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HomeMy WebLinkAboutProposed Resolution - 3/3/20251 COMMUNITY REINVESTMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. ___________ Pickle & Hide Tax Increment Reimbursement Agreement RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REINVESTMENT AGENCY OF SALT LAKE CITY APPROVING A TAX INCREMENT REIMBURSEMENT AGREEMENT WITH MOUNTAIN WEST DEVELOPMENT, LLC FOR ITS PICKLE AND HIDE DEVELOPMENT WHEREAS, the Utah Housing and Transit Reinvestment Zone Act (HTRZ Act) was enacted to further a number of objectives including promoting a higher utilization of public transit and increasing the availability of housing including affordable housing. WHEREAS, on November 8, 2023, and pursuant to Utah Code Section 63N-3-605, the state’s Housing and Transit Reinvestment Zone Committee conditionally approved the CRA’s 900 South Housing Transit Reinvestment Zone (Project Area). WHEREAS, pursuant to the Act, the Salt Lake City Community Reinvestment Agency (CRA) administers the tax increment, including entering into reimbursement agreements (also known as tax increment reimbursement agreements) with project developers or property owners associated with an HTRZ Committee approved Housing and Transit Reinvestment Zone (HTRZ) for the purpose of utilizing the funds as allowed by the HTRZ Act. WHEREAS, pursuant to CRA Resolution No. R-16-2023, the CRA has established a tax increment reimbursement policy for Housing and Transit Reinvestment Areas (TI Policy) that sets forth the policies and procedures for entering into an Agreement with developers. WHEREAS, Mountain West Development, LLC (Developer) intends to develop land at approximately 800 South and 400 West within the Project Area (Property) and more particularly described in Exhibit B, with a mixed-use affordable housing development known as Pickle & Hide which incorporates affordable housing and adaptive reuse of historic buildings. WHEREAS, Developer submitted an application for tax increment reimbursement for its Picke & Hide project which CRA staff determined meets the TI Policy’s threshold requirements. WHEREAS, on February 12, 2025, the CRA Finance Committee evaluated Developer’s application materials and other documentation, and based on that evaluation, recommended to the Board that the Board approve a reimbursement of HTRZ increment from the Property to Developer in the maximum amount of $6,094,254. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY, that the term sheet for the tax increment reimbursement between the CRA and Developer which is attached hereto as Exhibit A is hereby approved. 2 The Board hereby authorizes the Executive Director to negotiate and execute a tax increment reimbursement agreement with Developer pursuant to the terms of the attached 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 Salt Lake City Community Reinvestment Agency, this _______ day of March 2025. ________________________________ Darin Mano, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Jennifer Huntsman Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder 2/28/2025 3 EXHIBIT A Mountain West Development, LLC Tax Increment Reimbursement Agreement TERM SHEET Parties: Mountain West Development, LLC (“Developer”) and the Community Reinvestment Agency of Salt Lake City (“CRA”) Scope: The Pickle and Hide development is a mixed-use project located in the CRA’s 900 South HTRZ to be constructed in two phases located at approximately 739 S. 400 West. Phase I includes the renovation of the Bissinger Co. Hides building, including the preservation of its front façade and a portion of its side walls for a total of 40% of the exterior, to accommodate 5,500 square feet of commercial space and a multifamily addition to the rear. The residential addition will include 141 units, 28 of which are affordable at 60% of the area median income (AMI) and below and 26 of which are affordable at 80% AMI. Phase II includes the renovation of the Utah Pickle Co. building to accommodate 17,000 square feet of commercial space as well as the renovation of the existing building known as Ed’s Restaurant located at 345 W. 700 South for additional commercial space. Each of the buildings include an activated ground floor use where at least 50% of the ground floor, street- facing building facades contain an active use not exclusive to building tenants. The Developer has provided sufficient evidence that tax increment is necessary for the project to succeed to subsize a portion of revenue loss from affordable rental rates and increased buildings costs associated with adaptive reuse projects. Property: Developer desires to carry out development activities on three existing parcels including P.I.N.s: 15-12-130-037, 15-12-130-034, and 15-12-130-03. Legal descriptions to be included within final agreement. CRA Participation: The CRA will agree to reimburse the Developer 90% of the annual tax increment (“TI”) the CRA is entitled to receive from the taxing entities, subject to the terms of the Reimbursement Agreement, for a term of 15 years or the sum of the remaining collection years of the Housing and Transit Reinvestment Zone, whichever is less. To obtain this 90% reimbursement, the project has included three additional public benefits above and beyond the CRA HTRZ Tax Increment Reimbursement policy’s thresholds, each worth an additional 10% reimbursement including: 1) Adaptive Reuse 2) Walkability 3) Neighborhood Commercial and Services (FY25 annual housing funding priority) Maximum Reimbursement The maximum amount available for reimbursement shall be $6,094,254 (“Maximum Reimbursement”). The annual TI Payment may be lower or higher than the projected amount based on actual increment generated from the Property, provided, however, the maximum total amount of the Reimbursement shall not exceed the Maximum Reimbursement. 4 CRA Policy Waivers 1. Section 2.c.i. of the CRA’s HTRZ Tax Increment Reimbursement Program Policy that requires a deed restriction be recorded against the property to ensure housing affordability for a minimum term of 30 years may be waived and reduced to a minimum term of 15 years. 2. Section 3.a.b. of the CRA’s Sustainable Development Policy that requires emission-free building operation for all adaptive reuse projects receiving over $900,000 in CRA funding may be waived for the designated restaurant spaces in Phase I and Phase II of the project to accommodate gas stovetops. The rest of the project must comply with the policy and operate without on-site fossil fuel combustion. 3. Section 4.a.ii. of the CRA’s Sustainable Development Policy that requires projects to achieve “on-site net zero” operation may be waived; however, the project must achieve “off-site net zero” standards in this requirement’s place at the level described as part of the conditions of approval. Conditions for Agreement Execution: 1. CRA approves all terms of the agreement. 2. Developer must submit a Statement of Energy Design Intent for both the “Pickle” and “Ed’s Restaurant” buildings achieving a score of 90 or higher. 3. Developer must participate in Rocky Mountain Blue Sky renewable energy program at a level to cover energy needs for the commercial space, common areas, and parking garage a part of Phase I of the project for a minimum contribution of $350 a month. 4. Developer must submit a copy of the executed easement granting public access to the midblock walkway between the Pickle and Hide building. 