Entity Staff Report - 9/7/2021CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM: Russell Weeks
Senior Policy Analyst
DATE:September 2, 2021 at 10:20 PM
RE: RESOLUTION OF INTENTION TO DESIGNATE A DOWNTOWN ASSESSMENT AREA:
PUBLIC HEARING
_________________________________________________________________________________
NEW INFORMATION
This update pertains to the September 7 public hearing on the Notice of Intention resolution
to designate a downtown special assessment area. The date for the hearing was set when the City
Council adopted the resolution at the Council’s July 20 formal meeting.
The hearing will involve the resolution’s two components:
(1) A base assessment, based on taxable commercial property values.
(2) A smaller assessment on downtown commercial properties where winter holiday lighting
is placed on streets. That assessment would be based on linear footage.
The hearing is intended to give property owners and the public the chance to speak for or
against the resolution. However, the hearing is relatively unusual because the only City Council action
required is to adopt a motion to close the hearing. A motion sheet is attached to this update.
The actual determination of whether to create the assessment area for the two components will
be after the Administration tabulates written protests. Under Utah law, written protests are the only
protests can be counted toward the success or failure of establishing an assessment area. Written
protests must be filed with the City Recorder either in person or by mail on or before 5 p.m. November
8, 2021. At this time, written protests must be filed with the City Recorder either in person by
appointment at the Recorder’s Office in the City & County Building, or by mail (Post Office Box
145515).1
Item Schedule:
Briefing: July 13, 2021
Set Date:
Public Hearing: September
7, 2021
Potential Action: July 20,
2021
Page | 2
Under Utah Law, if 40 percent or more of property owners representing the aggregate
taxable value of the property within the assessment area object to the area’s creation, the base
assessment may not be imposed. Similarly, if the property owners representing 40 percent or more of
the total linear footage identified for the holiday lighting assessment area object to its creation, the
lighting assessment may not be imposed. The City Council has the option to reduce the boundaries of
the proposed assessment area – but the Council cannot increase them.
The table below is what has occurred since the Council adopted a motion to approve the
resolution on July 20. “DED” is the Department of Economic Development:
It should be noted that the Department has mailed 1,424 notices to 712 property owners
within the proposed assessment area. The mailing addresses were taken from the Salt Lake County
Assessor’s Office list of property owners within the proposed area. Roughly 27 percent – 381 notices –
have been returned as undeliverable either because of an incorrect address, or the person listed as the
owner no longer was at the address on the notice.
The Economic Development Office has kept all the returned notices for reference if a
property owner indicates having not received a notice.
It also should be noted that before the City Council considered the resolution at its July 20
meeting that Economic Development Director Ben Kolendar and City Council Member Ana
Valdemoros agreed that the Department will work with her in the next six months to engage potential
stakeholders along North Temple Street from about 400 West Street to 650 West, and along 200
South Street between Main Street and 200 East Street about future participation in a holiday lighting
assessment. The department then would make a recommendation about including the properties in a
future assessment.
Finally, to recap, here are four informational items about the proposed assessment area:
Page | 3
The boundaries of the proposed Central Business Improvement Area are:
North Temple Street from State Street to the east right-of-way line of
Interstate 15 (includes parcels on both sides of North Temple)
East right-of-way line of I-15 from North Temple Street to 400 South
Street
400 South Street from the east right-of-way line of I-15 to 300 East
Street (includes parcels on both sides of 400 South Street)
300 East Street from 400 South Street to South Temple Street (includes
parcels on both sides of 300 East Street)
South Temple Street from 300 East Street to State Street (includes
parcels on both sides of South Temple Street)
State Street from South Temple Street to North Temple Street (includes
parcels on both sides of State Street)2
o Properties below $20,000 in valuation as well as residential, ecclesiastical and
government owned properties are exempt from the assessments, except for exempted
properties whose owners agree in writing to be assessed.3
o If the assessment area receives enough support from downtown property owners, the
total assessment revenue over three years would be $5,251,285.4 That compares to
projected revenue for the current area of $4,884,454.5 It might be noted that the total
figures both respectively include $177,378 in revenue for the smaller holiday lighting
assessment. The holiday lighting assessment is based on 13,870 linear feet times $12.79
per linear foot.6
o Minus the holiday lighting assessment, the annual projected assessment revenue for
the proposed assessment area would be $1,691,300 in each of the three years. The
proposed assessment rate for the property is .00142. It might be noted that the
proposed rate in the year 2000 was .001425.7
Information below this line has appeared in previous reports.
