Cc - Regular Meeting

MOVED TO OUR SECOND ACTION ITEM, WHICH IS THE CONSIDERATION OF A RESOLUTION AUTHORIZING THE ACTIVATION OF THE NEW CORE PROJECT AREA PARCEL FOR THE 2027 TAX YEAR. WE'LL INVITE OUR COMMUNITY DEVELOPMENT DIRECTOR, MR. TOM COTTER, TO PRESENT.

THANKS. WE ALSO HAVE STEPHANIE PACK WITH US FROM UTAH INLAND PORT. We are excited to have this trigger before us tonight. Inland Port has been a great partner for Brigham City. So we'll just go quickly through some of this and what is the Golden Spike Inland Port and why we're triggering it and what does that exactly mean and all that fun stuff. So as the council is very aware, we entered into agreement with the Inland Port to do some project areas inside Brigham City's corporate limits. There are also other project areas inside Boxlitter County, Tremont and Garland, Willard, and it's all part of the Golden Spike Inland Port project area is what you'll hear. Regardless of where they're located, that is the project area for Boxlitter County. And we've worked with the Inland Port, the Inland Port's helped us to promote strong economic development in that project area and those parcel areas inside Brigham City. They've helped us go and recruit businesses and help with infrastructure development. Because really the long-term vision here is let's get in advanced manufacturing, help improve freight movement. How do we get the rail opportunities? And really, how do we help regional economic growth? And the inland poor, I can't say enough good things about what they have helped the city do and what they've helped Box River County do as a whole. Christina, if you want to hit the next little slide. So a little timeline kind of where we're at and what's happened is in 2023, we joined the Golden Spike project area. 24 through 26, we've worked with the inland port to help refine some of the boundaries. We've also expanded opportunities. We've added some parcels into the project area. And today we continue to work with them to really leverage their resources to to help infrastructure investment in our community in Brigham City. And so we talk about tonight as a triggering resolution. Really, at this point, it's kind of a formality in the process. So what we're talking about here, that's why you can see the wonderful pictures in the corners, it's new core towers and structures. Super excited that they located here, that they're building here. For the public that doesn't know, they're the huge new building, buildings that are going up down there on Waterly Lane in that area. We're excited to have them to add to the new core campus. That is a part of our community, and they've been awesome. So the triggering resolution, what that does, part of the Inland Port project areas is, hey, we're going to use some of the tax increment that's generated inside that project area, inside that very specific geographic boundary. We're going to use the tax increment. to help with the infrastructure that is needed for a lot of these major lifts. And also it's to help our economic development continue inside the city. So Christine, if you want to hit the next one. This is just kind of a very, these are not the real numbers for what's going to happen. So every, it functions, the inland port project areas, you're familiar since you serve as the RDA board for the city. They function in a very similar manner. So we have a base year value. So in this example, we say, hey, the base year value is $10 million. That base year value, the taxes generated off that, they will always continue to flow to the entities. So whatever they were getting before the project came in, they continue to get that money. And so on the next chart, you can see that little green. So that's when we start talking about incremental value. right so we're going to trigger it in 2027 because that's in property tax world the lien dates january 1st 2027 you actually don't pay the taxes until november so we'll the county collects the taxes they will re not reimburse they will send distribute that money to the inland port And then the inland port will work with new core in the city and the distribution of those funds to pay for things. So we're back to incremental growth. So whatever is above that base year taxable value, that is what is coming to the inland port, the incremental value. So in this scenario, it's not up there, but the incremental value, so now let's just say after we trigger, it's worth $12 million. So based on how the inland port is structured, if we were to assume a tax rate of just .01 for the whole area, the taxing entities are gonna get $5,000. And it's gonna be distributed, majority of that line share is gonna go to the school district. THAT'S JUST HOW OUR TAX THINGS WORK. THE SCHOOL DISTRICTS AND MOST ENTITIES IN THE COUNTY, IT'S ABOUT 65, 70% OF INDIVIDUALS' TAX BILL. SO THE ENTITIES WILL GET NEW MONEY. THE INCREMENT THAT DIDN'T EXIST BEFORE. BECAUSE THINK ABOUT IT, THIS WAS VACANT FARMLAND. IT WAS IN AG. IT WAS IN GREENBELT, WHICH WE LOVE. WE'RE GRATEFUL FOR FARMERS AND THE STUFF THEY DO THERE. BUT WHEN THEY TRANSITION, GREENBELT IS TAXED VERY, VERY LOW. So anyway, now the school districts and the cities and mosquito abatement, we are now going to start receiving money off of this project. The 75%, so 15,000 in this case, is going to go to the inland port. In our agreement with the inland port, they get... off before anything ever happens. 4% goes to the administration of this project area because there's a lot to do there. There is a lot that the inland port is handling for us. 2%, this is a new requirement that goes in, it goes to wetland mitigation. And that is required to stay here. Like it's not money that's gonna go down and do wetland mitigation in other parts of the state. It has to stay in the project or project adjacent, but it will stay here. And the next part is 4%, and that goes to the affordable housing portion. That's what we talked about a few weeks ago when we sent the money with Habitat for Humanity. So this money coming now will also help the city do more affordable housing. So once all that goes through, the remainder, after we take the $15,000, subtract all that off, $13,500 is then the imports. Well, they have a contractual obligation through a development agreement in how their structures are set up. 6,231 of that is going to be used as a project incentive. And so you can see down there, really, what do we use for project incentive? It's, hey, there's site development. There's building instructions. It's job and wage. There's a lot of things that go into it. And they're all post-performance standards that have to be met for that incentive to take place. The lion's share of what's going to come, the bigger share, It has to be, so $7,269 in this made up example of numbers would come for public.

