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:
Marmalade Plaza Property Disposition to Salt Lake City Corporation
Additional Staff Contact:
Kate Werrett, Project Manager kate.werrett@slc.govAshley Ogden, Senior Project Manager ashley.ogden@slc.gov
Presenters/Staff Table
Document Type *
Resolution
Budget Impact *
Yes
No
Budget Impact:
Recommendation:*
RDA staff recommends that the RDA Board consider approving a fully discounted land conveyance from the Redevelopment Agency of Salt Lake City to Salt Lake City Corporation by resolution.
Background/Discussion
This memo provides an overview of the disposition plans for the Marmalade Plaza located at approximately 524 North 300 West.
Will the RDA Board need to hold a public hearing for this item?*
Yes
No
Public Process
Mayor's Comments
Attachment(s)
Marmalade Plaza - BOD Tier II Predisposition Memo.pdf 12.29MB
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: Kate Werrett, Project Manager
Ashley Ogden, Senior Project Manager
RE: Marmalade Plaza Property Disposition to Salt Lake City Corporation
REQUESTED ACTION: Consider approving a fully discounted land conveyance from the
Redevelopment Agency of Salt Lake City (“RDA”) to Salt Lake City Corporation (“City”) via attached
resolution.
POLICY ITEM: Property Disposition
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: In accordance with the Real Property Disposition Policy that was amended
on March 23, 2021, property discounts greater than 10% of appraised fair market value are subject to
approval by a majority vote of the RDA Board of Directors (“Board”). The RDA requests that the Board
consider authorizing a fully discounted conveyance of Tier 2 property located at approximately 524 North
300 West (“Property”) from the RDA to the City. The 0.56-acre parcel contains the nearly completed
Marmalade Plaza (“Plaza”), which is the last piece of the RDA’s “Marmalade Block” development within
the West Capitol Hill project area. If the land discount is approved, the RDA will transfer ownership of the
Plaza to the City for continued management as a public open space.
ANALYSIS & ISSUES:
Property Overview: The 0.56-acre parcel is located at approximately 524 North 300 West, to the
northeast of the Marmalade Library. The site has been developed as a public open space with a plaza area,
water feature, seat walls, planting beds, small lawn area, and public art, and can be accessed via mid-
block connections that stem from 300 West, 600 North, and 500 North.
Project Area: West Capitol Hill
Property Type: Tier 2
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Method of Disposition and Disposition Price: The RDA’s Real Property Disposition Policy does not
include a process for dispositions to the City; as such, the transaction is being considered an exclusive
negotiation with the City for a public use. Per the same policy, property discounts greater than 10% of
appraised fair market value are subject to approval by a majority vote of the Board. The RDA requests that
the Board consider authorizing a fully discounted conveyance of the Property to the City for its continued
management as a public open space.
Other Information Relevant to Disposition of the Property: The Marmalade Plaza concept has been in
development since 2010, when the Salt Lake City Public Library expressed interest in locating a new branch
library on the “Marmalade Block,” an RDA-owned property assemblage located between 500 - 600 North
and 300 West – Arctic Court. This set off RDA-led site planning work and community engagement, which
culminated in a site plan that was approved by the Board in December 2012 and designated locations for
the library, public open space, and three private development sites. Since that time, the RDA has conducted
extensive site work to prepare the Marmalade Block for new development, and negotiated property
dispositions for the Marmalade Branch Library, The Grove townhomes, and the Harvest Apartments, which
have all been completed. An initial portion of the Plaza adjacent to the library was included in its
construction and completed in 2015. Construction commenced on the remainder of the Plaza in September
2022 and is anticipated to conclude in August 2024.
The RDA and City have been coordinating on the future ownership and maintenance of the Plaza since at
least 2014, as evidenced by Board-adopted Resolution No. 750.01 (dated October 14, 2014), which
authorized the RDA and City to enter into an agreement that outlines the individual and joint obligations of
both parties concerning the development and maintenance of the Property. The draft agreement associated
with this item indicates that the RDA will construct the physical improvements on the Property, and, upon
satisfactory completion of such physical improvements, the City will own and maintain the Property as a
park-like plaza.
