everybody and welcome to the
first CRA meeting after school started. >> I hope you're all excited about school
in being in session now. I can see all those exciting faces.
» [laughter] >> Great to be here. And so, welcome to the
18th of August, 2026 Community Reinvestment Agency board meeting. Our
meetings are public, and you're welcome to join us in person, on Zoom, or by
watching from the city council's agenda page, YouTube, or SLCTV. We hope you
continue to join us in whichever manner you feel most comfortable.
Uh, we begin our meetings with comments to the board. I'd like to remind you
that our written comments may be submitted to the CRA office via uh mail,
PO Box 145476, Salt Lake City, Utah 84115
or by emailing at at councsil.comments at slc.gov or calling our uh phone line
8015357654.
Before we start, I want to remind everyone about our rules at the quorum,
which are in place to ensure our meetings move along well and and to help
everyone feel comfortable sharing their comments. A copy of the full rules of
the quorum are available. Uh just ask if you'd like to uh make a general comment
today. We are accepting comments in person online on Zoom and Scott Corp
from our staff will moderate our Zoom and we'll message you with any questions
about your registration. If you need to speak with our staff, please select
Scott from the list of participants or you can also raise your hand in Zoom to
indicate that you need some help from the host. Staffs are handling many
tasks, so please limit your messages to technical issues and minimalformational
uh updates. ESAC Ganedo uh on our staff will be calling those who wish to
comment based on the order in which we receive the names. If you're on Zoom,
please unmute your mic when when ESAC calls your name. And now we will open
our general comment periods. Isac, we'll take our first commenter.
» Thank you, Council Member Dugan. I don't see anybody registered uh yet today.
» Okay. Anybody here in person that was looking to make a comment?
All right. Thank you. So, we'll move on to item B, which is a public hearing. Uh
individual also may speak to the board once on the public hearing side of the
house. Well, we just did that. No one's here for the
Oh, wait a second. Sorry. Never mind. Excuse me. Uh,
individuals may speak to the board once per public hearing topic for two
minutes. However, written comments are always accepted. And now we're moving on
to item B1, which is a resolution to the CR budget amendment number one for
fiscal year 2026 to 27. And the same rules of theor apply. And uh, I will now
pass the time over to Kate.
and Danny.
» Oh,
great. Thank you. Um, this amendment includes the allocation of $6.5 million
from multiple program appropriations to mayoral initiatives, including the Main
Street Revitalization, Civic Center, and 500 West improvements.
And with that, I'll turn it back to you. Thank you.
» I have nothing to add. >> You have nothing to add.
» Any questions? Any comments from the board?
» All right. So, I'll look for a motion to uh
approve them. >> Mr. Mr. Chair, I move that the board
closes the public hearing and adopt the resolution for fiscal year 2027
CRA budget amendment number one. >> Second.
» I have a motion from board member Pulio, a second from board member Carlson. Any
uh discussion on this item? All in favor say I.
» I. >> I. I. I'm
any naz. That passes five to zero with two board members absent.
Moving on to items C one, community reinvestment agency business approval of
minutes. I look for a motion to approve the meeting minutes of March 24th, 2026,
May 5th, 2026, May 19th, 2026, June 2nd, 2026, June 9th, 2026, and June 16th,
2026. >> Move for approval.
» Second. I have a motion from board member Py, a second from board member
Carlton. No. Wharton, excuse me. Uh, all in favor of that motion?
» I >> I
» I'm an I. >> I.
» That passes five to zero with two board members missing.
Moving on to item uh two, which is a straw poll on the nine item nine line
property site works, excuse me. Tale is coming up and Tracy
Taylor Fulgar and Tracy Tran.
» Can you hear me? >> Yep. You get the light on, sir?
» Yeah. Okay, bring it closer to >> How about now?
» Yes. >> Okay.
Awesome. All right. Good afternoon, board members. Uh today I'm here to
request a straw poll to authorize $450,000
from the Neline Strategic inter intervention program for site
preparation and demolition at the Peacock Blocks which is located at the
intersection of 400 South and 900 West. To provide a little background, the CRA
Oh, let's see. Next slide, please.
Next slide, please.
One more. Okay, there we go. To provide a little background, the CRA was
approached in 2025 by property owners interested in selling four parcels at
this intersection. The properties included three single family homes and a
six-unit apartment building. After receiving the board direction to proceed
with the purchase, staff completed financial, structural, environmental,
and market due diligence, and the CRA ultimately purchased and acquired all
four properties in January of 2026. When we initially pursued the
acquisition, the intent was to preserve the six-unit building as affordable
housing and adapt the single family homes for commercial use. However,
during our due diligence, we identified significant structural, environmental,
and life life safety issues that made the rehabilitation of the properties
infeasible. Based on those findings, we are now recommending the demolition of
all four structures. The purpose of today's request is to prepare the site
for this next phase of development, the $450,000.
Let's go to the next slide, please. This will help. The $450,000
will be used for hazardous material mitigation, asbestous abatement,
demolition, environmental remediation, utility work, and grading. Within the
Neline project area, the CRA is charged with implementing reinvestment
activities that support the neighborhood improvement and align with the outcomes
identified in the Westside master plan. The westside master plan identifies this
intersection as a um community node which is a focal area
intended for uses such as retail, restaurants and mixed use development at
moderate densities. Looking ahead, that is the CRA's vision for Peacock Blocks.
We want it to become a neighborhood hub with ground floor and community serving
retail and opportunities for small and local small and local businesses and
potentially a mix of housing options. These concepts will be further refined
through our community engagement process before any formal redevelopment begins.
Um, next slide please. From a funding perspective, the Neline
Strategic Intervention Program has $5.46 $46 million available. We are requesting
this $450,000 which would leave approximately $5.01
million remaining in the program. So in conclusion, we are asking for the
board's direction through a straw pole to move forward with the funding for
demolition and site preparation. This would allow us to position the property
for future redevelopment or disposition. With that, I'm happy to answer any
questions. board.
» Mr. Chair, >> yes.
» So, less than less than a question, but maybe a suggestion and uh also uh sad
that we couldn't save the structures uh but also uh excited that we are
potentially a step closer to having our first node on the west side that we saw
for so long. we envision um and if I remember right we own
» other property >> uh in across the street and the corner
right and correct we might all own other properties too in the area that might
allow us to uh create a business now that so much the west side needs in that
area I consider this almost like the gateway to popular grove um so I um I'm
excited to see some things go up in Um what and this is what the suggestion
comes. I'm I will struggle with the demolition and all that time where there
site prep and nothing is happening in that site. Um you put a sign at you know
a request in one of our properties on the west side where you put something up
to seek feedback. I don't know if this is the place to seek feedback, but maybe
I wonder if you could put something in there that
allows people to to to hope that something is going to come up there and
that they have an opportunity to to share input or to see what we're
visioning if we have some of that already. Um, so that I wonder if that's
a possibility. >> Absolutely.
» I just have a question on the on the zoning side of the house. Is this all uh
zoned right currently for mixed use or would we have to reszone the three uh
single family homes or are they already zoned at in it?
