032 of 2022 - Tiny Home Village: Public Benefits Analysis; 1850 West Indiana AvenueRESOLUTION NO. OF 2022
(Authorizing the Lease Rate and Term for The Other Side Village Pilot Project
located at 1850 West Indiana A venue, Salt Lake City)
WHEREAS, The Other Side Academy ("TOSA"), a Utah nonprofit corporation, desires
to develop a community of small homes, community space, support services, and commercial
uses to provide affordable housing and life skill development for the City's unsheltered
population, to be known as The Other Side Village (the "Project"); and
WHEREAS, the first phase of the Project (the "Pilot Project") will include affordable
housing, supportive services, community space, social enterprise buildings, and additional tiny
homes to be offered as nightly rentals, as further described on the attached term sheet (the "Term
Sheet"); and
WHEREAS, TOSA and the City desire to locate the Pilot Project on approximately
8 acres of the real property owned by the City and located at 1850 West Indiana A venue, Salt
Lake City (the "Pilot Site");
WHEREAS, the primary beneficiaries of the construction of the Pilot Project will be
individuals experiencing chronic homelessness who are transitioning into housing as part of the
City, County, and State's efforts to address the homelessness and housing crisis in Salt Lake
City; and
WHEREAS, a below-market ground lease to TOSA will facilitate the development of the
Pilot Project, which would otherwise be financially unfeasible; and
WHEREAS, the City is willing to provide assistance to TOSA in the form of a ground
lease rate for the Pi lot Site in the amount of $1. 00 per year for a term of 40 years, so long as the
conditions of the ground lease between City and TOSA, or another nonprofit approved by City,
are met (the "Lease Fee Waiver"); and
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WHEREAS, Utah Code Section 10-8-2(1)(a)(i) allows public entities to provide
nonmonetary assistance and waive fees to and for nonprofit entities after a public hearing; and
WHEREAS, though Utah Code Section 10-8-2 does not require a study for such waiver or
assistance, in this case the Administration voluntarily performed an analysis of the nonmonetary
assistance to the nonprofit corporation (the "Analysis"); and
WHEREAS, the City Council has conducted a public hearing relating to the foregoing, in
satisfaction of the requirements of Utah Code Section 10-8-2; and
WHEREAS, the Council has reviewed the Analysis, and has fully considered the
conclusions set forth therein, and all comments made during the public hearing;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as
follows:
1.The City Council hereby adopts the conclusions set forth in the Analysis, and
hereby finds and determines that, for all the reasons set forth in the Analysis, the Lease Fee Waiver
is appropriate under these circumstances.
2.The terms outlined on the Term Sheet represent the approved terms for the Pilot
Project, and the City Council hereby authorizes the City administration to negotiate the final terms
consistent with the Term Sheet or more beneficial to the City, and execute the ground lease and
any other relevant documents consistent with this Resolution and incorporating such other terms
and agreements as recommended by the City Attorney's office.
Passed by the City Council of Salt Lake City, Utah, on , 2022. ----
ATTEST:
CITY RECORDER
SALT LAKE CITY COUNCIL
By: _______ _ CHAIRPERSON
APPROVED AS TO FORM:
Salt L k City Attorney's Office
--
Kimberl2 18th of October
Kimberly Chytraus (Nov 9, 2022 15:45 MST)
Nov 9, 2022
Daniel Dugan (Nov 9, 2022 17:07 MST)
Daniel Dugan
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TOSV Pilot Project – Development Agreement Term Sheet
A. DEVELOPMENT AGREEMENT CONDITIONS
1. Develop the following improvements:
a. At least 60 tiny home residential units for permanent housing, with at least 3
units to be wheelchair accessible. Units shall be studio or one-bedroom units with private baths
and kitchens.
b. Up to 25 additional tiny homes to be used as a Community Inn.
c. A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses (size
may be revised as appropriate for use).
d. A ~10,000 square foot Social Enterprise Building to house social enterprise
endeavors (size may be revised as appropriate for use).
e. A ~12,000 square foot Community Center building to house multi-purpose space
(supportive services, clinics, offices) (size may be revised as appropriate for use).
f. A building to house a small grocery store.
