Transmittal - 8/9/2024SALT LAKE CITY TRANSMITTAL - RDA
To:
Salt Lake City Redevelopment Agency Chair
Start Date:
07/26/2024
Date Sent to RDA Board:
07/29/2024
From:
Employee Name:
Stine, Robyn
E-mail
robyn.stine@slc.gov
Department
Redevelopment Agency
Mayor's Office Leadership *
Mayor's Signed Date
07/29/2024
Subject:
RDA Commercial Assistance Opportunities
Additional Staff Contact:
Ashley Ogden, Senior Project Manager - ashley.ogden@slc.gov
Presenters/Staff Table
Document Type *
Information Item
Budget Impact *
Yes
No
Budget Impact:
Recommendation:*
None
Background/Discussion
The RDA is proposing to amend two (2) existing programs and create two (2) new programs to better support the real estate and financial needs of the local business and non-profit sectors. The following memo outlines staff ’s proposal for a set of Commercial Assistance Programs, which has been informed by research and community engagement, and will be further refined through Board discussion.
Will the RDA Board need to hold a public hearing for this item?*
Yes
No
Public Process
Mayor's Comments
Attachment(s)
20240312 Commercial Assistance Programs_BOD_FINAL.pdf 8.77MB
08/09/2024
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
DATE: July 26, 2024
PREPARED BY: Ashley Ogden, Senior Project Manager
RE: RDA Commercial Assistance Opportunities
REQUESTED ACTION: Update on the RDA’s proposal to amend and/or create four (4) Commercial
Assistance Programs
POLICY ITEMS: Revision of existing RDA Loan Program; revision and expansion of Granary
Adaptive Reuse Loan Program; creation of new program to provide community
and cultural grants; added RDA functions to provide affordable storefront spaces
BUDGET IMPACTS: None at this time
EXECUTIVE SUMMARY: In recent years, Salt Lake City has experienced rapid population and economic
growth, resulting in unprecedented levels of real estate demand. While these trends contribute to a strong and
thriving city and present a lot of opportunity, studies show that they’re often followed by the displacement of
our most vulnerable residents, many of whom have called Salt Lake City home for generations. The City’s focus
on the provision of affordable housing is vital and necessary, and the RDA has identified a need to extend
similar benefits to the local businesses and non-profits that contribute so much to the health and vibrancy of our
neighborhoods. To address this need, the RDA is proposing to amend two (2) existing programs and create two
(2) new programs to better support the real estate and financial needs of the local business and non-profit
sectors. The following memo outlines staff’s proposal for a set of Commercial Assistance Programs, which has
been informed by research and community engagement, and will be further refined through Board discussion.
ANALYSIS & ISSUES:
Defining the Need
To better understand the challenges of renting and owning physical commercial space, the RDA conducted a
survey of local business owners (artists included) and employees/administrators of non-profit organizations
(Attachment A - Commercial Real Estate Assistance Survey). There was a total of 436 responses – 46% (201)
self-identified as a local business owner and 54% (235) identified as a non-profit employee or administrator.
Select highlights from the survey results include:
Local Business Owners:
• 81.4% of responding business owners reported that the majority owner identifies as a member of
a minority group, with 40% identifying as women.
• 30 respondents indicated that they do not operate their business from a dedicated physical
location.
o 70.2% of businesses without a dedicated physical location expressed interest in establishing a
brick-and-mortar location.
o When asked about the primary roadblocks preventing the business from securing a brick-and-
mortar location, the three most prominent challenges identified were:
1. The owner has a hard time finding space where the business could afford the lease or
mortgage payment.
2. The owner doesn’t know how to design or build out the interior of a space to suit the
business’s needs.
3. The owner is unable to get loan approvals or other financing to make the necessary
building improvements.
• 46.2% of respondents who currently have a dedicated physical location indicated that they rent
their space.
o 24 respondents reported that they experienced a rent increase of up to 5% over the previous
year.
o 9 respondents reported a rent increase of 6-10% over the previous year.
o 8 respondents reported a rent increase of 11-15% over the previous year.
o 5 respondents reported a rent increase that was greater than 15% over the previous year.
o 9 respondents reported that their rent stayed the same over the previous year.
• When renters were asked about various factors that may be challenging the financial health and
stability of the business, the three most prominent selections were:
1. There is concern that the owner of the building will drastically increase the business’s rent in
the future.
2. The owner of the building won’t grant the business a long-term lease or assurance that they will
extend the lease in the future.
3. The neighborhood is changing (physically, culturally, or economically) and a lot of the
traditional business clients have moved away.
• Many renting businesses expressed a desire to make improvements to their current space. When
asked about primary roadblocks, the two most prominent selections were:
o There is concern that the building owner will sell or redevelop the property soon, and that the
business will be forced to relocate.
o The owner cannot afford to take on more debt for their business.
• 29 business owners who currently rent their space indicated that they cannot pursue ownership of
a space because they do not have enough upfront capital to cover a down payment and ongoing
mortgage payments.
Non-Profit Organizations:
• 68 non-profit respondents indicated that they do not operate from a physical location.
o 54% of non-profits without a physical location indicated that it is a goal to eventually establish a
physical location.
o When asked about the primary roadblocks preventing the organization from securing a brick-
and-mortar location, the two most prominent challenges identified were:
1. The group has a hard time finding space where the organization could afford the lease
or mortgage payment; and
2. The group needs technical assistance to design or build out the interior of a space to suit
the organization’s needs.
• 85 non-profit respondents who currently have a physical location indicated that they rent their
space.
o 34 respondents reported that they experienced a rent increase of up to 5% over the previous
year.
o 15 respondents reported a rent increase of 6-10% over the previous year.
o 18 respondents reported a rent increase of 11-15% over the previous year.
o 5 respondents reported a rent increase that was greater than 15% over the previous year.
o 12 respondents reported that their rent stayed the same over the previous year.
• When renters were asked about various factors that may be challenging the financial health and
stability of the organization, the two most prominent selections were:
1. There is concern that the owner of the building will drastically increase the
organization’s rent in the future.
2. The owner of the building won’t grant the organization a long-term lease or assurance that
they will extend the lease in the future.
• Many renting organizations expressed a desire to make improvements to their current space.
When asked about primary roadblocks, the two most prominent selections were:
1. There is concern that the building owner will sell or redevelop the property soon,
and that the organization will be forced to relocate.
2. The organization needs help navigating the permitting, design, and construction
processes.
• 32 non-profit respondents who currently own their physical space indicated a desire to renovate
or make interior space improvements.
o 26 respondents indicated that they are unable to get approved for loans or other financing to
make the improvements.
Open-ended Comments:
• “Rents/leases are insanely expensive for small business in downtown Salt Lake area! Small, locally
owned businesses cannot afford to stay in business. There should be leases according to the business
profit margins. Like affordable rents for housing.”
• “Please make it easier to apply for loans & grants and assist women owned businesses to succeed.”
• “I currently was displaced this year for my business. I was lucky enough to find another space despite it
being 2x as much as the previous space in such a short time. I know other would not have been so
fortunate.”
• “The City needs more small spaces in unique new buildings and existing buildings with affordable rents
in walkable neighborhoods. The new construction mixed use buildings don’t provide good retail space,
either they are too big, too expensive, lack character, have low ceilings, and are built as an afterthought
to ‘check a box.’ Whether built new or in adapted buildings, small businesses do better in places that
have authenticity and character, because that’s where customers want to go. We can’t solve all our
problems with huge megadevelopments, lets give the little guys more of a chance to put their stamp on
the City and create all the interesting nooks and crannies that make people want to live, work and visit
our City.”
The RDA has shared these survey results with the Departments of Economic Development and Community and
Neighborhoods, and all groups are working together to ensure that the City’s commercial funding programs are
crafted to be transparent, complementary, equitable, and effectively address the challenges that our local
business, non-profit, and creative communities are facing.
Overarching Objectives for all Commercial Assistance Programs
Staff envisions the creation of a package of Commercial Assistance Programs where RDA tools are more
intentionally utilized to:
• Incentivize the construction of right-sized commercial spaces;
• Activate existing, underutilized commercial spaces;
• Promote the preservation, rehabilitation, or adaptive reuse of existing building stock;
• Provide opportunities to establish new services, amenities, or underrepresented business types within a
neighborhood;
• Create affordable rental or ownership opportunities for local businesses and non-profits;
• Counter the displacement of existing local businesses from their neighborhoods;
• Implement tenant preferences for local businesses, especially those that are women/minority/veteran-
owned, and community-serving non-profits;
• Partner with local organizations to amplify neighborhood identify through development, preservation,
and protection of community amenities and cultural assets; and
• Enhance the capacity for non-traditional applicants to apply for and utilize RDA programs.