We can't stress enough, this is fictional numbers.

Yes. These are just easy numbers to follow through. They're going to be much, much bigger for the new core project area. So in this scenario, $7,269 would have to be used for public infrastructure. Now inside the new core project area for towers and structures, That big lift we had there, as the council is aware, is an electric substation. Way back, I think it was probably only two years ago, but it feels like forever ago, it was part of our bond. We went and bonded for Project Charm. That's what this is. Project Charm is Nucor Towers and Structures. So in our development agreement with Inland Port and Nucor is they will be using that money, the Inland Port will be using that money to pay for that infrastructure. And like I said, the Lions, I gotta stop saying the Lions share, but the big lift there is electric. It's the substation that has just been energized. So you can see already the benefit of being partners with the Inland Port and with Nucor to get infrastructure that the city needed and to use tax increment that's being generated just in that geographic zone. There's no residential people in that area. There's no one of that. It's Nucor. It's the new towers and structures. We're using their tax increment to help fund that infrastructure that the city needed. So it's awesome. So the trigger resolution, also what we're doing tonight is we're saying, hey, we're gonna start, we're gonna kick it off, 2027 is the year, and it's gonna run for 25 years. So that's how that works. And again, we're excited for this to be happening, excited the new Corps is here. We've talked with their general manager quite a bit. They're excited to be here, part of the community. As Superintendent Mecham talked about that meeting, Towers and Structures was there. They're representing and they want to know how they can get more involved in the community. So we're excited. So any questions? I talked a lot about what, how it flows. And Stephanie can also correct me if anything was said incorrectly, but.

Comment, I appreciate you dumbing it down for us. I really do. It was easy to follow. You always lay it out really well. And it does show a lot of plus for the community, for tax base, for bringing in some economic development in a controlled environment. So I appreciate that very much.

You bet. I mean, we're excited. Like I keep saying, we're excited because Nucor has been Awesome.

They've been a great.

And here comes Nucor again and more jobs. And they are, as part of this, like we flat out say, hey, part of the participation agreement that we signed with Nucor, their average wage has to be 110% of the base county wage. And Nucor doesn't have a problem meeting that. So we're excited. We're excited that Nucor is here with high paying wages, good jobs. And it just continues to build who Brigham City is. And we're excited. Did you have something, Council Member Cox?

Yeah, just clarify on that 35%. Yeah, that's wrong. That does the... It's 35% of 65%. Of the 65%. That's not wrong. For the electrical substation that we bonded on, that Inland Port gets that tax money and It will go towards to Brigham City.

Yeah, so that's the three-party agreement we have. And actually, Nucor has even said their percentage they're getting, they are going to pay it to Brigham until the bond has been satisfied.

Yeah.

So that's a key component, too. Nucor is saying, hey, we understand what is happening, and we want to be here, and we appreciate the... the infrastructure that's coming in. And normally we would charge like an impact fee for electric, right? Well, this far surpasses the impact fee that would have been assessed. So per code, we're allowed to go in and, hey, this is really what your impact fee is for the substation. And so the development agreement, Nucor saying, okay, we're gonna generate tax increment here. Instead of giving us the money as a incentive, use it to pay the bond, and then once the bond comes off, then that will flow to Nucor as an incentive for being here. But again, they just don't get it. They have to meet their... Their specifications they have to get to before they can get the... Yeah, and it's all post-performance. Nothing's given up front.

