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Transmittal - 9/3/2024ERIN MENDENHALL MAYOR DEPARTMENT of ECONOMIC DEVELOPMENT CITY COUNCIL TRANSMITTAL LORENA RIFFO JENSON DIRECTOR Jill Love Jill Love (Jun 19, 2024 11:12 MDT)Date Received: 06/19/2024 Jill Love, Chief Administrative Officer Date sent to Council: 06/19/2024 TO:Salt Lake City Council DATE: June 18, 2024 Victoria Petro, Chairperson FROM: Lorena Riffo Jenson, Director of the Department of Economic Development SUBJECT:Resolution of Intention to Designate Central Business Improvement Area – 25 (CBIA-25) STAFF CONTACT: Roberta Reichgelt, Department of Economic Development, Roberta.Reichgelt@slcgov.com; Peter Makowski, Department of Economic Development, Peter.Makowski@slcgov.com; Andie Feldman, Department of Economic Development, Andie.Feldman@slcgov.com DOCUMENT TYPE: Resolution RECOMMENDATION: Administration recommends City Council adopt the Resolution of Intention to designate the Central Business Improvement Area 2025 (CBIA-25). This continues a funding mechanism for downtown promotions, marketing, and advocacy established in 1991. It re-establishes a Special Assessment Area (SAA) in the boundary area map attached (same boundaries as 2022) for a three-year period as well as breaks out a second assessment for Holiday lighting, map attached. BUDGET IMPACT: The budget summary for the City is detailed starting on page 2 under the section “Financial Summary for CBIA–25.” BACKGROUND/DISCUSSION: Salt Lake City established the Central Business Improvement Area (CBIA) in 1991 as a mechanism to fund marketing, promotions, advocacy, and other initiatives in Downtown Salt Lake City through a special assessment on property within a designated area. The current SAA, CBIA-22, expires April 22, 2025. The Administration wishes to initiate another SAA, CBIA-25, by April 22, 2025 to continue the collection of assessment funds within a defined downtown boundary area. This allows for the continuation of marketing, promotion, advocacy, and other benefits that have and will accrue to the City and downtown property owners and businesses through services provided by the RFP recipient contractor (currently the Downtown Alliance). The SAA also funds an ambassador’s program in Downtown Salt Lake City. The goal of the program is to promote economic growth by increasing local business activity through in- person wayfinding assistance for visitors, connecting the City’s homeless population with available resources, as well as a recently added garbage and litter collection to better maintain cleanliness. If approved, the Administration would like to continue this program and use the downtown special assessment area as a continued funding source. Since the inception of the CBIA, commonly known as a Business Improvement District, the funds collected for the Area have been used to fund the Downtown Alliance under a contract with Salt Lake City Corporation. The Department of Economic Development (DED) is able to extend the contract with the Downtown Alliance for a further three years to cover the CBIA-25 assessment. The creation of the CBIA is a lengthy and complex process that is governed by State law, has numerous noticing provisions, public hearings, and other requirements that involve a variety of City Council actions over the next nine months in order to meet the deadline for continuous funding from the Area. The Department of Economic Development, in cooperation with Engineering, City Attorney’s Office, City Treasurer’s Office, Zions Public Finance, and the Downtown Alliance, would like to brief the City Council on the “Resolution of Intention to Designate the Central Business Improvement Area” on July 2, 2024, with a formal action item on July 9, 2024. The action by the City Council allows the notification of property owners to begin and keeps the process on target to meet the April 2025 deadline for expiration of the current SAA management contract with DTA. Financial Summary for CBIA-25 $3,573,174,176 .00142 $5,073,907 $13,870 $12.79 Revenue for CBIA-25 2024 Taxable Property Valuation Proposed Taxable Value Assessment Rate Taxable Value Assessment Subtotal 2024 Estimated Linear Footage for Holiday Lights Proposed Holiday Light Rate per Foot Holiday Light Assessment Subtotal $177,378 Total Assessment Revenue $5,251,285 Tentative Budget for CBIA-25 Salt Lake City Expenses DED Management $ 132,000 Reserve withheld (3%)$ 173,293 Professional and Technical $ 33,000 Legal Fees $ 30,000 Printing $ 5,500 Postage Fees $ 3,300 Salt Lake City Subtotal $ 377,093 RFP Recipient Budget Economic Development Activities (27%)$ 1,422,300 Marketing and Events (16%)$ 853,600 Administration (24%)$ 1,280,400 Ambassador Program Unhoused Services (33%)$ 1,663,200 RFP Recipient Subtotal $ 5,219,500 Total Use of Funds $ 5,596,593 Adoption Process and Timeline If the City Council adopts the proposed “Resolution of Intention to Designate CBIA-25,” the additional steps toward final implementation are: ●Property owners in the SAA are mailed a Notice of Intention with a description of the