrastructure funding. These include: • Adopt recommendations to the City’s zoning designations for M-1 and BP including codifying the plan’s recommended design standards. • Evaluate funding solutions to redesign 2200 West. • Evaluate the feasibility of acquiring sensitive lands as city-owned open space (a toolkit is provided that lists the pros and cons of various preservation tools). • Proposed buffers for various development types. • Support the development of a new north-south bypass road. • Prohibit new development to face 3200 West. PLAN DEVELOPMENT The development of the draft plan was the result of a robust and targeted community engagement process. Development of the plan also included analysis of existing demographic, land use, and mobility conditions, analysis of existing plans and policies, and coordination with public and private stakeholders. The planning process included one-on-one interviews with residents, developers, environmental groups, and city and county-specific staff, a public open house, two public questionnaires, and a property owner-specific questionnaire. The steering committee met throughout 2021 and 2022 to discuss and make recommendations to the draft plan. Public engagement details are below for reference: Public Engagement: • August: An informational postcard was mailed to property owners within the study area informing them of the project and stakeholder interview opportunities • August 2021: Logan Simpson held one-on-one meetings • August 2021: Logan Simpson and the Salt Lake City Planning Department attended the Westpointe Night Out event. • June 9, 2021: Westpointe Community Council presentation • April 29, 2022: An informational postcard was mailed to property owners within the study area informing them of the upcoming workshop and providing them with a QR code to obtain more information and take a property owner questionnaire. • March 2 – 30, 2022: Property Owners Questionnaire • March 9, 2022: Westpointe Community Council presentation • May 16, 2022: Draft Concepts public workshop • May 17 – June 30: Draft Concepts Online Questionnaire was available to the public. • July 22, 2022 – Ongoing: Draft Plan Public Review Period • July 27, 2022: Planning Commission Briefing Upcoming Public Engagement: The draft plan has been noticed to the local community council and has been posted on the Planning Division’s Website for an online open house to obtain public comments. Staff is planning to attend community council meetings, as well as the local Night Out event to discuss the draft plan. Additional public engagement opportunities will be available before the public hearing with the Planning Commission. Steering Committee: A Steering Committee was established to provide guidance on the deliverables of the plan as it is developed. The Steering Committee met four times throughout the plan development process and consisted of business representatives, environmental representatives, governmental organizations, and property owners: FRIENDS of Great Salt Lake Great Salt Lake Audubon Utah Audubon Council SLC Mosquito Abatement District Westside Coalition Audubon Society North Salt Lake City Westpointe Community Council Rudy Reclamation and Sportsman's Club North Point Duck Club Jordan River Commission Westpointe Community Utah Reclamation Mitigation and Conservation Commission Salt Lake County Property Owner in Salt Lake County Plan Area NEXT STEPS: • Following public review of the draft plan any modifications necessary to the draft Northpoint Small Area Plan will be forwarded to the consultant, Logan Simpson, for them to make those modifications. • Present Plan to Planning Commission in October 2022 for a recommendation for adoption • Transmit to City Council in late Fall 2022 EXHIBITS: 1. Draft Northpoint Small Area Plan 1. NORTHPOINT SMALL AREA PLAN DRAFT NORTHPOINT Small Area Plan Salt Lake City City Staff Review Draft, July 2022 DRAFT 2 CONTENTS Chapter 1 Introduction ....................................................6 Location .................................................................................................7 Plan Context and Purpose .....................................................................8 Guide to this Plan ...................................................................................9 Chapter 2 The Vision ....................................................12 Constraints to the Vision ....................................................................14 Vision Map ..........................................................................................16 Design Standards ...............................................................................18 Chapter 3 Implementation ...........................................33 Implementing the Vision ...................................................................32 Implementation Table ........................................................................34 Chapter 4 The Toolkit ....................................................36 Using the Toolkit .................................................................................38 Land Preservation Tools ......................................................................40 Financial Implementation Tools ..........................................................46 DRAFT Appendix A Existing Conditions Appendix B Public Input Appendix C Constraints Analysis Appendix D Full Financial Analysis DRAFT CHAPTER 1 INTRODUCTION 6 Location The Northpoint Plan Area (Northpoint or Plan Area) is located just north of Downtown Salt Lake City, near Farmington Bay and the Great Salt Lake. The Plan Area is bounded to the east by Highway 215 and is comprised of mainly agricultural, industrial and residential uses. Northpoint lies within the northwest quadrant of Salt Lake City, adjacent to vital environmental resources including the Jordan River and playas and wetlands associated with the Great Salt Lake. Over half of the property in Northpoint is under the jurisdiction of Salt Lake County and consists of agricultural uses, business park development, industrial and commercial zoning. Environmental considerations greatly influence the growth and development of the area. Directly south of Northpoint is Salt Lake City International Airport, which provides opportunities for and constraints to the potential development within Northpoint. The airport continues to expand through ongoing renovations and is currently being guided by the 2021 Salt Lake International Airport Master Plan. Its proximity is a defining factor of the Plan Area. Northpoint is also adjacent to several recreational areas including the Wasatch Mountain Range, with its many trails, the Jordan River OHV State Recreation Area, and the Regional Athletic Complex. Introduction Overview Graphic 1.1 | Northpoint Plan Area DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 7 Esri,H ERE,Garmin,(c)OpenStreetMapc ontributors,andt he GISu serc ommunity Jurisdiction Plan Context and Purpose In 2000, a Northpoint Small Area Plan was adopted with goals to eliminate potential land use conflicts between the Salt Lake International Airport, future development, and the existing agricultural lifestyle. Other notable planning efforts for this region include the 1992 Northwest and the Jordan River/Airport Plan which address the Northpoint Plan Area, the Great Salt Lake wetlands and Jordan River, the Salt Lake Airport, and surrounding land; the 2020 Blueprint Jordan River Plan which illustrates a cohesive vision for the River as it stretches through multiple jurisdictions; the 2021 Salt Lake City International Airport Master Plan; and the 2021 Salt Lake County West General Plan (in draft). The northwest portion of Salt Lake City is limited by multiple layers of constraints, mostly environmental, but also due to airport activity, connectivity, and social equity issues. It is the largest growth area for the City, but quite possibly, the most difficult to develop. This Plan addresses the natural environment, built environment, and community attributes. Many factors contribute to constraints facing the area, however many attributes act as opportunities. The Northpoint Small Area Plan Update is a response to the rapid pace of growth and change in the northwest portion of Salt Lake City. The key goals of this Plan are to: »Identify appropriate future land use and development characteristics for the area that can coexist with the wildlife habitat and natural environment of the Great Salt Lake, and the operations of the Salt Lake City International Airport. »Update future annexation potential for unincorporated land within Salt Lake County. »Identify appropriate infrastructure requirements, including utilities and roadways, to support the future land use in the area. »Identify appropriate buffering, building design, and development characteristics to reduce the impacts to agricultural uses, important wildlife habitat, and other uses within the corridor. »Recommend methods to reduce the negative impacts that future land uses may have on air quality, water quality, noise, and light. Graphic 1.2 | Northpoint Jurisdictions Salt Lake City Salt Lake County DRAFT 8 Guide to this Plan Plan Salt Lake Northpoint Small Area Mater Plan Land Use Code and Zoning Ordinances Design Standards Incentives Tools and Actions Introduction This document is intended to support Salt Lake City’s overarching vision established in Plan Salt Lake while also providing tailored tools to help the Plan Area grow appropriately. It is important for Salt Lake City to adopt the Northpoint Small Area Plan and its supplemental recommendations to guide applicants to develop within the scope of the Community’s Vision. This plan should be referenced when discretionary land use decisions are being made. These recommendations include, design standards, land acquisition tools, regulatory tools, and incentive based tools. Master plans detail the vision, policy, and framework of the community that will guide growth and development over time. As the plan area transitions from greenfield and rural residential to industrial and business park, this plan outlines specific design standards and action steps the City can implement to mitigate the impact of new development on the surrounding natural habitat and existing residential properties. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 9 Public Process This planning process included one-on-one interviews with residents, developers, environmental groups, and city and county staff, a public open house, two public questionnaires, and a property owner-specific questionnaire. With several applications active in the Plan Area at the time this project started, it became apparent early on that habitat preservation and residential quality of life were primary concerns. This shaped the Plan, shifting focus on land use recommendations to tools available to the City to preserve habitat, mitigate impacts of new development on residents, water and air quality, and wildlife, and determine appropriate improvements to existing infrastructure. Placeholder for final outreach numbers DRAFT 10 Executive Summary The Northpoint Small Area Plan is a detailed master plan for the Northwestern Community of Salt Lake City. The Plan Area contains critical habitat as it it is nestled against wetland spillover from the Great Salt Lake and urban growth by its eastern border of Interstate-15. This area is considerably underdeveloped in relation to the rest of the City. Additionally, parts of the Plan Area are fragmented with unincorporated County Land and airport-owned property. Although, there are constraints, development inquiries have increased and with it came the necessity of a clear plan. The Northpoint Small Area Plan aims to guide future development based on the previously adopted community plans and future land uses that City identifies as appropriate to the area. The Plan contains three elements to guide growth into the future. Vision The Northpoint has experienced growth that can conflict; industrial development adjacent to agriculture and residential uses, and developments adjacent or abutting critical habitat areas (i.e. wetlands and upland). Industrial development has begun, and will continue, to creep into this area of Salt Lake City. Understanding this reality, the Northpoint vision is to balance the anticipated growth with the existing and continued uses of the area through identifying preservation priority areas, clearly outlining future anticipated land uses, and mitigation strategies for high-impact development directed at preserving quality of life for residents and the natural environment. Design Guidelines The design guidelines are directly connected to the anticipated development. Building and site design have the ability to affect built environments in impactful ways. When done with a clear vision in mind, design standards can shape development that reduces visual and physical land use conflicts. The standards touch on each land use designation and provide clear direction as to how the area should be built. Although the standards are separately outlined in the Plan, they are implied to be implemented with the other action items. Implementation What separates this Plan from a design standards manual, is the comprehensive action items that are addressed in the implementation Chapter. The action items range from strategies to best preserve open space and critical habitats, service and infrastructure needs, annexation of unincorporated properties within the Plan Area, and funding tools that will help Plan Area grow responsibly. These elements can be applied to the area as a whole and provide different initiatives aside from traditional zoning regulation guidance. The implementation identifies critical path items for the City to pioneer as it relates directly to the Northpoint Area. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 11 Development Before the Northpoint Small Area Plan Implementation Development after the Northpoint Small Area Plan Implementation Smaller buildings facing existing residential, largest buildings in the middle of development. Greater attention to building design i.e. building materials, lighting, landscaping, etc. Allow clustering of buildings in favor of preserving connected habitat and critical open space. No restrictions on building size near/facing existing residential. Typical industrial development styles can disturb natural habitat with disruptive materials, lighting, hazardous landscaping and fencing, etc. Minimum lot sizes and open space requirements force buildings to be oriented in an inefficient way, taking up more native land than needed.DRAFT CHAPTER 2 THE VISION 14 Constraints to the Vision As discussed in Chapter 1, the Plan Area consists of several development constraints ranging from sensitive wetland habitat to airport influence zone regulations. Mapping these constraints is a crucial first step in determining the areas most suitable for new development and identifying areas that should be preserved as habitat and open space. The Constraints Map illustrates the results of this analysis and may be used to prioritize sensitive lands for preservation or acquisition. For a detailed analysis of development constraints and opportunities used in this analysis, see Appendix C. Constraints reviewed in this analysis included: »Designated Wetlands »Salt Lake City International Airport-Owned Properties »Utility and Open Space Easements »Airport Influence Zones (A, B, C, AP, and AP BND) »Viable Agriculture »Airport Noise Contours Using the Vision Map and Design Standards The Vision Maps in this chapter are intended to show where additional standards are necessary to ensure future development is compatible with existing residential, agricultural, and sensitive habitats. To use this chapter, review the Vision Map and accompanying Design Standards. It is intended that the following design standards be incorporated into Salt Lake City Zoning and Development Code to apply to new development in the Plan Area. The Northpoint Vision Overview Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community ¯ Most suitable for development Least suitable for development NORTHPOINT CONSTRAINTS MAP Graphic 2.1 | Constraints Analysis for Northpoint DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 15 Protected Open Space Purpose: POS areas are those that should be preserved as natural open space and prohibit development. The POS district aims to connect critical habitats in the least fragmented way possible considering development trends in the Plan Area. Applicability: These areas include designated wetlands, uplands, existing recreational amenities, and areas connecting them. All designated wetlands, uplands, and other sensitive lands fall under the POS district. Use Standards: Development in these areas should be limited to passive recreational opportunities, trailheads, and small parking areas. Adjacent land uses will be subject to mitigation. Residential Transitional Purpose: The purpose of this zone is to mitigate the inevitable impacts of Business Park/ Industrial development on residential properties. Applicability: This land use applies to all current residential properties. There are no properties in the Plan Area that are identified for new residential development. Use Standards: Residential properties shall be subject to natural habitat impact mitigation standards such as buffering critical areas from all development. Should any residential properties transition to BP/Industrial, all BP/Industrial standards will apply. Business Park/Industrial Purpose: Business and industrial development is anticipated in the Plan Area. The majority of the Plan Area may convert to industrial and business properties. Applicability: The BP/I district applies to properties that do not contain significant constraints such as wetlands, uplands, existing residential, or other major limitations. Use Standards: Development in these areas will be reviewed closely for impact to existing residents and sensitive lands and may require additional mitigation designs focused on protecting the natural environment and quality of life of existing residents. Land Use Categories DRAFT 16 Graphic 2.2 | Northpoint Vision Map NORTHPOINT VISION MAP Water Designated Wetland Protected Open Space Business Park / Industrial Residential Transitional Proposed Building Existing Building Land Uses Structures DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 17 Before After Smaller buildings facing existing residential, largest buildings in the middle of development. Greater attention to building design i.e. building materials, lighting, landscaping, etc. Allow clustering of buildings in favor of preserving connected habitat and critical open space. No restrictions on building size near/facing existing residential. Typical industrial development styles can disturb natural habitat with disruptive materials, lighting, hazardous landscaping and fencing, etc. Minimum lot sizes and open space requirements force buildings to be oriented in an inefficient way, taking up more native land than needed. EFFECT OF DESIGN STANDARDS DRAFT 18 Design Standards Land Use Business Park/Industrial Residential Transitional Minimum Setback of New Development Designated Wetlands/Uplands 200 ft1, 2 75 ft1, 2 Canals and Drains 75 ft 75 ft Jordan River 100 ft1, 2 75 ft1, 2 Existing Residential 200 ft Determined by underlying zoning Maximum Building Frontage on 2200W 400 ft 250 ft 1 | Must preserve uninterrupted connection between wetlands and uplands 2 | Must include and maintain a planted stormwater mitigation element such as a bioswale DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 19 Preferred Buffer for