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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