boundaries and an assessment rate ●Property owners have opportunities to protest (in writing) the creation of the SAA or inclusion in it ●Public hearings and informational meetings are held ●Board of Equalization hearings are held to hear factual issues on the amount of benefit received and the amount of the proposed assessment ●City Council adopts an ordinance to create CBIA-25 ●CBIA-25 takes effect April 22, 2025 Special Stipulations Parcels under $20,000 in valuation as well as residential, ecclesiastical and government owned properties are exempt from the assessment, except those whose owners agree in writing to be assessed. By State law, properties that are not included in the initial Notice of Intent cannot be added at a later date unless the property owner consents. However, properties may be removed from the SAA at the Council’s discretion prior to assessment. Property owners are assessed the full amount but may pay the assessment in three annual installments. If owners of 40% or more of the valuation in the SAA boundaries protest the creation of the CBIA- 22, the SAA cannot be created. No more than 30% of the assessment funds can be spent on administrative expenses. Public Process If the City Council adopts the Notice of Intention as recommended, copies of the notice will be mailed to all property owners in the SAA, as well as to the physical property address (if it differs from the address of the property owner), along with a notice of an open house/hearing. Written protests may then be filed with the City, and a protest hearing should be scheduled by the City Council before the adoption of the ordinance creating the CBIA-25. If the City Council creates the SAA, it would appoint a Board of Equalization that may recommend adjusting the assessment rate higher or lower from that indicated in the Notice of Intention. The City Council then may accept, reject, or modify that recommendation before adoption of the Assessment Ordinance. Relevant Statutes and Ordinances The definition of "economic promotion activities" in the SAA statute, Utah Code Section 11-42- 102(18) is as follows: (18) "Economic promotion activities" means activities that promote economic growth in a commercial area of a local entity, including: (a) sponsoring festivals and markets; (b) promoting business investment or activities; (c) helping to coordinate public and private actions; and (d) developing and issuing publications designed to improve the economic well-being of the commercial area. ATTACHMENTS: A. Boundary Map & Holiday Lighting Map B. Timeline C. Resolution SPENCER GR A Y Sa l t L a k e C i t y CB I A Bo u n d a r y M a p 3RD A V E (H W Y 1 8 6 ) OR P H E U M PI E R P O N T GA L L I V A N A V MA R K E T S T EX C H A N G E P L WA S H I N G T O N L I B R A R Y 700 W 700 W 700 W RENDON CT 600 W BUTTERWORTH WOODBINE 600 W 600 W BLISS CT 500 W 400 W RIO GRANDE 500 W 400 W THE GATEWAY 500 W 400 W GALE ST TON 300 W PLEASANT 200 W WAYNE DELMAR POPLAR 300 W 200 W (HWY 89) QUINCE WEST TEMPLE WEST TEMPLE TEMPLE WEST MAIN ST MAIN ST LOMA PLUM ALLEY WALL LOW STATE ST STATE ST EDISON ST MORTENS EN CT 200 EAST 200 E SHEL ERDINE C MOFFATT CT 300 E BLAIR ST 400 E DUBEI 300 E 400 E C ST D ST 4 30 0 N SE W A R D HI L L S I D E A V 20 0 N JA C K S O N A V NO R T H TE M P L E S AV E 50 N SO U T H TE M P L E DA N S I E D R SO C I A L H A L L 10 0 S 10 0 S 20 0 S EC C L E S 20 0 S PI E R P O N T 30 0 S 30 0 S 30 0 S PI O N E E R PA R K 40 0 S 40 0 S PA C I F I C AV E PA C I F I C A V SQ U A R E SQ U A R E 50 0 S 50 0 S ST A N T O N BE L D O N OR C H A R D P L 60 0 S 60 0 S SouthSouth TempleTemple SStt 50 15 10 50 50 60 100 99 55 18 50 51 65 50 65 5099 3045 5550 555044 55 505544 99 5544 50 50 50 55 50 51 5050 50 5165 5050 5151 36 5050 SocSocialial HallHall AAvvee 4455 4550 99 50 45 30 50 30 5150 65 2151 50505051 5151 51 110000 SS 55 50 10 102 79 116 51 51 110000 SS 360 375 357 320 316 307 145 155149 135 206 220000 SS 77 225 118120124 136 160 170 15 131 143 151149 159163155 165 175 201 132 150 156 158 160 75 161 185 185 175 144 122 222 220 PPierpontierpont AAvvee PPierpontierpont AAvvee 149 128 255 80 330000 SS 248 260 262 270 268 10 239 GGallivanallivan AAvvee 299 111 306 317 8315 311 326 334330 335 48 0 26 319 327323325 341331 328 338 360 9 EExchangexchange PPll 342 380 440000 SS 10 360 37075 375 321 CBIA 16: Holiday Lighting Parcels (Preliminary)Holiday Lighting Streets Non-functioning lights Included Parcels July 29, 2015 Salt Lake City Geographic Information Systems O 15 163 9 324 334 322 311 31069 110 250 215 15 120111 61 R io G r a n d e S t 4 0 0 W 3 0 0 W W a y n e C t P o p la r C t 2 0 0 W M a r g u e r i t e C t W e s t T e m p l e S t M a i n S t P lu m A ly S t a t e S t F l o r a l S t E d i s o n S t 2 0 0 E S h e l m e r d i n e C t M o f f a t t C t R e g e n t S t 122 51 7 CBIA - 25 Tentative Timeline Step Action Description Group/Lead Deadlines 1 Consultant Contract Contract with a consultant to provide guidance throughout process.DED 2/1/24 - 4/30/2024 2 Technical Description of the CBIA Technical Description of the CBIA provided