2. Obtain all required permits and approvals from City following site plan and design
review and approval by City pursuant to process determined by City.
3. Comply with all applicable laws and regulations.
4. Construct all improvements as required by City, including infrastructure (utility facilities
and related infrastructure; roads and curb/gutter) in compliance with the agreed upon construction
schedule.
5. The different uses within the Village (residential, supportive services, social enterprise,
and commercial/community inn) should be constructed alongside each other so that there are services
to support occupied residences and enterprise to support operation of TOSV.
a. For every 10 residential units constructed, at least 7 shall be affordable units,
until maximum number of staff units have been constructed.
b. At any one time, there will be more residential units completed than
Community Inn units.
6. Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full
payment or reimbursement to City) and receipt of Certificate of Completion or equivalent prior to
issuance of certificate of occupancy.
7. Executed guaranty of up to $5 Million from Joseph and Celia Grenny in a form
acceptable to City.
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B. DEFAULTS AND REMEDIES
1. Events of default under the Development Agreement may include, but are not limited
to:
a. TOSV not constructing the improvements within the time limit provided for in
the schedule of development
b. TOSV fails to build the improvements as required
c. TOSV fails to provide regular development reports
2. Remedies if TOSV fails to cure an event of default:
a. Terminate the ground lease with TOSV, with our option (not obligation) to
purchase the improvements
b. Terminate the ground lease with TOSV, take possession of the improvements,
and relet the property
c. Enforce on the performance and payment guarantees to complete the
construction of the improvements
d. File a breach of contract claim (which may result in damages or specific
performance)
e. Injunctive relief
f. Any other remedies available at law or equity
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TOSV Pilot Project – Affordable Housing, Supportive Services, and Programming Term Sheet
(to be attached to Resolution)
A. CONDITIONS TO ENTERING INTO GROUND LEASE
1. Enter into Development Agreement on the terms in the attached term sheet.
2. City to approve financial sources and uses.
3. Firm financial commitments for source of funding and donations consistent with the
schedule of development.
4. Operating budget guaranty from TOSA in form acceptable to City.
B. GROUND LEASE CONDITIONS
1. Completion of development in compliance with the Development Agreement and
continued operation of Village as described in this term sheet.
2. Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full
payment or reimbursement to City) and receipt of Certificate of Completion or equivalent as a condition
to receiving certificate of occupancy.
3. Continual operation of the residential units and supportive services during the lease
term.
4. Inclusion of all standard City contracting terms, as well as other terms reasonably
recommended by the City Attorney to meet Council intent.
5. Firm commitment letters or contracts from service providers (medical, dental, mental
health/behavioral health, and case management) prior to occupancy by residents.
6. Within 12 months of entering into the ground lease, TOSV will begin landscaping the
property and contribute to the beautification of the neighborhood.
C. BUILDING REQUIREMENTS
1. Residential Units. TOSV shall develop and maintain the Site to include a minimum of 60
tiny home units as permanent housing. Of the total units:
a. Up to 10% (not more than 6 units) may be unrestricted in rent and occupancy
for utilization as staff living quarters.
b. A minimum of 90% (at least 54 units) shall be available and affordable to
individuals or families meeting the occupancy requirements described in this term sheet (the
“Affordable Units”). The Ground Lease will restrict the affordability of these units.
c. At least 3 affordable units shall be ADA compliant/wheelchair accessible, and
more affordable units will be made ADA compliant to meet resident needs.
d. Units shall be studio or one-bedroom units with private baths and kitchens, fully
furnished including housewares, maintained in good repair and compliant with applicable law.
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2. Up to 25 additional tiny homes may be used as a Community Inn offered as nightly
rentals to generate income for TOSV operations.
3. A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses for TOSV
residents (size may be revised as appropriate for use).
4. A ~10,000 square foot Social Enterprise Building to house social enterprise endeavors
that generate income for the TOSV operations (size may be revised as appropriate for use).
5. A ~12,000 square foot Community Center building to house multi-purpose space, and
supportive services for TOSV residents including a medical clinic, a mental health clinic, a social services
clinic, administrative offices, and a security office (size may be revised as appropriate for use).
