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REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-3-2019
Block 67 North Community Reinvestment Area Plan
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING THE BLOCK 67 NORTH COMMUNITY REINVESTMENT AREA PLAN
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in Utah Code 17C, the Community Reinvestment Agency Act (the “Act”).
WHEREAS, the RDA Board of Directors (“RDA Board”) adopted a resolution designating a survey area (“Survey Area”) to study whether project area development is feasible within the Survey Area.
WHEREAS, the RDA has determined that project area development is feasible within a portion of the Survey Area (“Block 67 North Project Area”), specifically the north half of Block 67, a boundary description of which is attached hereto as Exhibit A, if certain conditions are met as described below.
WHEREAS, the RDA prepared the Block 67 North Community Reinvestment Area Plan (“CRA Plan”) that is attached hereto as Exhibit B.
WHEREAS, the RDA’s purpose and intent with respect to the Block 67 North Project Area is to utilize tax increment funds derived from the Project Area to facilitate community reinvestment activities as further described in the CRA Plan.
WHEREAS, the RDA is considering creating the Project Area primarily because Salt Lake County (“County”) requested that the RDA create the Project Area to facilitate the transfer of Fifteen Million Dollars ($15,000,000) in transportation funds (“Transportation Funds”) from the County to a developer (“Developer”) to be used for construction of an underground parking structure (“Parking Structure”) located in the Block 67 North Project Area.
WHEREAS, creation of the Project Area and a subsequent tax increment reimbursement agreement with the Developer is financially feasible if the County, Salt Lake City, and the Salt Lake City School District each agree to the terms and conditions of an interlocal agreement allocating a percentage of tax increment from the Block 67 North Project Area to the RDA for reinvestment in the Block 67 North Project Area.
WHEREAS, the RDA Board of Directors desires to adopt the CRA Plan subject to the conditions herein.
NOW, THEREFORE, BE IT RESOLVED BY the Board of Directors of the Redevelopment Agency of Salt Lake City that:
1. The Board makes the following findings and determinations regarding the CRA Plan in accordance with Utah Code 17C-5-108 that the creation of the Block 67 North Project Area:
a. Serves a public purpose;
b. Produces a public benefit as demonstrated by the analysis described in Subsection 17C-5-105(2);
c. Is economically sound and feasible;
d. Conforms to Salt Lake City’s applicable general plan for the area; and
e. Promotes the public peace, health, safety, and welfare of Salt Lake City.
BE IT FURTHER RESOLVED THAT that the creation of the Block 67 North Project Area will take effect only if the following conditions are met:
1. County and the RDA shall have executed an interlocal cooperation agreement for the transfer of the Transportation Funds from the County to the RDA for the development of the Block 67 North Project Area. The interlocal cooperation agreement shall, at a minimum, include the following terms:
a. Commitment that the RDA will use the Transportation Funds for Developer’s construction of the Parking Structure, and the Transportation Funds will be repaid to the County from tax increment collected from the Block 67 North Project Area (“Tax Increment Repayment Amount”).
b. Verification from the County that the Tax Increment Repayment Amount will be used by the County for a new revolving loan program and a description of the County’s proposed loan program and associated terms for the reuse of the tax increment for other regionally significant transportation projects, including parking structures.
c. Commitment from the County that Salt Lake City and/or the RDA will have the right to request future funds from this program in its pro-rata share of the Tax Increment Repayment Amount for projects within Salt Lake City.
d. Commitment that the RDA’s obligation to pay the County the Tax Increment Repayment Amount is contingent on Developer’s construction of Phase 2 of its West Quarter Project on Block 67, as designed, with underground parking.
e. Clarification on limitation of RDA’s participation (increment cap) and that the RDA is not obligated to reimburse any shortfall in the tax increment generated by Developer’s Phase 1 of the Block 67 North Project Area, to be verified by the City Finance Director in consultation with the City RDA Director, and clarifying that the City portion of the increment is also not obligated to reimburse any shortfall that may occur.
f. Verification and oversight of construction cost estimates as they relate to the project gap and public benefits and potential that RDA will have a construction oversight role in the development of the Project Area.
2. Salt Lake County and Salt Lake City each have agreed to the terms and conditions of an interlocal agreement allocating a percentage of tax increment from the Block 67 North Project Area to the RDA for reinvestment in the Block 67 North Project Area. The RDA may also negotiate a percentage of tax increment from the Block 67 North Project Area from the Salt Lake City School District.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 26th day of March, 2019.