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Transcript

All right. 00:00:04
We're going to go ahead and start our redevelopment Board agency meeting. The time is. 00:00:07
Is it? Is it working? 00:00:13
Yep, the time is 604. We'll start with an invocation and then we'll here we'll do our Pledge of Allegiance. 00:00:14
Our father we're so grateful for this opportunity to meet together we're so grateful for the opportunity to work together as a 00:00:22
community and to. 00:00:26
Invest our time in building a beautiful place that we can all call home, and we pray that we'll be able to work together and. 00:00:30
Humility and strategy for the better of our community. And we said this name of Jesus Christ Amen. All rise. 00:00:39
For which it stands one nation under God. 00:00:53
Individual with literacy and justice for all. 00:00:59
All right, it looks like we have an RDA update and then we which we'll hear from. 00:01:10
RDA Director. 00:01:17
Josh Daniels. 00:01:18
Great. Thank you. 00:01:20
I have a couple of items. 00:01:21
And then I'm going to share kind of a memo form. 00:01:24
That address. 00:01:28
A couple of different questions that have come up. 00:01:31
In the past for discussion, so three different. 00:01:33
Three different topics. The first one there's been some discussion previously about. 00:01:37
The relatively recent action of the RDA Board in the fall of 2023 to pass a resolution to extend the life. 00:01:42
Of the timeline for the commencement of increment collection. 00:01:51
And so the first memo in your packet and online. 00:01:55
Covers this topic SO. 00:02:00
Some of the discussion in the past centered around the process for the vineyard. 00:02:03
Redevelopment Agency board to. 00:02:09
Extend the time frame for any given phase. 00:02:11
Of the Geneva Urban Renewal Area Project. 00:02:15
To be placed in the tax increment financing period. So a couple of things that are important here. 00:02:19
Number one, the original project plan called for. 00:02:26
Any given phase of the project to collect tax increment for 25 years total for any given phase. 00:02:30
But there was kind of an assumption that the entire project would only take. 00:02:39
Essentially a total of 35 years. 00:02:44
Because the idea was that all the phases of the project would. 00:02:47
Be triggered for tax increment collection. 00:02:51
By the 1st 10 year period. 00:02:55
Obviously for those that have been involved for a number of years and if you look at the history, it's taken a lot longer to 00:02:58
prepare the site for commercial and residential development. 00:03:03
And so. 00:03:08
It seemed necessary to allow sections of the project to be triggered in the future for only a 25 year period, but that those 00:03:10
probably wouldn't be triggered in just the first ten years. 00:03:16
Of the project but later. 00:03:22
And so, in 2020, the legislature passed a bill, Senate Bill 158. 00:03:24
Which gave a specific. 00:03:29
Option for the Vineyard RDA board. 00:03:32
To pass a resolution to extend the time. 00:03:34
For tax increment collection in any of the phases. 00:03:38
Umm, beyond that 35 year total time frame. So. 00:03:43
In 2023. 00:03:47
The resolution. 00:03:49
Basically said that. 00:03:51
That the Vineyard RDA would extend the time frame. 00:03:54
Beyond the original sort of total time limit, so that. 00:03:59
Different phases of the project that were still under development or would be developed in the future could be triggered for the 00:04:04
25 year maximum, but that they didn't have to be triggered right away to to have the 25 year maximum. 00:04:10
And so you know, the question was well. 00:04:17
How? What's the process for doing that? Because the process in code up until that point was to essentially reconvene the taxing 00:04:21
entity Committee, which was the original body that authorized the participation and tax increment financing. 00:04:28
And approved the original project area budget. 00:04:34
So what the statute with the with the bill in 2020 allowed? 00:04:37
Was in the in the event of a. 00:04:41
Of a project area like Geneva. 00:04:45
Where there was an inactive industrial site. 00:04:48
And the Vineyard RDA board. 00:04:51
The Community Reinvestment Agency, which is what you are, could go ahead and do that unilaterally without reconvening the taxing 00:04:54
Entity Committee. 00:04:59
And it was really important because in. 00:05:04
The legislative history, the discussion both in the Senate committee, the House committee on the Senate floor, and in the Senate 00:05:06
and in the House floor. 00:05:10
Centered around sort of the need to. 00:05:14
Give this extension because. 00:05:16
Of the time it took for environmental remediation, there was some discussion specifically about the time that it took and and kind 00:05:19
of the idea that the Camus had to be created. I don't think that was originally. 00:05:25
Something that the. 00:05:31
That the vineyard RDA understood clear back in 2011, but as environmental remediation took place. 00:05:32
As the EPA was involved in terms of. 00:05:39
Directing certain requirements and as the cleanup continued. 00:05:41
It was clear that it was going to take a number of years more for the environmental remediation. I think you can just see that 00:05:45
with your eyeballs as you drive through the city and you can see there's still a whole lot of concrete and other material that's. 00:05:51
Being hauled out every day. 00:05:57
And you know the site is obviously not. 00:05:59
Prepared for commercial residential development immediately. Some sections closer than other sections. 00:06:01
And so, with that in mind, the Legislature authorized the Vineyard RDA board, with a very specific exception. 00:06:08
For an inactive industrial site. 00:06:14
Of 1000 acres or more which? 00:06:16
The Geneva Urban renewal area is the only such site in the state. 00:06:18
And it was so explicit that. 00:06:22
On the House floor when the bill passed. 00:06:23
One member of the legislature who is a former City Council member, not from here, but. 00:06:26
You know, all the same as familiar with city issues specifically ask the question so. 00:06:31
You know, to the bill sponsor, they said. So what you're saying is that. 00:06:36
The Vineyard RDA. 00:06:40
Extend the time for tax increment collection for this site without any approvals or authorizations or resolutions of the taxing 00:06:42
entity committee and the sponsor said yes. 00:06:48
So it was very explicit that the legislature wanted to give specifically. 00:06:53
The Vineyard RDA for the purpose of the Geneva urban renewal area. 00:06:58
Additional time to capture the 25 year tax increment on any given phase of the project and that there would be no. 00:07:03
Sort of time limitation. 00:07:13
And so that that's why in 2023. 00:07:15
The Vineyard RDA passed the two resolutions. 00:07:18
To extend the time. 00:07:22
For collection. 00:07:24
Or really for beginning or commencing the collection of tax increment financing. 00:07:26