6. A small grocery store that sells grocery food and food ingredients (such as milk, eggs,
bread, and fruits and vegetables), and not solely convenience, prepared, or “junk” foods.
D. OCCUPANCY REQUIREMENTS
1. Tenant Eligibility. The primary purpose of the Village is to provide housing for qualified
residents. TOSV must place into the Affordable Units individuals and families that meet the HUD-
adopted definition of chronically homeless and homeless, prioritized as follows:
a. TOSA shall first make the units available to persons or families that meet HUD’s
definition of chronically homeless as defined in section 401(2)(A) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360(9)). In general, to meet this definition, a chronically homeless person or
family’s head of household must be sleeping in a place not meant for human habitation or living in a
homeless emergency shelter or safe haven, have a disabling condition, as defined in section 401(9) of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), and
i. be continuously homeless for a year or more, OR
ii. have had at least four episodes of homelessness in the past three years
as long as the combined occasions equal at least 12 months.
b. If there are units available and no applications from chronically homeless
individuals, TOSV may lease units to vulnerable homeless individuals, as “homeless” is then-currently
defined by HUD, provided that applicants who have been homeless for the longest periods of time
immediately preceding their application or who demonstrate the highest vulnerability utilizing the VI-
SPDAT (Vulnerability Index–Service Prioritization Decision Assistance Tool) or similar assessment are
given priority over applicants who have been homeless for lesser periods of time.
c. A prospective tenant must have an annual income that is 30% or below of the
area median income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household size.
d. For purposes of clarity, a resident must meet the eligibility requirements before
acceptance into the Welcome Center. Residency/participation in the Welcome Center or in other TOSA
programs will not satisfy the homeless definitions. TOSA intends to prioritize street outreach efforts to
find resident applicants along the Jordan River and in westside neighborhoods, also with homeless
resource centers, service providers, and through government agencies.
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2. Tenant Selection.
a. The Affordable Units shall be made available pursuant to federal and state fair
housing laws and HUD guidance, including the following:
i. TOSV may establish admission preferences, including a preference for
individuals with a commitment to sobriety, but may not deny housing to
protected classes pursuant to federal and state fair housing laws.
ii. TOSV may regulate the occupancy of units based on unit size but may
not unreasonably limit the ability of families with children to obtain housing.
b. TOSV must develop and make public written tenant selection policies and
procedures that include descriptions of the eligibility requirements. The Tenant Selection Plan must
include evidence of a contractual partnership with service provider(s) and whether there is a restriction
or preference in the admission of tenants. The restriction or preference must cite the supporting
documentation to ensure inclusion and nondiscrimination in the selection of tenants.
c. TOSV will ensure that all applicants for housing in the Village will go through the
coordinated entry process used by the Salt Lake Valley Coalition to End Homelessness to ensure
coordination and efficiency with the current homelessness services system.
d. TOSA also will enter any new resident into the Homeless Management
Information System (“HMIS”) coordinated entry system.
e. Preference will be given to Salt Lake City residents for placement into the
development.
3. Maximum Rents. The annualized rent (which includes all required housing costs such as
utilities and other charges uniformly assessed to all Affordable Units, other than charges for optional
services) per unit shall be set forth in a written lease and shall not exceed, for the term of the lease, 30%
of the annual income limit for individuals and households with a maximum AMI of 25% AMI for the
applicable Unit Type (i.e. studio or bedroom number).
4. Tenant Lease Requirements.
a. Leases shall be provided on a 12-month lease term, with the intent that tenants
may live in their homes as long as they meet the basic obligations of tenancy without a time limitation.
b. TOSV shall comply with local, state, and federal laws, including the federal fair
housing act, when approving applicants as tenants, evicting, terminating a lease, or providing a notice to
quit.
c. TOSV must incorporate specific provisions into the lease agreement for each
eligible tenant of the Affordable Units that establish the tenant’s obligation to provide accurate
information regarding household income and composition.
5. Occupancy by residents as soon as reasonably practicable following receipt of
certificates of occupancy (or equivalent).
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E. RECORD-KEEPING AND ANNUAL REPORTING REQUIREMENTS
1. Upon execution of a lease, TOSV must verify and document the tenant’s annual (gross)
income.
