Transmittal - 7/22/2022
REDEVELOPMENT AGENCY of SALT LAKE CITY
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: July 22, 2022
PREPARED BY: Erin Cunningham, Financial Analyst
RE: RDA Budget Amendment #1, FY 2022-2023
REQUESTED ACTION: Public Hearing and Board Discussion
BUDGET IMPACTS: The proposed First Amendment reallocates $1 million from prior year West
Capitol Hill holding accounts to finalize the Marmalade Plaza project and $3.9 million from Station
Center infrastructure budget appropriations to acquire State-owned property in Station Center.
The West Capitol Hill Fund for the Arctic Court Infill Home project of $280,000 would be reduced to
zero. It is anticipated the Agency will, in the future, request the use of affordable housing funds to finish
the infill housing project.
The Revolving Loan Fund Available to Lend Balance would be reduced from $3,689,968, as of June 30,
2022, to $2,969,968.
The CIP Depot District Project Fund would be temporarily reduced from $9,570,186 to $5,670,186 until
the reallocated funds can be replaced with proceeds from the RDA’s disposition of Station Center
property.
EXECUTIVE SUMMARY: The purpose of the briefing is to provide a preliminary budget proposal for
the First Amendment to the Fiscal Year 2023 RDA Budget (“Amendment”) to reallocate funds from prior
year budget holding accounts for two projects:
1. Marmalade Plaza in the West Capitol Hill Project Area: A total of $1 million is proposed to be
reallocated from the Arctic Court Infill House ($280,000) and the Revolving Loan Fund reserves
($720,000) for the Marmalade Plaza project.
2. Station Center in the Depot District Project Area: $3.9 million is proposed to be reallocated from
Depot District CIP funds (which were allocated for Station Center infrastructure improvements)
for the acquisition of State-owned Station Center property, which the RDA has an option to
purchase.
ANALYSIS & ISSUES:
Marmalade Plaza Project, West Capitol Hill
The Marmalade Plaza is the final piece of the RDA’s Marmalade Block to be constructed. The
Marmalade Branch library was completed in 2016, the Grove at Marmalade Townhomes were completed
in 2018, and the Harvest Apartments were completed this year. The RDA’s 2012 development strategy
for the block included a City Library branch to anchor and create a brand for a new commercial district on
the block, redevelopment of the remainder of the block with a mix of uses, and a public open space near
the center of the site. The open space was identified as a development amenity that would provide a
center for the neighborhood and improve pedestrian connections through the block, and the RDA’s
property dispositions required development on the block to be oriented toward this future open space.
The RDA, with the support of the Engineering Division, is preparing to advertise the Marmalade Plaza
project for qualified construction contractors to bid on. In general, current market forces are causing
construction bids to come in much higher than what was originally anticipated or budgeted for. This
challenge is amplified by the fact that construction bids are typically valid for only 45 days, after which
time contractors reserve the right to increase their bid amount. In anticipation of similar challenges, Staff
is preliminarily requesting the allocation of an additional $1 million to the Marmalade Plaza project to
supplement the current allocation of $2,945,600. The source of the additional funds includes $280,000
that was previously set aside in the West Capitol Hill Fund for the Artic Court Infill House, and $720,000
from the Revolving Loan Fund reserves.
Bids will be received in early September and Staff will provide an update to the Board at that month’s
meeting with a precise construction bid amount. If the entire $1 million allocation is not needed, the
excess funds will be returned to the Revolving Loan Fund. For the Arctic Court Infill Home, Staff will
return to the Board in the future to request the use of affordable housing funds to finalize the project.
The current funding allocations for the Marmalade Park project total roughly $2.9 million, as detailed in
the table below.
Current Allocations Amount
Public Services (Park Impact Fees) $1,145,394
Property Sale Proceeds $1,362,065
FY22 BA#2 - PIF Arctic Court Infill House Reallocation $338,141
FY22 BA#2 - WCH Interest Income $100,000
Total $2,945,600
It should be noted that the Second Budget Amendment for Fiscal Year 2021-2022 reallocated $150,000
from interest income to West Capitol Hill Projects. However, Staff anticipates that actual interest income
will be closer to $100,000, which will impact the amount of cash available. In addition to the interest
reallocation, the Board reallocated $338,141 from the Arctic Court Infill Home project that had been set
aside in the Program Income Fund.
In the Fiscal Year 2022-2023 Budget, an additional $100,000 in interest income was allocated to West
Capitol Hill Projects. However, as the cash is spent on the project, less interest will be accrued. Therefore,
that amount is not included in the table above since it is possible the interest will not be earned. Should
the interest be realized, it will be repaid to the Revolving Loan Fund.
Station Center Project, Depot District
The State of Utah owns three parcels at the corner of 500 West and 300 South, and the RDA and State
executed an agreement in 2003 that provides the RDA the exclusive option to purchase these parcels. The
acquisition of this property will allow the RDA to implement the Station Center site plan by combining its
property with the State’s property to provide the Woodbine Court right of way and create a developable
parcel on this corner. The Board previously directed staff to proceed with negotiations for the acquisition
under the terms of the option agreement with the State. The option agreement states that the purchase
price is the appraised value of the property, which is $3.9 million.