5. Developer obtains all required City approvals. 6. Developer and CRA execute legal documents as deemed necessary by the CRA and its legal counsel. 7. Developer receives approval from the CRA 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. 8. Such other terms as recommended by the CRA’s legal counsel and staff. 5 EXHIBIT B Pickle & Hide Development – Legal Description PARCEL 1: A PARCEL OF LAND LOCATED IN LOT 6, BLOCK 12, PLAT A, SALT LAKE CITY SURVEY, SAID PARCEL BEING DESCRIBED MORE PARTICULARLY AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 6, AND RUNNING THENCE NORTH 89°56'38" EAST 121.00 FEET ALONG THE NORTH LINE OF SAID LOT 6; THENCE SOUTH 0°01'22" EAST 212.00 FEET; THENCE SOUTH 89°58'39" WEST 121.01 FEET TO A POINT ON THE WEST LINE OF SAID LOT 6; THENCE NORTH 0°01'09" WEST 211.93 FEET ALONG SAID WEST LINE TO THE POINT OF BEGINNING. PARCEL 2: A PARCEL OF LAND LOCATED IN LOTS 4, 5 & 6, BLOCK 12, PLAT A, SALT LAKE CITY SURVEY, SAID PARCEL BEING DESCRIBED MORE PARTICULARLY AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 4, SAID POINT ALSO BEING THE SOUTHWEST CORNER OF SAID LOT 5, AND RUNNING THENCE SOUTH 89°56'39" WEST 5.42 FEET ALONG THE WEST EXTENSION OF THE COMMON LINE OF SAID LOTS 4 AND 5 TO THE EAST RIGHT OF WAY LINE OF 400 WEST STREET; THENCE NORTH 0°00'58" WEST 147.30 FEET ALONG SAID RIGHT OF WAY LINE; THENCE NORTH 89°54'38" EAST 170.43 FEET TO A POINT ON THE EAST LINE OF SAID LOT 5, SAID POINT BEING SOUTH 0°01'09" EAST 185.22 FEET ALONG SAID EAST LINE FROM THE NORTHEAST CORNER OF SAID LOT 5; THENCE SOUTH 0°01'09" EAST 29.21 FEET ALONG THE EAST LINE OF SAID LOT 5; THENCE NORTH 89°58'39" EAST 121.01 FEET; THENCE NORTH 89°56'38" EAST 44.00 FEET TO A POINT ON THE EAST LINE OF SAID LOT 6, SAID POINT BEING SOUTH 0°01'21'' EAST 212.00 FEET ALONG SAID EAST LINE FROM THE NORTHEAST CORNER OF SAID LOT 6; THENCE SOUTH 0°01'21" EAST 118.11 FEET ALONG SAID EAST LINE TO THE SOUTHEAST CORNER THEREOF; THENCE SOUTH 89°56'39" WEST 190.31 FEET ALONG THE COMMON LOT LINES OF SAID LOTS 4, 5 & 6; THENCE SOUTH 0°00'05" WEST 30.11 FEET; THENCE NORTH 76°31'25" WEST 67.50 FEET; THENCE SOUTH 80°00'58" WEST 75.23 FEET TO A POINT ON THE WEST LINE OF SAID LOT 4; THENCE NORTH 0°00'58" WEST 27.29 FEET ALONG SAID WEST LINE TO THE POINT OF BEGINNING. PARCEL 3: A PARCEL OF LAND LOCATED IN LOTS 3 & 4, BLOCK 12, PLAT A, SALT LAKE CITY SURVEY, SAID PARCEL BEING DESCRIBED MORE PARTICULARLY AS FOLLOWS: BEGINNING AT A POINT ON THE WEST LINE OF SAID LOT 4, SAID POINT BEING SOUTH 0°00'58" EAST 27.29 FEET ALONG SAID WEST LINE FROM THE NORTHWEST CORNER OF SAID LOT 4, AND RUNNING THENCE NORTH 80°00'58" EAST 75.23 FEET; THENCE SOUTH 76°31'25" EAST 67.50 FEET; THENCE NORTH 0°00'05'' EAST 30.11 FEET TO A POINT ON THE NORTH LINE OF SAID LOT 4; THENCE NORTH 89°56'39'' EAST 107.80 FEET ALONG THE NORTH LINE OF SAID LOTS 3 & 4; THENCE SOUTH 0°01'15" EAST 165.06 FEET; THENCE SOUTH 89°56'40" WEST 247.54 FEET TO A POINT ON SAID WEST LINE OF LOT 4; THENCE NORTH 0°00'58" WEST 137.76 FEET ALONG SAID WEST LINE TO THE POINT OF BEGINNING. ATTACHMENT B: CRA HOUSING AND TRANSIT REINVESTMENT ZONE (HTRZ) POLICY ALIGNMENT PICKLE AND HIDE COMMUNITY REINVESTMENT AGENCY OF SALT LAKE CITY HOUSING AND TRANSIT REINVESTMENT ZONE TAX INCREMENT REIMBURSEMENT PROGRAM POLICY 2.0 Requirements and Structure SECTION DESCRIPTION PICKLE AND HIDE APPLICABILITY a. Threshold requirements of projects that incorporate housing: i. Projects must meet all applicable standards and objectives of the HTRZ Act and the approved HTRZ (per the State’s condition of approval, the 900 South HTRZ requires 20% of housing units be affordable to 60% the Area Median Income -AMI- and below). Yes, 20% of 28 of the 141 residential units will be affordable at 60% AMI and 18% or 26 of the units will also be affordable at 80% AMI. ii. At least 10% of housing units within a project must be affordable to those earning 60% the AMI and below, or, 20% of units must be affordable to those earning 80% AMI and below. Yes, 20% of 28 of the 141 residential units will be affordable at 60% AMI and 18% or 26 of the units will also be affordable at 80% AMI. iii. Projects must include activated, ground floor space if not a private residence. Activated, ground floor space means a minimum of 50% of all ground floor, street-facing building facades must contain an active (commercial, retail, or office) use that is not exclusive to the tenants of the building. Yes, the ground floor of the Hide building includes a lobby and commercial uses, the Pickle building includes commercial uses, and Ed’s Restaurant will be a commercial use. There is also a midblock walkway between the Pickle and Hide building open to the public and activated with outdoor dining. iv. Projects must comply with the RDA’s Sustainable Development Policy including: •ENERGY STAR score of 90+ •All-electric buildings •On-site solar, OR, participation in Rocky Mountain Blue Sky A waiver from the sustainable development policy is being requested including: 1.Utilizing natural gas for restaurant spaces in the Pickle and Hide buildings. 2.Installing on-site solar and participating in Rocky Mountain Blue Sky. Staff recommends the condition of approval that the developer participates in Rocky Mountain Blue Sky at a level to cover energy needs for the commercial space, common areas, and parking garage and that a Statement of Energy Design Intent with a score of at least 90 is submitted for the Pickle building and Ed’s Restaurant. v. The applicant must provide sufficient evidence (including, but not limited to the project pro forma, senior lender agreement(s), equity investor agreements, etc.) that tax increment funding is necessary for the project to succeed and to verify that the request is reasonable. The Developer has described a funding gap of over $10 million due to the lower rental revenue from affordable housing units and increased construction costs to preserve portions of the Pickle and Hide buildings. They state: “the HTRZ credits are a requirement for both the Senior Loan and Preferred Equity as well as being essential to achieve the cashflow necessary to support the conservative leverage from the Senior Loan and the alternative financing (Preferred Equity). Without the full 90% HTRZ credits, the project would not be able to move forward with the necessary Senior Loan ($45M) and Preferred Equity ($10.3M). In order to meet the Preferred Equity return hurdles, Blaser Ventures is [deferring]~50% of its development fee on top of the cash flow that is coming from the property and HTRZ credits.” c. Affordable housing requirements i. Deed Restriction – If the project qualifies for a Reimbursement based on the incorporation of housing, prior to executing an Agreement, a restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for at least 30 years. A waiver is being requested to reduce the deed restriction’s affordability period from 30 to 15 years. ii. Bedroom Count Mix – The affordable units shall be located on different floors of the building and spread among bedroom counts (1- bedroom, 2-bedroom, 3-bedroom, etc.) in the same proportion as the units available within the rest of the project. Yes, the applicant has submitted floor plans illustrating a mix of unit sizes and confirmed that affordable units will not be clustered in one location. The bedroom count mix is as follows: Affordable Units: 28 (20%) at 60% AMI •Efficiency/Studio Units: 4 (11%) •1 Bedrooms: 19 (70%) •2 Bedrooms: 5 (18%) Affordable Units: 26 (18%) averaging 80% AMI •Efficiency/Studio Units: 3 (11%) •1 Bedrooms: 18 (70%) •2 Bedrooms: 5 (18%) Market Rate Units: 87 (62%) •Efficiency/Studio Units: 9 (11%) •1 Bedrooms: 62 (70%) •2 Bedrooms: 16 (18%) d. Eligible Project Locations – Eligible projects shall be located in or associated with an active HTRZ that Yes, the project is located in the 900 South HTRZ. allows tax increment reimbursements pursuant to the HTRZ Act. e. Maximum Reimbursement Term – The Reimbursement term will be negotiated based upon a project’ s level of public benefits and demonstrated financial need and shall be consistent with the HTRZ Act. The reimbursement term is 15 years beginning in 2026. f. Maximum Reimbursement Rate – Base level = 60% Projects may be eligible to receive an additional 10% increase in the reimbursement rate for meeting elements listed below, with each element being worth an additional 10%. The possible total maximum reimbursement rate is 90%. 