Transmittal - 9/29/2022
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: September 23, 2022
PREPARED BY: Erin Cunningham, Financial Analyst
RE: RDA Budget Amendment #2, FY 2022-2023
REQUESTED ACTION: Public Hearing and Board Discussion
BUDGET IMPACTS: The proposed Second Amendment identifies appropriations across multiple funds
and projects.
EXECUTIVE SUMMARY: The purpose of the briefing is to provide a preliminary budget proposal for
the Second Amendment to the Fiscal Year 2023 RDA Budget (“Amendment”). There are three proposed
amendments for the following:
Spark Gap Loan: In response to the support of a straw poll at the Board meeting on September 13, 2022,
the Agency is returning to the Board with a gap loan request of $4,000,000 for the Spark development.
Station Center Vision and Implementation Planning: Assumption of the consultant contract for the
creation of a Station Center Vision Plan. The effort would look to develop a planning and
implementation strategy for the Agency property. The request is to cover planning and marketing efforts
at a not to exceed the amount of $500,000.
Previously Approved Non-Represented Employee Compensation Study Adjustments: During the
Fiscal Year 2023 budget process, the City Council approved nine months of an increase in funding based
on the non-represented employee compensation study throughout the City. The Agency’s nine-month
adjusted amount of $46,805 was not included in its annual budget request and is requesting an
amendment to use the Agency’s Administration Fund balance to increase the RDA Personnel budget to
align with the compensation study findings.
ANALYSIS & ISSUES:
Spark Gap Loan
On September 13, RDA staff requested additional funding for Spark, a mixed-use, affordable housing
project located at 1500 W. North Temple in the North Temple Project Area. The Board approved a
$4,000,000 seller’s note as part of a land disposition, and unanimously supported a straw poll for
approving a gap loan request of $4,000,000.
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: ________________
Erin Mendenhall, Mayor Date sent to Council: ___________
______________________________________________________________________________
TO:Salt Lake City RDA Board DATE: September 27, 2022
Ana Valdemoros, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Chief Operating Officer
SUBJECT:RDA Budget Amendment #2, FY2022-23
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed first amendment to the Annual
RDA Budget for Fiscal Year 2023. Accept public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 0.00 $ 2,546,805.00
RDA CIP FUND 0.00 (2.500.000.00)
TOTAL $ 0.00 $ 46,805.00
September 28, 2022
September 29, 2022
EXECUTIVE SUMMARY:
The purpose of the second amendment (“amendment”) is to addresses the following items:
1. Funding rescope for Spark Loans
2. Rescope of funds for Station Center vision and implementation planning.
3. Compensation adjustment
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board. The
budget opening contains one item:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment #1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL
YEAR 2022-2023
WHEREAS, on June 14, 2022, the Redevelopment Agency (“RDA”) Board of Directors
(“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2022,
and ending June 30, 2023, in accordance with the requirements of Section 17C-1-601.5 of the Utah
Code.
WHEREAS, all conditions precedent to amend the RDA's final budget have been
accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this resolution is to amend the final budget of the RDA, as
approved, ratified and finalized by the Board on June 14, 2022.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder, which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2022, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
September 19, 2022
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
Initiative Number/Name Project Area Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time FTEs
1 Funding Rescope for Spark Loans NT - Capital - (1,500,000.00) One-time -
1 Funding Rescope for Spark Loans NT - 1,500,000.00 One-time -
1 Funding Rescope for Spark Loans CWH - (1,500,000.00) One-time -
1 Funding Rescope for Spark Loans CWH - 1,500,000.00 One-time -
1 Funding Rescope for Spark Loans RLF - Capital - (1,000,000.00) One-time -
1 Funding Rescope for Spark Loans RLF - 1,000,000.00 One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - (250,000.00) One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - (250,000.00) One-time -
2 Rescope of funds for Station Center Vision &
Implementation Planning.
