$63 million tax break given to Orem's University Mall developer. Nadia Crow. Good4Utah.

OREM, Utah (ABC 4 Utah) – A developer will spend $500 million to expand University Mall in Orem. The expansion will be called "University Place" and will have retail, commercial, and residential space much like Salt Lake’s “City Creek Mall.

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While almost everyone agrees this mall needs an upgrade, the big question is funding.

Just last night, Orem City Council voted 5-1 to approve a $63 million tax incentive to give to the developer. This side of the mall seems very inviting with shops and people, but on the other side.

“we have a parking lot falling apart that's full of weeds, a building that's been empty for six years, it doesn't have to be this way,” said Orem Assistant City Manager Steven Downs.



That's why construction is on the way to re-develop.  Check out these drawings of University Place.  New retail stores, fountain and public space, commercial buildings, and an apartment complex.

 ”A place where people can come and gather and enjoy the park, bad fountains, and buy food and enjoy shopping,” said Downs.

  The developer will put $500 million into the mall.  The city and county would provide $63 million in tax breaks.

  “That money that Woodbury was going to receive as an incentive doesn't exist yet.  It would only exist as property taxes go up.  So the city of Orem and the businesses of Orem will see no increase in their property tax,” said Downs.



But one council member doesn't think any tax dollars should fund it.

 “The mall is the wealthiest landlord in the city.  Why should we give the wealthiest landlord a 75% discount on their property taxes for 20 years?” said City Council Member Hans Anderson.  

City Council Member Hans Anderson voted against the tax break.  He feels that way largely because the Alpine School District will provide the majority of the tax break at $44 out of $63 million.

 “What they're going to give the mall here, Alpine School District, would build four of those schools,” said Anderson. 

But the project is moving forward despite those concerns. 

The RC Wiley, apartments, and some of the new restaurants will be finished by spring 2015.  As far as the mall expansion, green space, and fountain area, there's not timeline until all city and county entities determine tax incentives. 



Nordstrom moved out of the mall back in 2012 saying Orem didn't have the right population for its high-end product. The assistant city manager says it’s up to the developer to ensure diversity in stores for the city's unique population.

Nadia Crow. Good4Utah.