The City Council received a briefing July 13 on the Resolution of Intention to designate a downtown
special assessment area.
If the Council adopts the proposed resolution, it would start a process to levy assessments
against properties within the proposed assessment area. According to the proposed resolution the
assessments would be used for “economic promotion activities” for the next three years. The proposed
resolution also would “fix a time and place for protests against the Assessment Area and its
assessments,” and other matters involving the proposed area.
It also should be noted that the proposed resolution contains two components: (1) a base
assessment, based on taxable commercial property values, and (2) a smaller assessment on
commercial properties where winter holiday lighting is placed on streets. The smaller assessment will
be based on linear footage.
In a discussion after the briefing, Economic Development Department Director Ben Kolendar
and Council Member Ana Valdemoros agreed that the department will work with her in the next six
months to engage potential stakeholders along North Temple Street from about 400 West Street to
650 West, and along 200 South Street between Main Street and 200 East Street about future
Page | 4
participation in a holiday lighting assessment. The department then would make a recommendation
about including the properties in the future assessment.
It should be noted again that, although the proposed ordinance sets a September 7, 2021, date
for a public hearing in which people can speak for or against the proposed assessment area, written
objections are the only objections that officially will count in determining whether the area ultimately
is created.
Written objections must be received by the City Recorder’s Office by 5 p.m. on November 8. At
this time, written protests must be filed with the City Recorder either in person by appointment at the
Recorder’s temporary office at 349 South 200 East Street, or by mail (Post Office Box 145515).8
A motion sheet is attached to this updated report. Motion No. 1 includes a legislative intent
that the Economic Development Department engage potential future participants in a holiday lighting
assessment.
Information below this line has appeared in a previous report.
ISSUE AT-A-GLANCE
Goal of the briefing: To hear the process for the proposed renewal of a special
assessment area on commercial properties that would fund the economic promotion
of downtown Salt Lake City and activities within the downtown for the benefit of
business and commercial property owners, and to discuss any issues the City Council
may find relevant to the proposed area renewal.
o The briefing is the first in a series of steps the Administration and City Council must
take to renew an assessment area that has existed since 1991 to promote the economic
development of downtown Salt Lake City and economic promotion activities within it.
o The current assessment area is scheduled to expire April 21, 2022. The Administration
plans to have the renewed area – with the same borders as the current assessment area
– in place by April 22, 2022.
o The assessment will have two components: (1) a base assessment, based on taxable
commercial property values, and (2) a smaller assessment on downtown commercial
properties where winter holiday lighting is placed on streets. That assessment will be
based on linear footage. It should be noted that properties under $20,000 in valuation
as well as residential, ecclesiastical and government owned properties are exempt from
the assessments, except those whose owners agree in writing to be assessed.9
o If the assessment area receives enough support from downtown property owners, the
total assessment revenue over three years would be $5,251,285.10 That compares to
projected revenue for the current area of $4,884,454.11 It might be noted that the total
figures both respectively include $177,378 in revenue for the smaller holiday lighting
assessment. The holiday lighting assessment is based on 13,870 linear feet times $12.79
per linear foot.12
o Minus the holiday lighting assessment, the annual projected assessment revenue for
the proposed assessment area would be $1,691,300 in each of the three years. The
proposed assessment rate for the property is .00142. It might be noted that the
proposed rate in the year 2000 was .001425.13
Page | 5
o The proposed resolution also is notable because the City will seek proposals on
managing the contract to promote the downtown. Since the assessment area’s inception
in 1991 the City traditionally has awarded contracts every six years. The contract has
contained an optional renewal clause after three years. It might be noted that the
Downtown Alliance has been awarded the contract every time the City has sought
requests for proposals.
