Planning Commission - Regular Meeting

property values and the rural character that brought our families and business businesses here Tmont in the first place. An inland port brings heavy truck traffic, industrial noise, diesel emissions, and long-term land use consequences that fundamentally incompatible with this community. Equally concerning is how this process is being handled. As residents, we've been told repeatedly that no single entity is really in charge. The city says that they're not driving the project and that they're trying to protect the area. Um the county says that they're not being it. State entities, including the inland Port Authority, say that they're they're just providing support and finding assistance. Developers say that they're responding to opportunities created by others. Yet, despite all of this, the project keeps moving forward. This raises a very basic and reasonable question. Who is actually accountable for this project? Right now, the responsibility is so fragmented that no one appears willing to own the full scope of impacts, decisions, and long-term consequences. That lack of clarity public should not feel insecure any asking for greater transparency specifically clear identification of who is driving this project and who has the final decision-making authority full disclosure of agreements memoranda or commitments already made honest acknowledgement of long-term impacts not just projected economic benefits and a process that gives local residents a real voice before irreversible decisions are made economic development is not inherently bad, but badly cited development pushed forward without accountability or community buyin is bad planning. This commission has a duty to protect the public interest, not just today, but decades in the future. We ask you to slow this process down, demand clarity, and insist that those promoting this project step forward and take responsibility responsibility for it. Our community deserves transparency, accountability, and respect. And most of all, we deserve to be heard when we say this is that this is not the right project, not the right place in my

backyard.

Thank you. Public comments are still open. Are those just showing up? Yeah. public comment section of the meeting. Comment Jamie Pleton, Trey Martin, Utah. Um, I just have a question. When I guess it's not a question, but something that I would just ask. Um, when it comes to the agenda, a lot of people have reached out and didn't know what the initials were for UI, uh, Port Authority. So, if there's going to be something on the agenda, can we ask or me personally as residents to spell that out so people know what's going on and what it is versus just initials or acronyms or vague information. It's just a thought. I just had several people reach out and ask me what that was and what it meant. So, just a suggestion if you wouldn't mind for future. Thank you.

Thank you. Any other comments? Seeing none, move to the next item. Five, new business. Uh point a discussion and consideration of the preliminary platfield estates phase three.

This looks a lot like the copy I definitely forgot to send you guys. Let me try. This looks blank. This looks like No, just that I forgot to send it over and I apologize for that. Um introduction while Tiff pulls this up. Okay.

Um this is over along 110 south next to about 900 west. Um this property only came in for a reason and they were going through the development. Uh they're looking to use the single family transition overlay zone that is in chapter 1.16. Um and so this has gone through the DRC and has met all of um the requirements. So as it comes to the planning commission as an administrative decision for you guys um to just review it um review, ask questions and and approve it if you're comfortable.

This is that spot on Maverick, right? Yeah, just souththeast of Maverick. It's behind kind of behind the wrong color tires existing site. There it is. So, it's the that parcel right there. So, how big would the lots be? Um the there has to be a proportion between but most 4,000 to 5,000 square feet. What zone did we zone this again? It's zoned R110 and that's one of the eligible base zones that the overlay zone can be added on to. So they're doing it as a just an overlay or is a PUB

overlay. So the a the parcel itself was too small for the PE. That's what I was thinking. And the parts to the south, he's not joining or he is.

They tried to have some conversations. Um, but they didn't come to an agreement. So, they um the property owner to the south wasn't sure they he wanted this size of of uh units on his house. And anyway, so due to the difference in their timing, they just could come to an agreement on it. So cold sacks it is which will be a first in the south apple tree one to have some cold sacks a couple

seems a little squishy are those what are those going out from the culde-sac what are those uh those are private lanes to get to the the back house yeah the back two homes two homes per Well, one has three. The north one has three lots to it and the south one has two. Could you put the map back up?

We have other properties in town that are that small lots. Um, Visionary's development over by the old hospital is that small. Okay. Could we ask to hear from the property owner that didn't come to the conclusion with the developer or um I can see if he wants to come over really fast, but I didn't ask him to come here. Well, I don't mean come here, but like could we wait and I don't know. I mean, I guess I would just like to consider what he's thinking. If he can't reach some sort of agreement and it's a timing issue, could they reach an agreement? I don't know.

I visited with him and I mean I think he's open to doing something. I think doing what they're proposing, stubbing the road to him is fantastic just so we can keep the continuity of those roads moving forward. So that was so it seems legit. Yeah, I talked with him and I think ultimately someday they may want to do something, but but ultimately stubbing the road I think is a smart idea just so that both of them aren't dead ends and ultimately if somebody decides to develop that they have the ability to connect the roads and keep it connecting.

Yeah, there was connecting them through a private alley created a greater flexibility for how they connected. doing it with the 60 foot right away that this to meet city standards um really only forced one solution to make all of that tie in and neither property owner was uh enthusiastic about what that roadway connection so I think to Micah's point I think having a private alley connect them will will help um I know there's going to have to be some connectivity with Uh um I I think if I can recall right, there has to be some connectivity with the storm drain, but it depends on what the grading looks like for the north part if they want to try and get it all the way to the east.

