8.B. - Redevelopment Agency of Salt Lake City

REDEVELOPMENT AGENCY STAFF MEMO
DATE:
August 18, 2015
ITEM #:
8.B.
PREPARED BY:
Jill Wilkerson-Smith
RE:
Consideration and Recommendation of Terms for a Grant
Agreement between the Redevelopment Agency of Salt Lake City
and Centro Civico Mexicano for a Limited Site Investigation of
Property located at 155 South 600 West
REQUESTED ACTION: Consideration of a term sheet for a grant agreement between
the Redevelopment Agency of Salt Lake City and Centro Civico Mexicano (“Applicant”)
for a Limited Site Investigation (“LSI”) of the grant applicant’s property.
POLICY ITEM: The Centro Civico Mexicano Project (“Project”) supports the Open
Space Creation and 100 South Project initiatives identified in the Depot District Project
Area Strategic Plan.
BUDGET IMPACTS: The total proposed grant amount is $6,622, representing 50% of
the $13,245 LSI fee from Terracon’s scope of services for the work. Staff proposes
funding the grant from the Depot District Loan Program account (current balance:
$346,345.50).
RAC RECOMMENDATION: RAC recommends the RDA fund the grant on the
condition the Applicant successfully obtains low income housing tax credits for the
housing project.
EXECUTIVE SUMMARY/ANALYSIS: The Applicant is requesting a grant from the
RDA to complete an LSI as part of its due diligence prior to building a new civic center
and senior housing project on its property at 155 South 600 West. Terracon, the
Applicant’s environmental consultant, recommended the LSI to assess soil and
groundwater contamination that might result from prior industrial activities based on its
Phase I Environmental Site Assessment findings. The LSI, estimated to cost $13,245, will
inform future remediation activities. The Applicant is requesting a $6,622 grant from the
RDA to fund 50% of the LSI. The remaining 50% contribution will be funded by CIT
Bank and Centro Civico Mexicano.
ANALYSIS & ISSUES: The Applicant is currently undertaking planning and fund
raising activities for the Project. The Project is in close proximity to the RDA’s 100
South properties, and will complement future development north of the Station Center
Project. The Project includes public space elements that will benefit the community, such
as outdoor plaza space and an outdoor theater. The RDA and the Applicant are discussing
how to address connectivity to future development east of the Project. For these reasons,
the RDA staff feels the grant is a reasonable request.
Last Wednesday, RAC discussed the grant request and recommended the Board approve
its funding contingent on the Applicant successfully receiving low income housing tax
credits for the senior housing phase of the project. The Applicant believes that addressing
environmental concerns now will assist in receiving the low income housing tax credits
that would be allocated this December.
Project Information: The developer will apply for an allocation of low income housing
tax credits this fall for the senior housing component, and expects the tax credit award by
December 2015. As the housing phase enters construction next summer, the Applicant
will apply for funding to build the civic center. The housing component is expected to be
complete in January 2018, and the civic center will be complete in January 2019.
The project will include the following elements:
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Senior Housing: 56 units of low-to-moderate income housing will be constructed,
including studio, one-bedroom and two-bedroom apartments for active seniors.
Office/Classroom Space: The Applicant will construct offices and classrooms as
part of the new facility. Classrooms will be used for a variety of purposes such as
after-school programs, cultural education, lectures, English-as-a-SecondLanguage (ESL) classes, and business training.
Retail: The Project will include nine micro-retail spaces (“bodegas”) for Latino
and other small businesses.
Recreation Space: The Project will include a multi-purpose facility to host
recreational activities, meetings, and events. The facility will contain a large
gymnasium space on the ground floor and a soccer facility on the roof top.
Black-box Theatre: A small black-box theatre will be incorporated for cultural
events.
Exhibit Space: The Applicant will build a small exhibit hall to house visual arts.
Child Care: A child care facility will serve the low income Latino families in the
community.
ATTACHMENTS:
1. Term Sheet
2. Centro Civico Mexicano Project Site Plan and Massing Model
Centro Civico Environmental Assessment Grant Agreement
Term Sheet
Purpose:
Grant Amount:
1.
The Centro Civico Environmental Grant (the “Grant”) shall be a
matching grant that will be used to fund a Limited Site
Investigation (“LSI”) to prepare its property for future
development. The property is located at 155 West 600 West.
2.
3.
$6,622.00
Grant Match:
$5,000: CIT Bank
$1,622: Centro Civico Mexicano
Grant Recipient:
Central Civico Mexicano (Developer)
Conditions of
Grant:
1. Developer shall provide a copy of the Phase I
Environmental Site Assessment and LSI to the RDA
prior to grant disbursement.
2. Developer shall provide lien waivers for all work funded
for the Study by previous grant disbursements.
3. The RDA grant shall not be disbursed until the
Developer’s 50% funding match is depleted.
4. The RDA shall have determined that all work on the
Study is within the approved design and budget.
5. The total amount of grant disbursements shall not
exceed the Developers payments for the LSI.
6. Such other terms as required by Agency legal counsel.