Taxing Entity Committee
Redevelopment Agency of
Tremonton City, Utah
Minutes
June 18, 2015
3:30 p.m.
Tremonton City Council Chambers
Tremonton City Hall
102 South Tremont Street
Tremonton, Utah 84337
1. Welcome
Board Member Lyle Holmgren called the meeting to order at 3:38 p.m. and welcomed those present. The meeting was held at the Tremonton City Council Chambers on June 18, 2015 at 3:30 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 Clint Burt representing the Bear River Water Conservancy District and Box Elder Mosquito Abatement, Board Member Rodney Cook representing the Box Elder School District, Board Member Mitch Zundel representing Box Elder County, Alternate Jim Christensen representing the Box Elder School District, Board Member Lyle Holmgren Tremonton City Councilmember and Chair of the meeting, RDA Director Shawn Warnke Tremonton City, and Darlene S. Hess TEC Secretary.
Also in attendance was Tremonton Treasurer Sharri Oyler.
Excused: Roger Fridal Tremonton City Mayor, Dr. Ronald Tolman Box Elder School District, Jeff Scott Box Elder County, Natalie Grange, Utah State Office of Education, and Alternate Jeff Reese Tremonton City Councilmember
3. Approval of Minutes – June 19, 2014
Minutes of the June 19, 2014 Taxing Entity Committee Meeting were sent to the Taxing Entity Committee (TEC) members for review. No corrections were made; therefore, the minutes stand as approved on September 29, 2014.
4. 2014 Tax Increment and Distribution – Shawn Warnke
a. Freeway Interchange Project Area
Director Warnke told the committee that packets that were sent to them included a copy of the letters that accompanied the checks sent to those the RDA has obligations for. The packets also included the annual report and tax increment and how it was distributed. The Tremonton Freeway Interchange project area encompasses the area from La-Z-Boy to MOM Brands. The RDA received $171K from the project area and has three obligations: 1) the UTOPIA – Fiber Optic Project which received $75K 2) MOM Brands – Sewer Treatment Capacity at $96K and 3) for Tremonton City to repay the Utility Fund for infrastructure built for the project area. The City does not anticipate being repaid for the infrastructure as there is not enough tax increment to meet the obligation. There is one year remaining on the project area with the property tax for 2015 being delivered to the RDA in 2016.
b. West Liberty Foods Economic Development Area
The West Liberty Foods EDA received tax increment totaling $1.4M. The first obligation associated with this project area is 20% ($289K) which goes to the RDA for affordable housing. The rest of the tax increment is distributed on a percentage based on taxes paid by West Liberty Foods and Millard Refrigeration. West Liberty Foods has 90% of the taxable value and received $1,031,039 while Millard Refrigeration Services, LLC received $126,268 for the other 10% of taxable value.
5. 2014 Annual Agency Reports – Shawn Warnke
a. Freeway Interchange Project Area
Director Warnke noted that the Freeway Interchange Project Area is currently receiving 60% of tax increment and the taxing entities the other 40%. It has been a good project that helped realize other industries. Director Warnke thanked the taxing entities for their support with the project area.
b. West Liberty Foods Economic Development Area
The West Liberty Foods EDA has three years remaining with over $100M in assets of taxable value.
c. Tremont Center Community Development Project Area
Director Warnke noted that the Tremont Center Community Development Project Area is a significant area for the City and thanked the taxing entities for their support. It will help the City accomplish the vision for the downtown revitalization of Main Street. It is a fifteen year project and increment is expected for 2016 tax year which the RDA will receive spring of 2017. The ShopKo is looking nice and a gym is in the works as well. Mr. Zundel thought there was a fast track grant for the gym at State level.
Director Warnke noted that the businesses will be good for Tremonton. The project area will last fifteen years or when it reaches $4.3M in tax increment received by the RDA, whichever is to occur first. Mr. Burt believes the project area will be a great addition to Tremonton City. Board Member Holmgren noted it has already made a difference and will be nice to see the sales tax remaining in the City. I hope it will keep some of our citizens home for shopping.
Ron Cook heard there are grocery stores interested in the project area. Director Warnke noted there has been a lot of discussion with potential tenants. Mr. Zundel stated that Roger Brooks is a nationwide consultant to promote tourism in Box Elder County. Mr. Brooks’ Trainings Show believes that a good downtown area will help make Tremonton the destination, not just a drive through. Good things are happening and moving in the right direction.
6. Questions or comments from TEC Committee members
Mr. Holmgren asked if there were any questions or comments from the TEC Committee members. Mr. Cook stated that he loves short meetings but he wanted to ask a couple of questions. He asked the Committee to explain to him where the 20% of tax increment deducted from West Liberty Foods EDA for affordable housing is being spent. Director Warnke explained that the money is going to a Neighborhood Improvement Program and Box Elder County is participating. Grant money from Neighborhood Non Profit in Logan has been utilized to help rehabilitate roofs and do other exterior improvements. The money is being put to good use and there is still money available.
Mr. Zundel noted that Box Elder County and Brigham City also have more funding available. It was a matching grant with Box Elder County, Brigham City, and Tremonton City all contributing $50K.
Director Warnke remarked that the Cities and County were to create a housing plan associated with the project area. Tremonton’s housing plan includes everything in the incorporated city limits. Mr. Zundel stated there have been window projects done as well. Director Warnke noted the funds could also be used for ramps and stairs. Mr. Zundel commented that the use of the funds is flexible and encouraged the Board Members to look for other needs that could be addressed.
Mr. Zundel told the taxing entities they will be receiving the full benefit this year from Washakie Renewable Energy.
7. Adjourn
Motion by Jim Christensen to adjourn the meeting. Second by Clint Burt. Vote: Jim Christensen – aye, Mitch Zundel – aye, Rodney Cook – aye, Clint Burt – aye and Lyle Holmgren –aye. Motion approved.
The 2015 Taxing Entity Committee Meeting adjourned at 3:55 p.m.
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 Cynthia Nelson.
Dated this day of , 2015.
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Darlene S. Hess, Secretary