DD - Capital - 500,000.00 One-time -
3 Compensation Adjustment Admin - 46,805.00 Ongoing -
-
Total of Budget Amendment Items - 46,805.00 - -
Total by Fund, Budget Amendment #2:
Redevelopment Agency RDA - 2,546,805.00 - - -
Redevelopment Agency - CP RDA -CIP - (2,500,000.00) - -
Total of Budget Amendment Items - 46,805.00 - - -
Fiscal Year 2022-23 RDA Budget Amendment #2
Section G: Board Consent Agenda -- Grant Awards
Section I: Board Added Items
Section A: New Items
Section B: Grants for Existing Staff Resources
Section C: Grants for New Staff Resources
Section D: Housekeeping
Section E: Grants Requiring No New Staff Resources
Section F: Donations
Board ApprovedAdministration Proposed
1
Initiative Number/Name Project Area Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time FTEs
Fiscal Year 2022-23 RDA Budget Amendment #2
Board ApprovedAdministration Proposed
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
FY 2022-23
Adopted Budget RDA BA #1Total RDA BA #2 Total Total To-Date
Redevelopment Agency 50,172,718 - 2,546,805.00 52,719,523
Redevelopment Agency CIP 13,128,181 - (2,500,000.00) 10,628,181
Total of Budget Amendment Items 63,300,899 - 46,805.00 63,347,704
Certification
Budget Director
Deputy Director, City Council/RDA Board
Contingent Appropriation and Notes
2
As noted in the attached Staff Memo from August 22, 2022, the seller’s note and gap loan requests are in
addition to the $2,500,000 the Agency awarded Brinshore Development as part of the 2018 Notice of
Funding Availability (“NOFA”) for affordable housing, and the $3,956,000 awarded in the 2019 NOFA.
The result of the gap loan request will raise the loan to $10,456,000, bringing the total financing to
$14,456,000 with the seller’s note.
Staff proposes reallocating funds from the following sources to fund the $4,000,000 gap loan:
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Primary
Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds $2,936,762 $1,500,000 $1,436,762
Multiple Housing Development Loan
Fund (HDLP) - Fall NOFA $7,000,000 $1,000,000 $6,000,000
Station Center Vision and Implementation Planning
In fall 2021, the University of Utah (U of U) released a request for proposals (RFP) from qualified
consulting firms or individuals for the creation of the Station Center Vision Plan, a master planning
document that would consider U of U and RDA-owned properties in the Station Center area (500 – 600
West, 200 – 400 South). By the end of 2021, the U of U had shortlisted and selected a consultant team
comprising Perkins & Will, HR&A Advisors, Kimley-Horn, and Phil Myrick, placemaking expert. The U
of U followed a public solicitation process as required by the State of Utah and allowed RDA Staff to
participate in the drafting of the RFP document, shortlisting of consultants, consultant interviews and
selection, and drafting of the final scope of work for the Vision Plan but did not ask for a financial
contribution.
The Vision Planning effort was launched in 2022 and the consultant team completed initial tasks and
hosted one community engagement event before the U of U experienced a change in leadership and
development priorities. New leadership has spent the past few months evaluating the U of U’s planned
role and level of participation in the project and it was determined that the RDA should assume ownership
of the Vision Plan, with both parties remaining open to opportunities to collaborate as adjacent Station
Center property owners.
The RDA remains committed to the vision of a diverse, mixed-use, sustainable, equitable and inclusive
development at Station Center. An effort of this scale and importance warrants the creation of an upfront
development and implementation strategy. To complete this in the most time efficient manner, Staff is
proposing to re-engage the same consultant team that the U of U hired at the end of 2021 and resume
work on the following deliverables as soon as possible (not comprehensive, final scope TBD):
• Authentic community engagement effort that brings new partners into the fold, including nearby
Westside residents, community leaders, institutional partners, businesses, and nonprofits, and
coordinates with other nearby redevelopment efforts;
• Real estate market analysis to assess the appropriateness of anticipated land uses, including
commercial office, lab, residential, and retail spaces, and feasible affordability mix;
• Illustrative site plan that locates proposed land uses, shared parking areas, vehicular circulation
and loading/service patterns, open space and pedestrian network, and more;
• Recommended placemaking, programming, and activation strategies;
• Development phasing and property disposition strategy that incorporates best practices for
equitable development and provides opportunities for various types of development teams;
• Innovation industry partnership strategy that outlines best practice approaches to identifying and
recruiting prospective tenants, and integrating them into the future district;
• Refinement of Station Center Design Guidelines to reflect anticipated land uses and increased
building height allowances in the Gateway Mixed-Use zoning district;
• Information necessary to submit a competitive application to establish a Housing and Transit
Reinvestment Zone (HTRZ) around the UTA Intermodal Hub.
With the RDA being the primary and lead client, Staff has identified an opportunity to include the RDA-
owned Central Station properties (100 South, near 600 West) in the scope of the Vision Plan. The Station
Center and Central Station properties are in close geographic proximity, separated by UTA-owned
properties that will soon be redeveloped as well. Considering these properties and redevelopment plans in
a holistic manner will result in the most feasible and marketable development program. It is also the
RDA’s intent to use deliverables of the Vision Plan effort to prepare and submit to the State an
application to establish an HTRZ around the Intermodal Hub, which, if approved, would help fund the
planned redevelopment activity in the area.
The budget request is to cover planning and marketing efforts at a not to exceed the amount of $500,000
and Staff proposes reallocating funds from the following sources for this purpose:
Fund Program Current
Amount
Requested
Amount
Updated
Amount
Depot District CIP Depot District Project Fund
(Station Center Infrastructure) $5,670,186 ($250,000) $5,420,186
Depot District Central Station $664,121 ($250,000) $414,121
Depot District Station Center Vision and
Implementation Planning $0 $500,000 $500,000
Previously Approved Non-Represented Employee Compensation Study Adjustments
Staff is formally requesting an increase in Personnel expenses in its Administration Fund to account for
the nine months of funding for the non-represented employee compensation study that was previously
approved by the City Council. At the time of the Fiscal Year 2023 budget presentations, the RDA did not
have specific information available to include this compensation adjustment for non-represented
employees.
The projected annual total is $62,407, which brings the approved nine-month total to $46,805. It is not
anticipated that Agency will be able to absorb the compensation adjustment within the fiscal year’s
budget and is requesting a transfer from the Administration fund balance to ensure its compensation
budget is adjusted at the same time as other impacted City employees.
Fund Description Current
Amount
Requested
Amount
Updated
Amount
Administration RDA Personnel $2,480,095 $46,805 $2,526,900
Administration Approximate Fund Balance $2,000,000 ($46,805) $1,953,195
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2022-2023 Budget.
2. Approval of the Fiscal 2022-2023 Budget Amendment #1.
3. Authorization of a seller’s note and a straw poll with unanimous support for a gap loan for the
Spark development.
ATTACHMENTS:
1. Staff Memo (August 22, 2022): 1500 W. North Temple redevelopment project with Brinshore
Development
2. Staff Memo (July 22, 2022): RDA Budget Amendment #1, FY 2022-2023, July 22, 2022
3. FY23 – Budget Amendment #2 Impact Slides
REDEVELOPMENT AGENCY of SALT LAKE CITY
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
DATE: August 22, 2022
PREPARED BY: Corinne Piazza and Kate Werrett, Project Managers
RE: 1500 W. North Temple redevelopment project with Brinshore Development
REQUESTED ACTION: Approval of terms for a Seller’s Note as part of the land disposition and
consideration of a $4,000,000 gap loan request to Brinshore Development
for a mixed-use, affordable housing project located at 1500 W. North
Temple in the North Temple Project Area.
POLICY ITEM: Land Disposition & Affordable Housing
BUDGET IMPACTS: Land Disposition: $4M Seller’s Note, paid back plus interest, does not
require the Agency to use any upfront funds.