1. RDA Commercial Loan Program Amendment
Staff proposes to amend the existing RDA Loan Program to prioritize the funding of commercial projects that
support the RDA’s Guiding Framework for Mission and Values (Attachment B).
Existing Program
The existing RDA Loan Program (Attachment C) provides gap financing (and primary financing under certain
circumstances) to facilitate development projects that:
• are located within an RDA Project Area and meet at least one Project Area Objective as provided in the
most recent Project Area Strategic Plan; or
• are located within Salt Lake City and provide housing units affordable to households earning 80% of the
Area Median Income (AMI) or below.
Interest rate reductions are available if projects meet one or more listed Public Benefit Criteria related to:
• Sustainability;
• Public Amenities;
• Adaptive Reuse;
• Historic Preservation;
• Permanent Job Creation & Retention;
• Architecture & Urban Design;
• Transit Alternatives;
• Economic Impact; and
• Affordable Housing that meets targeted levels of AMI, provides housing for special needs populations,
or housing within areas of high opportunity.
Proposed Changes
Staff would like to amend the existing program to have a stronger focus on the funding of commercial
development, as the RDA already has a robust set of housing policies and programs that support affordable
housing development. The RDA Commercial Loan Program would be structured to complement the Housing
Development Loan Program and provide financing for commercial projects that:
• Are located within an RDA Project Area and support at least one objective of the latest RDA Project
Area Work Plan.1
Interest rate reductions would be made available for projects that meet one or more of the following Public
Benefit Criteria, with a stated maximum level of reduction. A future policy proposal may assign differing levels
of interest rate reduction for each Criteria that is based on level of impact.
• Projects that result in spaces occupied by local and independent businesses and non-profits;
• Projects that result in spaces occupied by minority, women, and/or veteran-owned businesses;
• Projects that result in spaces occupied by childcare facilities or after-school programs;
• Projects that result in condominiumized commercial spaces that are made available for purchase by a
business or non-profit;
• Mixed-use developments with ground-floor commercial space(s) and a residential component that
supports at least one Annual RDA Housing Priority; and
• Applicable RDA Livability Benchmarks.
1 Spanning a 1-3 year time frame, Project Area Work Plans identify redevelopment objectives and strategic redevelopment projects for each Project Area,
along with a corresponding schedule and budget for each project.
Projects shall not result in the involuntary displacement of existing tenants.
2. RDA Adaptive Reuse Loan Program Amendment
Staff proposes to amend and expand the existing Granary District Adaptive Reuse Loan Program (Attachment
D) to have a broader geography and support the rehabilitation and activation of vacant, underutilized, or
economically challenged buildings.
Existing Program
The existing program provides forgivable loans up to $200,000 (with escalating match requirement) for projects
that:
• Are located within the Granary District Project Area;
• Will convert a vacant, underutilized, or economically challenged building into one of the following
uses:
o Dwelling units (apartments or condos)
o Joint living and working units
o Neighborhood-oriented retail or services
o Office or commercial space
Funding is made available for construction costs related to building code requirements, including but not limited
to:
• Seismic retrofits;
• Installation of fire suppression systems;
• Plumbing or electrical upgrades;
• Accessibility improvements; and
• Increasing the number or size of restrooms.
Proposed Changes
To further promote the reuse of existing buildings and unique character of Salt Lake City neighborhoods, staff
proposes to:
• expand the program to all RDA Project Areas;
• amend eligible costs to be less specific and include any construction costs that are unique to the adaptive
reuse of an existing building; and
• simplify the match requirement/calculation.
Projects shall not result in the involuntary displacement of existing tenants.
3. RDA Community & Cultural Grant Program
Staff proposes to create a new grant program to provide a funding option for local organizations that aim to
amplify neighborhood identity through the development, protection, or preservation of important community
and cultural resources that may not be revenue-generating, thus, are unable to support debt. Grants, with a match
requirement, would be available to support visible and physical improvements through the following types of
projects:
• Community gathering spaces;
• Cultural education facilities;
• Non-profit facilities that provide community services;
• Community-led placemaking projects (i.e., streetscaping, art); and
• Planning and/or design activities that support the eventual development of project types listed above.
The intent of this program is to add an additional funding option that complements opportunities provided
through the City’s Love Your Block, Neighborhood Business Improvement, and Capital Improvement
Programs. Appropriate funding levels and match requirements will need to be determined.
4. RDA Affordable Storefront Activation Strategies
Staff proposes to utilize existing policies and tools to gain control of commercial spaces, which will in turn
allow the RDA to provide affordable rental or ownership opportunities to local businesses and non-profits. The
RDA could gain control of commercial spaces through:
• Master Leasing - lease available new or struggling commercial spaces and sublease them to local
businesses or non-profits at an affordable rate;
• Property Acquisition - purchase existing commercial buildings/spaces that may be in need of
environmental remediation, rehabilitation, or activation; or
• RDA Property Disposition - reduce land sale/lease rate in exchange for ownership of ground floor space
in new developments.
These activities would present the following opportunities:
• Support the adaptive reuse and activation of vacant, underutilized or economically challenged buildings;
• Require the creation of right-sized commercial spaces within new construction projects on RDA-owned
property; and
• Allow the RDA to lease or sell spaces to preferred tenant types at affordable rates.
While these activities could be conducted under existing policies, the Board may wish to amend the RDA Real
Property Disposition Policy (Attachment E) to clarify Staff’s ability to utilize land value to negotiate ownership
in a development project and incorporate RDA leasing activities.
NEXT STEPS:
The purpose of this memo is to present a high-level proposal for a set of Commercial Assistance Programs and
identify any additional priorities or concerns from the Board. Staff will return with refined policies, per
resolutions, that will need to be adopted by the Board and will be used to administer each program.
PREVIOUS BOARD ACTION: N/A
ATTACHMENTS:
A. RDA Commercial Assistance Survey Report
B. Resolution No. R-18-2021: Guiding Framework for Mission and Values
C. Resolution No. R-37-2016: RDA Loan Program Policy
D. Resolution No. R-8-2017: Granary District Adaptive Reuse Program Policy
E. Resolution No. R-6-2021: Real Property Disposition Policy
RDA Commercial Assistance Survey Report
JANUARY 2023
ATTACHMENT A
iRDA COMMERCIAL ASSISTANCE SURVEY REPORT
Table of Contents
INTRODUCTION01
SRUVEY RESULTS
03 Nonprofit Administrators & Employees
17 Business Owners Responses
APPENDIX
DEMOGRAPHICS
02
32
35
In an effort to better understand the community it serves, the
Redevelopment Agency (RDA) of Salt Lake City surveyed 435 local
business owners, artists, and employees/administrators of nonprofits
about what it's like run an organization or business in Salt Lake City.
The survey specifically gathered information on the challenges of renting
and owning physical space while also exploring the roadblocks
preventing preventing entrepreneurs from establishing brick-and-mortar
locations.
The Commercial Real Estate Assistance Survey launched in September
2022 and was closed January 2023. In that time 436 community members
responded, 435 in English, and 1 in Spanish. The following analysis
includes all English and Spanish results together.
The survey was promoted through social media, including Facebook,
Instagram and Twitter, on the City's pages as well as RDA's specific pages.
In addition to a physical flyer that included a QR code linking to the
survey directly. In total, 28 people scanned the RDA's QR code to access
the English survey, and 8 scanned the QR code to access the Spanish
version. These numbers suggest online advertisements was more likely
the source of survey takers rather than flyers.
PROJECT BACKGROUND
Introduction
01RDA COMMERCIAL ASSISTANCE SURVEY REPORT
02RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Nonprofit Admin. and Employees
53.9%
Business Owners
46.1%
WHICH OF THE FOLLOWING IS THE BEST WAY TO DESCRIBE
YOURSELF?
Respondents were asked to select between identifying as nonprofit administrator or
employee or a local business owner (artists included, national chains and franchises
excluded). 53.9%, a total 235 respondents, identified as administrators or employees
of local nonprofits.
Survey Results
The following analysis comes from 436 responses to the survey in a 5
month period. All duplicate and invalid (no responses despite clicking
through the entire survey) responses were removed from the analysis to
ensure authentic results. Due to high use of branching within the survey,
some questions draw from a smaller sample size than the total number
of respondents.
0 20 40 60
Northwest Quadrant
Airport
Northwest Community
Westside Community
Capitol Hill
Downtown
City Creek
Avenues
Central Community
East Bench
Sugar House
Not Applicable
0 25 50 75 100 125
0-2 Yrs
3-5 Yrs
6-10 Yrs
11+ Yrs
Not Applicable
I F A P P L I C A B L E , P L E A S E S E L E C T T H E N E I G H B O R H O O D W H E R E
Y O U R N O N P R O F I T I S L O C A T E D :
H O W L O N G H A S Y O U R N O N P R O F I T B E E N L O C A T E D A T I T S
C U R R E N T A D D R E S S ?
