HomeMy WebLinkAboutTransmittal - 11/22/2023
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: November 22, 2023
PREPARED BY: Ashley Ogden, Senior Project Manager
Marcus Lee, Project Coordinator
Cara Lindsley, Deputy Director
RE: Station Center Funding Strategy
REQUESTED ACTION: Written Briefing – Information on proposed funding approach
POLICY ITEM: Budget
BUDGET IMPACTS: Involves potential future budget actions to support the Station Center
Vision & Implementation Plan
EXECUTIVE SUMMARY:
In February 2023, the RDA engaged a consultant team consisting of Perkins+Will, HR&A Advisors,
Kimley-Horn, and Phil Myrick, placemaking expert, to create a design and redevelopment strategy for
approximately 15 acres of RDA-owned property in the Depot District (“Station Center Vision &
Implementation Plan” or “Plan”). The subject properties include 11 acres within the bounds of 500-600
West and 200-400 South, and an additional 4 acres near 600 West and 100 South.
At the September RDA Board meeting, the consultant team presented the in-progress urban design
framework and recommendations regarding a Station Center governance structure to ensure the long-term
vibrancy of the district. The Plan will be completed by the end of the year and will inform subsequent
RDA property disposition activities, as well as an application to the State of Utah to create a Housing and
Transit Reinvestment Zone (HTRZ) centered on the UTA Intermodal Hub.
The Plan, as currently envisioned, will require investment in upgraded utilities, new and reconstructed
streets, and a shared parking structure on the south block. The purpose of this written briefing is to present
a proposed funding strategy to implement these public improvements for Board discussion and feedback.
ANALYSIS & ISSUES:
For many years the RDA has planned for significant public improvements as part of the redevelopment of
Station Center. This includes:
• Upgrading utilities to accommodate increased density;
• Narrowing and reconstructing 300 South into a pedestrian-first street that is designed to be closed
and utilized for public events;
• Constructing new mid-block streets to break up the typical Salt Lake City block for a more
walkable environment;
• Supporting the vision of Station Center as the state’s premier model of transit-oriented
development by constructing a shared parking structure that can be used by multiple
tenants/visitors during their respective peak hours.
Previous Station Center funding strategies relied on the RDA’s ability to write down fee simple land costs
for developers in exchange for the construction of adjacent utility and street improvements or utilizing
land sales proceeds to pay for the infrastructure. In recent years, both the Mayor and Board members have
indicated a preference for the RDA to retain ownership of Station Center properties and execute ground
lease agreements with developers. Under a ground lease scenario, the land will be retained as an RDA
asset, but the option to use fee simple land value as an upfront financing tool will be eliminated and other
funding avenues will need to be explored. The table below identifies planned Station Center public
improvements, corresponding cost estimates, and potential funding sources.
FINANCIAL USES COST
ESTIMATE
FINANCIAL SOURCES
Design of utility upgrades, streets, and plazas $2,500,000 Depot District Infrastructure
Fund
Construction of utility upgrades, streets, and plazas $25,000,000 • Intermodal Hub
HTRZ Tax Increment
• State Infrastructure
Bank (SIB) Loan
• Bond
• Others?
Design/construction of south block shared parking
structure
$33,150,000 • Intermodal Hub
HTRZ Tax Increment
• State Infrastructure
Bank (SIB) Loan
• Bond
• Others?
TOTAL $60,650,000
NEXT STEPS:
Based on feedback received, Staff will continue to explore and pursue various funding sources for Station
Center public improvements. Upon approval from the Board, staff will also re-engage the consultant
team to finalize the utility/streets design as well as engage a consultant to design the south block parking
garage. The goal would be to start phased construction as soon as designs are complete and funding is
secured.
PREVIOUS BOARD ACTION:
On November 10, 2022, the RDA Board adopted a resolution for RDA Budget Amendment No. 2 for FY
2022-23. The budget amendment provided funds for the RDA to contract with the consultant team to
develop a planning and implementation strategy for approximately 15 acres of RDA-owned property in
the Depot District Project Area.
ATTACHMENTS:
A. Station Center site plan
ATTACHMENT A
STATION CENTER SITE PLAN
N
S T A T I O N C E N T E R
R D A B O A R D O F D I R E C T O R S
D E C E M B E R 1 2 , 2 0 2 3
P U B L I C I M P R O V E M E N T S
F U N D I N G S T R A T E G Y
STATION CENTER vision
The neon glow of the Rio Grande sign shining
atop the historic depot is a beacon, welcoming
all Utahns to be a part of a robust new
Downtown neighborhood located at Utah’s
most transit-rich gateway.
