The Tooele City Redevelopment Agency and Tooele County School District plan to sign an interlocal agreement to entice commercial development on 31 acres of open land near Main Street.
The City’s RDA, which is comprised of Mayor Debbie Winn and the City Council, passed a resolution Wednesday night to participate with the school district and offer tax incentives for the land located south of 1000 North and west of Main Street.
The property, called a community reinvestment project, is owned by the City’s RDA and is targeted for future commercial development. As part of the agreement, the school district will forfeit a portion of its future property tax income from the project site to help offer incentives to prospective businesses.
Randy Sant, the city’s RDA consultant, said the property would include mixed residential and commercial development. Any future property taxes generated from residential development in the area is not part of the agreement.
“Last December, I had an opportunity to meet with the school board to discuss their participation in this joint agreement,” Sant said. “I appreciate that the school board took our request seriously. At the end of the meeting, they agreed that they would be willing to participate.”
That participation includes the school district forfeiting up to $1.25 million in total tax increment over 15 years if the property is developed. The tax incentives would begin when commercial tenants purchase property in the project site.
RDA member Scott Wardle said there has been a lot of discussion during the past year about the RDA working with the school district on tax increments for the property.
“It was important for us to know the concerns of the school district and find ways to handle their concerns,” Wardle said. “This is an absolutely tremendous agreement. As we go forward it is important for all taxing entities to work together. I think a keyword is to have flexibility as we go forward.”
RDA Chairman Brad Pratt lauded Sant for his work on developing the agreement.
“I know you have done a great job working with the school district the past few months on this agreement,” Pratt said to Sant at Wednesday’s city council work meeting.
Sant said the City’s RDA wanted to make sure the school district was on board before it began negotiations with the county.
“It would be impossible to do what we want without an agreement with the school district,” Sant said. “We will start the process with the county in a few weeks.”
The taxing entities involved include the city, county and school district.
“Time is money,” Sant said last October about the project. “We’re trying to be proactive and have everything in place with this community project reinvestment area so that when a company is ready to move in, we can also be ready.
“There is a lot of competition among states and cities for economic development,” he added. “Cities across the country are doing the same things we are trying to do with marketing to bring companies in. We’re trying to gain a competitive edge through these community reinvestment project areas.”
Sant also said Wednesday the interlocal agreement was a team effort between the city, school board and school district superintendent Scott Rogers.