Respondents were asked to select the most accurate range of time. 48% (112 respondents) have been in the same location for 3-5 years.
Respondents were asked to select from a map. The highest concentration of
responding nonprofits were located in the Downtown area, housing 24% or 56
individual organizations.
NONPROFIT ADMINISTRATORS & EMPLOYEES
03RDA COMMERCIAL ASSISTANCE SURVEY REPORT
WHICH OF THE FOLLOWING BEST DESCRIBE(S) THE FOCUS AREA OF
YOUR NONPROFIT?
Respondents were asked to select the category most applicable to their organization.
The top three categories include Art/cultures (17.6%), Housing/Shelter (14.2%) and
Education (12.9%) .
HOW MANY PAID EMPLOYEES DOES YOUR NONPROFIT HAVE (FULL-
TIME OR EQUIVALENT)?
0 25 50 75
0-10 people
11-20 people
21-30 people
31-50 people
51-75 people
75+ people
Respondents were asked to select the range most applicable to their circumstances.
74 or 31.6% of those survey have 11-20 employees.
0 10 20 30 40 50
Arts/Culture
Education
Healthcare
Mental Health/Crisis Intervention
Housing/Shelter
Environmental Concerns
Recreation/Sport
Agriculture/Food
Animal Welfare or Other Animal-related
Mutual/Membership Benefit
Other
04RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Community development Finance, Displaced Women
Empowerment, Religious
Comments for "Other":
Multiple Tenants
40.2%
No Physical Location
30.8%
Only Tenant
29.1%
H O W W O U L D Y O U D E S C R I B E T H E P H Y S I C A L S P A C E W H E R E T H E
N O N P R O F I T O P E R A T E S ?
Organization operates out of a building with multiple tenants
Organization is mobile or volunteer-based and does not have a physical location
Organization operates in a building as the only tenant.
Respondents selected one of three options:
1.
2.
3.
A majority of respondents, 69.3%, are located in a building as either the only tenant
or with multiple tenants. A total of 68 respondents reported to have no physical
location out of which their organization operates.
05RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Q u e s t i o n s p e c i f i c t o n o n p r o f i t a d m i n i s t r a t o r s a n d e m p l o y e e s
w i t h n o p h y s i c a l l o c a t i o n :
I S Y O U R O R G A N I Z A T I O N I N T E R E S T E D I N E S T A B L I S H I N G
A B R I C K -A N D -M O R T A R L O C A T I O N T O O P E R A T E F R O M ?
Respondents selected their desire for a physical location. A slight majority (53.5%) selected "Yes, that is a goal of ours."
Yes
53.5%
No
46.5%
WHAT ARE THE PRIMARY ROADBLOCKS
PREVENTING THE ORGANIZATION FROM SECURING
A BRICK-AND-MORTAR LOCATION TO OPERATE
FROM? PLEASE SELECT ALL THAT APPLY.
Our group has had a hard time finding space that suits the
organization's needs.
Our group has had a hard time finding space where the
organization could afford the lease or mortgage payment.
Our group needs technical assistance to design or build out
the interior of a space to suit the organization's needs.
The organization is unable to get loan approvals or other
financing to make the necessary building improvements.
The organization cannot afford to take on additional debt
to make the necessary building improvements.
Respondents were asked to select all that apply of the
following:
1.
2.
3.
4.
5.
The two most prominent roadblocks are an organization's
need for technical assistance when designing or building out
interior spaces to match their needs and lack of ability to find
space where they can afford the accompanying lease or
mortgage payment.
Option 1 Option 2 Option 3 Option 4 Option 5
20
15
10
5
0
06RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Q u e s t i o n s s p e c i f i c t o n o n p r o f i t a d m i n i s t r a t o r s a n d
e m p l o y e e s w h o d e s i r e a b r i c k -a n d -m o r t a r l o c a t i o n :
07RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Q u e s t i o n s s p e c i f i c t o n o n p r o f i t a d m i n i s t r a t o r s a n d e m p l o y e e s w h o
o c c u p y a b r i c k -a n d -m o r t a r :
HOW MUCH SPACE DOES YOUR ORGANIZATION CURRENTLY OCCUPY
(IN SQUARE FEET)?
Respondents were asked to type the square footage of their location. Answers
ranged from 1-80,000 sq/ft. A majority of responses, 62.2%, reported to be in the
range of 1-200 square ft.
Due to the open text answer style, responses were recorded as qualitative data. The
wide range of answers made a graphic presentation unviable.
D O E S T H E S I Z E O F Y O U R C U R E N T S P A C E M E E T Y O U R
O R G A N I Z A T I O N 'S N E E D S ?
We are outgrowing our current space
Our current space is larger than what we need
Our group is happy with the amount of space that we currently occupy
Respondents chose between three options:
1.
2.
3.
78.5% of respondents report to be unsatisfied with their current space, with the
space being either too large or too small.
Space Too Large
40.5%
Outgrowing Space
38%
Happy with Space
21.5%
DO YOU RENT OR OWN THE BUILDING OR SPACE WHERE YOUR
ORGANIZATION IS LOCATED?
Respondents were asked to select between rent and own. A slight majority, 52.8% or
85 respondents, rent rather than own their current space.
H O W M U C H D O E S Y O U R O R G A N I Z A T I O N P A Y I N
R E N T F O R Y O U R S P A C E P E R Y E A R ($/S F P E R
Y E A R )?
08RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Answers ranged from $2-54,000. 38.7% of respondents reported
to pay in the range of $2-100 in rent per square foot per year.
Due to the open text answer style, responses were recorded as
qualitative data. The wide range of answers made a graphic
presentation unviable.
The wording of this question was seemingly not understood by
all respondents given the large range in responses. It can be
assumed that some respondents reported yearly rent but not
per square foot.
Rent
52.8%
Own
47.2%
Q u e s t i o n s s p e c i f i c t o n o n p r o f i t a d m i n i s t r a t o r s a n d e m p l o y e e s
w h o r e n t :
H A S Y O U R R E N T I N C R E A S E D O V E R T H E L A S T
Y E A R ?
0 10 20 30 40
Increased up to 5%
Increased 6-10%
Increased 11-15%
Increased <15%
Rent Stayed the Same
Rent Decreased
WHAT IS THE LENGTH OF YOUR CURRENT LEASE?
Respondents were asked to select the length of their current
lease. 43, 51.2% of respondents have a 1-3 yr lease.
0 10 20 30 40 50
Month-to-month
1-3 years
4-5 years
6-10 years
11+ years
09RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Respondents selected to what extent their rent increased or decreased. 40.4% or 34 respondents reported to experience an increase of rent by up to 5% in the last year.
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
50
40
30
20
10
0
We struggle to make the rent payment for the organization’s
building or space.
We are concerned that the owner of the building where the
organization is located will drastically increase our rent in the
future.
The owner of the building where the organization is located
won't grant us a long-term lease or assurance that they will
extend our lease in the future.
Our neighborhood is changing (physically, culturally, or
economically), and many of our members or clients have
moved away.
The organization is currently financially healthy and stable.
None of these apply.
Other
Respondents were asked to select any of the following
challenges that they may face:
1.
2.
3.
4.
5.
6.
The two most prominent challenges nonprofit organizations face
includes concern that the building owner will increase rent
and/or won't grant long-term leases or assurance of an extended
lease.
10RDA COMMERCIAL ASSISTANCE SURVEY REPORT
WHICH OF THE FOLLOWING FACTORS (IF ANY) ARE
CHALLENGING THE FINANCIAL HEALTH AND
STABILITY OF THE ORGANIZATION? PLEASE SELECT
ALL THAT APPLY.
The building has been purchased by an out-of-state developer and
will be razed once all tenant leases have expired.
Age of facilities and need for upgrades. Parking!! (please talk with
us about this)
Historic building concerns (we operate the Tower, a 1928 theater)
We need a larger space but cannot afford any spaces we find.
Comments for "Other":
Option 1 Option 2 Option 3 Option 4 Other
50
40
30
20
10
0
A R E T H E R E I M P R O V E M E N T S T H A T T H E
O R G A N I Z A T I O N W O U L D L I K E T O M A K E T O I T S
C U R R E N T B U I L D I N G O R S P A C E ? P L E A S E S E L E C T
A L L T H A T A P P L Y .
We wish that the property owner would make critical
improvements to the building that would make it more safe
or operational.
We wish that the property owner would make the exterior of
the building more attractive.
We would like to renovate or make interior space
improvements that would directly benefit the organization.
We are happy with the organization’s current space. None of
these apply.
Other
Respondents selected from any of the following improvements:
1.
2.
3.
4.
5.
