JACQUELINE BISKUPSKI
Mayor
MARGARET D. PLANE
City Attorney
OFFICE of the CITY ATTORNEY
DATE: April 12, 2016
ITEM #:
6.E.
PREPARED BY:
RE:
Katie Lewis, Senior City Attorney
Review of Changes to Utah Code 17C and Proposed Resolutions to Proceed with
Creation of Community Reinvestment Areas
REQUESTED ACTION: Briefing and adoption of resolutions.
POLICY ITEM: Project Area Creation Process
BUDGET IMPACTS: Project area creation funds previously allocated
EXECUTIVE SUMMARY: The Utah Legislature enacted comprehensive revisions to the
Community Development and Renewal Agencies Act (Utah Code 17C) with the adoption of
SB151 in the 2016 legislative session. This memorandum provides a review of the significant
changes, and a recommendation that the Board adopt survey resolutions to proceed with creation
of two Community Reinvestment Project Areas (“CRAs”), which will replace the new
Community Development Project Areas that the RDA was in the process of creating.
REDEVELOPMENT ADVISORY COMMITTEE RECOMMENDATIONS: N/A
ANALYSIS & ISSUES: SB151 made comprehensive changes to the Community Development
and Renewal Agencies Act. Below is a list of the significant changes:
1. Elimination of Community Development Project Areas (“CDAs”); Urban Renewal
Project Areas (“URAs”) and Economic Development Project Areas (“EDAs”)
SB151 eliminated CDAs, URAs, and EDAs, and replaced them with CRAs. The RDA Board
adopted survey resolutions to begin creating project area plans for two new CDAs (9 Line and
State Street), and because CDAs have been eliminated, the Board will need to adopt new
resolutions directing the RDA staff to create a project area plan for the two new CRAs. Drafts of
the two new resolutions are attached.
Below is a list of specific changes between creation and operation of a CRA and a CDA:
‐ New Project Area Plan Requirement: A CRA project area plan must include a “public
benefits analysis” that must consider the benefit of any financial assistance/subsidy being
provided by the RDA; an evaluation of the reasonableness of the costs of the project area
1 development; the efforts to maximize private investment; the rationale for use of project area
funds; an estimate of total project area funds the RDA intends to spend in the project area
development; the anticipated public benefit from the proposed development; the beneficial
influences to the tax base; the associated business and economic activity the CRA will stimulate;
and whether the proposed project area plan is necessary and appropriate to undertake the
development.
‐ Property Owners’ Objections: During the public comment period for the project area
plan for a CRA, if 51% of the property owners within the CRA object to the project area plan,
the agency may not adopt the plan (effectively stopping the creation of the CRA).
‐ Housing Allocation: In a CRA that is created by an interlocal agreement with the taxing
entities, at least 10% of the project area funds must be allocated for housing, which can include
the RDA’s standard housing allocations (which are limited to housing projects within City
boundaries) or, under SB151, can be given to the County housing authority to be used on
County-wide housing projects.
‐ Historic Buildings: If the CRA will have existing buildings/uses within the project area
that are included on, or eligible for inclusion on the National Historic Register and the RDA will
spend agency funds to demolish or rehabilitate these structures/uses, the RDA must comply with
Utah Code 9-8-404, as though it was a state agency. Utah Code 9-8-404 requires the RDA to
provide a written evaluation to the State Historic Preservation Officer of the RDA’s
expenditure/undertaking’s effect on the historic property. If the State Historic Preservation
Officer does not agree with the RDA’s evaluation, it must notify the Public Lands Policy
Coordinating Officer who will determine whether a joint analysis with the RDA and the State
Historic Preservation Officer is required.
2. Eminent Domain
SB151 expanded the RDA’s authority to exercise the power of eminent domain in certain
circumstances. First, the RDA has the authority to exercise the power of eminent domain in the
first five years of a CRA, if the RDA conducted a blight study as part of the project area plan.
Second, the RDA may exercise the power of eminent domain in any existing project area if the
agency made a finding of blight in that project area; the property owner is subject to a tax
increment agreement with the agency; and the property owner fails to develop the property in
accordance with the agreement with the agency or the project does not generate the amount of tax
increment the agency projects to receive for a period of 36 months. Third, the RDA can exercise
the power of eminent domain if a property owner requests it and the property is within a project
area.
2 3. New Growth
SB151 clarified that “new growth”, which is the difference in taxable value from year to year of
both real property and personal property, is the greater of the following amounts: (a) zero; or (b)
the difference from one calendar year to the next. This is important because when a project area’s
collection period ends, the project area’s incremental value is the “new growth” value, which now
cannot be below zero.
PREVIOUS BOARD ACTION:
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March 2015: The Board approved a list of several areas to be evaluated and adopted
evaluation criteria.
April 2015: The Board shortlisted six potential project areas for further staff analysis.
May 2015: Staff provided a recap of previous policy direction on the project area creation
process, including clarification of the potential project area boundaries and the short-list
evaluation criteria.
June 2015: Staff provided a written status update on the project area creation process.
August 2015: Staff presented its research on seven short-listed potential project areas to the
RDA Board. The Board requested staff return with a matrix to assist in an informed
discussion and project area selection prioritization in September.
September 2015: The Board selected the State Street, Ball Park, and 9-Line areas as the top
ranked potential project areas. Staff commenced meeting with the Salt Lake City School
District and Salt Lake County taxing entities to discuss the three areas and collect feedback
on the potential terms of new project areas.
November 2015: The Board amended the State Street project area boundaries to include
portions of the Ball Park project area. The Board approved the State Street and 9 Line
project areas to move forward in the Community Development Area creation process.
December 2015: Board approves two resolutions, authorizing RDA staff to prepare Draft
Community Development Project Area Plans for the 9 Line and State Street Project Areas. ATTACHMENTS: Draft Resolutions for 9 Line Community Reinvestment Project Area
and State Street Community Reinvestment Project Area
3 RESOLUTION NO. 768._____
April 12, 2016
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY AUTHORIZING THE PREPARATION OF A
DRAFT COMMUNITY REINVESTMENT PROJECT AREA PLAN FOR THE
PROPOSED STATE STREET PROJECT AREA
WHEREAS, the Redevelopment Agency of Salt Lake City (the “RDA”) proposes to
create a Community Reinvestment Project Area (CRA) within an area described on
Exhibit A attached hereto (the “Proposed Project Area”), that is generally from 400 South
to 2100 South and from 300 East to 400 West, consisting of approximately 768 acres to
support the RDA Mission and General Goals described on Exhibit B and attached hereto;
and
WHEREAS, the Proposed Project Area would support the Central Community Master
Plan's goals of creating: livable communities and neighborhoods; vital and sustainable
commerce; unique and active places, and increased pedestrian mobility and accessibility;
and
WHEREAS, in December 2014, the Board of Directors of the Redevelopment Agency of
Salt Lake City (the “Board”) approved the Project Area Creation Policy to determine
selection of potential RDA project areas; and
WHEREAS, in March 2015, the Board selected 16 potential project areas to analyze
based on approved evaluation criteria; and
WHEREAS, in April 2015, the Board selected 7 of the 16 potential project areas for
additional analysis based on approved evaluation criteria; and
WHEREAS, in September 2015, the Board selected 3 of the 7 remaining potential
project areas and directed RDA staff to forward the 3 potential project areas to the RDA's
Taxing Entity Partners for comments and review; and
WHEREAS, in November 2015, the Board selected the Proposed Project Area based on
feedback and comments from RDA Taxing Entity Partners; and
WHEREAS, in December 2015, the Board approved Resolution 764.06, authorizing the
preparation of a draft Community Development Project Area Plan for the Proposed
Project Area; and
WHEREAS, pursuant to SB151, enacted during the 2016 Utah legislative session,
changes to Utah Code 17C, which will be effective May 10, 2016, related to project area
creation eliminated Community Development Project Areas, and replaced them with
Community Reinvestment Project Areas; and
WHEREAS, the Board intends to create a CRA for the same geographic location as the
previously approved State Street Project Area and seeks to authorize RDA staff to begin
preparation of a CRA Project Area Plan upon the effective date of SB151.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that, in accordance
with Section 17C-5-103 of the Limited Purpose Local Government Entities - Community
Reinvestment Agency Act (the “Act”), the Board hereby authorizes the preparation of a
draft community reinvestment project area plan for the Proposed Project Area.
BE IT FURTHER RESOLVED, that pursuant to Utah Code 17C-5-103(c), the Board
determines that the Proposed Project Area requires a study to determine whether project
area development is feasible.