1. Incorporating Qualifying Livability Benchmarks in the project beyond the Threshold Requirements. 2. Providing an additional 10% of total affordable units at 60% AMI and below beyond the Threshold Requirements. 3. The inclusion of 3- and 4- bedroom units in projects that incorporate housing. 4. Meeting a priority identified in the CDA’s Annual Housing Funding Strategy established pursuant to the Housing Allocation Funds Policy. In addition to meeting the threshold requirements to achieve the base level reimbursement of 60%, the project also meets the three following requirements to achieve a 90% reimbursement rate. 1. Building preservation, rehabilitation, or adaptive reuse livability benchmark that requires the preservation, rehabilitation, or repurposing an existing structure for a land use that contributes positively to the surrounding neighborhood. 2. Walkability livability benchmark that requires the project improves the vibrancy, safety, and/or comfort of the pedestrian experience by providing at least two of the following: • New, publicly-accessible pedestrian connections; • Significant improvements to an existing sidewalk or walkway such as pedestrian-scaled lighting, seating, landscaping and shade; or, • Significant street level building transparency and activity 3. Annual housing funding strategy priority – the project meets the FY25 priority of “neighborhood and commercial services” described as promoting an array of commercial spaces that support the neighborhoods, such as daycares, restaurants, and retail spaces, which this development includes. g. Maximum Reimbursement Amount The maximum reimbursement amount will be negotiated based upon a project’s eligible costs, level of public benefits, and demonstrated financial The maximum reimbursement amount is $6,094,254. need, and shall be consistent with the HTRZ and HTRZ Act. State of Utah - Housing and Transit Reinvestment Zone Act 63N-3-603. Applicability, requirements, and limitations on a housing and transit reinvestment zone. SECTION DESCRIPTION PICKLE AND HIDE APPLICABILITY (2)(a)In order to accomplish the objectives described in Subsection (1), a municipality or public transit county that initiates the process to create a housing and transit reinvestment zone as described in this part shall ensure that the proposal for a housing and transit reinvestment zone includes: i.(A) Up to 9% of the proposed dwelling units occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the median gross income of the applicable municipal or county statistical area for households of the same size. 18% or 26 of the units will also be affordable at 80% AMI. i.(B) At least 3% of the proposed dwelling units occupied or reserved for occupancy by households with a gross household income equal to or less than 60% of the median gross income of the applicable municipal or county statistical area for households of the same size. 20% of 28 of the 141 residential units will be affordable at 60% AMI. ii.(A) At least 51% of the developable area within a housing and transit reinvestment zone as residential uses. Yes, more than half of the project’s square footage or approximately 228,000 square feet is dedicated to residential use. ii.(B) An average of at least 50 dwelling units per acre within the acreage of the housing and transit reinvestment zone dedicated to residential uses. Yes, the project achieves a residential density of 56.4 units per acre. iii. Mixed-use development. Yes, this is a mixed-use project with residential, retail and restaurant space. iv. A mix of dwelling units to ensure that a reasonable percentage of the dwelling units has more than one bedroom. Yes, this project includes a mix of studios, 1- bedroom and 2-bedroom units, 18% being 2- bedroom units. ATTACHMENT C: ATTACHMENT D: Tax Increment Budget Jan-25 Jan-26 Jan-27 Jan-28 Jan-29 Jan-30 Jan-31 Jan-32 Jan-33 Jan-34 Jan-35 Jan-36 Jan-37 Jan-38 Jan-39 Jan-40 Jan-41 2025 2026 2027 2028 2029 2,030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 YEAR 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Taxable Value - - 56,095,985 56,656,945 57,223,514 57,795,749 58,373,707 58,957,444 59,547,018 60,142,488 60,743,913 61,351,352 61,964,866 62,584,514 63,210,360 63,842,463 64,480,888 Taxes - - 566,305 571,968 577,688 583,465 589,299 595,192 601,144 607,156 613,227 619,360 625,553 631,809 638,127 644,508 650,953 2022 Taxable Value - - 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 1,997,700 2022 Taxes - - 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 20,167 Increment before Fees - - 546,138 551,801 557,521 563,297 569,132 575,025 580,977 586,988 593,060 599,192 605,386 611,641 617,960 624,341 630,786 Less Tax Collection Loss - - 10,923 11,036 11,150 11,266 11,383 11,501 11,620 11,740 11,861 11,984 12,108 12,233 12,359 12,487 12,616 CRA Increment (after 80% reduction) - - 428,172 432,612 437,096 441,625 446,200 450,820 455,486 460,199 464,959 469,767 474,623 479,527 484,480 489,483 494,536 less Admin Fee - - 8,563 8,652 8,742 8,833 8,924 9,016 9,110 9,204 9,299 9,395 9,492 9,591 9,690 9,790 9,891 Total Increment - - 419,609 423,960 428,354 432,793 437,276 441,803 446,376 450,995 455,660 460,371 465,130 469,936 474,791 479,694 484,645 Increment Net of Coverage - - 419,609 423,960 428,354 432,793 437,276 441,803 446,376 450,995 455,660 460,371 465,130 469,936 474,791 479,694 484,645 % Funds to Project (Annual CF) - - 377,648 381,564 385,519 389,513 393,548 397,623 401,739 405,896 410,094 414,334 418,617 422,943 427,312 431,724 436,181 Bond Admin Fee - - - - 27,061 27,602 28,154 28,717 29,291 29,877 30,475 31,084 31,706 32,340 32,987 33,647 34,320 Trustee Fee - - - - 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 TOTAL PROCEEDS IF BONDED - - 377,648 381,564 354,458 357,911 361,394 364,906 368,447 372,018 375,619 379,250 382,911 386,603 390,325 394,077 397,861 - - 75,530 76,313 77,104 77,903 78,710 79,525 80,348 81,179 82,019 82,867 83,723 84,589 85,462 86,345 87,236 ATTACHMENT E: i Salt Lake City Community Redevelopment Agency Danny Walz 451 S State St Salt Lake City, UT 84111 January 31, 2025 Dear Danny, We are pleased to submit our application for the Housing and Transit Reinvestment Zone (HTRZ) tax incentive program, a vital component to realizing our vision for a transformative mixed-use development in the Granary District. This project aligns closely with the goals of both the City/CRA and the legislature to foster dense, mixed-use, walkable, sustainable, and community-focused development adjacent to the most transit-rich site in Utah. It further supports strategic planning initiatives by creating substantial housing opportunities, activating the area with vibrant commercial uses, and preserving its unique character through adaptive reuse of historic structures. To ensure the feasibility of the Pickle & Hide project and its contributions to the Granary District’s revitalization, we respectfully request the following considerations: 1.Full 90% HTRZ Tax Incentive: The project’s ambitious scope and commitment to public benefits such as historic preservation, activated public spaces, and affordable housing require significant financial support. The full allocation of the HTRZ tax incentive is essential to bridge the funding gap and ensure this development can move forward. 