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HomeMy WebLinkAboutCouncil Provided Information - 2/17/2025Northwest Pipeline Building Renovation The Grove Development - Public Benefit Analysis Overview The administration is requesting approval of the proposed term sheet for the below-market sale of the Northwest Pipeline property to enable historic preservation, affordable, family -sized housing, and community-serving commercial space Background •2.42 acres at 321 East 200 South •Northwest Pipeline Building, Built in 1958, International Style. •National Register of Historic Places •Public Safety Building from 1979 to 2013 RFP Requirements •Historic Preservation of the NWP Building •ENERGY STAR 90 for new construction •Prioritize leasing to locally owned businesses and neighborhood service providers •Minimize surface parking and visible parking; support multimodal access Background RFP Preferences •Housing Choice: Family-sized units, workforce housing, wealth building opportunities, homeownership. •Year-round public amenities including outdoor seating and gathering space •Art visible from the street by a SLC-based artist •All-electric buildings Background RFP Selection •11 submission to the first stage of the RFP process •13 Selection committee members comprised of City staff/elected officials and community members •Housing Authority, Xylem Projects, and Common Ground Institute’s proposal “The Grove" was selected and announced June 2024 Background Project Overview Commercial Community-serving uses Energy Star 90 New Construction Shared Parking Structure ~100 Stalls15k SF Family-SizedUnits 2+ Bedrooms 51% 196 Units 80% AMI or below with an average of 60% AMI Public Plaza With outdoor art elements The Grove Draft Terms Housing Affordability o All units 80% AMI and below o Average of 60% AMI o Affordability restricted for 50 years, annual reporting MINIMUMS NWP BUILDING: 7 units at 30% AMI 7 units at 40% AMI 7 units at 50% AMI NEW CONSTRUCTION: 14 units at 30% AMI 14 units at 40% AMI 14 units at 50% AMI Wealth Building o Financial coaching, workforce navigation, credit-building tools, and homeownership resources for all residents o Minimum of 16-households eligible for wealth building escrow accounts Draft Terms Housing Unit Size NWP Building New Construction Total Maximum 1- bedroom units 27 60 87 Minimum 2- bedroom units 30 50 80 Minimum 3- bedroom units 6 23 29 Total 63 133 196 Draft Terms Closing o Design review by City staff for RFP compliance o Building permit “Will-issue” letter o Proof of secured financing o Development Agreement, the Right to Repurchase Agreement, Restrictive Use Agreement, and Public Access Easement Timeliness o Closing must occur before June 2027 o Construction must commence before December 2028 o Construction must be complete before December 2031 Financial Request •Appraised Value of $18M •Proposed purchase price of $1M Promissory Note •Years 1 -15: $1/year •Years 16-55: 50% of surplus cash flow •Remaining balance due at year 55 with 3% simple interest. Draft Terms Sources and Uses Developer is pursuing the following funding sources: •Historic Tax Credits, •Low Income Housing Tax Credits, •Olene Walker Housing Loan Fund, •CRA Housing Development Loan and Wealth Building Pilot Program. •CRA awarded $1M HDLP and $1.25M Wealth Building program in 2024 Total Project Cost: $91,766,000 Does not include land cost The Grove Public Benefit Analysis Utah Code 10-8-2 + City Code 2.58 Allows for a below-market sale if it is deemed appropriate and necessary to advance the City’s goals for affordable housing, historic preservation, economic development, job creation, and neighborhood improvement. Legal Framework Public Benefit Analysis Public Benefits •196 affordable homes (30–80% AMI, 60% average), with 51% family-sized units •50-year affordability restriction with annual compliance reporting •Family Self-Sufficiency program and resident wealth-building programs, annual reporting requirement •Community-serving commercial space and plaza, activation of a long -vacant site •Preservation of a historic landmark and transit-oriented development Enforcement •Recorded Restrictive Use Agreement and Development Agreement •Conveyance will not occur until financing, permits, and approvals are secured •Termination rights if closing conditions are not met Benefits and Enforcement Housing Authority of Salt Lake City, Xylem Projects, and Common Ground Institute Existing Conditions Vacant |Fenced |Closed Off | The Grove sponsors Housing Authority of Salt Lake City |Xylem Projects |Common Ground Institute Overview 2.4 Acres Renovation of Historic Northwest Pipeline Building to 63 New Units New 133 Units at 50+%Family Sized Units Public Plaza with Dog Park and Activation New Ground Floor Neighborhood Commercial Center New Landscape & Hardscape in Public Right of Way New Art and Murals Integrated Throughout Activating Vacant Lot in the Heart of Downtown Project Highlights •196 Total New Units at 50+%Family Sized •FSS Integrated Wealth Building Program •Affordable Housing for Workforce Families •Historic Renovation •New Public Plaza ,Art & Neighborhood Center •Progressive Parking •Integrative Adjacent Project Approach •Building Plans Under Review in the City Questions? sponsors Housing Authority of Salt Lake City |Xylem Projects |Common Ground Institute THANK YOU