» They're zoned as mixed use. >> They're they're already zoned at all all
four properties are already zoned at mixed use. Okay. So, we don't have to
change that. Okay.
» M3. Okay. All right. which I figured that would be but I wasn't sure about
the three single family zones. Uh I don't
use you same points any other questions any other concept. So look for a straw
poll on moving forward. >> Mr. Chair, I propose a strap to allocate
$450,000 from the Nineline Fund strategic intervention program to a new
project for the demolition of site and site preparation activities at the
Peacock Blocks located approximately 400 South and 900 West.
» All right, show your feelings. >> Thumbs up.
» Thank you. >> You got our feelings. I appreciate that.
Thanks a lot.
Moving on to item number three, the resolution to disaster relief loan
program, the 323 LLC, Ty and Danny.
» All right. Good afternoon, board members.
Today, I'm presenting a the second of the um disaster relief loan requests.
This is a $1 million loan request for 323 LLC for their the reconstruction of
their property located at 323 South Main.
Next slide, please. Um, I'll review the loan policy, loan
details, and the board will have an opportunity to ask any questions before
um and consider adopting a resolution to approve the loan.
Next slide, please.
One more slide. Okay, we talked about this last time,
but uh I can refresh your memory. Um as you may recall, the property these
properties were significantly damaged during the August 11th, 2025 Main Street
fire. Uh for this specific property, the fire destroyed the roof and caused
extensive damage throughout the interior of the building, resulting in a total
loss of commercial activity at the site. In response, the CRA established the
disaster relief loan program, which was approved by the board in October of
2025. Because the fire was designated as a
qualifying event under the disaster relief loan policy, this project is
eligible for assistance through the program.
In conjunction with adopting the DRLP policy, the board approved $5 million a
$5 million funding allocation for eligible properties affected by the
fire. These funds were reallocated from prior commercial assistance programs
within the central business district along with available program income
funds. The DRLP funds, which is $2 million that remain uncommitted after
the program concluded, which was August 11th, will now be transferred to the
commercial development loan program to support future commercial lending
opportunities. Next slide, please.
Um, under the disaster relief loan program, eligible commercial storefronts
may receive up to $1 million in assistance. Prior to the fire, the this
property contained one commercial storefront, which was Whiskey Street,
and you can see a photo over there. Whiskey Street is a long-term tenant and
intends to res return to the space as soon as practical. The applicant has
demonstrated a funding gap as required per the program's policy. Next slide,
please. The total project cost for this
reconstruction is $3.8 million and 2.8 of that represents eligible
reconstruction costs under the program. The construction requires bringing a new
building to current code after applying approximately $1.8 $8 million in
insurance proceeds. There still remains an eligible funding gap of a million
dollars. The requested loan helps fund that gap, but it does not fully fund it.
The remaining project costs, including the planned upper story of the pro of
the uh let's go to the next slide so you can see it. So, the planned um upper
story is not eligible for disaster relief loan funds and they'll be funding
that with outside um sources. The new building will have one
storefront on the ground level and its intended uses are restaurant,
hospitality, food, beverage, entertainment and rooftop/events,
etc. The DRP funds will be used for ground floor and core system support,
mechanical, electrical and plumbing, architectural and engineering fees.
These are all eligible usage under the disaster relief loan program.
Next slide, please. The proposed loan terms are the standard
terms for the program. We are recommending a $1 million loan with 0%
interest for the first 24 months, 2% thereafter, a three-year loan term, and
a 10-year amortization schedule with construction draw dispersements and a
lean position, which will be determined prior to closing.
In summary, the staff CRA staff have determined that the project meets our
eligibility requirements of the disaster relief loan program. The requested
financing is consistent with the program's purpose of helping businesses
recover from qualifying disasters, restoring restoring damaged commercial
properties and returning them to productive use as soon as possible. The
board may wish to consider adopting a resolution to approve the terms of a $1
million loan for 323 LLC to finance the reconstruction of the property located
at 323 South Main Street. That concludes my presentation. I'm
happy to take any questions you have. >> Thank you very much for that.
» Oh, we also have the applicant here. >> Okay. And any questions from the board?
Maybe >> how did we come up with those
percentages or on interest? >> That was part of the original uh policy
that was approved by the board and that was simply based on trying to make it
not become a financial burden for the first few years as they reopen and get
reestablished. Okay.
» The loan program does allow for an extension up to five years. So, if you
go beyond that third year, the interest rate at that point does bump to 5%. And
then would then be paid off within that 5-year period or paid off at the end of
that 5-year period. >> And and the the agreement uh on this
loan allows us to uh what are the remedies in case there was no, you know,
if there is a default, >> what are the remedies if the loan
defaults? Uh we will be recorded against the property. will be in a position
that's appropriate for the amount, probably behind any existing financing,
but we would have a lean recorded on the property.
» Okay, that's good. Thank you. >> And these are the same numbers as the uh
white horse next door. >> Sorry.
» These are the same numbers as the uh other property that we just
» The other property was a $2 million loan because two businesses.
» Two businesses, right? Right. But the same numbers for them.
» Yes. >> Yes. But just two million because
there's two properties. >> Correct.
» Right. and and they they also because this isn't they still have to go to
planning for uh the waiver for the zone to
» estimate all zoning and w any waiverss or restrictions or requirements. Yeah,
» they have to do still do that portion. Exactly. Okay. All right. Appreciate
that. Any other questions?
» No question but just a comment. Thank you, Mr. Chair. Um, just want to thank
uh the CRA staff for this great work and for the mayor for rallying um the
community around these businesses. Main Street is a jewel and it needs to be
preserved and um I know so many people have just been waiting for this section
of of Yes, you uh just this section of our city to be revitalized. So, want to
thank everyone involved.
» All right. Thank you. I'll look for a motion.
Mr. Chair, I move that the board adopt a resolution approving the disaster relief
program to 323 LLC term sheet for reconstruction to address fire damage at
approximately 323 Main Street. >> I second that.
» I have a motion for board member Carlson, second from board member Napier
Pierce. Any discussion?
See none. All in favor say I. >> I.
» I. >> I.
» I'm an I. And that passes. Uh 2 4 6 0. I had to count.
And now we'll go to theformational the uh commercial funding priorities.
Ashley Ty and um Hayden.
We'll let Taylor take a break. >> Yeah, she gets a break. It's just us
today. >> Yeah. All right. Thanks a lot.
» Awesome. Um well, good afternoon board members. Um today we're presenting a set
of commercial funding priorities along with some additional background on the
activities that led us here. Uh next slide, please.
We'll plan to go over some background and context on where this work came has
come from. Um we'll spend the bulk of our time on the proposed priorities and
how those fit into our existing CRA tools and then we'll um end it and open
it up for discussion and feedback. Next slide.
So as I mentioned the request is for your feedback on the proposed CRA
commercial uh funding priorities and activities. Next slide.
Um to give a quick recap of where we've landed on at least three activities and
programs we previously brought to the board. Um we've created a loan program
to support commercial and mixeduse development. Um proposed a grant program
to support community and cultural initiatives. And then we're also working
on implementing a strategy to catalyze more commercial activity um via
acquisition and leasing of spaces to provide tenant types and attain at
attainable rates. Um and I'll touch on each of these briefly. Next slide.