2.Waiver of the CRA's Net Zero Sustainability Requirement: We are deeply committed to sustainability and have incorporated a comprehensive set of measures to minimize the project’s environmental impact, including: Adaptive reuse of historic structures, preserving embodied carbon and reducing construction waste. All-electric residential design, eliminating fossil fuel reliance for heating, cooling, and appliances. High energy performance, with the project achieving an ENERGY STAR score of 92 for new construction. Efficient design that maximizes energy conservation through passive strategies, including optimized building orientation, natural daylighting, and enhanced ii insulation. Low-carbon materials that reduce embodied carbon and promote sustainable construction practices. Walkability and transit-oriented development, reducing car dependence and encouraging sustainable mobility choices. While these strategies significantly reduce the project's carbon footprint, achieving full net zero is not feasible due to the site’s constraints—specifically, the inability to generate sufficient energy on-site and the financial burden of purchasing off-site credits. However, by prioritizing electrification, efficiency, and sustainable materials, we are taking meaningful steps toward a low-carbon, high-performance development that aligns with the City's broader climate goals. 3.While we strongly support sustainability principles, the unique site conditions make achieving net zero infeasible due to the inability to generate enough energy on-site and the financial burden of purchasing off-site credits. However, we are committed to incorporating high-performance materials, energy-efficient design, electrification of the site and adaptive reuse strategies that significantly reduce the project's environmental impact. 4.15-Year Deed Restriction for Affordable Units: To match the tax incentive program's duration, we propose a 15-year deed restriction on the 20% affordable units at 60% AMI. This ensures long-term affordability while maintaining financial feasibility for the project. We want to note that this affordability is being created with the HTRZ as the only subsidy option. No tax credits or other subsidies are being utilized to create these units. The Pickle & Hide project exemplifies the vision of the HTRZ program and the Granary District Area Plan by promoting housing opportunities, activating the neighborhood with a vibrant commercial mix, and supporting transit-oriented growth. Approximately 60% of the development’s land area is dedicated to housing, with nearly 40% of units as affordable, complemented by public spaces, retail, and adaptive reuse of historical structures. We are dedicated to working collaboratively with the CRA and Salt Lake City to establish a framework for this program that not only supports this project but also serves as a model for future developments in the Granary District. By working together, we can advance the area's transformation into a walkable, sustainable, and inclusive community that fully embraces the multitude of transportation options available in this area. iii Confidentiality Notice: Pursuant to Utah Code Ann. §§ 63G-2-305 and in accordance with Utah Code Ann. §§ 63G-2- 309, the undersigned asserts a claim of business confidentiality to protect the information presented in Attachments 1–3 as proprietary. The following reasons support this claim for business confidentiality: •Reason A: The information contains trade secrets as defined in Utah Code Ann. §§ 63G- 2-305(1). •Reason B: The information includes commercial or non-individual financial data as defined in Utah Code Ann. §§ 63G-2-305(2) and (4). Thank you for your consideration. We look forward to discussing this proposal further and are happy to provide additional information as needed. Sincerely, Brandon Blaser Founder & President Blaser Ventures 386 W 500 S, Suite 100 Salt Lake City, UT 84101 t. 214.235.8778 brandon@blaser-ventures.com 1 RDA TIR/HTRZ Application Pickle and Hide (Phase I & II) I.PROJECT SUMMARY PARCEL NUMBERS: 15-12-130-037-0000 (Hide Apartments, 737 S 400 W) 15-12-130-034-0000 (Pickle Building, 741 S 400 W) 15-12-130-027-0000 (Ed’s Place, 345 W 700 S) DATE: January 7, 2025 TOTAL PROJECT COST: Approx. $90,017,722 Phase I: $77,258,605, Phase II: $12,759,117 ESTIMATED FINANCIAL GAP: $6.1M of cash flow support over a 15-year term from HTRZ credits. The capital stack consists of $35M of Common Equity, $45M Senior Loan, $10.3M of Preferred Equity. The Senior Loan and Preferred Equity is contingent on the full requested HTRZ credits and the cash flow that this would bring to the project annually. Without these credits, Blaser Ventures would not be able to fill the capital stack and move forward with the project. TIMELINE - PROPOSED PROJECT START/END DATE: Phase I - February 2024/June 2026, Phase II – May 2025/June 2026 PROJECT ADDRESSES: 737, 739 & 741 S 400 W, 345 W 700 S, Salt Lake City, UT 84101 CONTACT: Brandon Blaser, brandon@blaser-ventures.com, (214) 235-8778 II.APPLICANT SUMMARY APPLICANT & OWNERSHIP: Mountain West Development LLC 386 West 500 South, Suite 100 Salt Lake City, UT 84101 Tax ID 35-2677318 III.DEVELOPMENT OVERVIEW PROJECT SUMMARY: Pickle & Hide is a new Granary District development that will be constructed in two phases. Phase I will include the new construction of 141 multifamily units, 5,500 square feet of ground floor retail, and a 3-story parking structure with 164 stalls. Phase I will also feature the renovation and preservation of 100% of the front façade and 40% of the exterior of the historical Bissinger Co. Hides (“Hide”) building, which will serve as the entry point for the multifamily and retail. In Phase II of the project, the historical Utah Pickle Co. (“Pickle”) building will undergo an adaptive reuse renovation, restoration and replication and will be 2 repurposed as approximately 14,500 square feet of retail/commercial space. The Project will transform an area that has historically been the industrial/manufacturing hub of Salt Lake City into a dynamic mixed-use, mixed-income, adaptive reuse development interconnected with pedestrian-oriented walkways and public spaces. Ed’s Place, a ~2,500- square-foot beloved former restaurant on 700 S will also be part of the project’s adaptive reuse. The one-story brick structure will be restored to its original façade, abandoning the deteriorating, orange-shingled overhang and Italian flag striped canopy. CONSTRUCTION TYPE: Renovation/Rehabilitation of Existing Structures, Energy-Efficient Upgrades, New Construction, Select Demolition of Existing Structures. LAND AREA: 2.55 acres BUILDING AREA: Approx. 