Start Position
Chair Fullmer called the meeting to order at38 PM.              PRESENTATIONS/RECOGNITIONS/AWARDS/PROCLAMATIONS1.         RDAUpdate RDA Director Josh Daniels will give an update on the RDA including Megaplex and Topgolf distributions.
Mr. Danielsgave an overview of how an RDA works and gave a breakdown of the General fund budget increase over the last years. Board member Sifuentes asked if the RDA dealt with sales tax. Mr. Daniels replied that it was mainly property tax. Mr. Daniels continued his review.
Mr. Daniels reviewed the tax revenue payouts by projects. He noted that The Yard and Topgolf initial reimbursements would be paid out this fiscal year. He also noted that the amount paid each year could vary with the revenue generated. He reviewed the accumulated totals for these areas.
Board member Holdaway commented that the RDA was to serve the people and their interests. He felt this was a carrot that the RDA could use to hold people accountable. He wanted to know if they could amend the plan if the people did not want certain incentives. He asked about using funds towards cleanup. Mr. Blakesley replied that all decisions were up to the RDA board. He felt that Mr. Daniels had done a good job of explaining the RDA. He mentioned that the state had changed the incentives that were allowed. He explained that the property values and sales tax revenues had increased because of the amenities in The Yard area. Mr. Ellis explained that all new commercial developments would still generate sales tax revenue, but they could not use incentives to bring in amenities. Mr. Daniels explained that sales tax revenue was protected as proprietary information. He added that they could still offer an incentive through infrastructure reimbursement.
Board member Holdaway asked when the board would discuss strategies. Mr. Daniels replied that the bulk of the RDA funds were already being used. A discussion ensued. Chair Fullmer explained the process of incentivizing developments. The discussion continued. Board member Sifuentes felt it would be helpful to know the current agreements.              CONSENTITEMS1.         Approval of March,24, RDA MeetingMinutes
Chair Fullmer called for a motion.
Motion: BOARD MEMBER RASMUSSEN MOVED TO APPROVE THE CONSENT ITEM AS PRESENTED. BOARD MEMBER CAMERON SECONDED THE MOTION. CHAIR FULLMER, BOARD MEMBERS CAMERON, HOLDAWAY, RASMUSSEN, AND SIFUENTES VOTED YES. THE MOTION CARRIED UNANIMOUSLY.              BUSINESSITEMS1.         Edge Homes DisbursementApproval
Mr. Brim reviewed the agreement and the request for disbursement.
Board member Camron asked about the other payments. Mr. Blakesley explained the reimbursement schedule.
Motion: BOARD MEMBER HOLDAWAY MOVED THAT THE RDA APPROVE THE REIMBURSEMENT REQUEST BY EDGE HOMES, LLC FOR $129,463.40 FOR WORK COMPLETED FOR0 WEST AND LOOP ROAD EXTENSIONS. BOARD MEMBER RASMUSSEN SECONDED THE MOTION. ROLL CALL WENT AS FOLLOWS: CHAIR FULLMER, BOARD MEMBERS CAMERON, HOLDAWAY, RASMUSSEN, AND SIFUENTES VOTED YES. THE MOTION CARRIED UNANIMOUSLY.              ADJOURNMENT Chair Fullmer adjourned the meeting at:10 pm.   MINUTES APPROVED ON:    April,24   CERTIFIED CORRECT BY:   Pamela Spencer, CIty Recorder
They were rolling. All right, we're going to go ahead and get the Redevelopment Agency board meeting started. It's March 27, 2024. 00:00:00
The time is 6:00 PM to start. Just just joking. I'm, I'm reminding, I wish it was 6:00 PM, but it's almost 10, so let's be 00:00:08
vigilant of the time, all right? It's 'cause I, I think I have the wrong thing. OK, we'll go ahead and start out with our 00:00:15
presentations and. 00:00:22
We're first. We're going to get an update. 00:00:30
And. 00:00:33
Josh, I don't exactly know how to explain what you're about to do, but it's the update and presentation we've all been waiting 00:00:35
for, right? And that's where we're starting. No pressure, no pressure, but you always knock things out of the park, so you got 00:00:40
this. 00:00:45
Yes, thanks, Mayor, Members of the board, Josh Daniels from the RDA. So here's a few things we're going to review. 00:00:50
First of all. 00:01:02
RDA big picture, just as a recap and I know some of you are new and so we haven't talked a lot about, we haven't gotten into a lot 00:01:05
of the RDA details and how it works. We did go over that a little bit at the. 00:01:11
At the board retreat. 00:01:18
OK, there we go. Um. 00:01:23
So one of the things that's the, the advantage of the RDA is it gives the city the opportunity to participate in sort of a 00:01:25
coordinated redevelopment of previously blighted piece of real estate. But what happens is you, you end up with the RDA with the 00:01:33
tax increment financing, you're basically incentivizing private investment to come in and take some of the front end risk to 00:01:41
accelerate the implementation and, and, and construction. 00:01:49
Of a variety of public facilities and infrastructure that can help to accelerate the redevelopment of an area that would otherwise 00:01:57
not develop very quickly. And so this is the, This is why there's a base value and an incremental value. So what happens is that 00:02:05
as as an A blighted area grows quickly, it also will grow in value quickly, which then will yield higher property tax revenues 00:02:12
above and beyond what it would have yielded. 00:02:20
Had there not been any real focused redevelopment efforts, but in addition to the increased values, which also will increase 00:02:27
property tax revenues, there are also extraneous additional positive economic impacts to the city sales tax, for example, job 00:02:35
creation and other opportunities for advantages to the city like amenities and and things like that. So for the Geneva urban 00:02:43
renewal area, the base value was set in 2006. 00:02:51
And what happens is anything above and beyond that base value that is assessed taxable value in the future, 75% of the tax revenue 00:02:59
of that additional or incremental value is is generated as the as the increment that comes back to the RDA, which can then be used 00:03:06
for these projects related to redevelopment, oftentimes under a reimbursement agreement with various developers sort of fronting 00:03:14
the cost of those projects and then being being reimbursed. 00:03:21
I'm going to share a chart of taxable property values from the top 50 taxpayers, which will be interesting. So this is the model I 00:03:30
just described. You've seen this before. This is how tax increment financing is supposed to work. You have the base that you can 00:03:38
see in black and above that is the green. And of course all the value that is green is incremental value. But the tax revenues 00:03:46
from 25% of that value still go to the existing taxing entities, the city, the school district, the county, the water district. 00:03:54
Et cetera. And then 75% represented by the dark green goes to the RDA and that's the increment that is able to be used for tax 00:04:02
increment financing or TIF payments for those projects. So I've also shared this before. This is the existing Geneva project area. 00:04:08
These are the assessed values over time for the history of the project with the base value in blue and the total value in red. And 00:04:14
the difference between the red and the blue there, that's red is, is the incremental value. And this is this is based on real 00:04:21
data. 00:04:27