BE IT FURTHER RESOLVED, that the Board hereby authorizes and directs the Chief
Administrative Officer and the Interim Executive Director of the Agency to take all such
further action as is necessary or appropriate in accordance with Section 17C-4-5 of the
Act in connection with the evaluation and analysis of the possible costs and benefits of
the adoption of such a project area plan and to conduct any examination, investigation, or
negotiation regarding the proposed community reinvestment project area that the Agency
considers appropriate.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
12th day of April, 2016.
Lisa R. Adams, Chairperson
Transmitted to the Chief Administrative Officer on
.
The Chief Administrative Officer.
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Jacqueline M. Biskupski, Chief Administrative Officer
Approved as to form:
Salt Lake City Attorney’s Office
Katherine N. Lewis
ATTEST:
___________________________________________
Justin Belliveau, Interim Executive Director
potential project area
State Street
400 South
CBD
Main Street
300 East
West Temple
500 South
West Temple
Gateway
900 South
Fayette Ave
200 West
State Street
Main Street
West Temple
300 West
200 East
900 South Off-Ramp
1300 South
Proposed State
Street Area
1700 South
2100 South
RDA General Goals
RDA MISSION STATEMENT
General Redevelopment Goals
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Redevelop communities by eliminating blight and by enhancing
livability.
Promote sustainable redevelopment practices and land use patterns
Facilitate financing of priority projects in RDA project areas.
Foster walkability through projects that promote complete streets and a
network of vibrant and attractive pedestrian spaces.
Facilitate the enhancement and expansion of transit to further promote
RDA goals.
Help create welcoming public gathering places, including through the
funding of public works of art.
Promote the uniqueness, character, and identity of neighborhoods in
each project area.
Implement housing policies to foster a diverse and balanced community
with a range of housing options, including homeownership, for all
income levels.
Encourage historic preservation to promote the unique character of
project areas and foster sustainability.
Support a quality urban environment, including design, materials, and
construction of buildings and spaces, public and private.
1
The mission of the Redevelopment
Agency of Salt Lake City is to improve
blighted areas of Salt Lake City,
encourage economic development of Salt
Lake City, encourage the development of
housing for low and moderate income
households within Salt Lake City and
encourage compliance with and
implementation of the Salt Lake City
master plan. The Agency will participate
with Salt Lake City, Salt Lake County, the
State of Utah and other public entities, as
appropriate, in implementing its mission.
The tools available to achieve the Agency's
mission include:
1.
2
3.
4.
5.
Property acquisition, clearance, replanning, sale, and/or redevelopment;
Planning, financing and development
of public improvements;
Providing management support and
financing for projects which will
improve blighted areas;
Gap financing in the form of loans,
grants and equity participation to
encourage private investment;
Relocation assistance and business
retention assistance to businesses.
RESOLUTION NO. 768.___
April 12, 2016
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY AUTHORIZING THE PREPARATION OF A
DRAFT COMMUNITY REINVESTMENT PROJECT AREA PLAN FOR THE
PROPOSED 9 LINE PROJECT AREA
WHEREAS, the Redevelopment Agency of Salt Lake City (the “RDA”) proposes to
create a Community Reinvestment Project Area (“CRA”) within an area described on
Exhibit A attached hereto (the “Proposed Project Area”), that is generally from I-80 to
1400 South and from I-215 to 650 West, consisting of approximately 728 acres to support
the RDA Mission and General Goals described on Exhibit B and attached hereto; and
WHEREAS, the Proposed Project Area would support the Westside Master Plan's goals
to: promote reinvestment and redevelopment; provide attractive, compatible high density
residential development; foster opportunities for unique, mixed use neighborhood and
community nodes; develop and foster regional nodes; strengthen connections both within
and between the Westside and other parts of Salt Lake City; maintain the stability of
industrial districts and the employment base; create and strengthen public spaces; and
WHEREAS, in December 2014, the Board of Directors of the Redevelopment Agency of
Salt Lake City (the “Board”) approved the Project Area Creation Policy to determine
selection of potential RDA project areas; and
WHEREAS, in March 2015, the Board selected 16 potential project areas to analyze
based on approved evaluation criteria; and
WHEREAS, in April 2015, the Board selected 7 of the 16 potential project areas for
additional analysis based on approved evaluation criteria; and
WHEREAS, in September 2015, the Board selected 3 of the 7 remaining potential
project areas and directed RDA staff to forward the 3 potential project areas to the RDA's
Taxing Entity Partners for comments and review; and
WHEREAS, in November 2015, the Board selected the Proposed Project Area based on
feedback and comments from RDA Taxing Entity Partners; and
WHEREAS, in December 2015, the Board approved Resolution 764.05, authorizing the
preparation of a draft Community Development Project Area Plan for the Proposed 9
Line Project Area; and
WHEREAS, pursuant to SB151, enacted during the 2016 Utah legislative session,
changes to Utah Code 17C, which will be effective May 10, 2016, related to project area
creation eliminated Community Development Project Areas, and replaced them with
Community Reinvestment Project Areas; and
WHEREAS, the Board intends to create a CRA for the same geographic location as the
previously approved 9 Line Project Area and seeks to authorize RDA staff to begin
preparation of a CRA Project Area Plan upon the effective date of SB151.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that, in accordance
with Section 17C-5-103 of the Limited Purpose Local Government Entities - Community
Reinvestment Agency Act (the “Act”), the Board hereby authorizes the preparation of a
draft community reinvestment project area plan for the Proposed Project Area.
