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Transmittal - 1/10/2023 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: December 23, 2022 PREPARED BY: Makena Hawley & Lauren Parisi, RDA Project Managers RE: State Street Community Reinvestment Area REQUESTED ACTION: Consider Adoption of a Resolution Approving the State Street Interlocal Agreement between Salt Lake County and the RDA POLICY ITEM: Project Area Creation BUDGET IMPACTS: State Street Tax Increment Revenue EXECUTIVE SUMMARY: In the fall of 2018, the Board of Directors (“Board”) of the Redevelopment Agency of Salt Lake City (“RDA”) adopted the State Street Reinvestment Area (“CRA”) plan. The CRA plan acts as a guiding document for the utilization of tax increment funds in the State Street project area. Since that time, RDA staff has been negotiating terms of tax increment participation with Salt Lake City (“City”), Salt Lake City School District (“School District”) and Salt Lake County (“County”). Pursuant to Utah Code 17-C Community Reinvestment Agency Act (the “Act”), all participating taxing entities are required to enter into an interlocal agreement (“ILA”) with the RDA, which the Board must subsequently adopt to trigger the effective date of the agreement. The Board adopted resolutions approving ILAs between the City and the School District for the State Street project area in October of 2020. Salt Lake County Council approved the terms within the State Street ILA in December of 2022. The purpose of this memo is to request the Board’s consideration of the adoption of a resolution approving this ILA for the State Street CRA between the County and the RDA (Attachment A). The City, School District and County make up the three taxing entities contributing tax increment to the State Street CRA. ANALYSIS: Salt Lake County – State Street CRA Participation Terms – After much negotiation, the Salt Lake County Council approved the participation terms for the State Street CRA listed in the table below and described in greater detail within the interlocal agreement. These terms differ from what was originally requested by the RDA. To note, the terms initially requested by the RDA are the same terms included in the ILAs for the City and the School District. Requested Participation Terms 2020 Final Participation Terms within ILA 2022 Base Taxable Year 2016 2021 Base Taxable Value $889,305,536 $1,420,601,199 Collection Period 20 Years 20 Years Participation Rate 75% 75% Contribution Cap $18,224,000 $8,194,813 Allowable Uses of County Increment • Project Area Development – 80% • Citywide Housing – 10% • RDA Admin. – 10% • State Street Housing – 70% • Citywide Housing – 23% • Environmental Remediation – 2% • RDA Admin – 5% Other notable terms included by the County within the interlocal agreement include: • Restriction Against Loans – The interlocal agreement specifies that the RDA may not use County increment in a revolving loan fund or for any other type of loan products. County staff suggested that that their funds would be utilized more efficiently if dispersed to subsidize specific project gaps as opposed to granting longer-term loans. Therefore, County increment must be dispersed as tax increment reimbursements or grants. • Annual Mitigation Payment (Passthrough) – The County has requested they initially disperse 100% of their tax increment generated in the State Street CRA to the RDA, 25% of which the RDA will pass back to the County as an “Annual Mitigation Payment.” This is of benefit to the County because these funds will not be included as a part of the certified tax rate calculation. Additionally, because the funds do not go directly into the County’s general fund, they can be spent more flexibly. • County Administration Fee – The County has requested that 2% of their contribution be returned to them on an annual basis (up to a maximum of $156,092) to cover costs associated with evaluating their participation in the State Street CRA and ongoing administration of the interlocal agreement. NEXT STEPS: State Street CRA Budget Amendment – Pursuant to Utah Code, a consolidated CRA budget must be adopted by the Board for the State Street CRA. Negotiations with each of the participating taxing entities have resulted in different participation terms than those reflected in the consolidated CRA budgets originally adopted by the Board within the CRA plans. As such, the consolidated CRA budget will need to be amended to reflect the final participation terms agreed upon by each taxing entity. The main discrepancies include a reduced project area term from 25 to 20 years, a different maximum cumulative dollar amount that can be collected by the RDA and the different terms approved by the County as listed in the above table. The process to amend a CRA budget includes the following legislative actions: a. Public Noticing: In addition to the standard 14-day newspaper notice, Utah Code requires that all property owners within project area boundaries and participating taxing entities are sent notice of the budget amendment hearing 30 days in advance. b. Public Hearing: The Board holds a public hearing regarding the proposed budget amendment. c. RDA Resolution: At the public hearing or a subsequent board meeting, the Board may adopt the amended budget by resolution. Tentative Schedule – A resolution authorizing the terms of the State Street CRA between the County and the RDA has been transmitted for the Board’s consideration (Attachment A). The State Street CRA budget amendments will be brought to the Board in February. A tentative schedule has been broken down as follows: January 2023 1. Board: Transmit for Board’s consideration – • RDA resolution approving the interlocal agreement between the Salt Lake County and the RDA for the State Street CRA February 2023 1. Briefing Regarding State Street CRA Budget Amendment 2. Board: Set date for public hearing to amend State Street CRA Budget March 2023 1. Board: Hold public hearing for the State Street CRA budget amendment 2. Board: Transmit for the Board’s consideration – • RDA resolution amending the State Street CRA budget PREVIOUS BOARD ACTION: • March 2015: The Board approved a list of several areas to be evaluated and adopted evaluation criteria. • April 2015: The Board shortlisted six potential project areas for further staff analysis. • May 2015: Staff provided a recap of previous policy direction on the project area creation process, including clarification of the potential project area boundaries and the short-list evaluation criteria. • June 2015: Staff provided a written status update on the project area creation process. • August 2015: Staff presented its research on seven short-listed potential project areas to the RDA Board. The Board requested staff return with a matrix to assist in an informed discussion and project area selection prioritization in September. • September 2015: The Board selected the State Street, Ball Park, and 9-Line areas as the top ranked potential project areas. Staff commenced meeting with the Salt Lake City School District and Salt Lake County taxing entities to discuss the three areas and collect feedback on the potential terms of new project areas. • November 2015: The Board amended the State Street project area boundaries to include portions of the Ball Park project area. The Board approved the State Street and 9 Line project areas to move forward in the Community Development Area creation process. • December 2015: The Board authorized staff to proceed with the draft community development area plans for the 9 Line and State Street Project Areas. • April 2016: The Board authorized staff to proceed with the draft community reinvestment area plans for the 9 Line and State Street Project Areas as redefined in Utah Title 17C. • November 2016: Staff presented an update to the Board regarding the State Street and 9 Line proposed project areas, including schedule and scope of work; results of a community outreach campaign; and draft project area redevelopment activities and geographic target areas. • January 2017: Staff presented to the Board regarding the following: the Board’s roles and opportunities for input during the project area creation process, including drafting the project area plan; the basis and components of the project area plans, including the purpose and components of the public benefits analysis; and an updated proposed timeline for next steps in the project area creation process. • February 2017: Staff presented to the Board plan components, including a statement of existing conditions and reasons for selecting the project area. • October 2017: Staff presented to the Board regarding the