Taxing Entity Committee
Redevelopment Agency of
Tremonton City, Utah
Minutes
June 10, 2020
3:00 p.m.
Tremonton City Council Chambers
Tremonton City Hall
102 South Tremont Street
Tremonton, Utah 84337

1. Welcome

Chairman Fridal called the meeting to order at 3:04 p.m. and welcomed those present. The meeting was held at the Tremonton City Council Chambers on June 10, 2020 at 3:00 p.m.

2. Introduction of Committee Members

a. Identification of voting members of the Committee and which taxing entity that they represent

The following Taxing Entity Committee Members were in attendance: Board Member Rod Cook representing Box Elder School District, Board Member Mitch Zundel representing Box Elder County, Director Shawn Warnke Tremonton City, Mayor Roger Fridal Tremonton City, and Linsey Nessen TEC Secretary.

Excused: Scott Jones, Utah State Office of Education, Brett Baltazar, Utah State Office of Education, Lyle Vance, Tremonton City, David Forsgren, Bear River Water Conservancy District and Box Elder Mosquito Abatement, Steve Carlsen, Box Elder School District, and Jeff Scott, Box Elder County.

3. Approval of Minutes – June 25, 2019 – stands as approved

4. 2019 Tax Increment and Distribution – Shawn Warnke, RDA Executive Director

a. Tremont Center Community Development Project Area

1. Tremont Center, LLC

Director Warnke said this project area is progressing and has been successful. It is a little off from where we projected, but we will see if we can make up some ground in the years to come, as far as tax increment and where we hope to be in the development process.

To give some perspective, the base year for this project area is $10.3 million and in four years we have added $15.8 million of additional value. The project has a 15 year life, or until we reach $4.3 million in increment received. Year to date we have received $361,000, which has all been distributed back to the developer for infrastructure improvements they have made. Year to date the developer has submitted about $1 million of actual expenses incurred that are eligible for reimbursement.

The good news is that the developer is investing in the project area and with that, the City has moved money over to the RDA in order to be able to undertake projects which we hope there will be increment to reimburse the City. The City has also invested $1 million in infrastructure improvements, primarily road improvements. Those investments have opened up opportunity for Crump Reese Motor Company to develop in-place and some other development that is occurring in this project area.

At this point, each taxing entity is receiving 25% of that $15.8 million in taxable value and increment. This year, Box Elder School District received $21,000, Box Elder County received $7,000, and Tremonton City received $9,000 so we are also seeing some financial benefits as well as the project continues to grow.

As mentioned, we are off where our projections had hoped to be so right now, year to date, we hoped to have realized $707,000 in increment and have only realized $361,000. We hope to see more investment coming in the future. We do have some additional projects that have been approved. One large project is for housing and is a $25 million investment potentially. Unfortunately since this is primary residential, the taxable value is only 55% so we won’t realize all the value and increment. Mitch Zundel asked if these will be apartments and thought these would be taxed at 100% when owned by a single owner. Director Warnke said they are apartments and still count as someone’s primary residence and are taxed at 55%.

There are still 13 or 14 undeveloped acres of commercial property in the project area and the next barrier in order to open that up a little further is for the developer to finish burying the canal, which they are working towards. That could occur, not this year, but within the next year or so. There is continued interest in Tremont Center, one noteworthy item is that the City moved money from its general fund into the RDA so the RDA could purchase three homes that were located in Tremont Center and tear those homes down. It really made a difference and legitimized it as a commercial area.

The developer does have a building that is approved and ready to go, but COVID has affected the ability to get financing in the short term, so hopefully that issue resolves itself, but the next three or four months they aren’t anxious to approve any commercial projects. So there could be another building that goes up rather soon.
Tremonton City appreciates all the taxing entities and their ongoing support.

Mitch Zundel asked Director Warnke to talk about the trail corridor the City is purchasing that runs north to south through the City and would go through Tremont Center and how that might benefit the residents.

Director Warnke said the City has been working on a trail corridor that runs from Lay-Z-Boy to the interstate through the core of the City and this project area. The emphasis of this trail is to be a transportation alternative so residents have a corridor that is dedicated to either pedestrians or cyclists without vehicles. It also touches on the densest parts of the City and other high density developments are happening around the trail so it has the potential to be used as an alternate form to get people moving. The trail connects in close proximity to McKinley Elementary and isn’t far off from the High School or North Park Elementary so we see it as a corridor for children to walk to school.

We have been acquiring the corridor and have all but one parcel that is about 200 feet and we are working with that owner. They want to do a 10-31 exchange and are willing to sell to the City, but need to find another parcel of property to buy first so they can roll the proceeds over into the property they purchase without tax consequences.

We are doing our best to preserve opportunities and amenities that will serve the City well and will feed into the City’s central business district and also to parks and schools. We think it is going to be an important amenity especially as the City continues to develop and becomes more dense and suburbanized.

Rod Cook said the west end of Tremonton is starting to look way good and this is a great project. Mitch Zundel asked if there are any sources of funding for sidewalks for schools. Rod Cook said he is not aware of any funding for that. Director Warnke said there is a UDOT grant for that. Mitch Zundel suggested checking into that for funding since the trail goes by some schools. Rod Cook said the School District would be willing to partner with the City on a grant if there is one available.

5. 2019 Annual Agency Reports – Shawn Warnke, RDA Executive Director

a. Tremont Center Community Development Project Area

Items 4 and 5 were discussed together.

6. Questions or comments from TEC Committee members

There were no questions or comments.

7. Adjourn

The 2020 Taxing Entity Committee Meeting adjourned at 3:19 p.m. by consensus of the Committee.

The undersigned duly acting and appointed secretary for the Taxing Entity Committee hereby certifies that the foregoing is a true and correct copy of the minutes of the Taxing Entity Committee Meeting held on the above referenced date. Minutes were prepared by Linsey Nessen.

Dated this day of , 2021.

____________________________
Linsey Nessen, Secretary