Umm, on, on those parcels. So that's kind of what this memo goes through it. 00:07:32
It cites the code and talks about the legislative history. 00:07:37
And the discussion that took place in the legislature. 00:07:41
And then the Vineyard Artier Board followed that protocol. They held the public hearing in October 11th and October 25th of 2023. 00:07:44
And then passed resolutions. 00:07:53
Related to that extension. 00:07:55
And that is what this first memo. 00:07:57
Goes through Hey Josh, did we hire a lobbyist to run this bill? 00:08:01
No, the bill. 00:08:05
Was uh. 00:08:07
Run by state representative, so we had no lobbyists. 00:08:09
Hired at that time. 00:08:13
I wasn't here at that time. I don't know, but I know we did. 00:08:15
Well, when I when I listen to the legislative history, it was the lobbyists for developers that were on the record saying that 00:08:19
that they were. 00:08:23
Pushing for this. 00:08:27
We're gonna, we're gonna keep letting. 00:08:30
I'm ready for questions. Yeah. OK. Did you have a question? Yeah. 00:08:33
I fundamentally disagree with the. 00:08:39
The timeline of events as to how this happened. 00:08:41
Every RDA in the state functions the same. We're attacking entity committee, the revenues of which. 00:08:47
Come from like our school district, our county. 00:08:54
Our city, our sewer and our water. 00:08:58
Will always set forth the parameters. 00:09:00
The length? The total dollar amount. 00:09:04
So last year when we came and asked you how this was extended, we were following. 00:09:07
The protocol that is set forth in state law, that has been the standard going back years. 00:09:12
The way this was extended. 00:09:18
Was by running a bill. 00:09:21
To change and make our RDA unique to any other RDA in the state. 00:09:23
And over and over ruling and instead of justice, simply going back to those taxing entities because it's their money, it's the 00:09:29
school district's money. 00:09:34
It's the county's money. 00:09:39
It's a very simple process to go and say this is your money, can we take an extension on that time? 00:09:41
Instead of doing that process. 00:09:48
We went to the legislature and ran a bill to say we don't want to notify them. Can we run a bill and extend it without? 00:09:51
Having to do that process. Hey, Jake, can I call point order? What's like this is very important because this is their money. 00:09:58
Let me finish my thought. 00:10:06
I guess I hear a lot of concerns and frustrations about things that have already happened. 00:10:09
Well, it's very important that the public record be described as to what happened. 00:10:15
I understand we're sharing the past. You might as well say what happened. 00:10:19
What is the point of your frustration? Because besides the public record, you said that. What do you want us to do about it? Hold 00:10:23
on, Hold on. Actually, both of you. Stop Dave for a second. Stop date. 00:10:29
You're not clarifying the public record, and I think that's really important. 00:10:36
What is actually happening is that Josh stayed at the public record. He also stated that this was done by the law. He also stated 00:10:40
that this was done through state law. 00:10:45
If you don't like the way that the law works in the state, you can go and talk to the state legislators and whether or not you 00:10:50
believe that the city. 00:10:55
Is the one that pursued it or not? 00:11:00
Whether or not this assumption that you're putting out to the public is true or not. 00:11:02
The point is that John's clarified for the public was this was done according to the law. I'm not, I'm not questioning and so 00:11:07
there's nothing. 00:11:12
Business. 00:11:16
That is being discussed right now, I think. Marty's. 00:11:20
I think Marty's point. 00:11:23
Is that we're here to fulfill the business of the city. 00:11:25
What you're talking about is a state law, and if you do not like the way that state laws work. 00:11:29
This is not the place to petition them. 00:11:34
This is not the place to petition them, and it's also. 00:11:38
It is not. It is not actually. You need to go to the state. 00:11:43
And here, here's the difference. 00:11:46
What you're saying to the public? 00:11:48
Is intentions, ideas, thoughts, ways that you would have wanted to pursue a past issue because you think that it's better now 00:11:50
whether or not you think your way? 00:11:55
Is better than the way that it was done. 00:12:01
The way that it was done was lawful. 00:12:03
And according to the way that it needed to be done with the state in a way that was meaningful. 00:12:06
And so telling the public that we did not do it in a way that was proper. 00:12:12
Is improper. 00:12:17
So I'm going to move on from this discussion. We're not even I'm going to move on from this discussion because you're not 00:12:19
providing clarity. 00:12:22
What you're saying is not true. 00:12:33
I know. 00:12:35
You just didn't disclose how it was done. No, Jake, I didn't. You and I didn't even have this discussion. 00:12:39
What you're saying is not true. 00:12:44
So Jake, what you're saying is not true and now it's been disclosed and clarified, Jake, now it's been disclosed and clarified. 00:12:47
By our. 00:12:58
Director. 00:13:01
Who, when you ask for clarity, he went and he he went and found out. 00:13:02
The answers for you. 00:13:09
We didn't follow the same protocol we take. That's not the point of it. What you're doing, you're not discussing the OK, I'm 00:13:11
calling this back to the table. This I will state it again. 00:13:17
Right now you are talking about two pathways, one both pathways. Whether you like that pathway. 00:13:24
Or you like another pathway. This was the legal and lawful pathway. 00:13:31
If you want to discuss that later, you can go and have that discussion outside of this because right now we have to focus on the 00:13:37
business. 00:13:41
We've we've tried to put this on the agenda and have experts come and explain how this was extended. You just had a business, you 00:13:45
just had an expert come and explain it to you. 00:13:50
And it's been clarified. The law has now been clarified. Is there anything? All right, we're going to go ahead and we're going to 00:13:55
move on to our consent agenda. 00:13:58
Unless there are any further questions about this particular item, I'd be happy to have Josh answer the question. 00:14:03
There's also two other I was gonna. 00:14:11
Oh, I apologize, Josh. Go ahead. And just to cap this off, yeah, there's two pathways in the law. The the state legislature 00:14:13
created a specific option for vineyards specifically to do it through a RDA board act. 00:14:20
Which is what happened in 2023. 00:14:26
So, OK, great. We'll go ahead and move to the next memo. 00:14:28
The developers that asked for the extension, is that the land owners? Yeah. 00:14:32
And there are, it's if you go back and you listen to the, I've listened to them, we listen to them today and extend, The funny 00:14:37