In the Geneva urban renewal area. So now this is all the value across the entire area. What's interesting is to look at just the 00:04:33
values of the top single, top 50 property taxpayers who have the highest value. A lot of these are large commercial entities and 00:04:43
and large developments or or really large land owners. I'm not going to list them out. That's somewhat protected data. 00:04:53
But it's kind of proprietary, but I've got a sum, this is the sum of taxable values of the property over time of just the top 50 00:05:04
taxpayers. And so you can see how that matches fairly the the rise in values. And what this is showing is that if you go back ten 00:05:12
years, your highest property tax values, any one property wasn't worth that much because there wasn't these larger developments or 00:05:21
larger commercial projects that were occurring. 00:05:29
And as you see those larger commercial projects, you see a real rise in that total value from the very top. 00:05:38
So an important thing for the board to consider going forward is that the RDA is a tool for economic development as much as it is 00:05:48
a vehicle to redevelop a site. And so there is a lot of opportunity for the city to get a lot of value in a variety of ways out of 00:05:55
the process of redevelopment. Because the RDA can utilize these funds for investing in infrastructure and other sorts of things, 00:06:03
it gives them the opportunity to create additional benefits. 00:06:11
So as you think about a strategy for how the RDA should focus its reimbursement agreements, you might think about some of these 00:06:19
potential benefits. So faster development of critical infrastructure, better mix of revenue types. So thinking about sales tax 00:06:26
revenues, if you can bring in a large sales tax generating entity or you know retail or something like that, that helps to 00:06:34
diversify. 00:06:41
Your revenue types in the city, which can be which can be really good and it can also sort of shift some of that tax burden from 00:06:49
the residential property taxpayers to sort of subsidized your city budget from economic activity in the city. There's additional 00:06:56
benefits like workforce as you bring in job creators or you know, large employers, educational opportunities, and you're already 00:07:02
maximizing some of this with partnerships with universities. And then of course there's amenities and quality of life which are 00:07:09
important to the the residents. 00:07:16
Now and in the future, so as we develop a strategy for investing and this is going to be a primary part of of what I'm going to 00:07:23
help you to do, I think Vineyard needs to think about how do we get the most bang for our TIFF buck. 00:07:29
So also looking at the city's general fund budget over the last 10 years, this is the breakdown of general fund tax revenues to 00:07:38
the city that are a share of property versus a share of sales. And what you see is a real dramatic increase in sales tax revenue. 00:07:45
I think a lot of this can be attributed to sort of a critical mass as you bring in retailers and other kinds of operations that 00:07:53
collect sales tax. 00:08:00
And also not to forget, you know the online sales that all of your residents also engage in. 00:08:07
And if I don't have the number actually on the chart, but it's almost 5050, which is pretty impressive. 00:08:17
So although this doesn't include RDA tax revenue, so that would be in the future, you'd have somewhat of a windfall of property 00:08:25
tax revenue as the increment period expires and and then you start to receive all of those property tax revenues. So just to 00:08:32
clarify, to make sure I have it right, we don't the RDA doesn't deal in sales tax, just property, correct? 00:08:39
Correct. 00:08:47
Property only, not, yeah, property tax. I think there are some other special programs where sales can be an element of it, but 00:08:49
those are very narrow and specific. But generally for this RDA for the entire renewal area, it's, it's property tax increment 00:08:54
financing. 00:09:00
Something important to just keep in mind as real, real quick if it's just property tax, then why is it so hard to calculate Top 00:09:09
Golf and. 00:09:13
Megaplex. I don't get it. 00:09:19
It's not. I've got some numbers I'll share with you. So it's just the property values of those particular parcels. Yeah, yeah. 00:09:21
So something to note about the financial position of the RDA in, in year 2023 there was a reduction kind of a somewhat significant 00:09:30
reduction in revenue because of a one time event that you you may be aware of and if not then you know this is kind of your 00:09:36
update. So Pacific Corp or Rocky Mountain Power, the generation plant that's located in Vineyard is a sizable piece of valued real 00:09:43
estate largely because of the centrally assessed business personal property associated with that plant. So that's all the 00:09:50
equipment. 00:09:57
And what that means is that it's not just the property and the buildings, it's the really expensive equipment that is used to 00:10:04
generate electricity that is also valued real estate property. And there's a property tax paid on that value of equipment. But 00:10:12
that's assessed by the state, not by the county. The county doesn't value it, the state does. So it's called centrally assessed. 00:10:19
But Rocky Mountain Power appealed their valuation. 00:10:26
And one in their appeal, it was a settlement and the tax Commission ordered basically a retroactive rebate for five years worth of 00:10:34
property taxes based on the reduced values that they were granted. So it created, so the payout was a one year payout. So 23 is 00:10:42
the one year. And then in the future things will be kind of normal again. So that's why, for example, in that chart, you saw a 00:10:50
little bite out of the chart where it went down. That's that, that's why. 00:10:57
So that was a question that kind of came up and we got some clarification on that. So I want to make sure you're basically aware 00:11:05
of that one detail. 00:11:09
This is looking at total RDA increment revenues by year. So these are, these are the revenues generated by the 75% tax increment 00:11:14
financing. That's that's you know available for reimbursements. So that's the that's kind of the chart over time. The reason you 00:11:21
see that drop there at the end is because of that, that valuation adjustment. And it's not that going forward you're going to see 00:11:28
that lower amount, it's that in one year. 00:11:36
A big chunk of the revenue was taken out and rebated to Rocky Mountain Power. And so we ended up in some cases with what's called 00:11:43
a negative redemption. So normally what happens is people pay their taxes really late, let's say some of them, and you end up with 00:11:51
more revenue, but it goes into the next year. In this case, it was kind of like a retroactive bite out of your revenue, so. 00:11:58
OK. Now, now to the to the point that that that was brought up a moment ago. So looking at the tax increment finance payouts by 00:12:08
project over the history of the RDA, so the last 12 years. 00:12:15
These are the major named projects that have received TIF payments and so, and this is the, this is the cumulative total of all 00:12:23
TIF payments to date through the end of the last fiscal year. 00:12:31
Ending in 2023. 00:12:39
So now if you look at the revenue to the RDA over the same time period, it was $76 million total. And then if you look at those 00:12:41