to Engineering. Engineering prepares tax roll based on this data.Consultant 3/12/2024 3 Develop assessment methodology that conforms to Assessment Area Act. Develop assessment methodology concerning Economic Promotion & Lighting Assessment.DED 3/24/2024 4 Overview Transmittal. (Mayor)High level document explaning the process transmitted to Mayor’s Office.DED 3/12/2024 5 Overview transmittal. (Council Office)High level document explaning the process transmitted to Council Office.Mayor’s Office 3/19/2024 6 City Council Meeting DED will provide a written briefing to the City Council on the upcoming on the CBIA- 25 process.DED 4/2/2024 7 Salt Lake County Property Tax Information.Numbers should be available by May 22, 2024.Consultant 5/31/2024 8 Bond Counsel Description & Improvement Review Bond Counsel reviews the description of Improvements and Areas to be Improved.DED 6/5/2024 9 Resolution of intent to designate.Bond Counsel drafts resolution of Intent to Designate.Bond Counsel 6/11/2024 10 Resolution of Intent to Designate and Justification transmittal. (Mayor) Resolution of Intent to Designate and justification documentation transmitted to Mayor’s Office.DED 6/18/2024 11 Resolution of Intent to Designate and Justification transmittal. (Council Office) Resolution of Intent to Designate and justification documentation transmitted to Council Office.Mayor’s Office 6/21/2024 12 City Council Meeting DED will brief the City Council on CBIA-25 Information.DED 7/2/2024 13 Property Owner Letter Prep Property Owner letter includes verbiage of preliminary estimate, rate, notice of intent to designate, common question and map finalized.DED 7/8/2024 14 Tax roll prepared for DED approval.Assess County Data.Engineering 7/8/2024 15 DED approval of tax roll.DED approves county data.DED 7/8/2024 16 City Council Meeting City Council adopts the resolution of Intent to Designate the assessment area.City Council 7/9/2024 17 Draft/Create Notice of Intent to Designate Letter Engineering 7/11/2024 18 Post Notice of Intent to Designate Post notice of intent to designate in at least three public places within boundaries of jurisdiction DED 8/9/2024 19 Mail out Notice of Intent to Designate Mail out Notice of Intent to Designate to go out within 10 days of notice posting.DED sends via State Mail 8/12/2024 20 Minutes prepared for use at protest hearing Distribute to team SAA.Bond Counsel 8/23/2024 21 City Council Meeting City Council Protest Hearing City Council 9/3/2024 22 Draft Resolution to Designate the Assessment Area and appoint the Board of Equalization (BOE). Bond Counsel 9/10/2024 23 Resolution to Designate the Assessment Area and appoint the Board of Equalization Transmittal (Mayor’s Office) Resolution to Designate the Assessment Area and appoint the Board of Equalization Transmitted to Mayor’s Office.DED 9/17/2024 24 Resolution to Designate the Assessment Area and appoint the Board of Equalization (City Council). Resolution to Designate the Assessment Area and appoint the Board of Equalization Transmitted to the Council Office.Mayor’s Office 9/24/2024 25 Property Owners Written Protests Filing Deadline Property owners who are protesting the assessment area. Also, the end of 60-day written protest period. Recorder's Office 11/3/2024 26 Compile Written Protests.Recorder's Office 11/4/2024 27 Delivery of Compilation of Protests Compilation of protests sent to City Council.Recorder's Office 11/5/2024 28 Publishing of Written Protests Publishing of Written Protests on City & State public notice website.Recorder's Office 11/5/2024 29 City Council Meeting City Council announces the protest tally and if it exceeds 40% threshold.City Council 11/12/2024 30 City Council Meeting City Council adopts the Resolution to Designate the Assessment Area and appoints the Board of Equalization.City Council 11/12/2024 31 Recording of the Resolution to Designate the Assessment Area & Notice of Proposed Assessment Record Resolution to Designate the Assessment Area and Notice of Proposed Assessment with Salt Lake County Recorder, within 15 days of adoption. Salt Lake City Recorders 11/12/2024 - 11/27/2024 32 BOE Notice and Dates of BOE Meetings. Finalize Verbiage for BOE notice and dates of BOE meetings.Bond Counsel 11/22/2024 33 Mailing process for the BOE notice.Begins 2 weeks before mailing date.Engineering 12/6/2024 34 Publication of the BOE hearings. Publication and posting of time and location of the 3 consecutive meetings. Posted as a Class B notice at least 20 days, but not more than 35 days from the first BOE hearings dates. Published on the Utah Public Notice Website.Recorder's & DED 12/10/2024 35 Mailing due to Recorder’s Office for review.Due 1 week before mailing date.Engineering 12/13/2024 36 Mailing of preliminary assessment & notice of BOE hearings Class B notice mailing sent to each property owner and each street addre s. DED 12/20/2024 37 BOE hearings 9:00 am to 10:00 am (public meeting).Held on consecutive days by statute.Salt Lake City Recorders 1/7/2025 38 BOE hearings 10:00 am to 11:00 am (public meeting).Held on consecutive