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HomeMy WebLinkAboutCouncil Provided Information - 3/10/2026CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 BOARD STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY26 TO:CRA Board Members FROM:Kate Werrett, Budget and Policy Analyst DATE:March 10, 2026 RE:USA Climbing at Rio Grande District – Salt Lake Mattress Company Building ________________________________________________________________________________ ISSUE AT-A-GLANCE This staff report includes a request from the Community Reinvestment Agency (CRA) staff for guidance regarding potential modifications to Resolution No. 13 of 2024, which authorizes the lease rate and terms for the USA Climbing Headquarters and Training Facility located at approximately 500 West 300 South. Under this resolution, the CRA agreed to support USA Climbing (USAC) in the rehabilitation of the historic Salt Lake Mattress Company (SERTA Building) Building by providing $6 million in rehabilitation funding. Subsequent construction cost estimates exceeded initial projections, and USAC is unable to cover the additional expenses. Two potential options have been identified for consideration to determine the path forward. CRA staff is seeking guidance from the CRA Board regarding these options and direction on how to proceed. Goal of the briefing: Receive details regarding changes to the existing resolution, discuss the proposed modifications, and provide direction to CRA staff. ADDITIONAL & BACKGROUND INFORMATION USA Climbing is developing construction plans for its headquarters, which will be located at approximately 500 West 300 South. This location is within the CRA’s Rio Grande District and is located within the expired CRA Depot District as well as the SL Central Housing and Transit Reinvestment Zone (HTRZ) project area. To support catalytic development within the CRA’s project area, the CRA is collaborating with USA Climbing on the headquarters project, which is anticipated to draw visitors, spur investment, and contribute to a more active and well-utilized surrounding area. The attached resolution includes the details of the term sheet and of the USAC agreement. The project’s public benefits included in the resolution include: Equitable and inclusive programming Transportation demand management strategies Activation of the historic Salt Lake Mattress Company Building Design, construction, management, and participation in the maintenance of an outdoor plaza The SERTA Building rehabilitation was anticipated to save the shell of the building, not the interior. USAC received a $7.3 million cost estimate to complete this renovation work. USAC does not have the capacity to contribute the additional $1.3 million required for the rehabilitation and has therefore proposed two options for moving forward: Page | 2 Option 1: The CRA provides an additional $1.3 million to support the rehabilitation of the building shell. To fund this request, the CRA would need to reallocate resources from other projects or programs. Option 2: USAC has proposed taking the building down and rebuilding the structure with concrete masonry brick walls and the original brick used as both interior and exterior facades throughout. The building would be more structurally sound and would be built to meet the CRA’s Sustainable Development Policy. NOTE: If this option is selected, USAC will need an additional $250,000 to move forward with this option. The CRA could use contingency funds to cover this additional cost. Additional details on the proposed adaptive reuse and the reconstruction options are located within the CRA transmittal. ATTACHMENTS 1.CRA Transmittal: USA Climbing at Rio Grande District – Salt Lake Mattress Company Building 2.Resolution No. 13 of 2024 Authorizing Lease Rate and Terms for USA Climbing Headquarters and Training Facility at Approximately 500 West 300 South 3.Rio Grande District Vision and Implementation Plan USA Climbing at Rio Grande CRA Board of Directors March 10, 2026 Salt Lake Mattress Co. Building Background On January 13, 2026, the CRA outlined cost increases associated with USA Climbing’s planned adaptive reuse of the Salt Lake Mattress Company Building, and put forth a less expensive option to reconstruct the Building using its historic materials. On February 10, 2026, the Board requested that the CRA explore other options for site development/treatment of the Building, including construction of a smaller/more contemporary structure. Considerations USA Climbing is nearing completion of a design that meets all of their needs while satisfying the requirement to incorporate the Salt Lake Mattress Building in a meaningful way. Necessary uses are spread across both buildings. Changes to the Mattress Building could require changes to the larger facility. This would add significant redesign costs to the project and delay construction. Reconstruction would support the Board’s original goal of retaining the structure, and related components of the Board-endorsed Rio Grande District Plan. Given financial realities, proposal could be a good middle ground: not true preservation, but design matches historic conditions as closely as possible, and materials would be original to the building. Proposed Term Amendment Proposed Language: USA Climbing shall expend all reasonable efforts to reconstruct the Salt Lake Mattress Company Building to match historic conditions, including building placement, massing, and fenestration patterns, with exceptions subject to approval by CRA staff. The building shall be carefully deconstructed, and the historic bricks cleaned, safely stored, and reappointed to clad the interior and exterior of the structure. USA Climbing will take on the responsibility of paying the up-front costs of design, demolition, and reconstruction, and the CRA will reimburse USA Climbing a maximum of up to $6,250,000 for these costs. Current Language: “As part of the construction of the project, USA Climbing will take on the responsibility of paying the up-front costs of rehabilitating the historic Salt Lake Mattress Building. The [CRA] will reimburse USA Climbing up to $6 million for design and construction costs associated with seismic upgrades and building improvements needed to meet minimum building code requirements, unless a greater amount is approved by the [CRA] Board of Directors.” Next Steps If the Board chooses to adopt the resolution with amended term sheet: USA Climbing will advance the design of a reconstructed Mattress Building in accordance with the approved terms. The additional funding (up to $250,000) is allocated to the Rio Grande District Property Disposition & Site Work Project and will be made available for the design, demolition, and reconstruction of the Mattress Building. Salt Lake Mattress Co. Building Graphics from the Rio Grande District Vision & Implementation Plan (2024) 1907 2020 (post earthquake)2020 (post reinforcement) Salt Lake Mattress Co. Building USA Climbing HQ & National Training Center 310 S. 500 West development site and vicinity USA Climbing HQ & National Training Center On July 9, 2024, CRA Board approved term sheet for ground lease of Rio Grande site. Three (3) primary project components: New construction of primary climbing training facility Outdoor plaza Rehabilitation and activation of Salt Lake Mattress Co. Building CRA committed to reimburse USA Climbing up to $6 million for costs associated with rehabilitating Mattress Building. Approximate lease area Proposed Design Northern (front) facade Interface between Mattress Building and new construction Eastern facade Northeast corner Southern (rear) facade Challenges Eastern facade Northeast corner Southern (rear) facade Challenges Adaptive Reuse - $7.3 million Reconstruction - $6.25 million Considerations Consider proposed options for incorporation of the historic Salt Lake Mattress Company building into the USA Climbing project. Options include adaptive reuse OR reconstruction using historic materials. Both options would result in an aesthetically similar end product. Both options require additional funding (at different scales). Both options involve removal/reappointment of large swaths of historic brick. Reconstruction would minimize safety concerns during construction. Reconstruction would result in a more energy efficient building that supports USA Climbing’s goal to achieve on-site net zero status.