Loading...
HomeMy WebLinkAboutProposed Resolution - 1/9/2026 RESOLUTION NO. OF 2026 (Authorizing the Sales Price and Term Sheet for The Grove Project located at 321 East 200 South, Salt Lake City) WHEREAS, Housing Assistant Management Enterprise (“HAME”), a Utah nonprofit corporation affiliated with the Housing Authority of Salt Lake City (“HASLC”), in partnership with Xylem Projects, a for-profit entity, and Common Ground Institute, a for-profit entity, (collectively the “Developer”), desires to develop a project known as The Grove that includes the renovation of the historic Northwest Pipeline building (the “NWP Building”) and construction a new building, a parking structure, public plaza, and art elements (the “Project”); and WHEREAS, the Project will include affordable housing, family-sized housing, a wealth building program for residents, neighborhood-serving commercial space, and a publicly accessible plaza, as further described on the attached term sheet (the “Term Sheet”); and WHEREAS, Developer and the City desire to locate the Project on approximately 2.42 acres of the real property owned by the City and located at 321 East 200 South, Salt Lake City (the “Project Site”); and WHEREAS, the primary beneficiaries of the Project will be households with an average annual income of 30% to 80% of Salt Lake City’s area median income (“AMI”); and WHEREAS, Developer will ensure that historic renovations of the NWP Building are compliant with guidelines published by the National Park Service Secretary of the Interior’s Standards for Rehabilitation; and WHEREAS, a below-market sale of the Project Site to Developer is necessary and appropriate to facilitate the development of the Project, which would otherwise be financially unfeasible; and WHEREAS, the City is willing to provide assistance to Developer through the sale of the Project Site for a total purchase price of $1,000,000 (“Sales Price”), payable pursuant to the terms of one or more subordinate, 55-year promissory notes; and WHEREAS, Utah Code Section 10-8-2 allows public entities to provide non-monetary assistance to the Developer after performing an analysis of the tangible and intangible benefits received by the municipality (the “Analysis”); and WHEREAS, the City Council has conducted a public hearing relating to the foregoing, in satisfaction of the requirements of Utah Code Section 10-8-2; and WHEREAS, the Council has reviewed the Analysis, and has fully considered the conclusions set forth therein, and all comments made during the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as follows: 1. The City Council hereby adopts the conclusions set forth in the Analysis, and hereby finds and determines that, for all the reasons set forth in the Analysis, the Sales Price is appropriate under these circumstances. 2. The terms outlined on the Term Sheet represent the approved terms for the Project, and the City Council hereby authorizes the City administration to negotiate the final terms consistent with the Term Sheet or more beneficial to the City, and execute the sale and any other relevant documents consistent with this Resolution and incorporating such other terms and agreements as recommended by the City Attorney’s office. 3. This approval of the Sales Price shall expire in the event the Developer, after having all opportunities to cure under the PSA, does not close on Property by June 30, 2027. [Remainder of page intentionally left blank] Passed by the City Council of Salt Lake City, Utah, on ____________, 2026. SALT LAKE CITY COUNCIL CHAIRPERSON ATTEST: CITY RECORDER APPROVED AS TO FORM: Salt Lake City Attorney’s Office Allison Parks, December 30, 2025 Allison Parks, Deputy City Attorney EXHIBIT TO RESOLUTION The Grove Project Term Sheet PURCHASE AND SALE TERMS consisting of a minimum of 196 units, that are a mix of one, two, and three-bedrooms, with the units affordable to households at 80% of the area median income (AMI) and below, as further defined herein, and the opportunity for a minimum of 16 households to participate in the Family Self-Sufficiency Program. The project will include both new construction as well as the renovation of the historic Northwest Pipeline building (“NWP Building”); a minimum of 15,000 square feet ground floor and basement level neighborhood commercial space targeted to neighborhood service providers including a daycare with a play structure, healthy foods and beverages, and healthcare; progressive parking strategy; energy star 90 for the new construction; publicly-visible art and the Owner: Grove Properties, LLC, or one or more other special purpose entities owned or to be owned by Housing Assistance Management Enterprise (“HAME”). Xylem Projects LLC (“Xylem”) and Common Ground Institute LLC (“CGI”), or affiliates thereof, may attributed to the land and $660,000 attributed to the building, as determined by an agreed upon appraisal dated November 4, 2025. Prior to closing, this appraisal may be updated Market Value: requesting that the appraised value be discounted to $500,000 for the NWP Building, and $500,000 for the New Construction Parcel, for a total sales price of $1,000,000, limited to: 4% or 9% federal low-income housing tax credits (“LIHTC”); tax-exempt bonds; state low-income housing tax credits; historic tax credits; an owner’s note including property; project-based voucher enhancement; state transportation infrastructure funds; CRA or Housing Stability funds; deferred developer fee; Olene Requirements: anticipated to be at the time of the Developer’s tax credit closing. Closing will occur after the following