Transmittal - 10/27/2023
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: October 27, 2023
PREPARED BY: Kate Werrett, RDA Project Manager
Marcus Lee, RDA Project Coordinator
RE: 900 South/200 West Housing and Transit Reinvestment Zone (HTRZ) Update
and Intermodal Hub HTRZ Creation
REQUESTED ACTION: Information Only – Review and discussion regarding HTRZ process
POLICY ITEM: Project Area Creation
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: In 2021, the State of Utah adopted Senate Bill 217 establishing the Housing
and Transit Reinvestment Zone (“HTRZ”) Act (“Act”). In 2022, the State amended the bill to include the
revisions set forth in Senate Bill 140. During the 2023 Legislative Session additional amendments to the
Act were adopted in Senate Bill 84. Intended to help address Utah’s severe housing crisis, this legislation
allows for municipalities to capture tax increment revenue around certain public transit facilities to facilitate
mixed-use, multifamily, and affordable housing development and, ultimately, a higher utilization of public
transit. This memo reviews HTRZ regulations, provides an update of existing and upcoming applications,
and details the RDA HTRZ next steps.
ANALYSIS:
HTRZ Regulations
In 2021, Senate Bill 217 adopted the Housing and Transit Reinvestment Zone Act (“Act”), establishing the
objectives and requirements to create HTRZs. The Act was updated in 2022 with the passing of Senate Bill
140 to clarify the process, requirements, and objectives of the HTRZs.
An HTRZ is a specific type of project area located adjacent to public transit intended to promote sustainable
mixed-use development, affordable housing, and public transportation. Up to 80% of incremental property
tax generated within the project area can be collected to promote these objectives.
1. General HTRZ Requirements. Project area requirements that apply to every HTRZ project area
include:
• Property Tax Maximum Increment Participation: 80%
• Housing
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o Affordable Housing: At least 10% of housing units must be affordable to 80% AMI
households
o Must include a mixture of housing units to ensure a reasonable percentage of dwellings
with more than one bedroom
• Land Use: 51% of developable area must be residential
• Density: an average of 50 dwelling units per acre is required.
o There is a caveat that if a Bus Rapid Transit’s (“BRT’s”) tax increment collection is
reduced to 60%, its project area may have a reduced density of 39-49 dwelling units
per acre.
• Tax Increment Collection Cap: Determined by the proposal
• HTRZ Administration Fees: 1% of the HTRZ funds
2. Transit Stop Requirements. A unique difference between HTRZs and other types of project areas
(such as Community Reinvestment Areas (“CRAs”)) is that HTRZs must be established within a
specified distance of a transit stop. The Act provides requirements and limitations dependent on
the type of transit stop an HTRZ encompasses. Certain limiting factors are defined by the project
area transit stops for commuter rail, light rail, BRT, or those located within an Opportunity Zone.
Examples of varying allowances dependent on the type of transit stop include:
• Size of Project Area
• Maximum Acreage
• Term and Phase Length
• Number of HTRZ project areas per transit stop type allowed per county
The table below shows the differences between possible project areas within Salt Lake City.
FRONTRUNNER TRAX/S-LINE BRT OPPORTUNITY
ZONE
BOUNDARY DISTANCE FROM STATION
1/4 MILE X X
1/3 MILE X
1/2 MILE X (regardless of
transit type)
Note: Any parcels bisected by the radius boundary can be included in their entirety
MAXIMUM ACREAGE
NONCONTIGUOUS
ACRES 125 100 100 Dependent on
station type
TAX INCREMENT
TERM & PHASE
LENGTH
25 year phases
within a 45-year
period
15 year phases within a 30-year
period
Dependent on
station type
NUMBER OF HTRZ PROJECT AREAS ALLOWED PER COUNTY
HTRZs per County
(#) Not defined 8 3 1
3. HTRZs Comparison with Community Reinvestment Areas (“CRAs’) – While similar to
existing tax increment project areas such as CRAs, HTRZs vary in some significant ways as
summarized in the table below. CRAs are subject to Title 17C of the Utah State Code.
