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TO: |
Board of Trustees |
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FROM: |
Jon Larsen, Chief Capital Services Officer |
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PRESENTER(S): |
David Osborn, Acting Director of Capital Services |
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Ethan Ray, Project Manager II |
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TITLE:
title
R2026-04-02 - Authorizing Execution of an Interlocal Cooperation Agreement with Salt Lake City Corporation and the Salt Lake City Community Reinvestment Agency for the S-Line Extension
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2026-04-02 authorizing execution of an Interlocal Cooperation Agreement (ILA) with Salt Lake City Corporation and the Salt Lake City Community Reinvestment Agency (CRA) for the S-Line Extension as presented.
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. This project will help support economic development and serve the growing population of Sugar House by providing an improved connection to Sugar House. The project has included close coordination with the CRA, who owns property adjacent to the project. The Utah Department of Transportation (UDOT) has also been a collaborator on this project due to the State funding contribution. The Salt Lake City Council approved this ILA on March 24, 2026.
DISCUSSION:
This Interlocal Cooperation Agreement includes the terms and conditions for the implementation of the S-Line Extension project. The agreement addresses the alignment and use of Salt Lake City Streets for the project. It also identifies the terms for the operations and maintenance of the S-Line Extension project. Salt Lake City will be providing UTA license to construct, operate and maintain the project in the City right-of-way and property. The license will have an initial term concluding on December 31, 2060. The term may automatically renew for an additional term of twenty-five (25) years unless either party provides notice at least one hundred and eighty (180) days prior to the expiration of the initial term that it does not intend to renew the agreement. The agreement also outlines Salt Lake City’s contribution of $395,000 to the project.
ALTERNATIVES:
An agreement is needed with Salt Lake City and CRA to advance the S-Line Extension project. If desired, UTA could pursue a different type of agreement(s), however doing so would cause delays to the project implementation.
FISCAL IMPACT:
The total project cost is $43,567,129. In 2021, the State of Utah contributed $12,000,000 through House Bill 433 to fund the project’s design phase. The project has since been awarded and secured an additional $18,900,000 in State Transit Transportation Investment Fund (TTIF) funding.
As part of the TTIF award, a required local match of $12,310,000 will be met through multiple sources, including a Salt Lake City property donation valued at $5,140,070 and a UTA in‑kind contribution of a light rail vehicle (rehabilitation of vehicle 1137) valued at $2,530,000. Additional local funding includes contributions from UTA ($3,750,000 - Funding is included in the 2026 Approved Capital Budget (MSP259)), Salt Lake City ($395,000), and the Salt Lake City Community Reinvestment Agency ($852,059). The available sources of match ($12,667,129) exceed the minimum required amount.
TTIF funding and match were approved by the Board on March 11, 2026. Please note there were minor adjustments to the match amounts from Salt Lake City and Community Reinvestment Agency following the March 11th Board meeting, which increased the overall available funding by $32,000.
ATTACHMENTS:
• R2026-04-02 Authorizing Execution of ILA with Salt Lake City and the Salt Lake City Community Reinvestment Agency for the S-Line Extension, including Exhibit A: 26-P00547 Sugar House Streetcar Extension Interlocal Agreement (with Exhibits A & B)