035 of 2022 - Interlocal Agreement Between Salt Lake City Corporation, RDA, and the Utah Inland Port AuthorityRESOLUTION NO. _______ OF 2022
Interlocal Cooperation Agreement between Salt Lake City Corporation,
Redevelopment Agency of Salt Lake City and the Utah Inland Port Authority
WHEREAS, the Utah Inland Port Authority Act was amended in the 2022 Utah
Legislative Session to change the percentage of Salt Lake City-generated property tax
differential distribution to the Utah Inland Port Authority (“Port Authority”) and to require
that the Port Authority spend 40% of this property tax differential on environmental
mitigation projects within the authority jurisdictional land (“Environmental Mitigation
Money”) and 40% of this property tax differential on community mitigation projects for
neighborhoods adjacent to the port authority jurisdictional land (“Community Mitigation
Money”).
WHEREAS, Utah Code 11-58-604 requires Salt Lake City Corporation (“City”),
the Redevelopment Agency of Salt Lake (“RDA”), and the Port Authority to execute an
agreement by December 31, 2022 that provides for the following:
A process for how the Port Authority is to spend the Environmental Mitigation
Money and the Community Mitigation Money;
Include a requirement that the Port Authority consult with the City in determining
how to spend the Environmental Mitigation Money and the Community Mitigation
Money;
Require the RDA to spend the 10% of exempt area property tax it receives for
affordable housing; and
Require the City to agree to facilitate the efficient processing of land use
applications relating to the authority jurisdictional land by providing at least one
full-time employee as a single point of contact for the processing of the land use
applications.
WHEREAS, the Interlocal Cooperation Agreement attached hereto as Exhibit A
complies with Utah Code 11-58-604 and the City, RDA, and Port Authority desire to
execute the agreement prior to December 31, 2022.
NOW, THEREFORE, BE IT RESOLVED by the Salt Lake City Council, that
the Interlocal Cooperation Agreement, in the form attached to this resolution as Exhibit A,
is hereby approved.
Passed by the City Council of Salt Lake City, Utah this ____ day of _____, 2022.
SALT LAKE CITY COUNCIL
Dan Dugan, Chair
18th Oct.
35
Dan Dugan (Oct 25, 2022 14:29 MDT)
Dan Dugan
Attest: Approved as to form:
Katherine Lewis, City Attorney Cindy Lou Trishman, City Recorder
Katherine Lewis (Oct 25, 2022 14:01 MDT)
Salt Lake City Attorney
EXHIBIT A TO RESOLUTION
Attach Interlocal Cooperation Agreement]
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INTERLOCAL COOPERATION AGREEMENT
THIS INTERLOCAL COOPERATION AGREEMENT (“Agreement”) is dated
2022, to be effective on the date the last keeper of records for each Party attests
and files the Agreement (“Effective Date”), by and between Salt Lake City Corporation, a Utah
municipal corporation (“City”), the Redevelopment Agency of Salt Lake City, a Utah public entity
RDA”), and the Utah Inland Port Authority (“UIPA”), a Utah public entity. The City, RDA, and
UIPA are sometimes referred to individually as “Party” and collectively as the “Parties.”
R E C I T A L S
A. During the general 2022 Utah legislative session, the Utah Legislature enacted HB443,
which revised Utah Code §§ 11-58-101, et seq. (the “Inland Port Act”) to change, among
other things, the distribution by Salt Lake County to UIPA, the City and the RDA of exempt
area property tax differential, (defined in Utah law as the portion of property tax differential
generated by a property tax levied by Salt Lake City in the port authority jurisdictional land
City Differential”). Specifically, Utah Code Ann. § 58-11-604(6) specifies how UIPA
may spend portions of the City Differential, so long as this Agreement has been executed.
B. A material inducement for the Parties to execute this Agreement is the establishment of
certainty for the Parties and other stakeholders on both (i) the percentage of City
Differential that will be distributed to UIPA over the next 25 years, and (b) ensuring that
the portion of City Differential will be spent by UIPA during the next 25 years to mitigate
environmental and community effects of the inland port on Salt Lake City’s residents.
C. HB443 requires the City, RDA, and UIPA to execute this Agreement no later than
December 31, 2022, to establish this certainty and to create a process for UIPA’s
expenditure of portions of the City Differential and the RDA’s expenditure of the housing
payment.
D. The Parties also acknowledge that establishing certainty on the expenditure of the City’s
Differential can best be achieved by creating a master plan that will become a shared,
agreed-upon framework to guide the UIPA’s decision-making and prioritization of projects
to mitigate the inland port’s environmental and community impacts.
E. HB443 also requires the City and UIPA to execute this Agreement no later than December
31, 2022, to ensure that the City agrees to facilitate the efficient processing of land use
applications related to authority jurisdictional land, including by providing at least one full-
time employee as a single point of contact for processing these land use applications.
F. The Parties desire to enter into this Agreement to comply with Utah law, to establish a
contractual relationship creating certainty on the 25-year distribution of the City
Differential to UIPA and to commit to a process for the expenditure of a portion of the City
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Differential and the efficient processing of land use applications relating to authority
jurisdictional land.
A G R E E M E N T
For good and valuable consideration, the Parties agree as follows:
1. Efficient Facilitation of Land Use Applications. Pursuant to Utah Code § 11-58-205(9),
the City shall designate one full-time employee who will serve as an ombudsman and
facilitator for the efficient and timely processing of all land use applications, as defined in
Section 10-9a-103, relating to authority jurisdictional land within the City. This City
employee will serve as the single point of contact for UIPA for the processing of such land
use applications and will ensure that the City’s departments are communicating efficiently
to process the land use applications in a timely manner. UIPA may suggest and the City
may consider changes to ordinances and the requirements of the inland port authority
overlay zone.
2. Distribution of Tax Differential. The Parties agree that a material inducement to
executing this Agreement is the establishment of certainty regarding the distribution of the
City Differential for the next 25 years. While the Parties acknowledge that, through
HB433, the Utah Legislature set the percentages of distribution of the City Differential,
this law creates an expectation of certainty for the term of this Agreement. In reliance on
the commitment made by the Utah Legislature under HB443, the Parties expect that for the
term of this agreement, the distribution of the City Differential to the City, RDA and UIPA
shall be as follows:
a. UIPA shall receive, for a period of 25 years, 25% of the City Differential (the “25%
Set Percentage”).
b. UIPA shall receive an additional percentage of the City Differential which shall
decrease over a period of 25 years as follows (the “Decreasing Percentage”:
i. 40% for the first tax year after the effective date of this Agreement,
decreasing 2% for each year so that by 2029, the payment is 28%;
ii. 10 % from 2030 for seven years; and
iii. 8% from 2037 until 2047, at which time the payment of the City
Differential to UIPA shall be 0%.
c. During the term of this Agreement, the RDA shall receive 10% of the City
Differential, which shall be used for affordable housing under Utah Code 17C-1-
412.
3. Process to Determine Expenditure of the 25% Set Percentage and the Decreasing
Percentage. During the term of this Agreement, within a week of receiving the 25% Set
Percentage and the Decreasing Percentage (collectively, the “City Generated
Differential”), UIPA will notify the City of the amount of City Generated Differential it
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received. UIPA shall spend the City Generated Differential as follows and pursuant to the
process set forth in Section 3(c), below:
a. Environmental Mitigation Projects within the Authority Jurisdictional Land: UIPA
will spend 40% of the City Generated Differential on environmental mitigation
projects in the authority jurisdictional land within the City (“Environmental
Differential”) according to the following:
i. During the first year of this Agreement, the City and UIPA will mutually
engage an outside firm with national expertise in health impact
assessments to create a comprehensive health impact assessment (“HIA”)
analyzing the planned inland port development in the authority
jurisdictional land within the City. The HIA will use a data-based analysis
to evaluate the existing and potential health effects of the inland port
development in Salt Lake City. The parties will use the HIA as a master
plan to guide all future development plans on the authority jurisdictional
land. The HIA will be completed by December 31, 2023, will be reviewed
by the NWQ Review Group (defined below) and approved by the UIPA
board , and will be funded with the Environmental Differential.
ii. During the first year of this Agreement, the City and UIPA will mutually
engage an outside firm with national expertise in traffic studies, including
specifically the impacts on logistics hubs, truck traffic, and railyards on
air quality and traffic in adjacent communities. This outside firm will
create a traffic study using data-based analysis on best practices to
mitigate environmental impacts on communities related to logistics hubs,
railyards, and truck traffic (“Traffic Study”). The parties will use the
Traffic Study as a master plan to guide all future development plans on
the authority jurisdictional land. The Traffic Study will be completed by
December 31, 2023, will be reviewed by the NWQ Review Group and
approved by the UIPA board and will be funded by the Environmental
Differential.
iii. During the term of the Agreement, UIPA will spend the Environmental
Differential in conformance with the HIA and the Traffic Study and will
use the Environmental Differential to mitigate the environmental impacts
on Salt Lake City related to the development of the authority jurisdictional
land. Such environmental mitigation projects may include, but are not
limited to, net zero, electric, or equivalent building; mitigation of truck
traffic; protection of wetlands; construction that supports migratory bird
patterns in and around the jurisdictional land; low water usage; solar or
renewable energy and/or electrification of rail.