You're saying this is a private road, not a public street. The alley would be private. What alley? Go back the north or south. Yeah. directions. Yeah, that'd be an alley. Oh, they were trying to figure out how to get a road to connect, but how it had to scurve around the south house. Um Oh, I don't like that at all. it. Yeah. The vision, original vision when I talked to him was that we would actually, you know, bend the road.

Uh because that is not going to allow either side to connect because it's private. They're just doing those to get an extra lot. Yeah. there um the sh the road and the access I don't know where the negotiations ended but this property owner ended up instead of waiting and continuing those on said just wanted to go forward with this plan and it meets the zoning code it meets the standards for the public works um and so this is this is the one where we're at how big are those units the like the homes.

Mhm. I mean, my guess is they'll probably be 18. I mean, you could get probably as small as 1,700 square feet, but I'm guess an all two story. It's so hard because all the property around them are bigger properties, so it's hard to like compare it because you're like, "Oh, well that like it's the same size as the shed." But when you just Yeah. I think if [clears throat] No, that just be the law thing. I don't think you put the building the size of the building envelopes on there. Yeah. So, the property to the south on the map. Mhm.

There's already a street going to it to it, but that would be could have been a little a future culde-sac there.

Yeah. the the struggle with because that I mean with the north lot the house is tucked into the corner and where this one the house is almost right where the road would have needed to go through. So trying to get it to bend around and then come back around and so that it it didn't create a a culde-sac with a T intersection the layout and and we looked at a couple. It just it felt like and I I never got them in a room together to talk to the north property owner and the south property owner. It felt like neither of them weren't happy with the impact of having that road go through and what lots were there left to be built. And honestly, the south property owner isn't very sure still what they want to do with the property. And because he was Anyway, the north property owner got a little tired of waiting, so he moved on.

Is that like past like not past like a corral on the east side? Yes. the the homeowner was enthusiastic about horses and I think he had seven or eight of them in that crowd that I before he past mini riding arena from [clears throat] many years ago and then that individual moved in kept the crop excuse me kept the animal rights and had horses and cattle back in was just recently moved but where we stubbed the road to the south right that road was eventually going to go through can we not make him connect those roads for the code.

We I mean we can ask him about it. It's because he still meets the public standards with the culde-sac and the turnarounds. It's it it like this this works and he's okay with it. So there isn't a lot of power to force him to come over and say, "Hey, you have to stub the road through." Well, I've been on the other side and they've made me [laughter] Um, but I mean because otherwise because everybody would not want it to go through, but that's the whole reason why we stub the roads

because uh that's why the road kind of stubs on both sides. I mean, in my mind, if you're going to develop I don't care about the one to the north because I don't think we need to stub it to Main Street. I don't think that's a big deal because no access management with you probably wouldn't allow Exactly. I think the north one is fine. It's mostly the south one because that road's stubbed. It just seems dumb to not allow it.

Or I guess if the city's okay with it being private and he will give an easement to connect those roads through, then maybe it's a conversation in my mind. You know what I mean? Because if if it's private and they won't allow access, then we should have a more conversation as far as making it a real road to make it continue. I'm surprised the road department doesn't want to have it go through just for the snow pushing alone.

So years ago, and I don't know where we would find this, but the city was going to put that through there. And I don't know if it was the current individual that owns the property south of what we're talking about or one prior to him, but they actually came here somewhere. We have minute notes of them asking to have, you know, to buy that to stuff the street. And that's why you see the two laterals there given to the the other two property owners on that to limit that out. Um, so yeah, the initial design of this was to go straight up through the the existing property that we're talking about and rolling around to the top of of the street up above that, but then that all got and so I don't know where we would find the actual notes on that, but they did come before the the city council and the planning commission to do what he did on that for the bill. Yeah, but I guess technically it's an R110 zone. So, he's asking us to shrink the lots in half essentially.

And I mean, in my mind, I'm kind of inclined to say, you know, if you're not connecting it, then keep it at R110 if that's if you want to do it that way. I mean, if it's less homes and there's less connections, who I don't know. I just think it would be way better for everybody for it to go through for all of the reasons we talked about on a lot of these other ones. How big would the pass through be? Um the private road you mean? Yeah.

Well, the private road you could get down to um I think it's 20 ft. Uh is permanum for two-way. And um but if you're going to do a public right away, then uh our smallest is 60.