days by statute.Salt Lake City Recorders 1/8/2025 39 BOE hearings 1:00 pm to 2:00 pm (public meeting).Held on consecutive days by statute.Salt Lake City Recorders 1/9/2025 40 Finalization of BOE Hearings Finalize the report DED 1/14/2025 41 BOE Report Completion BOE report completed, signed, and forwarded to City Council and Bond Counsel.DED 1/17/2025 42 Mailing of BOE Final Report BOE report mailed to objecting property owners. Begins 15 day appeal period.Engineering 1/23/2025 43 Assessment Ordinance Bond Counsel Draft Assessment Ordinance Bond Counsel 1/28/2025 44 Assessment Ordinance Transmittal (Mayor’s Office).Assessment Ordinance transmitted to the Mayor's Office.DED 2/4/2025 45 Assessment Ordinance Transmittal (Council Office).Assessment Ordinance transmitted to the Council Office.Mayor’s Office 2/7/2025 46 Budget submission for CBIA Submit budget to SLC Finance Department in anticipation of approval.DED 2/7/2025 47 City Council Meeting City Council accepts or modifies BOE recommendations and adopts or rejects Assessment Ordinance.City Council 3/4/2025 48 Center Business Improvement Assessment Area Management Contract drafting and Execution Execute Agreement between Salt Lake City and the vendor to manage the assessment area.DED 49 Transfer properties into billing status.Engineering 3/20/2025 50 Assessment Invoices and Billing Mail assessment notices and invoices to Property Owners by April 5, 2022 the latest.Treasurer 3/21/2025 51 Publication & Posting of the Assessment Ordinance 1.Publication of the Assessment Ordinance on the Utah Public Notice Website. 2.Post a copy of the Assessment Ordinance as a Class A notice. For at least 21 days DED/Recorder's 3/24/2025 52 Record Notice of Assessment Interest with Salt Lake County Recorder. I note that Utah Code 11-42-404(4)(b)(iii) requires the notice of assessment interest to “describe the property assessed by legal description and tax identification number.” Metes and Bounds legal description provided by Recorder’s Office. Salt Lake City Recorders 4/21/2025 53 Effective start date of the Assessment Ordinance Must be specified in the Assessment Ordinance DED 4/21/2025 54 Assessment Payments Due Invoice Payments due from property owners [15 days after effective date of Assessment Ordinance]Treasurer 5/6/2025 Salt Lake City, Utah July 9, 2024 A regular meeting of the City Council of Salt Lake City, Utah, was held on Tuesday, July 9, 2024, at the hour of 7:00 p.m., at which meeting there were present and answering to roll call the following members who constituted a quorum: Victoria Petro Chair Chris Wharton Vice-Chair Alejandro Puy Councilmember Eva Lopez Chavez Councilmember Darin Mano Councilmember Dan Dugan Councilmember Sarah Young Councilmember Also present: Erin Mendenhall Mayor Katherine Lewis City Attorney Cindy Lou Trishman City Recorder Absent: Thereupon the following proceedings, among others, were duly had and taken: The following resolution was introduced in writing, was read by title, and Councilmember moved its adoption: Notice of Intent Resolution 2 Notice of Intent Resolution 4876-5491-9111, v. 3 RESOLUTION NO. of 2024 A Resolution of intention of the City Council of Salt Lake City, Utah (the “City”), to designate an Assessment Area for the purpose of levying assessments against properties within the Assessment Area to continue to promote business activity and economic development in the central business area of downtown Salt Lake City by assessing benefited properties within the Assessment Area for the costs of such economic promotion activities for a period of three years (the “Assessments”); and to fix a time and place for protests against the Assessment Area and its assessments, and related matters. BE IT RESOLVED by the City Council of Salt Lake City, Utah, as follows: Section 1. The City Council (the “Council”) of Salt Lake City, Utah (the “City”), hereby determines that it will be in the best interest of the City to continue to promote economic growth activities in the central business area of downtown Salt Lake City. The proposed activities are more specifically described hereafter, but generally will include, but will not be limited to, advertising, marketing, special events, festivals, transportation, newsletters, publications, banners, holiday lighting, homeless services, security, special projects, housing, town meetings, government policy, cultural promotion, reports, surveys and other promotional activities (the “Economic Promotion Activities”) in the downtown area as described hereafter and more specifically identified on maps and plans on file in the Office of the City Recorder of the City. In order to accomplish the Economic Promotion Activities, the City proposes to designate the Salt Lake City, Utah Central Business Improvement Assessment Area No. DA-CBIA-25 (the “Assessment Area”) pursuant to Title 11, Chapter 42, Utah Code Annotated 1953, as amended (the “Act”), the area of which is more particularly described in the Notice of Intention to Designate Assessment Area set out hereafter. Section 2. A portion of the cost