Council Provided Information - 7/9/2024USA Climbing at
Rio Grande
RDA Board of Directors
July 9, 2024
Requested Action
Approval of the resolution and proposed ground lease terms with USA Climbing to facilitate
the construction of the organization’s permanent headquarters and national training facility
in the Rio Grande District.
Next Steps
Execute Exclusive Negotiation Agreement (ENA) to memorialize
commitments.
USAC to refine design and launch capital funding campaign to support
construction costs.
Coordinate on design and construction of District-wide public
improvements.
When all conditions have been met, execute ground lease and
development agreements.
USA Climbing
Headquarters &
National Training Center
Provide competitive athletes with the terrain, spaces, and support they need to achieve
their best.
Host large-scale climbing events such as National Championships, World Cups, and
World Championships, with spectator counts up to 1,500 indoors and 5,000 outdoors.
Serve as a resource to provide indoor climbing access to the entire community, including
underserved populations.
Serve as the headquarters of the USA Climbing organization.
Provide true accessibility for all as a principal aspect of the design.
USA Climbing Project Goals:
A Catalytic Activation
Opportunity to have something tangible happening while
V&I Plan is finalized and other developers secured.
Exciting use that could help attract developers/tenants
for other sites.
May spur other South Block landowners to
make plans for their properties.
Would lend the Rio Grande District an identity and
focus that aligns with natural/cultural context of SLC.
Would attract visitors to district during off-
peak hours (early mornings and evenings).
6 - 10 large multi-day events planned to be held
per year.
Would bring awareness to SLC as a world-class
climbing destination.
Site & Project Details
Located at southwest corner of 500 W/300 S
New structure: 65-75 feet tall;
approx. 45,000 sf footprint
Adaptive reuse of SL Mattress Co. Building
Outdoor plaza that can be utilized for USAC-
hosted competitions and other public events
Lease Area
To include:
Building footprints (including SL Mattress)
and setback areas between buildings
and adjacent ROWs (~1.12 acres)
Outdoor plaza (~0.6 acres)
= ~1.72 acres
*Plaza area to be leased at no cost
Lease Rate
Fee simple Fair Market Value of Lease Area x 5%
Annual Lease Rate to be escalated every 5 years, based on
previous 5 years’ average consumer price index (CPI)
Minimum escalation of 2% and maximum of 5%
YR 1: $7,289,295 x 5% = $364,465/year
Requested Lease Abatement
Years 1-6: No lease payments made during construction/stabilization
Year 7: 45% of Escalated Annual Lease Rate due
Year 8: 50% of Escalated Annual Lease Rate due
Year 9: 55% of Escalated Annual Lease Rate due
Years 10-99: 60% of Escalated Annual Lease Rate due
YR 10: $379,043.37 * 60% = $227,426.02
Common Area Maintenance (CAM) fees to be collected from all Rio Grande
District lessees.
USA Climbing CAM fee = $1.50/sf of gross floor area
To be charged with same levels of escalation/abatement as the annual lease
rate.
Common Area Maintenance (CAM) Fees
FINANCIAL USES IMPLEMENTATION RDA CONTRIBUTION
Adaptive Reuse of SL Mattress
Co. Building USAC will fund and construct, with RDA contribution.$6 million
Outdoor Plaza
- USAC will fund and construct, with RDA contribution.
-USAC will manage future plaza.
-RDA will maintain future plaza, utilizing CAM fees.
$1 million
Demolition USAC will fund and implement demolition, with RDA contribution.$120,000
Environmental Remediation USAC will fund and implement remediation, with RDA contribution.~$200,000*
TOTAL DIRECT CONTRIBUTION TO USAC PROJECT:~$7,320,000
Relocation of State Warehouse
Users & Art Collection
RDA to work with State of Utah to find temporary location until permanent
facility at Capitol is completed (currently under construction).~523,000*
Shared Parking Structure RDA exploring feasibility of financing/developing structure. USAC will
lease future parking allocation from RDA.~$31 million*
TOTAL OUTSIDE COSTS:~$31,523,000
Associated Budget Impacts
*Cost estimates
Additional Community Benefits
Rehab and activation of SL Mattress Co. Building
Design, construction, management of outdoor plaza
5-year community benefits plan with progress reports to RDA BOD, to include:
youth programming through partnerships with K-12 schools,
workforce development opportunities,
efforts to expose non-traditional community members to sport based on income or
other key measures, and
transportation demand management strategies to reduce auto dependency and
encourage use of alternative modes of transportation.
Salt Lake Mattress Co. Building
Former State-owned warehouse at 500 West/300 South
Proposed Location of Shared Parking Structure & Interim Parking