conditions are met in its entirety or for each respective phase: • Developer and City shall have agreed on the terms and form of various agreements including a Development Agreement, Public Access Easements, the Right to Repurchase Agreement, and Restrictive Use Agreement. These documents shall be recorded immediately after the deed. • Developer shall have prepared and recorded, or will record at Closing, an amended plat with Salt Lake County. • Developer shall have received all necessary zoning approvals to commence construction of the Project. • Developer shall provide evidence of adequate parking plan to meet zoning requirements. Plan shall include interim parking strategy and schematic design and development timeline of the proposed parking structure located within the • Developer shall provide evidence, in a form acceptable to the City, of a fully executed long-term parking lease or other binding parking agreement with Magnolia securing the use of eight parking stalls. • Developer shall provide the City with verification of construction and long- term financing and obtain a payment and performance bond prior to closing. • Closing on the property shall take place simultaneously with the closing on the development’s financing, issuance of a “will issue” building permit letter, and approval by the internal staff review committee established by the City of the final design and construction documents and schedule of development. • Developer shall demonstrate that the Northwest Pipeline building shall be constructed to conform to guidelines either provided by or consistent with the National Park Service Secretary of the Interior's Standards for Rehabilitation and such standards shall be referenced in the Development Agreement. • Developer shall demonstrate that the development shall be designed to achieve a “Designed to Earn ENERGY STAR” score of 90 or higher or a Design Target Site Energy Use Intensity (“EUI”) value corresponding with such a score that is generated by the Designed to Earn ENERGY STAR and such standards shall be referenced in the Development Agreement. • Developer shall have satisfied all the requirements necessary for the NWP Building and New Construction respectively. Developer shall pay the City cash flow payments as follows: • Initial Compliance Period: A payment of $1 per year shall be made until the end of the LIHTC compliance period. The LIHTC compliance period shall be 15 years after the Certificate of Occupancy is received and pursuant to Section 42 of the Internal Revenue Code. • Post-Compliance Period: Beginning upon the expiration of the LIHTC compliance period, an annual payment of 50% of surplus net cash flow. If net cash flow is not available in a particular year, the payment will not be less than $1 per year. Developer shall annually submit to the City financial documentation, in a form and level of detail acceptable to the City, sufficient to verify the calculation of surplus cash flow and the amount, if any, payable on the promissory notes. The promissory notes shall accrue interest at a simple, non-compounding, annual rate of three percent (3%) per annum starting at year 15, however, no interest payments shall be due prior to final maturity. At final maturity, only the interest that accrued on the outstanding unpaid principal balance will be applied to final payment. The promissory note shall have a final maturity in Year 55, at which time any unpaid principal balance and the accrued interest on the unpaid principal balance shall be immediately due. There shall be no automatic forgiveness. Any unpaid balance and accrued interest shall become immediately due and payable upon sale, transfer, or refinancing of the Property, subject to senior lender’s consent. Agreement(s) recorded by Utah Housing Corporation, LIHTC investors and other senior lenders. In addition, the cash flow may be subject to standstill provisions as may be Requirement: agreements and closing has not occurred by June 30, 2027, after all opportunities to Developer shall provide the City with a detailed Construction Schedule within 60 days of Closing, identifying major milestones. Developer shall update the Construction Schedule quarterly and provide written notice to the City of any material deviations. Developer shall meet the following milestones: • Commence Construction – NWP Building: No later than 18 months following the Closing. • Commence Construction – New Construction: No later than 24 months following Closing. • Substantial Completion – NWP Building: No later than 30 months following the Construction Start. • Substantial Completion – New Construction: No later than 30 months Requirement: developed and continuously operated as affordable housing 80% AMI and below, with units affordable and restricted to households earning up to the following AMI: NWP BUILDING: • A minimum of 7 units at 30% AMI • A minimum of 7 units at 40% AMI • A minimum of 7 units at 50% AMI NEW CONSTRUCTION: • A minimum of 14 units at 30% AMI • A minimum of 14 units at 40% AMI • A minimum of 14 units at 50% AMI The NWP Building shall contain a minimum of 63 total units, and the new construction shall contain a minimum of 133 total units. All remaining units will be held at affordability levels that are in compliance with LIHTC requirements at 80% AMI and below with an average of 60% AMI for all units dependent on 4% LIHTC or 9% LIHTC applications. Compliance of affordability and occupancy requirements shall be demonstrated through an annual report submitted to the City. A Restrictive Use Agreement shall be recorded against the Property