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Transmittal - 7/1/2021 REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY STAFF MEMO DATE: April 29, 2021 PREPARED BY: Danny Walz RE: RDA Budget Amendment #1, FY 2020-2021 REQUESTED ACTION: Discuss and consider the adoption of the proposed First Amendment to the Annual RDA Budget for Fiscal Year 2021. BUDGET IMPACTS: The First Amendment identifies appropriations for Agency operations and projects across multiple funds. EXECUTIVE SUMMARY: The purpose of the First Amendment (“Amendment”) is to allocate funds from the 2020 tax increment received across multiple funds. The bulk of allocations are a function of the increased tax increment and involve adjustments based on the actual receipt of funds. The remaining allocations increase funding for existing Agency projects and programs with the exception of a new initiative proposed as part of the Agency’s FY22 budget. ANALYSIS & ISSUES: This Budget Amendment provides for adjustments across multiple funds within the Agency budget for Fiscal Year 2021. The adjustments fall into the following categories and descriptions: Central Business District Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $25,066,500 $6,094,198 $31,160,698 Allocation is a function of actual Tax Increment received Taxing Entity Payments $15,039,900 $3,656,519 $18,696,419 Allocation is a function of actual Tax Increment received and refunded to Taxing Entities Eccles Debt Service Match $2,638,112 $1,109,229 $3,747,340 Allocation is a function of actual Tax Increment received and allocated to Eccles Debt Service Transfer to Admin $2,506,650 ($14,576) $2,492,074 Allocation towards City Admin costs Commercial Development Loan Program $250,000 $568,354 $818,354 Additional allocation available for commercial loans within project area TI Reimbursement Vivint Arena $700,000 $50,000 $750,000 Allocation is a function of actual qualified reimbursement TI Reimbursement 222 South Main $500,000 $130,000 $630,000 Allocation is a function of actual qualified reimbursement Debt Service Reserve $1,537,449 $594,673 $2,132,122 Additional allocation towards debt service reserves Commercial Development Loan Program Allocation of funds for lending toward projects that expand commercial development within the Central Business District. Reimbursement Payments - Per the respective tax increment reimbursement agreements with the property owners these are the annual reimbursement payments based on the amount the projects qualify for. Eccles Debt Service Reserve - The tax increment collection for the Eccles Theater projected a potential shortfall in debt service payments for a few years that would need to be covered by the CBD project area. The purpose of this allocation is to set aside funds in anticipation of covering the shortfall. West Capitol Hill Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $100,000 $526,903 $626,903 Allocation is a function of actual Tax Increment received and adjustment of previous TI allocations 300 West $0 $395,177 $395,177 Additional allocation towards infrastructure project Taxing Entity Payment $0 $131,726 $131,726 Allocation is a function of actual Tax Increment received and refunded to Taxing Entities 300 West - The Agency is required to allocate tax increment funds to the project as a term of the Project Area's extension (Interlocal Agreement for West Capitol Hill project area, 2013). Infrastructure improvements including street trees and landscaping, improved pedestrian crossings, and traffic calming features for 300 West from North Temple to 1000 North. Depot District Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $3,844,278 $1,531,260 $5,375,538 Allocation is a function of actual Tax Increment received Primary Housing Fund $768,856 $306,251 $1,075,107 Allocation is a function of actual Tax Increment received and fulfills statutory allocation toward affordable housing development Station Center Infrastructure $0 $959,009 $959,009 Additional allocation towards infrastructure project TI Reimbursement Gateway $1,200,000 $175,000 $1,375,000 Allocation is a function of actual qualified reimbursement TI Reimbursement Alta Gateway $260,000 $100,000 $360,000 Allocation is a function of actual qualified reimbursement TI Reimbursement Liberty Gateway $94,000 $41,000 $135,000 Allocation is a function of actual qualified reimbursement TI Reimbursement Cicero $50,000 ($50,000) $0 Allocation is a function of actual qualified reimbursement Station Center - Project consists of the construction of three