HomeMy WebLinkAboutUpdated Resolution - 5/29/20261
SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION NO. ___________
Silo Park Development Tax Increment Reimbursement Agreement
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY COMMUNITY
REINVESTMENT AGENCY APPROVING A TAX INCREMENT REIMBURSEMENT
AGREEMENT WITH SILOS SOUTH BCG LPG PARTNERS LLC AND BCG TBD
MANAGER LLC FOR THE SILO PARK 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 May 1, 2025, and pursuant to Utah Code Section 63N-23-202, the state’s
Housing and Transit Reinvestment Zone Committee conditionally approved the CRA’s Salt Lake
Central 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, Silos South BCG LPG Partners, LLC and BCG TBD Manager, LLC
(collectively, Developer) intends to develop land at approximately 455 West 500 South within the
Project Area (Property) and more particularly described in Exhibit B, with a mixed-use
development known as Silo Park which incorporates affordable housing and adaptive reuse of
historic structures.
WHEREAS, Developer submitted an application for tax increment reimbursement for its
Silo Park project which CRA staff determined meets the TI Policy’s threshold requirements.
WHEREAS, on January 27, 2025, the CRA Finance Committee evaluated Developer’s
application materials and other documentation, and based on that evaluation, recommended that
the Board approve a reimbursement of HTRZ increment from the Property to Developer
in a maximum amount sufficient to reimburse Developer’s requested reimbursable expenses of
$51,486,631.
ATTACHMENT A:
Resolution & 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 term sheet
for the tax increment reimbursement between the CRA and Developer which is attached hereto
as Exhibit A is hereby approved.
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
_______ day of June 2026.
________________________________
Dan Dugan, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Jennifer Huntsman
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
May 28, 2026
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EXHIBIT A
Silo Park Development Tax Increment Reimbursement Agreement
TERM SHEET
Parties: Silos South BCG LPG Partners, LLC and BCG TBD Manager, LLC (collectively, “Developer”)
and the Community Reinvestment Agency of Salt Lake City (“CRA”)
Scope: The Silo Park Development (the “Project”) is a planned mixed-use project located in the CRA’s
Salt Lake Central Housing and Transit Reinvestment Zone (“HTRZ”) at approximately 455 West 500
South, to be constructed in five phases. The Project will include both new construction and historic
preservation, featuring housing, commercial space, and public open space. The Project will be phased as
shown in Addendum 1 and as follows:
• Phases I and II – a mostly completed 180-unit affordable housing project with over 20%
of units restricted at 60% area median income (“AMI”) for 50 years, a 65-unit market rate
housing project, approximately 6,500 square feet of ground floor retail space, and a
planned 0.33 acre public urban park known as Silos Park that includes the 0.10 acre
preservation of the historic grain silos.
• Phase III – a planned 220-unit market rate housing project, a 275-unit workforce housing
project with approximately 1,100 square feet of ground floor retail space, and
approximately 32,395 square feet of commercial space
• Phase IV and Phase V – approximately 31,000-square foot commercial building and a
120-175 key hotel.
The Developer has provided sufficient evidence in the form of financial models and cost estimates
demonstrating that tax increment (“TI”) is necessary for the overall Project to succeed to subsidize a
portion of the cost burden from providing the aspects of the improvements that benefit the public,
including enhanced residential costs, infrastructure for publicly accessible mid-block walkways, parking,
infrastructure that supports affordable housing, historic preservation, and other horizontal infrastructure to
support the development. The Project will provide other public benefits, as well, including a publicly
accessible micro-park and preservation of the historic silo structure (the costs of which will not be
reimbursed with tax increment).
Property: Developer desires to carry out development activities on eight existing parcels:
15013810010000 – 455 W 500 S
15013760110000 – 425 W 500 S
15013760140000 – 522 S 400 W
15013770240000 – 536 S 400 W
15013770270000 – 470 W 600 S
15013770290000 – 440 W 600 S
15013770330000 – 553 S 500 W
15013770320000 – 568 S 400 W
CRA Participation:
Subject to Developer’s full compliance with the terms and conditions of this term sheet, the CRA will
enter into a tax increment reimbursement agreement (the “TIRA”) to reimburse the Developer in an
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amount equal to up to 90% of the annual TI the CRA is entitled to receive from the taxing entities, subject
to the terms of, and Developer’s compliance with, the TIRA, for a term of 25 years or the sum of the
remaining collection years of the Housing and Transit Reinvestment Zone, whichever is less.
