Council Provided Information - 3/5/2024CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM: Jennifer Bruno & Allison Rowland
Budget & Policy Analysts
DATE:March 5, 2024
RE: RESOLUTION: UNIVERSITY OF UTAH BASEBALL STADIUM PUBLIC BENEFITS
ANALYSIS
ISSUE AT-A-GLANCE
The Council will be briefed on a public benefit analysis conducted by Salt Lake City that would allow the
University of Utah to lease approximately 1.175 acres of City-owned land at a below-market rate and term for 99
years. The land is located at approximately 1735 Sunnyside Avenue and is currently used for a softball field and a
multipurpose field at Sunnyside Park. The University requested this lease to facilitate expansion of its baseball
playing field to meet National Collegiate Athletic Association (NCAA) requirements. The University has stated
that this lease would enable sufficient expansion of the baseball playing field to avoid the need to construct
undesirable elements, such as a 35-foot wall between the western boundary of Sunnyside Park and the ballfield.
The Administration believes the benefits from an expanded ballpark, which would be available to the public
when not in use by the University teams (pending negotiations), combined with a $4.2 million contribution from
the University for new amenities at Sunnyside Park, would be sufficient to ensure that the proposed agreement
represents an overall benefit for the public. The Administration is recommending that the Council approve the
public benefits analysis, as it believes the agreement is in the long-term interest of the City.
A public hearing on this item is scheduled for tonight, February 20, 2024.
Goal of the briefing: Review the public benefit analysis and, after a public hearing, consider adopting a
resolution which would authorize the below-market ground lease rate and term to the University of Utah.
Item Schedule:
Briefing: February 6, 2024
Public Hearing: February 20
Potential Action: TBD
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Proposed Leased Area and New University Ballfield Design
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Note: The above image is a concept rendering used to explore options and make cost estimates.
Results from the City’s forthcoming community engagement process may change this design
substantially.
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ADDITIONAL INFORMATION AND BACKGROUND
A.Lease Term. The proposed lease term is $1 per year for a 99-year term. The 2023 fair market value of the
property was assessed at $0.68 per square foot, for a total of $434,279.
B.The Public Benefits Analysis.
1.Legal Framework. Under Utah Code 10-8-2 (1)(a)(v), after first holding a public hearing, a
municipality may “authorize municipal services or other nonmonetary assistance to be provided to a
nonprofit entity, whether or not the municipality receives consideration in return.” The University
of Utah qualifies as a nonprofit entity. The Council will consider scheduling a public hearing on this
potential agreement for February 20, 2024.
2.Public Benefits Identified. The University has already decided to build this new stadium. The
only question for the City is whether the benefits of the proposed below-market ground lease of
adjacent property outweigh the alternatives, which would include the installation of a 35-foot high
wall on University property. The Administration’s Public Benefits Analysis found that such a wall
would obstruct existing sight lines in Sunnyside Park that provide natural surveillance and improve
park safety. The specific public benefits from allowing the University to build a ballpark with an
outfield that would extend onto City-owned property in Sunnyside Park are summarized below.
a. A $4.2 million contribution from the University for new amenities at Sunnyside Park (and
potentially relocating softball fields).
b. Potentially, when not in use by University teams (subject to negotiation):
i. allowing the City to program a multi-use field within the future ballpark;
ii. allowing City and public access to a portion of the leased acreage, including a proposed
berm and other landscape features; and,
iii. allowing City and public access to amenities like bathrooms and concessions
maintained by the University and located inside the future ballpark.
c. Promoting the City’s reasonable goals and objectives as set forth in the SLC Public Lands
Master Plan, Reimagine Nature. These include:
i. Expanding the amenities in Sunnyside Park to allow it to support more users and uses,
including, potentially, additional active programming that brings people out for art,
events, programs, recreation, and community.
ii. Leveraging resources to make the public space more usable for both the public and the
University while preserving the open space and use of Sunnyside Park.
iii. Expanding the usable area in Sunnyside Park, provided that the University agrees to
allow public access onto portions of the University property for recreational purposes.
3.City Code Relating to Open Space Inventory. Leasing this part of the park property for use as
a baseball facility would comply with City Ordinance 2.90.070 (C), since it would continue to be “in
accordance with [its] intended use.” For this reason, the lease does not trigger the legal process that
includes extended public notice for this proposed disposition of open space.
POLICY QUESTIONS
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1. The Council may wish to discuss options to provide replacement softball fields with lighting, given that
the existing fields at Sunnyside are heavily used by recreation-level leagues.
a. The Council could discuss potential funding sources with the Administration. The
Administration has estimated that if a lighted softball field is constructed on City land, it could
cost approximately $1.5 million. There is a cost efficiency in building two ($2.5 million), and
additional parking would cost approximately $750,000.
b. Vacant City land exists that could host additional softball fields. The Council could also ask
Public Lands if there are any other softball fields in its inventory where lights could be added, to
ensure users of Sunnyside Park softball fields have access to fields on the same basis as they do
currently. The Administration has indicated that they have a submitted a CIP application for
additional soccer fields at the RAC, and softball could be added to that project or funded
separately.
c. Staff note: The original proposal for the Regional Athletic Complex (RAC) included several
lighted softball and baseball fields, but these were ultimately not constructed due to cost
constraints.
d. The Council could ask the Administration if impact fees are eligible to use for enhanced
amenities at Sunnyside park, which could free up funds from the University to use towards
replacing the softball fields.
