The Orem
City Council is set to approve and adopt a city ordinance Tuesday night in
preparation for the Community Development Project Area plan (CDA) for
University Place.
The
money, approximately $62 million, will help with a variety of infrastructure,
building and other necessities on and off site.
The CDA
will help with the redevelopment of 120 acres that will include the mall
proper, minus a portion of the former Mervyns wing. It covers 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.
The move
does not come without some caution and criticism, but according to city
officials all taxing agencies are on board. Orem is still waiting to hear from
the Alpine School District as to how much it will contribute. The city is set
to give $10 million over 22 years.
That
said, Mayor Richard Brunst has made it very clear this is not just a carte
blanche arrangement. There are benchmarks for Woodbury Corporation, which owns
University Place, 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."
"We're
not just taking money out of the bank and writing a check," said Steven
Downs, city spokesman.
Brunst
said the money would come only after Woodbury Corporation has proven itself.
That still doesn't sit well with folks like Councilman Hans Andersen, who
remembers the 1999 subsidy debacle over keeping ZCMI at and luring Nordstrom to
the mall. A two-year lawsuit ensued between John Price, owner of the Provo
Towne Center, and Woodbury.
Andersen,
who also has his own weekly radio show, is not happy about the CDA and has
campaigned hard against it. He has devoted many of his shows to the subject,
and has threatened to petition for a referendum.
He said
the city has spent too much time and money on the big guys, and has asked what
Orem will do to help keep established businesses from leaving or going under.
"There
are 2,533 business storefronts in Orem," Andersen said earlier this
summer. "What makes Woodbury any better than them?"
While
some businesses might feel cheated by the big boys, Downs said it is the big
boys that bring a large portion of the sales tax revenue to the city. That
sales tax revenue will be the money ultimately going to the little guys as the
city develops its new State Street Master Plan.
The
trickle down could include grants, projects and other options to spruce up
existing buildings and business, and help draw customers to them.
"This
is the same tool [CDA] that Lehi and other cities are using to bring businesses
like Adobe and Xactware to their cities," Downs said. "We want to
keep these businesses here. This will be a net benefit to the city."
City
Council meetings are open to the public. The next meeting will be held at 6
p.m. Tuesday in the City Council chambers at 50 N. State Street.
For a
complete look at the agenda items visit www.orem.org and click on "city
government."
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