To obtain this 90% TI reimbursement, the project has included, or will include, three additional public
benefits 1 above and beyond the CRA HTRZ Tax Increment Reimbursement policy’s thresholds, each
worth an additional 10% reimbursement including:
1. Additional Affordable Housing (10%) – This near fully constructed project is providing an
additional 10% of affordable housing units at 60% AMI above and beyond the policy’s 10%
threshold, for a total of at least 20%. The Silo Park development provides 180 deed-restricted
affordable units, representing 24% of total residential units. The unit mix of affordable
housing is as follows: Efficiency/studio (60), One-bedroom (100), Two-bedroom (20). The
affordable units will be deed-restricted for 50 years through a Land Use Restrictive
Agreement. The Land Use Restrictive Agreements will include both rent and income
restrictions which will limit the maximum rent that can be charged for a unit and will require
that the unit be made available only to households with qualifying incomes.
2. Public Open Space (10%) – A third-acre park will be incorporated within the development
in addition to other placemaking elements throughout the site. The park will be privately
owned and maintained but will be accessible to the public via a public easement recorded
over a midblock walkway that bisects the block.
3. Neighborhood Services and Commercial Spaces (FY27 annual housing funding priority)
(10%) – The project incorporates 75,000 square feet of commercial space, a portion of which
will foster economic opportunities for local entrepreneurs. The project will prioritize
commercial tenants that provide products and services currently underrepresented in the
neighborhood.
The project additionally includes three public benefits that will not contribute to the Tax Increment
Reimbursement Rate.
• Walkability – The Project infrastructure includes new, publicly accessible connections
through the block and new buildings featuring significant street level building transparency
and activity.
• Building Preservation – The project will preserve and repurpose an existing structure - the
historic silos – that contribute positively to the surrounding neighborhood.
• Public Art – The project provides publicly visible and accessible, original art that enriches
the site and promotes neighborhood identity. Public art installations will be included in the
grain silo activation, including murals on at least one building and dedicated exhibition
spaces.
Maximum Reimbursement
The maximum amount available for TI reimbursement shall be $51,486,631(“Maximum
1 While these public benefits support CRA’s decision to provide additional tax increment reimbursement to the
Project, tax increment will not be used to reimburse the costs of construction of anything other than parking,
affordable housing-related costs, enhanced residential costs or infrastructure improvements, consistent with the May
1. 2025 approval of the Housing and Transit Reinvestment Zone by the Governor’s Office of Economic
Opportunity.
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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, that the maximum total amount of the
TI reimbursement shall not exceed the Maximum Reimbursement.
Eligible Reimbursable Improvements
Developer may seek reimbursement only for parking, affordable housing, enhanced residential costs, and
infrastructure improvements (i.e. streetscape and utility improvements) (“Reimbursable Improvements”).
For the Project, Reimbursable Improvements may include some or all of the improvements listed on
Addendum 2 to this term sheet (to the extent they fit the definition of Reimbursable Improvements), up to
the Maximum Reimbursement and subject to the terms and conditions of the TIRA.
Use of Tax Increment Reimbursements
The Developer may use anticipated TI reimbursement to support or secure financing; provided, however,
that under no circumstances shall the CRA or the City be deemed to be, or to have any obligation as, a
borrower, obligor, guarantor, issuer, co-issuer, or otherwise liable party with respect to any financing of
any kind, whether public or private, including any loan, bond, note, lease, installment obligation, or other
indebtedness, whether or not such financing is related to the Project or the TI reimbursement. No
financing shall constitute a debt, liability, or obligation of the CRA or the City or any of their assets,
revenues, or taxing power. The CRA and the City shall have no obligation to make any payment, to
appropriate funds, or to provide any credit support or enhancement, whether in the event that TI
reimbursement is insufficient or not generated or otherwise, and no provision of this term sheet or any
related document shall be construed to the contrary.