P O S I T I O N I N GDEVELOPMENTPROGRAMMING
Create a new urban scale
development that leverages local
organizations to create a
programmed and activated district
for art, community health and
wellness, and organic economic
growth for Salt Lake City
Foster a walkable community
that takes advantage of density
to create a mixed-use, mixed
income, and inclusive district
Establish Station Center as the
standard for transit-oriented
development in Salt Lake City and
the State of Utah
KEY GOALS
PRIMARY
LANDOWNER
our charge
As master developer, the RDA will play a pivotal role in
the development, operations, and long-term success of
Station Center.
INFRASTRUCTURE
DEVELOPER
PROGRAMMING
MANAGER DISTRICT CURATOR
Facilitate development
of RDA-owned
properties
Design, construct,
manage, and maintain
public improvements, in
partnership with the
City
Lead activation of
Station Center, in
collaboration with
adjacent property
owners, tenants, and
local organizations
RDA tools may be used
to incentivize other
parties, including
developers and space
users, to advance
vision and policy goals
PRIMARY
LANDOWNER
INFRASTRUCTURE
DEVELOPER
PROGRAMMING
MANAGER DISTRICT CURATOR
our charge
As master developer, the RDA will play a pivotal role in
the development, operations, and long-term success of
Station Center.
Facilitate development
of RDA-owned
properties
Design, construct,
manage, and maintain
public improvements, in
partnership with the
City
Lead activation of
Station Center, in
collaboration with
adjacent property
owners, tenants, and
local organizations
RDA tools may be used
to incentivize other
parties, including
developers and space
users, to advance
vision and policy goals
EXISTING CONDITIONS
public improvements
Utility upgrades to provide for
increased density
Narrowing/reconstruction of 300
South into pedestrian-first street that
can be closed and utilized for public
events
Construction of new mid-block streets
to break up the large blocks for a more
walkable environment
Construction of public spaces that can
accommodate events
Supporting the TOD vision with a
shared parking structure that can be
used by multiple tenants/visitors
during their respective peak hours
Sustainable Utility Upgrades
Water
Sewer
Stormwater
Electric
Map of existing utility infrastructure
Functional, Safe Streets
Narrowing and reconstruction of
300 South
Construction of Woodbine
Court, Pierpont Avenue, and
Market Street
Streetscaping with lighting,
landscaping, and furnishings
Curating Public Places of Culture, Arts, and Performance
Art Campus Alleyway
Plaza at southwest corner of
500 West/300 South
View of Art Campus alleyway, looking south
Green Loop along 500 West (not included in this funding strategy)
Leading with Shared Parking
6-story structure with ~510 stalls
Station Center Plan calls for:
Progressive TOD parking ratios
0.5 spaces/residential unit
0.6 spaces/1,000 sf of office
50% reduction in conventional parking
supply through Parking & Transportation
Demand Management (TDM) strategies
Unbundled shared parking for entire
district
BUDGET - PUBLIC IMPROVEMENTS
FINANCIAL USES RDA CONTRIBUTION POTENTIAL FUNDING SOURCES
Design/permitting of utilities and
streets $2.5 million*Depot District Infrastructure Fund
Construction of utilities and
streets $25 million*
Intermodal Hub HTRZ Tax Increment
State Infrastructure Bank
Bond
Others?
Design/permitting/construction of
shared parking structure $33 million*
Intermodal Hub HTRZ Tax Increment
State Infrastructure Bank
Bond
Others?
*Values are cost estimates.Note: Assumes all development sites will be ground
leased, i.e., no upfront land sale proceeds to fund
improvements.
Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2025 - FORWARD
proposed DEVELOPMENT TIMELINE
Station Center
Vision &
Implementation
Plan completed
Finalize construction drawings
for streets and utilities
Intermodal Hub HTRZ
application presented to State
committee
Secure financing for public
improvements
Release RFP for first phase of
development (likely south block)
Release utility and street work
for construction bids
Begin design work for parking
structure
Groundbreaking for first
development site
Groundbreaking for utilities
and streets
Release RFP for second
phase of development
(likely north block)
Groundbreaking for parking
structure
Complete construction of utilities
and streets
Complete construction of
parking structure
Phase I development underway
Phase II developer selected
Station Center Vision and Implementation Plan 18September 2023
Catalyzing
Downtown
Street Life
Vibrant Downtown
Station Center Vision and Implementation Plan 19September 2023
Maximizing
the TOD
Potential
Vertical Mixed-Use
Station Center Vision and Implementation Plan 20September 2023
Inviting People to
Live, Work, Play, and
Learn Downtown
Vertical Mixed-Use
Residential
Active Use
Commercial
Community
Life Science
Hospitality
Civic/Cultural
Parking