Development Adjacent to Wetlands/Uplands DRAFT 20 Design Standards 1 | Habitat Mitigation Standards 1.1 | Grading Limitations Considering limitations to grading can help minimize impacts to native vegetation. It is important for only areas planned for development to be cleared and graded as it can allow for natural drainage courses to be maintained and reduces the need to manage stormwater flows. ◊ Grading equipment shall »Be low impact to prevent compaction of the underlying soils. »Consist of wide-track vehicles such as backhoes, small bulldozers, and skid-steers. »Be operated from the outside of the drainage course or basin. ◊ Soil cover or ramps shall be included to allow for movement of wildlife through the drainages. ◊ Excavation methods such as installation of underdrains should be considered. ◊ Vertical drop structures and concrete lined channels should be avoided. ◊ Use of large angular rip-rap for erosion control should be limited. ◊ Non-structural features that also provide riparian habitat should be considered. ◊ Where possible, development should relate the building to the natural site by stepping buildings and avoiding mass leveling of the site. 1.2 | Fencing and Walls Fences and walls can be barriers to wildlife and impede the movement of wildlife between habitat areas. Although fencing can be used to exclude wildlife, it should be applied in very specific areas that do not restrict larger wildlife movement and migration patterns; or access to food, water, shelter or potential mates. ◊ Fencing shall be permeable to allow for the safe passage of animals and facilitate wildlife movement through existing or constructed wildlife corridors. ◊ Natural barriers for privacy purposes shall consist of natural materials where possible such as boulders, densely-planted vegetation or rip-rap. ◊ Decorative fencing features that could be hazardous to wildlife shall be prohibited including »Pointed or narrow extensions at the top of fences. »Wires that may entangle animals. »Hollow fence posts that are open at the top when birds or other small animals may become entrapped in an open cavity. Standards for All New Development Graphic 2.8 | Native Landscaping DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 21 1.3 | Dark Sky Lighting Lighting is an important element in built environments that allow for a perceived sense of safety at night. However, lighting is often inefficiently used through fixture styles and placement. While planning for the Plan Area, lighting design can be used to benefit the built environment while also considering the natural elements that exist in the area prior to development. Artificial lighting can disrupt wildlife’s natural patterns and behaviors. Graphic 2.4 | Dark Sky Friendly Lighting ◊ Lighting in non-functional spaces is prohibited. (i.e. architectural and landscape lighting is not necessary for function of built environments) ◊ Light fixtures with motion or heat sensor may be used to keep lights off when lighting is not required. ◊ Lighting should consist of International Dark Sky Association (IDA) approved fixtures . ◊ Light fixtures shall be selectively placed and fully shielded (i.e. light shall only be emitted downward and not above an imaginary horizontal plane passing through the light source) ◊ Lights shall be directed away from natural areas. ◊ Lighting shall use timers as to not be turned on outside of hours of operation. ◊ Use lighting that shall be a color temperature of 3,000 kelvin or less. Graphic 2.4 | Dark Sky Friendly Lighting DRAFT 22 Design Standards 2 | Water Conscious Development 2.1 | Landscaping Regulating native species in landscape design can lead to low-maintenance and water-wise environments that reflect the natural environment in the built environment. Additionally, habitat value can be increased when landscaping isn’t overly manicured. However, weeds/invasive species should be controlled in a way that does not compete with the necessary water and nutrient of the native species. ◊ Landscaped areas shall meet LID requirements. ◊ Landscaping shall consist of native, adaptive, and drought-tolerant plantings. ◊ The removal of mature trees shall be prohibited. ◊ Landscaping shall not require modifications to the native soil. ◊ Minimize irrigated landscape areas and utilize naturalized swales. ◊ Fertilizers and herbicides shall be prohibited. ◊ Development adjacent to wetlands and uplands shall adhere to the buffer requirements herein and include on-site stormwater management. Graphic 2.14 | Stormwater Runoff Design 2.2 | Stormwater Management As undeveloped land becomes developed with hard surface materials, loss of permeable surfaces will have a direct affect on stormwater runoff. It is essential to avoid stormwater contact with industrial materials and activities and to avoid point-source pollution and degradation of the wetlands, uplands, and other natural habitat. There are comprehensive best management practice guides that can help applicant navigate the best solution for the specific use. ◊ Significant new development shall obtain a Utah Department of Environmental Quality permit. ◊ Embankments and spillways shall be designed and approved by engineers that specialize in stormwater management and ecologically friendly design. ◊ Stormwater systems shall not diminish water flow to wetlands. ◊ Sedimentation systems may be used. »Sediment systems are more efficient with pollutants associated with metals, organic compounds, and other oxygen-demanding substances. There are limitations with sediment systems as small particles do not always settle therefore the substances in the industrial stormwater discharge should be evaluated prior to implementation. ◊ Detention ponds may be utilized with an underdrain to outlet to allow water to slowly release into proper stormwater systems. ◊ Retention ponds may be utilized to regularly contain water on site and via infiltration. ◊ Infiltration systems may be utilized to capture and infiltrate runoff in order to reduce runoff volume. »i.e. Infiltration Trenches, basins, bio-retention systems and underground infiltration tanks. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 23 Graphic 2.30 | Porous Surface Street Edge Graphic 2.29 | Native Landscaping Graphic 2.28 | Bioswale Graphic 2.27 | Bioswale 3 | Airport Conflict Mitigation Aviation adjacent to the Plan Area has been around for many years. Similarly to the rest of Salt Lake Valley, the Airport, too, has grown and anticipates further growth into the future. It is important to account for current and future impacts. 3.1 | Noise Regulation programs like Federal Aviation Regulation (FAR) Part 150 Noise, should be implemented on airport owned properties as to mitigate the impacts of noise. This program was established by the Aviation Safety and Noise Abatement Act of 1979 and sets forth the measure that a specific airport operator has taken to reduce the impacts of noise. 3.2 | Land Use Compatibility Local land use planning such as this plan can better prepare for the implications of planning around airports, and other airport- related development. Land use decisions around the airport properties should account for the impacts and determine whether the proposed use is appropriate. This can be hindered when multiple jurisdictions regulate the surrounding lands, however, there are tools such as annexation to consolidate regulatory authority and ensure that only appropriate land use decisions are made.DRAFT 24 Graphic 2.23 | Natural Design Elements Graphic 2.24 | Natural Building Materials Graphic 2.21 | Interior Courtyard 4 | Visual Design Conscious design can help enhance compatibility between various uses and ensure that development fits in with the surrounding natural environment as best as possible. ◊ Units (and open space required by code) shall be organized or “clustered” in an efficient manner on properties where doing so will allow for larger habitat buffers. ◊ Building frontages along 2200W shall not exceed 400 ft in length. ◊ Uninterrupted horizontal expanses of 100 ft in length of any opaque material, including opaque glass, shall be prohibited on building frontages visible from public streets. ◊ Natural building materials and colors shall be included in the exterior of buildings to mitigate the contrast of the built and natural environment. ◊ Mirrored or highly reflective glass is prohibited. ◊ Mechanical systems/equipment shall be shielded with barriers such as foliage and fences. ◊ Common design elements shall be included in Business Park-zoned development. They can include structural grids, construction assemblies and other. »Designs should have a variety of unit sizes to accommodate different uses and the structural layout should also allow for flexibility. ◊ Primary uses should only account to towards gross area calculations to encourage mixed- use development. As market trends toward technologically focused industries, office spaces are in high demand therefore requiring flexibility. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 25 Standards for Residential Transition Areas Development within Residential Transition Areas will be held to the standards previously mentioned with the following additional standards. 1 | Industrial Land Use Mitigation As industrial developments increase in the Plan Area, it is essential to recognize the compatibility issues associated with industrial land uses and mitigate issues through building and site design. Industrial developments intrinsically contain issues with noise, odor, dust, traffic, light, air quality, and visual/design elements, therefore mitigation is necessary. 1.1 | Noise Industrial uses can have implications on noise that can affect adjacent land uses and also the natural environment. Noise can be classified into two different types: airborne and structure borne. Airborne is from the source to the receiver and can travel in all directions whereas structure- borne is vibrations through materials. Regardless of noise type, mitigation efforts should be in place prior, during, and after development. The following strategies are ways to mitigate the unwanted and unnecessary noise impacts due to industrial development. ◊ Noise impacts shall be mitigated by absorption, barriers, and/or damping. »Absorption works towards dissipating airborne acoustic sound waves. The best sound-absorbing materials are acoustic foam, fabric panels, of underlayment. Common building materials do not absorb must sound whereas softer materials, such as carpet, foam padding, and fiberglass insulation are more efficient in dissipating noise. »Physical barriers such as a berm or spatial separation that account for height, distance, thickness, and material type can contribute to the extent of mitigation. »Damping reduces acoustic vibration within a structure or wall. ◊ Building masses such as U or L shaped forms are preferred as they can contribute to noise mitigation through spatial separation. ◊ Interior courtyards or garden spaces should be incorporated as they can be an effective noise mitigation strategy by providing quiet and light-filled spaces. ◊ Vegetation should be high and dense when used for noise mitigation for significant effectiveness. ◊ Air-conditioning units should be substituted for pressurized plenum space where possible. Graphic 2.21 | Existing Residential in the Plan AreaDRAFT 26 Design Standards 1.2 | Odor Unlike other externalities of industrial uses, odor can be difficult to measure due to its subjective nature. However, there are some measures that can be taken to address the duration, frequency, intensity, and location of noxious odors. ◊ Mitigating odor should start at the source of the emitter, such as food operations, traffic emissions, chemical facilities, mechanical equipment pollution, and material handling. Operational and engineering best practices can mitigate odors prior to being released in the environment. ◊ If emissions cannot be prevented, various solutions can be applied such as: »Plantings and trees to absorb and mask unpleasant smells as well as act as visual screening. Additionally, plantings can act as ozone generator which eliminates odorous substances through oxidation and are low maintenance. (Odor mitigation foliage include field maples, peace lily, serviceberry, sansevieria). »Dispersion to reduce consolidated emissions. Dispersion can look like increased separation between odor source and receivers to allow for dilution or contain the dispersion in an enclosure to prevent odors dispersing. »Location of open tanks and storage piles. Limit the presence of smells such as locating open tanks and storage piles away from residential and high-occupancy areas. »Structure design elements. The operability and placement of windows and doors can also prevent intrusion of odors. 1.3 | Air Quality Encouraging and supporting occupants that engage in sustainable processes and produce minimal emissions is the most effective way to mitigate air quality issues. In circumstances where this is unavoidable, exhausting air with ventilation can be effective and dilution can be used to mitigate the impacts ventilation can have on the surroundings. ◊ Apply in-room air cleaners and vegetation barriers to help mitigate localized air pollution. ◊ Use air filters and electronic air cleaners such as ionizers in duct-mounted and portable cleaners. »i.e. activated carbon is an adsorbent media air filter. ◊ Green roofs may be incorporated to address on-site and off-site disturbances. ◊ Extensive venting should be used when possible. ◊ Operable windows should be used to provide direct ventilation where they do not conflict with noise mitigation strategies. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 27 Graphic 2.22 | SLC Air Quality 1.4 | Traffic and Loading Industrial development brings different vehicular traffic expectations. The challenge lies in balancing street level, building, and occupant needs. It is essential that industrial land uses contain loading and unloading infrastructure as the traffic associated with the use can have compatibility issues with adjacent non-industrial uses. Certain elements such as parking, loading bays, elevators, access points, noise, and aesthetic can have implications on the area. Establishing design standards can allow for mitigation of incompatibilities between the movement of people, vehicles, and goods. ◊ Spatial Separation: Land uses that produce heavier traffic scenarios shall be placed away from residential units. ◊ Vertical Stacking: Flat-roof style structures may be implemented for upper-floor parking and loading. ◊ Access: Access shall be allowed from more than one side of a site to allow for better separation of pedestrian, cycling, and vehicle access to reduce the risk of collisions and large distribution vehicles. ◊ Laneways: Laneways shall be sensitive to pedestrian spaces by carving out walkable space in the building mass. This includes vegetation, dark sky-friendly lighting, and amenities for pedestrian use. ◊ Shared lobbies: Mixed-use buildings (including industrial and/or office spaces) may require shared lobbies to foster community and interaction among tenants. »It is important to ensure that there are not substantial conflicts between uses that have safety implications. ◊ Location: Additional considerations for industrial and non-industrial compatibilities includes proximity to future public transit which can reduce parking demands and activates streets for more complete neighborhoods. These locations should be evaluated if public transit plans are implemented in the Plan Area. DRAFT 28 Design Standards Standards for Protected Open Space Protected open space consists of critical habitat, regionally significant agriculture, and connecting open spaces. Development in these areas is restricted to passive recreational amenities. 1 | Wetland Design Standards 1.1 | Planting Wetlands are home to very beneficial habitats that can support carbon sequestration and improve water quality. As development increases, mitigating the impacts on wetlands is essential for the area. Plant species is an example of a simple design standard that can be incorporated into properties in a close proximity to this critical habitat. ◊ Encouraging and/or requiring native plant species can promote healthy wetland habitat in the face of increasing development. ◊ Non-native/invasive species mitigation: Upkeep of vegetated areas should be a continuous effort of property owners. This includes proper management of invasive and non-native plant species that may have a negative impact on the natural wetland habitat. »Utilizing natural mitigation techniques should be encouraged as to avoid run-off from herbicide and pesticide product. Graphic 2.31 | Outdoor Pavilion Graphic 2.31 | Natural Landscaping Graphic 2.32 | Nature-Inspired Design Graphic 2.33 | Birds at the Great Salt Lake Graphic 2.34 | Education Center DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 29 1.2 | Trails and Boardwalks Integrating boardwalks and trail adjacent and into wetlands can provide educational and leisure activities for the community in and beyond the Plan Area. Access to these critical areas must be design in a way that protects the natural habitat while also providing experiences that are otherwise experienced by only a few individuals. It is important to take inventory of the wetland and partner with ecologists before implementing a trail system. ◊ Working group: Educational and recreational programming is a welcomed amenity, however, start up can be difficult without willing partners and active volunteers. Establishing a working group can help implement a well-rounded, comprehensive wetland program. ◊ Trail Kiosk and Parking: Integrating educational and recreational opportunities with the wetlands can benefit those beyond the Plan Area. Therefore, establishing a trail kiosk and parking area will provide more convenient access to this amenity area. ◊ Connectivity: Connecting the wetlands to the upland environment can help the user experience the relationship between the two environments. The trail and boardwalks should be ◊ Signage: Creating a recognizable sign program can help users identify the trails and remain on trail. The program can also include interpretive signage that indicates points of interest, or educational information about the wetlands and uplands. ◊ Trail type: It is important to evaluate what type of trails are appropriate in and around the wetland to mitigate the impacts on the natural environment. Purposeful design can also help mitigate unnecessary costs for development and maintenance. »Trails rather than boardwalks are appropriate in areas where there is raised ground through the wetland or around the wetland. Soft-surface trails require little investment. »Boardwalks are needed where adjacent lands are flat (vegetation is tall) and allows for the ground beneath to remain somewhat natural. Boardwalks can be constructed of planks, logs, or rocks. Graphic 2.38 | Wildlife Viewing and Fishing Access Graphic 2.37 | Informational Signage Graphic 2.36 | Boardwalk-Style Trail Graphic 2.35 | Natural Multiuse Trail DRAFT CHAPTER 3 IMPLEMENTATION 32 Implementing the Vision Implementation refers to the actions Salt Lake City should take to ensure the Plan Area develops in a way that is consistent with the community’s vision. This chapter is broken into several components and is intended to be reviewed and updated as actions are completed. The most time-sensitive implementation actions are included as critical path items following the critical path items is a list of additional action items recommended to achieve the vision of this Plan. Critical Path Items Critical Path Items are actions that should be abided by the City prior to