Gap Loan: $4M Agency gap loan, paid back plus interest (specific funding
sources to be determined).
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“Agency”) selected
Brinshore Development (“Brinshore”) through a Request for Proposals (“RFP”) process in 2018 to
redevelop the Agency’s property located at 1500 W. North Temple (“Property”), formerly the location of
the Overniter Motel. The Property is designated as an RDA Tier I Property due to it being over 2 acres (at
2.07 acres) and identified in a City adopted master plan, specifically as an “ideal spot for a signature transit-
oriented development” in the Cornell Station Area Plan. Please see Attachment A: Parcel Location Maps
for reference.
Brinshore’s concept for the project, known as Spark (“Project”) implements the Agency’s vision for the
Property based on the goals and objectives outlined in the North Temple Project Area Plan, the North
Temple Boulevard Plan, city priorities, and as outlined in the RFP. The Project is designed to deliver a total
of 200 units of workforce and family-size affordable housing, including 63 family-sized units ranging from
20-80% AMI and two, three, and four-bedroom units. Additionally, the Project includes neighborhood
serving commercial space, structured parking, a mid-block walkway that connects Cornell Street and 1460
West (to be publicly accessible and privately owned and maintained), a high level of concern for
architectural and urban design principles, transit-oriented design, maximized density, sustainable
construction and building design practices, as well meeting Davis Bacon fair wage requirements for
construction.
The Project began in 2018 and is now in the final due diligence stage with Brinshore finalizing their capital
stack in anticipation of closing by the end of the year. The Project received Low Income Housing Tax
Credits (“LIHTC”) and as such, has a closing deadline of March 1, 2023. The Project is anticipated to begin
construction in Spring 2023 with Project completion in 2024.
The proposed capital stack includes the following requests from the developer:
• The Agency finance the $4,000,000 sale’s price of the Property (“Seller’s Note”). The purchase
price was determined in the RFP and 2018 Purchase and Sale Agreement between Brinshore and
the Agency. The Seller’s Note will be paid back in full plus interest.
• The Agency provide an additional $4,000,000 in loan proceeds (“Gap Loan”) to cover the
remaining financing gap that has occurred due to escalating construction costs and remains even
after the developer secured additional funding sources and implemented cost saving measures to
reduce Project costs.
These requests are in addition to the $2,500,000 the Agency awarded Brinshore as part of the 2018 Notice
of Funding Availability (“NOFA”) for affordable housing and the $3,956,000 the Agency awarded
Brinshore in the 2019 NOFA.
RDA FINANCE COMMITTEE RECOMMENDATION:
On August 15, 2022 the Finance Committee (“Committee”) convened to review the Seller’s Note terms,
the $4,000,000 Gap Loan request, and Gap Loan terms. The Committee unanimously recommends
approval of the funding request and the terms as outlined in the following: Attachment B: 1500 W. North
Temple - Seller’s Note Term Sheet and Resolution and Attachment C: 1500 W. North Temple – Gap Loan
Term Sheet.
ANALYSIS & ISSUES:
Since entering into a Purchase and Sale Agreement with the Agency in 2018, Brinshore has been actively
pursuing financing for the Project, which is estimated at ~$93 million. To date, Brinshore has secured
funding through 4% Low Income Housing Tax Credits and received ~$42.5 million in the competitive
application process. Additionally, Brinshore has secured the following*:
Source Amount
4% Low Income Housing Tax Credits (LIHTC) ~$42,540,000
State Tax Credits ~$1,280,000
Permanent Loan ~$26,700,000
Seller’s Note Financing ~$4,000,000
RDA Loan (Including Gap Financing Request) ~$10,456,000
SLC HOME Funds (SLC Housing Sustainability) ~$1,000,000
State Olene Walker HOME Funds ~$1,000,000
State Olene Walker HTF Funds ~$1,000,000
Salt Lake County HOME Funds ~$700,000
Philanthropic Money ~$1,500,000
Rocky Mountain Power Rebate ~$100,000
Deferred Developer Fee ~$3,000,000
Total ~$93,276,000
*Please note that the financing information is high level and represents only general commitments or
estimates at this time and is subject to change as Project financing progresses.