payouts for TIF payments, you have 43,000,000 total. There was also 44 million that was paid out in capital projects, 44,000,044 00:12:49
million, Yeah, so 44 million and change on capital projects. And then down below you can see the breakout on a project by project 00:12:56
basis of 43 million. 00:13:03
For those. 00:13:11
Five kind of, well, four major, well really three major projects and some additional activities that kind of happen under the 00:13:12
umbrella of other actual project expenditures and developer support. 00:13:19
So water's edge, just to note, water's edge, it's pretty sizable, but that's because there was the sort of final payout in 2022 of 00:13:27
a lump sum of 24 and a half million. 00:13:32
So to your question about Megaplex, for example, on the Megaplex project to date $2.8 million has been paid out in TIF 00:13:38
reimbursements for that project and 5.3 million on on UVU. Now in terms of the the Top Golf or the yard project, that's on the 00:13:46
next slide. That has not been paid out in the last fiscal year. It's being paid out now. So it's not in any of the annual budget 00:13:53
reports. It's sort of an ongoing thing. 00:14:01
So this year is the year that those parcels will be triggered for tax increment financing per the contract with the developer. The 00:14:09
city once the contractor performs is required to do an initial payment of 950,000 dollars. 500,000 of that has already been paid 00:14:17
out. There'll be another 450 that will be paid out. So that this year you'll see that initial 950 and then there'll be an 00:14:26
additional over the next 12 years maximum of. 00:14:34
Well, it's contractual, so it's not really a maximum, it's just a contractual amount of a little over $4 million. So All in all, 00:14:43
it'll be just under 5 million over the course of the 12 years. And, and again, it's, it's like many of the other agreements, it's 00:14:50
a reimbursement agreement and you know the amount you pay every year might vary a little bit depending on the revenues, but the, 00:14:57
but you're obliged to pay up to the 4 million over the course of the 12 years. 00:15:05
And this one, Josh, this one has to do with the 500,000 already paid. 00:15:13
You're counting that for the yard because it's serviced a broad area, is that right? Yeah. So yeah, I kind of combined both 00:15:19
agreements in this slide, but there are two different agreements that together yield this total amount. But the two agreements 00:15:28
operate similarly, but but also slightly different. One agreement has the 500,000 payout, the other one has 451. Agreement has a 00:15:36
certain amount that's a cap of of I, I forget the number, it's about 780,000. 00:15:44
And the other one has a cap of just over 4 million. So this is the cumulative total of of both of those agreements that are 00:15:53
related to that entire area. 00:15:57
Any questions? Sorry, it's a lot of detail and information, but any questions from the board so far? 00:16:05
No questions, just a comment in that the RDA is supposed to serve the people and the people's interests of if they do or do not 00:16:16
want that improvement of like what is desirable. And we all have different ideas, obviously. And I think we come from a council 00:16:23
that's been while growth and growth and everything and what we attract and everything, this is kind of a carrot that we have to 00:16:30
say, hey, is this the type of growth we want and it's something that we can hold people accountable. 00:16:38
Or we can use it to attract things that we want and say, yeah, for something like that, it's not something that the citizens would 00:16:46
want. You know, obviously in the last election, it's like Utah City. It's like, wow, there was a resounding voice that's like, so 00:16:54
should they get that if the citizens don't want it, you know, can can we use that to adjust the plan to say, hey, is this 00:17:01
something that we could do to improve the plan of, of what citizens? 00:17:08
Would like I remember Mayor Farnsworth originally putting in megaplex as the anchor, right? And it was, hey, we're going to give 00:17:16
it to here and everything else will come. And then it it's kind of more more and we're essentially located city right in in the 00:17:24
county. It's this is there's prime real estate right here where people come. And what what I think has happened is it's drug on of 00:17:32
like we're going to continue on and and it's come to an expected of everybody gets this. 00:17:41
And I think I don't want to assume that me just speaking for me that all growth is good and that all carrots should be given is 00:17:49
what I would say. Like I think we need to word it as a. 00:17:55
You know, this isn't a given cleanup is right. I think do we have obligations towards that? Is it Jamie, clean up is required, 00:18:02
right or is that still on a case by case basis for the RDA? 00:18:08
Are we contractually obligated to? 00:18:17
All the initial decisions made by the RDA board are discretionary. You're not obligated to make any of those choices any 00:18:21
additional more. I think what Josh has done a really nice job of presenting to you tonight is kind of the overall framework of 00:18:29
what the base valuation is, what percentages go to the RDA, what percentages go to general fund and to the other taxing entities. 00:18:36
And then of the RDA revenues available, what commitments have been made to date and you know there you there may remain RDA funds 00:18:45
that you all get to decide how you want to program them some of the choices that the City made for. 00:18:53
The RDA money is already committed are not choices available to the board today because state laws changed right. So it used to be 00:19:02
that we could give retail incentives and cities would compete with each other to try to draw things like Top golf that are 00:19:11
destination entertainment venues. So the state doesn't allow that anymore correct. But I'm but I think the fact that. 00:19:20
But I have no financial interest whatsoever in Top Golf. But you have two of them in the state and I know that people for events 00:19:30
will plan it around being able to go to that location. So you have created. 00:19:36
I appreciate that. 00:19:43
But it is right and so. 00:19:51
Your sales tax revenues and property values in this area changed because you have that there. And so that was the choice the RDA 00:19:55
board have made at that time to create some value in that property. And Josh has done a great job about learning what that value 00:20:04
is. But you have more RDA resources available in the overall project area as a result of those improved property values. 00:20:13
And you certainly have more money in your general fund. 00:20:23
Because of the self taxed revenues, property tax revenues are entirely public if you request sales tax information that is 00:20:26
protected as proprietary information. 00:20:33
So the sales tax on these old ones Megaplex and topped off our revenue streams, but moving forward, we won't have any newer 00:20:39
correct 10, yeah. 00:20:44
They're not RDA revenue streams, they're correct. Yeah, but they are sales tax revenue streams. But are they getting a discount on 00:20:52
the sale? They're not getting discount on the sales, though, no. There's no tax benefit associated with sales tax revenue. 00:20:59
All new commercial is going to produce additional sales tax revenue streams. We simply can't use RDA dollars to incentivize 00:21:09
