09 of 2024 - Tax Increment Reimbursement Agreement Northwest Quadrant10
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO.
NWQ LLC Phases II & III Tax Increment Reimbursement Agreement
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING A TAX INCREMENT REIMBURSEMENT
AGREEMENT WITH NWQ LLC FOR ITS PHASES II & III OF DEVELOPMENT.
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.
WHEREAS, pursuant to RDA Resolution 1-2018 and Salt Lake City (City) Ordinance 1-
2018, the RDA and City adopted the Northwest Quadrant Community Reinvestment Area Plan
Project Area).
WHEREAS, the RDA and City entered into an interlocal agreement authorizing use of
75% of the City’s tax increment (Project Area Increment) to support the implementation of the
Project Area plan.
WHEREAS, the RDA entered into a Master Development and Reimbursement Agreement
with NWQ LLC (Developer) that specifies up to 70% of Project Area Increment generated from
Developer’s respective property shall be available for reimbursement pending the execution of a
tax increment reimbursement agreement (Agreement).
WHEREAS, pursuant to RDA Resolution 26-2018, the RDA has established a tax
increment reimbursement policy for the Northwest Quadrant Community Reinvestment Area
NWQ TI Policy) that establishes the policies and procedures for entering into an Agreement with
Developer.
WHEREAS, pursuant to the NWQ TI Policy, Developer entered into an Agreement with
the RDA on May 12, 2020 for phase I of their development.
WHEREAS, for phases II and III of their development, Developer intends to develop an
additional 950.56 acres within the Project Area (Property) for the purpose of constructing an
industrial development that can accommodate manufacturing, warehouse, and distribution tenants of
varying size (Project-Specific Improvements).
WHEREAS, Developer also intends to develop the Property with utility and street
infrastructure that will facilitate the development of the larger Project Area (Systemwide
Improvements).
WHEREAS, Developer’s development of the Project-Specific Improvements and
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Systemwide Improvements will contribute to achieving the goals, policies, and purposes of the
Project Area plan.
WHEREAS, to facilitate Developer’s development of the Project-Specific Improvements
and Systemwide Improvements, the RDA is willing to provide a reimbursement of Project Area
Increment from the Property to Developer in the maximum amount of $49,562,855.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the term sheet for the tax
increment reimbursement agreement between the RDA and Developer, attached as Exhibit A, is
hereby approved. The Board finds that the proposed development will contribute to achieving the
goals, policies, and purposes of the Northwest Quadrant Project Area plan. The Board hereby
authorizes the Executive Director to negotiate and execute a tax increment reimbursement
agreement with NWQ LLC consistent with the term sheet. The documents shall also incorporate
such other terms as recommended by the Salt Lake City Attorney’s Office.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of , 2024
Alejandro Puy, Chair
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
11th June
Allison Parks (Jun 13, 2024 14:00 MDT)
Jul 10, 2024
rin M n n#all (Jul 11, 2024 1ч:24 MDT)
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EXHIBIT A TO RESOLUTION
Term Sheet for Tax Increment Reimbursement Agreement between
RDA and NWQ LLC for Phases II & III.
Property:
Tax increment shall be reimbursed from Developer’s Phase II & III development, which is more
particularly described in Exhibit 1 to this term sheet (the Property).
Reimbursable Improvements:
The RDA will agree to provide an annual reimbursement to Developer for certain improvements that
have been identified as eligible for reimbursement. The annual reimbursement may be applied to any
of the listed improvements as long as the conditions to payment are met. Reimbursable Improvements
are as follows:
Type Improvement Description of Costs Amount
Rail Plat A
Subdivision
Roadway
Improvements
Road construction of 400 North from
8000 West to 7400 West and 7400
West from 700 North to 400 North.
These roads shall be dedicated public
roads when complete.$3,826,355
700 North Extension
to 8000 West
Road widening with swale (storm
drain) and sidewalk improvements to
8000 West from 6715 West.$5,340,896
700 North Extension
past 8000 West
Total construction and buildout of the
road from 8000 West (Where the road
currently ends) that will be constructed
to 8780 West.$12,847,992
Lift Station 1
Infrastructure required by Salt Lake
City Public Utilities for sanitary sewer
service for the area.$242,176
Gas Regulator
Station Land
Dedication
Land for Dominion Energy regulator
station which provides necessary
infrastructure for natural gas service
from a high-pressure gas line to an end
user.$1,355,987
I-80 Frontage Road
Canal
Frontage storm drain canal that
parallels the North Temple frontage
Road that will run up to 8780 West
from 8000 West. Roughly 5,070 linear
feet of improvements.$900,000
8090 West, 8260 West, 8430 West
roads that run from 700 North to 1400
Land Dedication for North.
Roads in Phase III 8600 West road that runs from 800
North to 1400 North.