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HTRZ CRA
Creation
• HTRZ proposal is submitted to the
Governor’s Office of Economic
Opportunity
• State appointed HTRZ Committee
commissions a gap analysis and
reviews/approves proposal
• Survey Resolution adopted by the
Redevelopment Agency of Salt Lake
City’s (“RDA’s") Board of Directors
(“Board”)
• Project Area Plan & Budget Public
Hearing
• RDA Board adopts Plan & Budget
• City adopts ordinance approving the
Plan & Budget
Taxing
Entities
• Required taxing entity participation as
agreed to by the HTRZ Committee
• Taxing entities may opt out of
participation
• Participation is negotiated and
established with interlocal agreements
Tax
Increment
• Participation Rate: up to 80% of property
tax increment
• Participation Rate: Property tax
increment as negotiated
RDA Board
Controls
• HTRZ goals/policy decisions
• Budgeting of funds
• Tax Increment Reimbursement
Agreements (TIRAs) & other
development assistance programs
• RDA Board reviews and approves
CRA creation and implementation
throughout the process
• Budgeting of funds
• Tax Increment Reimbursement
Agreements (TIRAs) & other
development assistance programs
NOTE: Other tax increment funding sources are available, and applicability varies depending upon the type of project. Two possible
options are PIDs and TRZs.
4. Use of HTRZ Funds – Per 63N-3-607, HTRZ funds may be used to pay for a portion of the costs
associated with the following:
a. Income targeted housing costs
b. Structured parking within the HTRZ
c. Enhanced development costs
d. Horizontal construction costs
e. Vertical construction costs
f. Property acquisition costs
g. HTRZ Administration, including the State’s gap analysis
h. Public infrastructure
HTRZ Objectives
1. State Objectives – As summarized by Zions Public Finance in a 2021 HTRZ White Paper, the Act
represents an “all-hands-on-deck” approach to helping mitigate the housing affordability crisis
along the Wasatch Front, and to better utilize transit infrastructure and investment. It intends to
encourage transit-oriented development (TOD) near UTA FrontRunner stations, and other transit
stops, through tax increment financing and integral city and agency planning efforts. The Act
includes seven main objectives as follows:
a. Higher utilization of public transit
b. Increasing availability of housing, including affordable housing
c. Conservation of water resources through efficient land use
d. Improving air quality by reducing fuel consumption and motor vehicle trips
e. Encouraging transformative mixed-use development and investment in transportation and
public transit infrastructure in strategic areas
f. Strategic land use and municipal planning in major transit investment corridors
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g. Increasing access to employment and educational opportunities
2. Alignment with City Objectives – While various city plans provide guidance regarding the State’s
overarching HTRZ objectives, encouraging transit-oriented and affordable housing development
in strategic areas of the city – especially as a means to conserve water, improve air quality, and
increase access to employment and education – are objectives that city plans and the RDA’s
Guiding Framework (see attached) generally support. Multiple guiding principles within the
citywide vision plan, Plan Salt Lake (2015), directly align with the objectives of HTRZ creation,
particularly the promotion of:
a. Growing responsibly while providing people with choices about where they live, how they
live, and how they get around.
b. Access to a wide variety of housing types for all income levels throughout the City,
providing the basic human need for safety and responding to changing demographics.
c. A transportation and mobility network that is safe, accessible, reliable, affordable, and
sustainable, providing real choices and connecting people with places.
d. Air that is healthy and clean.
e. Protecting the natural environment while providing access and opportunities to recreate
and enjoy nature.
f. A balanced economy that produces quality jobs and fosters an environment for commerce,
local business, and industry to thrive.
Current HTRZ Application: 900 South/200 West TRAX Stop
The area primarily covers the Salt Lake City’s Granary District, Central Ninth neighborhood, and a portion
of downtown. The area is comprised of a mix of land uses including office, commercial, single-family and
multi-family residential. While the area is experiencing growth, public support is needed to facilitate
sustainable affordable housing opportunities that are needed throughout the City and especially adjacent to
the Central Business District’s employment center. Much denser, transit-oriented development is also
needed to take full advantage of existing light rail that runs through the proposed HTRZ and the associated
public transit community benefits.
The Granary District is transitioning from primarily industrial uses and warehouse buildings to the City’s
center of creativity – with makerspaces for artists and tradespeople, culinary and recreational experiences,
life sciences, and local businesses of all types and sizes. Due to the industrial history of this area, the
neighborhood has developed without the infrastructure commonly found in the rest of the city. Many streets
do not have the basic pedestrian enhancements such as sidewalks, street trees, park strips, curb and gutter.