The most common desired improvement among surveyed
nonprofit administrators and employees is to have the property
owners make the exterior of the building more attractive.
11RDA COMMERCIAL ASSISTANCE SURVEY REPORT
We would like public art, block planning and branding
We would like to coordinate with the City to work with neighbors
like Coffee Garden/Cahoots on a master neighborhood restoration
vision that includes parkstrip, exterior improvements.
Comments for "Other":
W H A T A R E T H E P R I M A R Y R O A D B L O C K S T H A T
A R E P R E V E N T I N G T H E O R G A N I Z A T I O N F R O M
P U R S U I N G T H E S E I M P R O V E M E N T S ? P L E A S E
S E L E C T A L L T H A T A P P L Y .
The owner of the building is not willing or not able to invest
in their property.
We have concerns that the building owner will sell or
redevelop the property soon, and that we will be forced to
relocate the organization.
We need help navigating the permitting, design, and
construction processes.
The organization is unable to get loan approvals or other
financing to make the desired interior improvements.
The organization cannot afford to take on additional debt to
make the improvements.
We are happy with the organization’s current space. None of
these apply.
Other
Respondents selected from any of the following roadblocks:
1.
2.
3.
4.
5.
6.
7.
The most common roadblocks include concern of forced
relocation, the need for help to navigate the construction
process, and the inability to gain loans or approvals required for
desired improvements.
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7
40
30
20
10
0
12RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Post-Covid fundraising focus, still in recovery
Pipeline and rising costs of construction. Difficulties working with a
historic space.
Comments for "Other":
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7
40
30
20
10
0
WHAT ARE THE PRIMARY REASONS FOR NOT PURSUING
OWNERSHIP OF A BUILDING OR SPACE FOR THE
ORGANIZATION? PLEASE SELECT ALL THAT APPLY.
We do not want to deal with the burden of property insurance,
taxes, maintenance, etc.
We do not want to make such a long-term commitment.
The real estate market is too volatile and risky.
We do not have enough upfront capital to cover a down payment
and ongoing mortgage payments.
If we purchased a space, we would not have enough capital for the
necessary building improvements.
We have plans to purchase or develop our own building or space in
the future and are actively working toward that goal.
Other
Respondents selected any of the following reasons:
1.
2.
3.
4.
5.
6.
7.
The most common reason for not pursuing ownership of a building is
the lack of upfront capital for a down payment and ongoing mortgage
payments.
13RDA COMMERCIAL ASSISTANCE SURVEY REPORT
We do not know how it would be possible to pursue ownership, nor
would landlords seem to want to condominiumize their office
complex to clip us off.
Will not disclose at this time, could have a meeting with RDA
members.
Our space needs are way too small to need or justify a whole
building
Comments for "Other":
Option 1 Option 2 Option 3 Option 4 Option 5
40
30
20
10
0
W H I C H O F T H E F O L L O W I N G F A C T O R S (I F A N Y ) A R E
C H A L L E N G I N G T H E F I N A N C I A L H E A L T H A N D S T A B I L I T Y O F T H E
O R G A N I Z A T I O N ? P L E A S E S E L E C T A L L T H A T A P P L Y .
We struggle to make the mortgage payment for the building or space.
We struggle to pay increasing property insurance, taxes, or maintenance costs.
Our neighborhood is changing (physically, culturally, or economically), and a lot of
the organization’s members or clients have moved away.
The organization is currently financially healthy and stable. None of these apply.
Other
Respondents selected from any of the following factors:
1.
2.
3.
4.
5.
Although many respondents reported to experience one or more of these factors, the
most common factor chosen being the struggle to pay increasing taxes and costs, an
unusually high percentage (37.8%) also selected Option 4, claiming that "none of
these apply."
14RDA COMMERCIAL ASSISTANCE SURVEY REPORT
IS THERE ANYTHING ELSE THAT YOU’D LIKE US TO
KNOW ABOUT YOUR ORGANIZATION’S EXPERIENCE
LEASING, IMPROVING, OR MAINTAINING A PHYSICAL
LOCATION FOR YOUR OPERATIONS?
Respondents were asked to type comments in an open text box.
Comments can be found in the appendix (pg 35)
COMMON THEMES:
Q u e s t i o n s s p e c i f i c t o n o n p r o f i t a d m i n i s t r a t o r s & e m p l o y e e s w h o o w n :
Concerns regarding making rent
Fear of losing space to bigger companies
Requests for better RDA systems and services
A R E T H E R E I M P R O V E M E N T S T H A T T H E O R G A N I Z A T I O N W O U L D
L I K E T O M A K E T O I T S C U R R E N T B U I L D I N G O R S P A C E ? P L E A S E
S E L E C T A L L T H A T A P P L Y .
There are critical improvements that we need to make to the building or space
that would make it safer or more operational.
We would like to improve the appearance of the exterior of our building.
We would like to renovate or make interior space improvements.
We are happy with the organization's current building or space. None of these
apply.
Other
Respondents selected any of the following improvements:
1.
2.
3.
4.
5.
The most common desired improvement among respondents is to renovate
building's interior space. Although many respondents reported to desire these
improvements, an unusually high percentage (41.6%) also selected Option 4, claiming
that "none of these apply."
Option 1 Option 2 Option 3 Option 4 Option 5
40
30
20
10
0
15RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
40
30
20
10
0
16RDA COMMERCIAL ASSISTANCE SURVEY REPORT
WHAT ARE THE PRIMARY ROADBLOCKS PREVENTING THE
ORGANIZATION FROM PURSUING THESE IMPROVEMENTS? PLEASE
SELECT ALL THAT APPLY.
We need help navigating the permitting, design, and construction processes.
We cannot afford to invest in the organization’s property right now.
We are unable to get approved for loans or other financing to make the
improvements.
The organization might sell or redevelop its property soon so there is no point in
investing in it.
We are happy with the organization's current building or space. None of these
apply.
Other
Respondents selected any of the following roadblocks:
1.
2.
3.
4.
5.
6.
Although many respondents reported to experience one or more of these
roadblocks, an unusually high percentage (43.9%) also selected Option 5, claiming
that "none of these apply."
We need to budget and raise funds for additional improvements
Comments for "Other":
IS THERE ANYTHING ELSE THAT YOU'D LIKE US TO KNOW ABOUT YOUR
ORGANIZATION'S EXPERIENCE OWNING, IMPROVING, OR MAINTAINING A
PHYSICAL LOCATION FOR YOUR ORGANIZATION?
Respondents were asked to type comments in an open text box.
Comments can be found in the appendix (pg 35)
COMMON THEMES:
17RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Requests for better communication channels
Requests for talent introduction
Requests for government financial support
BUSINESS OWNERS
H O W L O N G H A S Y O U R B U S I N E S S B E E N L O C A T E D A T I T S
C U R R E N T A D D R E S S ?
Respondents were asked to select the most accurate range of time. 37.7% or 74 respondents have been in the same location for 3-5 years.
0 25 50 75
0-2 Yrs
3-5 Yrs
6-10 Yrs
11+ Yrs
N/A
W H I C H O F T H E F O L L O W I N G S E C T O R S B E S T D E S C R I B E S Y O U R
P R I M A R Y B U S I N E S S T Y P E ?
Respondents were asked to select the category most applicable to their business. The
top three categories include Arts, Entertainment, and Recreation (21.3%),
Manufacturing (18.3%) and Professional, Business, and Personal Services (18.3%).
0 10 20 30 40 50
Retail
Wholesale
Food/Beverage Services
Arts, Entertainment, and Recreation
Manufacturing
Professional, Business and Personal Services
Childcare
Other
18RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Training
Commercial Office Space
Boutique Fitness
Car Wash
Comments for "Other":
DOES THE MAJORITY OWNER OF YOUR BUSINESS SELF-IDENTIFY AS A
WOMAN, PERSON OF COLOR OR MEMBER OF ANOTHER MINORITY
GROUP? PLEASE SELECT ALL THAT APPLY.
Respondents were asked to select any of the provided minority groups. A vast
majority (81.4%) of majority owners identify as a woman or a member of a minority
group, with the highest percentage identifying as women (40%).
HOW MANY PEOPLE ARE EMPLOYED BY YOUR BUSINESS (FULL-TIME
OR EQUIVALENT)?
0 10 20 30 40 50
0-10 People
11-20 People
21-30 People
31-50 People
51-75 People
75+ People
Respondents were asked to select the range most applicable to their circumstances.
43 respondents, or 21.7%, reported to have 0-10 employees.
Wo
m
a
n
Bla
c
k
Lat
i
n
x
Asi
a
n
A
m
e
r
i
c
a
n
Pac
i
f
i
c
I
s
l
a
n
d
e
r
Ind
i
g
e
n
o
u
s
LG
B
T
Q
+
No
t
M
i
n
o
r
i
t
y
O
w
n
e
d
Oth
e
r
100
75
50
25
0
19RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Veteran
Comments for "Other":
H O W W O U L D Y O U D E S C R I B E T H E P H Y S I C A L S P A C E W H E R E Y O U
O P E R A T E Y O U R B U S I N E S S ?