The RDA Board previously appropriated approximately $10 million for Station Center infrastructure
improvements. This funding is anticipated to be used to create three new mid-block streets, reconstruct
300 South into a pedestrian-oriented “festival street,” install new utilities with increased capacity, and
construct new streetscapes with landscaping, lighting, and furnishings. While these features are critical for
creating the transit-oriented, urban innovation district that is envisioned for Station Center, the RDA is
still working to plan the district and construction funds are not immediately needed. Therefore, this
budget amendment proposes to reallocate $3.9 million of infrastructure funding for the State property
acquisition, with the intent of replacing the reallocated infrastructure funds with proceeds from the RDA’s
future disposition of Station Center property.
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2021-2022 Budget.
2. Approval of the Fiscal Year 2021-2022 Budget Amendment #2.
3. Approval of the Fiscal Year 2022-2023 Budget.
ATTACHMENTS:
1. Preliminary FY23 BA#1 Budget Impact Slides.
Public Services (Park Impact Fees)$1,145,394
FY22 BA#2 -PIF Arctic Court Infill House Allocation $338,141
Property Sale Proceeds $1,362,065
FY22 BA#2 -WCH Interest Income $100,000
Total Current Allocation $2,945,600
+ Revolving Loan Fund Allocation $720,000*
New Project Total Budget $3,945,600
+ WCH Arctic Court Infill House Allocation $280,000
Revolving Loan Fund Available to Lend $3,689,968
-Marmalade Plaza Allocation $720,000
Remaining Available to Lend $2,969,968
WCH Arctic Court Infill House $280,000
-Marmalade Plaza Allocation $280,000
Remaining Budget $0**
Revolving Loan FundMarmaladePlaza Project
West Capitol Hill Arctic Court Infill House
*If the entire $1M is not necessary, the $720K from the RLF will be returned.**The Agency will request the use of affordable housing funds to finish the Project.
Budget Impact: Marmalade Plaza in the West Capitol Hill Project Area
Property Acquisition $0
+ CIP Depot District Project Allocation $3,900,000
New Project Total Budget $3,900,000
CIP Depot District Project Fund $9,570,186
-Station Center Property Acquisition $3,900,000*
Remaining Available to Lend $5,670,186
Station Center Infrastructure FundsStation Center Property Acquisition
*The Agency intends to replace the reallocated infrastructure funds with proceeds
from the RDA’s future disposition of Station Center property.
Budget Impact: Station Center in the Depot District Project Area
Fiscal Year:FY2022-2023
Department:Finance
Division:Policy and Budget
Prepared by:Mike Burns x6461
Initiative Name: RDA BA#1
Initiative Number:Entered by Finance
Initiative Type:Other
Was this request submitted with the annual budget?No
Can this request be covered with existing resources?Yes
Request is for rescope of current budget available.
Is this an emergency?No
Please include narrative about why this request is emergent in nature …
Why will this issue not be able to wait until next fiscal year?
Projects are underway for FY23.
Initiative Name: RDA BA#1
Initiative Number:Entered by Finance
Description
1. Rescope of funding previously allocated to West Capitol Hill Arctic Court Infill Home project and
the Revolving Loan Fund to West Capitol Hill Marmalade Plaza.
2. Rescope of funding previously allocated to Depot District Station Center Infrastructure to Station
Center Land Acquisition.
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Revenue Impact by Fund Current YTD
Expenses Current Budget Proposed
Budget Change
Proposed
Budget w/
Amendment
General Fund
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Internal Service Fund
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Enterprise Fund
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Other Fund
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TOTAL CHANGE IN REVENUE -
Initiative Name: RDA BA#1
Initiative Number:Entered by Finance
Accounting & Fund Detail
Expense Impact by Fund Current YTD
Expenses Current Budget Proposed
Budget Change
Proposed
Budget w/
Amendment
General Fund
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Net Change in GF Fund Balance -
Internal Service Fund
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Enterprise Fund
93 RDA - CIP
9350250 2700 1,136,952 280,000 1,416,952
9350350 279901 280,000 (280,000)-
9385850 2950 12,716,284 (720,000)11,996,284
9385400 2700 -720,000 720,000
9340001 2700 9,238,007 (3,900,000)5,338,007
9340650 2700 -3,900,000 3,900,000
Other Fund
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TOTAL CHANGE IN EXPENSE -
Initiative Name: RDA BA#1
Initiative Number:Entered by Finance
Accounting & Fund Detail
Initiative Name: RDA BA#1
Initiative Number:Entered by Finance
Grant Information
Funding Agency:
Grant Program:
Grant # :
CFDA # :
Grant Amount Requested:
Is a match required?
Matching type:
Matching percent:
Matching Funds Required:
Match is in the current budget?
Colloborating Agencies:
Grant Submittal Date:
Do options exist for continued funding?
Does the grant fund a position?
If yes, will the position be eliminated at the end of the grant:
Will the grant be completed in the grant funding time frame?
What are anticipated expenses for the City beyond the grant?
Please provide a brief description of the grant:
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Initiative Name: RDA BA#1
Initiative Number:Entered by Finance
FTE Information
Does the amendment fund a position?
What are total annual costs for the position? (Fully Loaded)
Does the current request reflect the fully loaded cost?
If not, are there additional funding options for future years?
What is the additional amount needed in future years?
Please provide a brief description of the position:
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