Transmittal - 1/23/2024
MARY BETH THOMPSON
Finance Director
ERIN MENDENHALL
Mayor
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
CITY COUNCIL TRANSMITTAL
________________________ Date Received: ___________
Rachel Otto, Chief of Staff Date sent to Council: ___________
____________________________________________ ____________________________
TO: Salt Lake City Council DATE: January 23, 2024
Victoria Petro
FROM: Mary Beth Thompson, Chief Financial Officer
Katherine Lewis, City Attorney
SUBJECT: Authorizing a below-market ground lease for the University of Utah for
approximately 1.175 acres of Salt Lake City owned property that would allow the University to
expand its baseball playing field to meet the NCAA requirements for a competition field. The
ground lease will be structured to require a $1.00 per year payment over a 99-year lease term:
Public Benefit Analysis under Utah Code Section 10-8-2.
SPONSOR: NA
STAFF CONTACT: Kimberly Chytraus, City Attorney (801) 535-7685
Kristin Riker, Director of Parks and Public Lands Department
Randy Hillier, Policy and Budget Analyst (801) 535-6606,
DOCUMENT TYPE: Public Benefits Analysis and Recommendation
RECOMMENDATION: It is recommended that the Salt Lake City Council approve a below-
market ground lease of 1.175 acres of Salt Lake City owned property at approximately 1735
Sunnyside Avenue to the University of Utah to facilitate the expansion of the University’s
baseball playing field to meet NCAA requirements for a competition field. Expanding the
property on which the field is built will allow the design to avoid undesirable elements such as
the need for a 35-foot wall between the ballfield and the western boundary of Sunnyside Park.
Under the proposed ground lease between the City and the University, the City will maintain
ownership of the Leased Area. The ground lease will be structured to require a $1.00 per year
payment over the 99-year lease term. The ground lease will require that the Leased Area be used
solely for recreational and baseball field purposes, with defined access to the public. The 2023
lease value of the City Property is approximately $0.68/square foot, based on the assessed value.
Katherine Lewis (Jan 23, 2024 17:25 MST)
April Patterson (Jan 23, 2024 18:06 MST)
April Patterson
rachel otto (Jan 23, 2024 18:22 MST)
01/23/2024
01/23/2024
The lease would impact an existing city-owned softball field and multi-purpose field located at
Sunnyside Park; however, the expanded ballfield could provide certain benefits to the public and
users of Sunnyside Park, including field use and access to additional amenities.
BUDGET IMPACT: NA
BACKGROUND/DISCUSSION:
PUBLIC PROCESS: Public Hearing
RESOLUTION NO. _____ OF 2024
(Authorizing Ground Lease Rate and Term to The University of Utah)
WHEREAS, the University of Utah (“University”) owns real property adjacent to
Sunnyside Park where its practice baseball field is located. The University is designing a new
ballpark to serve the University’s baseball program and meet the practice and competition needs
of the program (the “Project”); and
WHEREAS, the University desires to ground lease from the City a portion consisting of
1.175 acres of the City’s property on 1735 Sunnyside Avenue, Salt Lake City, and designated as
Sunnyside Park (the “Leased Area”) to allow the University to expand the outfield of the
baseball field to meet National Collegiate Athletics Association requirements; and
WHEREAS, the City is willing to grant to the University a ground lease rate for the
Leased Area in the amount of $1.00 per year for a term of 99 years, so long as the conditions of
the ground lease are met (the “Lease Fee Waiver”); and
WHEREAS, Utah Code Section 10-8-2(1)(a)(i) allows public entities to provide
nonmonetary assistance and waive fees to and for nonprofit entities after a public hearing; and
WHEREAS, though Utah Code Section 10-8-2 does not require a study for such waiver or
assistance, in this case the Administration voluntarily performed an analysis of the nonmonetary
assistance to the nonprofit corporation (the “Analysis”); and
WHEREAS, the City Council has conducted a public hearing relating to the foregoing, in
satisfaction of the requirements of Utah Code Section 10-8-2; and
WHEREAS, the Council has reviewed the Analysis, and has fully considered the
conclusions set forth therein, and all comments made during the public hearing.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as
follows:
1. The City Council hereby adopts the conclusions set forth in the Analysis, and
hereby finds and determines that, for all the reasons set forth in the Analysis, the Lease Fee Waiver
is appropriate under these circumstances.
2. The City Council hereby authorizes the City administration to negotiate the ground
lease on the conditions set forth in the Analysis, or on more terms beneficial to the City, and
execute the ground lease and any other relevant documents consistent with this Resolution and
incorporating such other terms and agreements as recommended by the City Attorney’s office.
Passed by the City Council of Salt Lake City, Utah, on _________, 2024.