1000 North and 1200 North roads that
run from 8000 West to 8780 West.$20,948,555
Storm Water
Filtration System
Systemwide
Improvements
Improvements on all existing storm
drain infrastructure and dedicated
public roads within the NWQ Project
Area: 700 North, 1000 North, 6550 $2,711,974
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West, 6715 West, 6880 West, 7400
West, 400 North, 8090 West, 8260
West, 8430 West, 8600 West, 8000
West.
Imported Fill
Building
Foundations
Required imported fill due to the
present risk of liquefaction and poor
soils.$30,056,585
20 Mil Vapor Barrier
Vapor barrier to be installed under each
building footprint to mitigate the risk of
environmental vapor intrusion
pathways that arise from the former
North Temple landfill site.$38,644,180
Soft Spot Repair Imported cobble, rock, and fill required
to fix and remediate poor soils.$2,236,724
Insulated Sandwich
Panels
Cost differential between standard tilt-
up panels and high-insulating sandwich
panels to promote sustainable
development.$34,350,382
Solar Panels
Project-specific
Improvements
Phases II & III)
Photovoltaic Systems that will be
placed upon building rooftops that
generate electricity and help remove
carbon footprint.$134,821,393
NOTE: A cost escalator of 10% per line item may be applied to address inflation or market
increases as improvements are developed over time.
RDA Participation:
The RDA will agree to reimburse the Developer 70% of the annual tax increment the RDA is entitled
to receive from the Property, subject to the terms of the Reimbursement Agreement, for a term of 20
years or the sum of the remaining collection years of the Project Area, whichever is less. The first
annual payment shall be due in 2024 for the 2023 tax year.
Maximum Reimbursement:
The maximum amount available for reimbursement shall be $49,562,855 (Maximum
Reimbursement). The actual tax increment payment made to Developer may be lower or higher than
the projected amount based on actual increment generated from the Property, provided, however, that
the maximum total amount of the reimbursement shall not exceed the Maximum Reimbursement. In
the event that tax increment revenue the RDA is entitled to receive from the NWQ Project Area
exceeds the Maximum Reimbursement, Developer may request an increase in the Maximum
Reimbursement, which the RDA Board may authorize in its sole discretion.
Conditions to Payment:
The RDA will provide an annual payment for the Reimbursable Improvements once the following
information is satisfactorily provided:
1. A description and/or depiction of the Reimbursable Improvements for which Developer is
seeking reimbursement for that year.
2. Demonstration that the Reimbursable Improvements for which Developer is seeking
reimbursement for that year have been completed and paid in full.
3. A list of tax parcels comprising the area to be served by the Reimbursable Improvement
Improvement Area), including owners and parcel numbers.
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4. A map or drawing clearly identifying the boundaries of the Improvement Area, including the
location of the Reimbursable Improvements.
5. The total actual cost of the Reimbursable Improvements paid by Developer, with executed
construction contracts, supporting invoices, proof of payment, or other written documentation
acceptable to the RDA.
6. Any other sources of revenue and/or financing used to pay for the Reimbursable Improvements,
including but not limited to grants or loans from other governmental entities, impact fee
reimbursements, additional tax increment sources, or reimbursements from pioneering
agreements (Other Reimbursements).
7. Evidence reasonably acceptable to RDA that no mechanic’s and materialmen’s liens, or other
financial encumbrances related to payment to contractors for the Reimbursable
Improvements have been or will be recorded against the Property.
8. Evidence reasonably acceptable to RDA that no material or adverse changes have occurred in
the finances, business, operations, or affairs of Developer.
9. The construction of the Reimbursable Improvements shall be in compliance with all laws and
regulations.
10. Developer shall maintain the Reimbursable Improvements RDA provided reimbursements
for during the term of the Reimbursement Agreement, unless ownership is transferred to the
City.
Transfer of Property:
Developer reserves the right to all payments and reimbursements for Reimbursable Improvements
even if Developer sells any portion of the Property to a third-party. Any assignment of the right to
receive payments and reimbursements under the Reimbursement Agreement must be in writing,
signed by Developer and approved by RDA, and must include specific details regarding the right or
amount of reimbursement transferred to a third party.
Conditions for Agreement Execution:
1. RDA Board approves terms of the agreement.
2. Developer obtains all required City approvals.
3. Developer receives approval from the RDA and its legal counsel of all matters pertaining to title,
legality of the request, and the legality, sufficiency, and the form and substance of all documents
that are deemed reasonably necessary for the transaction.
4. Such other terms as recommended by the RDA’s legal counsel and staff.
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EXHIBIT 1 TO TERM SHEET
Legal Description and Map
Phase 2 Parcel
Parcel: 07321000060000
Legal Description:
BEG S 0^19'56" W 99 FT FR NW COR SEC 32, T1N, R2W, SLM; S 89^47'23" E 2638.70 FT; S
89^47'29" E 2393.95 FT; S 0^21'45"W 2050.56 FT; N 89^47'58" W 1496.07 FT; NW'LY ALG 2134.57
FTRADIUS CURVE TO L, CHD LENGTH 2508.50 FT (CHD N 56^20'03" W); N 89^46'57" W 1558.21
FT; N 0^19'56" E 745.85 FT TO BEG.