thing is, is the vast majority of the people didn't know what was being voted on at that time. And there's nothing wrong with 00:14:42
that. 00:14:47
This, This is why we're moving off this topic and we're going to go to the next thing. You can't say such generalized statements 00:14:51
that you're including our whole legislative House of Representatives or Senate and saying, no, hold on, you need to wait, please. 00:14:59
You make these blanket statements that I find insulting to our legislation if they didn't know what they were voting on. 00:15:07
Then let them come and sing the law, right? That's what we're No, no, Jake, it's not just that. 00:15:15
It's that what Marty is saying is that there was a huge group of people. But Sauce did clarify. 00:15:21
Yeah, I understand. 00:15:28
In the minutes. 00:15:32
That they had asked the questions that you're saying they clarified it for the people on the floor. 00:15:34
And it was made known to the people who voted on it, and then the people voted on it. 00:15:40
Notwithstanding any of that, that has nothing to do with the business of Vineyard right now. 00:15:45
I don't know what we're afraid of. They're just giving us. This isn't being afraid of anything. This is that you're not clarifying 00:15:51
the law. 00:15:55
On the bigger picture. 00:16:00
Did you hear what he said? 00:16:02
The whole purpose of this have you, have you driven past? 00:16:03
I've I've listened to that Geneva site. 00:16:06
It is a giant mess and if it needs more time to be able to make it nice, then we need to support that it needs more time to make 00:16:08
it nice. I'm not done. 00:16:14
So I grew up here, I'm well aware of Geneva and the benefit that it created for multiple families. It was the place where blue 00:16:19
collar people could come to work and are now living for their family. 00:16:24
Right when Geneva pulled up, they left a giant mess for Vineyard and for Orem and for all of Utah County. 00:16:30
And what they're saying is exactly what needs to happen to clean up that mess that's been sitting there for 25 years. And for you 00:16:36
to not support it is actually a little embarrassing because you're from Vineyard. 00:16:42
OK, so OK, hold on. I'm gonna ask you a question so I can know if we can move on from here. I don't know what we're afraid of. 00:16:49
Just talking about what happened. Guys, just let us go. Jake, listen. Listen, Jake, stop and listen to me. 00:16:55
Listen. 00:17:02
Is there something that you would like to accomplish with a business? I think it's just say wait and wait. Is there something that 00:17:05
you would like to accomplish? 00:17:09
With the business of Vineyard today regarding your discussion, yeah, it's important that we establish how this was extended. OK. 00:17:14
All right, then I'm going to take. 00:17:20
The legal process has been clarified. We've established it, what you have said. 00:17:28
Is not clarifying it except that there were two pathways. You illuminated that. Thank you. 00:17:33
Josh sat and acknowledged that there's two pathways. 00:17:39
And we followed the legal pathway. So now that we've accomplished the business that you'd like to accomplish, we're going to move 00:17:43
to the second memo. Why? Why not just allow for a discussion on this, the discussion that we have the business. 00:17:50
Jake, listen to me right now. Listen to me. 00:17:58
OK, wait. Jake, stop. Stop. 00:18:02
Stop K. 00:18:06
We have to get through this. We can't be afraid of what We can't be afraid of what you did. Just just talk about it. 00:18:08
Jake, stop. 00:18:17
You have to stop. 00:18:21
You are disrupting the meeting. All right, Jake, you are disrupting the meeting. 00:18:23
Nobody is scared about this. 00:18:27
No, stop. 00:18:30
Please stop. 00:18:33
This is part of the reason why it is so difficult to get through the agenda. 00:18:35
This is a funny thing. 00:18:40
This isn't, this isn't the way that we deal with business items. 00:18:42
This is a very serious thing. We have to get through the business of our city. 00:18:46
It's very important. 00:18:51
And what you're saying to the people acting like we're scared to talk about it, acting like we're hiding things, acting like 00:18:53
you're clarifying the law. 00:18:56
It's not true. 00:19:00
What you're saying is not true. 00:19:02
And so now we have to actually get through the business that is on our agenda. 00:19:05
And so, Jake, you had just mentioned to me that you wanted to clarify the process. Stop, Jake. Scott. Scott. 00:19:12
Josh has already clarified the business. There's no reason for us to extend the discussion. 00:19:22
We have a lot on the agenda. 00:19:27
We have a lot of public hearings. 00:19:29
We need to get through that. 00:19:31
OK, Julie, I think, sorry, I think, I think both of you should stop if it's okay. 00:19:33
Keep going, Josh. 00:19:40
He was like, we moved to Sacramento. Marty, it's my job to actually navigate how this works. Party feel like you're talking, 00:19:41
you're saying kind of the same things over and over. And I feel like, OK, I'm gonna I'm I'm gonna establish this for the council 00:19:46
that you can understand this. 00:19:51
The reason why I ask people to stop or give people turns, or sit there and give our experts turns, or talk about a public hearing. 00:19:56
Is because in order to get through this agenda, it is my responsibility in order to keep that decorum in the meeting. 00:20:05
It is not so that I'm talking over you. It's not to stop people from talking. It's to clarify the points of business. So Marty, 00:20:11
wait, I need you to listen as much as I need Jake to listen. So when I'm sitting there and I say, Jake, what is it that you need 00:20:17
done? Once I identify it, then I clarify it for the public. 00:20:23
And if there's somebody that's disrupting? 00:20:29
And if there's something that's disrupting the meeting, I have to be able to acknowledge it and explain it to the public. 00:20:31
So this, this is what is part of this job and anybody that sits in this role has to do this and we all have to share a mutual 00:20:37
respect. 00:20:41
For this opportunity to get through the agenda. 00:20:45
So just go to the next memo. 00:20:49
And you know, just as background, these are just three topics that have come up a lot for discussion. And so I've done some 00:20:52
research to bring to you some some information. 00:20:56
The second memo is about the impact on Alpine School District. Well, really the impact on. 00:21:00
The RDA and the Geneva Urban Renewal project of the dissolution of the Alpine School District in the formation of the three new 00:21:06
school districts. 00:21:10
The school district Vineyard will be in is essentially the leftover space because. 00:21:14
The initiative. 00:21:19
That was adopted by voters created 2 new school districts leaving over a bunch of area like Orem and Vineyard that will be known 00:21:21
as the Timpanogos School District. 00:21:26
So one question that's been asked is. 00:21:31
So what, if any, impact on the existing tax increment financing? 00:21:34