Um, so for uh the commercial development loan program or CDLP, this policy was
adopted March 2025. The first notice of funding availability was released April
2026, which offered up to $10 million um and 9 9.9 million is currently um under
review um from applications that we received and we um are currently
reviewing those and plan to bring those to finance committee in September and
then to you the board in October. Uh, next slide.
Um, the next program was proposed to amplify neighborhood identity through
community and cultural resources. The plan was to structure it as a grant
rather than a loan because these kinds of development uh projects are usually
led by nonprofits and often can't support debt. We haven't advanced this
program uh yet. There is funding allocated towards it. But as um other
priorities such as the acquisition leasing strategy became a a priority of
the board. So this wasn't this program hasn't been pursued. Uh next slide.
Um this the so the next program is the uh commercial acquisition leasing
strategy um which is a two-part approach um aimed at strengthening existing
business districts and catalyzing new ones. The first part is acquisition. Um
that would happen through the CRA purchasing or uh master leasing
commercial buildings or spaces in strategic locations. The second part is
leasing uh those spaces. So we could lease a c a space in a CRA controlled
building that we own um directly to tenants or subleasase spaces um in math
in spaces that we master lease. And in both cases, um, offering preferred
tenant types, flexible rates, um, and terms. Some of this we already do, like
property acquisition and leasing as a landlord. Um, what's new here is the
idea of taking on master leases and, um, subleasasing those spaces. So, as we've
dug into this, um, it's become clear that that taking on a bigger leasing
role would add a significant amount of property management work. Um, so that's
really the reason we want to set our we want to be able to set our commercial
funding priorities first so that if we you know as we do expand into this type
of program it's it's targeted and we have um some priorities to go behind it.
Uh next slide. So [clears throat] before advancing
other commercial activities um we identified um ways that it was important
to establish clear clear priorities for each project area um for these
commercial funds. So these pri these priorities are what will guide our
future funding acquisition and leasing decisions. And so this next section of
the presentation um is really the heart of what we would like your your feedback
on or the are the actual priorities. Next slide.
Okay, so to develop these priorities, we looked at a few things. First, we
reviewed city adopted and CRA plans and other relevant studies to each project
area. Then we reviewed the current business business mix. You know, what
kind of business industries are there on the ground? Um, and then third, we
incorporated anecdotal knowledge. You know, things that you wouldn't really
you wouldn't see in data or reports, but more of um things that we know on the
ground of uh different developments that are coming up. And then so then we
synthesized all of those into project area priorities. Next slide.
So overall there were actually four themes that were consistent across all
project areas. So we're proposing these priorities to be applicable to all
project areas. And these priorities are activating um vacant or under
underutilized lots and ground floor spaces, creating a mix of publicly
accessible commercial uses, improving the availability, affordability, and
activation of commercial space for local independent businesses, and then invest
in placemaking and pedestrian safety improvements that enhance commercial
activity. So, while these priorities will cover
all project areas, their application and execution will likely look different as
they go. Uh, next slide. So, now look, we'll go through each each
project area. Um, so in the central business district, our main focus is on
Main Street in areas of the CBD that are not near major planned redevelopment.
So, main street should be our pedestrian retail core, but right now it's dealing
with um vacancies and some properties in disrepair. So, projects like the sports
entertainment culture and convention district and Western Governor's
University will bring a lot more activation downtown. So, but we want to
make sure Main Street and the rest of CBD that aren't um benefiting from those
redevelopments um will also benefit from that. So, and then we also want to
prioritize supporting the rehabilitation um and adaptive reuse of historic
structures in in CBD. Uh next slide. And in North Temple, we want to really
focus on the North Temple 900 West corridors. Um so, quick bit of context
for North Temple. Um there's actually been a loss of retail um space over the
last decade as some of the older retail was replaced by housing um and some of
the new ground floor commercial space has been um you know has remained vacant
um over the past few years. So there's a gap in day-to-day amenities for
residents. Um we also want to prioritize Fulsome Corridor and the City Creek
daylighting um to help catalyze commercial activity similar to what
we're seeing on the nine line. And we also want to a aim to maintain light
industrial uses in in the area while encouraging them to include publicly
accessible a publicly accessible component when it's appropriate. Uh next
slide please. And then in the nineline project area
um our priorities really center around the commercial nodes identified in the
westside master plan. Um, so this would also involve support for higher density,
mixeduse development on 9inth West and Redwood Road and then also supporting
neighborhoods serving commercial uses along the Neline Trail where where
zoning would allow for it. Uh, next slide.
And then in State Street, uh, we plan to focus, um, efforts, you know, on State
Street itself, Main Street and 1300 South corridors. parts of this area do
have higher crime rates and they, you know, may be deterring customers, which
is why we would target redevelopment of high crime land uses as a as a as a
priority. That's also a priority in our State Street um project area plan. And
then we're also prioritizing um support for life on state infrastructure
improvements and then last transit oriented development um at the various
track stations to take advantage of the um high transit um in the area.
Next slide. Okay. So now I want to cover how these
priorities could actually get built into our existing CRA tools. So starting with
our funding programs um the C the CDLP housing development loan program and tax
increment reimbursement. Um in all three cases we can incorporate priorities into
program requirements incentives or the scoring criteria to steer funded
projects towards them. So this these are um programs where we receive
applications, we review them, but we can set the criteria and how those and these
priorities um could be embedded into them. Um they may look a little
different for each um and program, but the intent would be to also have these
commercial priorities as part of all of our activities. Uh next slide.
And then looking at the tools that we have um more of a direct direct action
in. Um so these are a set of more hands-on levers where we have more
direct control. So the property acquisition, disposition,
um the potential leasing of commercialowned spaces and then
infrastructure and art improvements. So these priorities can inform our decision
directly here. Um since we aren't relying on an applicant to bring a
project to us, we can you know find create uh come up with a project and and
move these forward either through like for example our property disposition. we
can include some of these commercial priorities depending on where it is in
each project area into that as you know as a preference or a requirement as we
go through that. Uh next slide. So as part of going through this
exercise we identified a few gaps um that we that we have as we looked at
these priorities first um to effectively support positive tening of vacant
spaces. we'd likely take a more active role in acquiring buildings through
purchasing or master leasing um for long-term occupancy, which is um
something we currently don't do. Uh second would be prioritizing the infill
of specific sub areas or are targeting different land uses um and defining what
those actual target areas are. Um so we are, you know, helping catalyze certain
business districts and nodes. And then third, we don't currently offer
technical assistance to applicants um to navigate our our various processes. So
there's an opportunity to to potentially partner with economic development um and
community and neighborhoods on that front.
Next slide. And then to ground our current
activities and actual dollar amounts, the CDLP has about 17.5 million
appropriated uh with 9.9 million requested in this first round. That
could leave us about 7.6 6 million in in the CDLP program um for future round of
applications once we um go through this first round. Uh and then there's the
commercial assistance reserves which has about two 2.4 million. Um this is
earmarked for nine line north temp and north temple which could support the
acquisition and leasing strategy and this program is really set to help us um
develop programs that we haven't quite um developed yet.