2. The Chair of the Yalecrest Community Council submitted a communication to the Council expressing
opposition to the proposal (attached). See item B3 above as it relates to the assertion that this action
violates 2.90.070 Removal Of Lands From The Open Space Lands Inventory of the City code.
3. The Council may wish to ask the Administration about the timeline for the University’s stadium
construction.
4. The Council may wish to ask the Administration how programming and activities are proposed to be
managed at the ballpark to minimize impacts on neighboring residential areas and wildlife that use the
area.
5. The Council has authorized significant expansion to the Public Lands Department in recent years, both
to provide the basic staffing needed by e new department, and to help ensure timely and efficient use of
the $85 million bond which was approved by voters in late 2022. Would the Council like to request
additional information on how Public Lands could accommodate another large project into its existing
queue?
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MEMORANDUM
TO: City Council Members
FROM: Tyler Murdock, Deputy Director, Salt Lake City Public Lands
Kristin Riker, Director, Salt Lake City Public Lands
SUBJECT: Update on University of Utah Proposal to Lease 1.175 Acres of Sunnyside
Park
DATE: March 4, 2024
This memo provides updates on key considerations regarding the University of Utah’s
request to lease 1.175 acres of Sunnyside Park for the construction and operation of a
new collegiate baseball stadium and address issues raised in the public hearing.
An initial letter was provided to City staff on January 4th from the University outlining
the proposed public benefits of the proposal. Administration completed a Public
Benefits Analysis (“PBA”), taking into account the benefits outlined by the University
along with several additional considerations. Following the formal City Council briefing
and subsequent meetings with University officials, City staff have compiled the
following updates to several sections of proposed benefits to add clarity and context. An
updated design concept drawing of the ballpark and related facilities is attached.
Design Elements:
The PBA describes how the lease to the University will eliminate the need for a 35-foot
wall in the outfield between the ballpark and Sunnyside Park. An additional
consideration is that the lease to the University will allow the ballpark building to be
offset approximately 20 feet from the Guardsman Way right of way. The design concept
drawing contemplates that some improvements such as walkways and footings may be
within the offset area. The University’s original proposal did not have any setback,
meaning that the ballpark would be directly adjacent to the sidewalk. The 20-foot offset
will benefit the use and safety of Guardsman Way.
Recreational Access to Ballpark Outfield:
The University of Utah initially listed “access to the ballpark for community events” as
one of the public benefits, including the use of the ballpark outfield as an additional
recreation field during baseball off-season months (Mid-May thru October). However, it
has since been clarified that the ballpark facilities and outfield may be rented by the
public, and the rental to city residents and recreational groups will be a fee that covers
the operational costs, which are not yet determined. While the facility could still be used
for reserved community events, the operational cost required for hourly use will likely
be prohibitive for public recreational community field reservations. Therefore, the use of
the ballpark outfield for public recreational programming should not be considered a
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public benefit until the operational costs are identified and deemed reasonable for
recreational use.
Public Access to Shared Facilities:
The University initially listed the “designed integration of the ballpark into Sunnyside
Park, including added amenities like restrooms and concessions or food trucks with
outward accessibility to park patrons” as a public benefit. Concessions will be available
to the public only when the facility is paid for and reserved for community events. The
University has confirmed that they will construct restrooms within the leased area that
will be outward facing and available for public use during park hours, except when the
stadium is reserved for University or private events. The restrooms are being
constructed at an additional estimated cost of $600,000 to the University. Restroom
access may be considered part of a public benefit.
Public Access to Leased Area:
The leased area is located between the outfield and the park, separated by a fence on
each side. During use of the ballpark, the leased area will function as outfield grass
seating and landscaped berm. The University has agreed to allow public access to the
leased area all the time except during ballfield events.
Additional Structures on Leased Area:
To preserve the setback along Guardsman Way, the University has planned to construct
an indoor baseball hitting practice facility and restrooms on a portion of the leased area.
Based on preliminary drawings, the building is expected to be approximately 28 feet tall
from the ballfield side and 128 feet wide, however due to the grade change in the leased
area, it appears that the facility will sit 16 feet high from the perspective of a park user
on the east side of the leased area. The University will allow use of the practice facility by
city residents and recreational groups for a fee that covers only operational costs. The
University will also construct restrooms adjacent to the practice facility in the leased
area that will be open to public except during events in the ballfield.
