The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, January 12, 2016 at 2:09 p.m. in Room 326, Committee Room, City County Building, 451 South State.
In Attendance: Directors Lisa Adams, Derek Kitchen, James Rogers, Erin Mendenhall, Stan Penfold, Charlie Luke, and Andrew Johnston.
Staff in Attendance: Jackie Biskupski, Chief of Staff; D.J. Baxter, Executive Director; Justin Belliveau, Deputy Director; Ed Butterfield, Senior Project Manager; Jill Wilkerson-Smith, Project Manager; Kort Utley, Project Manager; Ben Davis, Project Manager; David Arteaga, Project Coordinator; Cara Lindsley, Project Coordinator; Tammy Hunsaker, Project Coordinator; Amanda Holty, Marketing and Communications Coordinator; Damon Georgelas, Agency Legal Counsel; Crayola Berger, Accountant II; Jolynn Walz, Office Manager; Kalli Ruiz, Office Facilitator; Jason Birmingham, Lewis Young Robertson & Birmingham, Inc.; Micah Peters, Clearwater Homes; Kyle Jardine, PEG Development; David and Kevin Phipps, 10 Clift, LLC.
Director Adams presided at and conducted the meeting.
2. 2:10:46 PM Briefing by the Staff
Outgoing Chairperson and Vice-Chairperson
Gifts were given to Stan Penfold and Lisa Adams, thanking them for their years of service as the Redevelopment Agency Chair and Vice-Chair.
RDA Goals
Executive Director Baxter said that a copy of the RDA General goals has been provided to each of the Board members. He explained that due to the change in the budget process the Board has not seen general goals for a couple years and inquired if this is something the Board would like to review the overall budget process. Executive Director Baxter asked Board members to think about it and as Spring approaches to let Staff know if this is a feature you would like to include in the upcoming budget process.
Eccles Theater Subcommittee
Executive Director Baxter explained that the Eccles Theater Subcommittee consists of Lisa Adams, Stan Penfold, and Kyle LaMalfa. Due to Director LaMalfa’s departure, another member is needed.
Chairperson Penfold asked whether any Board Members would like to serve on the Eccles Theater Subcommittee. Director Kitchen volunteered to serve.
RDA Annual Report
Executive Director Baxter stated that copies the RDA 2014 Annual Report have been provided to the Board Members.
Central Ninth Neighborhood Update
Mr. Utley explained that in the Fall 2015 two RFPs were released for properties located in the Central Ninth neighborhood. Six proposals were received and the selection committee reviewed and selected LandForge as the developer. The selection committee felt their proposal met the strategic development goals and objectives identified by the Board for the Central Ninth Neighborhood. LandForge is proposing to develop 23 market rate condominiums and 4,300 square feet of commercial space. The Agency will enter into an exclusive negotiation period with the Developer and will return in April for the Board’s consideration on the terms for the purchase agreement and schedule.
Mr. Utley presented a map of the Central Ninth Neighborhood outlining the location of the LandForge development along with other RDA owned properties and projects underway in the area.
Director Mendenhall made a motion to approve the minutes from the meeting held December 8, 2015. Vice-Chairperson Adams seconded the motion. Upon roll call, Chairperson Penfold declared the motion unanimously approved. View Minutes
Chief Administrative Officer Biskupski thanked the RDA Board for welcoming her and being receptive to her desire to be more involved in the RDA meetings. She stated she is excited and looks forward to working with the RDA, in hopes to utilize the resources the Agency can provide to help meet the infrastructure needs and economic development goals for the City.
5. 2:23:19 PM Public Comments
Mr. George Chapman expressed his concerned for the homeless population throughout the City. He stated he felt more needed to be done to get homeless individuals off the sidewalks and thought more of the RDA properties should be used to house them. He added that if the Agency wanted more developments within the City the homeless need to be removed from the sidewalks.
Chairperson Penfold asked whether any of the Board Members would like to serve as Chairperson or Vice-Chairperson of the RDA and invited interested individuals to address the Board. He clarified that the Chair serves a two-year term, and the Vice Chair serves a one-year term.
Chairperson Penfold asked Board members to mark the ballots provided for Chairperson. The ballots were tallied with all members present voting for Lisa Adams.
Director Luke nominated Director Kitchen for Vice-Chairperson. Director Mendenhall nominated herself.
Chairperson Penfold asked Board members to mark the ballots provided for Vice-Chairperson. Director Mendenhall, Vice-Chairperson Adams and Chairperson Penfold voted for Director Mendenhall. Directors Kitchen, Luke, Rogers, and Johnston voted for Director Kitchen. A majority of votes were cast for Director Kitchen.
2:36:51 PM Director Rogers made a motion to ratify the election of Vice-Chairperson Adams to serve as Redevelopment Agency Chair for a term of two years and Director Kitchen to serve as Redevelopment Agency Vice-Chair for a term of one year. Director Luke seconded the motion. Upon roll call, Chairperson Penfold declared the motion unanimously approved.
