Council Provided Information - 3/29/2024
MAYOR ERIN MENDENHALL
Executive Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
DANNY WALZ
Director
STAFF MEMO
DATE: March 29, 2024
PREPARED BY: Erin Cunningham, Financial Analyst
RE: RDA Budget Amendment #3, FY 2023-2024
REQUESTED ACTION: Discussion and approval of Budget Amendment #3
BUDGET IMPACTS: The Third Amendment will not affect the Agency's overall budget total. Its
purpose is to reallocate multiple program appropriations to fund a $4,250,000 property acquisition in the
North Temple project area.
EXECUTIVE SUMMARY: This amendment proposes using the existing $1,721,227 in the Strategic
Intervention program within the North Temple and Program Income Funds. In addition, Staff
recommends the reallocation of $1,925,329 from the Commercial Assistance Reserves program and
$603,444 from the Housing Property Acquisition program to the Strategic Intervention program, also in
the North Temple and Program Income funds. In total, $4,250,000 would be appropriated in the Strategic
Intervention program between these two funds and allocated to a new property acquisition project.
ANALYSIS & ISSUES:
Project Description: Whipple Property Acquisition
The Agency is interested in purchasing approximately 0.53 acres of property located at 961-965 West
Folsom Avenue, 47 South 1000 West, and 51 South 1000 West in Salt Lake City. The property is located
within the Agency's designated North Temple Project Area and is directly adjacent to the Folsom
Corridor, where UTA and Salt Lake City recently completed construction of a multi-use trail. The
Agency’s acquisition of this property presents an opportunity to facilitate community-serving
redevelopment projects along the Folsom Trail that preserve existing small-scale commercial spaces and
adaptively reuse the existing structure to create space for local, independent businesses.
Funding of the Project
When acquiring property, the Agency strives to use Housing, Commercial, or Infrastructure Property
Acquisition programs to keep track of how its funds have been used. However, when the end use of the
property has not been determined at the time of the acquisition, the Strategic Intervention program is
used. This program’s approved uses include property acquisition, site development costs, and community
SALT LAKE CITY CORPORATION
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benefits. Since the use of this property acquisition has not been determined yet, Staff recommends
utilizing Strategic Intervention program for this project.
Existing Strategic Intervention Funds
The table below outlines the current appropriations within the Strategic Intervention program, specifically
in the North Temple and Program Income funds. While no changes to the appropriations are necessary,
the Agency is requesting to allocate the full $1,721,227 to this project.
Fund Program Appropriation Project
Current
Budget Change
Proposed
Budget
North
Temple
Strategic
Intervention
RDA-FY23-
NT-Strategic
Intervention- NT
{Capital Reserves
Program - Holding
Account}
1,397,327
0
1,397,327
RDA-FY24-
NT-Strategic
Intervention- NT
{Capital Reserves
Program - Holding
Account}
285,490
0
285,490
Program
Income
Fund
Strategic
Intervention
RDA-FY23-
PIF-Strategic
Intervention-
NT
{Capital Reserves
Program - Holding
Account}
38,410
0
38,410
Total 1,721,227 0 1,721,227
Reallocation of Commercial Assistance Funds to the Strategic Intervention Program
The Agency has been restructuring its Commercial Assistance programs and the Board has approved the
following appropriations in the North Temple and Program Income funds to a Commercial Assistance
Reserves program. As the Commercial Assistance program is being finalized, these funds have not yet
been allocated to any projects. The proposal involves using $1,925,329 from these appropriations for this
project, leaving $217,318 remaining in the North Temple appropriation.
Fund Program Appropriation Project
Current
Budget Change
Proposed
Budget
North
Temple
Commercial
Assistance
Reserves
RDA-FY24-
NT-
Commercial
Assistance Reserves-NT
{Capital Reserves
Program - Holding
Account}
543,277
(325,959)
217,318
Program
Income
Fund
Commercial
Assistance
Reserves
RDA-FY23-
PIF-
Commercial
Assistance Reserves-NPA
{Capital Reserves
Program - Holding
Account}
1,599,370
(1,599,370)
0
Total 2,142,647 (1,925,329) 217,318
Reallocation of Housing Property Acquisition Funds / 9-Line Property Acquisition
With the Fiscal Year 2022-2023 Budget Amendment #3, the Board approved a property acquisition in the
9-Line project area, using $4,000,000 transferred from the City’s General Fund to the Agency’s Program
Income Fund in the Housing Property Acquisition Program. This acquisition is happening in phases
consisting of three separate assemblages. The first assemblage has been acquired and the third phase is
still being negotiated. The second phase negotiations have been completed at a lower price than
anticipated, and $603,444 remains from what was originally estimated. This amendment proposes
reappropriating the remaining amount to the Strategic Intervention program within the same fund..
