Rio Grande Hotel Lease Amendment
At a glance
Based on auto-generated captions; names and details may be misheard.
- What: an amended lease for the Rio Grande Hotel at 428 West 300 South, which the Community Reinvestment Agency (CRA) bought in 2009 and leases for $1 a year to run income-targeted transitional shared housing (50 rooms).
- Where it stands: on October 13 the CRA board unanimously approved the lease amendment term sheet.
- Next: staff will work with attorneys to execute the documents. Staff owe the board a ballpark rent figure and a capital replacement plan.
What changes
- The operator changes from the original for-profit tenant to a new nonprofit its owner created (captioned "A Tall Order, Inc.").
- Four possible successive five-year extensions are added; the CRA is not required to take them.
- The room rent cap becomes up to 75 percent of the current rate for a studio apartment at 40 percent of area median income, replacing a confusing CPI-based formula. Residents pay about $510 a month now and can stay up to 18 months; staff said about 80 percent come from the prison system and 90 percent of leavers move to permanent housing.
- The CRA takes over property insurance, which doubled last year, and the tenant pays rent of 4 percent of annual revenue (reported through audited financials) instead of $1 a year.
- The CRA pays for guest-room finishes and 50 percent of common-area finishes (the operator pays the other 50 percent) and is responsible for the building envelope, foundation, roof and plumbing.
Board questions
- Funding for major repairs: staff cited a $500,000 allocation from the expired Depot District project area, used for foundation work, new plumbing and a boiler now being replaced. Future needs will likely come through the annual budget from affordable housing funds; staff expect the property to be a liability rather than a revenue source.
- Members asked for an estimate of coming capital needs (staff are getting architect estimates for a capital replacement plan), protection against neglect (the 50 percent cost share and regular inspections), and a ballpark dollar rent for the public (staff will follow up).
Sources
- 2026-10-13 - Community Reinvestment Agency
- https://slc.primegov.com/Portal/Meeting?meetingTemplateId=1267
Discussion time
About 17 minutes across 1 meeting (from transcript timestamps; approximate).
| Meeting | Minutes |
|---|---|
| 2026-10-13 - Community Reinvestment Agency | 17 |
Log
- 2026-10-13 - Community Reinvestment Agency - Briefing on the lease amendment term sheet; Puy moved and Napier-Pearce seconded; approved unanimously.