Salt Lake City 2023 City Council and RDA Board Meetings, 16 May 2023

Previous Meeting Next Meeting

⏯

youtube image

►

From YouTube: Salt Lake City Redevelopment Agency (RDA) Meeting - Date (05/16/2023)

Description

To view the agenda for this meeting go to https://slc.primegov.com/public/portal

A

A

We are here to have the RDA uh meeting for today. I welcome everybody here and everybody online to the Redevelopment agency board meeting our meetings are public and you're welcome to join us in person on Zoom or by watching the city console webpage, Facebook, YouTube or Salt Lake City TV. We hope you will continue to join us, uh however, manner you feel comfortable with we begin with comments to the board.

A

I would like to remind everybody uh that written comments might be submitted to the RDA offices via mail to P.O box, 145476, Salt, Lake, City, Utah.

A

84114-5476 or by emailing us at console dot comments at slcgolf.com or by calling our 24 hour line.

A

801-535-7654, thank you for joining us tonight um before uh we start I want to remind everybody about the rules of the Quorum uh which are in place to ensure that every meeting moves along well that we respect everybody and we make sure that everybody feels comfortable sharing their comments. A copy of the full rules of the quorums are available outside the door uh and our staff will post it on the zoom link.

A

As soon as you might, as some some of you might have noticed, we have switched from WebEx to zoom, and that comes with some challenges and and a learning curve. If you would like to comment on a public hearing today, we are accepting comments uh in person and online on Zoom ice. Isak Canada from our staff will moderate our Zoom line and we'll message you with any questions uh message him with any questions about your registration staff is handling a lot of tasks at the same time.

A

So please minimize uh your your interaction with the staff only to ask them about technical issues or about minimal information updates. If you do need to stop, if you do need to talk to our staff, please select Isaac Canelo from the list of participants. You can also raise your hand in zoom and uh you will be contacted by the host Taylor Hill and our staff will be calling calling those uh who wish to comment based on the order of the names as we receive them.

A

If you are in Zoom, please unmute your mic. When Taylor calls your name, uh you will need, uh we will now begin uh our general comment period. Taylor. Please start with our first comment.

B

Thank you, Mr chair, it looks like there is no one registered for General comments.

A

uh uh That is, uh we basically are moving along very fast on the agenda. uh There is no public hearing uh on item number B and then our item number c uh will there's uh we're not going to receive some uh business from the first item. Oh great.

C

A

So we can go to item number one with you know we will get finishing some some uh things on the agenda now we're going to the election of the vice chair for the RDA um and we need a motion.

D

A

D

Yes, I moved that we had like board member Dan Dugan to serve as the vice chair for the remainder of the calendar year.

B

A

I have a motion by uh board member Mano and a second by board member uh baldemoros to uh select Vice chair to select the the the vacancy of the Bike Share for uh the remainder of the year and uh select Dan Dugan um I. Is there any discussion on this.

A

Remember thank.

E

You very much for the motion and thank you very much for the opportunity to serve as the vice chair appreciate that very much and I appreciate the council's. uh uh uh You know respect for my position here and I and I look forward to working with you as on the board. Thank you. The.

A

Election hasn't happened yet, um so let me let me let me let me call the question: uh uh is there any other comments? Okay, let me call the question council member uh board member mano.

F

Do we or valid paper ballots on paper so.

A

I was going to call the question: let's.

G

Just borrow the paper.

F

No it's that we avoid the paper. Sorry I am a little crazy motion to close nominations and then, though, isn't that what we normally do, let's do it. Okay, that's my move to close nominations and um proceed to a vote by paper ballot.

H

Second into the second.

F

A

Think yeah call the vote, then that's what I needed to do. That's! Thank you. So much for the rules of uh I, uh so councilmember mano. Yes, Wharton! Yes, uh Dugan! Yes, uh valdemaros, yes and I'm a yes! So we are voting now. Sorry for that. That was a mess.

D

I wouldn't have known either how to do it.

A

I did I'd give it to you. I did vote.

D

Do you need our name.

A

No well the one that doesn't have a name well.

D

A

We are not allowed to run any other elections, we on the internal ones. It's just saying. Yes, the county is coming and our recorder.

B

Thanks everyone, so I have one vote: affirming council, member or board member Dan Dugan. Second ballot also affirms board member Dan Dugan as Vice chair; third, a firm's board member Dan Dugan; fourth, affirming Dan Dugan as Vice chair and the fifth affirm Stan Dugan as Vice chair. So it's unanimous.

A

So no need for names, so congratulations board. Member Dugan um is there any I think that's it. So we're moving along on the agenda item number two: the resolution RDA budget amendment number three for fiscal year: 2022 2023 um Ben lutke from the Council Office policy Analyst at the table, Danny Waltz, coming on the table. Two RDA director, May Beth, may be joining us mayor, Beth Thompson join us online. Maybe a Chief Financial Officer.

A

G

Thanks Mr chair, this is a follow-up briefing from the board's meeting. Last week you held the public hearing and closed it and then adopted one urgent item. It was four million dollars for the West Side Community initiative going to the program income fund for a property purchase in the nine line project area.

G

There is a corresponding item that the council is considering tonight in budget amendment number six on the general fund side to send the four million dollars to the RDA, so that item needs to be approved in addition to the board's action last week. In order for the property acquisition to proceed, the Administration has requested that the board consider approving the remaining items in RDA budget amendment number three today.

G

If there are any questions now would be the time to erase them.

A

Members any questions.

G

There is a motion sheet in the packet. It says: I move that the board approve all remaining items, as proposed by the administration.

D

Mr, chair I, move that the board approved all remaining items as proposed by the administration. Second,.

