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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Jared Scarbrough, Acting Chief Capital Services Officer |
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PRESENTER(S): |
David Osborn, Acting Director of Capital Design & Construction |
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TITLE:
title
Contract: Memorandum of Understanding - S-Line Extension (Dee’s, Inc.)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve and authorize the Executive Director to execute a Memorandum of Understanding (MOU) with Dee’s, Inc. for the S-Line Extension project.
BACKGROUND:
UTA has been working collaboratively with Salt Lake City to extend the S-Line Streetcar from the existing end of the line at Fairmont Station (1040 East) to the heart of the Sugar House business district at Highland Drive. During project development, Dee’s, Inc. is amenable to extend the S-Line onto their property located on the southeast corner of Highland Drive and Simpson Avenue. UTA, Salt Lake City, and UDOT have worked collaboratively to advance the design and secure additional funding to support this extension.
DISCUSSION:
UTA and Dee’s seek an MOU to establish an end-of-line S-Line station which would extend onto the Dee’s property. The extension will be included and incorporated within the Dee’s Redevelopment Project. The key terms of this MOU include:
• An understanding that Dee’s will provide a 50-year ground lease for UTA to operate the S-Line Station.
• An understanding that UTA will pay Dee’s $2,300,000 for impacts to parking and for an operator break facility, which will be built into Dee’s development. (Note: This MOU is not a formal commitment to the funds, which will be provided in a subsequent agreement.)
• Agreement that UTA and Dee’s will work jointly on the design of both projects.
This MOU is not legally enforceable. It is meant to serve as a basis from which to construct a lease agreement and other agreements necessary to implement the Party’s vision for the Project.
CONTRACT SUMMARY:
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Contractor Name: |
Dee’s, Inc. |
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Contract Number: |
25-P00504 |
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Base Contract Effective Dates: |
10/2025 (effective on execution) |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
N/A |
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Procurement Method: |
Non-Procurement Agreement |
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Budget Authority: |
No funds obligated with this agreement |
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ALTERNATIVES:
UTA could choose an alternative agreement type.
FISCAL IMPACT:
This MOU has no direct fiscal impact. However, it does identify a potential future funding commitment of $2,300,000, which is anticipated in the approved 5-Year Capital Plan (MSP259). This expense, if subsequently approved, would be covered by funding from the Transit Transportation Investment Fund and the legislative appropriation allocated to the project.
ATTACHMENTS:
• Contract: Memorandum of Understanding - S-Line Extension (Dee’s, Inc.)