A R E Y O U I N T E R E S T E D I N E S T A B L I S H I N G A N
I N D E P E N D E N T , B R I C K -A N D -M O R T A R
L O C A T I O N F O R Y O U R B U S I N E S S ?
Respondents were asked to
select between "yes' and "no."
A majority of respondents are
interested in establishing an
independent brick-and-
mortar location.
My business operates out of a building with multiple tenants.
My business is mobile, like a food truck
I run my business out of my home
My business is the only tenant within the building.
Respondents selected one of four options:
1.
2.
3.
4.
A slight majority of respondents, 52.5%, are located in a building as either the only
tenant or with mulptile tenants. 32.7% have a mobile business. 14.1% or 30
respondents with no physical location.
20RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Yes
70.2%
No
29.8%
Q u e s t i o n s p e c i f i c t o b u s i n e s s o w n e r s w h o d o n o t h a v e a
p h y s i c a l l o c a t i o n :
No Physical Location
15.1%
Multiple Tenants
38.2%
Mobile Business
32.7%
Only Tenant
14.1%
WHAT ARE THE PRIMARY ROADBLOCKS THAT HAVE
PREVENTED YOU FROM SECURING AN
INDEPENDENT BRICK-AND-MORTAR LOCATION
FOR YOUR BUSINESS? PLEASE SELECT ALL THAT
APPLY.
I have had a hard time finding space that suits my business
needs.
I have had a hard time finding space where I could afford
the lease or mortgage payment.
I don’t know how to design or build out the interior of a
space to suit my business needs.
I am unable to get loan approvals or other financing to
make the necessary building improvements.
I cannot afford to take on additional debt to make the
necessary building improvements.
Other
Respondents selected from any of the following roadblocks:
1.
2.
3.
4.
5.
6.
The most common reported roadblock among respondents is
not knowing how to design and build out the interior space to
match their needs.
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
30
20
10
0
21RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Q u e s t i o n s p e c i f i c t o b u s i n e s s o w n e r s w h o d e s i r e a b r i c k -a n d -
m o r t a r l o c a t i o n :
D O E S T H E S I Z E O F Y O U R C U R R E N T S P A C E M E E T Y O U R
B U S I N E S S N E E D S ?
I am happy with the amount of space my business currently occupies.
My business is outgrowing its current space.
My business's current space is larger than what I need.
Respondents were asked to select one of the following:
1.
2.
3.
A slight majority (58.8%) of respondents report that their current space does not
meet their business needs.
HOW MUCH SPACE DOES YOUR BUSINESS CURRENTLY OCCUPY (IN
SQUARE FEET)?
Respondents were asked to type the square footage of their location. Answers
ranged from 100-27,535 sq/ft. 40% of respondents reported to occupy 100-500 sq/ft.
Due to the open text answer style, responses were recorded as qualitative data. The
wide range of answers made a graphic presentation unviable.
22RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Q u e s t i o n s s p e c i f i c t o b u s i n e s s o w n e r s w h o h a v e a b r i c k -a n d -m o r t a r l o c a t i o n :
Happy with Space
41.7%
Larger than needed
31.1%
Outgrowing
27.2%
D O Y O U R E N T O R O W N T H E P R O P E R T Y O R S P A C E W H E R E Y O U R
B U S I N E S S I S L O C A T E D ?
Respondents were asked to select between rent and own. A slight majority, 53.8% or
56 respondents, own rather than rent their current space.
H O W M U C H D O Y O U P A Y I N R E N T F O R Y O U R
S P A C E P E R Y E A R ($/S F P E R Y E A R )?
Answers ranged from $0.49-38,000. 13 respondents (40.6%)
reported to pay $0.49-50 in rent per square foot per year, 7
respondents (21.8%) reported to pay $58-360 in rent per
square foot per year, and 12 respondents (37.5%) reported to
pay $1,800-38,000 in rent per square foot per year.
Due to the open text answer style, responses were recorded as
qualitative data. The wide range of answers made a graphic
presentation unviable.
The wording of this question was seemingly not understood by
all respondents given the large answer range. It can be
assumed that some respondents reported yearly rent but not
per square foot.
23RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Own
53.8%
Rent
46.2%
Q u e s t i o n s s p e c i f i c t o b u s i n e s s o w n e r s w h o h a v e a b r i c k -a n d -
m o r t a r l o c a t i o n :
H A S Y O U R R E N T I N C R E A S E D O V E R T H E L A S T
Y E A R ?
0 5 10 15 20 25
Increased by up to5%
Increased by 6-10%
Increased by 11-15%
Increased by more than 15%
Rent Stayed the Same
Rent Decreased
Respondents selected to what extent their rent increased ordecreased. 44% or 24 respondents report to have experiencedan increase of rent by up to 5%.
WHAT IS THE LENGTH OF YOUR CURRENT LEASE?
Respondents were asked to select the length of lease of their
lease. 54.7% of respondents report to have 1-3 yr leases.
0 10 20 30
Month-to-month
1-3 years
4-5 years
6-10 years
11+ years
24RDA COMMERCIAL ASSISTANCE SURVEY REPORT
WHICH OF THE FOLLOWING FACTORS (IF ANY) ARE
CHALLENGING THE FINANCIAL HEALTH AND
STABILITY OF YOUR BUSINESS? PLEASE SELECT ALL
THAT APPLY.
Option 1 Option 2 Option 3 Option 4 Option 5 Option6
30
20
10
0
I struggle to make the rent payment for the organization’s
building or space.
I am concerned that the owner of the building where the
organization is located will drastically increase our rent in
the future.
The owner of the building won't grant us a long-term lease
or assurance that they will extend our lease in the future.
My neighborhood is changing (physically, culturally, or
economically), and a lot of my traditional business clients
have moved away.
My business is currently financially healthy and stable.
None of these apply to me.
Other
Respondents were asked to select any of the following
challenges that they may face:
1.
2.
3.
4.
5.
6.
The two most prominent challenges responding businesses
face includes concern that the building owner won't grant
long-term leases or assurance of an extended lease and that
their current neighborhood is changing resulting in change in
clients.
25RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Sell building or current construction and road closures will
upset clients and make them not want to deal with the hassle
Building was torn down for expensive apartments
There has been lots of road construction and parking is
definitely an issue in this area
The constant construction of 300W and the lack of parking
Comments for "Other":
A R E T H E R E I M P R O V E M E N T S Y O U W O U L D L I K E
T O M A K E T O Y O U R B U S I N E S S 'S C U R R E N T
B U I L D I N G O R S P A C E ? P L E A S E S E L E C T A L L
T H A T A P P L Y .
Option 1 Option 2 Option 3 Option 4 Option 5
40
30
20
10
0
I wish that the property owner would make critical
improvements to the building that would make it more
safe or operational.
I wish that the property owner would make the exterior of
the building more attractive.
I would like to renovate or make interior space
improvements that would directly benefit my business.
I are happy with the organization’s current space. None of
these apply.
Other
Respondents selected any of following improvements:
1.
2.
3.
4.
5.
The most common desired improvement among surveyed
business owners is to renovate the interior space to directly
benefit the business.
26RDA COMMERCIAL ASSISTANCE SURVEY REPORT
We would like the gutters to be leveled so there isn’t a huge
dip from road to curb. It’s bad for parking and tough on our
cars. Additionally, creating a parking area on the block for
local businesses would be awesome.
I wish the owner of the building would allow tenants to put
up exterior signage or at the very least put logos on the doors
of the building.
Comments for "Other":
W H A T A R E T H E P R I M A R Y R O A D B L O C K S
P R E V E N T I N G Y O U F R O M P U R S U I N G T H E S E
I M P R O V E M E N T S ? P L E A S E S E L E C T A L L T H A T
A P P L Y .
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7
25
20
15
10
5
0
The owner of the building is not willing or not able to invest
in their property.
I am concerned that the building owner will sell or
redevelop the property soon, and that I will be forced to
relocate my business.
I need help navigating the permitting, design, and
construction processes.
I cannot afford to take on more debt for my business.
I am unable to get approved for loans or other financing to
make the improvements.
I am happy with my current business space. None of these
apply to me.
Other
Respondents selected any of the following roadblocks:
1.
2.
3.
4.
5.
6.
7.
The most common roadblocks include concern of forced
relocation, inability to afford the debt that comes with
improvements, and help needed to navigate the construction
process.
27RDA COMMERCIAL ASSISTANCE SURVEY REPORT
We are in the process of adding a restaurant in an empty lot
outside of our manufacturing space. Once that project is
complete, we'll remodel the exterior and the interior of the
existing space.