currently for new new commercial entities to come into the city. 00:21:16
At least not in the incentive format. That's right. That's a helpful clarification. And the broader point I was trying to make was 00:21:24
in the regional economic picture. 00:21:30
Using the RDA money to create that regional draw. 00:21:36
Is a benefit both to the property tax streams and those revenues that the city enjoys and needs. 00:21:40
And to the sales tax revenue? 00:21:49
Yep. And the privacy on the sales tax, just to be clear, you have access to macro level sales tax data for the city as a whole. 00:21:51
But obviously it would just be very problematic in a business marketplace to sort of know how much sales tax megaplex was 00:21:58
producing or Chili's or right, that's what's protected. 00:22:05
And into the sales tax piece, you know, you can't incentivize a business to come to Vineyard, but what you can do is offer the 00:22:14
opportunity for a reimbursement. 00:22:19
Of certain expenses related to construction of infrastructure and that's kind of where you've really used the RDA well to date is 00:22:24
that you found ways to reimburse these developers for their investment in front fronting the city the development and payment for 00:22:33
needed infrastructure that then helps the developer because now people can access and and enjoy the other private elements of 00:22:41
those developments right and so that's where you can you know use the RDA as a tool to attract. 00:22:50
Development, commercial development, you just can't hand them money because they're going to bring yourself tax revenue. So being 00:22:59
that we have a new council, when are we going to talk about because there is an adjustment in how we feel. I mean, I guess I don't 00:23:05
know, I've never voted with the three of you or four of you. And so when do we talk about if there is an adjustment in strategy 00:23:11
and defining that strategy of what, what it is? I mean it's obviously been one way for the for years prior. So now that there's 00:23:17
been an election. 00:23:23
Well, one, one thing to consider is that a bulk of a really large bulk of the work of the RDA to date and long into the future is 00:23:29
covered by a number of existing agreements that have been signed and will be operable on the city until the expiration of the 00:23:37
right. Yeah, I'm just saying on the new land parcels like 800 N, 1600 N on those parcels. 00:23:45
They're going to come in application each application, so do they just come in and say. 00:23:55
Well, I don't want to waste someone's time. So like is it important that we as an RDA council develop what are what is what we 00:24:33
would agree so we don't waste their time? Is is that. Yeah, that makes sense and I think. 00:24:40
We set the priorities as the city and then what happens is we implement the RDA according to the priorities that you vote on as 00:24:47
the city. And Josh will go out and he will compare our RDA agreements, learn about the best processes and then when and he'll go 00:24:54
and, you know, meet with companies. 00:25:00
With Morgan and everybody else to try to attract things here and then when they make a. 00:25:07
Pitch to the RDA board. If those fit what you like, then this team will get together and say here are all of your options. This is 00:25:14
what you don't like. And if you don't like that trajectory, then inside of our City Council, you would reset those priorities. 00:25:20
Well, that that's what I think we should be proactively doing is looking at over some of those things and saying, you know, these 00:25:26
are some things we would attract, you know, like some of the parking complexes are things that I saw in December. It was like, 00:25:33
whoa. 00:25:39
I don't agree with that, but nobody's asked me about that. And I don't know if you're counting up votes on like the board of like 00:25:45
where people stand or whatever, but I'd also be like to pitch if I'm wrong, like I don't, I'm open minded to say maybe the 00:25:53
parking, you know, some of the things that were in the forge, but I we're not having those discussions. I'm trying to learn like 00:26:00
how do I is there a change in philosophy and when how's that going to happen? What's that problem? 00:26:07
Then they'll come and say this is what we're specifically asking for and that's where you set your priorities and say no, I don't 00:26:46
really want to look towards this, I'm not really interested in this particular, you know, investing that way. And then he'll 00:26:52
compare them and show you what other Rdas have done around. Yeah, I mean, obviously mine in terms of density, we can't control 00:26:58
density, but we can give carrots in terms of or parking and put parking requirements and say, you know what, for that type of 00:27:04
stuff, I would do RDA incentives because. 00:27:10
We have carrots to be able to do that, you know, and so I'd love to start those discussions of, of, of giving a pre hey, council 00:27:16
member of the of the board is, is has their hands tied on certain things, but the city would like us and I and I, I'm not saying I 00:27:23
would close the door on RDA projects or anything like that. So that's what I, I would love more education on, on that. So. 00:27:31
Yeah. And I think that's something Josh and Eric, we talked about where he's to go around and gather ways to how do we 00:27:40
incentivize, how do we compare these different agreements so that when the time does come, all each of the council members can say 00:27:47
this is how I want to invest or this is what I'm really interested in. So one thing that I think would be helpful, useful 00:27:54
information for just I think for everyone is what our current agreements are like. 00:28:01
I mean, exactly. That's exactly what I'm saying. They're they're going to collect them, show you how they're done differently, 00:28:09
bring that back to us so that we can see it. OK after 10:00. I don't listen as long. Yeah. 00:28:14
Me either. Hey, let's go bring some jalapeno bread and we would be awake right now. 00:28:21
All right. Is there any other questions? I'm going to move on to 3.1, which is approval of the March 13th, 2024 RDA meeting 00:28:26
minutes. I need a motion I move to approve the consent item as presented. Thank you. Amber, can I get a second? 00:28:33
I'll second. Thank you, Sarah. Any discussion all in favor? Aye, any opposed? All right, we'll move on to our business items, edge 00:28:41
homes disbursement approval. 00:28:46
I'm trying, Jimmy, if you're alright. I can. I can just kind of do we need to talk about it. I don't wear it. 00:28:54
Vote. We have to listen. Yeah, this, this will be Yeah, I'm not saying I don't want to hear from you. For the people online, Yeah, 00:29:00
yeah, yeah, no problem. So yeah, a few years back we made an RDA agreement for reimbursement for four projects within. 00:29:07
The Edgewater development known as Lakefront Town Center and those included participation for a trail connection and extension of 00:29:16
a 10 foot Lakeshore trail from Sunset Beach Park N through the the project area and anyone that's locked there has has seen the 00:29:23
trail now. 00:29:29
Remove all of the old County Road gradient and landscaping, 5 acres between the development and the the Lake Shore and a road 00:29:36
project to connect 300 W and loop roads through the development we are still working with. 00:29:43
