Special RDA Meeting

MINUTES OF RDA SPECIAL MEETING – AUGUST 25, 2020 -1- THE WEST VALLEY CITY REDEVELOPMENT AGENCY MET IN SPECIAL SESSION ON TUESDAY, AUGUST 25, 2020, AT 6:49 P.M. THE MEETING WAS CALLED TO ORDER BY CHAIRMAN CHRISTENSEN. THIS MEETING WAS HELD ELECTRONICALLY. THE FOLLOWING MEMBERS WERE PRESENT ELECTRONICALLY: Don Christensen, Chair Lars Nordfelt Ron Bigelow Tom Huynh Steve Buhler Jake Fitisemanu ABSENT: Karen Lang, Vice-Chair STAFF PRESENT: Paul Isaac, Acting Executive Director Nichole Camac, Secretary Nicole Cottle, CED Director/General Counsel/ Assistant City Manager Eric Bunderson, City Attorney Layne Morris, CPD Director Collen Jacobs, Police Chief John Evans, Fire Chief Jim Welch, Finance Director Nancy Day, Parks and Recreation Director Russ Willardson, Public Works Director Sam Johnson, Strategic Communications Director Jeff Jackson, RDA APPROVAL OF MINUTES OF SPECIAL MEETING HELD AUGUST 11, 2020 The Agency considered the Minutes of the Special Meeting held August 11, 2020. There were no changes, corrections or deletions. Mr. Fitisemanu moved to approve the Minutes of the Special Meeting held August 11, 2020. Mr. Huynh seconded the motion.  MINUTES OF RDA SPECIAL MEETING – AUGUST 25, 2020 -2- A voice vote was taken and all members voted in favor of the motion. RESOLUTION 20-11: AUTHORIZE THE AGENCY TO EXECUTE AN INCENTIVE AGREEMENT WITH WEST VALLEY INDUSTRIAL OWNER, LLC, A.K.A. SANSONE DEVELOPMENT Paul Isaac, Acting Chief Executive Officer, presented proposed Resolution 20-11 that would authorize the Agency to execute an Incentive Agreement with West Valley Industrial Owner, LLC, A.K.A. Sansone Development Written documentation previously provided to the Redevelopment Agency included information as follows: Sansone Development is a nationwide industrial real estate development company. Sansone is known for placing extra emphasis on the aesthetic appearance of its buildings as opposed to the past ways of building “industrial sheds.” Sansone is looking to develop two sizeable industrial buildings. Building 1 will be 206,800 SF in size while building 2 is 198,000 SF for a total of 404,800 SF. The capital investment of the core & shell alone totals $23,500,000. Additional tenant improvements for new tenants down the road will amount to another investment of $12-15M. Sansone Development acquired 24 acres of property located at 6941 S. 2100 S. to develop a flex industrial park to meet the high demand for fulfillment space. The property is located inside the Northwest Economic Development Area. In order to develop the site, Sansone Development will need to mitigate 12 feet of undocumented soil fill that has been dumped on the site over the years. The undocumented fill makes the site unstable and completely unfeasible for development. Sansone Development will need to spend $1.3M in order remediate the site and make it stable for development. The TIF incentive will help offset the heavy cost of remediating the site to make it developable. The amount of TIF generated by this project totals $2,900,000. This incentive is subject to meeting the performance terms of the agreement and totals $600,000, which is nearly 20% of total TIF generated by the project. The Redevelopment Agency worked with Sansome Development to select the site for development. Due to the development impediments created by the expenses associated with remediating the 12 feet of undocumented soil fill, the West Valley City RDA worked closely with Sansone Development to determine an incentive that would allow for the development to move forward. Councilmember Huynh asked if soil tests were conducted. Jeff replied yes. Chairman  MINUTES OF RDA SPECIAL MEETING – AUGUST 25, 2020 -3- Christensen asked if the applicant purchased the property knowing the soil issue. Jeff replied that they discovered the issue during their due diligence process and are waiting to close on the property contingent upon approval of this agreement. He indicated that the City wanted to assist because the company plans to bring in jobs and approximately 2.8 million dollars in the project area overall. He added that this is a great way to beautiful the area and noted that the payment would occur over 5 years. Mr. Bigelow stated that the City wants to assist on land that is unbuildable and 21% seems reasonable. He indicated that City staff does a good job and approving this will increase the revenue base of the City long-term. Upon inquiry by Chairman Christensen there were no further questions from members of the Agency, and he called for a motion. Mr. Buhler moved to approve Resolution 20-11. Mr. Huynh seconded the motion. A roll call vote was taken: Mr. Fitisemanu Yes Mr. Buhler Yes Mr. Huynh Yes Mr. Bigelow Yes Mr. Nordfelt Yes Chairman Christensen Yes Unanimous. RESOLUTION 20-12: APPROVE TWO AGREEMENTS WITH A-1 ENVIRONMENTAL, INC. TO CONDUCT REMEDIATION OF HAZARDOUS MATERIALS Paul Isaac, Acting Chief Executive Officer, presented proposed Resolution 20-12 that would approve two agreements with A-1 Environmental, Inc. to conduct remediation of hazardous materials. Written documentation previously provided to the Redevelopment Agency included information as follows: Upon engaging a demolition contractor, asbestos and other hazardous materials were discovered at 1739 and 1755 West Lake Park Drive. State and federal law require that such materials be removed and disposed safely and separately from  MINUTES OF RDA SPECIAL MEETING – AUGUST 25, 2020 -4- other demolition waste. These two agreements cover both properties and, upon completion of the work, the buildings can be fully demolished. State and federal regulations require asbestos mitigation to be done by contractors with a specialized certification and in accordance with DEQ requirements. A-1 holds that certification and will manage the federal and state compliance processes as part of the agreements. Mr. Bigelow stated that due to asbestos and other issues, the cost of demolishing is greatly increased. Upon inquiry by Chairman Christensen there were no further questions from members of the Agency, and he called for a motion. Mr. Bigelow moved to approve Resolution 20-12. Mr. Huynh seconded the motion. A roll call vote was taken: Mr. Fitisemanu Yes Mr. Buhler Yes Mr. Huynh Yes Mr. Bigelow Yes Mr. Nordfelt Yes Chairman Christensen Yes Unanimous. MOTION TO ADJOURN Upon motion by Mr. Huynh, all voted in favor to adjourn. THERE BEING NO FURTHER BUSINESS OF THE WEST VALLEY REDEVELOPMENT AGENCY THE SPECIAL MEETING OF TUESDAY, AUGUST 25, 2020, WAS ADJOURNED AT 7:03 P.M. BY CHAIRMAN CHRISTENSEN. I hereby certify the foregoing to be a true, accurate and complete record of the proceedings of the Special Meeting of the West Valley City Redevelopment Agency held Tuesday, August 25, 2020. MINUTES OF RDA SPECIAL MEETING – AUGUST 25, 2020 -5- ______________________________ Nichole Camac Secretary