BE IT FURTHER RESOLVED, that pursuant to Utah Code 17C-5-103(c), the Board
determines that the Proposed Project Area requires a study to determine whether project
area development is feasible.
BE IT FURTHER RESOLVED, that the Board hereby authorizes and directs the Chief
Administrative Officer and the Interim Executive Director of the Agency to take all such
further action as is necessary or appropriate in accordance with Section 17C-5 of the Act
in connection with the evaluation and analysis of the possible costs and benefits of the
adoption of such a project area plan and to conduct any examination, investigation, or
negotiation regarding the proposed community reinvestment project area that the Agency
considers appropriate.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
12th day of April, 2016.
______________________________________
Lisa R. Adams, Chairperson
Transmitted to the Chief Administrative Officer on ______________.
The Chief Administrative Officer
___does not request reconsideration
___ requests reconsideration at the next regular Agency meeting.
___________________________________
Jacqueline M. Biskupski, Chief Administrative Officer
Approved as to legal form: ___________________________________
Salt Lake City Attorney’s Office
Katherine N. Lewis
ATTEST:
___________________________________________
Justin Belliveau, Interim Executive Director
I-80 Ramp
300 South
n
da
Jor
700 West
900 West
Navajo Street
1300 South
River
Redwood Road
1400 South
potential project area
I-15
Jo
r
900 South
800 West
dan
American Ave
900 South 900 West
500 South
1000 West
1200 West
Redwood Road
800 South
I-215
800 South
Indiana Ave
I-15
River
dan
J or
±
ve r
Ri
RDA General Goals
RDA MISSION STATEMENT
General Redevelopment Goals
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Redevelop communities by eliminating blight and by enhancing
livability.
Promote sustainable redevelopment practices and land use patterns
Facilitate financing of priority projects in RDA project areas.
Foster walkability through projects that promote complete streets and a
network of vibrant and attractive pedestrian spaces.
Facilitate the enhancement and expansion of transit to further promote
RDA goals.
Help create welcoming public gathering places, including through the
funding of public works of art.
Promote the uniqueness, character, and identity of neighborhoods in
each project area.
Implement housing policies to foster a diverse and balanced community
with a range of housing options, including homeownership, for all
income levels.
Encourage historic preservation to promote the unique character of
project areas and foster sustainability.
Support a quality urban environment, including design, materials, and
construction of buildings and spaces, public and private.
1
The mission of the Redevelopment
Agency of Salt Lake City is to improve
blighted areas of Salt Lake City,
encourage economic development of Salt
Lake City, encourage the development of
housing for low and moderate income
households within Salt Lake City and
encourage compliance with and
implementation of the Salt Lake City
master plan. The Agency will participate
with Salt Lake City, Salt Lake County, the
State of Utah and other public entities, as
appropriate, in implementing its mission.
The tools available to achieve the Agency's
mission include:
1.
2
3.
4.
5.
Property acquisition, clearance, replanning, sale, and/or redevelopment;
Planning, financing and development
of public improvements;
Providing management support and
financing for projects which will
improve blighted areas;
Gap financing in the form of loans,
grants and equity participation to
encourage private investment;
Relocation assistance and business
retention assistance to businesses.