That applies to the Geneva urban renewal area. Will there be because there's a new school district? 00:21:39
And it's pretty simple answer. The law is very clear. 00:21:45
Under the code section that's cited here in the memo, it says a resolution or interlocal agreement executed by a taxing entity 00:21:49
under this section may be enforced by or against any successor taxing entity. 00:21:56
If you look throughout Utah County in the footprint of the existing Alpine School District. 00:22:02
There are a number of other RDA areas with tax increment financing that's that's going on that are not inside Vineyard. 00:22:07
And all of them are going to be treated. 00:22:15
Similarly to how they were treated when the Canyon school districts split in Salt Lake County. 00:22:17
And so nothing in the code would give the new school district. 00:22:23
Any legal ability to. 00:22:28
You know, erase or or change those legal agreements, the successor taxing entity of the Alpine School District as far as Vineyard 00:22:31
is concerned. 00:22:36
Would be bound by the previous legal agreements related tax increment financing. 00:22:41
It is interesting that in 2025, the legislature, in anticipation of the school district split, clarified the law on some things. 00:22:46
And you know, I think if this needed clarity, they would have added that. I I don't think that this needs clarity, but. 00:22:54
It is interesting that they intentionally passed a bill to just. 00:23:01
Codify things like new school districts and reorganize. School districts are required to continue living taxes to meet outstanding 00:23:05
bonded indebtedness and other financial commitments made by the divided district. 00:23:11
You know, I think that that clarifies the intent of the law, which is that a successor school district inherits the same 00:23:18
obligations, including bonded indebtedness and other financial commitments. 00:23:24
Another section of that bill said new school districts are prohibited from voiding existing financial obligations, including 00:23:30
agreements that impact tax levies or debt repayment, without mutual agreement between the new and reorganized districts. So. 00:23:36
Current law is clear change. Recent changes to the law specifically targeted at. 00:23:43
At the the split of the Alpine School District further clarified that. 00:23:50
That same principle that the Alpine School District obligations will. 00:23:54
Continue to the successor of school districts, as applicable. 00:24:00
In our case, in Vineyard, the new Timpanogo School District would. 00:24:04
Inherit the same obligations. 00:24:07
For tax increment financing. 00:24:10
There's a section here that kind of reviews. 00:24:13
Tax entity committee actions. 00:24:15
That originally occurred back in 2010 and 2011. So there's kind of a list of those and some references to the the minutes of the 00:24:18
Tax Immunity Committee. 00:24:23
Different obligations that. 00:24:27
That were agreed to by the Taxing Entity Committee. 00:24:29
But that's that's the basic gist of this memo. Any questions about that? 00:24:33
Any questions? 00:24:38
I mean, if I'm allowed to talk I will, but if not then I won't. I'm not happy to answer it. You're allowed to talk. Please go 00:24:43
ahead. And if you have business on the table, I'd just like to explain. 00:24:48
In its entirety, what I understood happened and walked me through through the state auditor. 00:24:55
So from Seth of how this happened or how it was extended? 00:25:00
Every RDA in the state functions the same where the entities that it's their money, so our education dollars. 00:25:06
For meeting our school board. 00:25:14
And our counting. 00:25:16
I spoke with Commissioner Skylar Beltran about this. Every December he looks over his Rdas. 00:25:18
He's brand new but and everyone on the list and it just so happens that the Vineyard RDA is not on that list. 00:25:24
When our RDA was coming up to get an extension instead of following law at that time and working and functioning like every other 00:25:32
RDA. 00:25:37
Our developers went to the state legislature. A legal path. 00:25:44
And said, senators, will you run a bill? 00:25:48
So that we don't need to go and ask for the school districts. 00:25:51
Vote and the counties vote. 00:25:56
To give us more money. 00:25:59
We would like the Legislature. 00:26:01
To create a new process, a legal process that has never been done and will never be done again. 00:26:03
I've been told that. 00:26:11
We will be. 00:26:13
Not subject to have to get we will just notify them that we're going to be extending the life of the RDA. Katie, what is the 00:26:15
business I just want to make sure that people understand that that's. 00:26:21
And it's legal. 00:26:27
This is completely legal for the developer to go and do this. 00:26:28
But we created a completely new process. 00:26:33
And so when we asked how was this extended back in January and February of these meetings, we were like, why is this? Why is there 00:26:36
no vote? 00:26:40
From the school district approving this, this is. 00:26:44
Millions of dollars of their money. 00:26:47
And there's no vote and it then yeah, you're right, the the legislative body. 00:26:51
Can supersede them. 00:26:57
And say look. 00:26:59
We're gonna bypass that, but I just want people to understand that new legal process on the table then, 'cause this is the same 00:27:00
thing that you just said on the first item that we changed yourself again. 00:27:06
Also, what good is that land going to be if it doesn't, if it doesn't get remediated and built on? So we're not arguing. We're not 00:27:13
arguing that. 00:27:17
We're not arguing that I want all of you. I want all of you to pay attention to what is occurring right now. You have repeated 00:27:22
yourself after the first memo. For the second time, we are having the same discussion. 00:27:28
We are going to stop this. We're going to get to the next discussion. 00:27:34
There is going to be a public hearing on the fiscal tentative budget. I think that would be an appropriate time to make your 00:27:42
comment. 00:27:45
Go ahead. 00:27:49
Any more questions specifically about the Alpine school districts? 00:27:50
What you know, did you guys have anything specific to this memo? 00:27:53
OK, OK. And then? 00:28:00
This, this, no, I think it's the next memo that I have question. 00:28:02
Umm, so the next memo is just about the differentiation between annual agency budget, so. 00:28:06
The uh. 00:28:14
The Vineyard RDA is a community reinvestment Agency, or CRA, under state law. 00:28:15
And uh. 00:28:21
ACRA can manage one or more project areas. In the case of the Vineyard RDA, you manage one project area, the Geneva Urban Renewal 00:28:24
Area. 00:28:28
And there's two different types of budgeting activities that occur in the context of an RDA, a community reinvestment agency. You 00:28:32
are the agency. 00:28:37
That's your annual agency budget, which for example today we have public hearing for the future adoption which will take place in 00:28:42
