Transmittal - 9/23/2022
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
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: September 23, 2022
PREPARED BY: Kate Werrett, RDA Project Manager
RE: 702 West 200 South (Sun Bar) Pre-Disposition Property Report
REQUESTED ACTION: Briefing on the Administration’s plans for disposition of property
located at 702 West 200 South.
POLICY ITEM: Property Disposition
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: The RDA is providing a courtesy pre-disposition report to the RDA Board
for the Tier 2 property located at 702 West 200 South.
ANALYSIS:
In accordance with the Real Property Disposition Policy (“Policy”) that was amended on March 23, 2021,
the Redevelopment Agency of Salt Lake City (“RDA”) is required to provide an update to the RDA Board
of Directors (“Board”) at various stages of the property disposition process for properties classified as Tier
1. The property located at 702 West 200 South is not classified as Tier 1 as it does not meet the standards
established in the policy for a Tier 1 property. While the property is considered a Tier 2 parcel, RDA staff
is providing a courtesy pre-disposition report to the RDA Board of Directors.
The information provided in Attachment A is intended to serve as a Pre-Disposition Report, and includes
information on the property’s method of disposition, timeline of disposition, redevelopment preferences,
and other information relevant to the disposition of the property.
ATTACHMENTS:
A. Pre-Disposition Report
B. Guiding Framework
C. Livability Benchmarks
ATTACHMENT A: PRE-DISPOSITION REPORT
702 West 200 South (Former Sun Bar Location)
October 2022
Location: 702 West 200 South
Status: Vacant
Size: 0.31 acres
Appraised Value: $1,270,000 (appraised 6/15/2022)
Appraised Land Lease Cost per Year $64,000/yr with an annual inflationary escalator of 1%-3%.
Zoning: GMU
Categorization: Tier 2
Method of Disposition:
The RDA proposes marketing the property on an open-ended basis. The property will
be competitively marketed through an eblast, RDA social media postings, advertising
on a local news website, a notice on slcrda.com, signage at the parcel, and potentially
other electronic notifications for development-oriented organizations. There is
currently some interest in the property and open-ended marketing will attract more
potential developers to submit creative development proposals for the site.
Potential Structure: Interested parties may propose a structure that will work with their specific project and
financing package. Any disposition structure will follow RDA policy, including following
the Disposition Price Protocol. Options may include the following and be contingent
upon Board approval pursuant to adopted policies:
• Land Lease: The RDA could provide a long-term land lease to facilitate
development of the Property. The RDA would maintain ownership of the land and
the developer would own the leasehold improvements on the land.
702 W 200 S
UTA Headquarters
• Land Sale: The RDA could convey the land through a typical land sale and realize
the sales proceeds as revenue.
• Land as Equity: The RDA could convey the Property in exchange for equity
ownership in the development, equal to the appraised value of the land at the time
of conveyance.
• Joint Venture: The RDA could form a partnership with a revenue sharing model.
This partnership could include the RDA and the project developer and be formed
in conjunction with the “Land as Equity” structure or could include the RDA in
sharing the land sale revenues as the Property is developed.
Disposition
Timeframe:
The RDA will begin marketing the property immediately and the RDA will begin
accepting offers 45 days after the property is listed. The RDA will market the property
until a developer is selected.
Developer Selection: The RDA will have a selection committee which will review the offers received and
make a recommendation to the Mayor. RDA staff shall provide an update to the Board
when the RDA has entered into a real estate purchase agreement or lease agreement
with the selected purchaser/lessee.
Redevelopment Preferences: The RDA will consider offers from professionals with a wide range of development
experience for this opportunity. Projects should align with City Plans including the
Depot District section of the Downtown Plan and the Central Station Area Plan. The
RDA is willing to consider a variety of project types with preference given to projects
that align with the RDA core values as found in the Guiding Framework and contain
the most advantageous mix of Livability Benchmarks for this location.
ATTACHMENT B: GUIDING FRAMEWORK
ATTACHMENT C: LIVABILITY BENCHMARKS LIVABILITY BENCHMARKS
PUBLIC BENEFIT DESCRIPTION & INTENT
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Leveraging To promote the leveraging of non-RDA/City sources of funding to maximize private investment.
Timeliness To support projects that have a reasonable timeframe for completion.
Return of Investment To promote the return on RDA resources, thereby enabling resources to extend further in the
community.
Permanent Job Creation To promote neighborhoods with a balanced economy that produces quality jobs.
Affordable
Commercial Spaces
To reduce the displacement risk of existing community businesses and/or reduce barriers to
entry for new, underrepresented business and service types, particularly locally-owned and
independent businesses and non-profits that promote neighborhood identity, economic vitality,
and local economic multipliers
Ownership To encourage the creation of opportunities for residents/business owners to build wealth and/or
establish permanent roots through affordable home/commercial ownership.
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Transportation Opportunities To promote a multimodal transportation network and ensure convenient and equitable access
to a variety of transportation options.
Mixed-Income
Neighborhoods
To promote mixed-income developments, economically integrated communities, and housing
opportunities for low-income residents.
Neighborhood Safety To reduce the number of vacant and distressed buildings and lots to reduce crime and return
land to a productive use.
Community Engagement &
Support
To provide a stronger platform for community members to inform and influence development
project during initial planning stages and to preserve cultural heritage.
Housing for Everyone To promote housing for families, underserved populations
Displacement
Mitigation
To mitigate the displacement of current residents and residents with generational ties to the
neighborhood or provide opportunities for those who have already been displaced to return.
Affordable Housing Preservation To preserve existing affordable housing
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Public
Space
To promote community amenities that provide opportunity for social interaction; support
cultural events; promote neighborhood identity; and reinforce neighborhood character.
Public Art To promote cultural expression and add to the experience and value of the built environment
through art that is publicly visible or accessible for all to experience.
Architecture & Urban Design To promote high quality architecture that enhances the public realm, strengthens the
neighborhood’s unique character, and uses enduring materials.
Sustainability To promote a built environment that assists with protecting resources and promoting greater
resiliency.
Walkability To promote walkable neighborhoods and connectivity, and support a safe, engaging
pedestrian experience.
Building Preservation, Rehabilitation, or Adaptive Reuse
To acknowledge a neighborhood’s history and maintain its unique character through
preservation, rehabilitation, or repurposing of historic or underutilized structures.
Missing Middle &
Unique Housing Types
Promote an array of scale of project types to diversify the City’s housing stock/forms and
provide more affordable living options for residents.