Phase 3 Parcels
Parcel: 0729200003000
Legal Description:
THE E 1/2 & E 1/2 OF W 1/2 OF SEC 29, T1N R2W, SLM; LESS & EXCEPT, BEG N 00^17'17" E
896.19 FT & W 64.96 FT FR SE COR OF SEC 32, T1N, R2W, SLM; N 89^47'54" W 210.00 FT; NE'LY
ALGA 30 FT RADIUS CURVE TO L 47.08 FT (CHD N 45^14'41" E 42.39 FT); N 00^17'17" E 1715.99
FT; N 00^21'58" E 2641.45 FT; N 00^21'58" E 0.49 FT; N 00^48'32" E 5281.60 FT; S 89^45'32"
E150.00 FT; S 00^17'54" W 0.41 FT; S 00^48'32" W 5281.60 FT; S 00^48'32" W 0.49 FT; S 00^21'58"
W 2641.26 FT; S 00^17'17"W 1715.57 FT; SE'LY ALG A 30 FT RADIUS CURVE TO L 47.17 FT
CHD S 45^45'18" E 42.46 FT) TO BEG. ALSO LESS & EXCEPT, BEGN 89^45'32" W 200.00 FT FR
NE COR OF SEC 29, T1N, R2W, SLM; S 00^48'32" W 80.30 FT; NW'LY ALG A 30 FT RADIUS
CURVE TO L 47.42 FT (CHD N 44^28'30" W 42.64 FT); N 89^45'32" W 1760.31FT; W'LY ALG A
550 FT RADIUS CURVE TO R 236.33 FT (CHD N 77^26'56" W 234.52 FT); S 89^45'32" E 2020.23 FT
TO BEG. ALSO LESS & EXCEPT, BEG N 00^17'17" E 895.96 FT FR SE COR OFSD SEC 32; N
89^47'54" W 64.95 FT; NW'LY ALG A 30 FT RADIUS CURVE TO R 47.17 FT (CHD N 44^45'18" W
42.46 FT); N 00^17'17" E 1715.57 FT; N 00^21'58" E 2641.26 FT; N 00^48'32" E 0.49 FT; N 00^48'32"
E 5281.60 FT; N 00^17'53" E0.41 FT; S 89^45'32" E 50.00 FT; S 00^21'45" W 2641.00 FT; S00^16'44"
W 2640.71 FT; S 00^21;58" W 2641.95 FT; S 00^17'17" W 1745.41 FT TO BEG.
Parcel: 07291000030000
Legal Description:
THE W 1/2 OF THE W 1/2 OF SEC 29, T 1N, R 2W, S L M. 160 AC 5353-1232 09175-0202
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Adopted June 11, 2024 - RDA Resolution 09
of 2024 NWQ Tax Increment Reimbursement
Agmt
Final Audit Report 2024-07-15
Created:2024-06-13
By:DeeDee Robinson (deedee.robinson@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAXrf7XvJOfLH2ok_hLvQKwX29se517sbw
"Adopted June 11, 2024 - RDA Resolution 09 of 2024 NWQ Tax
Increment Reimbursement Agmt" History
Document created by DeeDee Robinson (deedee.robinson@slcgov.com)
2024-06-13 - 6:27:37 PM GMT
Document emailed to Allison Parks (allison.parks@slcgov.com) for signature
2024-06-13 - 6:31:07 PM GMT
Email viewed by Allison Parks (allison.parks@slcgov.com)
2024-06-13 - 7:59:45 PM GMT
Document e-signed by Allison Parks (allison.parks@slcgov.com)
Signature Date: 2024-06-13 - 8:00:18 PM GMT - Time Source: server
Document emailed to alejandro.puy@slcgov.com for signature
2024-06-13 - 8:00:21 PM GMT
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2024-06-14 - 6:28:41 AM GMT
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2024-07-06 - 6:05:55 PM GMT
Email viewed by alejandro.puy@slcgov.com
2024-07-10 - 7:14:58 AM GMT
Signer alejandro.puy@slcgov.com entered name at signing as Alejandro Puy
2024-07-10 - 8:06:14 PM GMT
Document e-signed by Alejandro Puy (alejandro.puy@slcgov.com)
Signature Date: 2024-07-10 - 8:06:16 PM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2024-07-10 - 8:06:19 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2024-07-10 - 8:08:44 PM GMT
Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2024-07-12 - 0:24:34 AM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2024-07-12 - 0:24:37 AM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2024-07-15 - 3:06:48 PM GMT - Time Source: server
Agreement completed.
2024-07-15 - 3:06:48 PM GMT