and as development occurs. These items have been categorized based on the elements that will directly be impacted through the action. Each critical path item will fall into at least one of the following categories: Built environment/ Design, Services and Infrastructure, and Natural Environment/Preservation. These categories were identified throughout the planning process and are integrated into the various sections of the Plan. The following items are classified as an immediate need, as development pressures area already present in the Plan Area. Services and Infrastructure Evaluate Funding Solutions to Redesign and Construct 2200 W The redevelopment of 2200 W should consider increased vehicle volumes and incorporate pedestrian and biking infrastructure. Below is a list of potential funding opportunities for this action. For a detailed analysis of these tools and their applicability in the Plan Area, see the Financial Implementation Analysis in Appendix D. »Tax Increment Areas »Community Reinvestment Areas (CRAs) »Transportation Reinvestment Zones (TRZs) »Housing & Transit Reinvestment Zones (HTRZs) »Public Infrastructure Districts (PIDs) »Special Assessment Areas (SAAs) »Impact Fees »Municipal Energy Tax Implementation Overview DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 33 Built Environment/Design Adopt Development Code Updates There are several zoning designations within this Plan Area including: Light Manufacturing (M- 1), Business Park (BP), and Agricultural/Rural Residential (AG-2, AG-5, and Salt Lake County A-2). Although some properties will likely remain Agricultural/Rural Residential, it is anticipated that this area will slowly redevelop into BP and M-1 development with some preserved open space areas at the western edge of the Plan Area, and accommodating and surrounding existing wetland and playa areas. The simplest way to encourage development consistent with the City’s vision for the Plan Area is to adopt minor edits to these zoning categories. While the City Council may eventually adopt an overlay for the Plan Area, the following Zoning Code updates are “low-hanging fruit” the City can quickly implement. M-1 »Consider conditional uses (rather than permitted) for potential environmental hazards such as outdoor playing fields, or potential air and water contamination uses. »Review landscape requirements to prohibit turf lawns and encourage native plantings in keeping with wetland preservation, particularly in interface areas. »Adopt Design Standards from Chapter [2] of this document BP »Consider reduction in minimum lot size if clustering for preservation areas. »Consider vegetation requirement consistent with wetland habitats when interfacing. »Reconsider setbacks in zoning code if preserving native habitat, allow more flexibility of the building envelope. »Eliminate requirement of agricultural buffer in favor of environmental buffer (keep residential proximity protections when agriculture is a residential use.) Natural Environment/Preservation Evaluate the Feasibility of Acquiring Sensitive Lands as City-Owned Open Space There has been a large amount of support for the preservation of open space in the Plan Area, as it serves as a cultural and historical landmark for the region and critical habitat for wildlife. Aquiring and preserving available open space in this area for passive recreation is a high priority. For a list of recommended land acquisition tools, see Chapter 3. DRAFT 34 Recommended Action Timeframe Responsibility Critical Path Category Adopt recommended updates to City’s zoning designations of M-1 and BP including codifying the Design Stands herein.Immediate Planning Built Environment/Design Evaluate funding solutions to redesign and construct 2200W improvements, including vehicular, stormwater, pedestrian, bicyclist, and landscape enhancements, such as a special tax district. Immediate City Council Services and Infrastructure Evaluate the feasibility of acquiring sensitive lands as City-owned open space.Immediate City Council Natural Environment/Preservation Prohibit new development facing 3200W and restrict through-traffic.Immediate Planning Built Environment/Design Natural Environment/Preservation Require new development in the Plan Area to obtain an environmental impact study.Short Term Planning Natural Environment/Preservation Built Environment/Design Require a border/buffer of at least 100 feet between wetlands and any site development (e.g. buildings, parking, site features and amenities) within the Northpoint Plan Area.Short Term Planning Built Environment/Design Natural Environment/Preservation Support the development of a new north-south collector within the Plan Area to mitigate traffic impacts to 2200 W.Short Term Planning Services and Infrastructure Coordinate with Salt Lake County to provide efficient police and fire services in the Plan Area.Short Term Public Utilities, Police, Fire, Maintenance, Services and Infrastructure Incorporate pedestrian and bike paths in new development within the Plan Area and along 2200 West .Long Term Planning, Engineering, Transportation Services and infrastructure Built Environment/ Design Support the annexation of contiguous parcels within the Plan Area.Ongoing Planning, City Council Services and Infrastructure Built Environment/Design Natural Environment/ Preservation Implementation Table The following table includes a list of recommended key action items to achieve the vision for the Northpoint Plan Area. Implementation DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 35 Recommended Action Timeframe Responsibility Critical Path Category Adopt recommended updates to City’s zoning designations of M-1 and BP including codifying the Design Stands herein.Immediate Planning Built Environment/Design Evaluate funding solutions to redesign and construct 2200W improvements, including vehicular, stormwater, pedestrian, bicyclist, and landscape enhancements, such as a special tax district. Immediate City Council Services and Infrastructure Evaluate the feasibility of acquiring sensitive lands as City-owned open space.Immediate City Council Natural Environment/Preservation Prohibit new development facing 3200W and restrict through-traffic.Immediate Planning Built Environment/Design Natural Environment/Preservation Require new development in the Plan Area to obtain an environmental impact study.Short Term Planning Natural Environment/Preservation Built Environment/Design Require a border/buffer of at least 100 feet between wetlands and any site development (e.g. buildings, parking, site features and amenities) within the Northpoint Plan Area.Short Term Planning Built Environment/Design Natural Environment/Preservation Support the development of a new north-south collector within the Plan Area to mitigate traffic impacts to 2200 W.Short Term Planning Services and Infrastructure Coordinate with Salt Lake County to provide efficient police and fire services in the Plan Area.Short Term Public Utilities, Police, Fire, Maintenance, Services and Infrastructure Incorporate pedestrian and bike paths in new development within the Plan Area and along 2200 West .Long Term Planning, Engineering, Transportation Services and infrastructure Built Environment/ Design Support the annexation of contiguous parcels within the Plan Area.Ongoing Planning, City Council Services and Infrastructure Built Environment/Design Natural Environment/ Preservation DRAFT CHAPTER 4 TOOLKIT 38 Using the Toolkit The Northpoint Small Area Master Plan process spanned fifteen months and included one-on-one interviews, workshops, and other public events. As expressed by project participants, key desired outcomes for the future of the Plan Area include: »Create a program to support a variety of incentives to maintain or improve property values while preserving open space. »Identify a future land use plan that allows industrial and business development while maintaining quality of life for existing residential areas and preserving natural habitat. »Locate future development in a manner that can support the efficient provision of city services. »Identify appropriate buffering, building design, and development characteristics to reduce impacts to the environmental features and wildlife habitat associated with the Great Salt Lake. »Recommend methods to reduce the negative impacts that future land uses may have on air quality, water quality, noise, and light. »Recommend tools to acquire and/or preserve open space. »Recommend strategies to improve traffic flow and safety on 2200W. These desired outcomes suggest that while development in the Plan Area is in high demand, policies and strategies need to ensure that development is designed and arranged in a manner that respects the area’s sensitive landscape. Toolkit Overview DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 39 A variety of tools have been developed to protect natural open space and locate, configure, and design new development in a manner that protects both existing habitat and natural open spaces. The preservation tools described and analyzed in this Chapter represent existing and potential strategies for the protection of habitat and open space in the Plan Area. Tools have been categorized as Regulatory, Incentive, or Land Acquisition. This is not an all-inclusive listing of tools, but an inventory that details each potential tool, and provides examples. In addition to land preservation tools, this chapter covers financial tools available to fund improvements to or reconstruction of 2200W. The benefits and limitations of each tool have been compiled from a number of sources, including university research, other localities’ experiences, practical knowledge, and reports by individuals who have made their own evaluations. The implementation tools presented in this Chapter constitute a menu of options that can be considered to achieve the objectives of this Plan.DRAFT 40 Land Preservation Tools Regulatory based tools may be used to protect sensitive lands and agricultural areas within the Plan Area. These tools could be implemented by Salt Lake City through adoption of new zoning and subdivision ordinances. Development Code Updates Code updates establish supplemental land development requirements within a specific area requiring special attention, such as an environmentally sensitive area. Clustering of Lots and Open Space/Cluster Development Clustering is defined as a development pattern typically for residential use, in which homes are grouped together rather than evenly dispersed over the land as in a conventional development. Benefits Limitations »Easily implemented »Allows flexibility in design for developers »Can apply to multiple areas within a city »Time and cost effective »Additional zoning requirements »Not a permanent solution to protect land from development pressures Benefits Limitations »Protects the natural resources of an area »Creates wider wildlife buffers »Creates opportunity for greater profits by consolidating required open space into larger, more impactful sizes »Reduces impact of development on watersheds »Reduces cost to provide municipal public services depending on how clustering is accomplished »Additional zoning requirements »Not a permanent solution to protect land from development pressures »May not be a mandatory tool; thus there may not be assurance that desired project designs will be implemented by developersDRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 41 Special Standards and Design Guidelines Additional regulations in new development or redevelopment projects can include standards for elements like lighting, landscaping, building materials, noise, and landscape buffers. Benefits Limitations »Helps mitigate impacts of new development on existing habitat and wildlife »Easily implemented »Allows flexibility in site design while preserving area character and sensitive lands »Additional zoning requirements »May not be a mandatory tool; thus there may not be assurance that desired project designs will be implemented by developers »Can be difficult for local officials to enforce unless bonus criteria are clearly spelled out in an ordinance or policy document Sensitive Landscape Studies Studies can determine additional steps that should be taken to mitigate impact of new development to existing habitat. Benefits Limitations »Helps mitigate impacts of new development on existing habitat and wildlife »Easily implemented »Offers insight into specific site requirements for mitigation »Additional zoning requirements »Can be difficult for local officials to enforce because requirements and study results may vary based on specific sites of participants were in support of clustering lots and open space of participants were in support of development code updates of participants were in support of sensitive landscape studies of participants were in support of special standards 47% 30% 62% 37% Regulatory Based Tools DRAFT 42 Incentive Based Tools Conservation Easements Conservation easements are voluntary and legally binding agreements between a landowner (public or private) and a qualifying organization (also public or private), in which permanent limitations are placed on a property’s use and development. Conservation easements limit land to uses identified in the easement, and thus protect it from development. Benefits Limitations »Permanently protects land from development »Landowners may receive income, estate, and/ or property tax benefits »Land remains in private ownership and on the tax rolls »Tax incentives may not provide enough compensation for many landowners »Since program is voluntary, it can be challenging to preserve large tracts of contiguous land or specific areas to be protected Transfer of Development Rights (TDR) TDRs are tools that establish areas within a community for preservation (sending zones), and additional growth (receiving zones). Sending zones can be areas of agricultural land, open space, or other properties important to preserve. Receiving zones are areas that the community has designated as appropriate for additional or increased development. Benefits Limitations »Permanently protects land from development pressures »Landowner is paid to protect their land »Local government can target locations effectively »Low cost to local unit of government »Utilizes free market mechanisms »Land remains in private ownership and on tax rolls »Can be complex to administer »Receiving area must be willing to accept higher densities »Can be a difficult program to establish, especially in areas without city zoning »May require cooperative agreements among several local governments to establish sending and receiving zones Incentive based tools are voluntary and mostly based on the willingness of the landowner to sell title or an easement on their property. Where public access and use are desired, fee- simple ownership control is preferred through donation, purchase, or bargain sale of land to a government entity, conservation organization, or public charity. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 43 Purchase of Development Rights (PDR) PDRs refer to the purchase of development rights on certain parcels of land by a unit of government of a non-profit entity. Once purchased, a conservation easement is placed on the property. Benefits Limitations »Permanently protects land from development »Landowner is paid to protect their land, while allowing for ongoing use »Local government can target desirable locations effectively »Land remains in private ownership and on the tax rolls »Program is voluntary »Can be costly for local unit of government, therefore land is generally protected at a slower rate »Land remains in private ownership, typically with no public access »Because the program is voluntary, it can be challenging to preserve large tracts of contiguous land Preferred Development Sites Also known as priority or target development areas, these are locations that have been identified by a local government as favored for residential, commercial, and office growth based on adopted growth management policies and plans. Development can involve new construction, redevelopment, and/or adaptive reuse of buildings. Local governments may offer incentives, such as reduced fees or increased housing density to developments in these areas in order to make them more attractive to developers. Benefits Limitations »Land remains in private ownership and on the tax rolls »Local government can target locations effectively »Can be low cost to local unit of government »Can be a difficult program to establish and administer »Not a permanent solution, delays development in sensitive areas »Tax incentives may not provide enough compensation for many landowners of participants were in support of conservation easements of participants were in support of TDR Programs of participants were in support of PDR Programs of participants were in support of Preferred Development Sites 56% 30% 47% 25% DRAFT 44 Land Acquisition Tools Mutual Covenant A mutual covenant is an agreement between adjoining landowners to control future land uses through mutually agreed upon restrictions. Lease A lease is an agreement between agency and landowner to rent the land in order to protect and manage sensitive resources. Benefits Limitations »Permanent covenants can be enforced by any of the landowners or future landowners of the involved properties »Significant incentive to comply with restrictions, since all parties are aware of use controls »Can reduce property taxes »Loss in market value from mutual covenants does not qualify as a charitable deduction for income tax purposes »High cost Benefits Limitations »Low cost approach to site protection »Landowner receives income and retains control of property »An alternative for preservation-minded landowners not ready to commit to sale of permanent easement »Restrictions can be included in the lease to direct the activities of the conservation agency on the land »Short-term protection strategy »Leases are not permanent »High cost Acquisition and management of open space can be combined with regulatory measures to broaden the effectiveness of a preservation program. These tools preserve open space and their functions in the long-term. Although typically the most expensive solution, acquisition is the strongest and surest means of protection. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 45 Land Exchange Land exchange is the process by which land sought to be protected may be exchanged for another parcel that is more suitable for development Benefits Limitations »Lower acquisition costs »Scattered properties can be exchanged for a single, larger parcel »Complicated process »Not widely known and rarely used »Subject to IRS regulations »Property owners must be willing to participate, and properties must be of equal value »High cost Land Banking Land banking occurs when land is purchased and reserved for later use or development. Land could be leased for immediate use (e.g. agriculture or athletic fields) or held for eventual resale with restrictions. The local government functions as a land trust. Benefits Limitations »Local government proactively identifies and purchases resource land »Lowers future preservation costs by working as a defense against future increases in land prices, speculation, and inappropriate development »High cost »Requires large upfront expenditures »Public agency must have staff to handle land trust functions of acquisition, management, lease, or resale of participants were in support of Lease Agreements of participants were in support of Mutual Covenants of participants were in support of Land Banking of participants were in support of Land Exchange 29% 31% 27% 38% DRAFT 46 Financial Tools Overview Northpoint represents an opportunity for Salt Lake City to encourage economic development that is compatible with the unique natural and built environment of the area, including proximity to the Salt Lake City International Airport. This area is best suited for business park and industrial development yet is hampered by the lack of significant infrastructure including transportation options and high-quality fiber broadband to the area. To realize its potential, the area requires substantial infrastructure improvements. Funding options for these improvements are discussed in this section of the report. It is a challenging time to fund infrastructure as construction costs are rising rapidly, along with interest rates. Infrastructure is generally needed before development can occur, which means that revenues generated by the project are not available for funding at the time they are most needed. Rather, other funding means must be identified, with revenue streams generated from development used later as a payback mechanism. Economic development is a key component of generating new revenue streams and is addressed in the full Financial Implementation Report in Appendix D. This chapter contains with the potential funding mechanisms that such development could enable. Market Analysis Northpoint is suitable for industrial and agricultural use, with limited residential. The area is proximate to the Salt Lake City International Airport and, as such, experiences high noise levels that make residential development difficult. The industrial market is strong in Salt Lake County, with a vacancy rate of only 2.2 percent and rising lease rates which have increased from an average (NNN) rate of $0.53 in 4th quarter 2020 to $0.63 in 4th quarter 2021. Total Salt Lake County inventory approximates 135 million square feet, with 9 million square feet of space under construction. In the northwest quadrant of Salt Lake County, the vacancy rate is 2.65 percent, with year-to-date (YTD) absorption of 7.5 million square feet and an average asking rate of $0.60 (NNN). Based on vacant acreage in the Plan Area that the Salt Lake County Assessor’s Office currently classifies as industrial, the area could absorb an additional 650,000 to 1,000,000 square feet of industrial space. This appears reasonable given current absorption patterns and the shortage of industrial space in the market. The biggest obstacles to industrial development appear to be supply chain shortages, rising construction costs and rapidly escalating interest rates.DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 47 Financial Tool | Tax Increment Areas Through the creation of a tax increment area, tax revenues generated within the designated Plan Area are split into two components: »(i)Base Revenues | The amount available before the tax increment area is established. Base revenues are shared among a mix of local governments that have the power to assess taxes such as schools, cities, counties, and special districts; and »(ii)Incremental Revenues | These are tax revenues in excess of the base revenues that are generated by new growth in the Plan Area. If a Plan Area is created, the incremental tax revenues can flow to the Plan Area for a period of time to encourage economic development. Some states, including Utah, allow incremental local sales tax revenues, as well as property taxes, to flow to a Plan Area for a period of time. By giving exclusive use of incremental revenues to the Plan Area, the creation of a successful tax increment area generates a new revenue stream that can be used to pay for projects, provide incentives to developers, or collateralize tax increment bonds. The most common uses of tax increment have been for infrastructure such as roads, utilities, telecommunications, electrical upgrades and burying power lines, and parking structures. Tax increment has also been used for demolition, tenant improvements, land acquisitions, environmental cleanup, trails, lighting, signage, playgrounds, incentives to developers, economic development activities and housing. Utah currently allows for the enactment of three types of tax increment areas: »Community Reinvestment Areas (CRAs) »Transportation Reinvestment Zones (TRZs) »Housing & Transit Reinvestment Zones (HTRZs) Of these three types of tax increment areas, CRAs and TRZs could be used as financing tools for the Plan Area. HTRZs rely on density of housing and this type of development is not suitable for Northpoint. DRAFT 48 Community Reinvestment Areas (CRA) In Utah, tax increment areas have been known by a wide variety of names over time – RDAs, URAs, EDAs, CDAs, and now as CRAs or Community Reinvestment Areas. As of 2016, the Legislature combined all types of Plan Areas—urban renewal, economic development, and community development into a new single “Community Reinvestment Plan Area” (CRA). Existing Plan Areas will be allowed to continue, but all new Plan Areas will be known as CRAs. The CRA Budget may either be approved by a Taxing Entity Committee (TEC) or through Interlocal Agreement with taxing entities, except where the Agency chooses to conduct a blight study to determine the existence of blight and to utilize limited eminent domain powers, which requires the approval of the TEC of both blight and the budget. If there is a finding of blight, 20 percent of the tax increment must be set aside for affordable housing. For all other projects, 10 percent of the tax increment is required to be set aside for affordable housing, if the annual increment is over $100,000. However, housing funds may be spent for affordable housing statewide and are not limited to being spent within a Plan Area. Noticing and hearing requirements apply with the CRA designation. After the tax increment collection period has expired, the tax increment dollars that previously flowed to the CRA will flow to the taxing entities that levy the property taxes within the Plan Area. In most cases, taxing entities receive more property tax revenues annually following expiration of the tax increment collection period than before, as property values are likely to have increased significantly through the redevelopment process. Benefits Limitations »Creates a new revenue stream. »Requires cooperation of other taxing entities. »Relatively easy to create. »10% of revenues must be directed to affordable housing. »Flexible uses of funds. »Revenues may take years to build up as development occurs over time. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 49 Transportation Reinvestment Zone (TRZ) A TRZ is one type of area that can be formed where tax increment can be used to accelerate development within the defined Plan Area. According to Utah Code §11-13-103(22), “Transportation Reinvestment Zone” means an area created by two or more public agencies by interlocal agreement to capture increased property or sales tax revenue generated by a transportation infrastructure project. TRZs are ideal for projects such as Frontrunner, light rail, or major arterials that span multiple jurisdictions. Any two or more public agencies may enter into an agreement to create a transportation reinvestment zone but one of these entities must have land use authority over the TRZ area – in other words, Salt Lake City must be a partner in this endeavor. Benefits Limitations »Creates a new revenue stream. »Revenue directed to transportation projects will not be available to provide other services. »Relatively easy to create. »Requires cooperation between at least two entities. »Projected to produce substantial revenue stream over time. »Must find a nexus with transportation projects to justify use of the increment. »No affordable housing requirement. »Revenues may take years to build up as development occurs over time. DRAFT 50 Tax Increment Bonds Tax Increment Bonds were developed in California in 1952 as an innovative way of raising local matching funds for federal grants. They became increasingly popular in the 1980s and 1990s, when there were declines in subsidies for local economic development from federal grants, state grants, and federal tax subsidies (especially industrial development bonds). Tax Increment Bonds are collateralized by the incremental growth in property taxes within a given Plan Area. They capture the future tax benefits of real estate improvements to pay the present cost of those improvements. It is a financing strategy designed to make improvements to a targeted Plan Area or district without drawing on general fund revenue or creating a new tax. Benefits Limitations »Create a new revenue stream that can fund capital improvements and economic development. »Tend to carry higher interest and costs of issuance. »Creating entity does not have to bear financial burden alone but can share it with other taxing entities within a Plan Area. »Often require the cooperation and agreement of multiple taxing entities to generate sufficient incremental revenues to finance the desired infrastructure. »Tax increment revenues can be used to pay for administrative expenses. »Bonds can’t be sold unless the tax increment is already flowing or is imminent and nearly certain to flow or is enhanced by a government’s credit or other mechanism. »Financial and legal liability is limited by having a redevelopment agency. »Typically take longer from start to finish than other financing types. »Creating entity may gift tax revenues or property to provide incentives for development. »Critics of Tax Increment Bonds sometimes assert that tax increment is just a reallocation of tax revenues by which some municipalities win, and others lose. »Creating entity may be able to encourage or accelerate the timeframe of desired development types through offering tax increment incentives to the developer. »Mortgage on the property can also be given as bond security under Utah law in addition to incremental revenue. DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 51 Financial Tool | Public Infrastructure Districts (PIDs) PIDs are generally most successful in larger, undeveloped areas where there are significant infrastructure needs. Because the unanimous consent of all property owners is required for the creation of a PID, it is difficult to establish PIDs in areas with numerous property owners. However, portions of the study area could be included – especially those areas with larger parcels, fewer property owners, and significant infrastructure needs. If created, a PID can be combined with other revenue sources such as tax increment and those revenues could be used to pay the PID bonds. These funding tools may further facilitate development and increase property values, which may in turn provide for more opportunities to fund basic infrastructure (through tax increment financing or general tax collection). The PID tool allows for creation of a separate taxing entity in order to fund public infrastructure. Ultimate users of the property pay for the improvements via the taxing entity through property assessments. These assessments permit for bonding, allowing for covering upfront infrastructure expenses that are repaid over periods typically near 30 years. This tool results in higher property taxes for property owners/users in the defined district. Benefits Limitations »Create a new revenue stream that can fund capital improvements and economic development. »Tend to carry higher interest and costs of issuance. »Any debt issued is not on the books of the local government entity. »Cities may feel it limits public support for future tax rate increases or bond elections due to the perception of already-high rates. »Can raise a significant amount of revenue with legally-allowed tax rates of up to 15 mils. »Requires unanimous support of all taxing entities to put in place. »Accelerates development timeframe through upfront funding for capital costs. »Ongoing PID governance »Can reduce the need for impact fees. »Competitiveness of site with other sites given higher tax rates »Mortgage on the property can also be given as bond security under Utah law in addition to incremental revenue. »Cost is much lower than other development financing. DRAFT 52 Special Investment Areas (SAAs) Special Assessment Areas (“SAAs”), formerly known as Special Improvement Districts or “SID”s, are a financing mechanism that allows governmental entities to designate a specific area for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within a specified area. Entities can then levy a special assessment, on parity with a tax lien, to pay for those improvements or ongoing maintenance. The special assessment can be pledged to retire bonds, known as Special Assessment Bonds, if issued to finance construction of a project. Utah Code §11-42 deals with the requirements of special assessment areas. The underlying rationale of an SAA is that only those property owners who benefit from the public improvements and ongoing maintenance of the properties will be assessed for the associated costs as opposed to other financing structures in which all City residents pay either through property taxes or increased service fees. While more information about SAAs is included below, it could be difficult politically for the City to obtain support from a large number of property owners. Benefits Limitations »Bonds are tax-exempt although the interest cost is not as low as a GO or revenue bond »Forty percent of the assessed liability, be it one property owner or many could defeat the effort to create the SAA if they do not want to pay the assessment »No requirement to hold a bond election but the City must hold a meeting for property owners to be assessed before the SAA can be created »Some increased administrative burden for the City although State law permits an additional amount to be included in each assessment to either pay the City’s increased administrative costs or permit the City to hire an outside SAA administrator »Only benefited property owners pay for the improvements or ongoing maintenance »The City cannot assess government-owned property within the SAA »Limited risk to the City as there is no general tax or revenue pledge »Flexibility since property owners may pre-pay their assessment prior to bond issuance or annually thereafter as the bond documents dictate – if bonds are issued DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 53 Impact Fees Impact fees are one-time fees paid by new development to offset the capital costs associated with new development for basic utilities such as water, sewer, storm water, public safety, roads and parks/ trails. In order to collect impact fees, cities must carefully follow the requirements of Utah Code 11- 36a which includes the following major steps. »Prepare and pass a resolution authorizing study of an impact fee »Conduct an impact fee study to determine the appropriate amount of such a fee »Provide public notice of the possible fee 14 days prior to the public hearing »Hold a public hearing to take comment regarding the proposed fee Salt Lake City has already established impact fees that could be used to generate revenues on projects developed within its City boundaries. However, Salt Lake County would need to charge impact fees on the unincorporated areas of North Point. Impact fees collected would need to be spent on capital projects listed in each respective entity’s Impact Fee Facilities Plans (IFFPs). Therefore, careful coordination would need to take place between Salt Lake City and the County to ensure that the costs of needed projects are fairly allocated between the two entities. Benefits Limitations »New development pays for its fair share of the costs incurred by new development »Adds additional costs to development »Impact fees are generally paid when building permits are issued; therefore, funds are often not available upfront when infrastructure needs are greatest »Impact fees cannot be used to cure existing deficienciesDRAFT APPENDIX A EXISTING CONDITIONS 5656 Water and Air Quality Air Quality Salt Lake City is often faced with some of the worst air quality in the world. Major declines in air quality typically occur during the summer or winter due to the Salt Lake Valley’s unique geographical makeup and position. In the summer, wildfire smoke often travels east from California, Oregon, and the region’s mountain ranges adding to pollution from cars, industry, and other elements leading to harmful ozone levels. In the winter, close proximity to the Wasatch Mountains leads to temperature inversions in which cold air gets trapped under a layer of warm air, acting like a lid keeping pollutants from escaping. During the winter, air pollution sources are transportation (50%); area sources (e.g gas stations, auto-body shops, etc.) (35%); and industry (15%). The Plan Area experiences these same seasonal issues with air quality, as well as consistent impacts due to proximity of both the Salt Lake City International Airport, and I-215. I-215 limits connectivity to residential neighborhoods and services in both Salt Lake City and North Salt Lake City. With few daily services, such as grocery stores, within the expanded area, residents contribute to higher trips and higher mile traveled, exacerbating air quality issues. Graphic 1.3 | Regional Air Quality | Source: AirNow.Gov Graphic 1.4 | SLC Air Quality | Source: Scott Winterton Deseret News Existing Conditions DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 57 Water and Wetlands The presence of wetlands adjacent to the Jordan River Delta and at the edge of the Great Salt Lake is the most pertinent environmental issue in the area. Roughly 75% of Utah’s wetlands surround the Great Salt Lake, providing environmental and socioeconomic benefit. The wetlands surrounding the Northpoint Subarea are part of an intricate and diverse ecosystem. Wetlands benefit the environment by acting as sponges to capture, store, and slowly release water, storm buffers, groundwater and aquifer recharge, and sediment traps. Wetlands also serve as critical habitat areas by providing food, shelter, and resting places. Wetland benefits extend to provide recreational and agricultural opportunities. Graphic 1.5 | Wetlands Surrounding Northpoint | Source: National Wetlands Inventory A portion of these wetlands are designated playas, categorized by their dry, hollowed-out form that fill with water during rainstorms and by underlying aquifers. The Great Salt Lake is the largest saltwater lake in the Northern Hemisphere, meaning as the playas fill and eventually evaporate, they leave large salt deposits behind. Freshwater forested and shrub wetlands are found adjacent to the area, and are typically associated with woody plants such as willows. The current historic high water elevation for the Great Salt Lake is 4,211 feet last reached in 1986, and causing dramatic flooding. As of November 2021, the Lake’s water level has dropped to the lowest in recorded history at 4,190 feet, likely due to the extreme drought conditions the state is facing. In response to the unpredictability of the Lake, most planning agencies identify the contour of 4,217 feet, as the limit of safe development. Any new development must meet this minimum elevation. DRAFT 58 Soil Types The soil types within Northpoint vary and provide considerations for the types of development that can be accommodated in the Plan Area. The soil types dominating the area are fine sandy loam, silt loam and silty clay loam. Most of these soils have a water table depth between zero and fifty inches and are subject to the effects of frost. These high water table depths affect drainage and compressibility which impact new development potential. In addition, the soil types that dominate the area can cause problems for septic systems and filter