updated timeline for creating the 9 Line and State Street project areas. • November 2017: Staff provided an update on the Public Benefit Analyses for the proposed 9 Line and State Street Community Reinvestment Areas. • February 2018: The Board adopted a resolution authorizing the expansion of the Community Reinvestment Area boundary for the proposed State Street Project Area. • May 2018: The Board gave preliminary approval of the draft State Street and 9 Line Community Reinvestment Area (CRA) plans, allowing RDA staff to draft legal descriptions of the CRA, provide public notice of 30-day comment period and public hearing, and conduct a second round of community outreach on the draft CRA Plans. • August 2018: The Board approved resolutions adopting the State Street and 9 Line CRA Plans • August 2018: The City Council approved ordinances adopting the State Street and 9 Line CRA Plans. • September 2020: City Council approved resolutions authorizing the terms of the interlocal agreements between the City and the RDA for the State Street and 9 Line CRAs • October 2020: RDA Board approved resolutions adopting the interlocal agreements between the School District and the RDA as well as the City and the RDA for the State Street and 9 Line CRAs to trigger their effective date • January 2021: RDA Board approved resolution authorizing the terms of the interlocal agreement between the City and the County for the 9 Line CRA to trigger its effective data • March 2021: RDA Board approved resolution to amend the 9 Line CRA budget ATTACHMENTS: • Attachment A: RDA Resolution and County/RDA ILA for State Street CRA 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. of 2023 Interlocal Agreement Authorizing Use of a Portion of Tax Increment to Support the Implementation of the State Street Community Reinvestment Area Plan RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AUTHORIZING THE EXECUTION OF AN INTERLOCAL AGREEMENT AUTHORIZING USE OF A PORTION OF TAX INCREMENT TO SUPPORT THE IMPLEMENTATION OF THE STATE STREET COMMUNITY REINVESTMENT AREA PLAN WHEREAS, pursuant to Chapter 5, Community Reinvestment, of Title 17C of the Utah Code (the “Act”), the Redevelopment Agency of Salt Lake City (“Agency”) may approve a community reinvestment project area plan for the purpose of supporting community revitalization within a designated project area. WHEREAS, the Board of Directors of the Agency approved the State Street Community Reinvestment Project Area (“Project Area”) to facilitate the capture of tax increment within the boundaries of the Project Area which is further depicted in Exhibit A. WHEREAS, tax increment will be used to support commercial corridors and employment hubs to support living-wage jobs; attract and expand neighborhood retail and services; provide an array of housing choices to meet the needs of current residents while attracting new residents including new families; and increase neighborhood livability and safety. WHEREAS, Salt Lake County (the “County”) has approved the use of its tax increment from the Project Area to support the community revitalization activities in accordance with the Act, and doing so will require authorization of an interlocal agreement between the County and the Agency. WHEREAS, the parties desire to execute the interlocal agreement in which the County consents to the Agency being paid its share of the tax increment from the Project Area and will detail the Agency’s collection period for the tax increment. The interlocal agreement does not create an interlocal entity and is effective on the day in which the RDA posts notice of the execution of the interlocal agreement as required under the Act. 2 NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. It does hereby approve the execution and delivery of the following: INTERLOCAL COOPERATION AGREEMENT BETWEEN SALT LAKE COUNTY AND THE REDEVELOPMENT AGENCY OF SALT LAKE CITY [STATE STREET COMMUNITY REINVESTMENT AREA TAX INCREMENT] 2. Erin Mendenhall, Executive Director of the Redevelopment Agency of Salt Lake City or her designee, is hereby authorized to approve, execute, and deliver said agreement on behalf of the Redevelopment Agency of Salt Lake City, in substantially the same form as now before the Redevelopment Agency of Salt Lake City Board of Directors and attached hereto as Exhibit B, subject to such minor changes that do not materially affect the rights and obligations of the Redevelopment Agency thereunder and as shall be approved by the Executive Director, her execution thereof to constitute conclusive evidence of such approval. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this day of , 2023. Board Chair Transmitted to the Executive Director on . The Executive Director: does not request reconsideration requests reconsideration at the next regular Agency meeting. Erin Mendenhall, Executive Director 3 Approved as to form: Salt Lake City Attorney’s Office _______________________________________ Attest: City Recorder 4 EXHIBIT A [Attach Depiction of Project Area] 40 0 W e s t I- 1 5 50 0 E a s t St a t e S t r e e t St a t e S t r e e t 400 South400 South 500 South 500 South 600 South600 South 700 South 700 South 800 South800 South 900 South 1300 South 2100 South 1700 South We s t T e m p l e 5 EXHIBIT B [Attach Interlocal Agreement] REDEVELOPMENT AGENCY OF SALT LAKE CITY I DEPARTMENT OF ECONOMIC DEVELOPMENT FINAL STATE STREET COMMUNITY REINVESTMENT AREA PLAN State Street COMMUNITY REINVESTMENT AREA PLAN RDA BOARD OF DIRECTORS James Rogers, District 1 Andrew Johnston, District 2 Chris Wharton, District 3 Derek Kitchen, District 4 Erin Mendenhall, District 5 Charlie Luke, District 6 Amy Fowler, District 7 MAYOR RDA EXECUTIVE DIRECTOR Jacqueline M. Biskupski DEPARTMENT OF ECONOMIC DEVELOPMENT DIRECTOR RDA CHIEF EXECUTIVE OFFICER Lara Fritts RDA CHIEF OPERATING OFFICER Danny Walz ACKNOWLEDGEMENTS: FINAL CONTENTS i) INTRODUCTION ........................................................................................................4 1) COMMUNITY REINVESTMENT ANALYSIS (17C-5-105) ................................................7 1(a): PROJECT AREA BOUNDARY DESCRIPTION .............................................................................7 1(b): EXISTING LAND USES AND NEIGHBORHOOD CONTEXT ...........................................................9 1(c): STANDARDS TO GUIDE PROJECT AREA DEVELOPMENT .........................................................12 1(d): FURTHERING PURPOSES OF UTAH TITLE 17C .....................................................................13 1(e): GENERAL PLAN CONSISTENCY ...........................................................................................17 1(f): ELIMINATION OR REDUCTION OF BLIGHT ............................................................................18 1(g): SPECIFIC PROJECT AREA DEVELOPMENT ............................................................................18 1(h): PROCESS OF SELECTING PARTICIPANTS .............................................................................19 1(i): REASON FOR SELECTING THE PROJECT AREA ......................................................................19 1(j): EXISTING PHYSICAL, SOCIAL, ECONOMIC CONDITIONS .........................................................20 1(k): FINANCIAL ASSISTANCE OFFERED TO PARTICIPANTS ...........................................................25 1(l): PUBLIC BENEFIT ANALYSIS SUMMARY ................................................................................26 1(m): HISTORIC PRESERVATION .................................................................................................30 1(n): INTERLOCAL AGREEMENT .................................................................................................30 1(o)(i): OTHER INFORMATION - GEOGRAPHIC FOCUS AREAS .........................................................31 1(o)(ii): OTHER INFORMATION - COMMUNITY OUTREACH ..............................................................32 2) PROJECT AREA BUDGET (17C-5-303) ......................................................................35 2.1(a): BASE TAXABLE VALUE ....................................................................................................36 2.1(b): PROJECTED AMOUNT OF TIF ...........................................................................................36 2.1(c): COLLECTION PERIOD .....................................................................................................36 2.1(d): TIF PAID TO OTHER TAXING ENTITIES ..............................................................................36 2.1(e): IF TIF COLLECTION AREA IS LESS THAN CRA BOUNDARY ..................................................36 2.1(f): PERCENTAGE OF TIF AUTHORIZED TO RECEIVE .................................................................37 2.1(g): MAXIMUM CUMULATIVE DOLLAR AMOUNT ........................................................................37 2.2: SALES AND USE TAX REVENUE ...........................................................................................37 2.3: PROJECT AREA FUNDS TO IMPLEMENT THIS CRA PLAN ........................................................37 2.4: RDA’S COMBINED INCREMENTAL VALUE ..............................................................................38 2.5: PROJECT AREA FUNDS USED FOR ADMINISTRATION .............................................................38 2.6: EXPECTED SALES PRICE FOR PROPERTY THE RDA OWNS ......................................................38 EXHIBIT A: STATE STREET CRIME 6/1/14 TO 5/31/15 EXHIBIT B: POTENTIAL PROJECT AREA RESEARCH REPORT EXHIBIT C: PUBLIC BENEFIT ANALYSIS AND PROJECT AREA BUDGET Page 4 – State Street CRA Plan Page 5 – State Street CRA Plan    Page 6 – State Street CRA Plan     Page 7 – State Street CRA Plan Page 8 – State Street CRA Plan Page 9 – State Street CRA Plan Page 10 – State Street CRA Plan Page 11 – State Street CRA Plan Page 12 – State Street CRA Plan Page 13 – State Street CRA Plan  Page 14 – State Street CRA Plan    o o       Page 15 – State Street CRA Plan           Page 16 – State Street CRA Plan          Page 17 – State Street CRA Plan             Page 18 – State Street CRA Plan            Page 19 – State Street CRA Plan     o o o o o o Page 20 – State Street CRA Plan       Page 21 – State Street CRA Plan Page 22 – State Street CRA Plan Page 23 – State Street CRA Plan Page 24 – State Street CRA Plan Page 25 – State Street CRA Plan Page 26 – State Street CRA Plan Page 27 – State Street CRA Plan      Page 28 – State Street CRA Plan    Page 29 – State Street CRA Plan       Page 30 – State Street CRA Plan Page 31 – State Street CRA Plan Page 32 – State Street CRA Plan   o o o o          Page 33 – State Street CRA Plan   Page 34 – State Street CRA Plan    Page 35 – State Street CRA Plan Page 36 – State Street CRA Plan Page 37 – State Street CRA Plan  Page 38 – State Street CRA Plan           Exhibit A State Street Crime in the Past Year (6/1/14-5/31/15) St a t e S t 600 S 700 S 800 S 900 S 1300 S Harvard Ave Ma j o r S t Yale Ave Ed i s o n S t Edith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pton Pl Gregory Pl Fo u l g e r S t St r i n g f e l l o w C t Ma j o r S t Herbert Ave Ma j o r S t Ed i s o n S t 4 0 500 1,000250 Feet State Street Crime in the Past Year Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015 Type Count ALCOHOL IN VEH 2 ARSON 2 ASSAULT 253 BURGLARY 83 COMMERCIAL SEX 34 COUNTERFEITING 3 DAMAGED PROP 88 DRUGS 140 DUI - CLS A 1 DUI ALCOHOL 33 DUI DRUGS 4 EMBEZZLEMENT 2 ESCAPE 272 FAMILY OFFENSES 31 FLEEING 5 FORGERY 46 FRAUD 78 HIT AND RUN 41 INV OF PRIVACY 56 KIDNAP 4 LARCENY 560 LIQUOR 14 MORALS-DECENCY 6 OBST JUDICIAL 6 OBST POLICE 35 PUBLIC ORDER 70 PUBLIC PEACE 34 ROBBERY 38 SEX OFFENSES 1 SEXUAL ASSAULT 16 SEXUAL OFFENSE 11 STOLEN PROP 28 STOLEN VEHICLE 88 TA-INJ/ALCOHOL 1 TRAFFIC 8 WEAPON OFFENSE 10 St a t e S t Ma j o r S t 2100 S 1700 S 1300 S 20 0 E Cleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Ed i s o n S t Garfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Westmin ster Ave 200 E Ed i s o n S t Edi son St Ed i s o n S t 500 S Ma i n S t 20 0 E Ma i n S t 20 0 E Primary offenses recorded by SLC Police Department 6/1/14 - 5/31/15 Legend Crime Density High Low         Exhibit B Potential Project Area Research Report: State Street State Street - 1 Potential Project Area Research Report: State Street Introduction: State Street is a major gateway into downtown, but it currently aesthetically misrepresents our city. The proposed State Street project area is located between 500 South and 2100 South from Main Street to 200 East. This project area will be a major tax increment generator focused on revitalizing underused structures and creating opportunities for redevelopment along the State Street corridor, while improving the overall look and feel of the corridor. The S-Line Streetcar crosses State Street just south of the project area, which is outside of Salt Lake City’s municipal boundary, but could possibly provide a starting point for activity generation and a major impetus for development of commercial and mixed-use including housing within the corridor. Relevant Data: Area Acreage: ~314 acres Zoning Designations/Area Percentage: Zoning Type Acreage % of Total Commercial 134.10 43% Downtown 81.58 26% Institutional and Public Land 35.25 11% Single Family Residential 53.05 17% Multi-Family Residential 10.14 3% TOTAL 314.12 100% As shown in the attached “State Street, Zoning” map, the majority of the parcels within the project area boundaries are designated for commercial and business uses, with a smaller number designated for residential uses. There are also two properties (Salt Lake Community College and the Salt Lake County Government Center) that are designated as institutional/public land. Crime Data: The attached map of “State Street, Crime in the Past Year” shows a list and hot spot map of all primary offenses recorded by the Salt Lake City Police Department during the time period of June 1, 2014 to May 31, 2015. As shown in the map, there are multiple areas with high density crime, with the highest areas near the northeast corner of State Street and 900 South, and on the east side of State Street, between 800 South and 700 South. State Street - 2 Current Public Transit Availability: As shown in the attached map of “State Street, Employment and Mass Transit,” the proposed State Street project area has one main bus route, the 200, running north and south along State Street. In addition to this primary bus route, the 21, 17, 9, and 451 cross State Street within the project area boundaries at 2100 South, 1700 South, 900 South, and 600 South, respectively. In terms of weekday bus frequency, the 200 and 21 run every 15 minutes, the 9 and 17 run every 30 minutes, and the 451 is the Tooele Express, which runs three times in the morning and three times in the evening. The S-line streetcar crosses State Street just south of the project area, and outside of Salt Lake City’s municipal boundary, (between Wentworth Ave and Truman Ave, just south of 2100 S), and the 400 South light rail line is located one block north of the project area. Major Employment and Commercial Centers: The number of businesses within the proposed State Street project area, and the number of employees at each business, is shown in the attached map of “State Street, Employment and Mass Transit.” As shown in the map, there are many businesses located within the project area, the majority of which are relatively small (1-40 employees), and a few that are relatively large (111-304 employees, and 305-613 employees). Some types of existing businesses within the subject area include motels, pawn shops, small retail clothing/boutiques, ethnic grocers, restaurants, bars, and automobile dealerships. City/County/Institutional Plans Master Plan Goals: The proposed State Street project area falls within the Central Community Master Plan, as well as the neighborhood planning areas of Downtown, Liberty, and People’s Freeway. In general, the Central Community Master Plan emphasizes the need for livable communities and neighborhoods, vital and sustainable commerce, unique and active places, and pedestrian mobility and accessibility. This area is also included in the Draft Downtown Community Plan (May 2015). The following is a list of applicable elements of the Master Plan and Draft Downtown Community Plan goals and visions that could be accomplished through redevelopment of the State Street potential project area: • Create an enhanced built environment to encourage employees to work and live in the Central Community and support the creation of smaller locally owned businesses. • Maintain a variety of residential land uses, including preservation of housing stock that improves neighborhood character. • Appropriately transition between multi-family housing and mixed land uses in designated areas to support sustainable development. • Improve pedestrian movement along arterials and collectors to ensure pedestrian safety, and develop ways to address the isolation between major roadways and improve pedestrian orientation. State Street - 3 • Locate higher density residential land uses are near commercial areas, light rail stations, and open space. • Eliminate problems associated with pawnshops, prostitution, and undesirable activities