SELLER’S NOTE FINANCING:
Brinshore is requesting that the Agency finance the $4,000,000 sales price of the Property in the form of a
Seller’s Note. In accordance with the Real Property Disposition Policy for Tier I properties, the Board was
provided an update on the pre-disposition, developer selection, and developer agreement process. The
proposed Seller’s Note of $4,000,000 is based on the appraised value when the property was purchased and
was determined via the 2018 pre-disposition and RFP process and subsequent Purchase and Sale Agreement
between the Agency and Brinshore.
The Seller’s Note financing includes the following:
• The full repayment to the Agency, plus interest to invest in new projects in the future.
• The Agency does not use any current funds to finance the Seller’s Note.
• The Agency will receive payments over time which helps offset upfront construction costs and
makes the Agency’s public benefits requirements within the Project more feasible.
The requested interest rate for the $4,000,000 Seller’s Note is 1.25%. Agency staff has negotiated this rate
with Brinshore based on Project financials and full repayment of the Seller’s Note, plus interest, within a
30-year timeframe and cash flow repayment.
Agency staff recommends approval of the Seller’s Note in accordance with the Agency’s existing
contractual obligations and commitment to the Agency’s extensive public benefits requirements for the
Project.
For full terms and details of the Seller’s Note, please see: Attachment B: 1500 W. North Temple - Seller’s
Note Term Sheet and Resolution.
GAP FUNDING REQUEST:
Due to escalating construction costs, the Project has seen a significant cost increase which has created a
funding gap. In order to move forward with a financially feasible Project, Brinshore has addressed the
funding gap in the following ways:
Additional Funding Sources: Brinshore has applied for and received $500,000 in Utah Housing Corporation
increased basis. They’ve also applied for philanthropic funds as well as an additional $1,400,000 from
Olene Walker, neither of which have been finalized or awarded.
Value Engineering: Brinshore has worked with their design, engineering, and construction team to identify
approximately ~$6,100,000 in cost savings, while still preserving the overall goals for the Project.
Modifications include the removal of a level of underground parking reducing spaces from 134 to 100,
removing the balconies, reconfiguring a portion of the units, and reducing the green roof space.
Developer Contribution: As the Agency’s selected private-sector partner, Brinshore brings extensive
development expertise and borrowing capacity to invest into the Project and carries significant risk to
complete the Project that the Agency does not have to assume. Brinshore’s equity contribution includes the
following:
• Funding predevelopment (~$1,600,000)
• Deferred developer fee ($3,000,000)
• Guarantees (construction completion, operating deficit, tax credit compliance)
• Commercial Master Lease (~$70,000/year)
After securing the additional sources of funds listed above and implementing cost saving measures, the
Project still faces a $4,000,000 funding gap. Brinshore’s request for a Gap Loan allows the Project to
continue toward a year-end closing.
Agency staff has identified the following potential sources the Board may wish to consider reallocating for
the Gap Loan request. The potential option(s) below aim to leave funding in each program so that
reallocating funds to support the Project does not empty any one account.
Fund Program Amount
Available
Project Gap
Loan
Amount
Remaining
Primary Housing Fund Property Acquisition $1,599,880 $1,500,000 $99,880
Multiple North Temple Strategic
Intervention Funds
$2,936,762 $1,500,000 $1,436,762
Housing Development Loan
Fund (HDLP)
Fall 2022 NOFA $7,000,000 $1,000,000 $6,000,000
Total for Project Gap Loan - - $4,000,000 -
The requested interest rate for the Gap Loan is 2%. Agency staff has negotiated this rate with Brinshore
based on Project financials and full repayment of the Gap Loan, with interest, within a 30-year timeframe
and cash flow repayment. The Gap Loan terms also match those of the previously awarded NOFA funds
allowing the Agency to combine the funds into one loan, reducing complication and allowing the Agency
to issue and manage one loan total for efficiency. For full terms and details of the Gap Loan, please see:
Attachment C: 1500 W. North Temple – Gap Loan Term Sheet.