fields, making it harder to maintain water quality. Natural Environment Graphic 1.6 | Recreational and Natural Landmarks Near Northpoint Graphic 1.6 | Prime Agricultural Soil | Source: National Resource Conservation Service DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 59 Hazards The greater Salt Lake City area faces natural hazards that impact rate and location of development. As climate change continues to exacerbate extreme weather events, planning with these common hazards in mind can help maintain the safety and comfort of the community. Clean air and water supply are among the top concerns of Salt Lake residents. In August of 2021, Salt Lake City was ranked the worst air quality of any major city in the world by IQAir.com, prompting residents to take extra precautions. The Salt Lake County Health Department released tips to stay safe during extreme air conditions such as staying indoors with windows shut, avoiding exercise, and wearing masks outdoors. The area, along with many other parts of the state, is currently under exceptional drought conditions, with fire restrictions and irrigation allotment reductions in place. Salt Lake City also experiences threats of extreme heat, wildfire, debris flows, flooding and earthquakes. Graphic 1.7 | Utah Drought Conditions | Source: National Drought Mitigation Center at University of Nebraska-Lincoln, 2021. Summer 2021 Drought Conditions The City of Salt Lake has proposed land use amendments to prevent large water users from being located within The City that may have a significant impact on The City’s water resources. The new limit for industrial and commercial land uses is 300,000 GPD (based on an annual average) of potable/culinary water. The limit applies to existing and new uses on a temporary basis until January 2022. DRAFT 60 Wildlife and Habitat The Great Salt Lake and surrounding wetlands are a crucial habitat for many species of animals. With 400,000 acres of wetlands, birds of regional and national importance are drawn to the area as a sanctuary for breeding and eating. Every year, millions of birds from 338 different species stop here to feed during migrations. Among the most common species observed in the Plan Area are the European Starling, Red-winged Blackbird, Yellow-headed Blackbird, Northern Pintail, and Canada Goose. Although the Farmington Bay area is classified as freshwater, the northern-most regions of the Great Salt Lake can be composed of nearly 28% salt. This creates a wide diversity of habitats for many different plants, invertebrates, reptiles, amphibians, mammals, and birds. European Starling DOMINANT BIRD TYPES IN NORTHPOINT Canada Goose. Red-winged Blackbird Yellow-headed Blackbird Northern Pintail DWR Bird Habitat Boundaries Graphic 1.8 | Dominant Bird Species in Northpoint Graphic 1.9 | Bird Habitat | Source: Department of Wildlife Resources GIS Data DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 61 Organizations There are many organizations with interest in the Plan and surrounding areas, including the Duck Clubs, Salt Lake City International Airport, and Friends of the Great Salt Lake. The Friends of Great Salt Lake is a nonprofit organization founded in 1994 to protect the Great Salt Lake ecosystem and increase public awareness and appreciation. The Rudy Duck Club, founded in 1909 and named after the original land owner Frank Rudy, acquired land and associated water rights in the early 1900s to preserve the ecosystem for private duck hunting. Agriculture The top producing crops in Salt Lake City, according to the 2017 Census of Agriculture, are wheat, hay, vegetables, pumpkins, and sweet corn. Within the Plan Area, current residents also own a variety of livestock. The majority of the housing stock supports the agricultural uses surrounding them. Within these lots there has been a pattern of subdividing larger lots into small lots for family members. There is a rich history of the agricultural lifestyle within Northpoint that the community desires to be preserved. According to the State Soil Conservation Service, the Plan Area contains prime farmland located north of 2800 North on the eastern side of 2200 West. Water Related Land Uses Graphic 1.10 | Water-Related Land Uses | Source: ESRI Living Atlas DRAFT 62 Built Environment 62 Airport The Salt Lake International Airport, located just south of the Plan Area, is one of the busiest airports in North America. The airport is also a major hub for Delta airlines and provides approximately 370 flights per day from its location. As the airport inherently produces high noise volumes and air quality issues, it has a significant impact on the surrounding areas and determining appropriate land uses in Northpoint. The Salt Lake Airport recently adopted a new Master Planing process, the first since 1998, to provide guidelines for future airport development and to optimize existing facilities for future aviation demand and increase airport capacity. The resulting strategic vision illustrates locations for a third parallel runway and Concourse C which are not anticipated to be built within the next twenty years. The City has formally regulated the land uses surrounding the airport to protect the greater community and reduce negative impact. In 1971, zoning ordinances were adopted allowed within Northpoint and in 1983, the zoning ordinances were supplemented with regulations that prohibited incompatible uses like residential housing. Development Constraints Existing development within Northpoint experience consequences from their proximity to the airport and overhead flights. Some existing residences face increased risk for airplane crashes and high noise levels from the consistent flights. The Department of Airports recommends limiting the number of new residences allowed in Northpoint to reduce harm for the community in the future. The Federal Housing and Urban Development Department (HUD) does not provide any assistance, subsidy or insurance for projects located in Runway Clear Zones, Clear Zones and Accident Potential Zones. As a result, this Plan considers alternative uses within those zones. The Salt Lake International Airport and Salt Lake City own several parcels surrounding the airport that were purchased to preserve as undeveloped. This, along with noise contours and influence zones limits development potential in the Plan Area. Northpoint lies within Influence Zone A/B meaning, the aircraft noise from overhead flights can interfere with daily living activities including sleep, conversations and listening to media. The Federal Aviation Administration (FAA) requires that each airport study the noise impacts and create a Noise Compatibility Program associated with alleviating noise issues. The Salt Lake City Noise Compatibility Program has implemented measures to increase compatibility with surrounding land uses Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community NORTHPOINT BOUNDARY SLC Airport-Owned Parcels Graphic 1.11 | Parcels Owned by the Salt Lake City International Airport | Source: Assessors Parcel Data DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 63 including maximization of flight times between 7am and 10pm. It has also implemented adjusted flight routes in pursuit of reduced disruption. As residential uses should be limited in Northpoint because of these constraints, there are other uses and opportunities for development that are more compatible with the airport. Economic Contribution The Salt Lake City International Airport, is a key driver of the local and regional economy. Through protecting airport infrastructure and facilities from adjacent land uses that reduce or eliminate its ability to function at the highest capacity, the Salt Lake City International Airport can continue to act as an asset to the greater community. SLC Airport Noise Contours SLC Airport Protection Overlays Graphic 1.12 | SLC Airport Noise Contours | Source: SLC GIS Data Graphic 1.13 | SLC Airport Overlays | Source: SLC GIS Data DRAFT 64 Land Use Industrial and Business Uses Within the Plan Area, there lies existing manufacturing zoning (M-1) that serves as a buffer between the airport and Interstate 215 (I-215). In July 2016, the City Council changed the zoning of properties located along 2200W between 2100N and North Temple Street to Light Manufacturing (M-1) to implement area master plans and maximize economic development potential. Light Manufacturing (M-1) allows for light industrial uses that produce little to no impact on neighboring properties and results in a clean, attractive industrial setting. This use is compatible with the adjacent airport and is less impacted by the negative aspects of nearby I-215 than residential uses. The M-1 designation allows more types of business than the Business Park (BP) designations. The more significant differences between the two zoning districts are related to open space and building location requirements. The BP designation requires 15% open space, while M-1 requires no open space. M-1 also has reduced setback requirements. Approximately half of the Plan Area is designated BP. The intent of the BP designation is to provide an attractive environment for modern offices, light assembly and warehouse development, and to create employment and economic development opportunities in a campus-like setting. Graphic 1.14 | SLC and SLCo Zoning | Source: SLC, SLCo, and North Salt Lake GIS Data DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 65 Agricultural and Residential Uses The Plan Area contains several agricultural zones under both City and County jurisdiction, including Salt Lake City’s (SLC) AG-5 and AG-2, and Salt Lake County’s (SLCo) A-2 zone preserves agricultural uses on lots no less than two acres and, similarly, AG-5 provides for agricultural uses on no less than five acres. The A-2 zone allows for low-density residential and supporting agriculture as a conditional use, on a minimum lot size of one acre. Zone Minimum Lot Area Front Setback Primary Uses M-1 (SLC) 10,000 sq.ft.15 ft.Light Manufacturing BP (SLC) 20,000 sq.ft.30 ft.Business/ Office AG-2 (SLC)2 acres 30 ft.Agriculture/ Single-Family AG-5 (SLC)5 acres 30 ft.Agriculture/ Single-Family A-2 (SLCo)1 acre 30 ft.Single-Family Graphic 1.15 | Residential in the Plan Area DRAFT 66 Utilities Broadband The Plan Area is serviced by a mix of fixed wireless and wireline (cable, dsl and fiber)broadband internet. Within the census tract that Northpoint occupies, 10.60% of households are without internet access. The companies serving the area are Centurylink for local exchange, Rocky Mountain Power for electric utility territory and Dominion Energy for natural gas. The Utah Broadband Plan adopted in January 2020 set a goal to “Utilize best practices to encourage continued expansion of broadband deployment and increase speeds for everyone to 25 Mbps or better in communities throughout Utah”. The Plan Area currently has network speeds of 90.47/28.05 Mbps and its max advertised consumer download speeds are 10,000.00 Mbps. Active Building Permits and Recent Development There are currently a few active building permits within Northpoint that congregate along the 2200 W roadway and fall under the M-1 and BP zoning designations. A new development called Moonlake Farms has an active engineering permit and is among one of ten active permits for growing cannabis in Utah. There is also a new Industrial Building being built just north of the Sherman Williams. Along the 2100N roadway, two new multi-tenant warehouse building have active permits as well. A key development proposal currently is the Swanner Subdivision, a 434-acre master planned development with about 5 million square feet of industrial on the C shaped parcel shown below currently zoned BP. This development would likely be cause for improvements on 2200 West to account for new increase in traffic. Another major development conversation in this area is the Misty River annexation and proposed development. This proposed 350-acre annexation was initiated from the land owners, who wish to annex their land into North Salt Lake from Salt Lake County in order to preserve 220 acres for Cross E Ranch to continue functioning as a working farm and develop 125 acres into a residential planned community of nearly 1,000 new homes. Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Ut a h I n l a n d Po r t A u t h o r i t y Proposed Swaner Subdivision Proposed North Salt Lake Annexation 22 0 0 W 2100 N 3200 N Graphic 1.16 | Active Applications DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 67 Industrial Wastewater The Salt Lake City Corporation’s pretreatment program oversees industrial wastewater discharged into the City’s sanitary sewer system. Industrial wastewater treatment, to reduce or eliminate conventional and toxic pollutants, prior to discharge into to the POTW (publicly owned treatment works) is required and regulated under the Clean Water Act. Salt Lake City is also undergoing redevelopment of its Water Reclamation Facility. The wastewater system will address new regulation from the Environmental Protection Agency (EPA) and Utah’s Department of Water Quality to reduce pollution and transform aging infrastructures. The Water Reclamation Center is located about a mile to the east of Northpoint and is replacing the old structure, which was 55 years old. Service Areas The Salt Lake City Public Utilities service area covers most of Northpoint with the exception of a portion to the north, just south of the Jordan River and a portion on the southern boundary. The remaining area is considered unincorporated territory. Though there are few sewer lines to this area, development is encroaching from the southeast and slowly extending utilities with it. Many residential and agricultural properties in this area rely on septic sewer systems. Street Lighting Public Utilities within Salt Lake manages and maintains more than 15,000 street lights, including those in Northpoint. The few residences and commercial customers within the area support street lighting through a monthly user fee, included in the bill for drinking water, wastewater, stormwater and sanitation services. The initial capital improvement program for street lighting in 2012 included a metric of converting the City’s entire inventory to high-energy efficiency LED lamps by the end of 2021. The continuous lighting maps do not extend into the Plan Area likely due to the lack of development in the area and the irregular Salt Lake City boundary. Irrigation Canals There are several irrigation canals running through Northpoint that serve the greater Salt Lake City area. The Rudy Drain runs diagonally across the study area from its connection to the Greater Salt Lake in the upper northwest quadrant to the lower southeast quadrant. Running along the western boundary is the Salt Lake City Canal Sewage. The southern boundary has a Reclamation ditch just north of the international airport. Graphic 1.17 | Utilities in Northpoint | Source: SLC GIS Data DRAFT 68 Transportation The eastern edge of the Plan Area runs along I-215, which acts as the main transportation route for the larger area. As Northpoint currently has little development beyond a small portion of residential housing to the northwest and light industrial to the south, the transportation routes within the Plan Area consist mainly of gravel roads. 2200 W divides the area into clear sections which suggest an informal development boundary along the roadway. Recent development in the area has almost exclusively been, between the roadway and I-215. Other roads in the 2019 Average Annual Daily Traffic Counts Plan Area include 3200W, a gravel road with minimal traffic that serves as the western boundary of the Plan Area, 3500N at the northern boundary, 2100N at the southern boundary, and several gravel and paved residential and commercial driveways. The main entries to the Plan Area are the exit from I-215 to 2100N from the south, and Center Street/3500N from the north. With increasing development pressure in the Plan Area, it will become increasingly important to make improvements to these interchanges and enhancements to 2200W. Public Transportation The public transportation options that connect the Plan Area are limited. The 454 Green bus line extends to Airport Station on the south side of Salt Lake City International Airport but does not reach the Plan Area. The closest bus line to the area is the F522 Line running north/south on 2200W. This bus line reaches the southern boundary and its final stop is near the Boeing warehouse. This bus line offers access to the light industrial and commercial businesses. This accessibility suggests that increasing the amount of industrial and commercial centers within the southern half of Northpoint would be supported by public transportation. Route 200 extends along Redwood Road to the southeast of Northpoint. However, this adjacent route is not Graphic 1.18 | Average Annual Daily Trips | Source: UDOT DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 69 accessible within a 15-minute walk of current homes of businesses within Northpoint. Bike Accessibility The major bikeways extending through the Plan Area are the Jordan River Trail, Parkway Trail, and a bike lane along 2200W and 2100N. The bikeways along 2200W and 2100N are designated medium comfort by Bike SLC. The painted bike lane disappears as the surroundings become more rural moving northbound through the Plan Area. These routes do not have high traffic but bikers must share the roads with vehicles in the same lanes. Economic Impact of Transportation Limited access to public transportation and the barrier of I-215 require households in the Plan Area to rely on personal vehicles or rideshare options to commute to and from work, errands, and schools. The Center for Neighborhood Technology recommends a household spend no more than 15% of their annual income on transportation. For a regional-typical household in this area, that means no more than $9,329. Households in this census block spend an average of $16,167- 175% higher than this benchmark. This is also higher than the Salt Lake City average of $13,211. Graphic 1.19 | Annual Driving Costs per Household | Source: Center for Neighborhood Technology Graphic 1.20 | Utah Transit Authority Bus DRAFT 70 Less ResidentsM ore Residents 70 Northpoint Community Demographics Over the last decade, Salt Lake City has grown by roughly 14,000 new residents. Most of this growth has been concentrated in downtown Salt Lake City, Central City, and Sugarhouse, each of which grew by over 2,000 residents between 2010 and 2020. Northpoint falls within the Westpointe Community Council area, which saw a population decrease (-1.6%) over the last decade. Approximately 140 people live within the Plan Area in roughly 60 households. City Council District 1, which encompasses the Plan Area boasts the largest share of Hispanic or Latino Population (48%) of all Council Districts. Economy 105 people are employed within the Plan Area but live elsewhere, and 74 Northpoint residents commute out of the area for work. No residents both live and work within the Plan Area. Of the jobs within the Plan Area boundary, Wholesale Trade (30% of the jobs) and Transportation and Warehousing (22%) are the most common industries. In 2018, about 54% of those jobs within the Plan Area boundary provided less than $40,000 per year in salary, roughly 63% of the median household income for overall Salt Lake City residents at $63,971. 