on State Street. • Preserve historic structures that contribute to the culture of the community, and use design guidelines and review processes to ensure that new construction is compatible with the surrounding areas and established land use patterns. • Maintain a variety of park sites and open spaces so residents can enjoy active and passive recreation space. • Increase pedestrian accessibility and cultural activities to encourage more housing that supports the employment center of the downtown area. Recent or Planned Changes to Zoning: The current Draft Downtown Community Plan (May 2015) includes a section on State Street and the zoning framework for the corridor. The Planning Division is considering rezoning the corridor along State Street to encourage midrise mixed-use development to help promote short-term redevelopment. Wasatch 2040: There are ten strategies for local governments to implement the Wasatch Choice for 2040 (WC2040) vision. Strategy I is the most applicable to the work of the RDA, and it includes seven characteristics to be used to identify priority reuse areas. The table below identifies which of these seven characteristics applies to the State Street project area. WC2040 states that reuse efforts should focus on areas that have at least three of the seven characteristics. Characteristics Identified for Priority Reuse Areas St a t e S t r e e t The area has underutilized infrastructure. The location includes pedestrian-friendly physical characteristics or the potential for such. ● Reuse would further other neighborhood revitalization objectives. ● The area is located close to frequent transit service and has adequate automobile access. ● An analysis indicates raw financial potential for reuse. ● An unmet demand for workforce housing or compact housing develops in the community. ● The area has “character” – a strong identity or sense of place. ● Of the remaining nine strategies in WC2040, the following were identified as relevant to the State Street project area: • Strategy II: Provide Incentives for Contiguous Growth and Infill • Strategy IV: Create Walkable Commercial and Mixed-Use Districts • Strategy VII: Create a Plan for Workforce Housing State Street - 4 Plan Salt Lake: Plan Salt Lake comprises the following thirteen guiding principles: 1) Neighborhoods, 2) Growth, 3) Housing, 4) Transportation & Mobility, 5) Air Quality, 6) Natural Environment, 7) Parks & Recreation, 8) Beautiful City, 9) Preservation, 10) Arts & Culture, 11) Equity, 12) Economy, and 13) Government. Although all of these principles apply, in some way, to the work of the RDA, we focused on a subset of them (shown in bold and green text above) to highlight specific initiatives that could apply to Master Plan goals in the project area. The initiatives that apply most specifically to the State Street project area are listed below: • Create a safe and convenient place for people to carry out their daily lives. • Encourage and support local businesses and neighborhood business districts. • Provide opportunities for and promotion of social interaction. • Locate new development in areas with existing infrastructure and amenities, such as transit and transportation corridors. • Encourage a mix of land uses. • Ensure access to affordable citywide housing, including rental and very low income. • Enable moderate density increases within existing neighborhoods where appropriate. • Make walking and cycling viable, and safe and convenient transportation options in all areas of the City. • Incorporate pedestrian oriented elements… into our rights-of-way and transportation networks. • Reinforce downtown as the visually dominant center of the City through the use of design standards and guidelines. • Identify and establish standards for key gateways into the City. • Balance preservation with flexibility for change and growth. • Foster and support growth of the creative economy sector. Salt Lake County CDA Policy Conformance: The attached table of “State Street Potential Project Area – Salt Lake County CDA Project Considerations” shows that this project area would likely be considered a favorable project area. Project Area Strategies: Infrastructure Improvement: Both the UTA Transit Network Plan and Utah’s Unified Transit Plan identify a Bus Rapid Transit line on State Street. Safer east-west pedestrian crossings at State Street are needed. SLC Engineering identified the need to standardize the street beautification elements along State Street, as well as current drainage challenges. Note: The City is responsible for the sidewalk and park strip while UDOT is responsible for the street. Housing: The State Street corridor contains a mix of commercial interspersed with small single family residential neighborhoods. The RDA can assist by stabilizing existing neighborhoods while creating new quality mixed use and commercial developments. State Street - 5 Economic Development: The SLC Economic Development Division strongly recommends State Street as a new project area, as well as including both sides of Main Street in the redevelopment area. The redevelopment of this portion of State Street provides significant opportunities to revitalize older buildings and create new leasable spaces to help establish more commercial and mixed use along the corridor. Blight Mitigation: If this project area is considered for an Urban Renewal Area, a blight study will need to be conducted as part of the project area creation process. RDA-City Financing/Program Tools RDA Tax Increment: Tax increment over a 25-year project area period was estimated for each potential project area, using 2014 tax revenue as the base value and an annual growth rate of 2%. The net present value of the total annual tax increment was calculated using a 5% discount rate. Estimated Tax Increment Projections, 2016-2041: Project Area 25-Year Projected Tax Increment* State Street $18,583,426 *Based on 100% TI Capture by RDA City Funding Objectives/Financing Tools: Below are RDA and City programs that may be utilized in this project area. The City has numerous programs to leverage Tax Increment Funding, however, consideration of specific programs beyond those listed below can be made in the next phase of the New Project Area Creation Process. RDA Loan Programs: The RDA can assist property owners with building renovation and new construction. It offers the following assistance programs: • New Construction Loan Program • Building Renovation Loan Program • Environmental Assessment and Remediation Loan Program • Property Acquisition Loan Program • Tax Increment Reimbursement Program City Assistance Programs: Salt Lake City can partner with the RDA and/or property owners in the project area using the following programs: • Capital Improvement Program • Community Improvement & Outreach Grants • Small Business Revolving Loan Fund • Community Development Block Grant (may only apply to certain parts of this area) • HAND Housing Programs (HOME, First Time Home Buyer, Housing Trust Fund) • Class C Road Funds State Street potential project area 2100 South 500 South 20 0 E a s t 20 0 E a s t Ma i n S t r e e t Ma i n S t r e e t 1300 South State Street potential project area 2100 South 20 0 E a s t 20 0 E a s t Ma i n S t r e e t Ma i n S t r e e t 1300 South 1300 South 500 South - 1300 South 1300 South - 2100 South 500 South State St 600 S 700 S 800 S 900 S 1300 S Ha r var d A ve Maj or St Yal e A ve Ediso n St Edit h A ve Kel sey Ave He rber t A ve Be lm ont A ve W il li am s Ave Ha mpt on Ave U pto n Pl Gr e gor y Pl Foul ger St Stri ngfe ll ow Ct Maj or St He rber t A ve Maj or St Ediso n St 4 0 500 1,000250Feet State StreetBuilding Value / Land Value Legend Non R esidential BLDG / LAND 0 - 0.79 0.8 - 1.2 > 1.21 Residential BLDG / LAND 0 - 0.79 0.8 - 1.2 > 1.21 Drawn By: K. BellSalt Lake City Corporat ionInformation Managem ent Servic esJuly 2015 State St Maj or St 2100 S 1700 S 1300 S 200 E Clevelan d Ave Co atsville Ave Kensington Ave Wood Ave Br yan Ave Ediso n St Ga rfi el d Ave Ha rrison Ave Redon do Ave Wilson Ave 1630 S Dow ni ngto n Ave Westminster Ave 200 E Ediso n St Edi son S t Ediso n St 500 S Main St 200 E Main St 200 E St a t e S t 600 S 700 S 800 S 900 S 1300 S Harvard Ave Ma j o r S t Yale Ave Ed i s o n S t Edith Ave Kelsey Ave Herbert Ave Belmont Ave Williams Ave Hampton Ave U pton Pl Gregory Pl Fo u l g e r S t St r i n g f e l l o w C t Ma j o r S t Herbert Ave Ma j o r S t Ed i s o n S t 4 0 500 1,000250 Feet State Street Crime in the Past Year Drawn By: K. Bell Salt Lake City Corporation Information Management Services July 2015 Type Count ALCOHOL IN VEH 2 ARSON 2 ASSAULT 253 BURGLARY 83 COMMERCIAL SEX 