o Under Utah Law, if 40 percent or more of property owners representing the aggregate
taxable value of the property within the assessment area object to the assessment area’s
creation, the assessment area cannot be created. Similarly, if 40 percent of the total
linear footage identified for the holiday lighting district object to its creation, the
lighting district cannot be created.
Written objections or protests to the assessment area or the lighting district, or
both, must be filed by 5 p.m. November 8 with the City Recorder to count as an
objection or protest.14 Oral protests or objections at the September 7 public
hearing will not count unless people protesting or objecting also file their
protests or objections in writing.
It might be noted that for the holiday lighting district owners of corner
properties would be assessed for the linear footage of one of the two streets
fronting their properties instead of for both streets.
POLICY QUESTIONS
1. As the transmittal notes, “Parcels under $20,000 in valuation as well as residential,
ecclesiastical, and government owned properties are exempt from the assessment, except those
whose owners agree in writing to be assessed.” Is there any deadline for owners of exempt
properties to notify the City in writing that they would like to be assessed?
2. The boundaries of the proposed assessment area have remained relatively static for several
years. Given the development climate downtown, when might there be an appropriate time to
expand the assessment area? Would expanding the assessment area dilute promotion activities
in the existing assessment area?
ADDITIONAL & BACKGROUND INFORMATION
The downtown assessment area has been a key component of the economic development of
the downtown for several City Councils.
The process for determining the area’s creation follows steps established in Utah law for
special assessment areas. The most immediate steps include the scheduled July 13, 2021, briefing at
the City Council’s work session, and the Council’s formal consideration July 20 of a resolution
declaring the Council’s intent to designate parts of downtown Salt Lake City as an assessment area. If
the Council adopts the resolution, it would trigger a public hearing date of September 7, 2021, to hear
objections related to the assessment area.
Again, only property owners’ written protests count toward the success or failure of
establishing the assessment area. The written protests must be filed with the City Recorder either in
person or by mail on or before 5 p.m. November 8, 2021.
Page | 6
The protests are then tabulated based on the taxable value of property. If the aggregate
taxable value of the protests equals at least 40 percent of proposed assessment area, the assessment
cannot go forward. Similarly, in the smaller holiday street lighting assessment area if at least 40
percent of property owners’ linear street frontage protest the assessment, the assessment cannot be
imposed.
According to the Administration, the 2020 value of nonexempt taxable property in the
assessment area is $3.573 billion.15 That compares to a 2018 taxable property valuation of $ 3.314
billion.16
The boundaries of the proposed Central Business Improvement Area are:
North Temple Street from State Street to the east right-of-way line of
Interstate 15 (includes parcels on both sides of North Temple)
East right-of-way line of I-15 from North Temple Street to 400 South
Street
400 South Street from the east right-of-way line of I-15 to 300 East
Street (includes parcels on both sides of 400 South Street)
300 East Street from 400 South Street to South Temple Street (includes
parcels on both sides of 300 East Street)
South Temple Street from 300 East Street to State Street (includes
parcels on both sides of South Temple Street)
State Street from South Temple Street to North Temple Street (includes
parcels on both sides of State Street)17
The holiday street lighting assessment applies to the following streets:
200 South Street between 300 West and 400 West streets
200 South Street between West Temple and 200 West streets (south side only)
Pierpont Street between West Temple and 200 West streets
West Temple Street between 400 South and 200 South streets
Main Street between 400 South and South Temple streets
Market Street between West Temple and Main streets (north side only)
State Street between 400 South and South Temple streets.18
1 Notice of Intent Resolution, Page 7.
2 Please see map in Administration transmittal, Page 5.
3 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 3.