SALT LAKE CITY COUNCIL
By: ______________________
CHAIRPERSON
ATTEST:
____________________________
CITY RECORDER
APPROVED AS TO FORM:
Salt Lake City Attorney’s Office
By: ___________________________
Kimberly Chytraus, Senior City Attorney
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MEMORANDUM
TO: City Council Members
SUBJECT: Informal Analysis of Public Benefits Provided by The University of Utah
Baseball Field Expansion in Exchange for a Below-market Ground Lease of Property
DATE: January 23, 2024
INTRODUCTION AND BACKGROUND
Salt Lake City (the “City”) owns real property located at approximately 1735 Sunnyside
Avenue, Salt Lake City, consisting of approximately 27.5 acres and designated as Sunnyside
Park (the “City Property”). The University of Utah (the “University”)owns the property
adjacent to the City Property to the northwest on Guardsman Way where its practice baseball
field is located. The University is designing a new ballpark to serve the University’s baseball
program and meet the practice and competition needs of the program by expanding the ballpark
outfield (the “Project”). The redesign is necessitated by the loss of access to Smith’s Ballpark,
which has been the historic home for University of Utah Baseball. The new ballpark must also
meet the National Collegiate Athletics Association requirements for a competition field, which
would result in the design incorporating several less desirable elements due to the existing site
constraints, including a 35-foot wall between the ballfield and the western boundary of
Sunnyside Park and no setback from Guardsman Way.
To mitigate the less desirable design elements on the site, the University has requested, and the
City administration desires, to ground lease a portion of the City Property to the University to
expand the outfield of the baseball field, in the approximate amount of 1.175 acres (the “Leased
Area”), depicted on Exhibit A attached hereto. Attached as Exhibit B are (1) a depiction of the
current Sunnyside Park layout, and (2) the University’s conceptual plan for the rebuild baseball
field and Sunnyside Park amenities (the “University Concept Plan”). The lease would impact an
existing softball field and a multi-purpose field at Sunnyside Park. However, the expanded
ballfield could provide certain benefits to the public and users of Sunnyside Park, including field
use and access to additional amenities. In addition, granting a ground lease would allow the
ballpark to have a reasonable non-buildable setback from Guardsman Way and would eliminate
the need for the 35-foot wall between the ballfield and the western boundary of Sunnyside Park.
LEGAL FRAMEWORK
Under Utah law, after first holding a public hearing, a municipality may “authorize municipal
services or other nonmonetary assistance to be provided to a nonprofit entity, whether or not the
municipality receives consideration in return.” Utah Code §10-8-2(1)(a)(v). Because the
University is a nonprofit entity, the City may waive the fair-market rental rates it would
ordinarily be required to receive for use of the City Property so long as the municipal legislative
body first holds a public hearing regarding the waiver and authorizes the Administration to enter
into the ground lease at the below-market lease rate.
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Utah Code §10-8-2(3) outlines the purposes for which a municipal body may appropriate funds
as “for any purpose that, in the judgment of the municipal legislative body, provides for the
safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of the
inhabitants of the municipality.” The factors that must be considered in determining the propriety
of such an appropriation or waiver if made to any type of entity or individual other than a
nonprofit entity are set forth under Utah Code §10-8-2(3)(e). Here, it may be helpful to consider
the same factors:
(1) The specific benefits (including intangible benefits) to be received by the City in
return for the arrangement;
(2) The City’s purpose in making the appropriation, including an analysis of how the
safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of the
residents of Salt Lake City will be enhanced; and
(3) Whether the appropriation is “necessary and appropriate” to accomplish the
reasonable goals and objectives of the City in the area of economic development, job
creation, affordable housing, blight elimination, resource center development, job
preservation, the preservation of historic structures and property, and any other public
purpose (emphasis added).
TERMS OF THE GROUND LEASE AND PUBLIC BENEFITS PROVIDED
I. Terms of Ground Lease; Costs to the City
Under the proposed ground lease between the City and the University, the City will maintain
ownership of the Leased Area. The ground lease will be structured to require a $1.00 per year
payment over the 99-year lease term. The ground lease will require that the Leased Area be used
solely for recreational and baseball field purposes, with defined access to the public. The 2023
lease value of the City Property is approximately $0.68/square foot, based on the assessed value.
The assessed fair market value of the Leased Area is $434,279.
Impacts to the City include the loss of 1.175 acres of Sunnyside Park. Granting the lease will
result in the removal of one existing softball field and one existing multi-use/lacrosse field.
However, the net result could be the loss of two softball fields at Sunnyside Park which could be
replaced by different park amenities such a multiple multi-use fields and other amenities,
depending on the reconfiguration of the fields and amenities selected through a community
engagement process. One potential reconfiguration and additional amenities is shown on the
University Concept Plan.
II. Public Benefits Provided by the Project.
The Project will provide certain benefits to the City and promotes the City’s reasonable goals
and objectives set forth in the SLC Public Lands Master Plan, “Reimagine Nature,” adopted
June 7, 2022 (the “Master Plan”).
In exchange for the ground lease of the Leased Area, the University has offered to commit
$4.2 million to be used by the City for replacement of impacted park land and amenities and
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enhanced improvements at Sunnyside Park. In addition to the $4.2 million, park impact fees may
be available for additional amenities.