Edge films on two of those items, the removal of Elk County Road and then the the big one that grading the landscaping of the five 00:29:52
acres. However, they have submitted reimbursement requests and so we I did attach those invoices for 300 W of Loop Rd. So this 00:29:59
approval would be to to provide the reimbursement for for that portion. How the agreement was set up was that it was not to exceed 00:30:07
647,000 and 370 dollars. 00:30:15
Broken up into five payments annually. And so the staff request tonight is that we provide. 00:30:25
A first payment of $129,463.40 and that would be for the for loop Rd. and 300 W which which have been constructed and are 00:30:35
operating sufficiently great. Any discussion can I get you were going to hold off the other payments until they produced? 00:30:46
Yeah, they happen in in five tranches of. 00:31:00
The 100 and 29463 amount, we are still working with them to make sure the other two items are completed. And so the other 00:31:06
approvals will come to the RDA board at the time that they're complete and. 00:31:13
And with documentation like this one is hey I need a motion. 00:31:21
Read it off. 00:31:32
The RDA approves reimbursement request from Edge Home LLC for $129,463.40. The work completed on 300 extensions. 00:31:35
Great. I have a first by councilmember, I mean board member Holdaway. Second, a second by board member Rasmussen. OK, we're doing 00:31:46
a roll call. Jake, Sarah, I mean, not Sarah, sorry. I mean Sarah, said. I Amber, I Marty. All right, we returned. Yay. Yay. 00:31:56
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They were rolling. All right, we're going to go ahead and get the Redevelopment Agency board meeting started. It's March 27, 2024. 00:00:00
The time is 6:00 PM to start. Just just joking. I'm, I'm reminding, I wish it was 6:00 PM, but it's almost 10, so let's be 00:00:08
vigilant of the time, all right? It's 'cause I, I think I have the wrong thing. OK, we'll go ahead and start out with our 00:00:15
presentations and. 00:00:22
We're first. We're going to get an update. 00:00:30
And. 00:00:33
Josh, I don't exactly know how to explain what you're about to do, but it's the update and presentation we've all been waiting 00:00:35
for, right? And that's where we're starting. No pressure, no pressure, but you always knock things out of the park, so you got 00:00:40
this. 00:00:45
Yes, thanks, Mayor, Members of the board, Josh Daniels from the RDA. So here's a few things we're going to review. 00:00:50
First of all. 00:01:02
RDA big picture, just as a recap and I know some of you are new and so we haven't talked a lot about, we haven't gotten into a lot 00:01:05
of the RDA details and how it works. We did go over that a little bit at the. 00:01:11
At the board retreat. 00:01:18
OK, there we go. Um. 00:01:23
So one of the things that's the, the advantage of the RDA is it gives the city the opportunity to participate in sort of a 00:01:25
coordinated redevelopment of previously blighted piece of real estate. But what happens is you, you end up with the RDA with the 00:01:33
tax increment financing, you're basically incentivizing private investment to come in and take some of the front end risk to 00:01:41
accelerate the implementation and, and, and construction. 00:01:49
Of a variety of public facilities and infrastructure that can help to accelerate the redevelopment of an area that would otherwise 00:01:57
not develop very quickly. And so this is the, This is why there's a base value and an incremental value. So what happens is that 00:02:05
as as an A blighted area grows quickly, it also will grow in value quickly, which then will yield higher property tax revenues 00:02:12
above and beyond what it would have yielded. 00:02:20
Had there not been any real focused redevelopment efforts, but in addition to the increased values, which also will increase 00:02:27
property tax revenues, there are also extraneous additional positive economic impacts to the city sales tax, for example, job 00:02:35
creation and other opportunities for advantages to the city like amenities and and things like that. So for the Geneva urban 00:02:43
renewal area, the base value was set in 2006. 00:02:51
And what happens is anything above and beyond that base value that is assessed taxable value in the future, 75% of the tax revenue 00:02:59
of that additional or incremental value is is generated as the as the increment that comes back to the RDA, which can then be used 00:03:06
for these projects related to redevelopment, oftentimes under a reimbursement agreement with various developers sort of fronting 00:03:14
the cost of those projects and then being being reimbursed. 00:03:21
I'm going to share a chart of taxable property values from the top 50 taxpayers, which will be interesting. So this is the model I 00:03:30
just described. You've seen this before. This is how tax increment financing is supposed to work. You have the base that you can 00:03:38
see in black and above that is the green. And of course all the value that is green is incremental value. But the tax revenues 00:03:46
from 25% of that value still go to the existing taxing entities, the city, the school district, the county, the water district. 00:03:54
Et cetera. And then 75% represented by the dark green goes to the RDA and that's the increment that is able to be used for tax 00:04:02
increment financing or TIF payments for those projects. So I've also shared this before. This is the existing Geneva project area. 00:04:08
These are the assessed values over time for the history of the project with the base value in blue and the total value in red. And 00:04:14
the difference between the red and the blue there, that's red is, is the incremental value. And this is this is based on real 00:04:21
data. 00:04:27
In the Geneva urban renewal area. So now this is all the value across the entire area. What's interesting is to look at just the 00:04:33
values of the top single, top 50 property taxpayers who have the highest value. A lot of these are large commercial entities and 00:04:43
and large developments or or really large land owners. I'm not going to list them out. That's somewhat protected data. 00:04:53
But it's kind of proprietary, but I've got a sum, this is the sum of taxable values of the property over time of just the top 50 00:05:04
taxpayers. And so you can see how that matches fairly the the rise in values. And what this is showing is that if you go back ten 00:05:12
years, your highest property tax values, any one property wasn't worth that much because there wasn't these larger developments or 00:05:21
larger commercial projects that were occurring. 00:05:29
And as you see those larger commercial projects, you see a real rise in that total value from the very top. 00:05:38
So an important thing for the board to consider going forward is that the RDA is a tool for economic development as much as it is 00:05:48
a vehicle to redevelop a site. And so there is a lot of opportunity for the city to get a lot of value in a variety of ways out of 00:05:55
the process of redevelopment. Because the RDA can utilize these funds for investing in infrastructure and other sorts of things, 00:06:03
it gives them the opportunity to create additional benefits. 00:06:11
So as you think about a strategy for how the RDA should focus its reimbursement agreements, you might think about some of these 00:06:19