» [snorts] >> And then lastly, there's the community
and cultural initiatives has about 339,000
which is tied to the central business district right now that could be re
reallocated to other uh commercial activities. Uh next slide.
Um so we did take this to the reinvestment advisory committee on
August 5th um to get their feedback as well. Some of the the points that came
up was taking on the the role of master leasing um can bring on certain risks.
Um so becoming you know a landlord um as a master lease you have a little bit
less control than you do when you acquire property. Um and then they also
had a a recommendation of putting responsibility on developers to complete
tenant improvements where that could be appropriate. And then uh given the
limited budget and project area budget constraints um you know they recommended
that staff focus funds on um you know programs that are more likely to work
than spreading them across multiple programs. Uh next slide.
Um so that's really the bulk of the presentation. So, the next steps would
really be to get feedback from you all um at this point and then look at
incorporating and and adjusting those priorities and then returning to the
board with any other um activities or programs that would help fill those
gaps. Be happy to answer any questions. >> Thank you, Hayden. Uh questions,
» questions, comments? >> Yeah. Yes.
» Um thank you so much for this presentation and thank you for including
the feedback from the um advisory committee. I found that really helpful
to just have additional perspectives to consider. Um my question is about um
targeting high crime areas, a diversity of uh commercial uses and particularly
State Street. So this is something you'll probably hear me bring up often,
but um if you drive along State Street, especially in District 5 and including
on Main Street, um we see a proliferation of one type of business
and that one type of business is massage massage parlors. And so as you think
about uh commercial redevelopment, I would like to see um a diversity of
business uses and a diversity of businesses present along State Street
and see a role that the CRA could play in helping to spur some of that
development of diversity of businesses. >> Thank you. That's helpful.
» And board member Petro, >> thank you. Um and thank you for the
presentation. Um we on North Temple of course is the one that um I'm most
familiar with and and most eager to see developed. And what I'm noticing is that
especially in TSA zones and other places, we have um a der of parking that
even if we do master lease and provide affordable rents, I don't know that we
can encourage the traffic um due to not just the public safety concerns, but the
the relative lack of accessibility to people who would drive there. While I
would love for everyone to get on tracks, it's just not the truth of how
we operate. So, as part of this plan, and I don't know if this is a CRA
function, if it's a separate parking authority that we develop or something,
but I would love to see the city become more proactive in master leasing parking
or even developing our own parking structures um and then making sure that
we are setting ourselves up for success. this I I worry that this could become an
investment that falls flat because um the low rent or the ability for people
to get into the space is just one of the barriers. The sustain we're going to get
them in but we won't be able to sustain if we can't help them drive foot
traffic. Um so I would really love to see a forward-looking mechanism for
parking as well and how we might participate proactively in that.
» Okay. Thank you. >> Thank you, Mr. Sure. The I mean the the
moment is here. Uh it took us a while but uh it it's uh quite amazing that
what 3 years ago um I think it was 3 years ago um we came back with this idea
from an urban exploration trip um and what this city was doing to um create
this um you know to create this vibrancy on the sidewalk and to um and and assist
smaller businesses in their uh path to um you know get a real brick and mortar
which is very hard and very expensive and it takes a while. Um so I I'm very
excited that we're here uh and I very thankful to CRA and the staff to work
out all the kinks on on this ordinance and making sure that it works with our
um with our current system. It's always challenging when we see a good idea from
a different jurisdiction to really say let's do that here because we know we
are a completely different system and we have different rules and different uh
forms of government really uh and funding mechanisms but it's very
exciting to see that this ordinance is here and I cannot wait until we uh start
seeing some success from from from it. So, um I would love to see some updates
from CRA um you know about the success story hopefully and and uh uh about how
is it uh working out on the ground. Um and I agree with with Council Member
Carlson that I hope to see other type of businesses but but those um I'm sure
that there are some good businesses out there that do that type of work but uh
there is other uh I think there is other opportunities in our city. So thank you
C. >> Thank you. Any other questions?
» Thank you Mr. Chair. Um just one question and maybe this is just my
ignorance speaking but when you have a CRA project are there requirements
embedded in the the contracts to say give extra points or you know um maybe
deed restriction or something like that to local businesses. Um because
I I would hate to invest in a place, get local businesses and then, you know,
maybe some generica kind of business comes in after their lease is up. I I I
don't know if that's something the CRA looks at.
» Yeah, I can speak to that. Um so, uh well, first of all, I just wanted to
point out um on page six of the memo, there's a table. Well, we we kind of
have a section where we tried to address like not just setting priorities, but
like right now with the tools and programs the CRA currently has, how
could we um implement the priorities? And there's kind of um a distinction
between, you know, we have funding programs where it's largely uh we're
incentivizing. We can require um you know, but we we try to be reasonable
with our hard requirements, but then we can also incentivize certain outcomes
that we want to see. And then the other end of the spectrum where we can be a
little more hands-on is, you know, through property disposition where we
own the property um if we are the landlord leasing space or if we're just
directly making investments in infrastructure and art. But um
specifically about um getting, you know, having preferred tenant types. Uh that's
something so far we've had as um incentives in various programs and it is
it is a challenge because you know a lot of our applicants are developers um
building projects on spec. They don't have tenants committed yet. They don't
know what types of tenants they'll be able to get. Um, so we're saying, you
know, we want you to put a local business in there and we're going to put
it in our agreements and, you know, at the time of loan approval or whatever it
is, they're they're like, "Yeah, sure." Like, "We'll try to do that." And, um,
so it's really more successful if like the business is the applicant and, you
know, like they're going into that space or they're going into that project. Um,
and then I think the other challenge with um, especially with the specific
tenant types is like the length of time we can keep that requirement in place.
Um, you know, you kind of have to balance with like what we're offering,
what we're contributing to the project and what's a reasonable ask. And I think
it's hard, you know, for 40 years to say a local business has to be in a space or
to control a space for 40 years. So, um, we tried I think we're we're still
figuring out how to find a good balance with those.
» Thanks, Ashley. Thanks, Shane. Uh, a couple couple questions and points and
and if, uh, Isak can bring up the the priorities on slide whatever that was,
three or four. Uh, but also just for the for the board's kind of understanding.
So, this firstformational brief is on the the higher priority side of the
house. And then there's other discussions have we do on the loans
where we have a threshold and we say hey if you want this loan you have to meet
these threshold items and then if you meet those threshold items and then we
also have some incentives to meeting those threshold items. So we'll have a
series of conversations on this whole process. This first discussion is more
on the the big uh overarching priorities. Uh, and I I want to kind of
sh appreciate the the uh staff's CRA's uh
prioritizing each area different because each area is different. North Temple is
different from Nine. It's different from uh Main Street. So, we have a priority
for them, but they all fit into that bigger priority. And uh over the last I
don't know the last couple years you know we've been talking about affordable
housing and family housing and uh we're we're pressing in that area and we've
also had made some conversations about uh local businesses local independent
businesses and I I think that's been great and we've seen some development
but uh on that front not a mixed development mixed uh success
but the perception I I get from people coming into the city is that our city is
developing into a 21 and over city and not so much the I'm going to say the 16
and under city and we're losing this I guess I should I should I should say 18
and under city. Uh we're losing the the kids and the families and we need to try
to generate that more interest in in a lot of different ways. And my one
conversation with this the CRA staff and Danny and stuff is how we take these uh
top priorities. And if if we can get that presentation on uh ESAC,
» I think it's Scott that's pulling it up. Scott, can you pull up the presentation?
