Council Provided Information - 11/4/2022SPARK!
1 5 0 0 W . N O R T H T E M P L E
A U G U S T 2 0 2 2
TRAX
LOCATION 1500 W. North Temple
Former Overniter Motel
North Temple Project Area
PARCEL DETAILS
Formerly the Overniter Motel
Tier 1 Property
2.07 acres
North Temple/Cornell Station Area Plan
TODAY
Background
Public Benefits
Affordable Housing Elements
Project Funding Sources, RDA
Participation & Seller's Note Financing
(Solving For): Gap Financing Request
Options
Next Steps
2017
Acquisition
funds
approved
2018
Developer
selected:
NOFA
awarded
2021
Due
diligence:
LIHTC
financing
finalized
2025
Project
completion
2019
Due
diligence:
NOFA
awarded
2022
Due
diligence:
Financing
finalized
Closing
2023
Spring:
Break
Ground
PROJECT TIMELINE
Affordable workforce & family size housing units
200 residential units
63 family sized units, 20-80% AMI
Healthy Living Programs such as meditation,
yoga, exercise
~5,000 sf of Neighborhood Serving Retail
Neighborhood activation
Outdoor Dining Opportunities
~4,000 sf Daycare Facility
Serves Spark residents and low-income
members of the community at a sliding
scale cost
Midblock Walkway
High Level of Design
Building Sustainability Measures: Enterprise
Green Communities, ENERGY STAR
Multifamily New Construction
PUBLIC BENEFITS
Transit, Pedestrian, & Bicycle Oriented Design
Corner Plaza
Open Leisure Space
Bicycle Storage
Interconnected Location
Structured Parking
Free to low-income residents per LIHTC requirements
~10 EV Charging Stations
Davis Bacon fair wages
63 family-sized units
50% of the units (100 total) affordable to households at
or below 60% AMI (ranging from 20-60% AMI)
50% of the units (100 total) affordable to households
between 70% and 80% AMI (currently market rate
range for the neighborhood)
100% deed restricted for affordability into the future
Unit mix maximizes ~$42.5 Million LIHTC equity to be
invested in the North Temple area
200 Total Units
IMPACTFUL UNIT MIX Affordable workforce & family size housing units
FUNDING SOURCES
*Pie chart & capital stack provided by Brinshore
~$42,540,000
RDA PARTICIPATION TO DATE
2018 NOFA: ~$2.5M
2019 NOFA: ~$3.9M
2%, 30 year term, CF
Total: ~$6,456,000
Paid back in full, plus interest
SELLER'S NOTE FINANCING
$4M
Established in 2018
1.25%, 30 year term, CF
Paid back in full, plus interest
GAP LOAN REQUEST
$4M
2%, 30 year term, CF
Paid back in full, plus interest
COST SAVING MEASURES
~$6.1M in Value Engineering
Removal of underground parking, balconies,
unit reconfiguration, reducing green roof space
Applied for/received UHC increased basis: $.5M
Applied for additional Olene Walker Funds
Applied for additional Philanthropic Funds
DEVELOPER CONTRIBUTION
Funding predevelopment (~$1,600,000)
$3,000,000 deferred developer fee
Guarantees (construction completion,
operating deficit, tax credit compliance)
Commercial Master Lease (~$70,000/year)
Construction cost increases
Material & transportation costs
Supply chain issues
Interest rates rising
Cost of power infrastructure
COST INCREASES
POTENTIAL FUNDING OPTIONS
~$60M TDC
RDA Participation: $10,456,000 (2018 & 2019 NOFA and
Seller's Note)
RDA % of TDC: 17.5%
~$93M TDC
RDA Participation: $14,456,000 (2018 & 2019 NOFA, Seller's
Note, and Gap Loan)
RDA % of TDC: 15.5%
2020:
2022:
Further Value Engineering / Removal of
Commercial:
~$650-700K in additional cost savings
September:
Seller's Note approval
Gap Loan straw poll
October:
Gap Loan:
Agency staff returns with applicable Budget Amendment
Public hearing
November:
Gap Loan final approval
December:
Spark project closes by end of year and within deadline
POTENTIAL NEXT STEPS
WWW.SLCRDA.COM
RDA @SLCGOV.COM