A

I have a motion by Romano on the second by uh board member Dugan. Any discussion on this okay, I will call the question. Remember: Dugan.

E

A

Yes, board: member Wharton, yes and I'm, a yes that is uh five and two absent, and that motion carries.

A

um We are moving along in the agenda, though we're going to item number three: uh the overview of the Redevelopment agency budget for fiscal year, 2023 2024 uh on the table. uh We added Jennifer Bruno, the deputy director of the select City Council your time.

C

Thank you, Mr chair, um I'll turn most of the time over to Danny, but just to orient um the board. The RDA is essentially a department of the city, and so this is the rda's. Essentially Department budget briefings the same way. You've been receiving all the other department budget briefings as part of the mayor's proposed fiscal year 24 budget, but because it's obviously it's a separate agency.

C

You hear it in your context as the board of the RDA, to the extent that there are any follow-up questions needed or um if there are any funding changes that the board members would like to make. We can schedule additional briefings and convene briefly as the board each time you would like those additional briefings.

C

There have been a number of items that council members have raised in terms of General budget discussions that would fit within the context of the RDA, so we can stay in touch with the RDA staff as those discussions evolve, but with that I'll turn it over to Danny great.

I

Thank you Jen. Can we have our presentation pulled up? Please awesome. um As Jen said, we are keeping with the overall theme and structure of the city, budget and presentation. Ours will look a little bit different as we're now part of the general fund, so we have a little bit more details or information. We provide and then also you'll see a few changes in terms of our structure as we are working towards the transition towards workday. So next slide, please and then one more after that.

I

Great, um the RDA budget is made up of multiple funds. You'll see that majority of our funds are project area funds, with the funding source being tax increment. We also have our four housing funds that are comprised of income from tax increment, the Inland Port money and then also contribution from the cities funding our future, and then we have our multi-use funds, which are within our program income fund and also include the revolving Loan Fund.

I

This is where we realize other income from like parking structures, rents things like that, and then we have our own agency operations account. One of the major differences we have from the general fund is that we have several holding accounts that carry over year to year. These are defined as capital projects, and this is to provide for for projects that either require multiple years of funding, to accumulate funds, to do something or something that we just have carry over year to year. As far as programs next slide, please, our budget process is fairly simple.

I

Obviously we project the revenue that we receive and then subtract our expenses and obligations as per our contracts and then allocate the remaining discretionary expenses to our programs and projects under Revenue.

I

You see that not only are we talking about tax increment, but the repayment of our loans and the rent payments that we realize, and then we have significant transfers both internally within our own funds and also external receiving that from the city or other sources, and then our expenses range from tax, increment, reimbursements to developers and payments that we make to taxing entities, our statutory housing obligations, as well as Debt, Service and other contractual obligations next slide.

I

Please so we'll take a look at each of these in a little bit more detail, the first being Revenue next slide one more time.

I

This is the revenue sources that we have looking at our project areas and our multi-use funds you'll see that we have just over 47 million in projected Revenue. This does not include our internal transfers, our cash balances or our housing funds. Obviously, you see our largest source of Revenue is our tax increment, and then we have approximately nine and a half million. Just an internal transfers between our funds. New to our budget process.

I

This year is what Ben indicated with budget amendment three is that we have the allocation of just over 4.6 million in what are called the transition holding accounts. This is the additional tax increment that we just realized in our current fiscal year and we're carrying that over into next year's budget so that it can be appropriated and discussed by you as a board collectively. So that's new to this budget year uh next slide please.

I

This is how the 45, plus million in tax increment, looks across the various project area funds. uh There's a lot of numbers on this spreadsheet you'll be tested at the end of it. So I hope you get a quick glimpse of them and can recite them.

I

But really what this shows is the three columns on the left are what the actual tax increment has been within all the project area funds 2023 B, is what was budgeted in this current fiscal year and then 2023 a is what you just approved as part of budget amendment three in terms of realizing the actual tax increment 2024 B is what we are projecting and budgeting in the next fiscal year and then you'll see in the last column. It's the relationship between next year's budget versus the actuals we just received in 2023 two things.

I

A note number one you'll see that the central business district and block 70 are on a downward Trend, and so we continue to show that, within our projections uh based on the research we're doing this looks like it's still the coming out of covet impact for some of the CBD project area and mostly the hotel industry. The rest of the project area funds are being projected at a two percent increase over what we actually received.

I

So that's a little bit less conservative than what we've done in years prior, but we're taking what the actual amounts were and then conservatively increasing that by two percent. Any questions on this I forgot to mention that, if you have any questions, feel free to jump in and yell or throw something at me. I.

D

Have a question and it might be more generic, but um I tax increment is property tax increment if I'm understanding it correctly. So um why does pandemic have an effect on property tax receipts? Is it because some businesses just choose not to pay their property taxes for the year or is it that the valuation, the tax assessor, has reduced the valuation based on not being able to receive.

I

Income, yes, it's a combination of factors Jen's going to jump in if she, if I get anything wrong number one, but also she always has way more information on this. So I appreciate her, adding her background as a property tax basis. You have two things: either the county can reassess based on what is happening just county-wide and with property values generally or the individual Property Owners can also appeal and ask for their property taxes to be reduced.

I

So it's important to keep in mind that the money we just received in March and December from the county was what were the property taxes paid in November of 2022 and those payments and values are actually what's reflected in the assessed value as of January, 2022 ish, and so, if you're, a property owner or hotel or someone, and you out your taxes for 2021 and you're in the middle of covid, you're, probably still seeing a lot of reassessments and appeals from those values, as the market was hitting that carried into tax year 2022 and then that's now the money we're receiving and budgeting for in 2023..

I

So that's the relation and yeah.