Permitted Pledge for Bond Financing
All TI reimbursements will be payable solely and directly by CRA to Developer, and to no other person
or entity. Salt Lake City Corporation (“City”) and CRA acknowledge, however, that Developer may
pledge its right to receive TI reimbursement payments under the TIRA to secure bonds issued by a public
infrastructure district or other conduit issuer of bonds overlying the Property to finance Reimbursable
Improvements (a “Permitted Bond Financing”), and CRA shall not interfere with or disturb such pledge;
provided, however, that (i) the City and CRA’s obligations under the TIRA shall not be increased,
modified, or accelerated by reason of any such pledge; (ii) the City and CRA’s sole payment obligation
shall remain to remit TI when, as, and if generated, in accordance with the TIRA, solely and directly to
Developer; (iii) consistent with the “Use of Tax Increment Reimbursements” section, neither the CRA nor
the City shall be a party to, obligor under, guarantor of, or otherwise liable with respect to any such bonds
or the pledge thereof; (iv) no trustee, bondholder, lender, public infrastructure district, or other third party
shall have any direct claim against, or right to demand or receive payment from, the CRA or the City; (v)
City and CRA’s rights and remedies against Developer under the TIRA, including any rights of offset,
recoupment, or clawback, shall not be impaired or limited by any such pledge; and (vi) any purported
assignment, direction, or redirection of CRA’s payment obligation to any third party shall be void and of
no force or effect against CRA or the City.
CRA Policy Waivers
1. Section 3.b. of the CRA’s Sustainable Development Policy that requires emission-free building
operation for all new construction projects and adaptive reuse projects that receive over $900,000
in CRA funding, may be waived to accommodate natural gas stovetops in the designated
retail/restaurant spaces within the project, natural gas for residential amenity spaces, and gas-
boilers for water heating in the market-rate residential and commercial portions for the project.
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2. 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 participate in an “off-site
net zero” program at the level described as part of the conditions of approval.
Conditions for Agreement Execution:
Developer’s eligibility for TI is conditioned on the following:
1. CRA must approve all terms of the agreement in line with this term sheet.
2. The Project as fully designed and constructed must materially comply in all respects with the
descriptions in this Term Sheet and as represented in Developer’s application materials submitted
to the CRA. The CRA Board is relying on these descriptions of the Project’s individual
components and the Project as a whole in rendering its decision to adopt this term sheet and enter
into an agreement to provide TI reimbursements to Developer.
3. Developer must agree to preserve the existing historic silo buildings currently located on the site.
4. Developer must agree it will maintain the 0.33 acre park as open space for at least 25 years per
the plans previously submitted to the city.
5. Developer must agree to build ground floor retail spaces immediately adjacent to the park on both
the west and east sides of the park including an approximately 2,000-square foot outdoor retail
patio adjacent to the west side of the park.
6. Developer must agree to follow CRA’s design review process and must submit all final building
elevations, site plan, and public art specifications.
7. Developer must agree to submit a Statement of Energy Design Intent for all buildings showing a
score of 90 or higher.
8. Developer must participate in and demonstrate evidence of Rocky Mountain Power Blue Sky
renewable energy program at an amount equal to 100% of the non-LIHTC residential energy use
up to a maximum of $2,500 per month. Developer must also participate in and demonstrate
evidence of Salt Lake City Community Clean Energy Program (via Utah Renewable
Communities) at an amount equal to 100% of the commercial spaces, common areas, parking
areas (both structured and surface) Silo Park uses, and hotel energy use up to a maximum of
$2,500 per month. Developer must participate in the Rocky Mountain Power Blue Sky Program
and the Salt Lake City Community Clean Energy Program or its replacement energy offset
program(s) for the full term of the TIRA. Participation in energy offset programs shall not exceed
$5,000 per month.
9. Developer must agree to install electric cookstoves in all residential units.
10. Developer must obtain all required City approvals.
11. Developer and CRA must execute legal documents as reasonably deemed necessary by the CRA
and its legal counsel.
12. Developer must receive approval from the CRA and its legal counsel of all matters pertaining to
title; legality of the TI reimbursement request; the legality, sufficiency, and the form and
substance of all documents that are deemed reasonably necessary for the transaction; and
compliance of the Project with applicable laws and policies, as amended (including but not
limited to the Housing and Transit Reinvestment Zone Act, Utah Code § 63N-23-201 et seq., the
CRA Housing and Transit Reinvestment Zone Tax Increment Reimbursement Policy, and any
applicable conditions of the Governor’s Office of Economic Opportunity approval of the Salt
Lake Central HTRZ application).