potential benefits. So faster development of critical infrastructure, better mix of revenue types. So thinking about sales tax 00:06:26
revenues, if you can bring in a large sales tax generating entity or you know retail or something like that, that helps to 00:06:34
diversify. 00:06:41
Your revenue types in the city, which can be which can be really good and it can also sort of shift some of that tax burden from 00:06:49
the residential property taxpayers to sort of subsidized your city budget from economic activity in the city. There's additional 00:06:56
benefits like workforce as you bring in job creators or you know, large employers, educational opportunities, and you're already 00:07:02
maximizing some of this with partnerships with universities. And then of course there's amenities and quality of life which are 00:07:09
important to the the residents. 00:07:16
Now and in the future, so as we develop a strategy for investing and this is going to be a primary part of of what I'm going to 00:07:23
help you to do, I think Vineyard needs to think about how do we get the most bang for our TIFF buck. 00:07:29
So also looking at the city's general fund budget over the last 10 years, this is the breakdown of general fund tax revenues to 00:07:38
the city that are a share of property versus a share of sales. And what you see is a real dramatic increase in sales tax revenue. 00:07:45
I think a lot of this can be attributed to sort of a critical mass as you bring in retailers and other kinds of operations that 00:07:53
collect sales tax. 00:08:00
And also not to forget, you know the online sales that all of your residents also engage in. 00:08:07
And if I don't have the number actually on the chart, but it's almost 5050, which is pretty impressive. 00:08:17
So although this doesn't include RDA tax revenue, so that would be in the future, you'd have somewhat of a windfall of property 00:08:25
tax revenue as the increment period expires and and then you start to receive all of those property tax revenues. So just to 00:08:32
clarify, to make sure I have it right, we don't the RDA doesn't deal in sales tax, just property, correct? 00:08:39
Correct. 00:08:47
Property only, not, yeah, property tax. I think there are some other special programs where sales can be an element of it, but 00:08:49
those are very narrow and specific. But generally for this RDA for the entire renewal area, it's, it's property tax increment 00:08:54
financing. 00:09:00
Something important to just keep in mind as real, real quick if it's just property tax, then why is it so hard to calculate Top 00:09:09
Golf and. 00:09:13
Megaplex. I don't get it. 00:09:19
It's not. I've got some numbers I'll share with you. So it's just the property values of those particular parcels. Yeah, yeah. 00:09:21
So something to note about the financial position of the RDA in, in year 2023 there was a reduction kind of a somewhat significant 00:09:30
reduction in revenue because of a one time event that you you may be aware of and if not then you know this is kind of your 00:09:36
update. So Pacific Corp or Rocky Mountain Power, the generation plant that's located in Vineyard is a sizable piece of valued real 00:09:43
estate largely because of the centrally assessed business personal property associated with that plant. So that's all the 00:09:50
equipment. 00:09:57
And what that means is that it's not just the property and the buildings, it's the really expensive equipment that is used to 00:10:04
generate electricity that is also valued real estate property. And there's a property tax paid on that value of equipment. But 00:10:12
that's assessed by the state, not by the county. The county doesn't value it, the state does. So it's called centrally assessed. 00:10:19
But Rocky Mountain Power appealed their valuation. 00:10:26
And one in their appeal, it was a settlement and the tax Commission ordered basically a retroactive rebate for five years worth of 00:10:34
property taxes based on the reduced values that they were granted. So it created, so the payout was a one year payout. So 23 is 00:10:42
the one year. And then in the future things will be kind of normal again. So that's why, for example, in that chart, you saw a 00:10:50
little bite out of the chart where it went down. That's that, that's why. 00:10:57
So that was a question that kind of came up and we got some clarification on that. So I want to make sure you're basically aware 00:11:05
of that one detail. 00:11:09
This is looking at total RDA increment revenues by year. So these are, these are the revenues generated by the 75% tax increment 00:11:14
financing. That's that's you know available for reimbursements. So that's the that's kind of the chart over time. The reason you 00:11:21
see that drop there at the end is because of that, that valuation adjustment. And it's not that going forward you're going to see 00:11:28
that lower amount, it's that in one year. 00:11:36
A big chunk of the revenue was taken out and rebated to Rocky Mountain Power. And so we ended up in some cases with what's called 00:11:43
a negative redemption. So normally what happens is people pay their taxes really late, let's say some of them, and you end up with 00:11:51
more revenue, but it goes into the next year. In this case, it was kind of like a retroactive bite out of your revenue, so. 00:11:58
OK. Now, now to the to the point that that that was brought up a moment ago. So looking at the tax increment finance payouts by 00:12:08
project over the history of the RDA, so the last 12 years. 00:12:15
These are the major named projects that have received TIF payments and so, and this is the, this is the cumulative total of all 00:12:23
TIF payments to date through the end of the last fiscal year. 00:12:31
Ending in 2023. 00:12:39
So now if you look at the revenue to the RDA over the same time period, it was $76 million total. And then if you look at those 00:12:41
payouts for TIF payments, you have 43,000,000 total. There was also 44 million that was paid out in capital projects, 44,000,044 00:12:49
million, Yeah, so 44 million and change on capital projects. And then down below you can see the breakout on a project by project 00:12:56
basis of 43 million. 00:13:03
For those. 00:13:11
Five kind of, well, four major, well really three major projects and some additional activities that kind of happen under the 00:13:12
umbrella of other actual project expenditures and developer support. 00:13:19
So water's edge, just to note, water's edge, it's pretty sizable, but that's because there was the sort of final payout in 2022 of 00:13:27
a lump sum of 24 and a half million. 00:13:32
So to your question about Megaplex, for example, on the Megaplex project to date $2.8 million has been paid out in TIF 00:13:38
reimbursements for that project and 5.3 million on on UVU. Now in terms of the the Top Golf or the yard project, that's on the 00:13:46
next slide. That has not been paid out in the last fiscal year. It's being paid out now. So it's not in any of the annual budget 00:13:53
reports. It's sort of an ongoing thing. 00:14:01
So this year is the year that those parcels will be triggered for tax increment financing per the contract with the developer. The 00:14:09
city once the contractor performs is required to do an initial payment of 950,000 dollars. 500,000 of that has already been paid 00:14:17
out. There'll be another 450 that will be paid out. So that this year you'll see that initial 950 and then there'll be an 00:14:26