at closing. The agreement shall be recorded immediately after the deed, run with the land, bind all successors and assigns, and remain in full force and effect for a term of fifty years from certificate of occupancy. All restrictions contained in this agreement shall survive Sufficiency: the Family Self-Sufficiency (FSS) Program, a voluntary 5-year incentive program that aims to help families increase their earnings and build equity with an emphasis on homeownership opportunities. The FSS Program includes two key features – a financial incentive for participants to increase their wealth in the form of an escrow savings account that increases as their earnings increase, and case management or coaching to help participants access services they may need to overcome barriers to employment, strengthen their financial capability, and address other challenges holding them back from achieving their goals. Developer shall provide an annual report summarizing and case management services, credit-building tools, savings or equity building opportunities, and workforce navigation. Developer will provide access to a discounted real estate agent service to assist residents on their journey to homeownership. Developer shall provide an annual report summarizing participation, outcomes, and Project: modification constitutes a material change from the proposed Project. For purposes of the Agreement, a “material change” means a modification that substantially deviates from the proposed Project and, with respect to any terms involving numbers or percentages, results in a change by more than 10%. Developer shall provide City with written notice of any such minor modification, including without limitation any changes specified by the City’s Building Services or Planning Departments. Developer shall not make any material change to the proposed Project without City’s approval, which Building will include a minimum of 30 2-bedroom units and 6 units 3-bedroom or more. The new construction shall have a minimum of 50 units as 2-bedroom units and 23 units Commercial Uses: and an additional 5,500 square feet in the basement of the NWP Building. The majority of the 200 South facade shall be ground floor commercial. Developer shall make efforts to reserve and lease the ground-floor commercial spaces to community-serving uses, specifically healthcare providers, childcare operators, or healthy food and beverage retailers. Developer shall actively market these spaces to such users for a minimum of 4 months following receipt of a certificate of occupancy. If, after commercially reasonable efforts and documented outreach, the Developer is unable to secure a qualified tenant from these categories, the City may approve alternative commercial uses that remain compatible with the project’s community benefit goals. Any proposed pivot shall include evidence of marketing efforts, a summary of prospective tenants, and a demonstration that the alternative use maintains or advances public health, wellbeing, or Secretary of the Interior's Standards for the Treatment of Historic Properties. design and construction documents for review and approval. So long as the Design Documents comply with Developer’s proposal to City in response to City’s RFP and subsequent interview with Developer’s selection advisory committee, City shall not higher or a Design Target Site Energy Use Intensity (“EUI”) value corresponding with such a score that is generated by the Designed to Earn ENERGY STAR tool and structures, from the street, and promote parking efficiencies and shared parking between located on the Property. Developer may, at its discretion, incorporate these stalls into a structured parking facility or reconfigure their location elsewhere on the site. In all cases, eight stalls shall be reserved for exclusive use by The Magnolia. Developer and The Magnolia shall negotiate a new long-term parking lease at a nominal fee, reflecting the reconfigured parking arrangement, which shall be subject to City approval. During construction, Developer shall commit to providing continuous parking availability for Fair Housing: comply with federal fair housing laws and tenant selection policies pursuant to the low- income housing tax credit (LIHTC) program or its successor. The Developer will affirmatively and aggressively market most living units to “public safety and security” workers. The broad category of public employees includes law enforcement, emergency response, critical health, emergency capital work, fire response and prevention, air quality, related education fields, emerging training and other public safety worker Requirement: status, including the submission of audited financial statements, and sufficient historic Northwest Pipeline building and therefore may developed in two phases. The renovation of the Northwest Pipeline building will be completed prior to or concurrently with any new construction. Special conditions for the new construction to start prior to the NWP Building shall be reviewed by the City and approved at City’s sole discretion. Approval shall only be granted if Developer provides a parking plan and evidence that renovation of the Northwest Pipeline Building will commence within 90 days of the new construction. Such circumstances or special conditions shall include: • site preparation and grading of new construction • crane coordination between both NWP Building and New Construction • all uses of LIHTC extensions have been exercised and further delay would result in guaranteed loss of credits EXHIBIT TO RESOLUTION PUBLIC BENEFIT ANALYSIS MEMORANDUM