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RESOLUTION NO. R-34-2016 October 18, 2016
Utah Paperbox Reconsideration
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING A HOUSING MATRIX ALTERNATIVE FOR RDA OWNED PROPERTY AT 340 WEST 200 SOUTH IN THE CENTRAL BUSINESS DISTRICT PROJECT AREA.
WHEREAS, the Redevelopment Agency of Salt Lake City ("RDA") was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act; and
WHEREAS, the RDA adopted the "C.B.D. Neighborhood Development Plan" on May 1, 1982; and
WHEREAS, the RDA adopted the Central Business District Project Area 2014-2019 Strategic Plan; and
WHEREAS, the joint venture of PEG Development and Clearwater Homes (the "Developer") executed an exclusive negotiations agreement (the " Agreement" ) with the RDA for the purpose of negotiating the terms upon which the RDA would be willing to sell its property located at 340 West 200 South (the " Property", also known as Utah Paperbox) to Developer; and
WHEREAS, the RDA has worked with the Developer during the exclusive negotiation period to arrive at alternatives to the affordable housing mix and associated purchase price (the "Housing Matrix" ) for the Property that provide the Board-required number of affordable units , are consistent with the City' s housing needs, and achieve the Developer's required financial returns.
WHEREAS, the Board has made the policy determination that the Property should be sold to Developer at less-than fair market value because Developer's proposed development of the Property meets the Board' s goals for developing the CBD Project Area, including providing affordable housing and open space.
WHEREAS, the Board has determined that it is in Salt Lake City's best interest to require Developer to construct 36 residential units at the Property, which will be offered with rents at 60% of the Area Median Income (AMI) for a period of 30 years (the "Affordability Term") in exchange for discounting the purchase price of the Property from $3,220,000 to $0 ("Purchase Price Discount").
WHEREAS, at its September 13, 2016 meeting, the Board approved the sale of the Property to the Developer on different terms.
WHEREAS, the Board desires to reconsider and reapprove the sale of the Property under the terms below .
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that it hereby approves of the sale of the Property to Developer for the Purchase Price Discount, provided, however , that , as a condition of the sale of the Property to Developer , a deed restriction requiring 36 residential units to be offered with rents at 60% of Area Median Income will be recorded on the Property during the Affordability Term; and Developer will execute a deed of trust or similar document amortizing the value of the Purchase Price Discount for the Affordability Term.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 18th day of October, 2016.