Executive Director Baxter explained that each year, the RDA discloses the entities with which we do business to allow the Board and staff to publicly disclose any business relationships. He asked that Board members complete the disclosure forms that had been provided and return them to RDA Staff.
C. 2:38:51 PM Open Meetings Training
Mr. Georgelas reviewed the guidelines and provisions of the Open Meetings training as provided in the briefing materials.
RDA staff is providing a briefing on proposed changes to RDA legislation during the 2016 Utah State Legislative session. View Attachment
Mr. Butterfield introduced Jason Birmingham as the RDA’s legislative consultant.
Mr. Butterfield provided a briefing on proposed changes to RDA legislation during the 2016 Utah State Legislative session. He said the new draft legislation is intended to clean up and partially rewrite the current Community Development and Renewal Agencies Act. He explained that there are two key issues being addressed 1) the treatment of incremental value upon the expiration of project areas; and 2) changing the project area creation process to combine Urban Renewal Areas (URA), Community Development Areas (CDA), and Economic Development Areas (EDA) into one type of area called the Community Development Reinvestment Agency Act (“CDRAA”).
Mr. Butterfield stated that additional changes would also include a new mechanisms to condemn or assume control of stalled developments, pool affordable housing resources, and permit a taxing entity committee to waive the limitation that prohibits the creation of a new project area that would cause the combined incremental value within agency project areas to exceed 10% of the total taxable value within the agency’s boundaries.
Director Luke stated that on the surface pooling affordable housing resources sounds like a good idea, he asked staff to be cautious and ensure municipalities truly have the ability to opt in or out of the program. Due to not yet having the actual proposal or knowing how things will be phrased our legislative team need to be watchful that nothing is slipped in at the last minute.
Director Luke stated that although the overall goal of pooling housing funds is to create more affordable housing, he is concerned that this type of policy could create a possible scenario where a majority of other cities opt out of the program requiring Salt Lake City to bear the lion’s share of affordable housing. He asked staff to watch that this policy isn’t a way for other communities to get out of their housing responsibilities for their residence.
The joint venture of PEG Development and Clearwater Homes is seeking approval to enter into an Exclusive Negotiations Agreement pursuant to the development of the Utah Paperbox property. View Attachment
Mr. Davis provided background and timeline on the project. He stated that Staff is seeking approval to enter into an exclusive negotiations agreement for the development of the Utah Paperbox Property, located at 340 West 240 South. If approved, Staff would return to the Board with a Term Sheet, Concept Plan and Redevelopment Schedule for review and approval. Mr. Davis noted that the developer has requested a change to the policy provision requiring that 20 percent of residential units be reserved for households that earn 60 percent of Area Median Income (AMI) and requests that the prevision be modified to a range of 60-80 percent AMI.
3:14:20 PM Director Penfold made a motion to adopt the resolution (Resolution R-1-2016). Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
Staff will update the Board on the process and schedule for creating the 9 Line and State Street Project Areas. View Attachment
Ms. Lindsley reviewed the timeline for the new project area creation process and the next steps to develop draft project area plans. She explained that the six-month process will include community outreach, additional project area research, developing the terms of interlocal agreements with Taxing Entities, and drafting and adopting Project Area Plans.
Director Rogers asked about the measures of success in these next steps. Executive Director Baxter said the measurements of success are set up directly within the Project Area Plan. Due to the new areas being quite large, the Agency will need to focus its efforts on certain activities or sub-geographies within these areas in order to ensure visible progress. Those areas of focus would become part of the Project Area Plan.
Director Mendenhall encouraged Staff to meet with the Planning Division and Community and Economic Development (CED) on its community engagement process that facilitated the creation of Master Plans within the City. Ms. Lindsley stated that Staff has been coordinating with the Planning Division and those discussions have already begun.
Director Mendenhall also suggested that Staff meet with the School Community Councils.
Director Johnston asked Staff to look at multiple community locations in order to provide options for residents to attend the open houses.
Director Rogers suggested holding small community meetings in peoples’ homes to help reach more residents within the area.
Staff will present modifications to the RDA’s Tax Increment Reimbursement Program for consideration and approval. View Attachment
Ms. Wilkerson-Smith explained that Staff is looking at ways to improve the accessibility and uses of the Agency’s Tax increment Reimbursement Program.
Ms. Wilkerson-Smith presented the following three modifications to the RDA’s Tax Increment Reimbursement Program:
1) The RDA expand the range of projects eligible to receive tax increment reimbursement beyond the current and limited circumstances (e.g., creation of structured parking, historic restoration, and creation of public open space) to any project that meets the objectives of the specific project area's Strategic Plan and the RDA's General Goals.