34 COUNTERFEITING 3 DAMAGED PROP 88 DRUGS 140 DUI - CLS A 1 DUI ALCOHOL 33 DUI DRUGS 4 EMBEZZLEMENT 2 ESCAPE 272 FAMILY OFFENSES 31 FLEEING 5 FORGERY 46 FRAUD 78 HIT AND RUN 41 INV OF PRIVACY 56 KIDNAP 4 LARCENY 560 LIQUOR 14 MORALS-DECENCY 6 OBST JUDICIAL 6 OBST POLICE 35 PUBLIC ORDER 70 PUBLIC PEACE 34 ROBBERY 38 SEX OFFENSES 1 SEXUAL ASSAULT 16 SEXUAL OFFENSE 11 STOLEN PROP 28 STOLEN VEHICLE 88 TA-INJ/ALCOHOL 1 TRAFFIC 8 WEAPON OFFENSE 10 St a t e S t Ma j o r S t 2100 S 1700 S 1300 S 20 0 E Cleveland Ave Coatsville Ave Kensington Ave Wood Ave Bryan Ave Ed i s o n S t Garfield Ave Harrison Ave Redondo Ave Wilson Ave 1630 S Downington Ave Westmin ster Ave 200 E Ed i s o n S t Edi son St Ed i s o n S t 500 S Ma i n S t 20 0 E Ma i n S t 20 0 E Primary offenses recorded by SLC Police Department 6/1/14 - 5/31/15 Legend Crime Density High Low State St 600 S 700 S 800 S 900 S 1300 S Ha r var d A ve Maj or St Yal e A ve Ediso n St Edit h A ve Kel sey Ave He rber t A ve Be lm ont A ve W il li am s Ave Ha mpt on Ave U pt on Pl Gr e gor y Pl Foul ger St Stri ngfe ll ow Ct Maj or St He rber t A ve Maj or St Ediso n St 4 0 500 1,000250Feet State St reetParcel Value Change Drawn By: K. BellSalt Lake City Corporat ionInformation Managem ent Servic esJuly 2015 State St Maj or St 2100 S 1700 S 1300 S 200 E Clevelan d Ave Co atsville Ave Kensington Ave Wood Ave Br yan Ave Ediso n St Ga rfield Ave Ha rrison Ave Redon do Ave Wilson Ave 1630 S Dow ni ngto n Ave Wes tminster Ave 200 E Ediso n St Edi son St Ediso n St 500 S Main St 200 E Main St 200 E Legend Parcel Value Percent Change 2009 - 2014 < -90% -90% to -11% -10% to 10% 11% to 200% >200% B B B B B B B B B B B B B B B B B B B State St 600 S 700 S 800 S 900 S 1300 S Ha r var d A ve Maj or St Yal e A ve Ediso n St Edit h A ve Kel sey Ave He rber t A ve Be lm ont A ve W il li am s Ave Ha mpt on Ave U pt on Pl Gr e gor y Pl Foul ger St Stri ngfe ll ow Ct Maj or St He rber t A ve Maj or St Ediso n St 4 0 500 1,000250Feet State St reetEmployment & M ass Transit Drawn By: K. BellSalt Lake City Corporat ionInformation Managem ent Servic esJuly 2015 B B B B B B B B B B B B BBB B B B B B B B B B B B State St Maj or St 2100 S 1700 S 1300 S 200 E Clevelan d Ave Co atsville Ave Kensington Ave Wood Ave Br yan Ave Ediso n St Ga rfi el d Ave Ha rrison Ave Redon do Ave Wilson Ave 1630 S Dow ni ngto n Ave Wes tmins ter Ave 200 E Ediso n St Edis on St Ediso n St 500 S Main St 200 E Main St 200 E 451 9 Legend Employee CountPer Business 1 - 11 12 - 40 41 - 110 111 - 304 305 - 613 B uta_bus_stops uta_bus_routes T uta_rail_stops uta_rail_lines 17 21 200 Bus Route Num ber State St 600 S 700 S 800 S 900 S 1300 S Ha r var d A ve Maj or St Yal e A ve Ediso n St Edit h A ve Kel sey Ave He rber t A ve Be lm ont A ve W il li am s Ave Ha mpt on Ave U pt on Pl Gr e gor y Pl Foul ger St Stri ngfe ll ow Ct Maj or St He rber t A ve Maj or St Ediso n St D-1 D-2 D-2 D-2 CC CC D-2 D-2 D-2 D-2 D-2 CC D-2 CND-2 D-1 CC CCCC CC CCCC CC CC CC CC RMF-35 CN R-1-5000 R-1-5000 R-1-5000 CC RMF-75 R-1-5000 R-1-5000 CC R-1-5000 CC CC CC CC CC CC SR-3 R-1-5000 SR-3 R-1-5000 R-1-5000 CC R-1-5000 CC RMF-45 D-2 R-1-5000R-1-5000 D-1 D-2 D-2 D-2 CC CC D-2 D-2 D-2 D-2 D-2 CC D-2 CND-2 D-1 CC CCCC CC CC CC CC CC CC RMF -3 5 CC CN R-1-50 00 R-1-50 00 CC RMF -7 5 R-1-50 00 CC SR-3 R-1-50 00 R-1-50 00 SR-3 CC CC CC CC CC CC CC D-2 4 0 500 1,000250Feet State St reetZoning Drawn By: K. BellSalt Lake City Corporat ionInformation Managem ent Servic esJuly 2015 State St Maj or St 2100 S 1700 S 1300 S 200 E Clevelan d Ave Co atsville Ave Kensington Ave Wood Ave Br yan Ave Ediso n St Ga rfi el d Ave Ha rrison Ave Redon do Ave Wilson Ave 1630 S Dow ni ngto n Ave W est minster Ave 200 E Ediso n St Edi son St Ediso n St I BP PL CC CC CC CC CC CC CC CC CCCCCCCC CC CC CC CC CC CC CC CC R-1-5000 CC CC RMF-75 CC CC R-1-5000 CC CCCC CC CC R-1-5000 CC CCCC CC CCCC R-1-5000 CCCC R-1-5000 RMF-45 R-1-5000 R-1-5000R-1-5000 R-1-5000 R-1-5000R-1-5000 R-1-5000 CC R-1-5000 R-1-5000 R-1-5000R-1-5000R-1-5000 R-1-5000 R-1-5000 I BP PL CC CC CC CC CC CC CC CC CCCC CCCC CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC R-1-50 00 R-1-50 00 RMF -7 5 CC R-1-50 00 RMF -4 5 R-1-50 00 CC CCCC CC R-1-50 00 R-1-50 00R-1-50 00R-1-50 00 CCCC R-1-50 00 CC R-1-50 00 CCCC R-1-50 00R-1-50 00 R-1-50 00 LegendZoning Districts Organizedby Zoning TypeCommercial Downtow n Institutional and Public Land Singl e Fam ily Res idential Multi-Fam ily Resi dential 500 S Main St 200 E Main St 200 E State Street Potential Project Area - Salt Lake County Community Development Area (CDA) Project Considerations1 1Table presents select CDA Project Considerations derived from Salt Lake County, Countywide Policy and Procedures on Community Development Areas: https://slco.org/economic- development/redevelopment-area-resources/. The criteria presented in the table are those that are general enough to apply at this stage of potential project area ranking; additional Salt Lake County Policy Criteria will apply to specific CDA terms that would be negotiated once the project areas are ranked; these are listed below. Other (favorable) Salt Lake County CDA Project Considerations – to be negotiated once project areas are ranked:  Project is one where County’s tax increment participation period is limited to 20 years or less.  Project is one where County’s tax increment participation rate is limited to 75% or less.  Project is one where County’s cumulative tax increment contribution to the agency is capped at a specified dollar amount.  Project is one where County’s tax increment dollars will be used primarily to pay for or reimburse the cost of “public infrastructure and improvements,” as defined by Utah Code 17C-1-102(41), environmental remediation, and/or site preparation.  Project is one where the local jurisdiction2 is participating in the proposed project at a rate of at least $1 for every $1 contributed by the County from all sources, inclusive of any County Library contributions, either upfront or over the life of the proposed County contribution. The local jurisdiction can demonstrate that it is contributing other resources in addition to CDA proceeds and infrastructure, the value of which is equal to or greater than the prescribed ratio of participation. 2“Local jurisdiction” includes a City’s CDA participation plus any contribution from all other taxing entities (i.e., mosquito abatement district, water district, fire service area, law enforcement area, etc.) except for the school district participation which is not included in the $1:$1 ratio calculation. CDA Project Criterion Yes No Maybe Favorable Considerations Project would not happen in a reasonable timeframe, or at proposed amenity level, but for the creation of the CDA and use of tax increment financing. ● Project is transit-supported, mixed-use development with significant employment potential. ● Project is located in strategic growth area as defined in the Wasatch Choice for 2040 and/or the regional transportation plan. ● Project will complement regionally significant community planning efforts. ● Project will create long-term, high-paying jobs. ● Unfavorable Considerations Project Area is predominantly market-rate housing. ● Project Area is predominantly retail (if yes, material justification for CDA will be evaluated on a case- by-case basis). ● Project Area is predominantly standalone single-family dwellings. ● Project will merely cause a relocation of jobs or retail sales from one area in the County to another area in the County. ● Project will involve development on sensitive land designated as open space, foothill, canyon, or other County-designated priority area. ●         Exhibit C Public Benefit Analysis and Project Area Budget State Street Community Reinvestment Area (DRAFT) PUBLIC BENEFIT ANALYSIS AND PROJECT AREA BUDGET STATE STREET COMMUNITY REINVESTMENT AREA (CRA) REDEVELOPMENT AGENCY OF SALT LAKE CITY, UTAH APRIL 2018 Page | 2 Table of Contents TABLE OF CONTENTS ......................................................................................................................................... 2 SECTION 1: INTRODUCTION .............................................................................................................................. 3 SECTION 2: DESCRIPTION OF COMMUNITY DEVELOPMENT PROJECT AREA ................................................. 3 SECTION 3: GENERAL OVERVIEW OF PROJECT AREA BUDGET ....................................................................... 4 SECTION 4: PROPERTY TAX INCREMENT .......................................................................................................... 