228,000 square feet, including 141 Mixed-Income Units, parking, amenities, 5,500 square feet Retail (Phase I) and approx. 17,000 square feet Adaptive Reuse Commercial/Retail (Phase II) LAND USE MIX: 20% of the residential units will be affordable at 60% AMI per threshold requirement with an additional 18% averaging 80% AMI. The affordable units will be dispersed throughout the building and mirror the unit mix of the market rate apartments. Hide Apartments: • 141 Mixed Income Residential Units o Affordable Units: 28 (20%) at 60% AMI §Efficiency/Studio Units: 4 (11%) §1 Bedrooms: 19 (70%) §2 Bedrooms: 5 (18%) o Affordable Units: 26 (18%) averaging 80% AMI §Efficiency/Studio Units: 3 (11%) §1 Bedrooms: 18 (70%) §2 Bedrooms: 5 (18%) o Market Rate Units: 87 (62%) §Efficiency/Studio Units: 9 (11%) §1 Bedrooms: 62 (70%) §2 Bedrooms: 16 (18%) •5,500 square feet Retail/Food & Beverage • 164 Parking Stalls (structured) Pickle Building (Adaptive Reuse) •14,500 square feet Commercial, Retail/Food & Beverage • 12 Parking Stalls (surface) Ed’s Place (Adaptive Reuse) 3 • 2,500 square feet Commercial • 60 Parking Stalls (surface) Public and Open Space • Public: ~30,000 square feet – 22,000 square feet midblock connectivity and programmable outdoor space, 4,500 square feet for Pickle frontage, 2,500 square feet for Ed’s sidewalk, 500 square feet Hide 400 W frontage • Retail Patio Outdoor Space: ~4,500 square feet CURRENT AND PROPOSED ZONING: General Commercial, no proposed zone change IV. ELIGIBILITY PROJECT LOCATION: Granary District, 900 South HTRZ V. PROJECT OBJECTIVES 1. ALIGNMENT WITH MOST RECENT PROJECT AREA PLAN (Granary District Area Plan Vision and Goals): Alignment with Granary District Area Plan Vision and Goals Vision: To improve mobility and circulation for the Granary District by responding to development patterns, existing and future transit service, walking and biking connectivity, and public right-of-way opportunities. Goal 1: Foster Inclusive and Welcoming Community Connections ● Community-Centric Public Spaces: The project has a recorded public midblock walkway easement, promoting outdoor public spaces that encourage social interaction and enhance neighborhood identity for all ages and abilities. This area will facilitate pedestrian connections from 400 W to 700 S as well as to Kilby Court and include approximately 20,000 square feet of accessible retail and restaurant space. Goal 2: Identify Gaps and Barriers for People Moving to and through the district ● Enhanced Walkability: By adhering to the city’s midblock walkway directive, the design prioritizes accessibility and walkability, creating an inviting environment that encourages residents to engage with their surroundings and each other. Goal 3: Define Transportation Opportunities ● Support for Alternative Transportation: Streetscape enhancements, integrated midblock connectivity, secure bike parking, and real-time transit screens encourage walking, biking, and the use of alternative transit modes. With proximity to the Red, Blue and Green Lines, as well as the future UTA TRAX extension along 400 W, the project strengthens local and regional transit access. 4 ● Integration with City and UTA Initiatives: The project is uniquely positioned within a network of transformative city and transit initiatives. The Green Loop project along 500 W, the Grand Boulevards initiative along 500 S and 400 S, and the new TRAX line on 400 W create a multi-modal, transit-rich environment that enhances connectivity and makes Pickle & Hide a pivotal component of the district’s infrastructure. Goal 4: Develop a Blueprint for Collaborative Implementation ● Building Preservation and Adaptive Reuse: Phase I includes the renovation of the historical 1919 Bissinger & Co. Hides building, preserving 100% of its front façade and 40% of the brick exterior. Phase II will renovate, restore and replicate the 1894 Utah Pickle Co. building into 14,500 square feet of retail space. The restoration plan includes preserving a significant portion of the front façade, extensive reuse of the original bricks for both the exterior and interior, repurposing the sandstone foundation, and replicating the building's original footprint. This adaptive reuse of the district’s first industrial building constructed in 1894 by former LDS Church President Heber J. Grant. The building has served many roles over its 130-year history—from a soap factory to a pickle and condiment plant, and most recently, an arts and event space. The Pickle building will now be transformed into 14,500 square feet of retail and commercial space, maintaining its industrial charm. The original “Utah Pickle and Co.” signage has been carefully preserved and will be refurbished to once again adorn the structure, honoring its storied past. Goal 5: Engage Businesses and Residents about Needs and Opportunities ● Public Art and Local Engagement: The project will showcase rotating art exhibits in the multifamily lobby. Additional opportunities exist in programming the public walkways and open spaces. These initiatives will engage the community, foster cultural authenticity, and attract visitors, enhancing the area's vibrancy. ● Comprehensive Safety Strategies: By integrating neighborhood activation, thoughtful public space design, and improved connectivity, the project aims to create a safer community. Increased foot traffic, active engagement, and well-designed environments will contribute to a resilient and secure atmosphere, ensuring residents feel safe and connected. 2. TIR THRESHOLD REQUIREMENTS: ● Affordable Housing Requirement of 20% of units averaging 60% AMI (900 S HTRZ): See Section III. DEVELOPMENT OVERVIEW - Land Use Mix – shows the development includes 28 units (20%) averaging 60% AMI and 26 units (18%) averaging 80% AMI. ● Minimum Investment of $12 million in capital expenditures: The total project cost for Phase I and Phase II is $90,017,722 5 ● Salt Lake City-based Business: Mountain West Development LLC is a Salt Lake City based business located at 386 West 500 South, Suite 100, Salt Lake City, UT 84101, the tax ID number is 35-2677318. The project is being led by Blaser Ventures the sponsor and developer of the project, a Salt Lake City based, community-focused development company. ● Facility Improvement or Expansion: See Section VI. PUBLIC BENEFIT - Neighborhood Safety, Public Space/Public Art, Walkability, Historic Preservation ● Job Retention and/or Job Creation: See Section VI. PUBLIC BENEFIT - Permanent Job Creation ● Demonstrate TIR is Necessary for Project to Succeed See Attachments: Term Sheet(s) and Sources and Uses ● Employ Sustainable Construction Practices: See Section V. PROJECT OBJECTIVE5, 5. Project’s Sustainability 3. STATE HTRZ ACT REQUIREMENTS The information provided in this application demonstrates the project adheres to the central objectives of SB217 Housing and Transit Reinvestment Zone Act and subsequent amendments (SB140, SB84, & SB208) by: • Promoting greater utilization of public transit • Increasing the availability of attainable housing • Encouraging transformative mixed-use development and collaborative investment in transit and transportation in strategic areas • Maximizing available planning and economic development tools to strengthen and grow major transit corridors • Increasing access to employment and educational opportunities • Improving water conservation and air quality resources through efficient land use and better utilization of transit opportunities In addition, the project meets the HTRZ State requirements, more specifically: Land Area: The Project is within the required 1/3-mile radius of a commuter rail station, 900 South/200 West Blue, Green and Red Light Rail lines. 