Comments for "Other":
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7
30
20
10
0
W H A T A R E Y O U R P R I M A R Y R E A S O N S F O R N O T
P U R S U I N G O W N E R S H I P O F A C O M M E R C I A L
S P A C E F O R Y O U R B U S I N E S S ? P L E A S E S E L E C T
A L L T H A T A P P L Y .
I do not want to deal with the burden of property
insurance, taxes, maintenance, etc.
I do not want to make such a long-term commitment.
The real estate market is too volatile and risky.
I do not have enough upfront capital to cover a down
payment and ongoing mortgage payments.
I do not have enough upfront capital for the necessary
building improvements.
I have plans to purchase or develop my own commercial
space in the future and am actively working toward that
goal.
Other
Respondents selected from any of the following reasons:
1.
2.
3.
4.
5.
6.
7.
The most common reason for not pursuing ownership is the
lack of upfront capital to cover a down payment and ongoing
payments.
28RDA COMMERCIAL ASSISTANCE SURVEY REPORT
W H I C H O F T H E F O L L O W I N G F A C T O R S (I F A N Y ) A R E
C H A L L E N G I N G T H E F I N A N C I A L H E A L T H A N D S T A B I L I T Y O F
Y O U R B U S I N E S S ? P L E A S E S E L E C T A L L T H A T A P P L Y .
I struggle to make the mortgage payment for my business building or space.
I struggle to pay increasing property insurance, taxes, or maintenance costs.
My neighborhood is changing (physically, culturally, or economically), and a lot of
my traditional business clients have moved away.
My business is currently financially healthy and stable. None of these apply to me.
Other
Respondents selected any of the following factors:
1.
2.
3.
4.
5.
Although many respondents reported to experience these factors, an unusually high
percentage (30.9%) also selected Option 4, claiming that "none of these apply."
Option 1 Option 2 Option 3 Option 4 Option 5
25
20
15
10
5
0
29RDA COMMERCIAL ASSISTANCE SURVEY REPORT
I S T H E R E A N Y T H I N G E L S E Y O U 'D L I K E U S T O
K N O W A B O U T Y O U R E X P E R I E N C E L E A S I N G ,
I M P R O V I N G , O R M A I N T A I N I N G A P H Y S I C A L
L O C A T I O N F O R Y O U R S P A C E ?
Complaints of expensive rent
Request for more accessible loans for women
Request for help to make building improvements
Q u e s t i o n s s p e c i f i c t o b u s i n e s s o w n e r s w h o o w n t h e i r l o c a t i o n :
Respondents were able to type comments in an open text box.
Comments can be found in the appendix (pg 35)
COMMON THEMES:
A R E T H E R E I M P R O V E M E N T S Y O U W O U L D L I K E T O M A K E T O
Y O U R B U S I N E S S 'S C U R R E N T B U I L D I N G O R S P A C E ? P L E A S E
S E L E C T A L L T H A T A P P L Y .
There are critical improvements that I need to make to my building or space that
would make it safer or more operational.
I would like to improve the appearance of the exterior of my building.
I would like to renovate or make interior space improvements that would directly
benefit my business operations.
I am happy with my building or space. None of these apply to me.
Other
Respondents selected any of the following improvements:
1.
2.
3.
4.
5.
The most common desired improvements include critical improvements needed to
make it safe or more operational as well as improvements in exterior appearance.
Although many respondents reported to desire these improvements, an unusually
high percentage (18.5%) also selected Option 4, claiming that "none of these apply."
Option 1 Option 2 Option 3 Option 4 Option 5
25
20
15
10
5
0
30RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
25
20
15
10
5
0
W H A T A R E T H E P R I M A R Y R O A D B L O C K S P R E V E N T I N G Y O U
F R O M P U R S U I N G T H E S E I M P R O V E M E N T S ? P L E A S E S E L E C T A L L
T H A T A P P L Y .
I need help navigating the permitting, design, and construction processes.
I cannot afford to invest in my property right now.
I am unable to get approved for loans or other financing to make the
improvements.
I might sell or redevelop my property soon so there is no point in investing in it.
I am happy with my building or space. None of these apply to me.
Other
Respondents selected from any of the following roadblocks:
1.
2.
3.
4.
5.
6.
The most common roadblock experienced is the inability to get approved for loans or
other financing need to make improvements.
Although many respondents reported to experience these roadblocks, an unusually
high percentage (14.5%) also selected Option 5, claiming that "none of these apply."
COMMON THEMES:
Concerns about the impact of surrounding homeless population
Requests for affordable small spaces
Suggestion to invest in loyal employees
31RDA COMMERCIAL ASSISTANCE SURVEY REPORT
I S T H E R E A N Y T H I N G E L S E Y O U 'D L I K E U S T O K N O W A B O U T
Y O U R E X P E R I E N C E O W N I N G , I M P R O V I N G O R M A I N T A I N I N G A
P H Y S I C A L L O C A T I O N F O R Y O U R B U S I N E S S ?
Respondents were able to type comments in an open text box.
Comments can be found in the appendix (pg 35)
32RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Demographics
DEMOGRAPHIC RESULTS
THE HEAT MAP SHOWS LOCATIONS WHERE RESPONSES WERE
RECORDED.
Business Owner Locations
Salt Lake City Boundary
ORGANIZATION'S FOCUS AREA
N E I G H B O R H O O D L O C A T I O N
33RDA COMMERCIAL ASSISTANCE SURVEY REPORT
NON PROFIT DEMOGRAPHICS
0 20 40 60
Northwest Quadrant
Airport
Northwest Community
Westside Community
Capitol Hill
Downtown
City Creek
Avenues
Central Community
East Bench
Sugar House
Not Applicable
0 10 20 30 40 50
Arts/Culture
Education
Healthcare
Mental Health/Crisis Intervention
Housing/Shelter
Environmental Concerns
Recreation/Sport
Agriculture/Food
Animal Welfare or Other Animal-related
Mutual/Membership Benefit
Other
B U S I N E S S T Y P E S
MINORITY IDENTITY
Note: participants could select as many categories that applied
34RDA COMMERCIAL ASSISTANCE SURVEY REPORT
BUSINESS OWNER DEMOGRAPHICS
0 10 20 30 40 50
Retail
Wholesale
Food/Beverage Services
Arts, Entertainment, and Recreation
Manufacturing
Professional, Business and Personal Services
Childcare
Other
Woman
Black
Latinx
Asian American
Pacific Islander
Indigenous
LGBTQ+
Not minority Owned
Other
100
75
50
25
0
Veteran
Comments for "Other":
35RDA COMMERCIAL ASSISTANCE SURVEY REPORT
The low number of Spanish scans and surveys takers, combined with the low number
of business owners self-identifying as Latinx (15) suggests future engagement for this
project should considered gathering more voices from our Latino community.
In addition, future engagement would benefit from connecting with more minority
groups, including refugees who work in both the nonprofit and business sectors.
Appendix
SUGGESTIONS
SURVEY COMMENTS
The following are comments made when participants were asked "Is
there anything else you would like us to know about..." followed by
specifics regarding being an owner or renter within the nonprofit sector
of the business sector. Duplicates have been removed
RENTERS IN THE NONPROFIT SECTOR
We have struggled to make rent during the past few years, and we have very few
options for moving locations because our organization (roller derby) has
minimum clear floor space requirements.
I represent Salt Lake Film Society, Broadway Centre Cinemas- we have a 9M
economic impact, serve 250,000 patrons downtown at night, creating foot traffic
and ancillary spending. Our core concerns are; aging facilities, capital
improvement grants being tied to ownership (we rent), and parking (not the
quantity as much as operations and improvements to the RDA parking structure
at 300 S., and requiring landlord to sell business-hour spots only, allowing
nighttime publics to park on lower levels and after business hours in reserved
spots). I'll fill out a separate form for Tower.
Many SME loans are guaranteed
As a non-profit organization, rent and daily operating expenses must be carefully
calculated.
Hope the service gets better
Hope for a better system
36RDA COMMERCIAL ASSISTANCE SURVEY REPORT
A top priority at 9th and 9th for SLFS is to complete our venue upgrades and
safety improvements (1.5M price, we are fundraising and have 520K raised), and
to preserve 9th and 9th on the South side of the street (Tower, Coffee Garden,
Cahoots). Reopening will return our 40K patrons to the neighborhood, improve
safety dramatically as we are activated at night, lit well, and allow other
businesses to thrive with ancillary spending. Tower has been shuttered since
March 2020. RDA members can call Tori Baker at 801-550-7623 to discuss more
confidential items surrounding our planning and focus on preserving this side of
9th and 9th.This however is technically outside the RDA boundaries for applying
resource, but the historic space must be preserved so the Land owners do not
sell to an Olive Garden and we loose this cultural anchor.
