Nucor Project Area tax increment explained

Nucor Project Area tax increment explainedBrigham CityAugust 24, 2026The City Council approved a resolution on Thursday, August 6, to trigger a tax increment for the Nucor Towers & Structures project.The parcel where Nucor Towers and Structures is located is part of the Golden Spike Project Area of the Utah Inland Port. During the meeting, Community and Economic Development Director Tom Kotter explained the tax increment structure that allows for funding public infrastructure as well as incentivizing economic development.Essentially, the taxable value of parcel where the Towers and Structures facility is located used to be quite low because the land was agricultural. When the land is converted to an industrial use and has a facility built on it, the taxable value increases dramatically.The tax increment strategy allows the tax from the additional value of the land to be used to pay for the public infrastructure necessary to develop the land, as well as pave the way for additional development.Here are some common questions and their answers:What is a tax increment?In this context, a tax increment is the difference between the property tax assessed after a project area has been initiated and what was assessed prior to the initiation. The land where Nucor Towers & Structures is located was previously zoned agricultural and was therefore taxed at a very low rate. With its new zoning and with the manufacturing facility located there, the parcel will be assessed at a much higher rate. This graphic illustrates the difference and outlines how the increment is distributed.How long does the agreement last?This is a 25-year agreement. At the end of that time, all property tax revenues will be directed to the taxing entities.What taxing entities get this increment?All of the entities that currently receive taxes from the parcel will continue to receive taxes from the increment in the same proportion they currently receive them. This includes Box Elder School District, Brigham City, Box Elder Mosquito Abatement, and more.Why does Brigham City allow this kind of project?Tax increment funding allows Brigham City to develop public infrastructure without our residents having to shoulder the financial burden through property or sales taxes. What does Brigham City get out of this?First, we get a substation that our taxpayers and power customers don't have to pay for. That substation provides additional opportunities for both residential and commercial growth and adds resilience to our grid. Second, we get a company that provides 200-300 jobs that pay at least 110% of the county average. Isn't this just giving Nucor money that should go back to the community?Approximately 96% of this money DOES go back to the community through property taxes, developed infrastructure that will benefit more than just Nucor, wetlands mitigation, and housing initiatives. Even the portion given to Nucor as an incentive must remain in Brigham City and be spent in the project area.Will money from this project be distributed to other cities or to the state?No. The agreement stipulates that other than the 4% for administrative costs, tax increment money from the Nucor Towers and Structures parcel will remain in Brigham City.Watch the City Council presentation from Tom Kotter below: