University Mall Tax subsidy paid by Orem, Utah County, Alpine School district; Central Water Conservancy District, and the Metropolitan Water Board.

Much has changed in Utah State Law on how cities can offer tax increment incentives to businesses.

The Woodbury CDA

"Last year the city council approved a rezone of the area that is proposed to be included in a new University Place Community Development Project Area," said Brenn Bybee, assistant city manager. "Since the rezone of the University Place area, Woodbury Corporation began meeting with city officials about the prospect of creating a new CDA associated with this area."

"This CDA isn't benefiting any one business but the whole area," said Mayor Richard Brunst.  "This is not about incentivizing a particular tenant. It's about infrastructure, a park, roads, and parking facilities."

Some common uses of CDA funds include; providing funds to upgrade private and public facilities, funding infrastructure improvements, purchasing land, providing development incentives, pledging funds to repay or secure bonds, etc.

"Each project area type is envisioned to address specific sets of circumstances and thus have different nuances, purposes, and abilities," Bybee said. "The University Place CDA plan and budget would identify the details associated with any potential tax increment financing that might be used to replace, expand or improve the infrastructure that directly benefits its particular project area."

Kathy Olson of Woodbury said the job creation through this project will be a great benefit to the area. Without the CDA, Woodbury would be building one office building, but with the CDA it plans on five. It's estimated that this will create about 8,000 jobs during the construction of the project and about 4,000 jobs from the companies that locate to University Place.

Brunst is very clear on the benchmarks for Woodbury to get the money. It is a post-performance property tax increment subsidy.

"This is a 22-year CDA. The money will only come from property tax on new growth and if they perform." Brunst said. "This will lift all the boats. It is a post-performance tax credit. We're not spending any money."

Andersen said the city has spent too much time and money on the big guys and has asked what they will do help keep established businesses from leaving or going under.

"There are 2,533 business store fronts in Orem," Andersen said. He said he wants to know what makes Woodbury any better than them.

Davidson said that Andersen shouldn't be confused about the money or how it is used. He has received the same information the mayor has.

"The mall is the goose that produces the eggs," Davidson said. "If you don't feed the goose, it won't produce the eggs."

On July 22 the RDA passed funding, to the tune of $35,000, for the budget to make a plan, budget, and time table. Woodbury will reimburse the funding.

"No decisions have been made," Davidson said. "We have decided to explore its potential. Before the city council takes action there is a public comment time. It will be at least October before a vote would be taken."

"We have been very transparent with the public." Brunst said. "We've been elected to study these issues in an open and public meeting."

Davidson said, "In the 1990s the option to do what we're doing didn't exist. It's a reimbursement agreeing to build all the infrastructure. Woodbury will receive reimbursement over time. It is dependent on the mall performing. It's not free money, nor are we taking money from the residents."

There are five taxing entities involved, Orem, Utah County, Alpine School district; Central Water Conservancy District, and the Metropolitan Water Board. Orem would only be required to give 15 percent of the whole amount.

The total amount has yet to be determined. The city is waiting to hear from the last taxing entity, the Alpine School District. They have agreed to the project buy have yet to say what they are going to offer.

Orem city must have a time for resident comments. That is the same for all of the taxing entities. 

"A similar process must go forward through all these entities," Davidson said. "It's been a public process all along the way. Woodbury has been a wonderful partner with Orem for years. We're grateful for the company. They want to see the city progress as much as we do. 

"We would not be good leaders if we did not invest in the future," Brunst said. "Back in December I said I believe in the mall and what they are doing."

From all that Brunst has voiced since December that belief has not changed, but gotten stronger.

Genelle Pugmire. The Daily Herald.