June of the annual agency budget. 00:28:47
And that's a different budgeting process from the what's called the project area budget, which is? 00:28:52
A defined term in state code. 00:28:58
And so there was just some questions and I think some misunderstanding between those two terms, what that budget is and the 00:29:01
process that you follow for budgeting so. 00:29:05
The annual agency budget. 00:29:10
What what you know one of the actions today is a hearing that's part of the law for annual agency budgeting. That's different than 00:29:12
the project area budget which is a multi year budget. 00:29:17
Which has to do with the total amount. 00:29:23
Of tax increment participation, The rate of participation. 00:29:25
So like in our case, 75% participation. 00:29:30
So that project area budget was first adopted. 00:29:35
By the Taxing Entity Committee back when they were meeting in 2010 and 2011. 00:29:39
And that is the sort of document that says. 00:29:43
That these are the taxing entity committee. These are the taxing entities that are participating. This is the rate of their 00:29:47
participation. 00:29:50
That's when they approved the 25 year. 00:29:54
Increment collection period for any given phase of the project. 00:29:56
And so this memo just outlines and cites state code related to the annual agency budgeting. So like for example, an agency shall 00:30:00
prepare and adopt an annual budget. 00:30:05
In the same manner and at the same time as a special district. 00:30:09
Which is also very similar to the city's budgeting process. And so that's the process we follow every year for the agency, the 00:30:13
annual agency budget. 00:30:17
That is not something that the Taxing Entity Committee is involved in. 00:30:21
So there's no. 00:30:26
Meeting of the taxing entity Committee related to the annual agency budget. The project area budget is the multi year. 00:30:27
Budget that was first adopted by the taxing entity committee and so there's there's state code that's about that process as well. 00:30:34
So this memo just kind of. 00:30:38
Outlines those two. 00:30:43
Actions and the rules related to those actions. 00:30:44
Thank you. Does anybody have any questions about the differences in budgeting and? 00:30:48
Approvals. 00:30:54
I do, but there's so many things I don't know if we have an appetite to get into it. 00:31:00
Do you think it would be appropriate for you to meet with Josh? No, because I already know from the state auditor. I just think 00:31:06
it's important it's on public record as to the different differences between our RDA and the normal functioning RDA. 00:31:11
I mean, they're both legal, but they're just different. Well, can I make a comment? Sure. I think what's important, and maybe 00:31:17
you're gonna touch on this, Marty is normal functioning. 00:31:22
I don't think it's fair. We have an RDA that does something different. So if you want to say there's two types of Rdas. 00:31:28
That you're categorizing. 00:31:36
Rdas that follow a different set of rules versus our RDA that does something different and follows a different set of rules. I 00:31:37
think what's important is that. 00:31:42
We are following the law. 00:31:47
And that this is the proper way for us to manage our RDA, Marty. 00:31:49
I was just going to say that. 00:31:55
It's Jake. I I don't mind you sharing what you want to share. It's what's hard is. 00:31:57
I feel like you come in and you argue with an expert when I don't see you as an expert. 00:32:06
I would rather hear it from the experts that you're trying to relay information from. 00:32:13
But it doesn't need to happen. 00:32:18
It doesn't need to happen this way. 00:32:20
We invited them to be on the agenda and John's in the audience and we've attempted 4 different times to add him to the agenda. 00:32:23
We've got one that we pay all day long, right, and and one that didn't disclose anything until we got the auditor involved. And 00:32:29
then we found out that there was a separate process. And Bill Rare, that's not true, what you're saying. Did you guys disclose? 00:32:34
Yeah. When you ask these questions in the beginning, this was brought up, right? You were a part of the process to run it. You 00:32:40
were in office. 00:32:45
When it was presented in 2023. 00:32:51
I understood what I was voting for and I voted for it because it made sense and because it was within the law. It is. It is within 00:32:54
the law. 00:32:57
If you don't like the law that the state has made, we're getting we're going back and I take back my statement. We're not agreeing 00:33:02
that wealthy developers can go to listen a point of order. We're going to we're going to we're not arguing. It's interesting, 00:33:08
Jake, because that is what you're arguing. You're you're arguing all sorts of things that have kind of started that have nothing 00:33:15
to do with the business on the table. You're making it look. 00:33:21
Stop please. You're making it look like the city is doing things that are is illegal. 00:33:28
That's great, and I'm really happy that you've acknowledged that in this meeting. 00:33:34
You're also making it look like nobody is giving you these answers before. This is not true. They're now being written in a memo. 00:33:37
So that there is written accuracy, so that when the people here you go and talk about it, we now have a memo that we can say 00:33:45
actually not only has this been discussed, it's been done in written form. 00:33:51
So now there is this additional information that's resting out here for availability that people can go and they can capture it. 00:33:57
Since there is nothing more to discuss and you don't have a question between something on the table that has to do with this memo, 00:34:06
maybe there's an accent that you guys want to talk about. 00:34:12
Like, would you like to change the process that we're doing? Maybe you would like to see something on a future agenda? 00:34:17
We could talk about that. I did have a question for Josh. So you and I had talked outside of council about my request last time 00:34:24
when I said could we redo the look of the OR the. 00:34:30
The membership of our RDA board and you gave me a really great answer, or at least. 00:34:37
You gave me an answer, so yeah, great question. 00:34:42
Yeah, thanks for for reminding me about that. So, yeah, in the previous discussion. 00:34:45
More than one occasion, I think there was, you know, the notion or the idea that. 00:34:50
Could we create? 00:34:54
An RDA board that was different than the City Council. Could you, for example, appoint members of the community or other kinds of 00:34:55
industry experts to be board members to the RDA board? State code is actually very clear it it prescribes that for an RDA that is 00:35:02
sponsored by a municipality. 00:35:09
The RDA board shall be the same as the City Council. 00:35:16
So you don't, you don't have any flexibility in state law to constitute the RDA board any differently than the City Council. 00:35:21