new streets, reconstruction of an existing street, utility upgrades, and streetscape improvements to implement the Depot District Project Area Plan and Downtown Master Plan. The infrastructure improvements have been planned in order to facilitate private investment in the neighborhood. Reimbursement Payments - Per the respective tax increment reimbursement agreements with the property owners these are the annual reimbursement payments based on the amount the projects qualify for. Granary District Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $608,945 $317,716 $926,661 Allocation is a function of actual Tax Increment received Primary Housing Fund $121,789 $63,543 $185,332 Allocation is a function of actual Tax Increment received and fulfills statutory allocation toward affordable housing development Community and Cultural Initiatives $0 $288,173 $288,173 Allocation towards new (FY22) initiative to support public arts and cultural programming TI Reimbursement Artspace Commons $34,000 ($34,000) $0 Allocation is a function of actual qualified reimbursement Community and Cultural Initiatives - New initiative proposed as part of Agency’s FY22 budget to support public arts and cultural programming within the project area. Reimbursement Payments - Per the respective tax increment reimbursement agreements with the property owners these are the annual reimbursement payments based on the amount the projects qualify for. North Temple Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $426,810 $206,313 $633,123 Allocation is a function of actual Tax Increment received Primary Housing Fund $85,362 $41,263 $126,625 Allocation is a function of actual Tax Increment received and fulfills statutory allocation toward affordable housing development 10% School Fund $42,681 $20,631 $63,312 Allocation is a function of actual Tax Increment received and fulfills ILA requirement for School District set aside Catalytic Project $270,086 $144,419 $414,505 Additional allocation towards catalytic project Catalytic Project – Additional funding towards projects intended to encourage investment in the North Temple project area. Block 70 Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Transfer from CBD Debt Service Match $2,638,112 $1,109,228 $3,747,340 Allocation is a function of actual Tax Increment received and allocated to Eccles Debt Service Transfer from CBD Debt Service Reserve $1,537,449 $594,673 $2,132,122 Additional allocation towards debt service reserves Tax Increment Revenue $1,884,631 $261,192 $2,145,823 Allocation is a function of actual Tax Increment received Taxing Entity Payment $565,390 $78,357 $643,747 Allocation is a function of actual Tax Increment received and refunded to Taxing Entities. Reserves for Eccles Debt Service $480,959 $1,786,736 $2,267,695 Reserves for Eccles debt service payments Fundraising Fulfillment $150,000 $100,000 $250,000 Additional allocation available for fulfillment of fundraising obligations Reserves for Eccles Debt Service – As part of the payment schedule for debt service on the Eccles Theater the reserves are meant to cover years in which tax increment may be insufficient. Fundraising Fulfillment - Per the respective donor agreements as part of the theater fundraising efforts, the Agency reimburses the theater operator and contractors for costs associated with fulfilling the respective obligations. North Temple Viaduct Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $1,158,313 $942,215 $2,100,528 Allocation is a function of actual Tax Increment received Debt Service Payment to Salt Lake City $1,142,438 $928,082 $2,070,520 Allocation towards infrastructure project as per Interlocal Agreement Agency Admin $17,375 $14,133 $31,508 Allocation is a function of actual Tax Increment received and allocated toward Agency admin costs Stadler Rail Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $0 $101,927 $101,927 Allocation is a function of actual Tax Increment received Appropriation of Fund Balance $0 $69,903 $69,903 Appropriation of Tax Increment received in FY20 TI Reimbursement $0 $146,056 $146,056 Allocation is a function of actual qualified reimbursement Primary Housing Fund $0 $17,183 $17,183 Allocation is a function of actual Tax Increment received and fulfills statutory allocation toward affordable housing development Agency Admin $0 $8,591 $8,591 Allocation is a function of actual Tax Increment received and allocated toward Agency admin costs Reimbursement Payments - Per the respective tax increment reimbursement agreements with the property