13. Such other terms as recommended by the CRA’s legal counsel and staff as generally outlined in
this term sheet.
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ADDENDUM 1
TO
TERM SHEET
Silo Park Development Phasing Plan
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ADDENDUM 2
TO
TERM SHEET
List of Reimbursable Improvements
Property:
Tax increment shall be reimbursed from Developer’s Silo Park Development, Phases I-V.
Reimbursable Improvements:
The CRA will agree to provide an annual reimbursement to Developer to support the development cost of
certain improvements that have been identified as eligible for reimbursement, subject to the terms and
conditions in the Term Sheet and final agreements. The annual reimbursement may be applied to support
payment for any of the listed improvements as long as the conditions to payment are met and associated
required documentation is provided.
Note: The Reimbursable Improvements ($51,486,631) listed below represent hard costs only and exclude
soft costs (~$10MM) and financing costs (~$32MM) that are also costs related to the development.
SITE INFRASTRUCTURE + UTILITIES
Silo Park - Infrastructure / Utilities
Stormtech $167,440
Electrical $133,600
Storm Drain $73,900
Sewer $48,703
Earthwork & Import Fill $67,527
Subtotal $491,170
Silo Park Lane - Road/Utilities
Phase I Electrical $414,123
Phase II Electrical $819,159
Phase III Electrical $585,000
RMP Accommodations $212,458
Road + Other Utility Costs $1,092,459
Subtotal $3,123,199
Road + Infrastructure between Miller & Building 2
Existing Site Demolition $56,000
Coal Remediation $370,260
Subgrading and Paving Prep $155,000
Storm Lines & Detention Systems $395,000
Concrete: Parking Lot, Driveway, Sidewalk, Curb $186,150
Parking Light Poles, Bases, Conduits & Wiring $65,000
Striping and Wheel Stops $25,000
Plantings and Irrigation $60,000
General Conditions $97,183
Subtotal $1,409,593
Total Infrastructure + Utilities $5,023,962
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PARKING
LIHTC
Contracted Amount $11,170,388
Subtotal $11,170,388
Building 2
Structured Parking Contracted Amount $10,474,658
Subtotal $10,474,658
Building 3
Structured Parking Contracted Amount $12,743,694
Subtotal $12,743,694
Total Parking $34,388,739
ENHANCED RESIDENTIAL
Building 1
Structural Steel $555,520
Fire Treated Lumber $66,000
Elevator $175,000
Trash Chutes $45,000
Area of Refuge $11,174
Generator $56,000
ATS System $87,000
General Conditions $39,911
Subtotal $1,035,605
Building 2
Concrete (beyond structured parking costs)$1,636,473
Steel $550,959
Fire treated lumber & elevated seismic $846,376
Waterproofing $191,831
Roof top Anchors $52,000
Elevator $685,000
Trash Chutes $249,020
Plumbing & Electrical $298,847
General Conditions $405,946
Subtotal $4,916,452
Building 3
Concrete (beyond structured parking costs)$1,168,153
Structural Steel $591,093
Fire-Treated Lumber & Elevated Seismic $2,220,000
Waterproofing $128,882
Roof top Anchors $69,969
Elevator $612,000
Trash Chutes $208,770
Plumbing & Electrical $617,531
General Conditions $505,476
Subtotal $6,121,874
Total Enhanced Residential $12,073,930
Grand Total $51,486,631
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LOCATION OF INFRASTRUCTURE + UTILITY IMPROVEMENTS – SILO PARK
DEVELOPMENT
*Infrastructure and Utility Improvements are identified with green lines.