TO: City Council Members SUBJECT: Analysis of Public Benefits Provided by Housing Assistance Management Enterprise’s Redevelopment of the Northwest Pipeline Property “The Grove” in Exchange for a Below-Market Rate Sale of Property INTRODUCTION Salt Lake City (the “City”) owns real property located at approximately 321 East 200 South, Salt Lake City, consisting of approximately 2.42 acres and the historic Northwest Pipeline building (the “NWP Building”), collectively the “City Property” which was previously used as the City’s police and fire headquarters until those departments were relocated in 2013. A development team consisting of Housing Assistance Management Enterprise (HAME), Xylem Projects, and Common Ground Institute, (collectively “the Developer”) was selected through a competitive Request for Proposals (“RFP”) process for the adaptive reuse of the NWP Building and the redevelopment of the vacant City Property. Developer’s proposal includes the renovation of the NWP Building, the construction of a new building, and other associated amenities. The NWP Building and newly constructed buildings will include 196 residential units, at least 51% of the residential units will be two or more bedrooms. Units will be deed restricted and made affordable to households earning an annual average income equal to or less than 60% of area median income (AMI). Developer will designate a minimum of 16 units for the voluntary 5-year Family Self-Sufficiency (FSS) Program to help families increase income and build equity. The ground floor and basement of the buildings are proposed to include a minimum 15,000 square feet of ground floor and basement commercial space reserved for neighborhood-serving commercial uses such as a daycare, healthcare services, and healthy food and beverage establishments. The site will also include a publicly accessible plaza (the “Project”) As set forth in more detail below, in consideration for the renovation of the NWP Building, the development of affordable and family-sized housing, the FSS program, and the inclusion of a daycare and other community-serving commercial uses, Developer requesting the City approve a discounted sales price of the City Property (the “Sale”). Any adjustment to the purchase price from fair market value is subject to approval by the City Council pursuant to Utah Code 10-8-2 and City Code 2.58. Accordingly, this public benefits analysis (“PBA”) has been prepared to help the City Council’s evaluation of the recommended action. LEGAL FRAMEWORK Under Utah law, after first holding a public hearing, a municipal body may appropriate funds “for any purpose that, in the judgment of the municipal legislative body, provides for the safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality.” The factors that must be considered by the City Council in determining the propriety of making such an appropriation or waiver to any type of entity or individual other than a nonprofit entity are set forth under Utah Code §10-8-2(3)(e). The factors include: (1) The specific benefits (including intangible benefits) to be received by the City in return for the arrangement; and (2) The City’s purpose in making the appropriation, including an analysis of how the safety, health, prosperity, moral well-being, peace, order, comfort or convenience of the residents of Salt Lake City will be enhanced; and (3) Whether the appropriation is “necessary and appropriate” to accomplish the reasonable goals and objectives of the City in the areas of economic development, job creation, affordable housing, blight elimination, resource center development, job preservation, the preservation of historic structures and property, and any other public purpose. BACKGROUND OF THE PROJECT AND CITY PROPERTY The City Property consists of approximately 2.42 acres and includes two vacant structures. The NWP Building, which is the primary structure, is a nine-story building built in 1958 by the Pacific Northwestern Pipeline Corporation. The NWP Building was designed by architects Slack and David Winburn in the “International Style.” It is one of two buildings in this style in Salt Lake City. The NWP Building is on the National Register of Historic Places, is therefore required to be rehabilitated in a manner that conforms to guidelines provided by the National Park Service Secretary of the Interior’s Standards for Rehabilitation as part of its redevelopment. The City Property was acquired by the City in the 1980s and was used for many years to house public safety operations, including Police, Fire, and 911 dispatch services. The NWP Building was remodeled after its acquisition by the City. The interior has been modified over the years, though the exterior of the building has been largely left intact. The facility was vacated in 2013 when the City’s public safety operations were relocated into the new public safety building at 475 South 300 East. In 2015, the City issued an RFP for the development of the City Property, along with the property immediately to the north that has since been developed as the Magnolia project, which provides affordable housing and supportive services for people that have experienced homelessness. The proposal that was selected in 2015 included the construction of the Magnolia, adaptive reuse of the NWP Building, the development of a new residential building and parking structure, and open space. The Magnolia project was completed in 2021; however, the other components of the 2015 development proposal did not move forward. In 2023, the City released a new RFP to identify an experienced development