The final type of amenities would be determined through a community engagement process. The
University Concept Plan illustrates some possible amenities that could be constructed:
1. Increasing the number of multi-use sports fields. The City could increase the
number of multi-use sports fields from four fields to five fields (two would be
new) and an option to program the outfield of the collegiate field as a possible
sixth multi-use field.
2. Providing two new multi-use fields. The two newly constructed multi-use fields
could be programmed for 130 days per year with an average of 500
participants/per week playing 28 weeks equates to 13,000 user visits/per year.
3. Three Pickleball Courts. Pickleball use has continued to rapidly increase
throughout Salt Lake City. For the past two years there has been a constituent
Capital Improvement Project (“CIP”) request to add pickleball courts at
Sunnyside Park.
4. Walking path that would increase the perimeter path up to 1.7 miles from 0.8
miles.
5. Additional parking areas.
Public Lands also recommends that the ground lease be contingent on securing an agreement
with the University that provides for the following benefits to the City’s reasonable satisfaction:
1. Allowing the City to program the multi-use field within the stadium during non-collegiate
use.
2. City/public access to a portion of the 1.175 acres for public use during non-collegiate
activities. This area would include the proposed berm behind the baseball field and other
landscape features.
3. City/public access to amenities such as bathrooms and concessions maintained by the
University and located inside of the ballpark for community use.
Upon approval of the lease terms, the Administration will negotiate a ground lease with the
University that will require these benefits and conditions as well as those required by Council. If
the Leased Area ever ceases to be used for the permitted purpose or the University does not
provide the required benefits or meet the required conditions, the City will be able to terminate
the ground lease.
III. Salt Lake City’s Purposes and Enhancing the Quality of Life for Residents.
The National Recreation and Park Association has studied the impact of parks and recreational
areas on the economy, health, and wellness. It found that physical activity, access to green
spaces, and services and programming that promote better health outcomes lead to less reliance
on medication, fewer trips to the hospital, and lower healthcare costs. There is significant
research that connects parks with positive mental health, resulting from both increased physical
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activity and being near green space. This may include reductions in stress levels and antisocial
behaviors. Parks can promote social cohesion, which is associated with reduced levels of
depression, stress, and cardiovascular issues. Parks can also improve air quality, help
communities adapt to changes in the climate (including providing shade in areas seeing increased
heating), and provide support to disaster planning and social resilience.
The Project may effectively expand the size of Sunnyside Park if the University allows public
access onto portions of the University property for recreational purposes. Allowing the
installation of a 35-foot wall would negatively impact the City Property by obstructing lines of
sight that provide natural surveillance, impacting park safety. In addition, the University’s
commitment to enhance the amenities at Sunnyside Park increases its usefulness to the public
and provides additional recreation facilities. The additional open space and amenities have a
positive effect on the community’s physical and mental health.
IV. Accomplishing Salt Lake City’s Goals.
The Master Plan has five main goals of what the Public Lands Department is aiming to achieve
over the next 10-20 years: (1) Sustain: Environmental Health and Sustainability; (2) Connect:
Accessible and Connected Green Spaces; (3) Welcome: Active, Authentic and Inclusive Places;
(4) Protect: A Commitment to Stewardship; and (5) Grow: Expand our Public Lands System.
Support of the Project with the ground lease accomplishes several of the City’s goals and
priorities.
(3) Welcome: Active, Authentic and Inclusive Places. Ideal parks are actively used
by the community, inclusive for all ages, abilities and cultures and strive to be authentic, or
reflective of the neighborhood and community’s culture. The Public Lands Department, in
alignment with the Mayor’s 2021 citywide vision, is committed to looking at top-down and
bottom-up community driven solutions to welcoming more people. Expanding the fields and
amenities in Sunnyside Park will allow the City to welcome more people and supports active
programming that brings people out to their parks for art, events, programs, recreation, and
community.
(4) Protect: A Commitment to Stewardship. The Public Lands Department leads the
stewardship and care of urban green spaces and seeks out opportunities to partner with advocacy
groups and schools to educate on how the public can be stewards of the land. Partnering with the
University achieves this goal by leveraging resources to make the public space more usable for
both the public and the University while preserving the open space and use of Sunnyside Park.
(5) Grow: Expand our Public Lands System. Sunnyside Park could effectively be
expanded to meet the goal of increasing the size and access of the City park space. In a fully
developed area, it is challenging to increase recreational opportunities as the population grows.
The use of the ballpark property will help grow the City’s park system and will provide
additional recreational use to the community. Partnering with the University will improve the
quality of the amenities offered at Sunnyside Park. In addition, with funds to build new softball
fields and a parking lot at the RAC, the Public Lands system will be expanded by up to 7 acres.
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CONCLUSION
The development of the Project by the University incorporating the Leased Area will be a benefit
to residents of the City as outlined and conditioned in this memo. Providing a below-market
ground lease for the Parcel is an appropriate use of City resources to achieve the City’s goals and
enhancing the safety, health, prosperity, moral well-being, peace, order, comfort, or convenience
of the residents of Salt Lake City.
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