The Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, met on Tuesday, March 15, 2016 at 1:11 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; Justin Belliveau, Interim Executive 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; Katie Lewis, Agency Legal Counsel; Crayola Berger, Accountant II; Jolynn Walz, Office Manager; Kalli Ruiz, Office Facilitator; Terrell Budge, Lo-ci; Soren Simonsen, Station Center Village LLC; and George Chapman, Salt Lake City Resident.
Director Adams presided at and conducted the meeting.
Some items were considered in an order different than listed on the agenda, time stamps shown indicate when items were considered.
2. Briefing by the Staff
Ms. Lundmark said that a design competition is underway for RDA-owned property at 524 Arctic Court in the West Capitol Hill project area. She explained that ten proposals were submitted and each of those would be displayed at the Marmalade Library from March 7th through the 21st. She stated that the proposals could also be viewed and voted for online. Winners will be announced at a ceremony on March 31st.
Ms. Lundmark stated that staff held a pre-renovation open house for the RDA-owned property located 528 Arctic Court on Saturday, March 12. The Utah Heritage Foundation selected Capitol Hill Construction to perform the renovation of this residence, in partnership with the RDA. The terms are being finalized and construction should begin by May 2016.
Ms. Lundmark explained that the RDA Board directed staff to identify funds for the entire startup cost for the garden as an interim use of RDA property at 622, 624, 628, 632, and 636 West 100 South Those funds have been identified and will be incorporated into the upcoming budget amendment.
Mr. Utley stated that in order to gather input for the new 9-Line Project Area, the Agency is partnering with Communities United in order to reach a larger portion of the Latino and Refugee communities. Staff is also continuing to meet with the neighborhood and school community councils and also getting involved in community events such as “Get into the River”.
Mr. Utley explained that staff has organized some open houses and the first one for the 9-line Project Area will be held April 20th at the Glendale Library.
Ms. Lundmark announced that there will be an open house for the State Street Project Area on March 30th at Horizante Instruction and Training.
Director Rogers made a motion to approve the minutes from the meeting held February 9, 2016. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved. View Minutes
There was no report of the Chief Administrative Officer.
5. 1:28:53 PM Public Comments
6. Redevelopment Business Action Items
Mr. Butterfield indicated that the Cicero Group is applying for a $2,010,000 Loan for tenant improvements at the 35 North Rio Grande Street. The total acquisition cost for the building is approximately $10 million, and Cicero Group will be locating its corporate headquarters there. The Agency’s loan will fund the transformation of a vacant retail store space in the building into updated office space that will also include façade improvements to activate the ground floor of the building facing 500 West and the added security that this provides.
The Applicant plans to occupy approximately 30,000 square feet and move into the building towards the end of this summer. The remaining space will be leased to existing tenants with the long-term plan of the Applicant to eventually use all of the office space as the company expands.
Director Penfold asked if the RDA has been approached to provide financing for future tenant improvements for other properties within the Gateway area. Interim Executive Director Belliveau stated that the new owner of the Gateway Mall, Vestar Group, is seeking financial support for its plans to update the remainder of the Gateway project. Director Penfold expressed a strong desire to refrain from considering sales tax reimbursement, and encouraged staff to investigate other options with Vestar, such as the RDA’s loan program.
Director Rogers requested a synopsis of the RDA’s loan funds and projected payoff dates. Mr. Belliveau said staff provide an update on the status of RDA loan funds at the next meeting, and that this information could also be included for the Board’s reference in considering future loan requests.
1:42:50 PM Director Penfold made a motion to approve the resolution (Resolution R-6-2016) of the Board of Directors of the Redevelopment Agency of Salt Lake City approving a $2,010,000 loan to Fielding Group, LLC c/o Cicero Group. Director Rogers seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
2. 1:46:22 PM Consideration and adoption of a resolution of the Board of Directors approving a tax increment reimbursement agreement with Fielding Group, LLC c/o Cicero Group.
1:46:27 PM Director Penfold made a motion to adopt a resolution (Resolution R-7-2016) approving a tax increment reimbursement agreement with Fielding Group, LLC c/o Cicero Group. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
The Board will consider approval of the design development plans for infrastructure improvements in the Station Center neighborhood. View Attachment
Director Luke made a motion to approve the Station Center design development plans. Director Penfold seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
2. 2:10:57 PM Consideration and Approval to Amend the Station Center Design Standards & Guidelines
The RDA’s consultant Lo-ci will present a requested change to the Station Center Design Standards and Guidelines for the Board’s consideration. View Attachment
Ms. Wilkerson-Smith stated that staff wishes to propose an amendment to the Station Center Design Guidelines to allow developers to build stand-alone parking structures in lieu of podium-parked structures with amenity decks. Terrall Budge presented an overview of the proposed change to the Board with illustrations.
Director Penfold felt that the amended language should expressly require the developer install an innovative and attractive parking structure wrap in areas where the parking structure is publicly viewed. He indicated the proposed language stating that “Parking structures…be substantially screened” does not hold the developer accountable to build something more than a blank concrete wall.
Director Johnston asked Director Penfold if he prefers that the innovative parking structure wall treatment only be viewable by residential users or by the general public. Director Penfold responded that the amended language should require all parking structure walls viewable by the general public be wrapped in an innovative fashion.
2:12:17 PM Chairperson Adams suggested the Board direct staff to return with revised language to the Design Guidelines for the Board’s consideration at the April meeting.