C

And the process is different for commercial property, for them to appeal and it's directly related to income, and so the way the assessor assesses commercial property is an income-based approach which you know if you're a property owner and you have 50 office vacancy, you can show the accounting very quickly that your income is reduced. Therefore, your assessment should be reduced, whereas a residential property owner would have to do. You know market sales and comparables to argue with the county that their assessment should be reduced.

C

So there's a direct sort of occupancy rate connection to the assessed value of businesses that were struggling in the pandemic.

D

That is a very clear answer. Thank you.

I

Awesome. uh Thank you next slide, please. This is just a visual representation of how that tax increment looks across the various project areas. Obviously, CBD is our largest generator of tax increment, but this is also to note that, as you look at the Depot district and Granary, both those project areas are in their final couple years before they Sunset.

I

But you see that State, Street and nine line the newer project areas are coming online at the same value and we'll replenish that it's also worth noting that our first two htrz applications are intended to kind of re-up, both The Granary and Depot District areas in general, so you'll see those hopefully come online as hcrz project areas.

I

Next slide, please.

I

This slide deals with the revenue as it relates to our housing funds. You'll see that we have just over 9.7 million in Revenue across all of the housing funds. The internal transfers at the top are essentially a tax increment being transferred into from the various project area funds. That's the statutory requirement. The 1.4 million is an increase of what we are now receiving and a projection of what we'll receive from the Inland port and then the 1.7 million the mayor's request for additional, affordable housing.

I

This is the amount over and above The Debt Service as part of the North Temple Viaduct project area. So after transferring the money necessary to make that payment, the mayor is recommending that the additional increase go towards affordable housing.

I

This decision, as Jen mentioned in her Memo, was made at about the same time that you, as a board, were indicating that you would like to see that potentially go to the North Temple Project area for use, and so that's a decision point that that you can make either as it relates to this specific funding request in this year's budget or give us that direction for budgets moving forward next slide, please here's! How that Revenue looks across the four housing funds you see.

I

The bulk of it is going into the housing development loan fund, which will be put out in anofa, um and then you'll see the increase in the West Side Community initiative of the 1.4 million projected for next year and then just a little over 400 000 in the transition account carrying over next slide. Please.

I

And next slide moving from our Revenue into our obligated expenses, you see that we have over 44 million in total obligations. The biggest of these is our reimbursement payments, either to Developers for tax increment or our payments directly to the taxing entities of what we kind of capture from our project areas and then pass along to them as part of our agreements. We also have a significant amount in debt service, both for Eccles and then The Debt Service on the North Temple Viaduct payment to Salt, Lake City, and then from there.

I

We get into our property management and our obligations as they relate to both Gallivan and Eccles, and then some minor obligations as they relate to infrastructure and contracts for commercial relocation at the bottom are the obligations as they relate to internal transfers, again: Debt Service, Administration and then our housing requirements.

D

Would it be possible of Mr chair sorry, uh and this could be offline if that's easier, but um the ti reimbursement taxing entity payments? Could? Is it possible to break those out between because they seem like kind of pretty different things, be great to see how much yeah? If.

C

You look at the key changes Pages starting on page 83, that will actually go through and even give you detail on which um tax increment reimbursements were made with which businesses. So um if you, if you want that level of detail by project area,.

D

Through the mrb.

C

Starting page 83 of the budget of the of the mayor's recommended budget.

I

G

Have 70 more slides.

F

I

It's a good time to get a snack. No, uh yes, we can absolutely break that out uh either between our annual budget or provide information on that as it relates. Thank you. Okay. Next slide. Please.

I

And then next slide so discretionary expenses- you see this in the general fund. Department budgets are called insights for us. They relate a little bit more to specific programs and projects. You see the header for programs again. This is a preview for how we're starting to separate allocations within workday, we'll have Appropriations for programs and then within those programs we'll either have funding that go into them on a holding account basis or we'll have requests that go into specific projects.

I

So that's what you're seeing in these slides is that breakdown between programs and projects, um starting with arts and culture, uh key changes in our budget. New requests relate to 25 000 for additional funds to do activation and programming in McCarthy, Plaza and Regent Street working in coordination with the county on some of the programs and activities they're doing and being able to provide some funds to continue that effort, and then the 150 000 for essentially a public art program. This would be within the nine line project area.

I

These funds could be used in conjunction with the mayor's goal for a West Side art installation. If it falls within the nine line project area, if not, it would be for an additional art. Commission next slide. Please.

I

Looking at Gallivan related programs, you see 214 000 in maintenance and repairs. It's the appropriation of funds for increased maintenance for the agency-owned retail spaces along Galvin Avenue that are aging and starting to need additional funding and then just over 500 000 in Gallivan Plaza planning, this inappropriation of Reserve funds moving forward to look at doing design, enhancements and capital repairs as they are recommended in what is the design strategy that we're currently undertaking next slide?

I

And again, please interrupt me if I'm I'm going through these quickly, so don't hesitate. uh You see a major part of our budget this year is our commercial assistance programs.

I

This is an update to our existing revolving Loan Fund, as well as our existing adaptive, reuse, Loan program, updating them uh similar to how we've done our housing loan programs, bringing back to the board, updated policy and and use of those funds and expanding those, especially the Adaptive reuse, across project areas, and then also you'll recall from our presentation, we're looking at the creation of a storefront activation program and providing funding for that and then potentially the cultural and Community component.

I

That will come back to you, so in anticipation of that, coming to the board, you'll see a significant amount of our budget. This year spread across multiple project areas to start providing funds in order to roll that out as soon as possible. Next slide, please.