of the Economic Promotion Activities shall be paid by a special assessment to be levied against business and commercial properties situated within the Assessment Area that are specially benefited by the Economic Promotion Activities. The assessment will have two components: (i) an assessment based on the 2024 taxable property values (the “Base Assessment”), plus (ii) an assessment on certain properties by linear feet for special holiday lights (the “Holiday Lighting Assessment” and together with the Base Assessment, the “Assessment”). Attached hereto as Exhibit A is a list of the properties within the Assessment Area and the proposed Assessment related to each property. The Assessment may be paid when assessed or, at the option of the property owner, in three (3) annual installments with interest on any delinquent installment until paid. Section 3. The Council shall hold a public hearing on September 3, 2024, at 7:00 p.m. at the Council Chambers at 451 South State Street in Salt Lake City, Utah to hear all objections related to the Assessment Area as set forth in the Act. Thereafter, written protests from property owners against the proposed assessments may be filed in the Office of the City Recorder of the City, whose address is 451 South State Street, Room 415, for a 3 Notice of Intent Resolution 4876-5491-9111, v. 3 period of 60 days after the date of the public hearing. On Tuesday, November 12, 2024 (such date being within 15 days after the date the protest period expires), at 7:00 p.m. in the Council Chambers at 451 South State Street in Salt Lake City, Utah, the Council shall count the written protests filed and calculate whether adequate protests have been filed and hold a public meeting to announce the protest tally and whether adequate protests have been filed. The Council may thereafter adopt a resolution abandoning or creating the proposed Assessment Area depending on whether adequate protests have been filed. The City Recorder is hereby directed to give notice of intention to designate the Assessment Area (the “Notice of Intention”) to finance and support the Economic Promotion Activities. The Notice of Intention shall specify the date of the public hearing and the time within which protests against the proposed assessments may be filed. The Notice of Intention shall be published as a Class B Notice under Section 63G-30-102, Utah Code Annotated 1953, as amended, for at least 20 days but not more than 35 days before the date of the public hearing. As a Class B Notice, the City Recorder shall mail a copy of the Notice of Intention by United States Mail, postage prepaid, to each owner of property to be assessed within the Assessment Area at the last known mailing address of such owner, using for such purpose the names and addresses of said owners appearing on the last completed real property assessment rolls of Salt Lake County, Utah, and, in addition, a copy of the Notice of Intention shall be mailed, postage prepaid, addressed to “Owner” at the street number of each piece of improved property to be affected by the assessment. If a street number has not been so assigned, then the post office box, rural route number, or any other mailing address of the improved property shall be used for the mailing of the Notice of Intention. Said Notice of Intention shall be in substantially the following form: 4 Notice of Intent Resolution 4876-5491-9111, v. 3 NOTICE OF INTENTION TO DESIGNATE ASSESSMENT AREA PUBLIC NOTICE IS HEREBY GIVEN that on July 9, 2024, the City Council of Salt Lake City, Utah, adopted a resolution (the “Resolution”) declaring its intention to designate the Salt Lake City, Utah Central Business Improvement Assessment Area No. DA-CBIA-25 (the “Assessment Area”) to finance a portion of the cost of economic promotion activities, which are more specifically described hereafter (the “Economic Promotion Activities”) in the area of downtown Salt Lake City within the Assessment Area and to levy a special assessment (the “Assessment” or “Assessments”) for a period of three years as provided in Title 11, Chapter 42, Utah Code Annotated 1953, as amended (the “Act”), on real property situated within the Assessment Area for the benefit of which such assessments are to be expended in the management and costs of the Economic Promotion Activities. DESCRIPTION OF ASSESSMENT AREA The Assessment Area is described by reference to the following streets (the “Reference Streets”): A – North Temple from State Street to the East right-of-way line of I-15 (includes parcels on both sides of the street) B – East right-of-way line of I-15 from North Temple to 400 South C – 400 South from the East right-of-way line of I-15 to 300 East (includes parcels on both sides of the street) D – 300 East from 400 South to South Temple (includes parcels on both sides of the street) E – South Temple from 300 East to State Street (includes parcels on both sides of the street) F – State Street from South Temple to North Temple (includes parcels on both sides of the street) The area of the Assessment Area shall include all property