4 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 2.
5 City Council staff report, Notice of Intention to Create Central Business Improvement Area, Russell Weeks, Page 2.
6 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 2.
7 Memo, Motion Options for Proposed Renewal of Central Business Economic Improvement District DA-CBID-00,
November 30, 2000.
8 Notice of Intent Resolution, Page 7.
9 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 3.
10 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 2.
11 City Council staff report, Notice of Intention to Create Central Business Improvement Area, Russell Weeks, Page 2.
12 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 2.
Page | 7
13 Memo, Motion Options for Proposed Renewal of Central Business Economic Improvement District DA-CBID-00,
November 30, 2000.
14 Proposed Notice of Intent, Page 7.
15 Administration Transmittal, Ben Kolendar, June 22, 2021, Page 2.
16 City Council staff report, Notice of Intention to Create Central Business Improvement Area, Russell Weeks, August 9,
2018, Page 3.
17 Please see map in Administration transmittal, Page 5.
18 Please see map in Administration transmittal, Page 6.
DMWEST #13053948 v1
Salt Lake City, Utah
September 7, 2021
A regular meeting of the City Council of Salt Lake City, Utah, was held on Tuesday,
September 7, 2021, at the hour of 7:00 p.m. via electronic means, at which meeting there
were present and answering to roll call the following members who constituted a quorum:
Amy Fowler Chair
James Rogers Vice-Chair
Dan Dugan Councilmember
Ana Valdemoros Councilmember
Dennis Faris Councilmember
Darin Mano Councilmember
Chris Wharton Councilmember
Also present:
Erin Mendenhall Mayor
Katherine Lewis City Attorney
Cindy Lou Trishman City Recorder
Absent:
After the meeting had been duly called to order and the minutes of the preceding
meeting read and approved, the following proceedings, among others, were duly had and
taken:
The City Recorder notified the City Council that the Notice of Intention (the
“Notice of Intention”) to designate the Salt Lake City, Utah Central Business Improvement
Assessment Area No. DA-CBIA-22 (the “Assessment Area”), authorized by resolution
adopted by the City Council on July 20, 2021, had been (i) posted in at least three public
places within the City’s boundaries at least 20 but not more than 35 days prior to September
7, 2021 and (ii) published on the Utah Public Notice Website described in Utah Code
Section 63A-16-601 for four consecutive weeks before the deadline for filing protests; also
that a copy of such Notice of Intention has been mailed to each owner of property to be
assessed within the Assessment Area at the last known mailing address of such owner,
using the last completed real property assessment rolls of Salt Lake County, Utah and that
it also has been mailed, to “Owner” at the street number of each piece of improved property
to be affected by said assessment (or if a street number has not been so assigned, then the
post office box, rural route number, or any other mailing address of the improved property),
said notices having been mailed not later than ten (10) days after the posting of the Notice
of Intention; that the Notice of Intention has been on file in the City Recorder’s office
during all regular office hours from July 20, 2021 to September 7, 2021, for the
4845-8862-7446, v. 2 2
examination of any interested parties; that said Notice of Intention directed that all persons
desiring to protest and oppose the creation of the Assessment Area might appear and file
in writing said protests and objections.
The purpose of this public hearing is to hear all: (a) objections to the designation of
the proposed Assessment Area or the improvements proposed to be provided in the
Assessment Area, (b) objections to whether the assessments will meet the requirements of
Utah Code Section 11-42-409 and (c) persons desiring to be heard, all as described in the
Assessment Area Act, Title 11, Chapter 42 of the Utah Code and in the Notice of Intention
adopted by the Council on July 20, 2021.