» Having the uh top priorities kind of focus on
not just local independent businesses, but local independent businesses that
have a uh propensity or lean towards the family side or the kids side to generate
that interest for a family to come downtown and family to to go out to in
the streets. not in the streets actually along the sidewalk, activate the
sidewalks uh and and generate that interest and so that draws more families
into the area not just from the housing side of the house but against the living
the the living side. So add the family uh friendly angle toward the commercial
side and give the developers that that focus instead of just any business
because any business doesn't really do well and any business doesn't going to
drive the the family. And then the next step would be we look at thresholds to
get that loan and then incentives to incentivize that loan by reductions in
percentages. Um so so that's the right side. Exactly. So
those are the top four priorities we would apply across all of them. Yes.
» And my focus would be uh embedding the family uh
focus. I that's a a term I can use and maybe there's something better uh into
those four uh priorities moving forward. So add it. Sorry, just to clarify, make
it a priority that applies to all the projects.
» Yeah, that's how that's how I'm looking at it. Yeah. And how do we how do we
don't get me wrong, I want I want we need restaurants. We need bars, but I
also need toy stores. I also need a place where a kid wants to hang out
» and not just where you have to show your ID.
» Yeah. >> Unless you have to show your ID if
you're 18 and under. >> Yeah. No. Yeah, that's really good
feedback. And I think as we look at especially like priority number two
where it's creating a mix of publicly accessible commercial uses, it's um we
do have we have looked at like business mix in each project area. So that's
where we can dive a little deeper into that to see what those gaps are and
where they are needed the most. >> Right. Thanks. And and and each area
would be a little different because we also, you know, we want those elementary
school kids and we want those families to come into our live in all seven
districts. All right. Any other questions, points,
comments? >> All right. Thank you very much.
» Thank you very much.
» Moving on to item number five, the resolution, the amendment to the
interlocal agreement with Salt Lake City Library related to tax increment.
Eric's here. Bailey and uh Jennifer, if we need her.
Oh, Jennifer's coming up. Bailey's unfortunately
» uh Bailey's unfortunately not feeling well so she's online for questions but
it'll mainly be me whose voice you'll be hearing uh as we talk about exciting
intergovernmental cooperation and decision-m I know it's just the funnest
uh thing that you all get to do with your day. Um [clears throat] so uh we do
have a request for you for proposed amendments to uh interlocal agreements.
uh we'll tell you why this came about and and what we're proposing to change
and what would impact if the change did not occur um and what what steps that
you can take uh but this is in consideration of uh library
participation in crate project areas. So our our request is to discuss and
consider approval of these eight uh oh sorry next slide I real I'll look at
this one instead. Uh [laughter] um yeah and next slide again sorry.
Uh so the uh our request is discussed and consider approval of the proposed
amendments to these eight interlocal agreements in the for seven project
areas. Um and uh these are project areas that are governed by interlocal
agreements. So it's not uh determined by like a state committee like a CBD or a
north temple uh would be in the past. Um and uh so this is our request is to
amend these to exclude library in uh library increment from these areas. Uh
next slide please. Uh so the reason this is coming about is
uh starting in tax year 2024 the Salt Lake County District Attorney's Office
determined that the libraries taxing authority was not independent from the
cities. Uh this had a lot of downstream effects that were we were grappling with
for a couple a couple of years. Uh but uh after kind of extensive uh analysis
and work by the city attorney's office, we've we've determined that this change
does result in the library tax levy becoming subject to the city's
interlocal agreements with the CRA and the amendments would be required to uh
retain that initial intent that the libraries uh tax would not be
participating in that area which luckily you as the uh uh you and your roles in
the city council have the right to do. You have the right to amend that
agreement to exclude the uh libraries taxing levy. Next slide.
[clears throat] Uh so as as far as what we've done for
the last two years that we actually have received uh increment from the library.
So uh as we were figuring this out, we did we weren't aware of why the change
happened and what like said what the effects would be. But uh we have
received increment in accordance to in uh like as if the library was a
component unit of Salt Lake City. Um as they were not previously
um the last two years the CRA has made accounting adjustments to return the
increment that we uh that would have previously been sent directly to the
library. uh however that uh that practice can like as as we've discovered
more I we've decided that these amendments are required in order for uh
that money to continue to be sent back to the library. Next slide.
Uh so this just as terms of budget impact uh the CRA has obligations to
spend our receipt increment in certain ways based on state code and other
contractual agreements. Uh, one of the most ironclad is 10% goes to affordable
housing in in in the applicable project areas, which of which five of these are.
Um, that is pretty ironclad. If we receive the money from the treasurer,
we're determined you have to send that 10%. Uh, however, we also are uh by
17C's instate code, we are required to follow our project area plans. it might
be hard to justify returning library increment to the library as part of
those project area plans. Uh we also have debt bond service agreements, tax
increment reimbursement agreements that all are based on our received increment.
Um and so uh the library would see an impact
you know if in the last this is last year's number on the screen somewhere
between those two numbers definitely at least 231,000 and maybe up to 2.3
million and so uh and it should be noted that the library really is the only one
at loss here. We have not planned for this money. We have not budgeted this
money. We were not expecting it. We have made no obligations based on this funds.
So there's really nothing for the CRA here and a lot to lose for
the library. Uh next slide, please. Uh so uh our attorney's office has uh
determined that there's can be some really simple texts that we can have for
all these agreements which uh you can see kind of the proposed text on the on
that green bar there. Essentially, the the what we're intending to do with
these amendments uh is have the city agreements amended to say
that the library uh libraries tax levy is not included in their participation
of the project areas. And that gives us uh the ability to return all funds to
the library if we receive them or hopefully it gets sent straight to the
city anyway based on the county processes. But regardless, we'd have the
legal ability to send all of that back and it is backdated to start uh for in
the first year that we received those library funds.
Uh next slide.
So as far as uh next steps, we have two resolutions on uh uh for your
consideration. One would approve the seven agreements in which the city is
party to. Um and the second resolution is the only agreement that the city is
uh Salt Lake City is not party to that impacts the library which is uh block 67
transportation funds between CRA and the county. Um
and if you were to approve this, we would uh then take uh these amendments
would then go to respective parties for adoption. Uh if uh for the Salt Lake
City Council, would you all serve on it? It's going to it would be a written
briefing in this meeting and then you could uh depoping
those, but it would be up for consideration there. Um, and then we
have uh we would also start the process of getting on the agendas for the Salt
Lake County Council and the Salt Lake School City School District board
because we do have some joint agreements that we would need them to also approve
um uh so that we could get those adopted as well. Um we're our hope is to get all
of that done before the end of the year so that when taxes are distributed uh
that uh we can be sure to be ready and that the auditor and other county
parties will be notified. Uh, next slide. I believe that's just any
questions or discussion. I like I said, Jen is here for legal concerns. Um, I
don't Oh, yeah. Tyler is now here from the library. Um, and, uh, you know, the
whole CRA team if we need [laughter] >> questions, board,
» really quickly, Mr. Chair, um, I just wanted to clarify on the motion sheet,
we only have, um, one resolution referenced. So, I'm just making some
edits to make sure we get both resolutions um covered. Is that Are
there two resolutions
» or is it one resolution covering two things?