additional over the next 12 years maximum of. 00:14:34
Well, it's contractual, so it's not really a maximum, it's just a contractual amount of a little over $4 million. So All in all, 00:14:43
it'll be just under 5 million over the course of the 12 years. And, and again, it's, it's like many of the other agreements, it's 00:14:50
a reimbursement agreement and you know the amount you pay every year might vary a little bit depending on the revenues, but the, 00:14:57
but you're obliged to pay up to the 4 million over the course of the 12 years. 00:15:05
And this one, Josh, this one has to do with the 500,000 already paid. 00:15:13
You're counting that for the yard because it's serviced a broad area, is that right? Yeah. So yeah, I kind of combined both 00:15:19
agreements in this slide, but there are two different agreements that together yield this total amount. But the two agreements 00:15:28
operate similarly, but but also slightly different. One agreement has the 500,000 payout, the other one has 451. Agreement has a 00:15:36
certain amount that's a cap of of I, I forget the number, it's about 780,000. 00:15:44
And the other one has a cap of just over 4 million. So this is the cumulative total of of both of those agreements that are 00:15:53
related to that entire area. 00:15:57
Any questions? Sorry, it's a lot of detail and information, but any questions from the board so far? 00:16:05
No questions, just a comment in that the RDA is supposed to serve the people and the people's interests of if they do or do not 00:16:16
want that improvement of like what is desirable. And we all have different ideas, obviously. And I think we come from a council 00:16:23
that's been while growth and growth and everything and what we attract and everything, this is kind of a carrot that we have to 00:16:30
say, hey, is this the type of growth we want and it's something that we can hold people accountable. 00:16:38
Or we can use it to attract things that we want and say, yeah, for something like that, it's not something that the citizens would 00:16:46
want. You know, obviously in the last election, it's like Utah City. It's like, wow, there was a resounding voice that's like, so 00:16:54
should they get that if the citizens don't want it, you know, can can we use that to adjust the plan to say, hey, is this 00:17:01
something that we could do to improve the plan of, of what citizens? 00:17:08
Would like I remember Mayor Farnsworth originally putting in megaplex as the anchor, right? And it was, hey, we're going to give 00:17:16
it to here and everything else will come. And then it it's kind of more more and we're essentially located city right in in the 00:17:24
county. It's this is there's prime real estate right here where people come. And what what I think has happened is it's drug on of 00:17:32
like we're going to continue on and and it's come to an expected of everybody gets this. 00:17:41
And I think I don't want to assume that me just speaking for me that all growth is good and that all carrots should be given is 00:17:49
what I would say. Like I think we need to word it as a. 00:17:55
You know, this isn't a given cleanup is right. I think do we have obligations towards that? Is it Jamie, clean up is required, 00:18:02
right or is that still on a case by case basis for the RDA? 00:18:08
Are we contractually obligated to? 00:18:17
All the initial decisions made by the RDA board are discretionary. You're not obligated to make any of those choices any 00:18:21
additional more. I think what Josh has done a really nice job of presenting to you tonight is kind of the overall framework of 00:18:29
what the base valuation is, what percentages go to the RDA, what percentages go to general fund and to the other taxing entities. 00:18:36
And then of the RDA revenues available, what commitments have been made to date and you know there you there may remain RDA funds 00:18:45
that you all get to decide how you want to program them some of the choices that the City made for. 00:18:53
The RDA money is already committed are not choices available to the board today because state laws changed right. So it used to be 00:19:02
that we could give retail incentives and cities would compete with each other to try to draw things like Top golf that are 00:19:11
destination entertainment venues. So the state doesn't allow that anymore correct. But I'm but I think the fact that. 00:19:20
But I have no financial interest whatsoever in Top Golf. But you have two of them in the state and I know that people for events 00:19:30
will plan it around being able to go to that location. So you have created. 00:19:36
I appreciate that. 00:19:43
But it is right and so. 00:19:51
Your sales tax revenues and property values in this area changed because you have that there. And so that was the choice the RDA 00:19:55
board have made at that time to create some value in that property. And Josh has done a great job about learning what that value 00:20:04
is. But you have more RDA resources available in the overall project area as a result of those improved property values. 00:20:13
And you certainly have more money in your general fund. 00:20:23
Because of the self taxed revenues, property tax revenues are entirely public if you request sales tax information that is 00:20:26
protected as proprietary information. 00:20:33
So the sales tax on these old ones Megaplex and topped off our revenue streams, but moving forward, we won't have any newer 00:20:39
correct 10, yeah. 00:20:44
They're not RDA revenue streams, they're correct. Yeah, but they are sales tax revenue streams. But are they getting a discount on 00:20:52
the sale? They're not getting discount on the sales, though, no. There's no tax benefit associated with sales tax revenue. 00:20:59
All new commercial is going to produce additional sales tax revenue streams. We simply can't use RDA dollars to incentivize 00:21:09
currently for new new commercial entities to come into the city. 00:21:16
At least not in the incentive format. That's right. That's a helpful clarification. And the broader point I was trying to make was 00:21:24
in the regional economic picture. 00:21:30
Using the RDA money to create that regional draw. 00:21:36
Is a benefit both to the property tax streams and those revenues that the city enjoys and needs. 00:21:40
And to the sales tax revenue? 00:21:49
Yep. And the privacy on the sales tax, just to be clear, you have access to macro level sales tax data for the city as a whole. 00:21:51
But obviously it would just be very problematic in a business marketplace to sort of know how much sales tax megaplex was 00:21:58
producing or Chili's or right, that's what's protected. 00:22:05
And into the sales tax piece, you know, you can't incentivize a business to come to Vineyard, but what you can do is offer the 00:22:14
opportunity for a reimbursement. 00:22:19
Of certain expenses related to construction of infrastructure and that's kind of where you've really used the RDA well to date is 00:22:24
that you found ways to reimburse these developers for their investment in front fronting the city the development and payment for 00:22:33
needed infrastructure that then helps the developer because now people can access and and enjoy the other private elements of 00:22:41
those developments right and so that's where you can you know use the RDA as a tool to attract. 00:22:50
Development, commercial development, you just can't hand them money because they're going to bring yourself tax revenue. So being 00:22:59
