The Lehi City Council and the Lehi City Redevelopment Agency moved to formalize a major housing and transit reinvestment initiative for the Thanksgiving Point area during meetings held on Oct. 21, 2026. The actions establish an interlocal agreement to manage tax increment revenue and a participation agreement with a developer to advance mixed-use, transit-oriented development.
Tax Increment and Funding Structure
The Lehi City Council approved Resolution #2026-63 on Oct. 21, 2026, which authorizes an interlocal agreement between the city and the Lehi City Redevelopment Agency. This agreement is required by Utah Code § 63N-3-607(2)(c)(ii) before the Agency can receive funds from the Thanksgiving Point Housing Transit Reinvestment Zone (HTRZ).
Financial Protections and Limits
Under the terms of the agreement, the City will pay the Agency 80% of the tax increment generated by the HTRZ. The total amount of these funds is capped at $122,144,769, as requested in the city's approved application. The agreement specifies that the City will only be obligated to pay tax increment that is actually collected from the HTRZ and distributed by the county. Furthermore, the agreement protects the City by ensuring no single parcel can trigger the agreement more than once and limits collection to no more than 25 years per parcel.
Development of Thanksgiving Point Station
The Lehi City Redevelopment Agency Board also moved to approve a participation agreement with Thanksgiving Station Development Partners, LLC. This agreement, identified as Resolution #R2026-11, supersedes a prior participation agreement that had been approved on July 14, 2026. The project involves the development of a mixed-use project on approximately 30.72 acres of land within the HTRZ.
Mixed-Use Project Goals
The development planned for the Thanksgiving Point area is intended to include a variety of uses, including Class-A office space, retail, restaurants, and multi-family housing. The Agency's agreement with Thanksgiving Station Development Partners, LLC ties the participant's maximum reimbursement to the substantial delivery of retail space to support the mixed-use character of the zone.
Affordable Housing Mandates
A key component of the HTRZ development is the inclusion of affordable housing. The participation agreement with Thanksgiving Station Development Partners, LLC requires 12% affordable housing across all phases of the project, with a minimum of 10% required in each individual phase. This requirement is intended to align with the objectives of the HTRZ Approval, which was granted by the Governor’s Office of Economic Opportunity on Nov. 13, 2023.
Strategic Planning Objectives
The redevelopment efforts are designed to implement the Thanksgiving Point Area Plan and advance the objectives of the HTRZ Act by promoting housing and transit-oriented development. The Agency Board noted that the participation agreement is an administrative act that carries out the policy established by the HTRZ Approval and the Interlocal Agreement between the City and the Agency.
Agency Oversight and Governance
The Lehi City Redevelopment Agency also considered Resolution #R2026-10, which involves a participation agreement with Stack Soccer Field LLC. The Agency Board's actions are aimed at facilitating development through the use of tax increment generated by the HTRZ, while ensuring that the City's General Fund is not pledged to the agreement.