» There's one board resolution covering all eight of them and then there's a
separate council resolution. >> Okay.
» So, I think Yeah, I think in the slideshow you referenced two
resolutions, but it sounds like there's one.
» There's one. There's one motion, maybe two resolutions.
» Wait, wait, wait. There's a there's a resolution. I misspoke. I misspoke.
You're correct. And Eric was right. For the board, there are two. For the
council, there's one. There are two separate resolutions.
» Okay. So, I am just >> writing up some additional language for
this motion, but if you guys could help and correct on the fly, please jump in.
» Thank you very much. One more. What is the um
status of like state legislation about or requests
in front of the tax commission about this because I know that we disagreed
with this change. >> Um
and you know I'm happy to move forward with this one way or the other but um
I would like to not have this change stay in place.
» Um I can jump in with that. Uh the discussions have not been fruitful. Um
and so I think we are in uh we are in a situation where we're now figuring out
how to make it so that the library is not a separate taxing entity. Um, I
think that there are still lots of unanswered questions about what that
means in terms of budgeting and policym, but
those are probably future discussions. In the meantime, these are more of like
the legal documents to to clarify that. [snorts]
» But this doesn't get in the way of any of that those efforts. I don't see how
it would, but >> not necessarily. And I think that um in
the discussions over the last two years, we've realized that because we're one of
the only entities and because the library is one of the only entities that
is the way it is um the way we've always had it, um the state and the county feel
strongly that that we should have been doing it this way all along.
» So,
» happy news. >> Okay.
Thank you. >> And just to on the uh clarification,
after uh our decision tonight, you go to the county for uh a decision on their
part, but the but the the money from the county and the school district are
totally separate and it doesn't affect their what they've get because their tax
increment is separate from ours anyways. So, it's really just a uh legality of
saying we are excluding the library. It shouldn't affect you, but we need to
have this change to our overall interlocal agreement between them, the
three part three parties, the school board, this
» city, and the county. >> Correct. Yeah. They weren't expecting
this money to begin with. They weren't it was not in any plans or budgeted in
any way. So, it should be just procedural and hopefully they'll agree
on that. >> Okay. So, we have uh any other further
questions?
Thanks for that clarification and thanks for the explanation. Uh appreciate that.
After I read the the staff report, it I was just the numbers were just kind of
exclusion of the tax increment was really throwing me off and then you just
kind of walked us through verbally and I'm like, "Oh, now I get it." So, thank
you very much for doing that. That's where my learning skills come from.
Sometimes I have to learn from reading and sometimes just telling me what it
is. So, appreciate that. I will now look for a motion.
» Mr. Chair, I move that the board adopt a resolution clarifying the exclusion of
the Select City Library Tax Increment in the interlocal agreement amendments
and approve the resolution revising block 67 interlocal agreement.
» I have a motion from board member P second from board member Wharton. Any
discussion? >> Seeing none, all in favor say I.
» I. >> I. I'm an I.
And that passes 5 to zero. Thank you very much.
Moving on to item C6, Sedona Apartments Loan Amendment.
Allison Roland's here. Tracy and Hayden.
» Thank you, Mr. chair. I uh had prepared something to say and
then I saw these guys uh Hayden and and Tracy's
presentation and I I don't need to say anything. I'll just turn it over to
[laughter] them. >> I had a plan to thank you for the
introduction. So, >> um next slide, please.
Um, so we are here to um ask the board to consider amending the payment terms
of the CRA's 1995 loan to Sedonia Sedona Associates for the Pendleton House. Uh,
next slide. Uh so the the request is to con consider
adopting a resolution to amend those payment terms um by 5 years with a new
condition that the loan becomes due upon sale, transfer, refinancing or
redevelopment of the property. Uh next slide.
So, to provide some background on this, um, in 1994, the then RDA board approved
$150,000 construction loan um at 0% interest uh at a 30-year term with $50
monthly payments with the balloon payment that was due at maturity. Uh,
this property um is currently operating entity is Sedona Associates and the
parent organization is the um Utah Nonprofit Housing Corporation. Um, so
this property has 16 units serving women transitioning out of homelessness and
individuals with severe disabilities or mental illness. Um, there are other
public lenders on on this as well, the state and the county. And we also have
an equal priority agreement with them. Uh, and then the loan matured in April
2026 with the balloon payment of approximately $132,000
due. Um, which is uh now triggering this request. Um the the the nonprofit
housing corporation has asked the CRA to amend the terms to extend it. Uh next
slide please. So the financial status uh so the
financial records show that Sedona Associates do not have the capacity to
pay the balloon payment. The property has relied on periodic uh support from
the Utah Nonprofit Housing Corporation just to cover operations and capital
needs. Um the current rents and vouchers that they receive at the property do not
uh come close to covering operating costs and maintenance. Um which is not
unusual for a property serving extremely low income residents. Um the state
actually just finalized a 5-year extension in May. Um and the county is
expected to consider a similar request soon. Um but this property still
continues to be missional aligned. Um it is still in its um 50-year deed
restriction. um uh of affordability and continues to serve um a really in need
resident. Uh next slide. So these are the proposed uh new terms.
Pretty simple. Um the the table shows um that on the loan term we're proposing to
extend it uh five more years with the balloon payment due at the end of the
term. That um is just an extension. And then the $50 monthly payments will
continue and remain in place. Um, however, we would we're adding um a
stipulation that if the property is sold, transferred, refinanced, or
redeveloped, the the balance would become due. Um, and then we're we're
already developed. Um, the biggest consideration here is that they the
Sedona Associate New Utah Nonprofit Housing Corporation is considering, you
know, what a redevelopment of this property could look like to serve more
residents. So this five years would give them um that time to to address those
those plans. Uh next slide please.
Um so as far as the consideration next steps uh you can may consider adopting
the resolution extending the loan payment terms for Sidon Associates by 5
years. Um and then if adopted CR staff will work with city attorneys to execute
the documents um to modify those loan terms. Um but that's all I have and
happy to answer any questions. And then the uh the borrower is also here um from
Utah nonprofit housing corporation on Zoom.
» All right. Thank you very much board. Any questions?
» I I have a a a couple and uh so they've been paying $50 a month for
30 years that the payment's now 132,000. Uh and they can't pay make the payment
for the balloon. uh and it's because they've the revenue
is out there to pay for the balloon now. So after 5 years they have a seems
like a soft idea how they going to get there. So after 5 years uh
and say that the worst thing that happens is they can't pay the balloon
again. Where do we go and what happens to the property and where do we how do
we >> Yeah. I I in speaking to the borrower,
we'd likely have another request, but we obvious we we obviously don't know what
will happen in in five years time. Um but that is something that we could
consider as you you all could consider as a board and a staff,
» right? Because that we put a lean on it and then we then it's ours.
