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:
Disposition Update for RDA-Owned Property at 167-169 Regent Street
Additional Staff Contact:
Marcus Lee marcus.lee@slc.govCara Lindsley cara.lindsley@slc.gov
Presenters/Staff Table
Document Type *
Written Briefing
Budget Impact *
Yes
No
Budget Impact:
Recommendation:*
None
Background/Discussion
This memorandum provides a written briefing on disposition plans for a collection of three (3) parcels totaling .13 acres of Tier 2 property located at 167-169 S. Regent Street in the Central Business District and Block 70 Project Areas.
Will the RDA Board need to hold a public hearing for this item?*
Yes
No
Public Process
Mayor's Comments
Attachment(s)
BOD Written Briefing Regent St Final 7.26.24.pdf 448.86KB
08/09/2024
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
REDEVELOPMENT AGENCY STAFF MEMO
DATE: July 26, 2024
PREPARED BY: Marcus Lee, Project Coordinator
Cara Lindsley, Deputy Director
RE: Disposition Update for RDA-owned Property at 167-169 S. Regent Street
REQUESTED ACTION: Written Briefing
POLICY ITEM: Property disposition
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: This memorandum provides a written briefing on disposition plans for a
collection of three (3) parcels totaling .13 acres of Tier 2 property located at 167-169 S. Regent Street in
the Central Business District and Block 70 Project Areas.
ANALYSIS & ISSUES:
Dakota Pacific Real Estate owns parcels to the north and south of RDA-owned property (165 S. Regent
Street and 45 E. 200 South, respectively) and previously had an Option to Purchase Agreement
(“Option”) for the adjacent RDA owned parcels (167-169 S. Regent Street). The locations of the parcels
are shown in Attachment A. With the expiration of the Option, Dakota Pacific has decided to market their
property rather than continue with development.
CW Urban is pursuing acquisition of the Dakota Pacific properties and is interested in executing a new
Option for the RDA parcels. RDA staff have been working with CW Urban since May 2024 regarding
redevelopment of the site, as the RDA’s three parcels are adjacent to the property CW Urban is interested
in acquiring, and assembling the properties would significantly improve the site’s developability.
Pursuant to RDA Resolution R-6-2021 Section 5(b)(ii), the RDA can exclusively negotiate with adjacent
property owners to facilitate redevelopment objectives, which in this case include diversifying downtown
housing stock with new construction, for-sale condominiums; developing homeownership opportunities;
supporting an active street environment on Regent Street and near the Eccles Theater; and increasing the
vibrancy and economic health of downtown Salt Lake City.
Property’s Reuse Plan:
CW Urban has proposed to develop a 16-17 story condominium residential tower with an activated
ground floor retail space, associated off-street parking, and for-sale residential units on the site that
includes the RDA owned properties and the properties CW Urban will acquire from Dakota Pacific. In
consideration of the redevelopment goals for the property, the sale of the property would be conditioned
on the recordation of a restrictive use agreement prior to closing that includes the following requirements:
• The majority of the building must be residential uses and all residential units shall be individually
platted and sold as condominium units. A minimum of 50% of the total units must be owner-
occupied and all units may not be offered as short-term rentals (i.e., under 30 consecutive days).
The units shall be maintained as for-sale condominiums in perpetuity, and a single owner shall
not own more than five units at one time;
• Developer agrees that the future development of the property must comply with the minimum
required building height of 100 feet in the D-1 zoning district, per the Salt Lake City Zoning
Ordinance. Developer shall not seek an exception to this requirement;
• The ground floor spaces on 200 South and/or Regent Street must be occupied by pedestrian-
oriented uses, which may include a residential lobby area, and must also include sales-tax
generating retail uses, or other publicly accessible neighborhood-serving uses. There shall be no
trash collection or other back-of-house activities on the site’s 200 South and/or Regent Street
frontage, and;
• Developer may request the removal of the for-sale and 50% owner occupied requirements in
exchange for the payment of a $3,000,000 fee, which would be made to RDA and placed into a
fund that supports affordable housing development in Salt Lake
City.
Method of Disposition and Disposition Price:
The RDA is exclusively negotiating with CW Urban, an adjacent property owner, to sell the RDA’s
property for the fair market value (FMV) of $1,130,000 to facilitate redevelopment objectives for the
CBD Project Area. This purchase price is based on a recent appraisal; the RDA will require an updated
appraisal if CW Urban requests an extension of the Option past the one-year term of the agreement. The
RDA will not close on this disposition until CW Urban has acquired the necessary financing and permits
required to move forward with the project.
Estimated Timeline of Disposition:
The RDA estimates the schedule of disposition for the Property will be as follows:
• Execute Option to Purchase Agreement with CW Urban: August 2024
• CW Urban’s Anticipated Closing on Dakota Pacific Parcels: September 2024
• CW Urban’s Anticipated Closing on RDA Parcels/Option Expiration Date: September10, 2025
Other Information Relevant to Disposition of the Property:
The current value of the land at FMV is $195.30 per square foot. The RDA has negotiated a term in the
Option that would allow CW Urban to request the removal of the for-sale and owner-occupancy
requirements in exchange for a $3,000,000 payment to the RDA, which would go towards an affordable
housing fund of the RDA’s choosing. With the current FMV of $1,130,000, the $3,000,000 waiver fee
would raise the price of the land to $713.79/square foot.
PREVIOUS BOARD ACTION:
• 2013: Purchase of the 167-169 South Regent Street property as part of the assemblage to support
construction of the Eccles Theater.
• January 2015: Approval of Regent Street Urban Design Guidelines
• June 2015: Approval of Term Sheet for the Option to Purchase Agreement with Form
Development for the 167-169 Regent Street property, that also included provisions under which
the RDA could acquire the 200 South Property.
• August 2015: Approval of modification to Terms of the Option to Purchase Agreement with
Form Development for the167-169 Regent Street property, authorizing the allocation of funding
for the purchase of the property located at 45 East 200 South.
ATTACHMENT:
A. Site Location and Property Ownership
RDA: 165-167 S. Regent St.
Dakota Pacific with CW Urban Option:
165 S. Regent St., 45 E. 200 South
Attachment A
Site Location and
Property Ownership
Property Ownership
200 South
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