team to renovate the NWP Building and develop the vacant properties to contribute to the City’s livability goals and support the surrounding neighborhood. A selection committee comprised of elected officials, City staff, and community members selected the Developer as the development partner and has supported the Developer through the predevelopment process. TERMS OF THE SALE AND PUBLIC BENEFITS PROVIDED I. Terms of Sale Developer’s Project that will provide housing affordable to households earning between 30% and 80% AMI for at least 50 years. The Project, called The Grove, is located along 200 South, which is the busiest transit corridor in the State of Utah, used by 34 buses an hour. The Project will activate this underutilized City Property, which has sat vacant for many years and attracted nuisance activities, resulting in frequent complaints to the City from neighboring residents and businesses. Construction of the Project is anticipated to start by September of 2026, with estimated completion of construction in 2028, according to the Developer. The Project will be comprised of two buildings — the NWP Building and a new construction building with a shared parking structure. 63 residential units (27 one-bedroom units, 30 two-bedroom units, and 6 three- bedroom units) will be included as part of the adaptive reuse of the NWP Building, with the remaining 133 units in a new construction building. 16 residential units will be designated as eligible to participate in the Housing Authority of Salt Lake City’s Family Self-Sufficiency (FSS) Program, a voluntary 5-year incentive program that aims to help families increase their earnings and build equity. Developer will preserve the existing historic facade and restore the remaining historic interior elements at the NWP Building. The ground floor and basement of the NWP Building will include approximately 5,500 square feet of commercial space, and an additional 5,500 square feet of commercial space in the basement level. Commercial spaces will be specifically targeted at community-serving uses, including daycare, healthcare services, healthy food and beverage, and event spaces. The new construction buildings will include screened parking for approximately 86 stalls. Shaded community gathering space and public art installations will be included as part of the creation of a central, publicly accessible plaza on the City Property. The City has entered into an agreement for the NWP Building and its associated parcel. This agreement allows for the sale of the property at fair market value. The City intends to amend the agreement to sell the NWP Building and enter into a new agreement to sell the City Property (at the rate approved by City Council) pending Developer’s completion of certain closing requirements, which shall include the execution of a Development Agreement for the Project. Before closing on the Sale of the City Property to Developer for the Project, the City and Developer have agreed that Developer must demonstrate evidence of construction and permanent financing, and that the NWP Building shall be constructed to conform to guidelines either provided by or consistent with the National Park Service Secretary of the Interior’s Standards for Rehabilitation. Developer must also demonstrate that the Project’s new construction building shall be designed to achieve a “Designed to Earn ENERGY STAR” score of 90 or higher. Developer shall have satisfied all the requirements necessary for the commencement of site preparation and construction of the Project improvements. Developer intends to finance the Project using Low-Income Housing Tax Credits, Housing Authority bond debt and/or private debt, historic tax credits, and other awards and grants. The City’s financial contribution in the form of a below-market rate sale is essential to making The Project financially feasible given the significant cost of historic rehabilitation, affordable housing construction, and inclusion of public-serving amenities that generate limited or no operating revenue. The City’s support directly enables the transformation of a long-vacant site into a productive community asset that advances the City’s objectives. In exchange for the public benefits that Developer will be providing by creating family-sized affordable housing and community-centered commercial space that includes a daycare facility healthcare services and healthy food and beverage providers; by rehabilitating and preserving the historic NWP Building; by supporting the revitalization and activation of a currently vacant City- owned property; and by promoting opportunities for renters to build equity; Developer is requesting that the City approve a below-market rate Sale of the City Property. II. Costs to the City Under the proposed Sale between the City and Developer, the City will convey the Project Site, for $500,000 for the NWP Building property and $500,000 for the New Construction property, for a total of $1,000,000. The sales price is payable to the City in the form of subordinate promissory notes effective from certificate of occupancy. Payments shall be $1 each year for fifteen years. Following this initial period until year 15, Developer shall pay 50% of any positive surplus cash flow generated from the Project, not less than $1 per year. After year fifteen, the promissory notes shall accrue interest at a simple, non-compounding, annual rate of three percent (3%) per annum, however, no interest payments shall be due prior to final maturity. Only the interest on the outstanding unpaid principal balance at maturity will be