HomeMy WebLinkAbout009 of 2026 - Tax Increment Reimbursement Request for Pickle & Hide Mixed-Use Development1
SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION NO. 09 of 2026
Pickle & Hide Tax Increment Reimbursement Agreement Term Sheet Modifications
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY COMMUNITY
REINVESTMENT AGENCY APPROVING MODIFICATIONS TO THE TERMS OF A TAX
INCREMENT REIMBURSEMENT AGREEMENT WITH MOUNTAIN WEST
DEVELOPMENT, LLC FOR THE 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
establishes the policies and procedures for entering into an Agreement with Developer.
WHEREAS, Mountain West Development, LLC (Developer) is in the process of
developing 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.
WHEREAS, based on a prior application for tax increment reimbursement submitted by
Developer for its Pickle & Hide project and a prior determination by CRA that it meets the TI
Policy’s threshold requirements, the Board passed Resolution 5 of 2025 on March 27, 2025,
approving a term sheet for tax increment reimbursement in the maximum amount of $6,094,254
between the CRA and Developer.
WHEREAS, the Board finds that subsequent events, including events related to the
demolition of the Pickle building as part Developer’s construction of the Pickle & Hide
development, are inconsistent with certain aspects of the approved term sheet.
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NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY, that the modified
term sheet for the tax increment reimbursement between the CRA and Developer which is
attached hereto as Exhibit A is hereby approved to replace the term sheet approved by the
Board’s Resolution 5 of 2025.
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
14th day of April 2026.
________________________________
Dan Dugan, Chair
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
Jennifer Huntsman, Senior City Attorney
Jennifer Huntsman (Apr 28, 2026 16:19:40 MDT)
Jennifer Huntsman
4/28/2026
Daniel Dugan (Apr 28, 2026 16:21:41 MDT)
Erin Mendenhall (Apr 30, 2026 11:35:37 MDT)
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EXHIBIT A
Mountain West Development, LLC Tax Increment Reimbursement Agreement
TERM SHEET
Parties: Mountain West Development, LLC (“Developer”) and the Salt Lake City Community
Reinvestment Agency (“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 preserv ation 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 ar e affordable at 60% of the area median income
AMI) and below and 26 of which are affordable at 80% AMI. Phase II includes the demolition
and reconstruction of the Utah Pickle Co. building to accommodate 14,500 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 approximately 2,500 square feet of 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) Building Preservation, Rehabilitation, and Adaptive Reuse
2) Walkability
3) Neighborhood Commercial and Services (FY25 annual housing funding priority)
Maximum Reimbursement
The maximum amount available for reimbursement shall be $5,078,545 (“Maximum
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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.
CRA Policy Waivers
1. Section 2.c.i. of the CRAs 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, as well as gas service to three community
fireplaces and two community grills. 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, or, provide evidence the
buildings achieve an Energy Use Intensity (EUI) value corresponding with this score.
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
as part of Phase I of the project for a minimum contribution of $350 a month.
4. Developer must participate in Utah Renewable Community program for all community
and commercial spaces inside and outside the buildings for Phase I, II, and any future
phases of the project, including but not limited to: shared hallways and services,
structured parking, community and/or building amenities, and exterior features.
5. Developer must utilize water-wise landscaping, smart irrigation systems, and, to the
extent possible, zero-emission landscaping equipment in installation and maintenance of
development landscaping.
6. Developer must submit a copy of the executed easement granting public access to the
midblock walkway between the Pickle and Hide building.
7. Developer obtains all required City approvals.
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8. Developer and CRA execute legal documents as deemed necessary by the CRA and its
legal counsel.
9. 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.
10. Such other terms as recommended by the CRA’s legal counsel and staff.
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EXHIBIT B
Legal Description
Parcel 1:
Parcel 2:
Parcel 3:
CRA Resolution 09 of 2026 - Tax Increment
Reimbursement Request for Pickle & Hide
Mixed-Use Development
Final Audit Report 2026-04-30
Created:2026-04-28
By:STEPHANIE ELLIOTT (STEPHANIE.ELLIOTT@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAZnDclTob-PnIL9JMH4izGEJE4mU6oNDp
"CRA Resolution 09 of 2026 - Tax Increment Reimbursement Re
quest for Pickle & Hide Mixed-Use Development" History
Document created by STEPHANIE ELLIOTT (STEPHANIE.ELLIOTT@slc.gov)
2026-04-28 - 4:46:06 PM GMT
Document emailed to jennifer.huntsman@slc.gov for signature
2026-04-28 - 4:47:04 PM GMT
Email viewed by jennifer.huntsman@slc.gov
2026-04-28 - 10:13:49 PM GMT
Signer jennifer.huntsman@slc.gov entered name at signing as Jennifer Huntsman
2026-04-28 - 10:19:38 PM GMT
Document e-signed by Jennifer Huntsman (jennifer.huntsman@slc.gov)
Signature Date: 2026-04-28 - 10:19:40 PM GMT - Time Source: server
Document emailed to Daniel Dugan (daniel.dugan@slc.gov) for signature
2026-04-28 - 10:19:42 PM GMT
Email viewed by Daniel Dugan (daniel.dugan@slc.gov)
2026-04-28 - 10:21:30 PM GMT
Document e-signed by Daniel Dugan (daniel.dugan@slc.gov)
Signature Date: 2026-04-28 - 10:21:41 PM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slc.gov) for signature
2026-04-28 - 10:21:43 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slc.gov)
2026-04-29 - 2:14:52 AM GMT
Document e-signed by Erin Mendenhall (erin.mendenhall@slc.gov)
Signature Date: 2026-04-30 - 5:35:37 PM GMT - Time Source: server
Document emailed to Keith Reynolds (Keith.Reynolds@slc.gov) for signature
2026-04-30 - 5:35:39 PM GMT
Email viewed by Keith Reynolds (Keith.Reynolds@slc.gov)
2026-04-30 - 6:41:30 PM GMT
Document e-signed by Keith Reynolds (Keith.Reynolds@slc.gov)
Signature Date: 2026-04-30 - 6:41:55 PM GMT - Time Source: server
Agreement completed.
2026-04-30 - 6:41:55 PM GMT