bounded by Reference Streets A through F described above. In addition, it shall include parcels of property, subject to the exceptions set out hereafter, which abut the Reference Streets plus all corner parcels which have a corner touching any of the Reference Streets. The Holiday Lighting Assessment (as described herein) shall apply to the following streets (collectively, the “Holiday Lighting Streets”): A – 200 South between 300 West and 400 West B – 200 South between West Temple and 200 West (South side only) C – Pierpont Street between West Temple and 200 West D – West Temple between 400 South and 200 South E – Main Street between 400 South and South Temple F – Market Street between West Temple and Main Street (North side only) G – State Street between 350 South and South Temple 5 Notice of Intent Resolution 4876-5491-9111, v. 3 The Resolution, maps, and other information about the Assessment Area are available for examination during business hours in the offices of the Salt Lake City Recorder, 451 South State Street, Room 415, Salt Lake City, Utah. ACTIVITIES AND MANAGEMENT OF THE ASSESSMENT AREA The Economic Promotion Activities shall include advertising, marketing, special events, festivals, transportation, newsletters, publications, banners, holiday lighting, homeless services, security, special projects, housing, town meetings, government policy, cultural promotion, reports, surveys and other promotional activities. The Economic Promotion activities will take place within the boundaries of the Assessment Area for the benefit of business and commercial property owners within the Assessment Area. Since 1992, the Downtown Alliance has managed promotional activities for Central Business Improvement Assessment Areas (or districts) Numbers DA-8690-A, DA-8690- B, DA-8690-97, DA-CBID-00, DA-CBID-03, DA-CBID-06, DA-CBIA-10, DA-CBID- 13, DA-CBID-16, DA-CBIA-19 and DA-CBIA-22. The City intends to extend the existing management contract with the Downtown Alliance to manage the Assessment Area through April 2028, subject to the creation of the Assessment Area. ASSESSMENT RATE, FINANCIAL PLAN AND SOURCES AND USES OF FUNDS Funding from Assessments provides only a portion of the total budget for the Assessment Area’s programs and activities. The City anticipates that the manager of the Assessment Area will secure non-assessment funds from other sources such as grants, foundations, promotions, contributions, earned income, and sponsorships. In addition, the City anticipates that sponsors and contributors will pay directly to third-party providers a portion of the costs of some Economic Promotion Activities. These supplemental third- party payments are not reflected in the projected budget of the Assessment Area. Most, if not all, of these other sources of funds would not be available without the funding from the Assessments or the Economic Promotion Activities of the Assessment Area. Funds received from the Assessments and the estimated cost of the Economic Promotion Activities, as determined by a project engineer, are as follows: 6 Notice of Intent Resolution 4876-5491-9111, v. 3 Sources of Funds (for 3-year period) Base Assessment Revenue $5,581,298 Holiday Lighting Assessment Revenue $177,378 Total $5,758,676 Uses of Funds (annual basis) Contractor: Marketing and Events (16%)$853,600 Economic Development (27%)$1,422,300 Ambassador Program Homeless Services (33%)$1,663,200 General and Administrative (24%)$1,280,400 Contractor Total $5,219,500 Salt Lake City Administrative Costs and Reserve $377,093 Total $5,596,593 The Assessment is proposed to be levied on benefited property within the Assessment Area to pay for a portion of the Economic Promotion Activities according to the estimated benefits to the property from such activities. The Economic Promotion Activities will not be financed with bonds. PROPERTIES EXCLUDED FROM ASSESSMENT AREA ASSESSMENTS Residential, ecclesiastical, and government-owned properties shall be excluded from Assessments unless otherwise agreed to in writing by the City and the owners of such properties. Subject to the foregoing sentence, only business and commercial properties shall be assessed. In addition, any properties having a taxable value of less than $20,000 based upon the most recent real property assessment roll of Salt Lake County shall be excluded from Assessments. The determination of qualification for exclusion for ecclesiastical and government-owned property shall be based upon exemptions from ad valorem real property taxes for properties used by churches for non-commercial purposes and for properties owned and operated by governmental agencies. Inasmuch as the Assessment is intended to fund economic promotion activities, the City does not find any benefits for residential, ecclesiastical and/or governmental property excluded from the Assessment. BASIS FOR ASSESSMENT It is proposed to levy a one-time Assessment for a three-year period on property in the Assessment Area to pay all or a portion of the estimated costs of the Economic Promotion Activities within the Assessment