Construction Timeline:
The proposed leased area will be publicly available for field reservations until June 30,
2024. The lease will state that the University’s possession begins July 1, 2024.
Additionally, there has been some discussion about whether the University contractors
could construct the proposed park amenities in connection with the ballfield
improvements. We have not yet determined if this is allowable under the City’s
procurement code, although it could provide some benefits in both time and cost. If it is
determined that the University will construct these amenities, the City will require 4-6
months of public engagement to determine the scope of the park improvements prior to
construction design from the University. Alternatively, if the City is responsible for
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construction, it would follow the typical Capital Improvement schedule, taking all steps
that are prudent and reasonable to complete planning, design, and construction within a
3-year time period. The University has requested that the City follow reasonable efforts
to install all upgrades in Sunnyside Park within 3 years of the lease agreement.
Tree Preservation:
The proposed leased area contains four Giant Sequoia trees. It appears the University’s
construction of the design concept will impact one or two of the trees. While the
University has expressed willingness to explore necessary steps to protect these trees,
they have not agreed to their preservation. City staff has initiated a formal tree
appraisal. Through an assessment, the city will determine tree condition, species, size,
site condition and an approximate appraised value of each tree. It is recommended that
the lease agreement should require the University’s best efforts to protect and preserve
these trees and will follow the City’s best practices for tree protection zones. If a tree is
not preserved on City property, the City typically charges mitigation fees determined by
an evaluation and assessment of the tree. The University has stated that any mitigation
fees should be charged against the $4.2 million donation. The University could also be
required to replace any removed trees.
Costs to City:
The University is donating $4.2 million to the City as the primary public benefit for the
lease, plus is investing an additional estimated $600,000 to construct restrooms that
benefit the public using Sunnyside Park. The City will agree to spend $4.2 million on
upgrades in Sunnyside Park. The lease to the University will result in the following costs
to the City:
• Loss of a softball field with lighting: replacement cost is estimated to be
$1.5 million. The cost to construct 2 softball fields with lights and the
associated parking is estimated to be $3.2 million.
o The cost of replacing the lost softball field could be potentially paid
for with City funds or the University donation.
o The cost of construction of a new softball field and parking could
potentially be paid for with City funds, or the University donation.
• Loss of one multi-use field: replacement cost is estimated to be $865,000.
The replaced multi-use field could potentially be paid for with City funds
or the University donation.
The leased area has an assessed value of approximately 0.68/square foot, equating to
approximately $434,279. The appraised value would be higher. The rent based on the
assessed value would be approximately $34,742 for the first year and the City typically
applies a 3% annual increase.
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Land Use Restrictions:
City staff has been made aware of some potential land use restrictions on a portion of
the leased area arising from the City’s acquisition of the property from the federal
government. City staff is researching these potential restrictions and their effect.
Proposed Lease Terms:
See attached draft term sheet.
We appreciate your attention to these matters and look forward to further discussions to
ensure the best possible outcome for all parties involved. Please feel free to contact me if
you require any additional information or clarification.
PROPOSED TERM SHEET (DRAFT – NOT FINAL)
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Term Sheet
Lease to University of Utah –Sunnyside Park
Term: 99 years; the parties can mutually agree on an extension.
Commencement
Date:
July 1, 2024
Rent: $1/year
Additional
Consideration:
The University will pay the City $4.2 million for park and recreation
improvements, plus construct a restroom that will benefit the
public using Sunnyside Park at the estimated cost of $600,000. The
City will spend $4.2 million on park improvements at Sunnyside
and the University has requested that the City will use reasonable
efforts to complete the park improvements within 3 years from the
execution of the lease.
Use: Recreational fields and related amenities including restrooms and a
practice facility, fencing, and landscaping improvements.
Easement: The University and City will have a reciprocal access easement on
the north side of the ballpark.
Operating
Conditions:
1. The ballpark (including a multiuse field in the outfield) will be
available for rent by the City, city residents, and recreational groups
when not in use by the University in accordance with the
University’s policies, if the renter covers operation costs for its use.
The University anticipates that the ballpark will have year-round
availability during non-collegiate use, with high availability
between May through August and November, and December, and
lower availability at other times of the year.
2. The practice facility will be available for rent by the City, city
residents, and recreational groups when not in use by the
University in accordance with the University’s policies, if the renter
covers operation costs for its use.
3. The restrooms within the leased area will be outward facing and
available for public use during park hours, except when the stadium
is reserved for University or third-party events.
4. There will be public access to the leased property when ballpark
is not in use.
PROPOSED TERM SHEET (DRAFT – NOT FINAL)
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5. The University will use best efforts to protect the 4 existing
Grand Sequoia trees on the leased property and will follow the
City’s best practices for tree protection zones. There may be a
mitigation fee charged for the removal of any trees.
6. The ballpark facility will set back the improvements from
Guardsman Way not less than approximately 20 feet from right of
way boundary.
Lease
Conditions:
There may be additional conditions or restrictions based on any use
restrictions in favor of the federal government.
Final terms of the ground lease will be negotiated by the administration on advice from
the City Attorney’s office.
UPDATED DESIGN CONCEPT DRAWING (NOT FINAL)
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UPDATED DESIGN CONCEPT DRAWING (NOT FINAL)
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