I

Under strategic intervention, you'll recall as a board, you have set aside funds in different project areas. For this. This is really to look at appropriating funds in a holding account for project area development with certain uses, but it'd be a return to the board when we have specific projects or acquisition or site development costs.

I

Next slide. Please.

I

Looking at some of the infrastructure, improvements and requests, the first is 50 000 for the City Creek daylighting project that is currently going through a design plan to Daylight a portion of City Creek along Folsom Trail. This would be looking to take those design plans to a level of construction, drawings and, ultimately, hopefully, start working on that project and then 550 000 for the demolition of the Sugarhouse di building and fire station property there.

I

In anticipation of offering that property for affordable housing development next slide, please and then additional infrastructure improvements, 3.6 million in the depot District. In anticipation of the station Center project, you recall that U.S board allocated funds for consultant. That study is underway right now, and this is starting to look at continuing to appropriate funds for utility upgrades Street improvements, construction, streetscape, Parks Etc as part of that overall project than a hundred thousand within North Temple, to help with utility upgrades for projects or Street improvements or additional streetscape projects in that project area. Mr.

E

Chair Danny on the depot district and the uh station Center, uh are we going to have a briefing on the exact scope of that 3.6 in the project at some later date?.

I

That money will need to come back to the board for any use so that that'll be set aside with the additional funds right now, and those projects will come back to the board and then, as it relates to the specific plan, we're doing right now, you should be getting that briefing, I think either July or August with the the outcome of that study. Okay, okay for.

H

Sure go ahead so far, um similar questions so same area, so with the htrc. If we were to get it, we would get access to some funding to do housing. Obviously,.

D

H

That's the first thing, but also for infrastructure. Yes in that area, so we could potentially leverage this money with that or just use that one and not use this. Yes,.

I

You could potentially uh use hcrz for some of these purposes and then have these funds available for providing other benefits or parts of the project, et cetera. Thanks.

A

D

Does this 3.68 come from this.

I

Is uh Depot District tax, increment, Depot.

D

District tax equipment and we're saying to leave it in Depot districts, but but in this budget, we're specifying that would be used for infrastructure.

I

Yes related to station Center and the development of our property there, it.

C

Would be added to funds that have been previously allocated for that purpose, so the board has allocated some Depot District tax increment dollars over the years into that account. um The total is. The total amount uh is about 8 million, uh just over 8 million, with this additional three. If the board approves this additional 3.6, um it's not quite enough to fund the previous estimate uh cost for the infrastructure improvements, and so the board would have to discuss sort of how to make up that gap or whether to rescope the project.

D

When we say infrastructure improves we're talking about the upgraded streets with the Planters and things like the.

I

Combination of upgrading the actual utilities servicing the project and then also the streetscape that you've seen previously. Yes, thank you.

E

Both of these two funds, if they're, we could also use some of these for affordable housing in other districts, because it on the affordable housing side or is it all specifically has to go in the depot District? You.

I

Could uh transfer These funds out of the depot District project area if you're using it for affordable housing? Yes, okay, yes,.

F

C

And the depot district is transferring some money to the affordable housing programs. um Let's see it.

I

Has both the depot District Israel.

C

Yeah is transferring about a million dollars to the primary housing fund and then oh Emilia, a million dollars to the secondary housing fund. So just over 2 million from the depot district is going to housing.

E

Okay, so that just begs the next question sorry Mr chair about who, how do we determine and how much do we determine the each district, provides funding to that primary and secondary housing fund? The.

I

The primary housing fund is What receives all of the statutory obligations from all the project areas. So Depot has a 10 requirement similar to other project areas, so that gets all gathered put in the primary housing fund. The secondary housing fund is additional funds that you take also from Project areas and then put towards affordable housing.

I

State Statute separates those two different sections: different requirements for reporting, but both can go towards affordable housing and slightly different nuances, and so uh as as Jen and I described it in her Memo think of primary housing of what you must do and that gets gathered and then secondary housing is what you'd like to do. Above and beyond that.

C

And I would say that there's no um there's, no uh prohibition! Sorry, there's! No prohibition against the board making a decision to spend 100 of the increment on affordable housing. It's just what other you know absent your tax increment obligations. Obviously, so you know if you've agreed to repay tax increment to a business. You'd have to do that, but you could choose to spend all of the tax increment on housing. If you.

E

Wanted to right, but 10 off the top is automatically going to the primary.

C

Required by law required.

E

By law, from all the districts- okay, that's perfect.

C

And- and it depends on, it depends on what the law said when the district was created, so you'll notice that some districts have one amount. Another other districts have other amounts. Some districts have no requirement, um even though our city tends to require it anyway.

D

I I'm going to ask another question: okay, Mr, chair! Yes on that, so the primary housing fund and secondary housing fund are from all the taxing all the areas and they can use anywhere in the city, but we do the only one. That's geographically restricted is the West Side Community initiative and that's based on our decision to geographically limit it to the west side. Is that correct, that's correct and that can be housing? It can be other things. The West Side communicative is not part of that.

C

So well so because it is funded from the tax increment from the Port Authority for affordable housing. I think we need to be careful about ancillary uses of that money um of that tax, increment stream. I think that does not mean that you couldn't uh enhance the West Side Community initiative with funding sources other than the tax increment stream from the port. Does that make sense so like if you wanted to transfer money from the program income fund.

D

Legislation says that it must be used for housing. We have said that we want it to be used on the west side on.

C

The west side for Equity sharing.

D

C

Include some commercial and.

D

Okay I'm following now. Thank you. The.

I

Only two things I would add to that is I Jen. Correct me. If I'm wrong, I, think the original statute for the Inland Port was to go towards affordable housing for the areas affected by the Inland Port, so I think the general consensus was. It would be somewhat near there. It wouldn't be, you know across the city, so that's kind of where you as a board came with were to Define that West Side um and then the other part is within the West Side Community initiative.