Fund Program Appropriation Project
Current
Budget Change
Proposed
Budget
Program Housing RDA-FY23-PIF- PRJ-000011 RDA
Income Property Housing Property - 400 S/900W 4,000,000 (603,444) 3,396,556
Fund Acquisition Acquisition-9L Acquisition
New Project Appropriations
The proposed amendment aims to consolidate a project budget of $4,250,000 by allocating the available
Strategic Intervention program funds, along with reallocating funds from both the Commercial Assistance
Reserves and the Housing Property Acquisition appropriations to the Strategic Intervention program.
These reallocations will occur within the North Temple and Program Income funds and would result in
the following appropriations.
Fund
Program
Appropriation
Project
Current
Budget
Change
Proposed
Budget
North
Temple
Strategic
Intervention
RDA-FY23-NT-
Strategic
Intervention-NT
New Project:
Whipple Property
Acquisition
1,397,327
0
1,397,327
RDA-FY24-NT-
Strategic
Intervention-NT
New Project:
Whipple Property
Acquisition
285,490
325,959
611,449
Program
Income
Fund
Strategic
Intervention
RDA-FY23-PIF-
Strategic
Intervention-NPA
New Project:
Whipple Property Acquisition
0
2,202,814
2,202,814
RDA-FY23-PIF-
Strategic
Intervention-NT
New Project:
Whipple Property Acquisition
38,410
0
38,410
Total 1,721,227 2,528,773 4,250,000
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2023-2024 Budget.
2. Approval of the Fiscal Year 2023-2024 Budget Amendment #1.
ATTACHMENTS:
1. Supplemental Slides.
REDEVELOPMENT AGENCY
F I S C A L Y E A R 2 0 2 3 - 2 0 2 4
B U D G E T A M E N D M E N T # 3
Commercial Assistance Reserves: $1,925,329
RDA-FY24-NT-Commercial Assistance Reserves-NT: $325,959
RDA-FY23-PIF-Commercial Assistance Reserves-NPA: $1,599,370
Strategic Intervention: $4,250,000
RDA-FY23-NT-Strategic Intervention-NT: $1,397,327
RDA-FY24-NT-Strategic Intervention-NT: $611,449
RDA-FY23-PIF-Strategic Intervention-NPA: $2,202,814
RDA-FY23-PIF-Strategic Intervention-NT: $38,410
North Temple Fund
New Project:
Whipple Property Acquisition
Legend:
New Project Appropriations
Strategic Intervention: $1,721,227
RDA-FY23-NT-Strategic Intervention-NT: $1,397,327
RDA-FY24-NT-Strategic Intervention-NT: $285,490
RDA-FY23-PIF-Strategic Intervention-NT: $38,410
Housing Property Acquisition: $ 603,444
RDA-FY23-PIF-Housing Property Acquisition-9L
Project: PRJ-000011 RDA - 400 S/900W Acquisition: $603,444
$2,528,773 shifts from Commercial Assistance Reserves and Housing Property Acquisition to Strategic Intervention
Project Program Fund Appropriation
Current
Budget Change
Proposed
Budget
Available to allocate to
projects
Commercial
Assistance Reserves North Temple
RDA-FY24-NT-Commercial Assistance Reserves-
NT 543,277 (325,959) 217,318
Program Income Fund
RDA-FY23-PIF-Commercial Assistance Reserves-
NPA 1,599,370 (1,599,370) 0
Available to allocate to projects Total 2,142,647 (1,925,329) 217,318
PRJ-000011 RDA - 400
S/900W Acquisition
Housing Property
Acquisition Program Income Fund RDA-FY23-PIF-Housing Property Acquisition-9L 4,000,000 (603,444) 3,396,556
PRJ-000011 RDA - 400 S/900W Acquisition Total 4,000,000 (603,444) 3,396,556
Total 6,142,647 (2,528,773) 3,613,874
$4,250,000 New and Existing Strategic Intervention Program allocated to New Project: Whipple Property Acquisition
Project Program Fund Appropriation
Current
Budget Change
Proposed
Budget
New Project: Whipple
Property Acquisition Strategic Intervention North Temple RDA-FY23-NT-Strategic Intervention-NT 0 1,397,327 1,397,327
RDA-FY24-NT-Strategic Intervention-NT 0 611,449 611,449
Program Income Fund RDA-FY23-PIF-Strategic Intervention-9L 0 603,444 603,444
RDA-FY23-PIF-Strategic Intervention-NPA 0 1,599,370 1,599,370
RDA-FY23-PIF-Strategic Intervention-NT 0 38,410 38,410
New Project: Whipple Property Acquisition Total 0 4,250,000 4,250,000
Total 0 4,250,000 4,250,000
Appropriation Changes Impact
Appropriation
Cost Center Fiscal Year Fund Program Region
Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments,
projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags:
Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center.