» Yeah. It's kind of Yeah. Down the road five more years
» basically. Right. Right. If you can't pay your bank owns your the bank owns
your house but you can't pay it with the bank.
» That would be like the biggest recourse that could be taken. Um and it's in as
part of the promisory note loan documents,
» right? Uh I mean it's a wonderful asset. We need
the asset like this. Uh this is it's necessary for the city, but it's also
necessary that we you pay your bills. So like that's my biggest concern is I I'm
not looking that we don't approve this because we want to make keep keep these
people in their house and we need to keep moving forward and we need to
support uh uh the work of the borrower. But at the same time I'm like so what's
what's the plan to pay us back because $50 a month is is is a pretty nice deal
on a on a a house payment. Uh and so I'm just curious on that next 5 years and
and their plan on moving forward. >> Yeah. And and if there is any
redevelopment that or refinancing that does occur, that's we would also require
that the loan um be repaid. >> Yeah. Because I also wouldn't want to
make sure that the uh units stay in good shape and they're uh they're livable
units and they don't uh they maintain the property at in the
right state. Also, Uh >> and as part of those agreements that we
have our deed restriction for example um there is the requirement to maintain the
property at a high level. Um so there is so we do have those stopbacks that we
can look to if we do see that the property is in disrepair. Um so we can
we can look to those to reinforce anything like that. Yeah, because we it
is uh I mean we've had other issues where units have had air conditioning
issues and they you know they're when the when we had our excessive heat and
then we had units that had no air conditioning them. That's very serious.
Also, I know there's a lot of uh work to be that was done on that, but it's also
one of those things where we we need to make sure that we are taking care of
these most vulnerable. So, I'm just really uh want to just kind of press
that issue that this is a nice deal. Let's uh uh uh let's make sure we uh
everyone plays their part in making sure that these people take are taken care
of, but but they also pay their bills, of course.
» All right, Colette. >> Well, can those uh stipulations be
embedded in whatever contract we have with them?
» The just the the properties maintained at a certain level. Wow.
» So, we already do have that in our current deed restriction on the
property. Um, but we can look into seeing if that would make sense adding
it to these terms and additionally. >> Yeah. Okay, that'd be nice.
» Go ahead, >> Mr. Chair. Thank you. I to this point
though I I think that this is another example how you know the select city
neighbors disproportionately um put our tax dollars into helping on
this issue and more than so many other communities and you know but it's it's
to highlight how much of our tax dollars are uh embedded into the system to
support um but uh to this point as far as like maintenance many times We hear a
lot about that and and uh and since the the repayment of this loan might take an
eternity. Um you know we value and and I will speak for myself I guess but it
seems quite obvious from the conversation we value the work that this
organization is doing to to to these neighbors u by providing these safe
places. Um but we will want in exchange in in some ways for a a good deal of you
know investment of our tax dollars into this good work is ensuring that uh the
property is well maintained to me it's like it should you know how we define
that is a good question too but I I will uh to me that's it's part of the deal
it's it's one of the benefits that we get from the to the community back to
the rest of the community back. So, I I would love to see that embedded into an
agreement. >> Okay?
» Because it it it's not uh I mean, it's probably obvious to everybody, but if
this balloon payment had been paid back, that gives us $132,000 more to go to
another project. So, this project is is uh is important, but it's also delaying
support of another project that could be built using the same same money moving
forward. So that's it's not so much that uh I'm against the project because I'm
totally supportive of the project. I would love to see a lot of these
projects across the city, but that's where I could use that 132 for another
project. So but anyway, uh that's where we stand
there on that one. Do we need Oh, we need a motion.
Any idea to do something else?
I move the board adopt the resolution amending the loan terms with Sedona
Associates for the Pendleton House. >> Second.
» Have a motion from board member Neighbor Pearson. Second from board member
Carlson. Any discussion? See none. All in favor?
» I. >> I.
» I'm an I. That passes five to zero. Moving on to item number seven, art
policy amendment. Tracy's at the table. >> Good afternoon.
I can get those slides up for this item.
Great. Thank you. So, I'm here to discuss the series art policy. Um, next
slide, please. The SRA board adopted um the art policy
in 2021, which did a few things. It aligned the CRA requirements with the
city's percent for art increase from 1% to 1 and a.5% in chapter 2.30 of city
code for capital improvements. Um it also included requirements for property
dis dispositions and incentives to promote art. Um CRA staff is um now
proposing a few updates now that the policy has been in place for about five
years. Next slide. So this chart provides an overview of
our current policy. shows the options for um these different um art require
our art requirements, incentives and different allocations that we provide.
So um art can be installed on site or it could be contributed to an art fund. An
example of our art fund is some of our mural programs that we've run in the
state street um project area and then um currently in the north temple project
area. So if a developer can't build something on site, we can pull those
monies together to do a something like a mural program. Um and then on the bottom
part of the chart, it shows um how we work together with arts council to
implement the art. So when um we do look at um implementing art um you can see
here if it is in the public right away and considered kind of an um as part of
as part of the public rightway that's completely led by arts council. Um but
if it is pos publicly visible art on private property that's run through a
CRA process. Next slide. Um so we are proposing four changes and
I'll go through these in the next few slides. So we can um go to the next
slide. So the first change um includes adding
an art requirement for tax increment reimbursement require tax increment
reimbursement agreements or tas. Um the current policy does not address tas. So
we are proposing that one and a half% of the projected maximum reimbursement over
the term of the tyra shall go towards art. Um so state code authorizes tas to
be used within CRA project areas or when within HTRZ's which we've been seeing
more of. Um and we do anticipate seeing more of these requests for tax increment
reimbursement agreements. Um and then requiring art for these just ensures um
that publicly supported developments create lasting community value. It
improves placemaking and just general visible public value. Next slide.
And then the next uh proposed change clarifies the 1 and a.5% for CRA
property dispositions. Uh the proposed change would base the 1 and a.5% um on
appraised property value as opposed to hard costs. Um basing this on hard cost
may undermine the overall project, making the overall project infeasible.
So, for example, if we had a $10 million um uh appraised property value, um that
that property would um have to contribute $150,000 towards art, which
we feel like is a little more doable. Um, if we based it on hard costs, if we
were to assume $30 million for that property to for um to for the hard costs
on that, that would be a $450,000 art project, which is a pretty big piece
of art for a private like a privately owned piece of property. Um, so we think
this is just um tying it to the appraised property values just a little
makes it a little more feasible. Um, but we did include some exemption language
for projects requiring affordable home ownership. We do know that affordable
home ownership um is very difficult to build and may require substantial
subsidy and we do have some long-term maintenance concerns for an HOA that is
managing affordable home ownership. So, we just have some language um that
allows for CRA director to um to remove that if if needed. Next slide.