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iv. Expenditure of the Environmental Differential will only occur after the
City and UIPA follow the process described in Section 3(c) below.
b. Mitigation Projects for Communities within the City. UIPA will spend 40% of the
City Generated Differential (“Community Differential”) on mitigation projects
for communities that are within the City; are adjacent to the authority jurisdictional
land; and are west of the east boundary of the right of way of commuter rail used
by the City (“Westside Community”) according to the following:
i. During the first year of this Agreement, the City and UIPA will mutually
engage an outside firm with national expertise in community impact
assessments to create a comprehensive community impact assessment
CIA”) for the planned inland port development in the authority
jurisdictional land and the impacts on the Westside Community. The CIA
will use a data-based analysis to evaluate the potential economic,
community, and health effects of the inland port development on the
Westside Community. The parties will use the CIA as a master plan to
guide all future development plans on the authority jurisdictional land.
The CIA will be completed by December 31, 2023, will be reviewed by
the NWQ Review Group and approved by the UIPA board and will be
funded with the Community Differential.
ii. During the term of the Agreement, UIPA will spend the Community
Differential in conformance with the CIA and to mitigate the impacts of
the inland port development on the Westside Community, including but
not limited to, projects that create quiet zones, railroad crossings, new
infrastructure to benefit adjacent communities, apprenticeship programs,
career and youth development, and scholarships for certain careers
associated with UIPA.
c. Process to Review and Identify Expenditures for the Environmental Differential
and Community Differential. During each fiscal year, within 30 days after
receiving the amount of City Differential from the County, the UIPA executive
team will develop a list of priority projects to spend the Environmental Differential
and Community Differential (collectively, the “Mitigation Money”), in
conformance with the priorities of the CIA, Traffic Study and the HIA. The UIPA
executive team will submit any proposed use of Mitigation Money to the City’s
advisory group of experts, which will be comprised of members of City
departments, including but not limited to, the Redevelopment Agency, Planning,
Public Utilities, and Sustainability, Mayor’s Office and Council Office, and
stakeholders invested in the City’s Northwest Quadrant including the Audubon
Society and community leaders from adjacent neighborhoods (“NWQ Review
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Group”). The NWQ Review Group may develop as separate list of priority
projects to spend the Mitigation Money.
d. The UIPA team and representatives of the NWQ Review Group will meet in May
and seek to develop a joint recommendation to be presented to UIPA’s board. The
Parties anticipate that there will always be more ways to spend the Mitigation
Money than there is money available. If there is no agreement on a joint
recommendation, each shall separately submit their priority of projects to UIPA’s
board. In either case (i.e., whether a joint recommendation is submitted or separate
recommendations are submitted) the submissions shall be made prior to the board
meeting in June in which a public hearing will be held to approve the budget for
UIPA’s next fiscal year which commences July 1. The UIPA executive team and
representatives of the NWQ Review Group agree to meet quarterly (likely in the
months of August, November and February) to discuss whether to recommend mid-
year adjustments to the previously approved UIPA budget for the Mitigation
Money as well as to develop and adjust priorities for subsequent fiscal years,
including by making adjustments to the priorities in the HIA, CIA, or the Traffic
Study to account for changed conditions. In all events, UIPA’s board shall approve
a budget after a public hearing, and such budget will include line-item approval of
projects for the expenditure of the Mitigation Money.
e. Economic Development Activities. UIPA will spend the remaining 20% of the
City’s Property Tax on economic development projects within the authority
jurisdictional land in Salt Lake City. UIPA will use commercially reasonable efforts
to incentivize economic development projects that comport with the HIA, CIA, and
Traffic Study.
4. Use of Housing Payment for Affordable Housing. As required by Utah Code Ann. § 11-
58-604(2)(b)(iii), the RDA agrees to use for affordable housing the payment made by the
County to it pursuant to Utah Code Ann. § 11-58-604(4)(c) and such amount shall be
credited toward UIPA’s obligation under 11-58-601(7)(b).
5. Duration and Termination. The term of this Agreement shall commence on the Effective
Date and shall terminate when Mitigation Money is no longer distributed to UIPA under
Utah Code § 11-58-604 but it shall not exceed forty (40) years.