105 People Commute IN for work 74 People Commute OUT for work 0 People Live and Work in the Area Population by TAZ Graphic 1.21 | Commuting Patterns and Population | Source: U.S. Census 2019 Less Residents More Residents DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 71 Within and immediately outside of the Plan Area, major employers include the Salt Lake City International Airport, Amazon, and the Salt Lake Mosquito Abatement Center. Those who live in the Plan Area have a higher median household income than the City as a whole at $75,791 and tend to work in the service industry, transportation and utilities, or manufacturing. Housing There are about 60 homes within the Plan Area and 1,487 housing units in the associated census tract. Housing is concentrated east of 2200W due to environmental constraints and airport impacts. Housing within the Plan Area is comprised entirely single-family housing units, some of which are agricultural properties. The Plan Area has a high rate of owner-occupied units at 85.4% and an average home value of $438,000. This is higher than the median price for the zip code as a whole at $346,900. The zip code saw a 24% increase in home prices between 2020 and 2021. The Center for Neighborhood Technology estimates that households within the Plan Area are spending on average, 47% of their income on housing and transportation costs every month. As Salt Lake County grows and expands west, combining housing and transportation costs into one number offers an expanded view of affordability by showing the impacts of a longer daily commute on the affordability of a community. The Center for Neighborhood Technology sets a housing and transportation spending benchmark of no more than 45% of a household’s income, rather than using the traditional rule of no more than 30% on housing alone. Funding the Future Salt Lake City Council approved a 0.5% sales tax increase in May 2018. This increase will typically generate about $34 million a year in ongoing funding and is the first part of a funding strategy to address street conditions, affordable housing, public transit, and neighborhood safety. The Plan Area could benefit from funding for an affordable housing program and increased neighborhood safety. 47% Housing: 23% Transportation: 24% Graphic 1.22 | Housing and Transportation Costs as Percent of Income Per Household | Source: Center for Neighborhood Technology DRAFT 72 Community Amenities The Plan Area is bordered by the Jordan River connecting Utah Lake to the Great Salt Lake, and passing through three counties. Many sections of the Jordan River have access trails running parallel to the river and connect nearby parks. Although the Plan Area lies adjacent to the River, the formal trail stops to the to the east of I-215. Directly east of the Plan Area are the Regional Athletic Complex, Jordan River OHV State Recreation Area, Westpointe Park, Northstar Elementary School, and Northwest Middle School. Only one crossing of I-215 allows for access to these areas. As shown below, I-215 severely limits access to community resources like schools, religious organizations, recreation, and other gathering areas. JORDAN RIVER OHV STATE RECREATION AREA JORDA N RIVER CENTER STREET TRAILHEAD COLISEUM FITNESS SPECTRUM ACADEMY FOXBORO ELEMENTARY NORTHWEST MIDDLE SCHOOL NORTHSTAR ELEMENTARY SCHOOL ROSEWOOD PARK GUADALUPE SCHOOL SALT LAKE CENTER FOR SCIENCE EDUCATION REGIONAL ATHLETIC COMPLEX UNITY BAPTIST CHURCHWESTPOINTE PARK Graphic 1.23 | Amenities near the Plan Area I 2 1 5 B A R R I E R DRAFT SALT LAKE CITY NORTHPOINT SMALL AREA MASTER PLAN 73 Graphic 1.24 | Trailhead map of the Jordan River DRAFT APPENDIX B PUBLIC INPUT APPENDIX C CONSTRAINTS APPENDIX D FINANCIAL ANALYSIS Report for Northpoint Small Area Plan Questionnaire Completion Rate:54.7% Complete 41 Partial 34 Totals: 75 Response Counts 1. What is your affiliation with the Northpoint area? Percent I am a resident I work in the area I own property I am interested in owning property I am a business owner I visit the area Other - Write In 0 5 10 15 20 25 30 35 Value Percent Responses I am a resident 29.7%19 I work in the area 17.2%11 I own property 31.3%20 I am interested in owning property 18.8%12 I am a business owner 9.4%6 I visit the area 25.0%16 Other - Write In 14.1%9 2. What is your level of support for special standards and design guidelines as a regulatory conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 3. What is your level of support for requiring sensitive landscape studies as a regulatory conservation tool? Percent 0 1 2 3 4 5 0 10 20 30 40 4. What is your level of support for development code updates as a regulatory conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 40 5. What is your level of support for the clustering of lots and open space as a regulatory conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 6. What is your level of support for conservation easements as an incentive-based conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 40 7. What is your level of support for purchase of development rights (PDR) as an incentive-based conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 40 8. What is your level of support for transfer of development rights as an incentive-based conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 9. What is your level of support for preferred development sites as an incentive-based conservation tool? Percent 0 1 2 3 4 5 0 10 20 30 40 10. What is your level of support for lease agreements as a land acquisition conservation tool? Percent 0 1 2 3 4 5 0 10 20 30 40 50 11. What is your level of support for mutual covenants as a land acquisition conservation tool? Percent 0 1 2 3 4 5 0 10 20 30 40 50 12. What is your level of support for land banking as a land acquisition conservation tool? Percent 0 1 2 3 4 5 0 10 20 30 40 13. What is your level of support for land exchange as a land acquisition conservation tool? Percent 0 1 2 3 4 5 0 5 10 15 20 25 30 35 40 14. What open space interaction elements would you like to see in the Northpoint Area? (select all that apply) 22% amenitizedtrailheads2.jpg22% amenitizedtrailheads2.jpg 49% Multi-Purpose Natural Trails49% Multi-Purpose Natural Trails 59% Fishing Access Along the River 59% Fishing Access Along the River 37% Wildlife Viewing Areas37% Wildlife Viewing Areas 49% Trails Along Natural Resources 49% Trails Along Natural Resources 22% Interpretive/Education Center22% Interpretive/Education Center 27% Interpretive/Educational Signage 27% Interpretive/Educational Signage 29% Boardwalks29% Boardwalks Value Percent Responses amenitizedtrailheads2.jpg 22.0%9 Multi-Purpose Natural Trails 48.8%20 Fishing Access Along the River 58.5%24 Wildlife Viewing Areas 36.6%15 Trails Along Natural Resources 48.8%20 Interpretive/Education Center 22.0%9 Interpretive/Educational Signage 26.8%11 Boardwalks 29.3%12 ResponseID Response My emphasis on maintaining open-space natural area rather than developing a park-like area. None Great ideas for the community. This is such a treasure that is Salt Lake City. The land needs to be preserved for future generations, plus people are not having children there may not be the need for more development such as empty commercial buildings. Once you destroy land for development, you cant reverse the damage. All of the above amenities are wonderful. However, who maintains them and fronts the development costs? The land being discussed does not naturally produce any of the above items pictured. We are old salt flats that grow things with a lot of encouragement. We have been trying to improve the ground for 50 years and have done a lot of good. However, one year of not planting and working hard takes away 50 years of work. The farms out here would not be successful if all of the farmers did not have other larger farms somewhere else or other businesses that help support the farm. I support whatever developments come to this area that give the land owners the best benefits of their property. I know everyone wants what improves their community but don't forget the land owners and the work they have done for lifetimes and they need their rights reserved as well. This ground work for homes and businesses family like the Rudy's .Drechsel's.Swaner's Hinkley's family farmed this ground but it's no longer feasible for making a living and the ground is there retirement you want to take it from them shame on you None - not appropriate in industrial areas. none - not appropriate in industrial areas None. Not applicable for an industrial area. Restrooms. Solar panels on roof. Art. Shade none, not appropriate for industrial area none, not appropriate for industrial area none not appropriate on my land no water or for industrial area Most of these are not appropriate for an industrial area. 15. What open space interaction elements would you like to see in the Northpoint Area? (select all that apply) - comments None, not appropriate for industrial area none-not appropriate for industrial area ResponseID Response 16. When imagining the future of the Northpoint area, how do you want to see 2200 WEST improved or enhanced? Which do you think may be most appropriate to the Northpoint area? (select all that apply) 15% Painted Bike Lane15% Painted Bike Lane 12% Buffered Bike Lane12% Buffered Bike Lane 17% Roundabout with Integrated Trail Alignments 17% Roundabout with Integrated Trail Alignments 22% Street with Flat Drain Pan Edge 22% Street with Flat Drain Pan Edge 49% Street with Porous Surface Edge 49% Street with Porous Surface Edge 29% Parkways Planted with Native and Low-Water Species 29% Parkways Planted with Native and Low-Water Species 5% Crosswalks with Striping and Planters 5% Crosswalks with Striping and Planters 20% Typical Curb and Gutter Street 20% Typical Curb and Gutter Street Value Percent Responses Painted Bike Lane 14.6%6 Buffered Bike Lane 12.2%5 Roundabout with Integrated Trail Alignments 17.1%7 Street with Flat Drain Pan Edge 22.0%9 Street with Porous Surface Edge 48.8%20 Parkways Planted with Native and Low-Water Species 29.3%12 Crosswalks with Striping and Planters 4.9%2 Typical Curb and Gutter Street 19.5%8 ResponseID Response Most of these options do not seem appropriate for 2200 West. What ever the design needs to implemented consistently rather than in piecemeal blocks. Such approach expensive and dangerous. We really don't need curb and gutter or sidewalks unless this area gets over developments by commercial buildings then we will need more for the residents. I do not think traditional curb and gutter are needed for the area, but some sort of drainage is needed. It is a popular biking path that needs more safety for cyclists. 17. When imagining the future of the Northpoint area, how do you want to see 2200 WEST improved or enhanced? Which do you think may be most appropriate to the Northpoint area? (select all that apply) - comments 18. What design elements are appropriate for new business and industrial development in the Northpoint area? 22% Integration of Community Solar or Solar Gardens 22% Integration of Community Solar or Solar Gardens 24% LID/LEED Elements (i.e. Green Roofs) 24% LID/LEED Elements (i.e. Green Roofs) 51% Wildlife-Friendly Lighting51% Wildlife-Friendly Lighting 27% Two-Story Live/Work Industrial Residential 27% Two-Story Live/Work Industrial Residential 29% Increased habitat/Wildlife Buffers 29% Increased habitat/Wildlife Buffers76% Integrated Xeriscape and Native Landscaping 76% Integrated Xeriscape and Native Landscaping 34% Wildlife-Friendly Fencing34% Wildlife-Friendly Fencing 29% Noise Mitigation Design Elements (e.g. textured noise walls) 29% Noise Mitigation Design Elements (e.g. textured noise walls) 22% Thematic Sitting Areas Blended with Landscape 22% Thematic Sitting Areas Blended with Landscape 24% Natural Building Materials24% Natural Building Materials Value Percent Responses Integration of Community Solar or Solar Gardens 22.0%9 LID/LEED Elements (i.e. Green Roofs)24.4%10 Wildlife-Friendly Lighting 51.2%21 Two-Story Live/Work Industrial Residential 26.8%11 Increased habitat/Wildlife Buffers 29.3%12 Integrated Xeriscape and Native Landscaping 75.6%31 Wildlife-Friendly Fencing 34.1%14 Noise Mitigation Design Elements (e.g. textured noise walls)29.3%12 Thematic Sitting Areas Blended with Landscape 22.0%9 Natural Building Materials 24.4%10 ResponseID Response Empyhasis on keeping natural habitat and implementing "green" approaches Wildlife and nature are friendly. dense and limited cars/roads One of the major safety issues would be for the migratory birds, because this area is wetlands that is being destroyed. You would have to put the lights and windows in consideration. Again, all very nice, all of the ideas that have been presented over the last several years get voted down. It seems impossible to present something that people will get on board with. I want the land owners to be able to develop their properties with the highest value and regular farming is just not a viable option economically. Walkable design. Sustainable design. No grass. 19. What design elements are appropriate for new business and industrial development in the Northpoint area? - comments ResponseID Response 5 Place a moratorium on development until the plan is in place. 6 The construction of 2800W to pull traffic off of 2200W 7 3200 West should remain unpaved. There should be a buffer/natural area along the eastern side of 3200 West. 10 Affordable Housing. Salt Lake City is missing a big opportunity to fill the gap in affordable housing by using the acreage in this area. We are in a housing crisis, there is almost no land left to build in Salt Lake, this is a HUGE opportunity that Salt Lake could miss to build more units that are desperately needed. This is not the time for us to complain about open space. Look at the Governor's initiatives and play your part. The mayor and city council of Salt Lake are all about helping the homeless, but if we don't build more housing units the homeless population will only rise. I think the direction that it appears we are heading with this questionnaire needs to be reconsidered to include more, dense residential units for Salt Lake City and Salt Lake County 12 Need to address annexation issues and multi-jurisdictional service coordination issues NEED TO SAVE CROSS E RANCH possibly by having SL County purchase property with funding from a variety of institutional entities including USU, LDS Church, SLCity, Davis County, NSLCity, and Open Lands foundationsl Need 6 mo. moratorium on new development until Northpoint Small Area Plan is completed. 13 Plan is a waste of tax payer dollars. The market will decide the highest and best use of land in the area. 16 Ive researched what has been going on out here over the last few years, with some property owners exploring being annexed into North Salt Lake because of the regulation barriers that Salt Lake City has shown. Find compromise with the landowners or SLC may lose some of this unincorporated land and development opportunity in this area. 19 This is an industrial area and business park zoning already exists and makes sense for this project. There are already protections in place of wetlands and habitats of threatened and endangered species. 2200W is already master planned with a 90' ROW road section. Developers who develop with frontage along 2200W are already required to improve and widen the sections of 2200 W that abut their property. Many of the single family home-owners in this area are already under contract to sell their property to business park developers. There is no reason to plan this area with the preservation of existing single family homes as a goal. 20. What else should the Northpoint Small Area Plan address? 22 The valley and particularly the westside is already saturated with air quality issues. Any commercial development should exclude air pollution inputs. Additionally, water supply and quality are major issues for the state and communities which callks for restrictions on water use and waste. 24 Update the community. 26 density and walkability is best for wildlife 28 Wetlands and the fact that they are endangered. There is becoming less space for wildlife. USDA has programs for Urban Agriculture. 31 Please don't forget about the residents! This survey was focused on business development and none of the questions focused on also preserving the residential zoning in the area. We are already being bullied by developers to sell our land so they can rezone for business. PLEASE DO NOT ALLOW REZONING FOR BUSINESSES IN THE VERY SMALL REMAINING RESIDENTIAL ZONED AREAS. There are plenty of open spaces for developers to build that don't require forcing us out of our homes. 33 Setbacks and landscape areas along major roads. 34 Three points: 1. Leave 3200 West unimproved. 2. Restrictions on zoning changes until master plan is complete 3. Set aside buffer/open space lands clustered east of 3200 West. 37 The small area plan needs to think about both sides. There are a lot of neighbors talking about conservation of their lifestyle but I'm pretty sure none of them is making their living from farming. I love this area more than the average person but, I also know the realities of farming and maintaining a farm and or open space. The county could maintain or develop some trails and require certain landscaping. I know that those kinds of requirements exist in all developments. I prefer they allow the land owners the right to sell/develop their properties. There are many options for good development in this area. Residents (37ish houses) along 2200 west have been against a business park development, industrial, and residential. They want it to remain the same as always. However, that cannot happen nor should it. 39 The homeowner and people that own businesses out there 48 Zoning of specific areas to BP or M1 52 Designate this land as light industrial in the future land use map. 54 Designate this land as light industrial in the future land use map. ResponseID Response 58 This area should be light manufacturing/industrial. With the 435 acres of BP, this whole area should follow suit. More tax basis for city, great area for business, less water usage than farmers, etc. 59 Water use. 60 Designate this land as light industrial in the future land use map 61 Designate this land as light industrial in the future land use map 63 Designate this land as light industrial in the future land use map 64 Designate this land as Business Park and/or Light Industrial 67 With the business park areas that have been approved, it makes the most sense for SLC to default to Business Park zoning for this North Point area. 70 Designate this land as light industrial in the future land use nap 71 Designate this land as light 75 Do we have the water to build more? How will building in this area further impact the Great Salt Lake? Very concerned about maintaining open space and not further taxing our diminishing water systems. ResponseID Response Report for Northpoint Property Owner Questionnaire Completion Rate:85.7% Complete 18 Partial 3 Totals: 21 Response Counts 1. What is your relationship with the Northpoint area? (select all that apply) Percent I own property here I live here I own a business here I work here 0 20 40 60 80 100 Value Percent Responses I own property here 100.0%17 I live here 70.6%12 I own a business here 17.6%3 I work here 11.8%2 2. In the Northpoint area how important is the conservation of habitat and ecosystems to you? 77% Highly Important77% Highly Important 6% Somewhat Important6% Somewhat Important 12% Neutral12% Neutral 6% Somewhat Not Important6% Somewhat Not Important Value Percent Responses Highly Important 76.5%13 Somewhat Important 5.9%1 Neutral 11.8%2 Somewhat Not Important 5.9%1 Totals: 17 3. In the Northpoint area how important is commercial and residential development to you? 41% Highly Important41% Highly Important 6% Somewhat Important6% Somewhat Important18% Somewhat Not Important18% Somewhat Not Important 35% Highly Not Important35% Highly Not Important Value Percent Responses Highly Important 41.2%7 Somewhat Important 5.9%1 Somewhat Not Important 17.6%3 Highly Not Important 35.3%6 Totals: 17 4. Would you support conservation methods and tools that could provide financial compensation to landowners for the preservation of natural lands and habitats instead of development? 