Public infrastructure investment is greatly needed to support this neighborhood’s growth and the innovation
happening within it. Transformative public projects that are anticipated to be supported through the creation
of this HTRZ include affordable housing, the Green Loop, the Grand Boulevards, infrastructure
improvements, and a public transit extension.
If not for funding provided by the proposed HTRZ, growth may happen sporadically, and not contain the
affordability, nor the density to support the revitalization of the area in alignment with city plans. It’s
anticipated that tax increment will be used for the following categories:
• Private Development Support (must incorporate public benefits)
• Public Project Support
• HTRZ Administration
The 900 S/200 W HTRZ application was submitted earlier this year. In November 2023, the State-appointed
HTRZ Committee will meet to consider the 900 South/200 West HTRZ application. Due to the high
concentration of recent construction and proposed development projects in the area, this project area was
proposed first to support and ensure the inclusion public benefits.
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Upcoming HTRZ Application: Intermodal Hub
Salt Lake City’s intermodal transit hub, located at approximately 600 West and 300 South, encompasses
the Station Center development making this a top priority location for tax increment opportunities.
Located a block west of the Rio Grande Depot, this hub includes multiple public transportation connections,
including UTA’s FrontRunner, TRAX blue line, Amtrak, and the Greyhound bus. With these lines all
convening at this point, “first and last-mile” improvements are critical. As this area is adjacent to a
FrontRunner station, the potential project area is excluded from the State’s quota of eight light rail HTRZs
per County; therefore, it was not submitted as the Agency’s first HTRZ request to the State. RDA Staff is
preparing this application for submission in the near future as a means to support the Agency’s Station
Center development efforts, implementation of the Downtown Plan’s Green Loop along 500 West, and the
potential light rail extension project. More generally, there is significant potential here to facilitate improved
east-west connectivity.
The application will include details on public and private development plans for the area, including
elements of the RDA’s Station Center Vision & Implementation Plan. Significant quantities of land are
owned by the City and other public entities. It is anticipated that a significant portion of tax increment
generated by the project area will support the development of new infrastructure, a shared parking garage,
upgraded transit facilities, and the historic preservation of buildings.
RDA staff is finalizing an HTRZ application centered around the Frontrunner station located at the
Intermodal Hub to submit to GOEO for consideration.
HTRZ STATION
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Next Steps
900 South/200 West HTRZ
• Interlocal Agreement Adoption – If the HTRZ Committee approves the 200 West/900 South
HTRZ proposal, an interlocal agreement between the City and the RDA will be provided for
discussion at the December RDA Board Meeting, with action to take place at the January City
Council and RDA Board Meetings.
• HTRZ Implementation – If the HTRZ Committee approves the 200 West/900 South HTRZ
proposal, taxing entity participation as established by the HTRZ Committee will be formalized and
potential developer incentives will be considered.
Intermodal Hub HTRZ
• Submission of Intermodal Hub HTRZ Application – Section 63N-3-604 of the Act provides
requirements for the application submission to GOEO. These requirements include defining the
project boundary, identifying included parcels, establishing a base year and collection years,
explaining how the State Objectives will be met, the tax increment projections, and other several
other requested items. The HTRZ Committee uses the tax increment projection included in the
proposal to set the HTRZ cap.
RDA staff is finalizing an HTRZ application for development surrounding UTA’s Salt Lake Central
Station. Infrastructure, revitalization, and catalytic development are the focus of the proposal
submission.
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For all HTRZs
• HTRZ Tax Increment Reimbursement Policy – The RDA Board has provided feedback on the
HTRZ Tax Increment Reimbursement Policy and RDA staff will present it for adoption at the
December Board Meeting. The existing tax increment reimbursement policy is subject to the
requirements of the Utah Community Reinvestment Agency Act (17(c)), rather than the Housing
Transit Reinvestment Zone Act. The policy will outline threshold requirements for participation in
reimbursement agreements associated with HTRZ project areas.
ATTACHMENTS:
A. Eligible HTRZ Locations Map
B. Transit Station Map
C. Guiding Framework
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ATTACHMENT A: ELIGIBLE HTRZ LOCATIONS MAP
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ATTACHMENT B: TRANSIT STATION MAP
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ATTACHMENT C: GUIDING FRAMEWORK
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