6 Housing and Mixed-Use: The mixed-use project provides approx. 22,500 square feet of retail/commercial, public walkways, bike paths and open spaces, and a total of 141 residential units or 56.4 units per acre, exceeding the 50-unit-per-acre minimum required. Housing affordability also exceeds the minimum requirement with 20% of the units at 60% AMI and 18% at 80% AMI for a total of 38% or 54 affordable units. The state requirement by comparison is 12% affordable with 9% at less than or equal to 80% AMI and at least 3% at less than or equal to 60% AMI (See Section III. Development Overview, Land Use Mix) 4. ESTIMATED TAX INCREMENT REQUESTED AND WHY IT IS NECESSARY FOR PROJECT’S SUCCESS The Pickle & Hide development, as proposed, delivers immense public benefits, including affordable housing, historic preservation, public spaces, and enhanced pedestrian connectivity. However, without HTRZ tax increment financing tools, the project would be economically infeasible, and many of these benefits—critical to achieving the City’s goals—would not be realized. Below are the key arguments: Substantial Preservation and Adaptive Reuse Costs The project’s hallmark features include the preservation and restoration of three historic structures—the Hide Building, the Pickle Building, and Ed’s Place. Adaptive reuse is more complex and costly than new construction due to structural retrofitting, façade restoration, and compliance with modern building codes and the floodplain. For example: • The Hide Building required substantial concrete reinforcement to support the housing units constructed above the structure, adding $150,000 per unit for 12 of the residential units. This essential construction option to preserve the historic character of the building increased the project cost by an additional $1.8M, a necessary expense to ensure structural integrity and meet code requirements. Additionally, the restoration of a significant portion of the historic exterior greatly increased the project's overall cost. Ideally, the entire structure would have been preserved; however, this would have added approximately $3M to the budget, rendering the project infeasible. It was determined that by retaining 40% of the exterior (including the entire façade and the original painted signage on the north and south walls) we could lower that additional cost to the project to $1.7M. Combined with the $1.8M concrete reinforcement, the Hide Building alone requires an additional $3.5M in costs. To preserve the site's historic character, cost-saving measures were identified elsewhere to make the $1.7M option viable, with the expectation that HTRZ credits could help offset the expense. Without HTRZ credits, preserving even 40% of the exterior walls would not be feasible. 7 • The Pickle Building is set to undergo a complete transformation, converting its 130-year-old industrial frame into 14,500 square feet of functional retail space while preserving its original, authentic charm. However, restoring, rebuilding, and replicating this cultural landmark comes at a premium cost of approximately $1.8 million more than demolishing the structure and constructing a new building of the same size and design. Retaining significant portions of the existing structure is estimated to cost approximately $550 per square foot for the 7,000-square-foot ground floor, compared to around $250 per square foot for demolishing the existing building and constructing a new structure. These substantial preservation and adaptive reuse costs, totaling an additional $5.5M, highlight the importance of HTRZ tax incentives to make the project financially viable. Without HTRZ funding, the financial burden of adaptive reuse would make it more viable to demolish these structures and pursue a standard new-build development—sacrificing the cultural and architectural history of the district. Elimination of Affordable Housing The project commits to providing 38% of units as affordable housing, with 20% of the units at 60% AMI and another 18% at 80% AMI. The inclusion of affordable units imposes significant financial strain: • Affordable units generate lower rental revenue compared to market-rate units, which reduces the property cash flow by ~$300,000 per year and overall residual value by over $6 million (250 -300 basis point reduction in returns). This translates to a higher cost of capital to the project, which in turn creates an undesirable funding environment for potential investors, significantly limiting the investor pool and limiting available cash required to build the project. • The cost of mixed-use elements like efficient structured parking (164 stalls), ~21,000 square feet public open space, and retail space further stretches project financing. (~$8.6M) Without HTRZ incentives, the project would be forced to pivot to a market-rate-only housing model, with a larger footprint parking garage (current footprint is smaller and more efficient, which is also more costly to design and construct than a typical garage), larger (less efficient and higher monthly cost for residents) units, more private amenities, no public open space in excess of code requirement, no sustainable elements, and no retail, diminishing the vibrancy of a mixed use development and vital affordable and attainable units that address a critical housing shortage. Public Benefits Depend on Financing Support The project delivers extensive public benefits beyond housing, including: • 30,000 square feet of public and programmable space promoting connectivity and community interaction. 8 • Affordable commercial spaces for local businesses, enhancing the district’s economic vitality and authenticity. • Streetscape improvements, pedestrian and bike-friendly infrastructure that promote connectivity and multi-modal transportation. These amenities do not generate direct financial returns but are essential for long- term neighborhood resilience. Without HTRZ funding, many of these amenities would be deemed financially unsustainable. Demolition as the Only Alternative In the absence of HTRZ financing, the economic realities of the project necessitate: • Demolition of the historic structures to reduce construction costs. • Development of a simpler market-rate multifamily building with minimal public amenities. This outcome would eliminate affordable housing, erase critical historical landmarks, and fail to align with the City’s goals for inclusive, sustainable, and community- oriented development. This project is an opportunity to preserve Salt Lake City’s rich industrial history, deliver affordable housing, and activate the Granary District with vibrant, connected public spaces. However, achieving this vision is contingent upon HTRZ tax increment financing tools. Without this support, the project would regress into a generic, market-rate development devoid of affordability, historic preservation, and meaningful public benefits. Investing in this project through HTRZ ensures that Salt Lake City reaps the rewards of thoughtful, equitable, and transformative redevelopment. 