59% Highly Support59% Highly Support 6% Somewhat Support6% Somewhat Support 24% Neutral24% Neutral 12% Highly Not Support12% Highly Not Support Value Percent Responses Highly Support 58.8%10 Somewhat Support 5.9%1 Neutral 23.5%4 Highly Not Support 11.8%2 Totals: 17 5. Would you support the continuation of existing land uses such as grazing, agriculture, habitat conservation, rural residential, and wildlife? 77% Highly Support77% Highly Support 6% Somewhat Support6% Somewhat Support 12% Neutral12% Neutral 6% Highly Not Support6% Highly Not Support Value Percent Responses Highly Support 76.5%13 Somewhat Support 5.9%1 Neutral 11.8%2 Highly Not Support 5.9%1 Totals: 17 ResponseID Response 4 No. 7 I am highly against any further building on the agricultural land out here. 8 The area is too close to the airport not to take advantage of this proximity to lessen the burden on existing infrastructure and lessen pollution. This can be done preserving habitat closer to the Great Salt Lake. 10 We need clean air and less big heavy trucks in this tiny road. We can't handle it. We pay our taxes just like everyone eon the east side we deserve more from the city. 13 Just because land in the area has always been zoned Business Park, it does not mean it should stay that way. I don't see how it was ever zoned BP or anything other than conservation when it is directly next to ecosystems that will be negatively impacted by development. I appreciate you asking for our opinions and for keeping the survey short, but I am somewhat disappointed in this survey as it feels lacking. It's not ideal to ask double barreled questions in surveys if you want honest answers. For example, my answer to supporting residential development is different than my answer to commercial development, but this survey can't reflect that. 14 I operate a recording studio off of 2200w and construction of anything will shut me down during construction and possibly forever. 15 Construction on 2200w is dangerous without some sort of alternate construction road in place before construction begins. 16 The area of 2200 west to 3200 west and 2100 north to 3300 north is a bird and wildlife refuge and one of the last open spaces in SL county. It needs to be preserved and not just overdeveloped like the rest of the valley is becoming. Thank you for your time. Robert Taylor 17 It would be the advantage of the area and ecology to think about NOT developing every lat inch of open space. This is a sensitive area. There is a high saturation of wildlife, migration and nesting areas here. It's a wetland. In a meet the committee was surprised to hear about the existence of wildlife. We see and experience it everyday. The delineation of preexisting residential areas should be recognized. This area was settled by ranchers and farmers who understood the doom of development. This area is a treasure and should be left alone OR very thoughtfully and carefully developed. The rate with which it is occurring now is always met with contempt and disagreement. There is another way and we should make a plan of best outcomes. 6. Is there anything you'd like to add? 20 I think the area can do both commercial and have some open space.. This area is not for residential? My opinion. I have seen residential next to airports and it's not nice at all.. 21 My family has been here for over 100 years. A lot of the older homes were built by family. Now with the restrictions of building and septic use. You can't let your children build a house on a 1/4 acre lot. I have had to have children move to wood cross to have there own home. The current restrictions render the ground useless for building anything. Yet keeping some space still for AG use. The bigger lots have all ready been sold to developers, the people left will be left with your open space weed patch and no money to move any where. ResponseID Response 7. Are you interested in recieving further information about this project and ways to get involved? 78% Yes please78% Yes please 22% No, thank you22% No, thank you Value Percent Responses Yes please 77.8%14 No, thank you 22.2%4 Totals: 18 Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Legend NorthPoint_Boundary-9 to -8-7 to -6-5-4 to -3-2-101 to 23 to 45 to 7 ¯ Northpoint Opportunity Areas Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Legend -10-9-8-7-6-5-4-3-2-10NorthPoint_Boundary ¯ Northpoint Constraint Areas Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Wetlands (-3)Airport Owned (-3)Easements (-2) Airport Influence Zones (-2, -1)Prime Ag Soil (-1) Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Noise Contours (-1) Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Legend 012345678NorthPoint_Boundary ¯ Northpoint Opportunity Areas Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community Proximity to Services (+3)Underutilized (+2)Vacant (+1) Large Parcels (+1)Access to Transportation (+1) 1 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 ECONOMIC DEVELOPMENT AND FUNDING OPTIONS Northpoint represents an opportunity for Salt Lake City to encourage economic development that is compatible with the unique natural and built environment of the area, including proximity to the Salt Lake City International Airport. This area is best suited for business park and industrial development yet is hampered by the lack of significant infrastructure including transportation options and high-quality fiber broadband to the area. To realize its potential, the area requires substantial infrastructure improvements. Funding options for these improvements are discussed in this section of the report. It is a challenging time to fund infrastructure as construction costs are rising rapidly, along with interest rates. Infrastructure is generally needed before development can occur, which means that revenues generated by the project are not available for funding at the time they are most needed. Rather, other funding means must be identified, with revenue streams generated from development used later as a payback mechanism. Economic development is a key component of generating new revenue streams and is addressed in this report, along with the potential funding mechanisms that such development could enable. MARKET ANALYSIS Northpoint is suitable for industrial and agricultural use, with limited residential. The area is proximate to the Salt Lake City International Airport and, as such, experiences high noise levels that make residential development difficult. The industrial market is strong in Salt Lake County, with a vacancy rate of only 2.2 percent and rising lease rates which have increased from an average (NNN) rate of $0.53 in 4th quarter 2020 to $0.63 in 4th quarter 2021. Total Salt Lake County inventory approximates 135 million square feet, with 9 million square feet of space under construction. In the northwest quadrant of Salt Lake County, the vacancy rate is 2.65 percent, with year-to-date (YTD) absorption of 7.5 million square feet and an average asking rate of $0.60 (NNN).1 Based on vacant acreage in the Northpoint area that the Salt Lake County Assessor’s Office currently classifies as industrial, the area could absorb an additional 650,000 to 1,000,000 square feet of industrial space. This appears reasonable given current absorption patterns and the shortage of industrial space in the market. The biggest obstacles to industrial development appear to be supply chain shortages, rising construction costs and rapidly escalating interest rates. 1 Source: Colliers, Salt Lake County Industrial Market Report 4Q 2021. 2 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 COMBINED COMPONENTS FOR FUNDING OPTIONS The available tools and issuing entities discussed in this report may be combined in a variety of viable options to arrive at the desired funding level for the Northpoint area. Possible funding mechanisms include the following, each of which is discussed in more detail in following sections. • Tax Increment Areas o Community Reinvestment Areas (CRAs) o Transportation Reinvestment Zones (TRZs) o Tax Increment Bonds • Public Infrastructure Districts (PIDs) • Special Assessment Areas (SAAs) • Impact Fees • Municipal Energy Tax TAX INCREMENT AREAS Through the creation of a tax increment area, tax revenues generated within the designated project area are split into two components: (i) Base Revenues – The amount available before the tax increment area is established. Base revenues are shared among a mix of local governments that have the power to assess taxes such as schools, cities, counties, and special districts; and (ii) Incremental Revenues – These are tax revenues in excess of the base revenues that are generated by new growth in the project area. If a project area is created, the incremental tax revenues can flow to the project area for a period of time to encourage economic development. Some states, including Utah, allow incremental local sales tax revenues, as well as property taxes, to flow to a project area for a period of time. By giving exclusive use of incremental revenues to the project area, the creation of a successful tax increment area generates a new revenue stream that can be used to pay for projects, provide incentives to developers, or collateralize tax increment bonds. The most common uses of tax increment have been for infrastructure such as roads, utilities, telecommunications, electrical upgrades and burying power lines, and parking structures. Tax increment has also been used for demolition, tenant improvements, land acquisitions, environmental cleanup, trails, lighting, signage, playgrounds, incentives to developers, economic development activities and housing. Utah currently allows for the enactment of three types of tax increment areas: • Community Reinvestment Areas (CRAs) • Transportation Reinvestment Zones (TRZs) • Housing & Transit Reinvestment Zones (HTRZs) 3 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Of these three types of tax increment areas, CRAs and TRZs could be used as financing tools for the Northpoint area. HTRZs rely on density of housing and this type of development is not suitable for Northpoint. COMMUNITY REINVESTMENT AREAS (CRAS) In Utah, tax increment areas have been known by a wide variety of names over time – RDAs, URAs, EDAs, CDAs, and now as CRAs or Community Reinvestment Areas. As of 2016, the Legislature combined all types of project areas—urban renewal, economic development, and community development into a new single “Community Reinvestment Project Area” (CRA). Existing project areas will be allowed to continue, but all new project areas will be known as CRAs. The CRA Budget may either be approved by a Taxing Entity Committee (TEC) or through Interlocal Agreement with taxing entities, except where the Agency chooses to conduct a blight study to determine the existence of blight and to utilize limited eminent domain powers, which requires the approval of the TEC of both blight and the budget. If there is a finding of blight, 20 percent of the tax increment must be set aside for affordable housing. For all other projects, 10 percent of the tax increment is required to be set aside for affordable housing, if the annual increment is over $100,000. However, housing funds may be spent for affordable housing statewide and are not limited to being spent within a project area. Noticing and hearing requirements apply with the CRA designation. After the tax increment collection period has expired, the tax increment dollars that previously flowed to the CRA will flow to the taxing entities that levy the property taxes within the project area. In most cases, taxing entities receive more property tax revenues annually following expiration of the tax increment collection period than before, as property values are likely to have increased significantly through the redevelopment process. TABLE 1: COMMUNITY REINVESTMENT AREAS – ADVANTAGES AND DISADVANTAGES Advantages Community Reinvestment Areas Disadvantages Community Reinvestment Areas Creates a new revenue stream. Requires cooperation of other taxing entities. Relatively easy to create. 10% of revenues must be directed to affordable housing. Flexible uses of funds. Revenues may take years to build up as development occurs over time. The Northpoint area contains roughly 1,323 acres and five tax districts. All of the tax districts are within Salt Lake City, with the exception of Tax District ACT that is found within unincorporated Salt Lake County. 4 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 TABLE 2: NORTH POINT EXISTING MARKET VALUES AND ACREAGE Property Values # of Parcels Total Market Value Residential Market Value Acres Tax District 13 63 $74,752,600 $30,700,900 666.83 Tax District 13 Q 3 $7,927,300 17.37 Tax District 13 I 3 $51,954,200 27.26 Tax District 13 R 14 $21,076,200 $1,529,600 27.01 Tax District ACT 47 $27,957,700 $12,251,900 584.37 TOTAL 130 $183,668,000 $44,482,400 1,322.84 Although there are five separate tax districts, districts 13 and 13Q include the same taxing entities; districts 13I and 13R also have the same taxing entities. The taxing entities and their tax rates are as follows: TABLE 3: TAX DISTRICTS AND TAXING ENTITIES Tax Rate Tax District 13 and 13Q Figure 1: Northpoint Tax Districts 5 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Tax Rate Salt Lake County 0.001777 Multi-County Assessing & Collecting Levy 0.000012 County Assessing & Collecting Levy 0.000196 Salt Lake City School District 0.004809 Salt Lake City 0.003424 Salt Lake City Library 0.000652 Metropolitan Water District Salt Lake 0.000253 Salt Lake City Mosquito Abatement 0.000115 Central Utah Water Conservancy District 0.0004 TOTAL 0.011638 Tax District 13I and 13R Salt Lake County 0.001777 Multi-County Assessing & Collecting Levy 0.000012 County Assessing & Collecting Levy 0.000196 Granite School District 0.007105 Salt Lake City 0.003424 Salt Lake City Library 0.000652 Metropolitan Water District Salt Lake 0.000253 Salt Lake City Mosquito Abatement 0.000115 Central Utah Water Conservancy District 0.0004 TOTAL 0.013934 Tax District - Unincorporated Salt Lake County 0.001777 Multi-County Assessing & Collecting Levy 0.000012 County Assessing & Collecting Levy 0.000196 Granite School District 0.007105 Central Utah Water Conservancy District 0.0004 Salt Lake County Municipal-Type Services 0.000051 Unified Fire Service Area 0.001594 Salt Lake Valley Law Enforcement Service Area 0.001973 Salt Lake County Library 0.000474 TOTAL 0.013582 The market value of the property is much higher than the taxable value in the area for several reasons. First, primary residential development is taxed at 55 percent of market value. Agricultural property is in greenbelt status and taxed at extremely low rates, and public properties are tax exempt. Therefore, while the market value is nearly $184 million, taxable value is estimated at roughly $67.9 million. 6 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 TABLE 4: ESTIMATED NORTHPOINT TAXABLE VALUE Estimated Taxable Value Tax Districts 13 and 13Q $37,500,000 Tax Districts 13 I and 13 R $20,400,000 Tax District ACT $10,000,000 Total Taxable Value $67,900,000 Taxable value will increase as development occurs in Northpoint. Of the 1,323 acres in Northpoint, approximately 437 acres are either vacant or held in agricultural use. TABLE 5: VACANT ACRES Vacant Acres Tax Districts 13 and 13Q Tax Districts 13I and 13R Tax District ACT Total Residential 8.34 19.81 28.15 Industrial 17.40 14.19 42.56 74.15 Agricultural 111.68 223.04 334.72 TOTAL Acres 137.42 14.19 285.41 437.01 For purposes of estimating future tax revenues, this study assumes that the residential and industrial vacant acres are developed as residential and industrial respectively and makes no assumptions about future development of the agricultural property. TABLE 6: PROJECTIONS OF FUTURE DEVELOPMENT Amount Residential Development Undeveloped acres 28.15 Units per Acre 2 Units developed 56 Average market value per unit $600,000 Average taxable value per unit $330,000 Total residential taxable value $18,480,000 Industrial Development Undeveloped acres 74.15 Floor area ratio 0.2* Taxable value per sf $200 Estimated taxable value $129,193,733 *If the floor area ratio (FAR) can be increased to 0.3, then the estimated total taxable value would increase to nearly $194 million For purposes of analysis, this report assumes that the majority of the development takes place in the unincorporated County, as it has the largest amount of vacant acres. The table below shows projections of roughly $2 million per year in additional property tax revenues from this area. 7 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 TABLE 7: PROJECTIONS OF FUTURE DEVELOPMENT Tax Rates - ACT Incremental Revenues Generated Salt Lake County 0.001777 $262,416 Multi-County Assessing & Collecting Levy 0.000012 $1,772 County Assessing & Collecting Levy 0.000196 $28,944 Granite School District 0.007105 $1,049,222 Central Utah Water Conservancy District 0.0004 $59,069 Salt Lake County Municipal-Type Services 0.000051 $7,531 Unified Fire Service Area 0.001594 $235,392 Salt Lake Valley Law Enforcement Service Area 0.001973 $291,360 Salt Lake County Library 0.000474 $69,997 TOTAL 0.013582 $2,005,705* *If the industrial development assumptions are increased to a FAR of 0.3, rather than 0.2, then annual incremental property tax revenues generated increase to nearly $2.9 million annually. A portion of these revenues could be allocated to a CRA for a period of time in order to pay for needed improvements and infrastructure in the area. TRANSPORTATION REINVESTMENT ZONE (TRZ) A TRZ is one type of area that can be formed where tax increment can be used to accelerate development within the defined project area. According to Utah Code §11-13-103(22), “Transportation Reinvestment Zone” means an area created by two or more public agencies by interlocal agreement to capture increased property or sales tax revenue generated by a transportation infrastructure project. TRZs are ideal for projects such as Frontrunner, light rail, or major arterials that span multiple jurisdictions. Any two or more public agencies may enter into an agreement to create a transportation reinvestment zone but one of these entities must have land use authority over the TRZ area – in other words, Salt Lake City must be a partner in this endeavor. 