OK, With that, I'm going to move to the consent items. Can I get a motion? 00:35:28
To approve the May 14th, 2025 RDA meeting minutes. 00:35:34
So moved first by Marty, can I get a second? 00:35:39
Second Second by Sarah. Any discussion? 00:35:43
All in favor, aye? 00:35:47
All right, we'll move to our business items. We're going to go over our fiscal year 20252026 tentative budget. 00:35:49
Then going to a public hearing. I need a motion to go into a public hearing. So move. Thank you. Marty, can I get a second? 00:35:56
2nd, Thank you Sarah. I have a second all in favor. 00:36:02
Aye, any opposed? 00:36:06
Alright. 00:36:09
Go ahead, stars, for now in a public hearing. If you guys have questions, start thinking about him and I'll open up times for you 00:36:11
to speak. I voted yes. 00:36:15
I did put in the staff report. Oftentimes we'll put a few notes and so the code section here. 00:36:20
I think one point of confusion in the past about project area budget and annual agency budget is there had been an errant 00:36:27
reference to the section of code for the project area budget. 00:36:32
That's updated here. 00:36:37
Just to be clear, So what you're doing is part of your annual agency budgeting process and that's the code reference for annual 00:36:39
agency budgeting. But this is the the budget exhibit. 00:36:45
Umm, to what? You know we shared this as the tentative budget the last meeting. 00:36:50
And, umm. 00:36:54
Yeah, it's pretty simple. 00:36:56
It does reflect the increase in increment collection from. 00:36:58
Areas that we. 00:37:03
Whether you triggered recently this year, that will be collected in calendar year 25 and will be part of your fiscal year 26 00:37:05
revenue. 00:37:10
You know a big chunk of that is an ongoing expense to environmental remediation, which is in our capital expense. 00:37:15
OK. Are there any questions about that from the public? If there are, please come to the microphone, state your name. Come on up, 00:37:25
John. 00:37:28
And where are you from? 00:37:32
My name is John Barrick. I'm from Orem. I am a Utah County taxpayer. Hold on, Hold on one second, John. 00:37:37
Are you picking that up? 00:37:43
OK, go ahead. 00:37:45
I've got a couple of issues. First, I did ask. 00:37:47
If the RDA had been extended and I've been asking that for almost a year and that was not answered until recently. 00:37:50
I think, Josh, for answering that question and the legality of it and I will. 00:37:56
Concede that at this point in time. 00:37:59
But I did ask and it was not answered before. 00:38:02
I have a resolution number T 2009 dash 1. 00:38:05
Which I'm happy to provide to you which was the 1st. 00:38:10
Resolution passed by the Tax Amenity Committee of the RDA. 00:38:14
And I'm asking a question about that section 5C of that says in order to ascertain and stay abreast of the status of the project 00:38:19
area. 00:38:23
The taxing entity committee shall meet at least annually during the time the agency receives tax increment under a budget for the 00:38:27
project area, which Josh told us about tonight. And I agree with them everything, everything, he said. 00:38:33
But your own governing document states that the taxing entity committee shall meet if you get a tax increment, and according to 00:38:39
that budget you've got, you're asking for a tax increment. 00:38:45
And I'm asking if the taxing entity committee has met. 00:38:50
And whether they've met between 2011 and now. And I believe the answer to that is no. 00:38:53
It's this is important. 00:39:00
Because this is the agency. 00:39:01
That determines whether the the RDA is complied with the resolution under state underlying state law. 00:39:03
If the RDA continues to collect and spend tax increment, but the TEC has not met annually as required under your own governing 00:39:10
document. 00:39:14
This would constitute a direct violation of the agency's own governing resolution. 00:39:18
It would also be. 00:39:22
Appear to be inconsistent with the statutory oversight framework outlined in the Utah Code. 00:39:23
17 C 1402 through 4:08. 00:39:28
Which establishes the teasing role. Can you see that number one more time? I'm sorry. 00:39:32
17 C 1402 through 4:08. 00:39:36
But your own governing document, which is T 2901. 00:39:40
Is section 5C. 00:39:45
Is the one that requires you to meet annually. It also requires them to meet annually to discuss the Open and Public Meeting Act. 00:39:47
Which I don't think has happened either. 00:39:54
But my final point is, is that. 00:39:56
Attacking any committee serves as a critical safeguard or transparency and taxpayer accountability and the administration of tax 00:40:00
increment financing. 00:40:04
And ensuring the committee has met and has functioned as required. 00:40:08
In your governing document. 00:40:11
Or the TCS governing document is integral to the integrity of the RDA. 00:40:13
So has the TC had any meetings since January 2011 in accordance with section 5C? 00:40:17
And if not? 00:40:25
What explanation does the agency have? 00:40:26
For the lack of TC meetings despite ongoing receipt of tax increment. 00:40:28
Thank you for your time. 00:40:33
I'm happy to leave. 00:40:36
Thank you. 00:40:41
All right, any other comments? 00:40:43
I think it's. 00:40:56
And I've spent the last year with a very large group. Karsten Walker. 00:40:57
Sean teaches at BYU on this topic and others. 00:41:02
Umm, the taxpayers of Alpine School District. 00:41:10
And the county? 00:41:14
I feel like they need to understand that this new process was created. 00:41:20
And in speaking with senators that that were involved in the bill and the new process and having our the developers, whoever those 00:41:27
are. 00:41:32
In setting up this new process. 00:41:37
Need to understand that by circumventing them, those taxpayer dollars are theirs and it binded them for an extended period of 00:41:39
time. 00:41:44
And when when we came and met at the beginning of January and February of last year, not this year, but the previous year, we were 00:41:49
just simply asking how it was extended. And Marty, if you knew about it then that you were backed it up and. 00:41:56
I'm I'm shocked that it wasn't. Hey, this was the bill and this was why. 00:42:04
I'm very grateful for Seth and the body of bringing those 3 individuals together with the state auditor. 00:42:08
When meeting with them, they were like, no, you're not in compliance, this is how you're not in compliance and this is how a week 00:42:15
later in going through legislative, they said. 00:42:20
Actually, a bill was ran. 00:42:25
This has never happened before, and it will never, and it hasn't happened since. 00:42:28
And somebody running a bill. 00:42:33
And I invite the general public to read and watch the very short discussion on the Senate floor and on the House floor. 00:42:35
The senator describes this as a state RDA. 00:42:43
To the senators, the senators do not understand that this is not a state RDA. These are five small government entities that 00:42:47
