Click here to view entire resolution
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-5-2020
Policy for the Expenditure of Funds Within Pre-Collection and Post-Collection Project Areas and Policy for Dissolving Project Areas After the Collection Period Ends
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING A POLICY FOR THE EXPENDITURE OF FUNDS WITHIN PROJECT AREAS BEFORE AND AFTER THE TAX INCREMENT COLLECTION PERIOD AND FOR THE DISSOLUTION OF PROJECT AREAS AFTER THE TAX INCREMENT COLLECTION PERIOD ENDS
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 (the “Act”).
WHEREAS, pursuant to the Act, a project area is established upon the effective date of the project area plan as adopted by the RDA Board of Directors (“Board”) and Salt Lake City Council (“Council”).
WHEREAS, pursuant to the Act, each project area collects tax increment for a period of years as defined in the project area budget (“Collection Period”).
WHEREAS, there are certain RDA project areas in which there is an effective project area plan but the Collection Period has not begun (“Pre-Collection Project Areas”).
WHEREAS, there are certain RDA project areas in which the Collection Period has ended but the project area remains in existence because the project areas have not been formally dissolved (“Post-Collection Project Areas”).
WHEREAS, under Section 17C-1-702 of the Act, regardless of when a Collection Period ends, the project area remains in existence until both the Board and the Council vote to dissolve the project area.
WHEREAS, the Board desires to establish a policy with respect to the expenditure of funds within Pre-Collection and Post-Collection project areas and with respect to dissolving a Post-Collection Project Area.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY hereby approving the following policy regarding expenditure of funds in Pre-Collection and Post-Collection project areas and regarding dissolving a Post-Collection Project Area:
I. UTILIZATION OF PROGRAMS & FINANCIAL TOOLS
1. Pre-Collection Project Areas
Prior to the beginning of the Collection Period, the RDA may appropriate funds for the acquisition of property or utilize programs and tools to support projects in the project area that meet the following standards:
i. Align with the project area plan.
ii. Provide for the revitalization of underdeveloped properties or rehabilitation of underutilized buildings.
iii. Are anticipated to cause a corresponding and complimentary development reaction on surrounding properties.
iv. Are strategically located to maximize community impact.
Applications for funding will be accepted and process pursuant to standard RDA policies. Programs and tools may include tax increment reimbursements, loans, grants, and other appropriations from the RDA Loan Program, Program Income Fund, or other eligible source of revenue.
2. Post-Collection Project Areas
Prior to dissolving a Post-Collection Project Area, the RDA shall continue to spend funds in a Post-Collection Project Area as follows:
a. Tax Increment Reimbursement Program: Pursuant to the RDA Tax Increment Reimbursement Program Policy, the RDA will not accept new tax increment reimbursement applications in a Post-Collection Project Area.
b. Loan Programs: Applications for new loans, grants, and other appropriations for use in a Post-Collection Project Area will be accepted and processed as follows:
i. Non RDA-initiated Projects: Applications will cease to be accepted the earlier of two years after the expiration of the Collection Period or the date of dissolution.
ii. RDA-initiated Projects: Applications for projects that include the redevelopment of RDA-owned property shall be accepted up to the date of dissolution.
c. Property Acquisition: The RDA will not appropriate money for acquisition of real property in Post-Collection project areas unless it is for affordable housing or the RDA identifies an exceptional circumstance requiring such an appropriation.
II. CONDITIONS FOR DISSOLUTION
The RDA shall dissolve a Post-Collection Project Area, pursuant to the Act, only after the following conditions are met:
1. Tax increment funds generated from the Post-Collection Project Area have been fully expended, unless funds have been allocated by the Board for affordable housing purposes.
2. All RDA-owned property has been disposed of, unless property has been identified for affordable housing or a long-term use.
3. RDA-funded public infrastructure projects have been fully funded, designed, and constructed.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 14th day of April, 2020.