I

It does provide and speak to the ability to do commercial and and affordable, but I think that was always intended to be. If you did a mixed-use structure that still also had a residential component. Tell me if I.

D

Got any of that wrong? Okay, I guess. Actually, my original question that I I lost myself on was that's the only point for any of our affordable housing activities. That's the only one of our funds that is geographically limited. Is that true or do any of the other project areas have specific housing things within the project area.

I

No, that's the only one that.

D

I think everything else is.

C

Clearinghouse, the one the one I think is the Adu initiative in the nine line would be restricted to the nylon area. So I think that if you were to create a program within a project area with project area funds, you might be tying your hands geographically. So I think that Adu program is tied geographically and that probably has as much to do with the County's expectations as the board's decision.

I

um That one's actually yeah Jen you're right that one's a requirement to have one in the nine line area, but the funding that you allocate can also go to adu's city-wide, we're just obligated to have one. It must be done.

D

In nine line- and so that's where we've chosen to.

I

Start the pilot program, so we meet that requirement excellent and then take that show Citywide. If we want thank.

D

You I know you've I've been told this like a thousand times, but thank you for recapping.

I

Okay, no thank you any other questions before. Thank you next slide. Please.

I

uh Last infrastructure uh program is 300 000 for ballpark planning. This is essentially an appropriate funds to engage a consultant to help with uh vision and implementation plan for the offering and development of the stadium and adjacent properties.

I

Next slide, please.

I

This is what all of those programs and allocations look like across the multiple project areas. So this is kind of good to see how they fall within the project area budget specifically and then how they fall between the program and the projects on their right. You'll see that there are some allocations and programs like the commercial assistance program and strategic intervention that they have allocations across multiple funds. Another quick question: yes,.

A

Sorry I should have mentioned it the if we go slide back on the ballpark. um The results of the competition were released very recently on the ballpark. Next, uh the sand, competition.

F

A

Administration on the mayor uh been pushing and I was reading through those, and it was very exciting to see some of those dreams and that some of the the community members submitted.

A

um So how is that connect with this I mean that competition is ongoing, ongoing right now.

F

A

Has a price tag you know for the price for whomever wins, it I think it's like 25 000, and how is that? Isn't that going to happen first and how for us to go next about planning that who whomever wins? How do you know what the process is.

I

It's a great question and I appreciate you bringing that up. Yes, the the voting went live at 1201 this morning, so that those have been released and the voting has started. The idea of hiring this consultant would be to help us, as both an agency and a city, to balance the work that was done as part of the station area plan and then now with the design competition.

I

A lot of the themes and ideas are coming out of that there is a significant amount of work done by the community and with the Consultants of what the ballpark neighborhood could be as part of that stationary plan, but it didn't address the ballpark specifically because the idea at the time was that the team wasn't leaving the ballpark was going to be there and now with the design competition.

I

As you said, we're getting a lot of ideas, we're getting a lot of themes of what the community is is proposing for that, and so this would kind of bridge those two efforts and then help us kind of pull out. What we feel are the highest priorities and desired outcomes of what we want to see there, and then that would inform us when we put the property out on the street for development.

I

So it's taking that all of these ideas and then now kind of sorting through them coming up the priority and then putting that out is what are our main things that we want to accomplish in Redevelopment of that property. Thank you that answer the question better. Yes, thank you. Thank you. Okay next slide, please.

I

um So back to this you'll see that with commercial assistance, programs and strategic intervention, these are specific allocations across the different project areas housing we can do anywhere, but the tax increment we receive from the project areas specifically to any commercial efforts, has to stay within those project areas. That's why you see multiple allocations for what those programs will be and how they'll be spent within those areas.

I

Next slide, please: okay, now focusing on our housing activities. This is part of your annual housing funding strategy. First thing I need to mention is that first dollar amount should be 1 million and not 2 million. We we had some overlap and requests and working through the final pieces of our budget, so one million would go to property acquisition, and this is just as, as you know, as a board setting aside funds regularly for acquisition opportunities as they come up and looking at turning those into affordable housing projects.

I

uh Director mono your comment on the Adu, starting with the pilot program in the nine line, but allocating 1.4 million for that and then potentially over time being able to take that project or program in other areas of the city. Next slide, please Mr.

D

A

I

Member Dugan, first, okay,.

E

Can we go back a slide? Please sorry is the housing side of the house, so uh we have our four priorities, like the wealth building, family housing, deeply and Missy middle, uh and we have a.

E

Requests that did not meet meet our priorities and uh have we or always Met has always been a project that met the priorities.

I

So this last nofa that we did last year that you approved the allocations for back in December I, believe that was probably the first nofa where we really took not just your priorities. We've done priorities before, but that's where we took some of those priorities and put them in as thresholds and- and you recall, when we did that presentation yeah, that we were really surprised and fortunate that we had so many projects that not only hit the priorities but actually met those threshold designations.

I

So to answer your question technically, the answer would be no, but we've really only kind of added that extra layer, one time so I think as we continue to do this. That may happen and and we'll discuss at that time of how we either present that to you as a board as it relates to those specific requests and projects or if you then want to either reissue the nofa change the parameters of it or just then put it out on an ongoing basis, because you remember, when we first put it out, it's competitive right right.

E

And everyone knows what those are. Our priorities are: they're, not secret, so they know where we want to go so I guess that just uh okay that helps me because I just I was just worried that hey we come to a point where no one, no one makes the cut. So what do we do next? So I guess what I'll have to come to that bridge when we see.

I

It we we technically have that right now related to our high opportunity funds that we've put out in every nofa and.