applied to final payment due upon maturity. The sale will require that the City Property will be used solely for the Project, including but not limited to the development and operation of the renovated NWP Building, a new construction building, and the public plaza. The appraised value as of March 24, 2025, for the City Property is $18,050,000, with $17,390,000 attributed to the land and $660,000 attributed to the building. The appraised value may be updated prior to the City’s conveyance of the Property. The below-market sale would be offered as the City’s contribution to providing solutions for historic preservation, affordable and family-sized housing, and community services. The City will not have any responsibility for remediation, design, construction, operation, or maintenance of the City Property or Project. II. Public Benefits Provided by the Project. The below-market sale is necessary to unlock these public benefits. The City’s contribution bridges a financing gap that private capital alone cannot fill due to the project’s affordability commitments, costly historic preservation standards, and inclusion of non-revenue community amenities. This investment ensures that the redevelopment of the Northwest Pipeline site delivers lasting value. The Project provides numerous benefits to the City and promotes the City’s reasonable goals and objectives to preserve historic structures, increase the availability of affordable housing, improve housing stability, and increase opportunities for homeownership and other wealth and equity-building opportunities for families. Residents of the Project will be provided with access to secure screened parking and will be encouraged to take advantage of the frequent transit service available on 200 South. Commercial tenants will benefit from the project’s prime location near the City’s central business district and increased foot traffic generated by the new residents and guests. The Project will also provide residents and community members with access to a variety of community-centered businesses, including childcare, healthcare services, healthy food and beverage providers, and other small, local businesses. The addition of these businesses and services providers may create additional job opportunities for community members. Developer shall designate at minimum 16 units in the Project as eligible to participate in the Housing Authority of Salt Lake City’s Family Self-Sufficiency (FSS) Program, a voluntary 5- year incentive program that aims to help families increase their earnings and build equity. The FSS Program includes two key features – a financial incentive for participants to increase their earnings in the form of an escrow savings account that increases as their earnings increase, and case management or coaching to help participants access services they may need to overcome barriers to employment, strengthen their financial capability, and address other challenges holding them back from achieving their goals. Through FSS, as participating households increase their income, the additional rent that would normally be paid to the Developer is instead deposited into an interest-bearing escrow account, building savings over time. Coupled with individualized coaching, this structure enables families to strengthen their financial stability, reduce reliance on subsidy, and accumulate meaningful resources. In Salt Lake City, many graduates of the program have successfully used their escrow savings as down payments to purchase homes. By embedding FSS into this Project, the City will expand opportunities for current and future residents to transition from renting to homeownership, creating long-term stability and wealth-building for Salt Lake families. The Project is also designed as a transit-oriented development (TOD) that leverages the Property’s prime location along 200 South, the state’s busiest transit corridor and the route of the new bus rapid transit (BRT) line. By locating affordable housing, neighborhood-serving businesses, and community amenities directly adjacent to high-frequency transit, the Project will maximize opportunities for residents and patrons to reduce reliance on automobiles. This design supports Salt Lake City’s Climate Positive 2040 goals by encouraging walking, cycling, and transit use, thereby reducing vehicle trips, lowering greenhouse gas emissions, and improving air quality. Reduced automobile usage will also directly contribute to climate resilience by lessening local air pollution and mitigating urban heat impacts associated with heavy traffic. The Project’s TOD features advance the City’s adopted Housing SLC (2023–2027) and Thriving in Place anti- displacement strategy, which both encourage transit-oriented development and the use of public land as critical tools for ensuring long-term affordability and equitable neighborhood growth. In doing so, the Project will reduce combined housing and transportation costs for households while strengthening the viability of the City’s investment in high-capacity transit. The Project will generate significant economic vitality by bringing new residents, businesses, and community services to a long-vacant property in the heart of the City. More than 250 new residents will increase local purchasing power and strengthen neighborhood retail, while the Project’s minimum of 15,000 square feet of commercial space will be prioritized for locally owned businesses and neighborhood-serving providers. This focus on small business development and entrepreneurship will create new job opportunities, diversify the local