2. TOSV must re-examine the income and household composition of tenants on an annual
basis.
3. TOSV must submit annual compliance reports to the City. These reports shall document
the occupancy and show whether TOSA is in compliance with tenant eligibility requirements.
4. TOSV must provide the City a written certification of compliance when the pilot project
reaches initial compliance and then with each annual report.
5. TOSV must provide the City with a report showing the number of total applications,
number of applications who were approved for a lease, the number of residents who leave the
Welcome Center and the number that move into the Village, the number of residents who leave the
Village and the reason (obtained other permanent housing, lease nonrenewal by TOSV, eviction).
6. TOSV must provide other reports that may be reasonably requested by the City to
confirm compliance with the requirements of the Ground Lease.
F. SUPPORTIVE SERVICES
1. The pilot project will include supportive services to assist homeless persons in
transitioning from homelessness, and to promote the provision of supportive housing to enable
homeless persons to live as independently as possible.
2. Supportive services will include on-site case coordination or management that ensures
tenants’ access to a wide variety of services and on-site location of services provided by professional
service providers as evidenced through an agreement.
3. Services shall be made available on a flexible and voluntary basis and may address the
following: mental health, substance and alcohol use, health, case management, independent living skills,
employment, peer support, and community involvement and support. Physical and mental health
providers shall have the appropriate licenses, which other services may be provided by those with
appropriate training and following industry best practices.
4. Transportation to off-site supportive services must be provided when not available on-
site.
5. Resident participation in the supportive services is on a voluntary basis.
6. Information will be made readily available to tenants regarding tenant rights and
housing laws and will have the information displayed in a visible location.
G. PROGRAMMING
The pilot project will include programming that includes peer mentoring and the life skill development.
This will include opportunities for residents to obtain employment experience by working in a social
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enterprise to the best of their ability. While participation in these employment activities shall be
encouraged, it is not a condition of living in the pilot project.
H. SOCIAL ENTERPRISES
1. TOSV intends to generate revenue to support the Village through operation of social
enterprise businesses that will be located on-site. These businesses are anticipated to be a motel
(Community Inn), thrift store, and a cookie manufacturing. The businesses may change over time.
2. In addition to generating revenue to cover operating costs, these businesses will provide
critical job training opportunities for residents. The Community Inn will include 25 stand-alone tiny
homes offered as nightly rentals for the general public, thereby providing lodging opportunities for Pilot
Project visitors and volunteers.
3. Participation in employment opportunities and social enterprises by residents is strictly
voluntary.
4. Employment of residents complies with all applicable laws, including all employment
and non-discrimination laws.
I. OTHER LEASE TERMS
1. Term. The term of the lease will be forty (40) years with an option to renew the lease
within the last year of the lease subject to approval by the Salt Lake City Council for the reduced lease
rate.
2. Rate. The lease rate for the property will be $1 per year for the term of the lease.
3. Right of First Offer. City will not allow a 3rd party to use or develop the remaining
adjacent property during the construction of the pilot project and for 3 years of operation of the Village
following completion of the pilot project. During that time, TOSA shall hold a right of first offer and may
offer to lease the adjacent property on terms and conditions agreed to with the City.
4. Maintenance. TOSA shall maintain all improvements within the Village, including
buildings, homes, street, gutter, storm drains, etc. in a good condition, consistent with applicable laws
and regulations. Residential units shall be maintained in a manner that is decent, safe, and sanitary and
meet at least the minimum Housing Standard Requirements. Maintenance shall include all necessary
and desirable repairs, snow removal, trash removal, and landscaping maintenance.
6. City will not provide further financial contribution to operation of Village. Any future
phases must be approved by City Council.
7. Adequate security measures for Village and surrounding community.
8. Ongoing operation of a small grocery store that sells grocery food and food ingredients
(such as milk, eggs, bread, and fruits and vegetables), and not solely convenience, prepared, or “junk”
foods. May be operated by a 3rd party operator.