4845-8862-7446, v. 2 3
The following persons then submitted protests at the hearing:
The names of the protestants and descriptions of their property are as follows:
Property Owner Property Description
4845-8862-7446, v. 2 4
ADOPTED AND APPROVED this September 7, 2021.
(SEAL)
By:
Chair
ATTEST:
By:
City Recorder
4845-8862-7446, v. 2 5
After the conduct of other business not pertinent to the above, the meeting was, on
motion duly made and seconded, adjourned.
(SEAL)
By:
Chair
ATTEST:
By:
City Recorder
4845-8862-7446, v. 2 6
PRESENTATION TO THE MAYOR
The foregoing minutes were presented to the Mayor for her approval or disapproval
on ___________, 2021.
By:
Chair
MAYOR’S APPROVAL OR DISAPPROVAL
The foregoing minutes are hereby approved on this ____________, 2021.
By:
Mayor
4845-8862-7446, v. 2 7
STATE OF UTAH )
: ss.
COUNTY OF SALT LAKE )
I, Cindy Lou Trishman, the duly chosen, qualified, and acting City Recorder of Salt
Lake City, Utah, do hereby certify as follows:
(a) That the foregoing typewritten pages constitute a full, true, and
correct copy of the record of proceedings of the City Council at a regular meeting
thereof held in Salt Lake City on September 7, 2021, at 7:00 p.m., insofar as said
proceedings relate to the public hearing of the City Council regarding the
designation of the Salt Lake City, Utah Central Business Improvement Assessment
Area No. DA-CBIA-22 to provide economic promotion activities therein
described, as the same appears of record in my office; that I personally attended
said meeting, and that the proceedings were in fact held as in said minutes specified.
(b) That due, legal, and timely notice of said meeting was served upon
all members as required by law and the rules and ordinances of Salt Lake City.
(c) That the above minutes were deposited in my office on September
7, 2021, have been recorded by me, and are a part of the permanent records of Salt
Lake City, Utah.
IN WITNESS WHEREOF, I have hereunto subscribed my official signature and
affixed the seal of Salt Lake City, Utah, this September 7, 2021.
(SEAL)
By:
City Recorder
4845-8862-7446, v. 2 8
CERTIFICATE OF COMPLIANCE WITH OPEN MEETING LAW
I, Cindy Lou Trishman, the undersigned City Recorder of Salt Lake City, Utah, do
hereby certify, according to the records of the City Council of Salt Lake City, Utah (the
“City Council”) in my official possession, and upon my own knowledge and belief, that in
accordance with the requirements of Section 52-4-202, Utah Code Annotated 1953, as
amended, I gave not less than twenty-four (24) hours public notice of the agenda, date,
time, and place of the September 7, 2021, public meeting held by the City Council as
follows:
(a) By causing a copy of such Notice, in the form attached hereto as
Schedule 1, to be delivered to the Salt Lake Tribune on September ___, 2021, at
least twenty-four (24) hours prior to the convening of the meeting; and
(b) By causing a copy of such Notice to be posted on the Utah Public
Notice Website (http://pmn.utah.gov) at least twenty-four (24) hours prior to the
convening of the meeting.
In addition, the Notice of 2021 Annual Meeting Schedule for the City Council
(attached hereto as Schedule 2) was given specifying the date, time, and place of the regular
meetings of the City Council to be held during the year, by causing said Notice to be (a)
posted on ___________, 2021, at the principal office of the City Council, (b) provided to
at least one newspaper of general circulation within Salt Lake City, Utah, on
____________, 2021, and (c) published on the Utah Public Notice Website
(http://pmn.utah.gov) during the current calendar year.
IN WITNESS WHEREOF, I have hereunto subscribed my official signature this
September 7, 2021.
(SEAL)
By:
City Recorder
DMWEST #13053948 v1
SCHEDULE 1
MEETING NOTICE
S-2
4845-8862-7446, v. 2
SCHEDULE 2
ANNUAL MEETING NOTICE