Fiscal Year: The original year the funds were appropriated.
Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and
compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be
monitored.
Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal,
policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing,
Commercial, Infrastructure, and Operations programs.
Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which
means this Worktag may not always be used.
Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix.
Workday Worktags & the RDA Budget
Operations Appropriations
Annual appropriations for operational
expenses. Considered approved to
spend when appropriated. If not spent
or encumbered by the end of the fiscal
year, drops to fund balance. Typically,
these would be for RDA operating
expenses. Occasionally may be
associated with a project budget (for
example, an office remodel).
Capital Reserves Appropriations
Appropriations for programs that carry
forward each year. For instance, in the
Housing Development Loan Program, a
set amount is allocated for loans. Staff
will request additional Board approval
to use these funds for specific loan
projects. Funds not awarded to projects
roll forward to the next year, unless
reappropriated by the Board.
Each appropriation supports either the operations of the Agency or projects associated with its various programs.
Appropriations & Project Budgets
Project Area Funds
Must be used within the boundaries of the project area, except for
money transferred to Primary Housing (legally required),
Secondary Housing (supplemental), Agency Operations (defined
by interlocal agreements), or other legally obligated reasons.
• Central Business District (CBD)
• Block 70 (B70)
• Depot District (DD)
• Granary District (GD)
• North Temple (NT)
• North Temple Viaduct (NTV)
• Stadler Rail (SR)
• Northwest Quadrant (NWQ)
• State Street (SS)
• 9 Line (9L)
• Block 67 North (B67N)
• West Capitol Hill (WCH)
Note: Region acronyms are the same as project area acronyms. If
there is “NPA” noted in an appropriation, it stands for “Non-Project
Area.”
Housing Funds
May be used anywhere in the City, unless otherwise directed by the
Board, except for the WCI, which must be used west of I-15.
• Primary Housing (1H)
• Secondary Housing (2H)
• Housing Development Fund (HDF)
• West Side Community Initiative (WCI)
Multi-Use Funds
Can be used across project areas (and potentially city-wide),
unless otherwise directed by the Board.
• Program Income Fund (PIF)
• Revolving Loan Fund (RLF)
Agency Operations Fund (OPS)
• Received transfers in from other funds to fund the Agency’s
operational expenses.
Redevelopment Agency Funds
Fiscal Year 2023-24 RDA Budget Amendment #3
Administration Proposed Board Approved
Initiative Number/Name Project Area
Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time
FTEs
Section A: New Items
Section B: Grants for Existing Staff Resources
Section C: Grants for New Staff Resources
Section D: Housekeeping
1 RDA: Reallocate Multiple Program Appropriations to Commercial Assist
Fund Property Acquisition in the N Temple Project Area Reserves
1 RDA: Reallocate Multiple Program Appropriations to PIF Housing Prop
Fund Property Acquisition in the N Temple Project Area Acquisition
1 RDA: Reallocate Multiple Program Appropriations to N. Temple Strategic
Fund Property Acquisition in the N Temple Project Area Intervention
-
-
-
(1,925,329.00)
(603,444.00)
2,528,773.00
One-time
One-time
One-time
-
-
-
Section E: Grants Requiring No New Staff Resources
Section F: Donations
-
Section G: Board Consent Agenda -- Grant Awards
Section I: Board Added Items
Total of Budget Amendment Items - 0.00 - -
Total by Fund, Budget Amendment #3:
Redevelopment Agency Commercial Assist - (1,925,329.00)
Reserves
Redevelopment Agency PIF Housing Prop - (603,444.00)
Acquisition
Redevelopment Agency N Temple Strategic - 2,528,773.00
Intervention
Total of Budget Amendment Items - - - - -
1
Contingent Appropriation and Notes
Fiscal Year 2023-24 RDA Budget Amendment #3
Administration Proposed Board Approved
Initiative Number/Name
Project Area
Revenue Amount
Expenditure
Amount
Revenue
Amount
Expenditure
Amount
Ongoing or One-
time
FTEs
Current Year Budget Summary, provided for information only
FY 2023-24 Budget, Including Budget Amendments
Total Revenue RDA BA #1 Total RDA BA #2 Total RDA BA #3 Total Total To-Date
Redevelopment Agency 80,803,841 (6,476,014) - - 74,327,827
Total of Budget Amendment Items 80,803,841 (6,476,014) - - 74,327,827
Total Expense RDA BA #1 Total RDA BA #2 Total RDA BA #3 Total Total To-Date
Redevelopment Agency 80,803,841 (6,476,014) - - 74,327,827
Total of Budget Amendment Items 80,803,841 (6,476,014) - - 74,327,827
Certification
Budget Manager
Deputy Director, City Council/RDA Board
2