D A T E T U E S D A Y A U G U S T 11, 2015
WORK SESSION OF THE
BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF SALT LAKE COUNTY
~ Minutes ~
Tuesday, August 11, 2015
3:47:30 PM
PRESENT:RICHARD SNELGROVE
JENNIFER WILSON
JIM BRADLEY
MICHAEL JENSEN
AIMEE NEWTON
SAM GRANATO
STEVEN DEBRY
MAX BURDICK
ARLYN BRADSHAW, Chair
Project Updates (3:47:30 PM)
Ms. Alison Weyher, Redevelopment Manager, Office of Township Services, gave an update on the following Redevelopment Agency projects:
Millcreek Town Center CDA – The bid has been awarded for this project. Zions Bank and CRSA Architecture are working on the small area plan, which is just about completed. The Redevelopment Agencyis reviewing drafts now.
Kearns Center Development Plan – This is a grant project, which the County is partnering on with the Wasatch Front Regional Council. They have selected GSBS Architects and InterPlan as the consultants on the project. The Redevelopment Agencyhopes to have a signed contract by the end of the week. Work on the project will begin once that is signed. The project is to master plan 101 acres around the Utah Olympic Oval. The 101 acres is owned by three entities – the LDS Church, Salt Lake County, and Kearns Oquirrh Park Fitness Center.
Artesian Springs Apartment Development Project –The developer has pulled the building permits and the County is holding a groundbreaking in September, which the Council will be invited to.
The Redevelopment Agencyis triggering West Millcreek and Arbor Park area plans this year. There is also the possibility of another project area in Kearns.
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Potential Workshop on Key Functions of the Redevelopment Agency
Ms. Alison Weyher, Redevelopment Manager, Office of Township Services, stated the Redevelopment Agency thought it might be useful to the Board of Directors to provide it with a one to two-hour overview of the functions of the Redevelopment Agencyin a work session. The Redevelopment Agencyhas been conservative so far. It has done two property tax rebates, and one risky loan, which was secured by personal guarantees. However, it is starting to get more active, and it may start looking at some other uses for the funds.
Council Member Bradshaw suggested Ms. Weyher work with Bart Barker on scheduling a day to do that.
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Possible Loan to Bennion Gardner for Construction of Mixed Use Building on Magna Main Street
Ms. Alison Weyher, Redevelopment Manager, Office of Township Services, stated Bennion Gardner approached the Redevelopment Agency requesting a loan. Mr. Gardner owns the two lots on Magna Main between the Magna Times Building and the Webster Center, and would like to do a mixed-use project there with two apartment buildings fronted by commercial space. He has obtained construction financing, but is looking to secure permanent financing before he begins the project. He is seeking a bank loan of $144,000 for permanent financing, but would also like a $50,000 loan from the County to match that $144,000. The County’s loan kick-in process does not take effect until a project is constructed, so in the event the project does not get finished or does not meet standards, the loan would be null and void.
With the request, the County would do a 20-year loan with a significant balloon payment. Mr. Gardner would like the balloon payment to happen in 10 years, but the County would like that in 7 years, so it can recoup its money sooner. Mr. Gardner’s project should be stabilized in 7 years, so he should be able to find other funding then.
This would be a riskier loan than the County has done in the past because the County would be in second position behind the primary lender on this. It might be able to get some personal guarantees from Mr. Gardner, and it does have $312,000 in theRedevelopment AgencyProject Area budget, which is going to expire in six years. This would be a good use of those funds as the project meets all of the goals of the Redevelopment Agencyfor a project area, i.e. it would eliminate blight, the façade of the building is a historic façade that looks very similar to the Magna Times building, and Magna gets new housing and new commercial space. If the Directors think the County should not do this, she asked that it let the Redevelopment Agency know right away.
Council Member Bradshaw asked how Mr. Bennion felt about the 7 years.
Ms. Weyher stated he likes 10. The County could work with it either way. Normally, the County would have a de facto policy in place that says the number of years for these loans, but it has not done this before.
Council Member Bradshaw stated he was going to suggest the County develop such a policy.
Council Member Jensen stated Magna Main is in need of a little bit of help and the Redevelopment AgencyProject Area funds are going to expire in six years, so he would be willing to use some of thatfor development and more commercial along Magna Main. He suggested the Redevelopment Agency negotiate with Mr. Bennion and see the plans.
Council Member Bradshaw stated he concurred with that and suggested the Redevelopment Agencywork out the specifics before final approval of an agreement.
Council Member Jensen, seconded by Council Member Bradley, moved to move forward with negotiations with Mr. Bennion for up to a $50,000 loan. The motion passed unanimously.
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THERE BEING NO FURTHER BUSINESS to come before the Board at this time, the meeting was adjourned at 3:55:40 PM.
SHERRIE SWENSEN, COUNTY CLERK
By ______
Deputy Clerk
______
CHAIR, REDEVELOPMENT AGENCY
OF SALT LAKE COUNTY
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