We have a great landlord - Artspace, who should be encouraged to develop more
space for tenants like us. It's much better for smaller organizations and
businesses to focus on their mission, purpose or business than to take on real
estate development, ownership and management in most cases.
no
5
Rental housing space, the layout should be reasonable, use the space skillfully
The operation and results of enterprises need a better publicity platform
We are Utah Arts Alliance and operate 5 cultural facilities in SLC. 1. Last year we
lost our lease to Dreamscapes that was at The Gateway since 2018 when our
location was taken over by a biotech company. We could not find any affordable
location in SLC so we had to move to Sandy. 2. Our headquarters is the SLC Arts
Hub which we lease from the RDA since 2010. We have tried to acquire and
develop the property for those 12 years and have been denied. We currently have
a 6 month extension and are VERY worried about losing this space. It would be
deviating to not only the UAA but to dozens of community and cultural groups,
and hundreds of artists and makers and tens of thousands of community that
rely on the Arts Hub. This facility is crucial to the cultural vibrancy of SLC. 3.
Urban Arts Gallery at the Gateway since 2010 has been named best gallery in
Utah for 7 years in a row is on a month to month lease. 4. Alliance Theater at
Trolley Square is on a month to month lease. 5. Art Castle
There's nothing
The good location is not the right price
I'd like to know about the greening of your organization
If we found a building that matched or was a little bit more than what we are
currently paying, we would be much more happy to own our own space, and are
open to finding a warehouse or building and can make it work for our
organization.
37RDA COMMERCIAL ASSISTANCE SURVEY REPORT
no
There is no
Without the
I hope the government can set up channels of communication
I hope the government will provide financial support
I hope the government will establish a communication channel
It is suggested to improve the navigation system
It is suggested to reasonably plan the development of the park
Suggest talent introduction
Hope more perfect regional planning and talent introduction
Hope to unify the planning area
It is suggested to increase policy support
I don't have anything to share with you about my organization's experience with
owning, improving, or maintaining physical locations
I'm not
Some improvements are needed. The location is superior
I haven't
Temporarily no
At present, our organization is very good and we don't need to improve anything.
If there is any need in the later period, our organization will inform us. We are
also the best and the only one in the region
I haven't thought of
Not yet
A good location puts pressure on me in terms of price
OWNERS IN THE NONPROFIT SECTOR
RENTERS IN THE BUSINESS SECTOR
The road construction on 300 West has ruined my ability to operate like normal.
It's too expensive. It's too expensive
Although the condition of our rented house is poor, it is good to survive.
no
After the transformation of the space, the layout should be reasonable, the
decoration should be beautiful
I hope my rent will not rise in the near future.
The excellent shops in the street are all decorated in a distinctive style
A good location puts pressure on me in terms of price
Good location in terms of price is a lot of pressure on me
38RDA COMMERCIAL ASSISTANCE SURVEY REPORT
Rents/leases are insanely expensive for small business in downtown salt lake
area! Small, locally owned businesses can not afford to stay in business. There
should be leases according to the business profit margins. Like affordable rents
for housing.
Please make it easier to apply for loans & grants and assist women owned
businesses to succeed
When looking into permanent or good signage for our building, it came to our
attention that signage is only granted for the size of the building along the street (
Main Street) our building is much longer than it is wide and as a result, the front
tenant bought their sign and we have just a small amount left over that we are
allowed to utilize. This is very difficult for our business. Additionally, permanent
signs are freaking exspensive!We have not had one in our 8 years of business
because of the expense. If the city wants non-transient looking businesses, then
maybe help with the cost of better signage. Lower permit costs, signage grants.
I have a great landlord that wants to sell us the building. We want to make
improvements to the existing building once the restaurant is up and running.
RDA previously provided funding for street facing facade improvements. Access
to capital funds to continue to make street facing improvements would be
ideal.And of course, I'm concerned about having funds available to purchase the
building and make continuing mortgage payments once the owner is ready to
sell.
I currently was displaced this year for my business. I was lucky enough to find
another space despite it being 2x as much as the previous space in such a short
time. I know others would not have been so fortunate.
The process of moving into and updating a new space in SLC from South Salt Lake
was terrible because of the planning/licensing/permitting process. It's exceedingly
difficult to navigate and understand what is required and in what order. While
much of it is ultimately the responsibility of professional architects and
tradespeople, the business owner needs to be able to clearly understand the
process and requirements in order to know which professionals to hire and hold
them accountable. Additionally the business owner needs to be able to
understand all of this in order to budget for moving into or opening a new space
in Salt Lake. Our budget exploded as gradually more and more requirements
were thrown onto the project that we weren't aware of at the onset. Lastly, the
communication between different departments involved in the process of
permitting, licensing, certificate of occupancy was very poor.
Lots of homeless people using the bathroom or doing other nefarious things
around the building.
39RDA COMMERCIAL ASSISTANCE SURVEY REPORT
The homeless are driving away tenants - Both future and current. We have
Homeless coming into our garage nightly to use drugs, pee, poop whatever.I
cannot control it. I need better fencing and a security gate to manage the flow in
and out of my building. Doing this would save the city thousands in police calls
annually.The city spends too much time chasing the homeless from one part of
the city to the other. These arn't families they are hardened criminals and drug
users or those with severe mental health issues. They need help. It isn't safe.
The City needs more small spaces in unique new buildings and existing buildings
with affordable rents in walkable neighborhoods. The new construction mixed
use buildings don't provide good retail space, either they are too big, too
expensive, lack character, have low ceilings, and are built as an afterthought to
'check a box'. Whether built new or in adapted buildings, small businesses do
better in places that have authenticity and character, because that's where
customers want to go. We can't solve all our problems with huge
megadevelopments, lets give the little guys more of a chance to put their stamp
on the City and create all the interesting nooks and crannies that make people
want to live, work and visit our City.
I might need a location where public transportation is more convenient
The value of a hard working team of loyal employees is worth more than
money.You need to invest in them, treat them great and be generous with them.
They will take care of your customers when you are not there.
Local lifestyle and demand affect the structural configuration of enterprises
no
Without the
Temporarily no
I don't
I'm not
A good location puts pressure on me in terms of price
OWNERS IN THE BUSINESS SECTOR
Adopted 12.14.21
Guiding Framework
This Guiding Framework is a strategic operational document outlining the methodology for evaluating and prioritizing projects requesting RDA financial assistance. The RDA’s
Mission and Values form the foundation of the Guiding Framework, declaring the RDA’s purpose and the intended economic, social, and physical outcomes expected of RDA
projects and partnerships.
MISSION: The Redevelopment Agency of Salt Lake City strengthens neighborhoods and business districts to improve livability, create economic opportunity and
foster authentic, equitable communities, serving as a catalyst for strategic development projects that enhance the City’s housing opportunities,
commercial vitality, public spaces, and environmental sustainability.
VALUES:Economic Opportunity-
We invest in the long-term prosperity and growth
of our local economy.
Equity & Inclusion-
We prioritize people-focused projects and
programs that encourage everyone to
participate in and benefit from development
decisions that shape their communities.
Neighborhood Vibrancy-
We cultivate distinct and livable places that are
contextually sensitive, durable, connected, and
sustainable.
PROJECT EVALUATION PROCESS: The RDA prioritizes projects that demonstrate a commitment to the Mission and Values, evaluating projects via three steps, which answer the
following questions: 1.) Does the project meet the minimum THRESHOLDS required for RDA participation? 2.) To what degree does the project benefit the public by achieving
defined LIVABILITY BENCHMARKS, thereby warranting RDA assistance? 3.) Does the project meet the CRITERIA outlined in existing RDA programs and policies, such as the
RDA Loan Program or Tax Increment Reimbursement Program?
*Spanning a 1-3 year time frame, Project Area Work Plans identify redevelopment objectives and strategic redevelopment projects for each project area, along with a corresponding schedule & budget for each project. The Project Area Work Plans
will be based on relevant City policies and plans and the Project Area Plans that were adopted when the project area was created and will provide direction for the annual RDA budget process.