that we have a new council, when are we going to talk about because there is an adjustment in how we feel. I mean, I guess I don't 00:23:05
know, I've never voted with the three of you or four of you. And so when do we talk about if there is an adjustment in strategy 00:23:11
and defining that strategy of what, what it is? I mean it's obviously been one way for the for years prior. So now that there's 00:23:17
been an election. 00:23:23
Well, one, one thing to consider is that a bulk of a really large bulk of the work of the RDA to date and long into the future is 00:23:29
covered by a number of existing agreements that have been signed and will be operable on the city until the expiration of the 00:23:37
right. Yeah, I'm just saying on the new land parcels like 800 N, 1600 N on those parcels. 00:23:45
They're going to come in application each application, so do they just come in and say. 00:23:55
Well, I don't want to waste someone's time. So like is it important that we as an RDA council develop what are what is what we 00:24:33
would agree so we don't waste their time? Is is that. Yeah, that makes sense and I think. 00:24:40
We set the priorities as the city and then what happens is we implement the RDA according to the priorities that you vote on as 00:24:47
the city. And Josh will go out and he will compare our RDA agreements, learn about the best processes and then when and he'll go 00:24:54
and, you know, meet with companies. 00:25:00
With Morgan and everybody else to try to attract things here and then when they make a. 00:25:07
Pitch to the RDA board. If those fit what you like, then this team will get together and say here are all of your options. This is 00:25:14
what you don't like. And if you don't like that trajectory, then inside of our City Council, you would reset those priorities. 00:25:20
Well, that that's what I think we should be proactively doing is looking at over some of those things and saying, you know, these 00:25:26
are some things we would attract, you know, like some of the parking complexes are things that I saw in December. It was like, 00:25:33
whoa. 00:25:39
I don't agree with that, but nobody's asked me about that. And I don't know if you're counting up votes on like the board of like 00:25:45
where people stand or whatever, but I'd also be like to pitch if I'm wrong, like I don't, I'm open minded to say maybe the 00:25:53
parking, you know, some of the things that were in the forge, but I we're not having those discussions. I'm trying to learn like 00:26:00
how do I is there a change in philosophy and when how's that going to happen? What's that problem? 00:26:07
Then they'll come and say this is what we're specifically asking for and that's where you set your priorities and say no, I don't 00:26:46
really want to look towards this, I'm not really interested in this particular, you know, investing that way. And then he'll 00:26:52
compare them and show you what other Rdas have done around. Yeah, I mean, obviously mine in terms of density, we can't control 00:26:58
density, but we can give carrots in terms of or parking and put parking requirements and say, you know what, for that type of 00:27:04
stuff, I would do RDA incentives because. 00:27:10
We have carrots to be able to do that, you know, and so I'd love to start those discussions of, of, of giving a pre hey, council 00:27:16
member of the of the board is, is has their hands tied on certain things, but the city would like us and I and I, I'm not saying I 00:27:23
would close the door on RDA projects or anything like that. So that's what I, I would love more education on, on that. So. 00:27:31
Yeah. And I think that's something Josh and Eric, we talked about where he's to go around and gather ways to how do we 00:27:40
incentivize, how do we compare these different agreements so that when the time does come, all each of the council members can say 00:27:47
this is how I want to invest or this is what I'm really interested in. So one thing that I think would be helpful, useful 00:27:54
information for just I think for everyone is what our current agreements are like. 00:28:01
I mean, exactly. That's exactly what I'm saying. They're they're going to collect them, show you how they're done differently, 00:28:09
bring that back to us so that we can see it. OK after 10:00. I don't listen as long. Yeah. 00:28:14
Me either. Hey, let's go bring some jalapeno bread and we would be awake right now. 00:28:21
All right. Is there any other questions? I'm going to move on to 3.1, which is approval of the March 13th, 2024 RDA meeting 00:28:26
minutes. I need a motion I move to approve the consent item as presented. Thank you. Amber, can I get a second? 00:28:33
I'll second. Thank you, Sarah. Any discussion all in favor? Aye, any opposed? All right, we'll move on to our business items, edge 00:28:41
homes disbursement approval. 00:28:46
I'm trying, Jimmy, if you're alright. I can. I can just kind of do we need to talk about it. I don't wear it. 00:28:54
Vote. We have to listen. Yeah, this, this will be Yeah, I'm not saying I don't want to hear from you. For the people online, Yeah, 00:29:00
yeah, yeah, no problem. So yeah, a few years back we made an RDA agreement for reimbursement for four projects within. 00:29:07
The Edgewater development known as Lakefront Town Center and those included participation for a trail connection and extension of 00:29:16
a 10 foot Lakeshore trail from Sunset Beach Park N through the the project area and anyone that's locked there has has seen the 00:29:23
trail now. 00:29:29
Remove all of the old County Road gradient and landscaping, 5 acres between the development and the the Lake Shore and a road 00:29:36
project to connect 300 W and loop roads through the development we are still working with. 00:29:43
Edge films on two of those items, the removal of Elk County Road and then the the big one that grading the landscaping of the five 00:29:52
acres. However, they have submitted reimbursement requests and so we I did attach those invoices for 300 W of Loop Rd. So this 00:29:59
approval would be to to provide the reimbursement for for that portion. How the agreement was set up was that it was not to exceed 00:30:07
647,000 and 370 dollars. 00:30:15
Broken up into five payments annually. And so the staff request tonight is that we provide. 00:30:25
A first payment of $129,463.40 and that would be for the for loop Rd. and 300 W which which have been constructed and are 00:30:35
operating sufficiently great. Any discussion can I get you were going to hold off the other payments until they produced? 00:30:46
Yeah, they happen in in five tranches of. 00:31:00
The 100 and 29463 amount, we are still working with them to make sure the other two items are completed. And so the other 00:31:06
approvals will come to the RDA board at the time that they're complete and. 00:31:13
And with documentation like this one is hey I need a motion. 00:31:21
Read it off. 00:31:32
The RDA approves reimbursement request from Edge Home LLC for $129,463.40. The work completed on 300 extensions. 00:31:35
Great. I have a first by councilmember, I mean board member Holdaway. Second, a second by board member Rasmussen. OK, we're doing 00:31:46
a roll call. Jake, Sarah, I mean, not Sarah, sorry. I mean Sarah, said. I Amber, I Marty. All right, we returned. Yay. Yay. 00:31:56
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