HomeMy WebLinkAboutCouncil Provided Information - 10/14/2025CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
tinyurl.com/SLCFY26
TO:CRA Board Members
FROM:Lehua Weaver, Jennifer Bruno, Kate Werrett
Budget and Policy Analysts
DATE:October 14, 2025
RE: Community Reinvestment Agency (CRA) Budget Amendment Number 1 Fiscal Year (FY) 2026
& the Disaster Relief Loan Program (DRLP)
________________________________________________________________________________
ISSUE AT-A-GLANCE
This staff report covers two proposed items- the CRA Budget Amendment 1 and the creation of the Disaster Relief
Loan Program.
CRA Budget Amendment 1 includes:
- The reallocation of funds totaling $9,425,816 to the Commercial Development Loan Program (CDLP).
- A reallocation of $5 million to the proposed Disaster Relief Loan Program from the Revolving Loan Fund.
The CRA has proposed creating the Disaster Relief Loan Program (DRLP) to provide gap financing for the
structural reconstruction of properties that have suffered significant damage or destruction due to fire, flooding,
earthquakes, or storms (Qualifying Events) within CRA project areas.
Goal of the briefing: Discuss the DRLP, review the FY2026 CRA Budget Amendment 1, and set the required
public hearing date.
ADDITIONAL & BACKGROUND INFORMATION
Disaster Relief Loan Program (DRLP)
In response to the Main Street fire on August 11th, the Administration has proposed several City disaster support
options with specific goals. The CRA’s proposed DRLP is focused on expediting structural recovery options and will
provide a gap financing choice for the August 11th Main Street fire property owners and those impacted by future
Qualifying Events within active CRA project areas. The August 11th fire occurred within the CRA’s Central Business
District Project Area (CBD).
Summary Points of the DRLP include:
a. Who: Property Owners or long-term lessees in CRA project areas
b. Why: gap financing to help expedite reconstruction
c. Funding Source: $14 million from commercial assistance program that comes from all CRA project
areas. $5 million available in the CBD.
d. How much per property: $1 million each for four properties
Project Timeline:
Set Date & 1st Briefing: September 9, 2025
Public Hearing & 2nd Briefing: October 14, 2025
Potential Action: October 14, 2025, or later
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e. Terms:
-0% and no payments for first 2 years, 2% in year 3
-3 year term extendable to 5 years, amortized over 10 years
-5% interest starting at year 5
f. Loan application & Criteria: board approval, active insurance claim required
The resolution includes the full terms of the DRLP, and CRA staff is drafting administrative guidelines to assist with
the application process and loan underwriting.
CRA Budget Amendment #1
The CRA Budget Amendment 1 includes funding for the DRLP. The amendment allocates $5 million to the DRLP to
support Qualifying Events in the Central Business District (CBD) Project Area. The CRA Board may consider future
funding allocations for both the CBD and other CRA project areas as needed.
Budget Amendment 1 also combines several funding sources into the Commercial Development Loan Program
(CDLP). CRA Resolution 4-2025 created the CDLP to replace the CRA Loan Program, the Granary District Adaptive
Reuse Loan Program, and the Commercial Revolving Loan Program. In addition to the funds from these programs,
the budget amendment reallocates all but $717,318 of the Commercial Assistance Loan Reserves to the CDLP.
Project Area Expiration Dates
Project areas have a designated expiration date. State law allows CRAs to continue spending tax increment already
collected in expired project areas such as Sugar House. Sometimes project areas can be extended/renewed for a
longer length as happened to the Central Business District. The table below summarizes project area timeframes
from creation to expiration for CRA project areas.
Project Area
Initial
Collection
Year
Last
Collection
Year
Central Business
District*†1983 2042
Depot District†1999 2024
Granary District†2000 2025
North Temple†2012 2038
North Temple Viaduct
CDA 2012 2036
Northwest Quadrant 2019 2038
Block 70 CDA 2016 2042
Stadler Rail 2019 2038
Block 67 North 2021 2041
9-Line 2021 2040
State Street 2021 2040
NOTE: Only project areas that generate tax increment are listed in the table.
*The CRA Board extended the CBD from the original expiration year of 2007.
†In October 2021, the Board approved two-year extensions for these project areas. State law was
changed to allow extensions for project areas negatively impacted by the COVID-19 pandemic.
Statutory Definition of Project Area Development (Utah Code 17C-1-102(48))
The section of Utah Code below is a key list of allowable uses of CRA funds. The Utah Legislature updated this
statute in the 2016 General Session.
(47)"Project area development" means activity within a project area that, as determined by the board, encourages,
promotes, or provides development or redevelopment for the purpose of implementing a project area plan,
including:
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(a)promoting, creating, or retaining public or private jobs within the state or a community;
(b)providing office, manufacturing, warehousing, distribution, parking, or other facilities or improvements;
(c)planning, designing, demolishing, clearing, constructing, rehabilitating, or remediating environmental
issues;
(d)providing residential, commercial, industrial, public, or other structures or spaces, including recreational
and other facilities incidental or appurtenant to the structures or spaces;
(e)altering, improving, modernizing, demolishing, reconstructing, or rehabilitating existing structures;
(f)providing open space, including streets or other public grounds or space around buildings;
(g)providing public or private buildings, infrastructure, structures, or improvements;
(h)relocating a business;
(i)improving public or private recreation areas or other public grounds;
(j)eliminating blight or the causes of blight;
(k)redevelopment as defined under the law in effect before May 1, 2006; or
(l)any activity described in Subsections (48)(a) through (k) outside of a project area that the board determines
to be a benefit to the project area.
ACRONYMS
CBD – Central Business District
CDA – Community Development Area
CDLP – Commercial Development Loan Program
CRA – Community Reinvestment Agency
DRLP – Disaster Relief Loan Program
FY – Fiscal Year
RLF – Revolving Loan Fund
TY – Tax Year
ATTACHMENTS
1.Administrative Transmittal: Disaster Relief Loan Program
2.Administrative Transmittal: CRA Budget Amendment No.1 for Fiscal Year 2025-26