If the Gap Loan is approved, total Agency participation in the Project would be $14,456,000. The initial
total development cost in August 2020 was ~$60 million and the Agency committed $6,456,000 in NOFA
funds as well as the $4,000,000 Seller’s Note for a total of $10,456,000 putting Agency participation at
17.5% of the total development cost. Currently, with the total development cost at ~$93 million, and the
Agency’s potential addition of the $4,000,000 Gap Loan, the Agency’s participation would be 15.5% of
the total development cost.
If the Board wishes to approve funding the Gap Loan, Agency staff will return to the Board with the
applicable budget amendment in October and the subsequent potential Gap Loan final approval in the
November Board meeting.
PROJECT OVERVIEW & PUBLIC BENEFITS:
The proposed Spark mixed-use Project will include 200 residential units including affordable workforce
and family-size housing, structured parking, a mid-block walkway that connects Cornell Street and 1460
West (to be publicly accessible and privately owned and maintained), a high level of concern for
architectural and urban design principles, transit-oriented design, maximized density, sustainable
construction and building design practices, as well meeting Davis Bacon fair wage requirements for
construction.
Timeline:
• Brinshore is currently finalizing the Project’s financing and is progressing towards a year-end
closing with construction anticipated to begin in Spring 2023 and Project completion in 2024. At
the latest, the Project must close by March 1, 2023 per LIHTC requirements, or it will forfeit the
~$42.5 million LIHTC allocation, making it no longer financially feasible.
Developer Experience:
• Brinshore is an Illinois-based developer founded in 1995 with a focus on strengthening
neighborhoods and a development track record of over 7,000 units over the last 27 years. Brinshore
is one of the largest developers of affordable housing in the United States and specializes in creating
authentic projects that encourage an active, healthy lifestyle and serve as a catalyst for other
development.
Housing Affordability:
• The Project has 200 units including 63 family-sized units that range from 20-80% AMI and two,
three, and four-bedroom units. Per the 2017 Board resolution, 50% of the units are affordable to
households at or below 60% AMI. Additionally, 50% of the units are affordable to households at
70-80% AMI per LIHTC standards, which are currently market rate rents for the North Temple
area.
• The unit mix allows the Project to generate as much LIHTC equity as possible, lowering the
financing gap as all 200 units are income and rent restricted. However, due to the naturally
occurring lower rents in the North Temple Area, the 70 and 80% restricted units are above current
market rate rents for the neighborhood. This allows the Project mix to have all restricted units to
maximize LIHTC equity, meet the Board’s goals that 50% of the units be in market rate range,
while also restricting the 70 and 80% units to ensure affordability over the long term as the North
Temple Project Area continues to grow.
Neighborhood Serving Commercial Space:
• As currently designed, there is a proposed ~4,000 square foot daycare facility which will serve
Spark residents and low-income members of the community at a sliding scale cost. There is also a
~5,000 square foot retail space and Brinshore is currently working with local organizations to lease
the commercial space, including reaching out to the Economic Development department to connect
with potential local tenants.
Structured Parking:
• The Project includes 100 structured parking spaces that are free to low-income residents per LIHTC
requirements and are designed to be safe, functional, and attractive for residents and visitors.
Mid-Block Walkway:
• The mid-block walkway that connects Cornell Street and 1460 West is consistent with the North
Temple Boulevard Plan and will be publicly accessible and privately owned and maintained.
Architecture, Sustainable Construction, and Building Design Practices:
• The Project incorporates a high level of concern for architectural and urban design principles
including a transit-oriented design and maximized density. It also incorporates sustainable
construction practices and building design including Enterprise Green Communities and ENERGY
STAR Multifamily New Construction, ~24 bicycle parking spaces, ~10 EV charging stations, as
well as Davis Bacon fair wages for construction.