J. DEFAULTS AND REMEDIES
1. Events of default under the Ground Lease may include, but are not limited to:
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a. TOSV fails to operate the Village as required
b. TOSV fails to comply with the terms of the Ground Lease
c. TOSV fails to provide regular operating reports
d. TOSV fails to report to City as required
2. Potential remedies if TOSV fails to cure an event of default:
a. Charge TOSV fair market rent for the leased property
b. Terminate the ground lease with TOSV, with an option (not obligation) to
purchase the improvements
c. Terminate the ground lease with TOSV, take possession of the improvements,
and relet the property
d. File a breach of contract claim (which may result in damages or specific
performance)
e. Injunctive relief
f. Any other remedies available at law or equity
K. REVIEW FOR PROJECT COMPLIANCE
Not more than annually and in connection with an annual report, City may request additional
information from TOSV to evaluate if the Village is compliant with the Ground Lease and meeting the
purposes of the approved public benefit analysis. The City will consider three primary topics in its
review:
1. Financial feasibility, successfully generating sufficient positive cashflow to maintain and
grow its operations. The City may consider relevant information, which may include, but is not limited
to the following:
a. Development viability – Funding and construction of the agreed-upon capital
improvements.
b. Operating viability – Development of revenue generating endeavors that
provide for the financial self-sufficiency of TOSV, including adequate location space and funding to
support on-site supportive services by 3rd party providers.
2. Social outcomes of the target populations, reducing the number of chronically homeless
individuals and improving the well-being of residents. The City may consider relevant information,
which may include, but is not limited to the following:
a. Housing Accessibility – Number of chronically homeless and homeless
individuals that successfully obtain housing within the Welcome Center and Village.
b. Length of Stay – Average days that TOSV residents successfully maintain housing
in the Welcome Center and/or Village.
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c. Returns to Homelessness – The extent to which TOSV residents return to
homelessness from being housed within the Welcome Center and/or Village.
d. Employment – Percent of TOSV residents that successfully obtain and retain
employment, recognizing that residents may not be able to participate in employment.
e. Income Growth – Percent of income growth for TOSV residents, if any.
f. Service Provider Partnerships – The extent to which TOSV establishes
partnerships with services providers to provide on-site and offsite supportive services.
g. Housing Referral Partnerships – The extent to which TOSV establishes
partnerships with service providers for housing referrals.
3. Community impact at the neighborhood level, the Village’s impact on the surrounding
community. The City may consider relevant information, which may include, but is not limited to the
following:
a. Community Amenities – The successful development and operation of agreed-
upon community amenities, including a small grocery store.
b. Public Safety – The number of Police calls and cases within the Village, and other
metrics of public safety.
c. Code Enforcement – The number of enforcement cases.
d. Environmental – The extent to which TOSA completes the necessary
environmental mitigation for the planned land uses.
Resolution 32 of 2022 The Other Side Village
Pilot Project at 1850 West Indiana Avenue,
Public Benefits Analysis and to Authorize the
Lease Rate and Terms
Final Audit Report 2022-11-10
Created:2022-11-09
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAH2056iKBCEoLMyklbo9aYnEsRQ0YZstP
"Resolution 32 of 2022 The Other Side Village Pilot Project at 18
50 West Indiana Avenue, Public Benefits Analysis and to Authori
ze the Lease Rate and Terms" History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2022-11-09 - 7:23:49 PM GMT
Document emailed to Kimberly Chytraus (kimberly.chytraus@slcgov.com) for signature
2022-11-09 - 7:25:44 PM GMT
Email viewed by Kimberly Chytraus (kimberly.chytraus@slcgov.com)
2022-11-09 - 10:43:56 PM GMT
Document e-signed by Kimberly Chytraus (kimberly.chytraus@slcgov.com)
Signature Date: 2022-11-09 - 10:45:43 PM GMT - Time Source: server
Document emailed to Daniel Dugan (daniel.dugan@slcgov.com) for signature
2022-11-09 - 10:45:44 PM GMT
Email viewed by Daniel Dugan (daniel.dugan@slcgov.com)
2022-11-10 - 0:06:58 AM GMT
Document e-signed by Daniel Dugan (daniel.dugan@slcgov.com)
Signature Date: 2022-11-10 - 0:07:11 AM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2022-11-10 - 0:07:12 AM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2022-11-10 - 8:25:20 PM GMT - Time Source: server
Agreement completed.
2022-11-10 - 8:25:20 PM GMT