At the time, it was contemplated that ongoing Plaza maintenance would be funded by a Common Area
Maintenance (“CAM”) fee that is assessed annually via an Owners’ Association comprised of property
owners within the Marmalade Block subdivision, including the City. The RDA and City acknowledge that
this structure may be an overly complex and burdensome mechanism for raising maintenance revenues for
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a City-owned public asset and will work with adjacent property owners over the next year to identify an
alternate solution.
In September 2022, the Board allocated $1 million in Park Impact Fees to be used by the RDA for Plaza
construction. Due to limitations on the use of Impact Fees, the Finance Department requested that the RDA
and City enter into a Real Estate Purchase Agreement to memorialize the intent of the RDA to transfer
ownership of the Plaza to the City for its ongoing use as publicly accessible open space. This agreement,
executed on May 24, 2023, clarifies that the transfer of Property will occur on or before sixty (60) days
from the date that final construction punch list items are completed. The Purchase Agreement confirms that
the RDA will pay for maintenance for the first 12 months that the Plaza is in operation. RDA funds have
been allocated for this one-year expense.
Estimated Timeline of Disposition: The RDA estimates the schedule of disposition for the Property will
be as follows:
•Contractor to complete final punch list items: August 2024
•Execute Assignment of Payment Obligation Agreement to allow the Public Lands Department to
draw RDA funds to pay for the first year of Plaza maintenance: August 2024
•Closing: Q3 or Q4 2024
PREVIOUS BOARD ACTION:
•December 11, 2012: The Board approved the conceptual site plan for RDA-owned property located
between 300 West - Arctic Court and 500 - 600 North.
•November 12, 2013: The Board approved the 90% design details of the Plaza’s Phase I as part of
the Marmalade Block Development.
•December 10, 2013: The Board authorized the RDA to expend funds from the West Capitol Hill
Project Area to construct the first phase of the plaza and other Marmalade Block infrastructure
improvements.
•October 14, 2014: The Board authorized the RDA and City to execute an agreement that outlines
each parties’ respective and joint obligations re: the construction, ownership, management, and
maintenance of the Plaza, as described above.
•September 13, 2022: The Board approved the use of $1 million of Park Impact Fees for construction
of the Marmalade Plaza as the plaza is new open space and increases the level of parks service in
the City.
ATTACHMENTS:
A.Proposed Resolution
B.Resolution No. 750.01 dated October 14, 2014
C.Real Estate Purchase Agreement dated May 24, 2023
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REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Marmalade Plaza Disposition to Salt Lake City Corporation
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING THE TERMS OF THE DISPOSITION TO SALT LAKE
CITY CORPORATION OF THE MARMALADE PLAZA LOCATED AT 524 NORTH 300
WEST.
WHEREAS, in 2021, the Redevelopment Agency of Salt Lake City’s Board of Directors
(Board) adopted an amended Property Disposition Policy, R-6-2021, requiring that any sales
price of RDA-owned property discounted more than 10% of fair market value be subject to
approval by a majority vote of the Board.
WHEREAS, the Redevelopment Agency (RDA) owns certain real property at 524 North
300 West (Property), which is the final parcel of the RDA’s larger Marmalade Block
development initiated by the RDA roughly a decade ago.
WHEREAS, the RDA has designed, constructed, and improved the Property into
beautiful open public space that includes a water feature, seating, a common plaza space, fruit-
themed public art, and trees.
WHEREAS, the RDA desires to transfer this improved Property to Salt Lake City
Corporation (City) for the City to administer and maintain for the long term.
WHEREAS, the RDA has agreed to fully reduce the sales price of the Property in
exchange for the City maintaining the Property as open public space.
NOW, THEREFORE, BE IT RESOLVED by a majority of the Board of Directors of
the Redevelopment Agency of Salt Lake City that the Board hereby authorizes the disposition of
the Property to the City for $00.00.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this day of , 2024, to be effective upon adoption.
________________________________
, Chair
ATTACHMENT A: PROPOSED RESOLUTION
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Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
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ATTACHMENT B: RESOLUTION NO. 750.01 DATED OCTOBER 14, 2014
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ATTACHMENT C: REAL ESTATE PURCHASE AGREEMENT DATED MAY 24, 2023
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