ATTACHMENTS:
• Attachment A: Parcel Map
• Attachment B: 1500 W. North Temple - Seller’s Note Term Sheet & Resolution
• Attachment C: 1500 W. North Temple - Gap Loan Term Sheet
• Attachment D: Spark Project Conceptual Renderings
ATTACHMENT A: Parcel Location Maps
ATTACHMENT B: 1500 W. North Temple - Seller’s Note Term Sheet & Resolution
ATTACHMENT C: 1500 W. North Temple - Gap Loan Term Sheet
TERM SHEET
FOR LOAN TO BRINSHORE DEVELOPMENT, LLC
1500 W. North Temple
The terms described on this Term Sheet represent the terms for an RDA Loan and
together with the Seller’s Note, represent the RDA’s maximum contribution to the
financing of the Project. Following receipt of the senior lender and tax credit
investor final commitments to the Project, and final proformas for the Project, the
RDA and Borrower will verify and adjust the terms of the loan listed below
consistent with the respective requirements of the RDA.
LOAN TERMS
Borrower: Brinshore Development, LLC
Property: 1500 West North Temple
Amount: Not to exceed $10,456,000*
Sources of funds include:
- $2,500,000 the RDA Board of Directors set aside for the
Project as part of the 2018 Notice of Funding Availability
(NOFA) for affordable housing through the Housing
Development Loan Program (HDLP). The terms for the
$2,500,000 NOFA funding will match the terms shown
here.
- $3,956,000 the RDA Board of Directors set aside for the
Project as part of the 2019 Notice of Funding Availability
for affordable housing through the HDLP. The terms for the
$3,956,000 NOFA funding will match the terms shown
here.
- Up to $4,000,000 of Agency funding shall be classified as
gap financing and shall only be used if the Project has a
funding gap at the time of closing, after the Agency has
determined all other sources of primary and subordinate
financing have been maximized. This financing has not
formally been allocated by the Board.
*Please note this Project will utilize RDA funding both in
connection with this loan and in the form of a Seller’s Note
financing the Borrower’s acquisition of the Property. The full
RDA financing amount with the Seller’s Note included is not to
exceed $14,456,000.
Project Description: The overall project consists of the new construction of a mixed-
income, mixed-use project with approximately: 200 housing
units, ~100 parking spaces, ~24 bicycle parking spaces, a ~4,000
SF daycare, and approximately ~5,000 SF of neighborhood scale
commercial space. The estimated total project cost is
~$93,000,000. 100% of the 200 units will be deed restricted
affordable housing.
Affordability Restrictions: All units will be deed restricted for 50 years at 80% AMI or less.
A minimum of 50% of the units will be at 60% AMI or less.
Term: 30 years
Amortization: 30 years, cash flow repayment
Interest Rate: 2% Interest Rate
Interest shall accrue during construction, beginning upon the
first disbursement of funds. Accrued interest during construction
to be added to the loan balance.
Repayment Payments commence upon conversion of the senior construction
loan to permanent financing.
Repayment shall be based on available annual cash flow after
senior lender payments and any required tax credit investor fees.
The RDA will receive 40% of available cash flow and the
Developer will receive 60% of available cash flow until the
deferred developer fee is fully repaid. The RDA will have
discretion on how its share of cash flow is allocated towards
repayment of the RDA Loan and Seller’s Note, which will be
defined in the loan documents.
Once the deferred developer fee is fully repaid, the RDA will
receive 60% of available cash flow. The RDA will have
discretion on how its share of cash flow is allocated towards
repayment of the RDA Loan and Seller’s Note, which will be
defined in the loan documents.
A balloon payment of any outstanding balance shall be due upon
maturity.
Collateral: A mortgage lien on the Property that may be subordinated to the
senior lender but will be superior to other subordinate financing
sources.
