Entity Staff Report - 11/24/2021REDEVELOPMENT AGENCY OF SALT LAKE CITY
SUSTAINABLE DEVELOPMENT POLICY
RDA Board of Directors –December 14, 2021
RDA TARGET -
Mayor Mendenhall’s Salt Lake City 2021 Plan
1
NO
ON-S I T E
EMISSIONS
2
BECOME LEADER IN
SUSTAINABLE
DEVELOPMENT
3
MODEL COMMERCIAL
+RESIDENTIAL
CARBON -FREE
BUILDINGS
EMMISSION FREE BY 2023
Sustainable Development Policy
POLICY STRUCTURE
1.Threshold Requirements
a)ENERGY STAR score of 90 and participation in Elevate Buildings
b)All electric (no natural gas)
2.Program -Specific Requirements
a)Off-site net zero buildings –utilizing a utility tariff
b)On-site net zero buildings –utilizing on-site renewables
POLICY UPDATES
1.Threshold Requirements –
Will apply to all new construction projects and projects that receive over $400,000
$200,000 in RDA funding.
•May capture a few more rehab projects
•Excludes Granary District’s adaptive reuse program
•Allows for smaller emergency loans
•RDA Board can waive requirements
POLICY UPDATES
2. Interest Rate Flexibility –
•1% interest rate offered for off -site net zero
•2% interest offered for on -site net zero
Addition of the following language:
Projects are eligible for one sustainability -related interest rate reduction, with the ability to
reduce the interest rate to a minimum of 1%. Interest rates are subject to an adjustment, of up
to a 1% deviation, based on project cash flow and debt coverage ratio calculated at time of
application and underwriting.
2. Interest Rate Flexibility –
1. Union Pacific Hotel:
a. Total loan amount – $7,000,000
b. Loan terms – 12-year term; 20-year amortization; 2.39% interest
Original Loan (2.39%) Off-Site Net Zero
(-1% =1.39%)
On-Site Net Zero
(-2% = lowest 1%)
Total Interest Paid ($) $1,476,236 $842,878 $601,828
Savings ($) n/a $633,358 $874,408
Hotel Loan Terms:
1. Wasatch Community Gardens:
a. Total loan amount – $250,000
b. Loan terms – 30-year term; cash flow loan; 2.5% interest
*Assumes savings are applied as cash flow payments to the RDA.
Original Loan (2.5%) Off-Site Net Zero
(-1% =1.5%)
On-Site Net Zero
(-2% = lowest 1%)
Total Interest Paid ($) $100,233 $49,885 $30,642
Savings ($) n/a $50,348 $69,591
Loan Paid Off* 26 years 23 years 22 years
Community Garden Loan Terms:
POLICY UPDATES
3. On-Site Net Zero Clarification –
Supply 100% of the building’s electricity needs with as much on-site solar energy generation as the site
will reasonably/cost effectively allow.
*This requirement can be met through installation of an equivalently size solar array on another
structure on the property (carport, ground mount, etc.).
4. Application of Policy –The Threshold Requirements must be met by all projects that submit an
application to the RDA after the adoption of this policy that anticipate receiving a building permit on
or after January 1, 2023. The Program -Specific Sustainability Measures shall be effective
immediately.
4. Noncompliant Projects –Have 30 months from C of O to comply with all sustainability standards.
ADDITIONAL SUSTAINABILITY INCENTIVES
•Rocky Mountain Power: WattSmart Incentives
•Commercial Property Assessed Clean Energy (C -Pace)
•Energy Efficient Tax Deductions
Additional Updates
•City Department Reviews
•Cooperation with Rocky
Mountain Power
RDA PROGRAM SUSTAINABILITY MEASURES
RDA PROGRAM SUSTAINABILITY MEASURE
Tax Increment Reimbursement Program –applicable
to tax increment reimbursements over $500,000 •On-Site Net Zero building status is required
Competitively Marketed Land Dispositions (RFP)•Off-Site Net Zero is required
•On-Site Net Zero will receive higher rankings
RDA Loan Programs –applicable to any RDA loan •Off-Site Net Zero will receive interest rate reduction of 1%
•On-Site Net Zero will receive interest rate reduction of 2%