C

I

Had one project make the cut and then you, as a board, uh have been approving, along with the mayor's recommendation, to just hold on to those funds and continue to leave them out there on an ongoing basis. You recall: we've had some projects, we've tried to put them in those haven't happened, so we just continue to work on trying to hit that goal with those funds.

E

D

um On the property acquisition I know, you said it's 1 million, instead of 2 million. We're just sort of brainstorming can can probably acquisition if it's intended for housing happen outside of project areas, even with project area funds. Yes- and we just have to remember that we purchased that with the intent to do affordable housing and we have to actually do affordable housing on otherwise we'd be out of compliance with absolutely.

F

But we've never done that. Yet! Oh yeah, that's the second question.

G

I

B

So overnight.

I

I, don't think we've bought, no, that was in North, America I, don't think we've bought property yet uh outside of a project area. If you remember, we were looking at a property on Foothill for a while. That was one that we were coming to saying. This is kind of our first attempt at going outside of a project area.

C

Yeah, that's right because the firehouse was technically.

I

In the project area, at the time, yeah, okay.

D

C

F

Know why it's been discussed? Yes, apparently not happened. Have we done the funding thing.

C

Outside of the CRA? Yes, because um the high opportunity area was outside of a CRA and.

B

C

um Or sorry, the Richmond Flats.

F

And did we take it from one CRA or did we take a little bit from all a bunch of others.

I

uh If I remember, I believe the allocation of high opportunity funds was part of that 21 million.

C

Very first reallocation, yeah right, which gathered up funds from a lot of places. Yeah.

I

It was multiple project areas.

I

Oh I just got a text from Cara Lindsley. We did do a property acquisition for ninth East loss. This was the Housing Authority project on Ninth East, just south of Fourth South, where we did buy the property yeah.

C

F

You thank you Kara.

I

And you thought.

F

You weren't needed.

C

In this meeting.

I

A

I

Any other questions all right next slide. Please.

I

um Continuing with the housing activities uh looking at putting just over four and a half million in the housing development loan program, this is the competitive nofa that we will be issuing for this year, and then we have an allocation of 380 000 for family and Workforce housing. This is a function of our inner local agreements.

I

With the school district for nine line of State Street, they have asked us to take a portion of their tax increment as it relates to housing and put it towards family and Workforce housing to support the school district teachers Etc. So this is something that will be included in that competitive, nofa and then it'll be on us to make sure that any projects we do that meet that guideline. These funds are placed into that. But really this is more just a monitoring and reporting requirement that we have.

I

Will be leveraged with the other four and a half million, but, as you stated, one of your priorities is family housing, so we anticipate getting projects that'll need way more than just this 380.. We just have to report to the school district that this section of money actually went into those projects and can be added to other funding sources.

H

And but also that will also have four million dollars as well destined to similar uses.

I

Yes, they know yep.

H

It's more than.

I

To use a border putting a lot more than just 380 000 towards family Workforce, we just have to specifically report this. Okay.

H

I

I probably should have started with that description. That's.

H

Okay, I just want to make sure that the school district knows I know um you know how it was a little bit difficult.

I

H

The past so thank.

I

You next slide, please.

I

And then uh new this year, as part of one of your priorities, uh two point million towards shared equity. This is appropriation of funds likely will go out initially in anofa, but this is to address shared equity and wealth, building priority for the West Side committee initiative, so this nofa will provide those funds uh anticipated to be in the form of either loans or Equity Investments to either specific projects or programs. That entities propose to us, so you will see that as a board of if people are starting to put these programs together.

I

Outside of you know what some of the considerations you have right now, we know there are multiple groups looking at options, so we wanted to put this funding out there to see where some of those are at and start prioritizing. This, as it relates to projects uh specifically within the West Side Community initiative.

I

Next slide. Please.

I

And then director Dugan, you, you kind of stole my thunder for this slide, but this is just a recap of where you're at with how this all fits within the annual housing funding strategy. So you know we come to the board with what the specific allocations are for each of the funds that are projected you, as a board recently approved those four priorities in the middle and then now as part of the budget you're allocating those funds to the specific activities that we have recommended within the budget.

I

So that's how it all kind of comes together next slide. Please.

I

And then here's what those allocations look across the four housing funds and then the column on the left is what those look like with the specific programs. That's pretty much the same information you see at the bottom of the total by all program funds, but you'll notice that uh the nine line, because that is a allocation of tax increment, primarily that is where the Adu money is coming from and will be spent and then next slide. Please I think we're transitioning over to admin.

I

So one more slide, please, the only significant change in our administrative budget is an increase of 276 000 for our overall admin cost, and also the addition of two project coordinator positions to help with workload and start providing some of entry level positions for our staff document.

A

If Danny I'm, sorry I'm in a delay today,.

I

That's okay: where would you like to go back to.

A

Airport at five in the morning today so I um so on, the Adu uh can.

I

We go back two slides, please thank you.

A

um Is there any uh the timeline on when those uh funds will be available for the public? What is the process and are we partnering with a community organization, or are we starting the process to to do that? To distribute those funds.

I

um So from a requirement, standpoint I think it's the first five years of the nine line project area.

I

We need to have a program up and running, and so we're going to probably be able to meet that we're in a position right now to put out an RFP uh with the intention of partnering with other organizations to help us really hone in on what the creation and administration of that program would be, and that could be a combination of working directly with them or them providing advice to us of how we could craft that program and maintain it internally and then I think.

I

In light of director mono's comments recently, we are going to be bringing that back for a discussion just to update and answer some of the questions. I think you had of how that program may look uh both within nine line and address I think some of those larger discussions you've had as a council, so we're setting that for your June agenda and then any input or feedback we get from that. We can roll right into then putting that RFP on the street working with procurement in that process. Right now, I.