economy, and ensure that the benefits of redevelopment circulate within the community. By combining affordable housing with accessible commercial services, the Project will catalyze a more vibrant, walkable district that attracts additional investment and enhances the overall economic resilience of Salt Lake City’s Central City neighborhood. The Project will also contribute to increased neighborhood safety. By transforming a long-vacant property into an active mixed-use development, the Project will eliminate blight and reduce nuisance activities that have historically generated frequent complaints from nearby residents and businesses. The addition of housing, commercial space, and community amenities will create a consistent community presence that enhances visibility and fosters a safer pedestrian environment. Reduced reliance on automobiles will also improve traffic safety by lowering the number of vehicle trips, thereby reducing the risk of collisions and creating safer conditions for pedestrians, cyclists, and transit riders. The City will also benefit from the revitalization of the currently vacant City Property through reduced maintenance obligations, activation of the surrounding streetscape, generation of additional tax revenue, and furthering the City’s goal of utilizing publicly owned property for the development of affordable housing. Community members will benefit from the addition of neighborhood-serving businesses that provide essential goods and services, enhancing quality of life and supporting local needs. By transforming the site into an active and vibrant space, the Project should reduce nuisance activities in the immediate area, which will lessen demands on City resources in responding to complaints and will benefit the broader community. III. Salt Lake City’s Purposes and Enhancing the Quality of Life for Residents. Through the services mentioned above, the Project aims to serve households earning 30% to 80% of AMI. By helping serve the needs of these residents, the Project is expected to provide measurable benefits to the City, including the availability of safe, stable, and affordable housing and a reduction in nuisance and public safety concerns in the area. The site’s redevelopment will benefit the surrounding neighborhood by increasing the residential population, bringing new customers to local businesses, and enhancing downtown’s vibrancy. The Project’s commercial space will create opportunities for businesses that provide valuable services to the community. IV. Accomplishing Salt Lake City’s Goals. By developing 196 units of affordable housing, the Project supports the City’s Housing Plan, Housing SLC (2023-2027), which outlines strategies to address Salt Lake City’s shortage of approximately 5,500 units of affordable housing. Housing SLC heavily prioritizes individuals and households who face the greatest risk of housing insecurity and displacement. To do this, the City has developed the following goals: 1) Make progress toward closing the housing gap of 5,500 units of deeply affordable housing by entitling a minimum of 2,000 deeply affordable (30% AMI or below) units and a minimum of 2,000 affordable (3%-80% AMI) units throughout the city. 2) Increasing housing stability throughout the city. 3) Increase opportunities for homeownership and other wealth and equity-building opportunities. The plan also provides guidance for evaluating and appropriating City funds for housing. The priorities relevant to the Project are as follows: 1) Incentivizing new residential development where it will benefit the most people. 2) Support new housing at all income levels by making it easy and attractive to build affordable housing. 3) Increase spending on rental assistance and affordable housing construction and develop new funding sources to make it possible. 4) Create rental housing opportunities in every neighborhood. Additionally, the Project helps further Strategic Priority 3d of Thriving in Place, the City’s anti- displacement strategy plan, which encourages utilization of publicly owned property to leverage land assets in support of long-term affordability and equitable development. The Project furthers City objectives by utilizing publicly owned property to create new affordable housing and creating opportunities for wealth building and homeownership. CONCLUSION The development of the Grove Project by Developer will provide significant benefit to residents of the City. Approving a below-market sale for the City Property is an appropriate use of City resources to achieve the City’s “reasonable goals and objectives…in the area of economic development, job creation, affordable housing, blight elimination, resource center development, job preservation, the preservation of historic structures and property.” The Project will bring new activity to the neighborhood by introducing new housing, businesses, and community services to a site that is currently vacant and providing no benefit to the City. The City’s participation through the below-market terms is necessary to achieve these outcomes and ensure enduring public benefit. By restoring the historic Northwest Pipeline Building, providing affordable family-sized housing that aligns with Salt Lake City’s sustainability goals, increasing opportunities for homeownership and financial stability for residents through participation in the FSS Program, and revitalizing a central neighborhood within Salt Lake City, Developer has demonstrated its intent to provide sufficient public benefit to merit a below market rate reduction for a sale of the City Property.