Park City
UT

Agenda Item
2577

Consideration to Approve a Letter of Intent Between Park City Municipal Corporation and the Kimball Art Center, Dated July 6, 2017, in a Form Approved by the City Attorney

Information

Department:BudgetSponsors:
Category:New BusinessFunctions:Agreement, Contract, Litigation, Public Hearing, Purchase

Attachments

  1. Arts and Culture - Sundance & Kimball Report 7-13-17 (This file has not yet been converted to a viewable format)
  2. A - Lodging Comparison
  3. LOI KAC_Signed_07-07-17

Report Body

City Council should consider the following proposal to buy the Bonanza Park East property for $19.5 million for the purpose of creating the Park City Arts and Culture District. Council should review and adopt the attached Letters of Intent between Park City Municipal Corporation and Kimball Arts Center, and Park City Municipal Corporation and the Sundance Institute for the purposed of jointly planning and developing the Park City Arts and Culture District with the intention that both Kimball Art Center and Sundance Institute become primary owners in the District. Kimball Art Center and Sundance Institute will fund and own their own land and construction of their own facilities in the District. City Council should adopt the Municipal Transient Room Tax, a one-percent tax on all overnight lodging, which will allow the first collection of the tax on January 1, 2018. Adoption of the tax at this time will allow the City to issue Sales Revenue Bonds sufficient to close on the property by no later than January 31, 2018 and begin the joint planning process in July. The City will use the Municipal Transient Room Tax to further develop City owned property in the Arts and Culture District, which supports and promotes the Districts intended uses of arts and culture.

 

This item will consider the Kimball Art Center Letter of Intent.

Meeting History

Jul 13, 2017 6:00 PM Audio City Council Regular Meeting
draft Draft

Nate Rockwood presented. Foster noted Betsy wallace and others were here but had a conflict and could not stay.

Rockwood stated his presentation included the four items on the agenda. He explained the City was entering into a purchase agreement to buy the Bonanza Park East parcel for the purpose of creating an Arts and Culture District. The letters of intent that were attached showed their part in the purchase of this property. He indicated Sundance Institute would build a 45k sq ft building with an exhibition space and theatre. KAC build 30-40k sq ft for office and gallery spaces. City would add additional space that would facilitate the space and would include the infrastructure, parking lots, etc. The City proposed a 1% TRT which was the maximum allowed by the city code and would be paid for by guests to Park City. The tax would be implemented on January 1st. It would close on the property January 31st. Then it would enter a joint planning process with Sundance and KAC to create the Arts and Culture District. Sundance and KAC would each purchase the property of the building footprints.

Henney asked what acreage would be purchased by KAC and Sundance. Rockwood estimated each entity would purchase just over an acre each.

Beerman asked if there would be an HOA type of organization formed to govern maintenance. Rockwood stated The dedicated parking would be maintained by the City, as well as walkways.

Worel asked the timeline for completion. Rockwood felt the planning process would be complete within a year and the groundbreaking in 2019-2020.

Mayor opened the public hearing.

Josh Hobson was happy for this district. He expressed concern on public access across Bonanza Drive.

Patrick Fannon, 2 businesses in the Bonanza Park District, stated there were other businesses there and he hoped a good resolution could be had between the city and the businesses there.

Greg represented PCALA Board, he applauded the vision to create such a district and to have a relationship with Sundance. The lodging association was aligned with the project and would like to have a partner role. They had a few recommendations. The timing of the contract and bonding was a concern since lodging would have already collected millions and would have to go back to retroactively collect that tax. Also, make sure there was a long term commitment from Sundance. Also, have a commitment for the allocation of the money to ensure that the entity being taxed had representation. They would like a portion of the money collected could be allocated to the benefit of the lodging community. He was concerned with the 3% TRT the County imposed and didn't know if they would be increasing as well. He commended the City staff for the open dialogue.

Closed public hearing.

Move 3456 to July 20

Henney indicated that the City was aware of the local businesses in the district and this was an opportunity to deliver what the community wanted.

RESULT:TABLED [UNANIMOUS]Next: 7/20/2017 6:00 PM
MOVER:Becca Gerber, Council Member
SECONDER:Andy Beerman, Council Member
AYES:Nann Worel, Becca Gerber, Andy Beerman, Tim Henney

Discussion