8 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 A TRZ is much like a Community Reinvestment Area (CRA) in that a portion of tax increment is pledged to the project for a specified period of time. The agreement between the two or more public entities must include the following, as specified in Utah Code §11-13-227(2): • Define the transportation need and proposed improvement • Define the boundaries of the zone • Establish terms for sharing sales tax revenue among the members of the agreement, if sales tax is to be included • Establish a base year to calculate the increase of property tax revenue within the zone • Establish terms for sharing any increase in property tax revenue within the zone • Hold a public hearing regarding the details of the TRZ Property tax revenues that are shared between members of the agreement are required to be incremental (Utah Code §11-13-227(2)(e). In order to identify incremental revenues, a “base year” needs to be established. The law clearly allows for the sharing of both sales tax and property tax revenue among the members of the agreement. There are advantages to governance with TRZs, as compared to CRAs, for projects that span multiple jurisdictions. In fact, there are only a few redevelopment areas in Utah that currently overlap multiple communities. While such are allowed by law, governance can be tricky. For example, in a CRA spanning two cities, each city would have its own redevelopment agency. Who then governs the project area? Joint RDA board meetings can be held, each agency board can meet separately, or there can be a MOU designating one of the RDA boards as the lead agency. Experience dictates that concerns often arise when more tax increment is generated in one jurisdiction of the project area than in another. There are often concerns about equity in spending funds in the same jurisdiction from which they come. Each redevelopment agency involved has to submit its annual report detailing the increment generated and how funds were spent, further exacerbating this concern. The TRZ overcomes many of these problems. First, with a TRZ, there is no requirement for RDA involvement, and therefore no need for RDA meetings. The TRZ is simply governed by an interlocal agreement signed by the parties. TRZs have proven effective in other states when projects cross multiple jurisdictions. With a TRZ there is no requirement to measure in which community increment is generated and where funds are spent. The purpose is simply to achieve an overall project. And only one annual report has to be filed for the TRZ – not separate reports for each participating entity. Another advantage to TRZs is the ability to obtain the commitment of transportation agencies, such as UDOT or UTA, for specific projects. Interlocal agreements between the public entity with the land-use authority and a transportation agency will identify the specific projects associated with the TRZ. This will add another level of certainty to local planning efforts and will give these public entities some additional leverage in prioritizing needed transportation projects. 9 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Advantages and Disadvantages The following table lists the advantages and disadvantages of funding transportation projects with tax increment generated in Transportation Reinvestment Zones: TABLE 8: TRANSPORTATION REINVESTMENT ZONES AS A FUNDING SOURCE FOR TRANSPORTATION PROJECTS. Advantages Transportation Reinvestment Zones Disadvantages Transportation Reinvestment Zones Creates a new revenue stream. Revenue directed to transportation projects will not be available to provide other services. Relatively easy to create. Requires cooperation between at least two entities. Projected to produce substantial revenue stream over time. Must find a nexus with transportation projects to justify use of the increment. No affordable housing requirement. Revenues may take years to build up as development occurs over time. TAX INCREMENT BONDS Tax increment Bonds were developed in California in 1952 as an innovative way of raising local matching funds for federal grants. They became increasingly popular in the 1980s and 1990s, when there were declines in subsidies for local economic development from federal grants, state grants, and federal tax subsidies (especially industrial development bonds). Tax Increment Bonds are collateralized by the incremental growth in property taxes within a given project area. They capture the future tax benefits of real estate improvements to pay the present cost of those improvements. It is a financing strategy designed to make improvements to a targeted project area or district without drawing on general fund revenue or creating a new tax. Ratings on tax increment bonds are tied to the performance of the area or district, not to the creating government’s general fund. As a result, the ratings differ from those of the creating entity’s general obligation rating. The rating of tax increment bonds hinges on local economics, trends, and taxpayer diversity, with taxpayer diversity being the most highly correlated statistic. Rating agencies evaluate whether the tax increment revenues could survive the loss of one or more top taxpaying property owners, how debt service could be managed in the case of broad-based decline of assessed value, real estate trends and historical assessed values in the designated area, and the types of properties located or being developed in the tax increment area. The assessed value of hotels is the most volatile, followed by warehouses, commercial, condos, and last residential. Many issuers opt to offer tax increment bonds on a non-rated basis. It is virtually impossible to secure a rating for or sell a tax increment bond before the increment is actually flowing, unless there is recourse to the local government’s credit or some other enhancement. 10 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Typically, tax increment bonds carry longer terms (anywhere from 10 to 30 years) and are purchased at a fixed rate using larger denominations of $100,000. There is usually no recourse to either the issuer or the developers who may benefit from the bonds. Pledged revenues vary, but a typical pledge is a senior security interest in the tax increment revenues as well as any debt service reserve funds. The bonds are often offered via a limited public offering and most often sold to institutional buyers (primarily mutual funds and occasionally property/casualty insurers) using a limited offering memorandum. It is typical to see interest capitalized for at least two to three years to allow increment to begin flowing before debt service payments are required from that increment. Unspent proceeds, capitalized interest and reserve funds are held by a Trustee. Debt service coverage covenants vary based on type of tax increment revenue and other security features associated with the bonds, but minimum coverage requirements are almost always at least 1.25 times annual debt service. Advantages and Disadvantages The following table lists the advantages and disadvantages of funding with tax increment bonds: TABLE 9: TAX INCREMENT BONDS AS A FUNDING SOURCE Advantages Tax Increment Bonds Disadvantages Tax Increment Bonds Create a new revenue stream that can fund capital improvements and economic development. Tend to carry higher interest and costs of issuance. Creating entity does not have to bear financial burden alone but can share it with other taxing entities within a project area. Often require the cooperation and agreement of multiple taxing entities to generate sufficient incremental revenues to finance the desired infrastructure. Tax increment revenues can be used to pay for administrative expenses. Bonds can’t be sold unless the tax increment is already flowing or is imminent and nearly certain to flow or is enhanced by a government’s credit or other mechanism. Financial and legal liability is limited by having a redevelopment agency.2 Typically take longer from start to finish than other financing types.3 Creating entity may gift tax revenues or property to provide incentives for development. Critics of Tax Increment Bonds sometimes assert that tax increment is just a reallocation of tax revenues by which some municipalities win, and others lose.4 Creating entity may be able to encourage or accelerate the timeframe of desired development 2 An RDA is a separate political subdivision which can enter into agreements with developers and issue the bonds. 3 It is difficult to estimate the time required for the “political” side of the process, which often requires significant infor mation sharing between local government and developers, including a public hearing for approval of the Project Area Plan and Budget. Setting aside the political requirements, the bond issuance process usually takes three to five months. 4 Critics of Tax Increment Bonds sometimes assert that some or all the increment is not attributable to the creation of the tax increment area and that the new property value growth would have occurred anyway. 11 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Advantages Tax Increment Bonds Disadvantages Tax Increment Bonds types through offering tax increment incentives to the developer. Mortgage on the property can also be given as bond security under Utah law in addition to incremental revenue. PUBLIC INFRASTRUCTURE DISTRICTS (PIDs) PIDs are generally most successful in larger, undeveloped areas where there are significant infrastructure needs. Because the unanimous consent of all property owners is required for the creation of a PID, it is difficult to establish PIDs in areas with numerous property owners. However, portions of the study area could be included – especially those areas with larger parcels, fewer property owners, and significant infrastructure needs. If created, a PID can be combined with other revenue sources such as tax increment and those revenues could be used to pay the PID bonds. These funding tools may further facilitate development and increase property values, which may in turn provide for more opportunities to fund basic infrastructure (through tax increment financing or general tax collection). The PID tool allows for creation of a separate taxing entity in order to fund public infrastructure. Ultimate users of the property pay for the improvements via the taxing entity through property assessments. These assessments permit for bonding, allowing for covering upfront infrastructure expenses that are repaid over periods typically near 30 years. This tool results in higher property taxes for property owners/users in the defined district. Consequently, benefits beyond the improved infrastructure can be included in the area. This can be in the form of better landscaping, street lighting, public spaces, parks, trails, finishes, etc. These benefits aid in creating property appeal, property value increases and in attracting top quality businesses. The PID tool also represents a valuable option for cities who are reticent to bond with property tax revenues in a standard tax increment collection area. Bonding permits for upfront infrastructure costs to be covered, oftentimes expediting development that may not have otherwise occurred. A city may create a PID with no increase in the tax rate and use the PID as a conduit to issue bonds. In this approach, the city is not financially responsible for the bond payments, and the bonding does not affect the city’s credit rating. The process for starting a Public Infrastructure District begins with a citywide policy. This represents a “30,000-foot” view of the tool for the municipality and merely outlines the guidelines as to how a developer should submit for a PID. The PID policy may incorporate specific goals and vision statements of the city. Once a policy is adopted, a developer may submit a letter of intent to create a PID. This is reviewed by the city, and if approved, governing documents are required to be submitted and approved 12 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 by the City Council. The simple passing of a general PID policy does not require the City Council to approve governing documents or letters of intent. Consequently, the PID policy represents another tool that can be used when appropriate. As of 2022, several cities throughout Utah have adopted PID policies and multiple public infrastructure districts have been formed. TABLE 10: PUBLIC INFRASTRUCTURE DISTRICTS AS A FUNDING SOURCE Advantages PIDs Disadvantages PIDs Create a new revenue stream that can fund capital improvements and economic development. Tend to carry higher interest and costs of issuance. Any debt issued is not on the books of the local government entity. Cities may feel it limits public support for future tax rate increases or bond elections due to the perception of already-high rates. Can raise a significant amount of revenue with legally- allowed tax rates of up to 15 mils. Requires unanimous support of all taxing entities to put in place. Accelerates development timeframe through upfront funding for capital costs. Ongoing PID governance Can reduce the need for impact fees. Competitiveness of site with other sites given higher tax rates Mortgage on the property can also be given as bond security under Utah law in addition to incremental revenue. Cost is much lower than other development financing. The current taxable value of North Point is approximately $68,000,000. The maximum mill rate allowed by Utah law is 0.015; however, districts are choosing to enact much lower rates. Politically, it would be nearly impossible to obtain the consent of the entire Northpoint area to create a PID. However, smaller sections that are wanting to encourage economic development could be developed as PIDs. The table below shows the amount of annual property tax revenues that could be generated for such a district given varying taxable values and varying tax rates up to the maximum of 0.015. TABLE 11: PUBLIC INFRASTRUCTURE DISTRICT ANNUAL REVENUES BASED ON VARYING MILL RATES AND TAXABLE VALUES Property Taxable Values 0.015 Mill Rate .0075 Mill Rate .004 Mill Rate $10,000,000 $150,000 $75,000 $40,000 $20,000,000 $300,000 $150,000 $80,000 $30,000,000 $450,000 $225,000 $120,000 SPECIAL ASSESSMENT AREAS (SAAs) Special Assessment Areas (“SAAs”), formerly known as Special Improvement Districts or “SID”s, are a financing mechanism that allows governmental entities to designate a specific area for the purpose of 13 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within a specified area. Entities can then levy a special assessment, on parity with a tax lien, to pay for those improvements or ongoing maintenance. The special assessment can be pledged to retire bonds, known as Special Assessment Bonds, if issued to finance construction of a project. Utah Code §11-42 deals with the requirements of special assessment areas. The underlying rationale of an SAA is that only those property owners who benefit from the public improvements and ongoing maintenance of the properties will be assessed for the associated costs as opposed to other financing structures in which all City residents pay either through property taxes or increased service fees. While more information about SAAs is included below, it could be difficult politically for the City to obtain support from a large number of property owners. While not subject to a bond election as is required for the issuance of General Obligation bonds, SAAs may not be created if 40 percent or more of those liable for the assessment payment5 protest its creation. Despite this legal threshold, most local government governing bodies tend to find it difficult to create an SAA if even 10-20 percent of property owners oppose the SAA. Once created, an SAA’s ability to levy an assessment has similar collection priority / legal standing as a property tax assessment. However, since it is not a property tax, any financing secured by that levy would likely be done at higher interest rates than general obligation, sales tax revenue or utility revenue bonds. Interest rates will depend on a number of factors including the ratio of the market value to the assessment bond amount, the diversity of property ownership and the perceived willingness and ability of property owners to make the assessment payments as they come due. Even with the best of special assessment credit structure, if bonds are issued they are likely to be non-rated and therefore would be issued at rates quite a bit higher than similar General Obligation Bonds that would likely be rated. All improvements financed via an SAA must be owned by the City and the repayment period cannot exceed twenty (20) years. Whenever SAAs are created, entities have to select a method of assessment (i.e. per lot, per unit (ERU), per acre, taxable value, market value, by linear foot frontage, etc.) which is reasonable, fair and equitable to all property owners within the SAA. State law does not allow property owned by local government entities such as cities or school districts to be assessed. TABLE 12: SPECIAL ASSESSMENT AREAS AS A FUNDING SOURCE Advantages SAAs Disadvantages SAAs Bonds are tax-exempt although the interest cost is not as low as a GO or revenue bond Forty percent of the assessed liability, be it one property owner or many could defeat the effort to create the SAA if they do not want to pay the assessment No requirement to hold a bond election but the City must hold a meeting for property owners to be assessed before the SAA can be created Some increased administrative burden for the City although State law permits an additional amount to be included in each assessment to either pay the City’s increased administrative costs or permit the City to hire an outside SAA administrator 5 Based on the method of assessment selected, i.e., acreage, front footage, per lot, etc. 14 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Advantages SAAs Disadvantages SAAs Only benefited property owners pay for the improvements or ongoing maintenance The City cannot assess government-owned property within the SAA Limited risk to the City as there is no general tax or revenue pledge Flexibility since property owners may pre-pay their assessment prior to bond issuance or annually thereafter as the bond documents dictate – if bonds are issued IMPACT FEES Impact fees are one-time fees paid by new development to offset the capital costs associated with new development for basic utilities such as water, sewer, storm water, public safety, roads and parks/trails. In order to collect impact fees, cities must carefully follow the requirements of Utah Code 11-36a which includes the following major steps. • Prepare and pass a resolution authorizing study of an impact fee • Conduct an impact fee study to determine the appropriate amount of such a fee • Provide public notice of the possible fee 14 days prior to the public hearing • Hold a public hearing to take comment regarding the proposed fee Salt Lake City has already established impact fees that could be used to generate revenues on projects developed within its City boundaries. However, Salt Lake County would need to charge impact fees on the unincorporated areas of North Point. Impact fees collected would need to be spent on capital projects listed in each respective entity’s Impact Fee Facilities Plans (IFFPs). Therefore, careful coordination would need to take place between Salt Lake City and the County to ensure that the costs of needed projects are fairly allocated between the two entities. Advantages and Disadvantages The following table lists the advantages and disadvantages of funding projects with impact fees: TABLE 13: IMPACT FEES AS A FUNDING SOURCE Advantages Impact Fees Disadvantages Impact Fees New development pays for its fair share of the costs incurred by new development Adds additional costs to development Impact fees are generally paid when building permits are issued; therefore, funds are often not available upfront when infrastructure needs are greatest 15 Northpoint Small Area Master Plan | DRAFT Economic Development and Funding Options Zions Public Finance, Inc. | May 2022 Advantages Impact Fees Disadvantages Impact Fees Impact fees cannot be used to cure existing deficiencies MUNICIPAL ENERGY TAX Salt Lake City has enacted the municipal energy tax to the full 6 percent allowed by law on all taxable portions of electric and gas bills. Therefore, any development that takes place in Salt Lake City would generate this additional revenue that could be used to assist with economic development and infrastructure costs in Northpoint. The municipal energy tax applies only to development that occurs in Salt Lake City and not in Salt Lake County.