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LOCATION OF PARKING IMPROVEMENTS – SILO PARK DEVELOPMENT
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EXHIBIT B
Legal Description
District
A PARCEL OF LAND LOCATED IN LOTS 1-3, AND 5-8 OF BLOCK 29, PLAT A, SALT
LAKE CITY SURVEY, SAlD PARCEL ALSO BEING LOCATED IN SILOS CONDOMINIUMS PLAT, ON
FILE AND OF RECORD IN THE OFFICE OF THE SALT LAKE COUNTY RECORDER TN BOOK 2004P, AT
PAGE 151, SAID PARCEL ALSO BEING LOCATED IN THE SOUTHWEST QUARTER OF SECTION I,
TOWNSHIP l SOUTH, RANGE I WEST, SALT LAKE BASE AND MERIDIAN, SAID PARCEL BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF SAID BLOCK, SAID POINT ALSO BEING SOUTH 89
°57'22" WEST 64.27 FEET AND SOUTH 0°02'38" EAST 72.03 FEET FROM A BRASS CAP MONUMENT
LOCATED AT THE INTERSECTIONS OF 400 WEST AND 500 SOUTH STREETS, AND RUNNING THENCE
SOUTH 0°09'26" WEST ALONG THE EAST LINE OF SAID BLOCK 200.62 FEET TO A POINT ON THE ARC
OF A 262.04 FOOT-RADIUS-NON-TANGENT CURVE TO THE RIGHT; THENCE ALONG THE ARC OF
SAID CURVE A DISTANCE OF 132.16 FEET, THROUGH A CENTRAL ANGLE OF 28°53'49", CHORD
BEARS SOUTH 52° 30'44" WEST 130.76 FEET; THENCE NORTH 24° 45'49" WEST 3.08 FEET; THENCE
SOUTH 65°14'09" WEST 6.18 FEET; THENCE SOUTH 3.03 FEET TO A POINT ON THE ARC OF A 262.04
FOOT-NON-TANGENTRADIUS CURVE TO THE RIGHT; THENCE ALONG THE ARC OF SAID CURVE A
DISTANCE OF 56.83 FEET, THROUGH A CENTRAL ANGLE OF 12°25'36", CHORD BEARS SOUTH 74°48'
14" WEST 56.72 FEET; THENCE SOUTH 0°09'26" WEST 32.62 FEET T O THE SOUTH LINE OF LOT 7 OF
SAID BLOCK; THENCE NORTH 89°52'27" EAST ALONG SAID SOUTH LINE 165.13 FEET TO THE
SOUTHEAST CORNER OF SAID LOT 7; THENCE ALONG THE PERIMETER OF SAID BLOCK THE
FOLLOWING THREE (3) COURSES: 1) SOUTH 0°09'26" WEST 330.15 FEET, 2) SOUTH 89°52'45" WEST
660.35 FEET, 3) NORTH 0°09'27" EAST 330.09 FEET TO THE NORTHWEST CORNER OF LOT 3 OF SAID
BLOCK; THENCE NORTH 89°52'27" EAST ALONG THE NORTH LINE OF SAID LOT 3 A DISTANCE OF
330.18 FEET; THENCE NORTH 0°09'26" EAST 165.06 FEET; THENCE SOUTH 89°52' 18" WEST 330.17
FEET TO THE SOUTHWEST CORNER OF SAID SILOS CONDOMINIUM PLAT; THENCE ALONG THE
PERIMITER OF SAID SUBDIVSION PLAT THE FOLLOWING FOUR (4) COURSES: 1) NORTH 0°09'27"
EAST 69.24 FEET, 2) NORTH 78° 48'32" EAST 76.74 FEET TO A POINT ON THE ARC OF A 474.28 FOOT
RADIUS TANGENT CURVE TO THE RIGHT, 3) THENCE ALONG THE ARC OF SAID CURVE A
DISTANCE OF 90.46 FEET, THROUGH A CENTRAL CURVE OF 10° 55'40", CHORD BEARS NORTH
84°16'24" EAST 90.32 FEET, 4) NORTH 0° 09'27" EAST 72.27 FEET TO THE NORTHWEST CORNER OF
SAID SUBDIVISION, SAID POINT ALSO BEING ON THE NORTH LINE OF SAID BLOCK; THENCE
NORTH 89°52'10" EAST ALONG THE NORTH LINE OF SAID SUBDIVISION AND A PORTION OF THE
NORTH LINE OF SAID BLOCK 495.26 FEET TO THE POINT OF BEGINNING.
CONTAINS 357,006 SQ. FT. OR 8.20 ACRES