5. HOW PROJECT MEETS THE RDA’S SUSTAINABILITY POLICY Adaptive Reuse to Reduce Carbon Footprint The project prioritizes the adaptive reuse of existing structures, significantly reducing its carbon footprint by minimizing the need for new materials and construction waste. This approach allows for the integration of modern, energy- efficient technologies while preserving the historical and cultural character of the site. Key sustainable measures include the reuse of over 10% of the original wood floor system and wooden columns from the Hide building, along with repurposed steel trusses and approximately 12,500 bricks salvaged on-site. High Energy Performance Phase I of the project will achieve an ENERGY STAR score of 92 for all new construction, setting a benchmark for energy efficiency (See Energy Star Score Attachment). The project is designed to be fully electric, with residential units utilizing all-electric appliances. The only exception is a limited gas service for 9 restaurant tenants, representing 5,500 square feet of the approximately 200,000 gross square feet in Phase I. While the goal is to maximize electrification, restaurant tenants have specific operational requirements that currently make all-electric cooking impractical. Existing LOIs with restaurant tenants include provisions that necessitate gas service due to the lack of reliability of electric alternatives in high-performance commercial kitchens: • Tenant 1: "Landlord to provide gas line and gas meter stubbed into the tenant’s space with a one and a half inch (1.5”) line. Gas service to be a minimum of 1,700,000 BTU." • Tenant 2: "A minimum of a 2" medium-pressure gas line stubbed to an agreed-upon location within the Premises...The PRY to be installed to bring from medium (2 psi) to low (1/4 psi) pressure." To further support sustainability, leasing and marketing teams will actively promote the benefits of induction cooking, encouraging restaurant tenants to adopt this cleaner, more efficient alternative to gas whenever possible. Additionally, all retail spaces are stubbed for heavy-amperage electrical service to accommodate all- electric restaurant operations in the future. Promoting Sustainable Mobility The project emphasizes pedestrian- and cycling-friendly design to encourage car- optional living for residents and visitors. Key strategies include: ● Proximity to multiple transit lines, ensuring accessible and sustainable transportation options. ● On-site retail and restaurant spaces, reducing reliance on car trips. ● Meeting and focus rooms within the Hide apartment building to reduce the need for residents to commute for work or study. ● Proposed bike paths along street frontages, complemented by secured bike parking and storage facilities for residents, visitors, and retail patrons. ● 4 electric vehicle charging stalls, with infrastructure for an additional 12 future charging stations to meet evolving demand. Low-Carbon Materials and Efficient Design The project integrates low-carbon emission materials in its interior design, paired with native, drought-tolerant landscaping to reduce maintenance, lower carbon emissions, and improve environmental health. On-site pollinator beehives contribute to ecosystem biodiversity while enhancing air quality and fostering a healthier living environment for residents and neighbors. 10 Net-Zero and Renewable Energy Strategies The project team has carefully evaluated on-site and off-site renewable energy options to meet net-zero goals. ○ On-Site Solar: ○ Phase I would generate a maximum of 20,000 kWh annually through rooftop solar—approximately 1.4% of the 1.4M kWh needed to power the development. Due to retrofit costs of $250,000 and limited energy offset (enough to power common areas only, which require 264,000 kWh annually), this approach is neither cost-effective nor feasible. - The retro fitting costs include all the roofing components/systems for the Hide building (including but not limited to; trusses, anchors, mechanical equipment, roof material, etc.). Other challenges with the redesign would be approvals with the building department and procurement of materials, both causing delays in the construction process. ○ Phase II would require structural reinforcement of the historic building to incorporate solar, making it financially prohibitive. ○ To fully offset 1,400,000 kWh, approximately 4 acres of solar panels would be needed, which is infeasible given site constraints. ○ Passive Design: The project incorporates building orientation, shading, high-performance insulation, and strategically placed operable windows to reduce energy consumption while enhancing comfort. Features such as high-performance windows and zone-specific heating and cooling systems further lower energy use by minimizing unnecessary temperature fluctuations. ○ Wind Turbines: Wind energy was deemed unsuitable due to low and inconsistent wind speeds caused by urban turbulence, aesthetic concerns, noise pollution, and the need for specialized turbine designs to function in dense environments. These factors make wind energy technically challenging and cost prohibitive. ○ Geothermal: Geothermal energy was considered but ruled out due to high installation costs (approximately $30,000–$40,000 per unit), the high-water table, mismatched energy demand, maintenance challenges, and utility restrictions. Off-Site Renewables and Energy Credits Off-site renewable energy credits (RECs) offer a supplemental approach but pose challenges, including market volatility, cost sustainability, and limited environmental impact. o The estimated annual costs for Phase I per the Blue Sky Environmental Impact Calculator by Rocky Mountain Power are $942/month or $11,303 annually for the 1,400,000 kWh needed for the project, including the following: • Residential Units (1,015,000 kWh): o $717/month or $8,606 annually ($61/unit for 141 units). 11 • Commercial, Common Areas, and Garage (385,000 kWh): o $350/month or $4,200 annually. While purchasing RECs helps offset carbon footprints, their reliance on geographically distant renewable sources raises concerns about long-term feasibility and transparency. Long-Term Renewable Vision Given the constraints of limited space, high-density energy demands, and regulatory challenges, the project would benefit from a more district-wide renewable energy strategy. This approach would align with broader sustainability goals, pooling resources and infrastructure for a greater collective impact. To achieve this, collaboration is essential among key stakeholders, including utility providers, municipal leaders, renewable energy consultants, property owners and developers, and community organizations. By working together, these groups can design and implement scalable solutions such as shared solar installations, microgrids, or district heating and cooling systems, ensuring equitable access and maximizing environmental benefits. VI. PUBLIC BENEFIT PERMANENT JOB CREATION/ECONOMIC IMPACT: • The project will create permanent jobs for retail operators, featuring nearly 20,000 s square feet of retail aimed to attract local retail/restaurant operators. The owner is currently holding leasing discussions with local operators. In addition, the 141 residential units will create numerous permanent job opportunities including leasing and maintenance staff as well as contracted service vendors. AFFORDABLE HOUSING: • 38% of the residential units will be affordable averaging 60%-80% AMI. The units will be dispersed throughout the building and floors. mirroring the unit mix of the market rate apartments. AFFORDABLE COMMERCIAL: • Working with local shops, restaurants, businesses and services is essential to Blaser’s development philosophy and enhances the