A

I tell you I'm hearing a lot from some of my neighbors. You know the Adu discussion that we had earlier this year and there's still people talking about adus and um we you know there was some sort of urgency about us to to make that put those funds, so yeah I I, would love to as soon as we can make that process go faster. That would be great yeah.

I

Spend this money till July 1 either way so come.

A

H

Board member going along that I think there is a sense of urgency because we did put a time limit like we agreed on. You know we want to see if it works or not and then if it works great, if it doesn't, we have to make adjustments and then look at the owner occupancy requirement that we were discussing.

H

um So if because you're, adding more people or just two people, Legion just two people um and if you know, if the council agreed in this budget season first as a council to add that million dollars that was in a legislative intent. So basically, if the if the mayor decided that the best place for that million dollars for adus would be with the RDA, for you guys to manage, do you think you can do it yeah and then you'll have 2.4 million dollars.

I

And I assume that million.

H

Would be city-wide? Yes, okay, all right.

D

I

A million that we I'm not looking back at my staff right now, just.

C

To clarify that million is not in the budget right now correct.

H

But the council got it.

C

But we wanted the council could transfer it to RDA right, meaning there's no prohibition against transferring general fund dollars to RDA. In fact, that's what we do with the housing nofa dollars.

A

Okay, I only see Smiles behind you.

I

So good, okay! Well, thank you uh uh next slide or Tucson. I! Think that's our last! It was the admin.

D

Mr chair yeah, go ahead. I have a question, it's a small item, but back at the beginning of the discretionary items there was the art 150 000 for RDA arts and culture program.

D

um That is, is that a hundred and fifty thousand dollars an additional allocation on top of the one and a half percent for art. Yes,.

I

That is a function of uh within our art policy. We have the well. The city has a one and a half percent for art- that's totally separate from us, yes, but then our our policy. We have that uh if we do infrastructure projects, we will meet that and then we also have the provision that we can um either incentivize developers to incorporate it within their projects or you, as a board, can also budget additional public R funds at any time from Project areas. For projects like this- and this is additional.

D

Taking away all the one and a half percent, or anything else, okay, yep, um and that okay, so I I, would love to find out what how that process will be. In terms of I mean. Is that going to be a transfer out to the Arts Council or.

I

What so, as per our policy, we start with working with the Arts Council to see if between their workload and what they're targeting, if we can just provide funding and work directly with them to put out an art commission through them and and use their process, uh and if either they can't do that or if we have a specific project or a commission in mind, then we have also done that ourselves internally, with like The Granary, art, mural program and art for hope.

I

So we have the option to do either one, but we generally start with seeing if we can use the partners who do this uh as part of their jobs without imposing on them a burden. So we have that ability to go either way.

G

Okay, there's a an additional 150 000 that you'll see in CIP on the general fund side for New, West, Side art, so there's 150 000 in CIP, which is separate from 150 000 that we just talked about in the nine line context they may or may not be combined. They could be combined if it's in the nine line project area or they could be two separate areas on the west side.

D

I'm excited for that. I think that we need a statement piece on the west side and love for it to be.

C

So if the counselor, sorry, if the counselor or the board, felt it important for those items to be combined on in terms of the policy direction of one larger piece versus two less large pieces, maybe um might be good for the council to consider from a policy perspective. Because we could add that language into the budget to specify that those that the expectation is that those funds are combined.

D

I see: okay, um okay, great.

E

A

E

uh On the administrative costs, we have project areas that start to expire. Yes, and of course, sometimes the bigger project areas are expiring and administrative budget kind of stays relatively flat was slightly growing. Just because there's always administrative costs are going to go up, so the I have to believe. You have a fairly good strategy on when these uh project areas are decline, are expiring decline in retiring, uh how we account for and how we Supply the administrative costs going forward. I.

I

Think I think Jen described this very well in her Memo. We have. um We have a conversation that needs to start happening because, as these project areas expire, even some of the newer ones we are approving, while they may be matching them in tax increment.

I

A lot of the newer project areas, and especially the hcrzs, have a much lower threshold for what we can contribute towards admin costs, so our workload may not be going down, but we need to start looking at other sources of how to cover our admin expenses, and so we we're already starting to have those conversations internally. You know with financing. We appreciate Jen and Ben work at recognizing that as well, because that's something I think we're going to need to look even just beyond the agency for how we cover those expenses. Okay,.

E

Great appreciate that, thank you.

A

uh Danny I have a quick question and it's uh stated on the uh policy questions and number two. uh It relates to a station Center area, uh and uh it's about the public and private partnership models uh about for governance uh for for funds.

A

um Obviously, I have uh you know some opinions about this, and I would like to uh pick your brain about this and bring it up uh to the board. uh You know this last uh this year.

A

It feels like a year ago, but this year uh talking to the legislature about the fur Park Authority and how the conflicts we have with that uh and stating our issues with our model and also with the Inland Port Authority and creating this uh uh unelected uh boards uh that decide how public funds are are used, I utilize as something that I struggle with. So I would like to pick your brain a little more and see. Maybe you can elaborate.

I

uh I can tell you for certain we're not necessarily looking at becoming the next Inland Port, but I. Think uh Jen did a great job of putting this in the context of station Center, because that is a conversation that has come up as we've looked at the development of that uh initially, with uh potentially looking at the you being a partner and what level that is a true Innovation District to where we're at right now and where we're at right now is.

I

That is what is a big part of our conversations with the consultant of not just what the recommendations are for developing the property, but as the agency is looking at, becoming or continuing to be the long-term owner of the property and looking at Ground Leasing and then the the uses we're targeting for how we want to activate that and have some level of technology or innovation District.