6. Damages for Breach. A Party’s violation of any of the terms of this Agreement constitutes
a breach. The Party that believes that the other Party is in breach shall give written notice
of the alleged breach and the other Party shall have 30 days to mitigate the breach or explain
why it is not in breach. If alleged breach is not remedied or the Parties do not agree that
there is a breach, then the Parties shall submit the issue to non-binding mediation and share
the costs. After mediation, if the Party continues believes that the other Party is still in
breach then it may determine, in its sole discretion, to continue performing under this
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Agreement but may bring an action and its sole remedies are injunction, mandamus,
abatement, or other remedy to prevent, enjoin, abate, or enforce any relevant provision.
However, no Party is entitled to money damages for any breach determined by a court to
have occurred.
7. Interlocal Cooperation Act. In satisfaction of the requirements of the Interlocal
Cooperation Act, and in connection with this Agreement, the Parties agree as follows:
a) This Agreement shall be approved by each Party pursuant to Utah Code §11-13-
202.5 of the Interlocal Cooperation Act, including by the Board of the RDA, the
Salt Lake City Council, and the UIPA Board of Directors.
b) This Agreement shall be reviewed as to proper form and compliance with
applicable law by a duly authorized attorney on behalf of each Party, pursuant to
Utah Code §11-13-202.5 of the Interlocal Cooperation Act.
c) A duly executed original counterpart of this Agreement shall be filed with keeper
of records of each Party, pursuant to Utah Code §11-13-209 of the Interlocal
Cooperation Act.
d) Except as otherwise specifically provided herein, each Party shall be responsible
for its own costs of any action taken pursuant to this Agreement, and for any
financing of such costs.
e) Any Party may withdraw from the joint or cooperative undertaking described in
this Agreement only upon the termination of this Agreement.
f) No real or personal property shall be acquired jointly by the Parties as a result of this
Agreement. To the extent that a Party acquires, holds, or disposes of any real or
personal property for use in the joint or cooperative undertaking contemplated by this
Agreement, such Party shall do so in the same manner that it deals with other
property of such Party.
g) No joint board or entity is created through this Agreement.
h) The functions to be performed by the joint or cooperative undertaking are those
described in this Agreement.
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IN WITNESS WHEREOF, the Parties are executing this Agreement to be effective as
of the Effective Date.
Utah Inland Port Authority, a Utah public
entity
Name:__________________________
Title:___________________________
Approved as to Proper Form and
Compliance with Applicable Law:
Lyndon Ricks, Attorney for Utah Inland
Port Authority
Salt Lake City Corporation, a Utah
municipal corporation
Erin Mendenhall, Mayor
Approved as to Proper Form and Compliance
with Applicable Law:
Katherine Lewis, City Attorney
Redevelopment Agency of Salt Lake City,
a Utah public entity
Erin Mendenhall, Executive Director
Approved as to Proper Form and
Compliance with Applicable Law:
Katherine Lewis, City Attorney
Attest:
Cindy Lou Trishman, City Recorder
Katherine Lewis (Oct 4, 2022 09:25 MDT)
Katherine Lewis (Oct 4, 2022 09:25 MDT)
Resolution 35 of 2022 Authorizing the Mayor to
execute the Interlocal Agreement between SLC,
the RDA of SLC, and UIPA
Final Audit Report 2022-10-25
Created:2022-10-25
By:Cindy Trishman (cindy.trishman@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAA8KZYWyqTMLovj7FRe1GrKzOibVryk_7z
"Resolution 35 of 2022 Authorizing the Mayor to execute the Inte
rlocal Agreement between SLC, the RDA of SLC, and UIPA" His
tory
Document created by Cindy Trishman (cindy.trishman@slcgov.com)
2022-10-25 - 7:11:33 PM GMT
Document emailed to Katherine Lewis (katherine.lewis@slcgov.com) for signature
2022-10-25 - 7:14:29 PM GMT
Email viewed by Katherine Lewis (katherine.lewis@slcgov.com)
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Document e-signed by Katherine Lewis (katherine.lewis@slcgov.com)
Signature Date: 2022-10-25 - 8:01:22 PM GMT - Time Source: server
Document emailed to dan.dugan@slcgov.com for signature
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Signer dan.dugan@slcgov.com entered name at signing as Dan Dugan
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Document e-signed by Dan Dugan (dan.dugan@slcgov.com)
Signature Date: 2022-10-25 - 8:29:21 PM GMT - Time Source: server
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Signature Date: 2022-10-25 - 10:24:01 PM GMT - Time Source: server
Agreement completed.
2022-10-25 - 10:24:01 PM GMT