5 SECTION 5: COST/BENEFIT ANALYSIS ............................................................................................................... 8 EXHIBIT A: PROJECT AREA MAP ......................................................................................................................... 9 EXHIBIT B: MULTI-YEAR BUDGET .................................................................................................................. 11 Page | 3 Section 1: Introduction The Redevelopment Agency of Salt Lake City (the “Agency”), following thorough consideration of the needs and desires of the City of Salt Lake (the “City”) and its residents, as well as understanding the City’s capacity for new development, has carefully crafted the Project Area Plan (the “Plan”) for the State Street Community Reinvestment Project Area (the “Project Area”). The Plan is the end result of a comprehensive evaluation of the types of appropriate land-uses and economic development opportunities for the land encompassed by the Project Area which lies south of 300 South, north of 2100 South, between Interstate-15 (I-15) and 300 East. The Plan is envisioned to define the method and means of development for the Project Area from its current state to a higher and better use. The City has determined it is in the best interest of its citizens to assist in the development of the Project Area. This Project Area Budget document (the “Budget”) is predicated upon certain elements, objectives and conditions outlined in the Plan and intended to be used as a financing tool to assist the Agency in meeting Plan objectives discussed herein and more specifically referenced and identified in the Plan. The creation of the Project Area is being undertaken as a community reinvestment project pursuant to certain provisions of Chapters 1 and 5 of the Utah Community Reinvestment Agency Act (the “Act”, Utah Code Annotated (“UCA”) Title 17C). The requirements of the Act, including notice and hearing obligations, have been observed at all times throughout the establishment of the Project Area. Section 2: Description of Community Development Project Area The Project Area lies south of 300 South, north of 2100 South, between I-15 and 300 East, and is located within the City’s south central boundaries. This area in particular serves as the main alternative transit corridor throughout the Salt Lake Valley. The Project Area has a long history as an economic and social center to the City and surrounding community. The property encompasses approximately 729 acres of land. A map of the Project Area is attached hereto in EXHIBIT A. Page | 4 Section 3: General Overview of Project Area Budget The purpose of the Project Area Budget is to provide the financial framework necessary to implement the Project Area Plan vision and objectives. The Project Area Plan has identified that tax increment financing is essential in order to meet the objectives of the CRA Project Area. The following information will detail the sources and uses of tax increment and other necessary details needed for public officials, interested parties, and the public in general to understand the mechanics of the Project Area Budget. Base Year Value The Agency has determined that the base year property tax value for the Project Area will be the total taxable value for the 2016 tax year which is estimated to be $889,305,536. Using the tax rates established within the Project Area the property taxes levied equate to $13,102,138 annually. Accordingly, this amount will continue to flow through to each taxing entity proportional to the amount of their respective tax rates being levied. Payment Trigger This Budget will have a twenty-five year (25) duration from the date of the first tax increment received by the Agency. The collection of tax increment will be triggered at the discretion of the Agency prior to March 1 of the tax year in which they intend to begin the collection of increment. The following year in which this increment will be remitted to the Agency will be Year 1, e.g., if requested prior to March 1, 2018, Year 1 of increment will be 2019. The Agency anticipates it will trigger the tax increment by March 1, 2020 but in no case will the Agency trigger the first tax increment collection after March 1, 2022. Projected Tax Increment Revenue – Total Generation Development within the Project Area will commence upon favorable market conditions which will include both horizontal and vertical infrastructure and development. The Agency anticipates that new development will begin in the Project Area in 2018 or 2019. The contemplated development will generate significant additional property tax revenue as well as incremental sales and use tax above what is currently generated within the Project Area. Property Tax Increment will begin to be generated in the tax year (ending Dec 1st) following construction completion and Tax Increment will actually be paid to the Agency in March or April after collection. It is projected that property Tax Increment generation within the Project Area could begin as early as 2020 or as late as 2022. It is currently estimated that during the 25-year life of the Project Area Budget, property Tax Increment could be generated within the Project Area in the approximate amount of $78.64 million or at a net present value (NPV)1 of $42.32 million. This amount is over and above the $327.55 million of base taxes that the property would generate over 25 years at the $13,102,138 annual amount it currently generates as shown in Table 4.1 below. 1 Net Present Value of future cash flows assumes a 4% discount rate. The same 4% discount rate is used in all remaining NPV calculations. This total is prior to accounting for the flow-through of tax increment to the respective taxing entities. Page | 5 Section 4: Property Tax Increment Base Year Property Tax Revenue The taxing entities are currently receiving - and will continue to receive - property tax revenue from the current assessed value of the property within the Project Area (“Base Taxes”). The current assessed value is estimated to be $889,305,536. Based upon the tax rates in the area, the collective taxing entities are receiving $13,102,138 in property tax annually from this Project Area. This equates to approximately $327,553,462 over the twenty-five year life of the Project Area. Site and building demolition will need to occur in order to facilitate the envisioned development as outlined in the Plan. This demolition will initially lower the assessed value of the Project Area to a level below the base year value, however it is anticipated that the assessed value within the Project Area will be above the $889,305,536 base year value by year 1 of the Project Area life. T ABLE 4.1: T OTAL B ASE YEAR TO T AXING ENTITIES (OVER 25 Y EARS) Entity Total NPV at 4% Salt Lake County $52,713,586 $32,939,834 Salt Lake City School District 137,397,705 85,857,517 Salt Lake City 101,314,133 63,309,500 Salt Lake City Library 15,674,010 9,794,426 Salt Lake Metropolitan Water District 7,759,191 4,848,588 Salt Lake City Mosquito Abatement District 3,801,781 2,375,669 Central Utah Water Conservancy District 8,893,055 5,557,121 Total Revenue $327,553,462 $204,682,655 Property Tax Increment Shared with RDA (75% Participation Rate for 25 Years) All taxing entities that receive property tax generated within the Project Area, as detailed above, will share at least a portion of that increment generation with the Agency. All taxing entities will contribute 75% of their respective tax increment for 25 years. The County and the State will not contribute any portion of their incremental sales tax to implement the Project Area Plan. Table 4.2 shows the amount of Tax Increment shared with the Agency assuming the participation levels discussed above. T ABLE 4.2: SOURCES OF T AX INCREMENT FUNDS Entity Percentage Length Total NPV at 4% Salt Lake County 75% 25 Years $9,491,777 $5,107,450 Salt Lake City School District 75% 25 Years 24,740,271 13,312,544 Salt Lake City 75% 25 Years 18,242,948 9,816,386 Salt Lake City Library 75% 25 Years 2,822,312 1,518,664 Salt Lake Metropolitan Water District 75% 25 Years 1,397,145 751,793 Salt Lake City Mosquito Abatement District 75% 25 Years 684,561 368,357 Central Utah Water Conservancy District 75% 25 Years 1,601,312 861,653 Total Sources of Tax Increment Funds $58,980,326 $31,736,847 Page | 6 Uses of Tax Increment The State Street corridor, has suffered from a lack of reinvestment over the previous decades. New commercial and entertainment districts opening around the valley have drawn businesses and consumers away from State Street. This has led to high vacancies, blighted