I

We recognize that there probably needs to be some form of an ongoing governance structure and that could range everywhere from looking like a simple Owner's Association to something being more of what really governs the uses and the tenants and the activation and the programming.

I

um So we're we're trying to understand how that fits within what our goals are for developing it, and what we see is what the ultimate users and tenants would be and then how we make sure that we do that, not just as part of that initial development offering and scenario, but how we make sure that we're accomplishing those goals within that area in perpetuity and that's like I, said everything from you have some kind of organization that helps with the program and activation or what is our role in terms of what may be a larger board in governance structure?

I

And how does that look? So it's a great question and it's one that we're looking at and we'd love to have any feedback or input from the board of whether we should be looking at that even Beyond station Center and what that could be not just on other properties, project areas but city-wide for for tools that we want to use. Well.

A

Let me I I, think that this is is good to explore, uh is always good to like see how models work, especially in an area like the station Center I do struggle uh going on that path, especially because I feel like it undermines the stances that this city has taken with the legislature.

A

You know by Crea by the legislature creating this uh governance boards that produce public monies from the city, but they are unelected and the accountability uh is an issue there.

A

In my opinion, uh and if we were to create a a similar uh entity uh ourselves, then we have less of a stance to argue these other issues with the state uh uh Fair Park, Inland port- and you know the state- would love to probably create these unelected groups, and we have discussed quite a bit this year about this other mechanisms that the state is trying to create uh pits and whatever else so, I I usually throw with the idea. I do understand that we want to create some sort of continuity and.

F

A

Long term, um but I do uh prefer that you know an elected body holds the the reins on this, so so yeah I just wanted to leave that out. There I.

I

Appreciate that context and and I know as a little flipping with my initial remark of saying- we're not looking to be the Inland Port but I think that's very relevant because, as we look at it, we're seeing it as our role of how do we expand upon what opportunity we would have as the long-term landowner of continuing to be able to provide the public benefits we want. So while we talk about what a governance structure could be, that is to what extent we may need to be pulling in other experts or other providers.

I

That would still be within that. So they would be stakeholders. They would be people who are involved in that in helping inform what that might be from even just a programming and activation standpoint, and then the benefit of the structure. As far as the RDA is concerned is how can we structure that, in a way with a ground lease or other development agreements, so that we can continue to even just apply some of the funding or Revenue?

I

We get to continuing to provide the public benefits and whether that's you know providing space for small businesses, whether that's subsidizing that whether that's you know part of the program activation. That's the level of how we're looking at it, not necessarily something that I think would be at the level of what the state's setting up in those but I think you're. Absolutely right that we have to make sure that we're doing that within that right context and yeah and not providing that problem. Yeah.

A

You just don't want to create that. That is very important to me that we're not going that route um at least I'm talking about me personally, that route is is not the route that I will prefer to go at all.

G

A

um And- and it opens up for a lot of issues uh in our relationship with the state but also I, don't think necessarily is the the approach that this city needs to go to any other. Yes, sorry.

F

um No, that's fine Mr, chair I just wanted to also state that I share all those same concerns and I like want to say before we even get too far into that, but uh or too far down the road that I feel very strongly that we not um put ourselves in that position. So I just want to Echo that yeah support for myself.

A

Thank you I. You know. I I know that you, uh you have the some of the most brilliant people I ever interacted with and.

D

We can find.

A

A different path uh to to accomplish similar goals, but creating a uh in an uncountable, unelected group of people to uh direct public funds, um but I just want to leave that out there any other comments. Sorry, no.

I

No, that's I honestly appreciate that feedback, because those are conversations we're having right now and I think that's very helpful to make sure we limit and yes.

E

Thank you stay focused. Thank you, Mr chair, just what happened and maybe a later date talk about the bonding ideas on the uh some catalytic projects and stuff, like that. Maybe a separate date in July or yeah.

I

It's been a while, since we looked at that, so it might be. Yeah it'd be worth looking at that, especially now with some of these project areas coming online yeah. Please put it on your to-do list.

E

Thank you. Thank you. Mr Meister.

I

Any other questions information we can provide.

H

The last slide.

I

That's all of our slides uh I'll just note that we we had a an appendix section too, as part of the presentation. So if anyone really wants to go on a deep dive um uh feel free to do that, and if you have any questions as part of that, let us know thank you. I think I'm supposed to turn it over to you for.

C

Council member questions throughout so I didn't have anything additional to add other than um maybe just a general uh request for feedback from board members.

C

If there are elements of the RDA budget that you want to see um either adjusted or discussed further, let us know we'll let the RDA staff know so that we can figure out when it makes sense to talk about in public again every now and then, especially if things are going back and forth between the general fund and RDA, we try as much as we can to schedule an RDA meeting, but every now and then we will talk about an RDA issue if it's also related to the general fund.

C

So general fund unresolved issues is also another time to talk about RDA follow-up, but staff will be tracking those issues as we keep talking.

H

I

Thank you. Thank you very much.

A

Moving along on the agenda, we.

A

We did good on time we're moving to item number four report of an announcements from the executive director. I, don't know if Rachel anybody, no, no updates. Thank you reports on announcement from the RDA stuff, Danny I.

I

I think we did enough last week, I probably should have split those between the two meetings. So thank you, Mr, chair.

A

Microphone so you can go whenever. uh Thank you, uh Danny I. There is no uh items on written briefings, consent uh and there is not a closed session. So I think we uh our journey as the RDA board. Mr.

D

Chair can we come back at three 25 minutes? Let's do it! Okay, thank you. Does that work for you, Cindy Lou, okay,.

D