You've got to do this. Is the base taxable value, that was established... ON JANUARY 1, 2025. WAS THAT AN EXAMPLE PART OF YOUR EXAMPLES?

I THINK THE AGREEMENT SAID IT'S EITHER GOING TO BE WHAT THE AGREEMENT DICTATES, JANUARY 1, 2025, OR IT'S GOING TO BE THE 2023 WHEN THE CITY ENTERED INTO THE PROJECT AREA.

Sorry, Steph, come to the mic.

But in the agreement, so in the development agreement, which I don't know can supersede, the development agreement calls out January 1, 2025. Okay.

And that was before any construction had been started.

Yes.

Okay.

But Stephanie, again, because they have a different.

Yeah. Our statute has our project area base year be the year prior to creation. AND SO THAT WOULD BE ACTUALLY 2022 WOULD BE THE BASE VALUE. We're going to record this trigger with the county. They requested that we get any recordings to them by October of the year prior, so they have plenty of time to set up that trigger and set up that new tax ID. And so we'll work through those details with them. But anything before that base year will continue to flow to the taxing entities, and then that 25% will continue to flow to the taxing entities.

My spot on, and I think to your point too, Ryan, is, I'll be honest, whether it's 2022, 2025, it's very small. Yeah, it's still Greenbelt. Yes. Both those times.

Yeah.

Okay. But again, not to beat the dead horse, I mean, you'll see these again as we continue to work with the inland port and do different things, is whatever that base year value is, so in this case, in the example I put 10 million, The base year value for this project is probably going to be between $1 and $2 million, in complete honesty. But anyway, the tax entities will always receive that money. They will continue to get it. They're never punished. But we had before they did anything in there. Yes. And the good part is, hey, the incremental growth under an inland port scenario, it's a 75-25 split. In some other increments or other project areas, that 75-25 doesn't exist. It may just be all 100% that flows to the RDA or whatever. But under this example that the import uses, 25%.

And the 30%, I guess the 75%, that stuff stays in the project area? Yes. And that project area, is that this Nucor, or is it all, is it the...

It'll trigger, so we're triggering the parcel of Nucor inside the Golden Spike project area. Which is... So this money here, it will stay in the Nucor... Parcel. Parcels. Oh, okay. Parcel. All right.

And we've seen, I mean... We have a widened road there in that area. Is that part of probably this as well?

All public infrastructure is available to it. But that's in the development agreement that we have with Inland Port and Nucor. But yeah, I mean, make it abundantly clear. They are not going to take increment that's been generated by Nucor and go apply it out in Garland. Like the Lakeshore Learning Center. Nor is Lakeshore Learning Center sending money to Brigham. That's not how it works.

On the public infrastructure part that comes to the city, is it only to the city or does it, it doesn't flow to like the other taxing entities or the school district or anything?

Not on the infrastructure part. That is for the city's infrastructure.

And the city, is this our first project within the city limits?

With the inland port, yeah.

Yeah, okay.

Yeah, it's exciting. That's why Stephanie drove from her home. We're not going to say where you live. On a public meeting. People probably put it together.

Nor Sam Pete. And just as a side question, how many jobs do we figure that towers and structures will have?

200 to 300. That's what I thought. Like that's, so when I talk, I wanna say it's Brandon, I hope I'm, anyway, when I talk to their GM, like he's talking about, send me whoever you got, I need people. And he's excited, they're bringing in people, they're excited. Because they're currently right now, the towers and structures is operating in the Volcraft campus area. Volcraft has given them one of the farther back bays. So they are, Towers and Structures is here. They are operating, they're putting out the giant structures. They do the power utility poles, like they're massive. And so they have already begun that work. And they're gonna have a galvanization facility here. a lot of the other new core facilities are going to be shipping stuff here to be galvanized and so it's It's cool Okay If you're satisfied with The answers to your questions, we'll we would enjoy a motion I

Which would be to authorize the activation of the new core project area parcel for the 2027 tax year. So moved. We have a motion by Council Member Smith. Do we have a second? Second. Second by Council Member Jeffries. Is there any further clarifications or questions? All right. This is a resolution, so I don't believe we need a roll call. Okay. All those in favor? Aye. Those opposed? Thank you. Motion passes.