created the RDA. 00:42:51
In the House floor. 00:42:55
One representative stands up and says, hey, I just want to ensure that the taxing entity committee is still going to vote, and the 00:42:57
House sponsor said yes. 00:43:02
Don't worry. 00:43:07
It's the Vineyard RDA. They're the Tax Name Entity committee. 00:43:08
We're not the taxing entity committee. They are. 00:43:12
And it's not illegal for senators to be misinformed or not understand the bill. And it's not wrong for House sponsors. 00:43:16
For them to understand it, and it's not illegal for developers to run a bill. 00:43:23
Asking for millions of dollars and as long as that legislature goes and puts forth a legal process. 00:43:29
That's totally fine. 00:43:36
I don't think if you go back to October of that time. 00:43:39
None of the citizens of Vineyard understood that that was what happening. 00:43:43
Nobody knew that we were advocating for this bill. 00:43:48
Nobody there was number record. 00:43:51
So we gained the system. 00:43:55
Actually. 00:43:58
The reason that most of us live here are because of the we're not we're not. The RDA is great, totally awesome things that. 00:43:59
And that we don't understand most people. 00:44:06
Know that we want to live in vineyard there has to be a cleanup to make that happen then let's just do the legal process that was 00:44:09
set up right we should ask the bottom line you're having that we created a new. 00:44:16
Cleanup had to happen. We're not arguing that. It's a beautiful spot. 00:44:24
All went in a legal process and here we are right and I completely understand All right guys take it looks like. 00:44:27
You've made your statement. This is the third time that you've made it during this meeting. 00:44:35
It's been made clear we've now had this discussion for the third time. Can I make a point of order? Sure. Or a clarification? 00:44:39
I didn't know about the bill specifically. I knew that when I was voting in 2023 that I was voting on a legal action. 00:44:47
And I supported why we were doing it. 00:44:55
So no, I did not know back in 2020 when I was not on City Council. 00:44:57
And it wasn't, it was made clear to me I was within the law. So that is what I understood. Are there any other comments from the 00:45:02
public? 00:45:06
Come on up please and state your name and where you're from. 00:45:11
My name is David Pierce and I live in the Cascade neighborhood. I just have a couple of questions. 00:45:17
And and that is. 00:45:23
Is. 00:45:25
Our RDA. 00:45:27
Unique from. 00:45:28
In size and in complexity. 00:45:31
From any other RDA in the state. 00:45:34
And the second question that I have. 00:45:39
Is that? 00:45:44
Relatively common. 00:45:47
To treat things that are. 00:45:50
Unique. 00:45:53
In unique ways. 00:45:55
Things that aren't compatible. 00:45:57
Things that aren't. 00:45:59
That are so different. 00:46:01
From anything else that they have to be treated in a unique manner. 00:46:04
And that's my question. 00:46:09
Thank you. 00:46:11
Anyone else? 00:46:14
All right. We're going to go ahead and go out of the public hearing then I need a motion. 00:46:19
Summit, Thank you, Marty, can I get a second? 00:46:28
Second. Second by Sarah. All in favor, Aye. All right. We're now out of the public hearing. 00:46:31
Jas, you heard some of those questions or would you like to address them? Sure. In terms of the size and complexity of the RDA? 00:46:38
The Geneva urban renewal area is the largest. 00:46:45
Renewal area in the state. 00:46:49
You know, I haven't checked a comprehensive search of state history that probably in the history of the state. 00:46:52
I have done some research to compare. 00:46:57
The Geneva urban renewal area to other similar sites around the country. 00:46:59
There's probably less than a dozen that are in this sort of range. 00:47:03
The other types of entities or sites that are similar to this would be like a former airport. 00:47:08
Think, for example, if you ever drove by 70 out of Utah through Denver. 00:47:14
The Denver International Airport used to sit. 00:47:19
A lot closer to downtown Denver, just east of downtown. You know, airplanes used to go right over the freeway as a taxiway, and 00:47:22
they've since moved the airport out to the northeast side of the city. 00:47:28
So, you know, former airports that. 00:47:34
Might occupy hundreds or 1000 acres or more. 00:47:37
Large industrial plants. There's another. 00:47:41
Similar steel plant to Geneva back east in Pennsylvania where they put a shopping mall on it. 00:47:44
And so, yeah, it's, it's a pretty unique RDA and, and urban renewal area. 00:47:50
Given its size, certainly its former industrial use, the. 00:47:56
The sort of nature of what was on the site with thick concrete and different. 00:48:01
Industrial, you know, buildings and things like that and and sort of in an urban area as well. A lot of these sites like airports 00:48:07
tend to be at the edge of town, but the reason you would look at, you know, renewal or community reinvestment on a site like that 00:48:13
is because well. 00:48:18
You know, either that use has now expired or maybe urban and suburban growth is starting to hit up against this industrial site 00:48:24
and there's a desire to move the industrial site. So those are the kinds of things that would impact it. But in terms of Utah, 00:48:29
it's pretty significant. 00:48:35
It's the largest. 00:48:40
And. 00:48:43
You know that the increment financing is only 25 years for any section of it. 00:48:44
But again, the legislative record, they they did talk about that in committee and some of the discussion on the floor about the 00:48:49
size and scope. 00:48:52
Of the RDA for Geneva specifically. 00:48:56
OK. Does he want to address any of the other comments? 00:49:00
Umm, well, I mean, I think the memo kind of does. 00:49:04
You know, talks about the TIF collection period, which was a question. 00:49:09
There's questions about the state auditor. We've, you know, we've been having meetings and talking to the state auditor about 00:49:13
different things that they've requested and. 00:49:16
Haven't heard back yet. We anticipate hearing back from them. Well, and I think the question, I don't think it was a question 00:49:21
about the state auditor as much as it was that they didn't understand this was a legal process that had been done that was not. 00:49:26
Everyone. 00:49:33
But no one's questioning the legality. From what I understand, you said that they had thought it was out of compliance and then 00:49:35
you found out that it was had not done been done before. 00:49:40
And it had not been done since that time. Keep going, Josh. 00:49:46
I mean, I will say to that, to the state audit piece of it, I mean having been an auditor, county auditor. 00:49:51
Your Jack of all trades, master of none. So in their defense, they're not a master of of. 00:49:57
Everything they have to do some research, just as I did with the code and the legislative history. But I will say I got the 00:50:02
