Community Reinvestment Agency

Minutes of the Millcreek Community Reinvestment Agency July 10, 2023 7:00 p.m. Regular Meeting The Community Reinvestment Agency of Millcreek, Utah, met in a regular public meeting on July 10, 2023, at City Hall, located at 3330 S. 1300 E., Millcreek, Utah 84106. The meeting was live streamed via the City's website with an option for online public comment. PRESENT: Board Members City Staff Jeff Silvestrini, Chair John Brems, City Attorney Silvia Catten (excused) Elyse Sullivan, Agency Recorder Thom DeSirant Francis Lilly, Assistant City Manager Cheri Jackson Kurt Hansen, Facilities Director Bev Uipi Lisa Dudley, HR-Finance Director Mike Winder, City Manager Attendees: David Baird, Trisha Bradford, Rick Hansen, Chief DeBry REGULAR MEETING: 7:00 p.m. TIME COMMENCED: 7:50 p.m. Chair Silvestrini called the meeting to order. 1. Olympus Hffls Community Reinvestment Area Budget Revision Discussion; Mike Winder, Staff Chair Silvestrini said the Agency was considering a potential budget in anticipation of a potential Porsche dealership. Mike Winder said the Agency approved the creation of the Olympus Hills Community Reinvestment Area in 2018 with a budget and plan. There was no eminent development at that time, so the area had been on pause. Staff was proposing to update it due to the potential Porsche dealership application on Wasatch Boulevard and neighboring village center. The property tlie dealership was looking to acquire was expensive and there are development impediments on it, which is the reason why the property has been vacant. The city has a unique opportunity to close the price gap. The %cncy has the option to share a portion of the property tax this use would generate back with the developer to help fund it as well as share some of sales tax back with it. He passed the Agency a draft spreadsheet with two options; a and b. Option A is having other taxing entities partner in participation, similar to a typical cornrnunity reinvestment area. Salt Lake County would not participate in this option as the existing Porsche dealership was already in Salt Lake County. The city would share back the vast majority of the property tax increment with the Porsche dealership. Granite School District Millcreek CRA Meeting Minutes 10 July 2023 Page 2 of 2 tended to offer a higher percentage of property tax (75%) with a sliorter timeframe (15 years) and the other taxing entities would typically give 65% of property tax over 20 years. In this scenario, $3 million in property tax would be generated to reimburse the developer. Millcreek would share 50% of sales tax for the first 5.5 years of its existence, then 40% for the next 5 years, then 30% for the next five years, and then 25% for the next five years. This would provide them with $6.4 million. Option B was if the taxing entities did not participate. This would require a 55% sales tax share rate for the full 20 years, which would still provide the city with $200-350,000 sale tax dollars per year, equivalent to a gocery store, that the city would not have otherwise. Winder asked for direction from the Agency Board. Board Member Jackson asked about traffic impacts and other concerns the residents had. Winder said from a financing perspective he was trying to get the dealership here as the Economic Development Director and Francis Lilly, as the Planning and Zoning Director, would account for everything else with the potential use through the public meeting process. Lilly said the peak daily trips had fewer daily trips than most other uses, the least traffic impact possible on the property of the proposals he had seen so far. The dealership would also be closed on Sundays. He would provide a more fornnal analysis in the future. Chair Silvestrini felt it was appropriate for staff to have conversations with the other taxing entities on their receptivity. Board Member DeSirant pointed out the diversity of sales tax this would bring to the city. The Board agreed. Winder pointed out the existing property taxes would still come into the city, just the incremental would be given back. Millcreek was the largest city in the state without a new car dealership. 2. Approval of June 26, 2023 Meeting Minutes Board Member DeSirant moved to approve the June 26, 2023 meeting minutes. Board Member Jackson seconded. Chair Silvestrini called for the vote. Board Member DeSirant voted yes, Board Member Jackson voted yes, Board Member Uipi voted yes, and Chair Silvestrini voted yes. The motion passed unanimously ADJOURNED: Board Member Jackson moved to adjourn the meeting at 8:04 p.m. Board Member DeSirant seconded. Chair Silvestrini called for the vote. Board Member DeSirant voted yes, Board Member Jackson voted yes, Board Member Uipi voted yes, and Chair Silvestrini voted yes. The motion passed unanimously. APPROVED:mhair Date?':)?"21Z Attest: Avan,Recorder E'rll!'e