The RDA’s two sources of funding for the Project, the RDA Loan
and Seller’s Note, will be in a shared second position.
Guarantors: Corporate guarantee from Brinshore Development, LLC
Deferred Fee: At the RDA’s sole discretion, Applicant will maximize deferred
developer fee and / or equity contributed as a source to fund the
Project. Deferred developer fee and / or equity will be at least
$3,000,000.
Disbursement: Loan proceeds shall be disbursed as determined in the loan
documents.
Fees: Closing costs and legal fees shall be paid by the Borrower
including, but not limited to, the cost of title search and
insurance, credit reports, and attorney fees. Fees will be payable
at loan closing.
Use of Funds: Funds shall be used for construction and development of 1500
W. North Temple, including, but not limited to: groundwork,
infrastructure, construction, site mitigation, and any similar uses.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
• Close on the purchase of the Property, meeting all the requirements of the Real
Estate Purchase Agreement.
• Secure sufficient sources of financing for the Project. Borrower will maximize
available conventional financing from senior lender, tax credit equity, and funding
from subordinate lenders. Borrower will provide evidence of seeking and
maximizing all available financing opportunities for the Project, including but not
limited to State Olene Walker Housing Trust Fund, Salt Lake County HOME and
Salt Lake City HOME funds.
• RDA approves final schedule of sources and uses and the project proforma.
• Execute loan documents (e.g. promissory notes, loan agreements, security
documents, and guarantees) as deemed necessary by the RDA and its legal
counsel.
• Record land use restriction agreements for affordable housing in the Project.
• Record easement for public access to the mid-block walkway connecting Cornell
Street and 1460 West.
• Receive all necessary approvals from the City, as further defined in the loan
agreement.
• Receive approval from the RDA and its legal counsel of all matters pertaining to
title, legality of the loan, and the legality, sufficiency, and the form and substance
of all documents that are deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the RDA for the Property.
• Such other terms as recommended by the RDA’s legal counsel and staff.
ATTACHMENT D: Spark Project Conceptual Renderings (Subject to Change)
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.
Available Budget $1,599,880
-Spark Allocation $1,500,000
Remaining Budget $99,880
Primary Housing –Property AcquisitionSpark Mixed-Use, Affordable Housing Project
Available Budget $2,936,762
-Spark Allocation $1,500,000
Remaining Budget $1,436,762
North Temple Strategic Intervention Funds
Housing Development Loan Program –Fall NOFA
Available Budget $7,000,000
-Spark Allocation $1,000,000
Remaining Budget $6,000,000
2018 NOFA $2,500,000
2019 NOFA $3,956,000
+ Seller Financing Note $4,000,000
Total Current Loan Amount $6,456,000
+ Primary Housing –Property Acquisition $1,500,000
Total Gap Loan Request $4,000,000
+ North Temple Strategic Intervention Funds $1,500,000
+ Housing Development Loan Program –Fall NOFA $1,000,000
New Project Total Budget $14,456,000
New Loan Amount $10,456,000
Budget Impact: Spark Mixed-Use, Affordable Housing Project in the North Temple Project Area
Available Budget $5,670,186
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $5,420,186
CIP Depot District Project Fund
(Station Center Infrastructure Funds)
Station Center Vision and Implementation Planning
Budget Impact: Station Center Vision and Implementation Planning in the Depot District Project Area
Current Budget $0
+ CIP Depot District Project Allocation $250,000
New Project Total Budget $500,000
+ Central Station Allocation $250,000
Available Budget $664,121
-Station Center Vision and Implementation Planning $250,000
Remaining Budget $414,121
Central Station
Approximate Fund Balance $2,000,000
-RDA Personnel Budget $46,805
Approximate Remaining Fund Balance 1,953,195
Administration Fund BalanceRDA Personnel Budget
Budget Impact: Non-Represented Employee Compensation Study Adjustments
Current Budget $2,480,095
+ Fund Balance Allocation $46,805
New Budget $2,526,900