impression early on in talking to some of the people, the state honors office. 00:50:07
We're applying wrong sections of state code. 00:50:13
And so I think it was helpful to kind of go and do the research, make sure that we had followed the process and make sure we were 00:50:16
looking at the right sections of state code that were applicable in our in our case. So we have addressed this before in our. 00:50:22
Meetings The statutory 17C1402-408 that talks about the difference between the TEC meeting since 2011. 00:50:29
Versus our group that meets annually? 00:50:40
I mean that makes. 00:50:43
In our RDA meetings, did we want to address that now or should we address the legalities of that at a later time? Jimmy, I don't 00:50:45
know if you want to add to that or if you'd like me to move on and we can post something on that later. 00:50:51
We've we've talked about it in prior meetings. So I don't know if there's a point in delivering it if we. 00:50:58
Put an answer in writing, we could do that. OK, we'll go ahead and put an answer. I would like people will be informed about it 00:51:04
and people received that at that time. OK. I would like to address David Pearson comment because I believe it's actually factual 00:51:09
in a very good statement. 00:51:13
If you could imagine a tiny little city like this leading the largest RDA in the state. 00:51:19
And the undertaking for it to be successful of that magnitude. 00:51:25
Would be very important. 00:51:30
And that's actually what I'm arguing is you would want the leadership and the expertise and bringing in the school district every 00:51:31
single year they have. 00:51:36
Manpower. 00:51:41
They have the ability to oversee you. 00:51:42
The county has the exact same thing and it would be ran and it would be more successful. And so having the taxing entity committee 00:51:45
that hasn't met for 11 years. 00:51:49
And saying statutorily, we don't have to do that. 00:51:54
And then statutorily, we're going to run a bill to hey, words is never, we're just not going to tell. We'll notify them that we're 00:51:57
going to extend this period of time. It's like. 00:52:01
I wouldn't want to bring them in especially. 00:52:05
If the developer is the one asking for it, he obviously. Developers obviously represent one value and they're really great people 00:52:08
and we want them to be successful. 00:52:13
But they also don't represent the taxpayers if it's good or if it isn't. 00:52:18
The Utah Taxpayers Association already deemed that half of the RDA was a bad idea when it started. 00:52:22
For the first 150 million? 00:52:28
And so why not bringing in that expertise like I agree with you, it's huge that that's what we're trying to say is. 00:52:30
That is nation. 00:52:38
I'm going to allow this because she's addressing you so you can come to the microphone because there's a back and forth. 00:52:41
Yeah, this is David Pierce. 00:52:47
He lives in Vineyard. 00:52:50
To address the absolute uniqueness. 00:52:56
Of this project not only in Utah. 00:52:59
But as Josh has pointed out. 00:53:03
In the entire nation. 00:53:06
I mean less than a dozen. 00:53:08
Perhaps. 00:53:11
Are this size. 00:53:12
And it is. 00:53:14
Absolutely common. 00:53:16
To treat absolutely unique. 00:53:19
Things differently. 00:53:21
Because there is nothing to compare. 00:53:24
Thank you. Hold on. I'm gonna, I'm gonna. I'm gonna. Hold off for a second. 00:53:27
This is the fourth time that we're having this discussion. I'm going to address it because it's it's important that this is the 00:53:33
fourth time. 00:53:37
We have experts. 00:53:41
That are addressing this. 00:53:43
That have explained the law and it is being treated uniquely we have. 00:53:45
The state that has a very watchful eye on it and is making sure that as a unique asset to the state that they've invested in, it's 00:53:50
being taken care of, we are going to move away from this. 00:53:56
Council is there or board, is there anything else that you want to talk about before we adopt the tentative budget because that's. 00:54:02
We're not adopting it. Just kidding. There's no action before we close this meeting. 00:54:11
I just want to say. 00:54:16
To the people listening. 00:54:19
Just, well, Josh. 00:54:21
A while ago did a review. 00:54:24
On the benefit to. 00:54:26
Alpine School District and. 00:54:29
And having this RDA. 00:54:30
What a big difference it is. 00:54:33
And to continue. 00:54:35
The success of it and all you have to do is look around Vineyard. 00:54:36
And everything that you see, the RDA is touched in one way or another. 00:54:40
We wouldn't. Most of us wouldn't even be here. 00:54:44
If it weren't so. 00:54:46
Something horrible is happening. Will you yield to a question just. 00:54:52
I know, just a question. 00:54:56
I don't know. Well, no, it's just one question. 00:54:58
If it's so great, the previous law only asked the school district. 00:55:02
To say is this good? 00:55:07
So why did we run? You know what you're just asking. You're giving these statements out. We don't have anyone from the Alpine 00:55:09
School District. No. But if we said over the life of this, you will be paid 10s of millions, if not hundreds of 1,000,000 more 00:55:15
than what you would get if it weren't remediated, what do you think their answer would be? All right, just answer my question. 00:55:22
Well, that what do you think their answer would be? We take what we have without it, without it being remediated. 00:55:28
Or we remediate it and you get 10s of millions, maybe hundreds. I can tell you. I can tell you what it would be. 00:55:35
They already agreed to it. They put the investment in early, they created the RDA and they gave up that tax it. 00:55:42
Increment knowing. 00:55:50
The investment that would go in knowing. 00:55:52
That they would be giving that up in order for the people that sit before us to move into the community. 00:55:55
This is the fifth time we are discussing this. 00:56:00
The reality is this. 00:56:04
There have been statements made that are just assumptions, but the reality is before us. The data is before us. It is now written 00:56:06
in memos if you want to go back and look at what is in writing. 00:56:12
You can. It is accessible to you. You can look up the data and you can see how this has benefited the people of Vineyard. 00:56:18
You can look up what future benefits it will have. 00:56:24
That is available to you. 00:56:29
These discussions that we're having are not fruitful. 00:56:31
They don't have to deal with the benefit of the people. 00:56:34
They do not have to do with the business. 00:56:37
At hand. 00:56:39
And saying that things were done inappropriately is just not accurate. 00:56:40
Thanks for joining. 00:56:44
Appropriately, all of these things have been addressed and now, John, the comment that you brought up will be put in writing and 00:56:46
you will have that before you as well. 00:56:50
I'm going to adjourn this meeting and we'll see you in about 10 minutes for the next. 00:56:54