Saturday, September 27, 2014

Orem CDA with University Place to move forward. Daily Herald. Sept. 23, 2014.

                                          Spenser Heaps.  Daily Herald.  University Mall construction.
                                         Spenser Heaps.  Daily Herald.  Construction on the University
                                              Mall.  Sept. 23, 2014.
The city council voted 5-1 Tuesday to adopt a Community Development Project Area Plan (CDA) to provide a tax credit for the redevelopment of University Mall.
Approximately $63 million will aid the redevelopment of infrastructure, building and other necessities.
The project includes 400,000 square feet of new retail space, 700,000 square feet of new office space, 1.25 million square feet of new multi-family residential space and 70,000 square feet of new hotel space.
Eighteen residents spoke against the ordinance during Tuesday's council meeting, saying it was unfair to provide a tax credit to some developing businesses and not others. Two residents spoke in support of the CDA, including former Orem mayor James Evans.
Becky Caldwell, who owns class-A office space in Orem, said she is concerned the development of new office space will negatively impact her business. The council said it hopes University Place office space will attract startup companies, because of big businesses such as Adobe, Xactware and doTerra, which have all recently relocated from Orem to northern Utah County.
 “I agree with both sides of the issue,” Caldwell said. “But I don’t agree with the equitability of it. I don’t see how they justify being unfair.”
Councilman Hans Andersen opposed the ordinance, and made 6,000 robocalls to Orem residents prior to the meeting. The call from Andersen said, “Hi, fellow Orem citizen. The Orem City Council will give the mall $63 million. That’s not right. Please sign the petition to stop the $63 million subsidy. Paid for by Hans Andersen, Orem City Council,” according to a resident who received the call. 
Councilwoman Margaret Black said she was concerned about the calls conducted by Andersen, calling them “simplistic, misleading and inflammatory.”
“I just want people to know the facts,” Black said. “(People) only got one piece of the information.”
Black said she encourages Orem residents to look at the information on Orem.org. The information was provided by an independent firm contracted by the city, which estimated that 2,500 jobs will be created with the development. The information online will be the same presented by the city in the meeting, she said.
While the total tax increment credit will be $63 million, Orem will pay only $9.6 million of that. The rest of the money will come from Utah County, the Central Utah Water Conservancy District, Orem Metropolitan Water District and the Alpine School District.
Members of the city council emphasized that the money is a post-performance tax increment subsidy, meaning the money will only come from property tax on new growth from the mall and surrounding developments, said Mayor Richard Brunst.
Councilman Andersen stood alone on the council in his opposition to the development.

“Orem has 2,533 storefronts in the city,” he said. “We are giving one business $63 million. If you’re a small business trying to compete with the big guy, what does that mean to you?”

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