And then this uh next the third proposal would remove a specific interest rate
reduction language. Um the current language states that a borrower would
receive a specific 0.5% um interest rate reduction if contributing 1 and a.5% of
the loan amount to art. Um the specific we believe that the specific reduction
shall be determined um for different programs. So, we were looking at kind of
our housing development loan program and which is more of a longer term um loan
program and then our CDLP or commercial development loan program which is more
focused on short-term um you know usually fiveyear loans loan terms. Um
and we did some analysis that showed that um for shorter term loans um that
may require an interest rate of point a half percent or more to incentivize art
and then longer term loans with a lower interest rate reduction um as low as
like 0.25 0.25 may still be beneficial to incentivize art. If you go to the
next slide, um we have just kind of a few charts that show kind of what this
looks like. Um so the slide provides um the interest rate charts that shows the
interest rate savings for quarter percent, a half percent, and 3/4 of
percent. And the chart provides the interest rate savings based on the loan
amount and the loan term and compare that with the 1 and a.5% ARC
contribution, which is the column in blue. So that orangey beige color cells
um that orangey the orangey beige cells show that the interest rate savings is
less than what that 1 and a half% contribution would be and maybe less
likely a borrower would less likely be um contributing um to that u to
additional art. Whereas um the green cells show that the interest rate
savings is actually more than the contribution. So in those situations,
they're more likely to to take on that um incentive. Um so overall, we think
just loan longer term loans still provide an overall interest rate um
savings even with a lower interest rate reduction. And then shorter term um
loans may require an interest rate reduction of at least a half percent um
to be financially beneficial to a borrower. So what all we're saying in
the section is just we want to be able to kind of tailor it to each program and
not call it out specific in this um policy. And the next slide.
And then we just have general lang um language cleanup throughout the policy
just updating references from RDA to CRA. Um and there's just some
non-material language changes. Um it currently states that the board may
allocate program income funds to art. We clarify the board that the board could
also use pro project area funds. We've seen that with like our North Temple
project area and um things like that. So we're just um clarifying that. And then
we also currently reference an art review committee. We clarify that that
CRA art review process is an advisory committee assembled by staff.
Next slide. Um and we did uh present this to RACK on
the their August 5th uh meeting and they recommended that the CRA board approved
the changes with the condition that the staff consider some of the comments made
during that discussion. Um and those discussion included just consider
considering the TIFF requirements. Oh, sorry, that should say tier
requirements. Um, consider the tier requirements and timing of when the
requirements take effect. And then ensure that funds are collected upfront
for the art fund or art installed in earlier stages. So, they don't want a
situation where someone has committed to doing art but it's not on site for like
25 years and they um just want to make sure we we um prevented that. Um and we
looked into these issues and kind of ran through different scenarios and we do
think um we will be able to kind of ensure that these items are addressed um
as we develop our legal agreements when we're working on our tax increment
reimbursement agreements. Um next slide. Um yeah and with that um I can answer
any questions. Um and we are looking for a motion on um to approve the resolution
that's attached. >> Thank you Tracy board. Any questions,
comments? on the uh one side there's about the uh
mainten maintenance and the concern about if it's an HOA or if it's on the
private property facing the public maintenance is by the owner of the uh
structure the building and they they were they're required to maintain
maintain it. Uh but there's no recourse if they if
they're not retaining it after 5 years because we've we've already got the
money and they it's it's basically on their plan.
» It depends on um kind of what situation we're in. If it is a loan and we still a
lot of our loans, if it's like a 15-year term, we will kind of want to make sure
that they do maintain it for at least 15 years. We'll usually tie it to kind of
the legal agreement that we have in place.
» Okay. Okay. So, there's a legal agreement there that says, "Hey, you
need maintain it at whatever standard we've already kind of dictated in the in
the in the legal agreement." Okay. >> Yeah. And then with like tax increment
reimbursements, because it's a 25-y year term, that could be a situation where
well, we do have that agreement in place, so we should have like recourse
if that's not >> So, the 1.5 uh on the tax in uh
increment agreement. Now, that's the full tax increment uh payout.
1.5% of the full or was it 1.5 or whatever it is on the annual? It's
» one and a half% of their reimbursement request
» on an annual basis. >> Um for the full term
» for the full term. >> But administratively we'll like figure
out kind of okay how that >> how that works happens each year at
» from the cap. Okay. Gotcha. All right. Thank you.
Seeing none, uh, I will look for a motion.
» Mr. Chair, I move that the board adopt a resolution approving the CRA art policy
amendment. >> Second.
» I have a board I have a motion from board member Carlson, second from board
member neighbor Pierce. Any questions? Any discussion? See none. All in favor
say approve. I >> I
» I >> say approve.
» Approve. >> Approve. Uh uh. Anybody against?
Sorry, long morning. All right, that motion passes. I I'm an I. That motion
passes five to zero.
Item number eight, report an announcement from the executive
director.
uh and report from the chairs uh and the vice chair. We have nothing to say at
this point. >> Danny,
» Mr. Chair, uh let me start by thanking you and the the rest of the board as
well as council staff for our agenda today. We know we threw a lot at you and
want to thank staff as well. There's a lot of preparation that went into this
and so uh we appreciate you providing us the time to get through the agenda and
get through these items as we can continue to move those forward. Um only
one announcement uh for you today. Next slide please. Um wanted to just announce
the release of our two annual notices of funding availability. The first is for
the housing development loan program. Both of these were officially released
last week. You'll see press releases probably coming up in the next week or
two that that formally announce these. Um, but they are out on the streets and
active right now. Uh, this year's HDLP NOA is providing $3 million for the
affordable housing development within the city. Uh, you'll recall that as a
board and the housing funding priorities. You approve that the
required threshold for developments to apply for this program is that at least
20% of the units are either serving households at 30% AMI or less and or not
andor or or uh 3% or 20% of the units are familysiz units at three plus
bedrooms. So projects have to have either one of those and some obviously
have both but that is a threshold requirement for the HDLP. The other NOA
is our residential wealth building program. This is providing $4 million uh
to support affordable housing and wealth buildinging opportunities for low to
moderate uh income households. The focus is projects that will include home
ownership and/or shared equity models and essentially support long-term
financial stability for families. >> [snorts]
» Um the deadline for these is September 25th at which point staff will review
the applications, present them to finance committee which will then
forward a recommendation to you as a board and you will see these and approve
them. [snorts] So these are the funds that you approved as a board in June and
staff has worked hard and they're on the street today. So want to commend them
for that. >> All right. Thank you. Appreciate that
very much. This is awesome. questions
for CRA? >> More of a just more of a comment. Um,
thank you for this work and thank you to staff for putting these NAS out. I'm
really excited to see what comes back from the residential wealth building
pilot program. So, I'll be looking forward to that when it's ready.
» Thank you. And I appreciate the conversations we had about the uh
commercial loan priorities and stuff and uh and all the other briefings we had
today. So, uh again, thank Thank you very much for across the board and with
that we are adjourned until 4:15 is what we have in the agenda. I
don't think we can start it earlier. >> I think we can start a little bit
earlier. I think it says or call >> so let's let's do this then 4:00. Um
okay 4:00. Thank you. Thank you.