3. 2:21:46 PM Consideration and Adoption of a Resolution of the Board of Directors of the Redevelopment Agency of Salt Lake City authorizing the RDA to execute an Amendment to the existing Exclusive Negotiation Agreement with Boyer Cowboy Station, LC, for the sale of RDA-owned property located between 200 South and 300 South, and 500 West and 600 West.
The RDA Board will consider adopting a resolution extending an Exclusive Negotiation Agreement with Boyer Cowboy Station L.C. to May 12, 2016. View Attachment
Ms. Wilkerson-Smith stated that Boyer Cowboy Station, LC is requesting that the negotiation period under its Exclusive Negotiation Agreement with the RDA be extended to May 12, 2016 to allow additional time to amend the Station Center Design Guidelines & Standards.
Director Penfold made a motion to adopt the resolution (Resolution R-8-2016) approving the amendment to the Exclusive Negotiation Agreement with Boyer Cowboy Station, LC to May 12, 2016. Director Rogers seconded the motion.
Upon roll call, Chairperson Adams declared the motion unanimously approved.
4. 2:23:32 PM Consideration and Adoption of a Resolution of the Board of Directors of the Redevelopment Agency of Salt Lake City approving the Basic Concept Drawings for the Renovation of the Serta Mattress Building (“Parcel 2”)
2:32:04 PM Director Penfold made a motion to adopt the resolution (Resolution R-9-2016), approving the Basic Concept Drawings for the renovation of the Serta Mattress Building. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
5. 2:34:52 PM Consideration and Adoption of a Resolution Approving the Terms for an Option to Purchase Agreement, Development Agreement, Schedule Development, and Other Agreements with Station Center Village, LLC for the Development of RDA Owned Property at 535 West 300 South
The RDA Board will consider adopting a resolution approving the terms of an Option to Purchase Agreement, Development Agreement, Schedule of Development, and other agreements, for the sale of Parcel 2 of the Station Center Project. View Attachment
Ms. Wilkerson-Smith presented the term sheet for the sale of Parcel 2 of the Station Center Project to Station Center Village, LLC. She explained that the Developer proposes to fully restore the building and lease it to one or more commercial tenants. Ms. Wilkerson-Smith highlighted items within the term sheet.
2:37:09 PM Director Mendenhall made a motion to adopt the resolution (Resolution R-10-2016) approving the terms for an Option to Purchase Agreement, Development Agreement, Schedule of Development, and Other Agreements with Station Center Village, LLC for the property at 535 West 300 South. Director Penfold seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
Consideration of approval for Parcel 5 of the Station Center project as the final site of the year-round public market. View Attachment
Mr. Butterfield provided a presentation on the final site selection.
Vice-Chairperson Kitchen stated he is concerned with demolishing historic structures and requested that staff explore further whether the red brick building could be incorporated into the development.
Director Rogers said he still felt that the public market is best suited to be located at the State Fairgrounds and that the Board should spend as much time and focus on the North Temple project area and it does in other areas. Director Andrews agreed and asked staff to provide him with information on previous studies and history as to how this site was selected over other sites.
Mr. Butterfield stated that staff will work with the Downtown Alliance to assess the market demand and conduct a fit-plan study for the market on Parcel 5.
2:48:49 PM Director Penfold made a motion approving the Station Center Parcel 5 for a year-round public market. Vice-chairperson Kitchen seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
Staff will present an overview of housing policy recommendations, with focus on property disposition and budget allocations, to inform a discussion on the RDA’s Draft Housing Guidelines and Standards. View Attachment
E. 2:54:40 PM Consideration and Approval of Modifications to Redevelopment Agency Loan Program.
The Board will consider the approval of changes to the loan program concerning criteria to incentivize projects that advance the RDA’s goals and objectives. View Attachment
Staff is seeking approval of an extension option for the Building Renovation Loan to MC Felt, LLC. View Attachment
Mr. Davis stated that the applicant requested an option to extend the five-year term of the Building Renovation Loan to ten years, with an interest rate increase from 3% to 5% in years 6-10 pursuant to RDA policy in the event that the loan is unable to be refinanced under reasonable methods and terms at the end of five years. He added that this request is being dictated by the primary lender on this project.
Vice-Chairperson Kitchen made a motion to approve the extension option (Resolution R-11-2016). Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
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).
Director Penfold made a motion to enter into a closed meeting to discuss matters of pending litigation and/or the acquisition/disposition of real property and/or attorney-client matters and that the Board meeting would stand adjourned at the conclusion of the closed meeting. Director Luke seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
Staff will present the 2015-2018 strategic plans for the RDA's project areas and request that the Board consider a motion to approve them. View Attachment
Mr. Butterfield presented a brief overview of the Strategic Plans for each of the RDA Project Areas. He stated that the Strategic Plans connect the RDA’s goals and objectives with budget priorities throughout the Implementation Schedule. Mr. Butterfield added that Staff would return in April with an update on the Strategic Plan for each Project Area.
Mr. Butterfield said that North Temple Project Area will be included in the detailed update at the April Board Meeting and that Staff recognizes the need for a large project to continue along that corridor. He added that Staff will have the ability to look into different project options for the area through a funding request.
Vice-Chairperson Kitchen made a motion to approve the RDA Strategic Plans for Depot District, West Capitol Hill, North Temple and Sugar House for 2016-2017. Director Mendenhall seconded the motion. Upon roll call, Chairperson Adams declared the motion unanimously approved.
B. Eccles Theater Update.
9. Redevelopment Business/ Written Briefings.
10. Consent
None
11. Adjournment.
There being no further business, Chairperson Adams declared the meeting adjourned.