district’s character while supporting local entrepreneurs. Leasing is focused on offering spaces to local business owners and artisans at accessible rates to support growth within the local community. TRANSPORTATION OPPORTUNITIES: • Alternative means of transportation such as biking, walking, and transit, are encouraged and supported by the project’s secured bike parking and storage, real- time transit screens, and streetscape/sidewalk improvements in front of the site along 400 W. (see Attachment 5a, Site and Landscape Plan) 12 • 4 electric vehicle charging stalls will be available to the public, with infrastructure for an additional 12 future charging stations to meet evolving demand. • The project’s shared parking garage (164 stalls) also benefits from its location within a 1/3 mile from existing transit lines providing safer and more convenient access to transit lines and stops, with the Red, Blue, and Green lines along with 5 nearby bus stations within 2-3 blocks from the site. • The project team is actively coordinating with City agencies on streetscape enhancements to 400 W, incorporating multi-modal best practices to ensure safe and accessible transportation options for all users. • Blaser is also coordinating with the UTA on the proposed Trax Extension project designed to run along 400 W, right in front of the project, with 2 transit stops within a one-block radius. NEIGHBORHOOD SAFETY/COMMUNITY ENGAGEMENT: • Neighborhood activation, thoughtful public space design, improved connectivity, and active engagement creates a comprehensive strategy for enhancing neighborhood safety. By prioritizing these elements, the project not only addresses current safety concerns but also fosters a resilient and vibrant community where residents feel secure and connected. PUBLIC SPACE AND PUBLIC ART: • The Project has recorded a 10’ public midblock walkway easement for community- focused outdoor public space that invites and promotes social interaction, neighborhood identity, and urban character. • Walkways, sidewalks and public spaces will be illuminated with pedestrian-scaled lighting that is directed downward for preservation of our night skies. • Phase I and Phase II will feature approximately 20,000 square feet of retail/restaurant space accessible to the public. • The multifamily lobby will showcase rotating art from local and regional artists. WALKABILITY: • The walkability and accessibility of the area continues to improve as more parcels are redeveloped. In designing the Pickle & Hide Project, the team focused on creating new, publicly accessible pedestrian connections, namely a recorded 10’ public mid-block walkway easement through the site including connectivity to Kilby Court to encourage social interaction and improve the user experience through the site • The Project focuses on creating an environment that improves the pedestrian experience as demonstrated in the Site and Landscape Plan (Attachment 5a) with new and improved sidewalks and walkways in front and through the site complemented with pedestrian scaled lighting, seating and substantial landscaping. 13 • The ground-floor retail spaces are designed with significant transparency, featuring extensive glazing and large openings to promote indoor/outdoor seating and enhance the connection between the interior spaces and the surrounding streetscape. This design encourages interaction, fosters a welcoming pedestrian experience, and supports active street life. HISTORIC PRESERVATION, REHAB AND ADAPTIVE REUSE: • Phase I of the project will focus on the renovation and preservation of the historic 1919 Bissinger & Co. Hides (“Hide”) building. This includes restoring 100% of the front façade and 40% of the original brick exterior, along with the preservation of the iconic “Bissinger” signage that has long defined the building’s identity. The new- build multifamily portion of the project has been purposefully designed around the historic Hide building, intentionally incorporating many of the industrial materials and elements into the design. The Hide building will serve as the gateway to a thoughtfully integrated multifamily and retail space, blending history with modern use. • Phase II will center on the renovation, restoration and replication for adaptive reuse of the Utah Pickle Co. (“Pickle”) building. Given the poor structural integrity of the building and the significant cost of renovation, the focus of the restoration plan is to preserve as much of the front façade as possible, maintaining the original footprint and reusing as many of the original bricks and materials as feasible to ensure the historical and cultural character is well preserved. Constructed in 1894 by former LDS Church President Heber J. Grant, the building has served many roles over its 130-year history—from a soap factory to a pickle and condiment plant, and most recently, an arts and event space. Now, the Pickle building will be transformed into 14,500 square feet of retail and commercial space, maintaining its industrial charm. The original “Utah Pickle and Co.” signage has been carefully preserved and will be refurbished to once again adorn the structure, honoring its storied past. • Additionally, Ed’s Place, a 2,500-square-foot, single-story brick building on 700 South, will undergo renovation and retrofitting for commercial use. Once a beloved neighborhood breakfast and lunch spot, the building’s original façade will be restored, removing the deteriorating, orange-shingled overhang and Italian-flag- striped canopy to reveal its historical character. • This phased approach to adaptive reuse preserves the rich industrial architecture that defines the district, maintaining its cultural identity while minimizing the project’s carbon footprint. By blending history with contemporary functionality, the project will help stimulate the local economy, attracting businesses, visitors, and residents seeking a culturally authentic and character-rich environment. 14 ATTACHMENT CHECKLIST 1. Sources and Uses 2. Operating Pro Forma 3. Tax Increment Reimbursement Calculation 4. Appraised Project Value – (Not available until loan closing, will complement application as soon as available) 5. Preliminary Plans & Renderings a. Site and Landscape Plan b. Floor Plans (Hide) c. Elevations (Hide) d. Roof-top Solar Availability Plan (Hide) e. Renderings 6. Energy Star Score Card 7. Project’s Carbon Avoidance 15 Pickle & Hide - Site and Landscape Plan CONNECTIVITY TO KILBY COURT RETAIL PARKING PICKLE RETAIL / FOOD & BEVERAGE HIDE RETAIL / FOOD & BEVERAGE ED’S PLACE RETAIL 40 0 W ES T 700 SOUTH ATTACHMENT 5ba: PRELIMINARY PLANS & RENDERINGS SITE AND LANDSCAPE PLAN 16 ATTACHMENT 5b: PRELIMINARY PLANS & RENDERINGS HIDE FLOOR PLANS 17 18 19 20 ATTACHMENT 5c: PRELIMINARY PLANS & RENDERINGS HIDE ELEVATIONS Phase I - Hide Elevations Phase I - Hide Elevations 21 ATTACHMENT 5d: PRELIMINARY PLANS & RENDERINGS ROOFTOP SOLAR AVAILABILITY Phase I - Hide Rooftop Solar Plan Required Clearance for Safety Anchors Possible Solar Roof Area Roof Area for Mechanical Equipment 22 ATTACHMENT 5e: PRELIMINARY PLANS & RENDERINGS Hide and Pickle Buildings from 400 W Pickle Public Alley showing midblock connectivity, retail activation outdoor furnishings and amenities, and landscaping 23 Residential Entrance with secure bike parking and landscaping Midblock open space activation ATTACHMENT 5e: PRELIMINARY PLANS & RENDERINGS 24 ATTACHMENT 6: ENERGY STAR SCORE CARD 25 26 ATTACHMENT 7: CARBON AVOIDANCE 27