2) Incentivize catalytic projects by maximizing the amount of reimbursement to qualified applicants during the first ten years of each project area, and discontinue the Program’s availability five years prior to the end of each project area.
3) Projects eligible for the Program must meet standard design guidelines, as determined during a design review process, to qualify for a tax increment reimbursement.
She stated that Staff is seeking approval of these modifications.
3:28:40 PM Director Penfold made a motion to approve the modifications to the RDA’s Tax Increment Reimbursement Program as presented. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
8. Redevelopment Business/ New Business.
Staff will present an overview of current housing activities to inform a policy discussion on the RDA’s housing strategy. View Attachment
Ms. Hunsaker stated that affordable housing is an essential component of a livable and sustainable neighborhood. However, there is a mismatch between the demand for and supply of affordable housing in many of Salt Lake City’s neighborhoods, with a shortage of affordable housing for the city as a whole. As more residents move into the City, there will be a greater need for a mix of housing types in close proximity to transit, employment, and services. She explained that with growth comes the need to accommodate residential development in a way that respects the character of neighborhoods while providing a broad array of housing types and sizes affordable at a mix of income levels.
Ms. Hunsaker provided a presentation highlighting recent housing activities and policies, and how the Agency’s housing strategy is helping to address citywide housing needs. She stated that Michael Akerlow, Director of Housing and Neighborhood Development was present to assist in answering any questions that Directors might have.
Director Mendenhall and Penfold thanked Staff for providing the housing update and the collaboration with HAND.
B. 3:46:51 PM Consideration and Adoption of a Resolution Approving the Term Sheet for a Loan Request from 10 Clift, LLC to Fund Renovations to the Clift Building at 10 West Broadway in the Central Business District Project Area.
Mr. Davis explained that 10 Clift, LLC is requesting a $3,543,500 Building Renovation Loan to make significant capital improvements to the historic Clift Building, located at 10 West Broadway. The Applicant believes that such improvements are needed to reposition the underperforming Property in the market. Improvements that will be made are things such as upgrading the HVAC, renovating the lobby, structural and electrical improvements, and installation of new windows, a gym, showers, and bike storage facilities. Mr. Davis added that the Borrower will also be participating in the new Project Skyline initiative to calculate and measure energy consumption saved with these improvements.
Mr. Davis said that the project meets the Agency’s loan criteria, except for the loan amortization. The Building Renovation Loan criteria states that the loan is amortized over 20 years. In order to help the applicant achieve the minimum debt service coverage ratio for this project, Staff recommends amortizing the loan for 30 years, rather than the standard 20-year term.
Mr. Davis stated that David and Kevin Phipps from 10 Clift, L.L.C. was present to answer any questions.
Director Mendenhall said she would like to quantify the energy consumption savings and suggested listing them in the Agency’s annual report or some other reporting mechanism.
3:53:53 PM Director Penfold made a motion to adopt the resolution (Resolution R-2-2016). Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved and the resolution was adopted.
C. 3:54:31 PM Howa Garden Proposal
Discussion regarding the temporary re-use of RDA-owned property in the Depot District to be used as a space for a job training garden for homeless women. View Attachment
Mr. Butterfield stated that Staff is proposing to activate the Howa Garden property located at 628 West 100 South with a temporary use. The RDA will collaborate with Wasatch Community Gardens and the Downtown Alliance to create a temporary job training garden for homeless women. The total cost of the project is approximately $57,000 and the Agency will contribute $27,000 in matching funds.
Vice-Chairperson Kitchen expressed his desire to increase the Agency contribution to 60-70 percent. Chairperson Adams noted that although Board members may want to increase the funds going toward this project that there is not really a budget for it and that staff has pulled funds together in order to make the 50 percent contribution. She reminded Board members that in order to increase funds this discussion would need to take place during the budget process and that would delay the project until June, if approved. She encouraged Board members to utilize the funds currently available in order to get the project underway, but asked Board members to keep things such as this in mind during the next budget cycle.
9. Consent
None
10. Written Briefings
A. 4:10:43 PM Status Report on RDA Loan Portfolio
Semiannually, staff provides an update to the Board and RAC on the current status of the Agency’s loan portfolio. View Attachment
11. Closed Meeting
A. Consider Adopting A Motion To Enter Into A Closed Meeting In Keeping With Utah Code To Discuss Pending Litigation and/or The Acquisition/Disposition Of Real Property and/or Attorney-Client Matters That Are Privileged Pursuant To Utah Code Ann. § 78b-1-137(2).
Chairperson Adams pulled this item from the agenda.
12. 4:11:21 PM Adjournment.
There being no further business, Chairperson Adams declared the meeting adjourned.
This document along with the digital recording constitute the official minutes of the Redevelopment Agency of Salt Lake City Board of Directors meeting held, January 12, 2016.