properties, underutilized land uses, and low rent tenants. State Street and its surrounding area suffers from a lack of character and cohesiveness. The Life on State Study identified principles that should be followed to help State Street and its surrounding communities regain character and identity. These principles include improving the walkability of the corridor, and adding state trees, thematic lighting, and signature monuments/public art. “But-for” the creation of the CRA, and use of public funds, State Street and its surrounding community will continue to remain in its underutilized state. Improving walkability, adding thematic elements, site remediation, and small lot sizes are a few of the obstacles that are currently deterring redevelopment within the Project Area. The majority of the Tax Increment collected by the Agency (80%) will be used to overcome these obstacles. Including: enhancing the walkability of the corridor, assisting current ethnically diverse and culturally-rich business owners with improving their businesses, encouraging a mix of housing types along the State Street and Main Street corridors – including appropriately scaled multifamily rental and owner- occupied housing, preservation of historic buildings and the historic urban fabric of the corridor, offsetting certain on-site public infrastructure costs, land assemblage Agency requested improvements and upgrades, desirable Project Area improvements, and other redevelopment activities as approved by the Agency. 10% will go towards affordable housing, as outlined the Act. The remaining 10% will be used to offset the administration and operating costs of the Agency. T ABLE 4.3: USES OF T AX INCREMENT Uses Total NPV at 4% Redevelopment Activities @ 80% $47,184,261 $25,389,478 CRA Housing Requirement @ 10% 5,898,033 3,173,685 Project Area Administration @ 10% 5,898,033 3,173,685 Total Uses of Tax Increment Funds $58,980,326 $31,736,847 A multi-year projection of tax increment is including in EXHIBIT B. Total Annual Property Tax Revenue for Taxing Entities at Conclusion of Project As described above, the collective taxing entities are currently receiving approximately $13,102,138 in property taxes annually from this Project Area. At the end of the life of the project area, the taxing entities will receive all of their respective tax increment thereafter. At the end of 25 years an additional $4,756,144 in property taxes annually is anticipated, totaling approximately $17,858,283 in property taxes annually for the area. “But for” the assistance provided by the RDA through tax increment revenues, this increase of approximately 36 percent in property taxes generated for the taxing entities would not be possible. Page | 7 T ABLE 4.4: T OTAL B ASE YEAR AND END OF PROJECT LIFE ANNUAL PROPERTY TAXES Entity Annual Base Year Property Taxes Annual Property Tax Increment at Conclusion of Project Total Annual Property Taxes Salt Lake County $2,108,543 $765,412 $2,873,956 Salt Lake City School District 5,495,908 1,995,043 7,490,951 Salt Lake City 4,052,565 1,471,102 5,523,668 Salt Lake City Library 626,960 227,590 854,550 Salt Lake Metropolitan Water District 310,368 112,665 423,033 Salt Lake City Mosquito Abatement District 152,071 55,203 207,274 Central Utah Water Conservancy District 355,722 129,129 484,851 Total Revenue $13,102,138 $4,756,144 $17,858,283 Page | 8 Section 5: Cost/Benefit Analysis Additional Revenues Other Tax Revenues The development within the Project Area will also generate sales taxes, energy sales and use taxes for natural gas and electric. Table 5.1 shows the total revenues generated by the Project Area. This total includes the anticipated property tax increment, sales tax, and energy sales and use tax. T ABLE 5.1: T OTAL REVENUES Entity Property Tax Sales Tax Franchise Tax Total Incremental Revenues Salt Lake County $12,655,703 $21,587,214 - $34,242,917 Salt Lake City School District 32,987,028 - - 32,987,028 Salt Lake City (including Library) 28,087,013 9,385,745 8,335,502 45,808,261 Salt Lake Metropolitan Water District 1,862,860 - - 1,862,860 Salt Lake City Mosquito Abatement District 912,748 - - 912,748 Central Utah Water Conservancy District 2,135,083 - - 2,135,083 Total Revenue $78,640,435 $30,972,959 $8,335,502 $117,948,896 Additional Costs The development anticipated within the Project Area will also likely result in additional general government, public works, and public safety costs. These costs, along with the estimated budget to implement the Project Area Plan, are identified below. T ABLE 5.2: T OTAL CITY EXPENDITURES Entity CRA Budget General Government Public Works Public Safety Total Incremental Expenditures Salt Lake County $9,491,777 $523,245 - - $10,015,022 Salt Lake City School District 24,740,271 6,277,495 - - 31,017,766 Salt Lake City (Including Library) 21,065,260 506,485 4,824,397 8,390,558 34,786,700 Salt Lake Metropolitan Water District 1,397,145 154,211 - - 1,551,356 Salt Lake City Mosquito Abatement District 684,561 17,063 - - 701,624 Central Utah Water Conservancy District 1,601,312 39,067 - - 1,640,379 Total Expenditures $58,980,326 $7,517,565 $4,824,397 $8,390,558 $79,712,847 The total net benefit to the taxing entities of participating in the Project Area is $38,236,049, with the City’s net benefit being $11,021,561. Page | 9 T ABLE 5.3: T OTAL CITY REVENUES (INCLUDING LIBRARY) Total NPV at 4% Property Tax Increment $28,087,013 $15,113,400 Sales Tax 9,385,745 5,092,482 Telecom Tax 1,377,127 737,507 Energy Sales & Use Tax (Natural Gas) 1,231,228 646,986 Energy Sales & Use Tax (Electricity) 5,727,147 3,009,503 Total City Revenue $45,808,261 $24,599,878 T ABLE 5.4: T OTAL CITY EXPENDITURES (INCLUDING LIBRARY) Total NPV at 4% CRA Budget $21,065,260 $11,335,050 General Government 506,485 266,221 Public Works 4,824,397 2,535,827 Public Safety 8,390,558 4,408,307 Total City Expenditures $34,786,700 $18,545,405 Total City Benefit $11,021,561 $6,054,473 Page | 10 Exhibit A: Project Area M Page | 11 Exhibit B: Multi-Year Budget Redevelopment Agency of Salt Lake City ASSUMPTIONS: State Street Project Area Discount Rate 4.0% Increment and Budget Analysis Growth Rate 1.0% Payment Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Tax Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 TOTALS NPV Cumulative Taxable Value Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Tax District 13 Commercial $1,765,985 $4,073,821 $6,954,715 $10,997,330 $15,008,737 $19,608,806 $24,193,271 $28,777,737 $33,362,202 $37,946,668 $43,708,457 $50,616,362 $57,493,060 $58,067,991 $58,648,671 $59,235,157 $59,827,509 $60,425,784 $61,030,042 $61,640,342 $62,256,746 $62,879,313 $63,508,106 $64,143,187 $64,784,619 Office $3,021,895 $6,957,326 $11,868,802 $18,763,621 $25,595,932 $33,435,542 $41,243,897 $49,052,253 $56,860,609 $64,668,965 $74,491,917 $86,266,958 $97,979,492 $98,959,286 $99,948,879 $100,948,368 $101,957,852 $102,977,430 $104,007,205 $105,047,277 $106,097,749 $107,158,727 $108,230,314 $109,312,617 $110,405,743 Industiral $405,716 $922,642 $1,566,797 $2,473,419 $3,364,022 $4,389,864 $5,407,696 $6,425,528 $7,443,359 $8,461,191 $9,749,501 $11,276,249 $12,802,997 $12,931,026 $13,060,337 $13,190,940 $13,322,850 $13,456,078 $13,590,639 $13,726,545 $13,863,811 $14,002,449 $14,142,473 $14,283,898 $14,426,737 Residential $3,671,726 $8,428,100 $14,361,963 $22,697,222 $30,939,641 $40,405,969 $49,825,876 $59,245,784 $68,665,691 $78,085,599 $89,953,324 $104,083,185 $118,213,046 $119,395,177 $120,589,128 $121,795,020 $123,012,970 $124,243,100 $125,485,531 $126,740,386 $128,007,790 $129,287,868 $130,580,746 $131,886,554 $133,205,419 Total Assessed Value:$8,865,322 $20,381,889 $34,752,277 $54,931,592 $74,908,333 $97,840,180 $120,670,741 $143,501,302 $166,331,862 $189,162,423 $217,903,198 $252,242,754 $286,488,594 $289,353,480 $292,247,015 $295,169,485 $298,121,180 $301,102,392 $304,113,416 $307,154,550 $310,226,096 $313,328,357 $316,461,640 $319,626,257 $322,822,519 Value of Current Property $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 $889,305,536 Less Base Year Value (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ (889,305,536)$ $8,865,322 $20,381,889 $34,752,277 $54,931,592 $74,908,333 $97,840,180 $120,670,741 $143,501,302 $166,331,862 $189,162,423 $217,903,198 $252,242,754 $286,488,594 $289,353,480 $292,247,015 $295,169,485 $298,121,180 $301,102,392 $304,113,416 $307,154,550 $310,226,096 $313,328,357 $316,461,640 $319,626,257 $322,822,519 TAX RATE & INCREMENT ANALYSIS:2016 Rates Salt Lake County 0.002371 21,020 48,325 82,398 130,243 177,608 231,979 286,110 340,242 394,373 448,504 516,648 598,068 679,264 686,057 692,918 699,847 706,845 713,914 721,053 