Step 1:
THRESHOLDS
Alignment with adopted City policies & plans
Alignment with RDA Project Area Work Plans*
Financial viability with a demonstrated and reasonable need for public assistance
Step 2:
LIVABILITY
BENCHMARKS
Economic Opportunity
Leveraging
Timeliness
Return of Investment
Permanent Job Creation & Retention
Affordable Commercial Spaces
Ownership
Equity & Inclusion
Transit Opportunities
Mixed-Income Neighborhoods
Neighborhood Safety
Community Engagement & Support
Housing for Everyone
Displacement Mitigation
Affordable Housing Preservation
Neighborhood Vibrancy
Public Space
Public Art
Architecture & Urban Design
Sustainability
Walkability
Building Preservation, rehabilitation, or
adaptive reuse
Missing Middle & Unique Building Types
Step 3:
PROGRAM
CRITERIA
Evaluation of project according to respective RDA policies, programs and procedures
ATTACHMENT B
ATTACHMENT C
2. LOAN AMOUNT, INTEREST RATE, AND TERMS
2.1 Loan Amount
Standard guidelines for determining maximum loan amounts shall be as follows:
a)Gap Financing: Loan maximums are limited to the demonstrated gap in
available financing to cover project costs, and shall be sized to meet the
lower of a debt coverage ratio (DCR) of 1.1 or a loan to value (LTV) of
95%.
b) Primary Financing: In instances where the RDA is the primary lender, loans
shall be sized to meet the lower of a debt coverage ratio (DCR) of 1.2 or a
loan to value (LTV) of 90%.
2.2 Interest Rate
Standard guidelines for determining interest rates shall be as follows:
a)Base Interest Rate: The base interest rate shall be fixed at 300 basis points
(3%) plus the current United States Treasury Yield Curve Rate, as
determined by the term of the loan, at loan closing.
b) Public Benefit Incentives: A reduction to the base interest rate is available if
the project meets one or more of the following Public Benefit criteria:
Sustainability, Public Amenities, Adaptive Reuse, Historic Preservation,
Permanent Job Creation/Retention, Architecture/Urban Design, Economic
Impact, and Affordable Housing. For each criterion fulfilled, the project
shall receive a 50 basis points (one half of one percent) reduction from the
standard interest rate, with a maximum reduction of 300 basis points.
2.3 Terms
Standard guidelines for determining loan terms shall be as follows:
a)The loan term for development projects shall be up to 5 years. An option to
extend the overall loan term to 10 years may be available through a
preauthorized extension that provides an interest rate increase of 2% at the
5-year extension.
b) The standard amortization period is up to 20 years.
c)Affordable housing development projects may qualify for an amortization
period equal to the length of the affordability restrictions on residential
units, up to 30 years.
d) The maximum loan term for short-term affordable housing land acquisition
loans shall be two years. To ensure that the proposed development is built
as specified, an interest rate increase, retroactive to closing, shall be
imposed at the United States Treasury Yield Curve Rate plus 800 basis
points if the developer does not record the appropriate restriction providing
the specified affordable units.
ATTACHMENT D
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______
Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THE REAL
PROPERTY DISPOSITION POLICY
WHREAS, on October 18, 2016, pursuant to Resolution No. R-36-2016, the Board of
Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Real
Property Disposition Policy (“2016 Policy”), and
WHEREAS, the Board now desires to repeal and replace the 2016 Policy, and
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to
transact the business and exercise the powers provided for in the Utah Community
Reinvestment Agency Act; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to
sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for
project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans,
strategic plans, and Salt Lake City master plans.
WHEREAS, the RDA’s disposition of real property includes the sale of real property or
long-term lease of real property. Such leases of real property for durations greater than
twenty-five years shall be referred to in this policy as “lease agreements.”
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Real Property
Disposition Policy adopted pursuant to Resolution No. R-36-2016 is repealed in its entirety
and replaced with the following:
1. Administration and Approval Process. Unless otherwise designated herein, the
administration and approval process for the disposition of RDA-owned real
property shall be conducted in the following manner:
a.The Board shall be provided reports on the status of all RDA-owned real
properties, including properties actively being disposed of, as according to
the Reporting procedures outlined herewith.
b. As determined by the RDA Executive Director, RDA-owned properties
may be identified as candidates for disposition and authorized to be
disposed of according to the Methods of Disposition contained herewith.
c.If a satisfactory offer is received on an RDA-owned property, and the
disposition terms and conditions are approved by the RDA Executive
R-6-2021
ATTACHMENT E
Director, RDA staff shall dispose of the real property pursuant to the RDA’s
administrative procedures, unless disposition terms are required to be
forwarded to the Board for consideration and approval of the sales / lease
price according to the Disposition Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the
disposition price by a majority vote of the Board real property disposition
shall be arranged pursuant to the RDA’s administrative procedures.
e.The RDA Executive Director may enter into exclusive negotiation, option
to purchase, development agreements and lease agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by
the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be
categorized as either Tier 1 or Tier 2.
a.Tier 1 properties shall be real properties that are RDA-owned and meet at
least one of the following categories:
i.Property is specifically identified in a Salt Lake City adopted master
plan.
ii.Property is a parcel or parcel assemblage that totals two (2) or more
contiguous acres in size.
iii.Property is listed on the local or national register of historic places
as historically significant.
iv. Property is fronting or adjacent to city-owned property, other than a
public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise
included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board
with reports regarding the disposition and status of RDA-owned properties as
follows:
a.The RDA shall provide a written briefing to the Board, no less than semi-
annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2
properties. Such briefing shall also include an address and description of
each property, including the approximate size and zoning; description of
significant structures or improvements on the site; description of any
interim uses occurring on the site; disposition status; and timeframe for
potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be
provided at one of the Agency’s public meetings at the following stages of
the disposition process:
i.Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an
update to the Board as to the property’s reuse plan, method of
disposition, timeline of disposition, and other information relevant
to the disposition of the property.
ii.Developer / lessee Selection
RDA staff shall provide an update to the Board when a purchaser or
lessee has been selected with which to negotiate terms of the
disposition.
iii.Development Agreement / Lease Agreement
RDA staff shall provide an update to the Board when the RDA has
entered into a real estate purchase agreement or lease agreement
with the selected purchaser / lessee.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide
by all applicable laws and be conducted in a competitive and transparent manner as
deemed appropriate and effective. Further, disposition methods shall support the
RDA and Salt Lake City objectives as outlined in master plans, project area plans,
and other adopted policies. Disposition of property shall be consistent with the
RDA’s Housing Policy to determine if the inclusion of affordable housing is
required. All RDA-owned properties being disposed of shall be subject to a
development agreement, if being sold, a lease agreement, if being leased, or other
mechanism to ensure compliance with the intended reuse plan for the property.
Unless otherwise specified herein, RDA-owned properties shall be disposed of
through the use of the following methods:
a.Competitively Marketed
The RDA shall competitively market properties to create open and transparent
exposure to the marketplace. Methods to competitively market properties are
available for any RDA-owned property and include the following:
i.Request for qualifications (RFQ): to competitively market the
property through a time-limited qualifications-based selection
process.
ii.Request for proposals (RFP): to competitively market the property
through a time-limited project-based selection process.
iii.Market property on an open-ended basis: to competitively market
the property through a listing with a property broker or other
marketing channels.
b. Exclusively Negotiated
An exclusively negotiated disposition may be deemed appropriate and effective
at a sales or lease price as determined by the Disposition Price Protocol of this
policy, except as detailed in 5(b)(ii), and if at least one of the following criteria
is met:
i.The property is landlocked.
ii.Disposition to an adjacent property owner to facilitate
redevelopment objectives as defined in a project area strategic plan.
If the property being disposed of is a Tier 1 property, the price shall
be at least 90% of the fair market value as determined by the
Disposition Price Protocol.
iii.Disposition to a non-profit or governmental agency for a community
development or public use.
iv. Disposition of property that has been competitively offered with no
competitive responses received.
v. Disposition of property that has previously been used as a public
right of way that is no longer required for such purpose.
vi. If the property is being sold, the exchange of property to facilitate
redevelopment objectives as defined in a project area strategic plan.
6. Disposition Price Protocol. Unless otherwise specified herein, RDA shall dispose
of real property under the most advantageous terms that are appropriate for the
circumstances, and shall abide to the methodology outlined herein as follows:
a.The sales or lease price of the property shall be fair market value as determined
by an RDA-commissioned appraisal that is based on an as-is appraisal premise.
No Board approval shall be required for disposition at appraised fair market
value.
b. The sales or lease price may be discounted below fair market value to support
the implementation of project area strategic plans.
i.Property discounts shall be determined by a financial analysis of the
project, including a gap analysis that demonstrates the property
discount is necessary for the project to succeed. Market conditions,
economic trends, and public benefits relating to affordable housing
and economic development shall be considered when determining
property discounts.
ii.Property discounts are subject to approval by a majority vote of the
Board if property is to be sold or leased at a discount greater than
10% from appraised fair market value.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of ___, 2021.
Ana Valdemoros, Chairperson
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
Approved as to form:
Salt Lake City Attorney’s Office
Allison Parks
Attest:
City Recorder
23 Mar.
Ana Valdemoros (May 17, 2021 13:35 MDT)
Erin Mendenhall (May 17, 2021 15:01 MDT)
4
Cindy Trishman (May 17, 2021 16:20 MDT)
05/17/2021