The Salt Lake City Council is reviewing an action item regarding a tax increment reimbursement agreement with property owner NWQ, LLC. The resolution would authorize the Mayor to negotiate and execute the agreement according to the terms in an attached term sheet.
This proposal stems from the city's efforts to implement the Northwest Quadrant Master Plan.
The agreement currently before the Board represents the first phase of development on land owned by NWQ, LLC. This phase includes 375 of approximately 1,500 total developable acres owned by the company. The remaining 1,500 acres of developable acreage are owned by Kennecott and fall under a separate development agreement.
The Redevelopment Agency (RDA) Board will consider approving a resolution for a property tax increment reimbursement of up to $28,000,000 to the developer over a 20-year term. The actual yearly reimbursement amount will be based on the increment generated specifically by the project.
Regarding financial impact, officials stated the city does not have $28 million in reserve funds for this purpose. Instead, the property owner is responsible for paying up to $52.5 million in property taxes over 20 years, depending on the final assessed value of the project.
To evaluate potential public benefits, the City paid for a public benefits analysis using the firm Lewis Young Robertson & Burmingham (LYRB), which was selected through a competitive Request For Proposals process.
In terms of environmental impact, more than 4,000 out of 7,000 acres of critical migratory bird habitat has been set aside from developable areas as part of the Northwest Quadrant Master Plan. Additionally, parts of the project area located within the eco-buffer area will be required to use sustainable bird-friendly windows in their building designs.