Area. The Assessment shall not exceed the benefits derived by the properties within the Assessment Area. There shall be two assessment components: (i) an assessment based on the 2024 taxable property values (the “Base Assessment”), plus (ii) an assessment based on linear feet (except that corner lots will not be assessed for both frontages as applicable, only one) on certain properties with frontage on the Holiday Lighting Streets for special holiday lights (the “Holiday Lighting Assessment” and together with the Base Assessment, the “Assessment”). The City 7 Notice of Intent Resolution 4876-5491-9111, v. 3 anticipates that, in addition to revenues from the Assessment, the manager of the Assessment Area will utilize other funding resources, including revenues from grants, promotions, contributions, foundations, earned income, and sponsorships. PAYMENT OF ASSESSMENTS Assessments shall be payable in full or in three (3) annual installments (the “Assessment Installment” or “Installments”). If payable in three (3) Installments, the first Installment will fall due fifteen (15) days after the effective date of the ordinance levying the Assessment (the “Assessment Ordinance”). The total Assessment for the benefited property related to this notice is detailed in the cover letter accompanying this notice. The first Installment is currently estimated to be due on approximately May 6, 2025. The second and third Installments will fall due on the first and second anniversary dates of the first Installment. If any Installment is not paid by the due date, the unpaid Installment(s) will accumulate delinquent interest and/or charges in accordance with the Assessment Ordinance and State law. The Assessments will be collected by directly billing property owners. The City doesn’t currently expect any adjustments to the Assessments for changes in costs associated with Economic Promotion Activities. The City will ensure that no Assessments will be collected and used for purposes other than those described in this Notice. PUBLIC HEARING The City Council shall hold a public hearing on September 3, 2024 at 7:00 p.m. at the Council Chambers at 451 South State Street in Salt Lake City, Utah to hear all objections related to the Assessment Area and all persons desiring to be heard, as set forth in the Act. TIME FOR FILING PROTESTS PROTESTS FROM PROPERTY OWNERS OBJECTING TO THE ASSESSMENT AREA DESIGNATION OR OBJECTING TO BEING ASSESSED FOR THE PROPOSED ECONOMIC PROMOTION ACTIVITIES MUST BE FILED IN WRITING WITH THE CITY RECORDER OF SALT LAKE CITY EITHER IN PERSON DURING REGULAR BUSINESS HOURS MONDAY THROUGH FRIDAY OR BY MAIL (PO BOX 145515) ON OR BEFORE 5:00 P.M. ON NOVEMBER 4, 2024. To be counted against the creation of the Assessment Area, protests or objections MUST BE IN WRITING, signed by the owners of the property proposed to be assessed. The written protest must describe or otherwise identify said property. If the aggregate taxable value of property that is the subject of timely filed written protests represents at least 40% of the aggregate taxable value of all property within the Assessment Area, the City Council will not impose the Base Assessment and if the linear feet frontage of the Holiday Lighting Streets (except that corner lots will not apply for both frontages as applicable, only one) that is the subject of timely filed written protests represents at least 40% of the aggregate linear feet frontage of Holiday Lighting Streets assessed within the Assessment Area, the City Council will not impose the Holiday Lighting Assessment. 8 Notice of Intent Resolution 4876-5491-9111, v. 3 Protests withdrawn prior to the expiration of the protest period and protests from areas deleted from the Assessment Area will not be counted against the creation of the Assessment Area. On Tuesday, November 12, 2024 (such date being within 15 days after the date the protest period expires), at 7:00 p.m. at the Council Chambers at 451 South State Street in Salt Lake City, Utah, the City Council shall count the written protests filed and calculate whether adequate protests have been filed and hold a public meeting to announce the protest tally and whether adequate protests have been filed. To stay informed on the electronic means or physical location of the City Council’s hearings and meetings, please visit www.slc.gov/council/agendas. The City shall post the total and percentage of the written protests it has received on its website at least five days before such meeting. BY RESOLUTION OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH /s/ Cindy Lou Trishman City Recorder 9 Notice of Intent Resolution 4876-5491-9111, v. 3 Councilmember seconded the motion to adopt the foregoing resolution. The motion and resolution were unanimously adopted on the following recorded vote: AYE: NAY: 10 Notice of Intent Resolution 4876-5491-9111, v. 3 After the conduct of other business not pertinent to the above, the meeting was, on motion duly made and seconded, adjourned. (SEAL) By: Chair ATTEST: By: City Recorder 11 Notice of Intent Resolution 4876-5491-9111, v. 3 PRESENTATION TO THE MAYOR The foregoing resolution was presented to the Mayor for her approval or disapproval on July , 2024. By: Chair MAYOR’S APPROVAL OR DISAPPROVAL The foregoing resolution is hereby approved on this July , 2024. By: Mayor 12 Notice of Intent Resolution 4876-5491-9111, v. 3 STATE OF UTAH ) : ss. COUNTY OF SALT LAKE ) I, Cindy Lou Trishman, the duly chosen, qualified, and acting City Recorder of Salt Lake City, Utah, do hereby certify as follows: (a) That the foregoing typewritten pages constitute a full, true, and correct copy of the record of proceedings of the City Council at a regular meeting thereof held in Salt Lake City on July 9, 2024, at 7:00 p.m., insofar as said proceedings relate to the consideration and adoption of a resolution declaring the intention of the City Council to designate the Salt Lake City, Utah Central Business Improvement Assessment Area No. DA-CBIA-25 to provide economic promotion activities therein described as the same appears of record in my office; that I personally attended said meeting, and that the proceedings were in fact held as in said minutes specified. (b) That due, legal, and timely notice of said meeting was served upon all members as required by law and the rules and ordinances of Salt Lake City. (c) That the above resolution was provided to my office on July 9, 2024, has been recorded by me, and is a part of the permanent records of Salt Lake City, Utah. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and affixed the seal of Salt Lake City, Utah, this , 2024. (SEAL) By: City Recorder 13 Notice of Intent Resolution 4876-5491-9111, v. 3 STATE OF UTAH ) AFFIDAVIT OF MAILING : ss. NOTICE OF INTENTION COUNTY OF SALT LAKE ) I, Cindy Lou Trishman, the duly chosen, qualified, and acting City Recorder of Salt Lake City, Utah (the “City”), do hereby certify that a Notice of Intention to Designate Assessment Area (the “Notice of Intention”) was approved and adopted in the proceedings of the City Council held on Tuesday, July 9, 2024. I further certify that the Notice of Intention was published as a Class B Notice under Section 63G-30-102, Utah Code Annotated 1953, as amended, for at least 20 days but not more than 35 days before the date of the public hearing (September 3, 2024). I further certify that on , 2024, I mailed a true copy of the Notice of Intention by United States Mail, postage prepaid to each owner of land to be assessed within the proposed Assessment Area at the last known address of such owner, using for such purpose the names and addresses appearing on the last completed real property assessment rolls of Salt Lake County, and in addition I mailed on the same date a copy of said Notice of Intention addressed to “Owner” addressed to the street number, post office box, rural route number, or other mailing address of each piece of improved property to be affected by the assessment. I further certify that a certified copy of said Notice of Intention, together with profiles of the improvements or economic promotion activities and a map of the proposed Assessment Area, was on file in my office for inspection by any interested parties. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of Salt Lake City, Utah, this , 2024. (SEAL) By: City Recorder 14 Notice of Intent Resolution 4876-5491-9111, v. 3 CERTIFICATE OF COMPLIANCE WITH OPEN MEETING LAW I, Cindy Lou Trishman, the undersigned City Recorder of Salt Lake City, Utah, do hereby certify, according to the records of the City Council of Salt Lake City, Utah (the “City Council”) in my official possession, and upon my own knowledge and belief, that in accordance with the requirements of Section 52-4-202, Utah Code Annotated 1953, as amended, I gave not less than twenty-four (24) hours public notice of the agenda, date, time, and place of the July 9, 2024, public meeting held by the City Council as follows: (a) By causing a copy of such Notice, in the form attached hereto as Schedule 1, to be delivered to the Salt Lake Tribune on July , 2024, at least twenty-four (24) hours prior to the convening of the meeting; and (b) By causing a copy of such Notice to be posted on the Utah Public Notice Website (http://pmn.utah.gov) at least twenty-four (24) hours prior to the convening of the meeting. In addition, the Notice of 2024 Annual Meeting Schedule for the City Council (attached hereto as Schedule 2) was given specifying the date, time, and place of the regular meetings of the City Council to be held during the year, by causing said Notice to be (a) provided to at least one newspaper of general circulation within Salt Lake City, Utah, on , 2024, and (b) published on the Utah Public Notice Website (http://pmn.utah.gov) during the current calendar year. IN WITNESS WHEREOF, I have hereunto subscribed my official signature this July 9, 2024. (SEAL) By: City Recorder 15 Notice of Intent Resolution 4876-5491-9111, v. 3 SCHEDULE 1 MEETING NOTICE 16 Notice of Intent Resolution 4876-5491-9111, v. 3 SCHEDULE 2 ANNUAL MEETING NOTICE Notice of Intent Resolution 4876-5491-9111, v. 3 EXHIBIT A A-1