owners these are the annual reimbursement payments based on the amount the projects qualify for. NWQ Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Tax Increment Revenue $0 $1,684,441 $1,684,441 Allocation is a function of actual Tax Increment received Appropriation of Fund Balance $0 $197 $197 Appropriation of Tax Increment received in FY20 TI Reimbursement $0 $1,179,247 $1,179,247 Allocation is a function of actual qualified reimbursement Primary Housing Fund $0 $168,464 $168,464 Allocation is a function of actual Tax Increment received and fulfills statutory allocation toward affordable housing development Shared Costs $0 $168,464 $168,464 Allocation is a function of Development Agreement for set aside toward future infrastructure costs Agency Admin $0 $168,463 $168,463 Allocation is a function of actual Tax Increment received and allocated toward Agency admin costs Reimbursement Payments - Per the respective tax increment reimbursement agreements with the property owners these are the annual reimbursement payments based on the amount the projects qualify for. Program Income Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Project Area Seed Funds $505,215 $176,611 $681,826 Additional allocation towards initial projects within new project areas Agency Admin $176,611 ($176,611) $0 Reduction of PIF contribution toward Agency Admin costs as a function of increased contribution from other project area funds Primary Housing Fund Current Budget Proposed Budget Change Proposed Budget w/ Amendment Description Fund Transfers $1,363,779 $596,705 $1,960,484 Additional transfers are a function of actual Tax Increment received Housing NOFA $1,363,779 $596,705 $1,960,484 Additional allocation towards Notice of Funding Availability provided for within Agency Housing Strategy ATTACHMENTS: A. Resolution B. Budget Amendment #1 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ First Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2020-2021 WHEREAS, on June 9, 2020, the RDA Board of Directors (“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2020 and ending June 30, 2021, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA, as approved, ratified and finalized by the RDA Board on June 9, 2020. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the budget of the RDA. 3. Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this ___ day of ______________, 2021, to be effective upon adoption. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ April 28, 2021 2 The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. _________________________________ Erin Mendenhall, Executive Director Attest: _________________________ City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs 1 RDA Budget Amendment 1 CBD 6,094,198.00 6,094,198.00 One-time - 1 RDA Budget Amendment 1 WCH 526,903.00 526,903.00 One-time - 1 RDA Budget Amendment 1 DD 1,531,260.00 1,531,260.00 One-time - 1 RDA Budget Amendment 1 GD 317,716.00 317,716.00 One-time - 1 RDA Budget Amendment 1 NT 206,313.00 206,313.00 One-time - 1 RDA Budget Amendment 1 B70 1,965,093.00 1,965,093.00 One-time - 1 RDA Budget Amendment 1 NTV 942,215.00 942,215.00 One-time - 1 RDA Budget Amendment 1 SR 101,927.00 171,830.00 One-time - 1 RDA Budget Amendment 1 NWQ 1,684,441.00 1,684,638.00 One-time - 1 RDA Budget Amendment 1 CWH 411,058.00 596,705.00 One-time - 1 RDA Budget Amendment 1 PIF - - One-time - - Total of Budget Amendment Items 13,781,124.00 14,036,871.00 - - Total by Fund, Budget Amendment #1: Redevelopment Agency RDA 13,781,124.00 14,036,871.00 - - Total of Budget Amendment Items 13,781,124.00 14,036,871.00 - - - Current Year Budget Summary, provided for information only FY 2019-20 Budget, Including Budget Amendments Fiscal Year 2020-21 RDA Budget Amendment #1 Section G: Board Consent Agenda -- Grant Awards Section I: Board Added Items Section A: New Items Section B: Grants for Existing Staff Resources Section C: Grants for New Staff Resources Section D: Housekeeping Section E: Grants Requiring No New Staff Resources Section F: Donations Board ApprovedAdministration Proposed 1 Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs Fiscal Year 2020-21 RDA Budget Amendment #1 Board ApprovedAdministration Proposed FY 2019-20 Adopted Budget RDA BA #1 Total Total To-Date Redevelopment Agency 54,232,618 14,036,871 68,269,489 Redevelopment Agency CIP - - Total of Budget Amendment Items 54,232,618 14,036,871 68,269,489 Adopted __/__/____ Certification Budget Manager Deputy Director, City Council/RDA Board Contingent Appropriation 2