728,263 735,546 742,902 750,331 757,834 765,412 12,655,703 6,809,934 Salt Lake City School District 0.006180 54,788 125,960 214,769 339,477 462,933 604,652 745,745 886,838 1,027,931 1,169,024 1,346,642 1,558,860 1,770,500 1,788,205 1,806,087 1,824,147 1,842,389 1,860,813 1,879,421 1,898,215 1,917,197 1,936,369 1,955,733 1,975,290 1,995,043 32,987,028 17,750,059 Salt Lake City 0.004557 40,399 92,880 158,366 250,323 341,357 445,858 549,897 653,935 757,974 862,013 992,985 1,149,470 1,305,529 1,318,584 1,331,770 1,345,087 1,358,538 1,372,124 1,385,845 1,399,703 1,413,700 1,427,837 1,442,116 1,456,537 1,471,102 24,323,930 13,088,515 Salt Lake City Library 0.000705 6,250 14,369 24,500 38,727 52,810 68,977 85,073 101,168 117,264 133,360 153,622 177,831 201,974 203,994 206,034 208,094 210,175 212,277 214,400 216,544 218,709 220,896 223,105 225,337 227,590 3,763,083 2,024,885 Salt Lake Metropolitan Water District 0.000349 3,094 7,113 12,129 19,171 26,143 34,146 42,114 50,082 58,050 66,018 76,048 88,033 99,985 100,984 101,994 103,014 104,044 105,085 106,136 107,197 108,269 109,352 110,445 111,550 112,665 1,862,860 1,002,390 Salt Lake City Mosquito Abatement District 0.000171 1,516 3,485 5,943 9,393 12,809 16,731 20,635 24,539 28,443 32,347 37,261 43,134 48,990 49,479 49,974 50,474 50,979 51,489 52,003 52,523 53,049 53,579 54,115 54,656 55,203 912,748 491,142 Central Utah Water Conservancy District 0.000400 3,546 8,153 13,901 21,973 29,963 39,136 48,268 57,401 66,533 75,665 87,161 100,897 114,595 115,741 116,899 118,068 119,248 120,441 121,645 122,862 124,090 125,331 126,585 127,851 129,129 2,135,083 1,148,871 Totals:0.014733 130,613 300,286 512,005 809,307 1,103,624 1,441,479 1,777,842 2,114,205 2,450,567 2,786,930 3,210,368 3,716,292 4,220,836 4,263,045 4,305,675 4,348,732 4,392,219 4,436,142 4,480,503 4,525,308 4,570,561 4,616,267 4,662,429 4,709,054 4,756,144 78,640,435 42,315,797 TOTAL INCREMENTAL REVENUE IN PROJECT AREA:$130,613 $300,286 $512,005 $809,307 $1,103,624 $1,441,479 $1,777,842 $2,114,205 $2,450,567 $2,786,930 $3,210,368 $3,716,292 $4,220,836 $4,263,045 $4,305,675 $4,348,732 $4,392,219 $4,436,142 $4,480,503 $4,525,308 $4,570,561 $4,616,267 $4,662,429 $4,709,054 $4,756,144 $78,640,435 $42,315,797 PROJECT AREA BUDGET 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Sources of Funds:2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 TOTALS NPV Property Tax Participation Rate for Budget Salt Lake County 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City School District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City Library 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake Metropolitan Water District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Salt Lake City Mosquito Abatement District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Central Utah Water Conservancy District 75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75%75% Property Tax Increment for Budget Salt Lake County $15,765 $36,244 $61,798 $97,682 $133,206 $173,984 $214,583 $255,181 $295,780 $336,378 $387,486 $448,551 $509,448 $514,543 $519,688 $524,885 $530,134 $535,435 $540,790 $546,198 $551,660 $557,176 $562,748 $568,375 $574,059 $9,491,777 $5,107,450 Salt Lake City School District $41,091 $94,470 $161,077 $254,608 $347,200 $453,489 $559,309 $665,129 $770,948 $876,768 $1,009,981 $1,169,145 $1,327,875 $1,341,153 $1,354,565 $1,368,111 $1,381,792 $1,395,610 $1,409,566 $1,423,661 $1,437,898 $1,452,277 $1,466,800 $1,481,468 $1,496,282 $24,740,271 $13,312,544 Salt Lake City $30,299 $69,660 $118,775 $187,742 $256,018 $334,393 $412,422 $490,452 $568,481 $646,510 $744,739 $862,103 $979,146 $988,938 $998,827 $1,008,816 $1,018,904 $1,029,093 $1,039,384 $1,049,777 $1,060,275 $1,070,878 $1,081,587 $1,092,403 $1,103,327 $18,242,948 $9,816,386 Salt Lake City Library $4,688 $10,777 $18,375 $29,045 $39,608 $51,733 $63,805 $75,876 $87,948 $100,020 $115,216 $133,373 $151,481 $152,996 $154,526 $156,071 $157,632 $159,208 $160,800 $162,408 $164,032 $165,672 $167,329 $169,002 $170,692 $2,822,312 $1,518,664 Salt Lake Metropolitan Water District $2,320 $5,335 $9,096 $14,378 $19,607 $25,610 $31,586 $37,561 $43,537 $49,513 $57,036 $66,025 $74,988 $75,738 $76,496 $77,261 $78,033 $78,814 $79,602 $80,398 $81,202 $82,014 $82,834 $83,662 $84,499 $1,397,145 $751,793 Salt Lake City Mosquito Abatement District $1,137 $2,614 $4,457 $7,045 $9,607 $12,548 $15,476 $18,404 $21,332 $24,260 $27,946 $32,350 $36,742 $37,110 $37,481 $37,855 $38,234 $38,616 $39,003 $39,393 $39,786 $40,184 $40,586 $40,992 $41,402 $684,561 $368,357 Central Utah Water Conservancy District $2,660 $6,115 $10,426 $16,479 $22,472 $29,352 $36,201 $43,050 $49,900 $56,749 $65,371 $75,673 $85,947 $86,806 $87,674 $88,551 $89,436 $90,331 $91,234 $92,146 $93,068 $93,999 $94,938 $95,888 $96,847 $1,601,312 $861,653 Total Property Tax Increment for Budget:$97,960 $225,215 $384,004 $606,980 $827,718 $1,081,110 $1,333,382 $1,585,654 $1,837,925 $2,090,197 $2,407,776 $2,787,219 $3,165,627 $3,197,284 $3,229,256 $3,261,549 $3,294,165 $3,327,106 $3,360,377 $3,393,981 $3,427,921 $3,462,200 $3,496,822 $3,531,790 $3,567,108 $58,980,326 $31,736,847 Uses of Tax Increment Funds:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 TOTALS NPV Redevelopment Activities (Infrastructure, Relocation, Incentives, etc.)80.0%$78,368 $180,172 $307,203 $485,584 $662,175 $864,888 $1,066,705 $1,268,523 $1,470,340 $1,672,158 $1,926,221 $2,229,775 $2,532,502 $2,557,827 $2,583,405 $2,609,239 $2,635,332 $2,661,685 $2,688,302 $2,715,185 $2,742,337 $2,769,760 $2,797,458 $2,825,432 $2,853,687 $47,184,261 $25,389,478 CRA Housing 10.0%$9,796 $22,521 $38,400 $60,698 $82,772 $108,111 $133,338 $158,565 $183,793 $209,020 $240,778 $278,722 $316,563 $319,728 $322,926 $326,155 $329,416 $332,711 $336,038 $339,398 $342,792 $346,220 $349,682 $353,179 $356,711 $5,898,033 $3,173,685 RDA Administration 10.0%$9,796 $22,521 $38,400 $60,698 $82,772 $108,111 $133,338 $158,565 $183,793 $209,020 $240,778 $278,722 $316,563 $319,728 $322,926 $326,155 $329,416 $332,711 $336,038 $339,398 $342,792 $346,220 $349,682 $353,179 $356,711 $5,898,033 $3,173,685 Total Uses $97,960 $225,215 $384,004 $606,980 $827,718 $1,081,110 $1,333,382 $1,585,654 $1,837,925 $2,090,197 $2,407,776 $2,787,219 $3,165,627 $3,197,284 $3,229,256 $3,261,549 $3,294,165 $3,327,106 $3,360,377 $3,393,981 $3,427,921 $3,462,200 $3,496,822 $3,531,790 $3,567,108 $58,980,326 $31,736,847 REMAINING TAX INCREMENT FOR TAXING ENTITIES 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 TOTALS NPV Salt Lake County $5,255 $12,081 $20,599 $32,561 $44,402 $57,995 $71,528 $85,060 $98,593 $112,126 $129,162 $149,517 $169,816 $171,514 $173,229 $174,962 $176,711 $178,478 $180,263 $182,066 $183,887 $185,725 $187,583 $189,458 $191,353 $3,163,926 $1,702,483 Salt Lake City School District $13,697 $31,490 $53,692 $84,869 $115,733 $151,163 $186,436 $221,710 $256,983 $292,256 $336,660 $389,715 $442,625 $447,051 $451,522 $456,037 $460,597 $465,203 $469,855 $474,554 $479,299 $484,092 $488,933 $493,823 $498,761 $8,246,757 $4,437,515 Salt Lake City $10,100 $23,220 $39,592 $62,581 $85,339 $111,464 $137,474 $163,484 $189,494 $215,503 $248,246 $287,368 $326,382 $329,646 $332,942 $336,272 $339,635 $343,031 $346,461 $349,926 $353,425 $356,959 $360,529 $364,134 $367,776 $6,080,983 $3,272,129 Salt Lake City Library $1,563 $3,592 $6,125 $9,682 $13,203 $17,244 $21,268 $25,292 $29,316 $33,340 $38,405 $44,458 $50,494 $50,999 $51,509 $52,024 $52,544 $53,069 $53,600 $54,136 $54,677 $55,224 $55,776 $56,334 $56,897 $940,771 $506,221 Salt Lake Metropolitan Water District $773 $1,778 $3,032 $4,793 $6,536 $8,537 $10,529 $12,520 $14,512 $16,504 $19,012 $22,008 $24,996 $25,246 $25,499 $25,754 $26,011 $26,271 $26,534 $26,799 $27,067 $27,338 $27,611 $27,887 $28,166 $465,715 $250,598 Salt Lake City Mosquito Abatement District $379 $871 $1,486 $2,348 $3,202 $4,183 $5,159 $6,135 $7,111 $8,087 $9,315 $10,783 $12,247 $12,370 $12,494 $12,618 $12,745 $12,872 $13,001 $13,131 $13,262 $13,395 $13,529 $13,664 $13,801 $228,187 $122,786 Central Utah Water Conservancy District $887 $2,038 $3,475 $5,493 $7,491 $9,784 $12,067 $14,350 $16,633 $18,916 $21,790 $25,224 $28,649 $28,935 $29,225 $29,517 $29,812 $30,110 $30,411 $30,715 $31,023 $31,333 $31,646 $31,963 $32,282 $533,771 $287,218 Total $32,653 $75,072 $128,001 $202,327 $275,906 $360,370 $444,461 $528,551 $612,642 $696,732 $802,592 $929,073 $1,055,209 $1,065,761 $1,076,419 $1,087,183 $1,098,055 $1,109,035 $1,120,126 $1,131,327 $1,142,640 $1,154,067 $1,165,607 $1,177,263 $1,189,036 $19,660,109 $10,578,949 TOTAL INCREMENTAL VALUE: INCREMENTAL TAX ANALYSIS: TaxInc Budget State Street CRA Analysis (4.16.18).xlsx