Is there a reason they're doing homes here instead of like town houses? Um the they would they to do town homes, they'd have to come in and do a raise to get down to the one of the RM densities. That makes sense. Um, and because the the law is too small for the PUB, this was the only overlay they could enact for getting smaller lots. Okay, I found some code. [snorts]

The city Tree Mountain may require streets and sub streets and locations sizes and designs necessary to provide adequate traffic circulation and access both within the subdivision and to adjacent parcels, including future connections to adjacent properties and streets identified on the city's master road plan. That's kind of what I was alluding to is that they'd come in here to talk about what are they are they not here. They aren't. He uh I believe he was I think he's out of town. Anyway,

but I said I discussed this with the planning commission, but it can't go straight right. No, we were we looked at trying to get it to stub to the because I thought it I thought we could try to get it to line up with the access there next to the on the south side of the credit union. Um, but where that existing home is there and I mean both of those are homes that we didn't think we'd be able to get the right away to squeeze it in between unless someone came in and you know demo that property completely and start over. [clears throat] What's north right here?

So is that a right of way between 05? No, that's another parcel. What's there? Um, trees by the look of it. I know. Like, is there a house there? Like, there is up further. There's a commercial building up. Yeah. See, right there. There's no way that road's going through anytime soon. No, the real only connection is the stub to the south and tying it into the other property. Or maybe stubbing through Brad Archbald's property to cut over to 1,000.

Yeah. But I think that feels forced in my mind. You know, we're gonna have to go around that fuel center thing that they framed in. I think going to the south is a natural thing. And [clears throat] I they designed it already that it will work. Did the homeowner put that house in after the streets were laid out? Yeah. Oh, yeah. So, and we allowed him to put it that close to road. Well, I mean, technically he owns the road stuff. Oh, which house you referred? 089 his

so that's what I say he they they whether it was the actual home builder or before him but they they come look interested in buying that parcel property um with the city having the a master plan format of that area to cut through and turn and that's why I say they came before the planning commission and the the city council on where we're going to find that and we literally approved him to do that before he built the house there. And then as a result of that, that's where you see the studs down below going to the two property owners on their sides. And I'd have to double check that because he actually might Doesn't he own those two, too? The the actual street.

Oh, yeah. Both. Well, and even the property owner to the north owns the 0054 part of the road. It gets a little weird in there. I guess will the city Sorry, excuse me. No, go for it. Will the city have snow removal obligation on that culde-sac if that's a private road? Yeah. So on the culde-sac, yes, but not on the alleys, not the private private road. I guess my biggest concern going forward would be that if we have the circle there, right, the culde-sac,

what is going to happen with that property on O89? I mean, obviously it's his property, right? But there's a lot of space there that if you ever wanted to sell it and develop it, there's not really an option for them to split that into smaller watts or anything because there's no access there. I mean, they'd have the access to the road. So, by fire code, if they could find a way to fit 30 units on there, they could get it to work. But, um, you'd end up with just a a co you'd end up with a culde-sac, but instead of going up and dead ending like this one, you'd have to start curving over so you can get the front edges on the west side of on the east side of the property. Um, instead of being centered like this one, but

there's enough room for that. They could do it that way.

Mhm. Or if he doesn't want the density that the north property owner is going for, then you could even just look at doing um some like a temporary turn like a flag law, a couple flag lots, which would So flag lots is where you've got a stem. I think our code says it has to be at least 20 ft wide. So your driveway, you put the house further back and then you have a long driveway to get up to the road. So that's what they would end up looking at. So yeah, I mean the the what caused this discussion if you go all the way back is the fact that that house got put really where the road should have been playing through. Maybe you would have moved it and just turned it a smidgen like

this. It seems intentional. I'm not going to lie. If I was choosing to build a house with this lot and there was a road there and I put it right in the middle like and again probably for that was kind of initial plan to put the road there. Yeah, there was some backs and forths that took place on that because of you know how they wanted the this, you know, the the driveway to look. And anyway, this was ultimately the danger.

Well, in my conversation with that property owner, the development of that parcel was in his mind imminent at some point. Even just going around the house, they had it already designed and everything. So, in my mind, it's a critical component. I mean, if he's if he's saying, "Hey, I'm never going to develop it and I don't care about that stuff." I mean, essentially, you could sell it to somebody, make a change, and then we end up with two dead end cults, which in my mind are a nightmare. I have one I have two right behind me, and the city couldn't push them last winter. I ended up having to push them, but I just [clears throat] think it going through is going to be so much easier. So, for me, I think we got to just table it, bring both property owners in and have the discussion. If property owner of to the south really has any intention to develop in the near future, we should have that conversation and see if something could be worked out or if not if it can at least be stubbed to keep the continuity going would be ideal. If the property owner itself isn't going to develop it, then it's probably a mute point. We just do whatever.

Yeah, I agree. I also agree. I make a motion to table it. It's been moved by Micah that be table point A of or 5A. Is there a second? I second that. And it's been seconded. All those in favor of tableabling 5A discussion and consideration for the plan field estates phase three. Yes. Yes. Yes.

Yes. Yes. I'm sorry. I'll oppose. Say no. Okay. And Motion passes to table that discussion until we get them in here proper in here. Um 5B Utah. What am I trying to say? The IPAs. You know, I I'm I'm agreeing to write down all the outland inland port authority training. I'm going to move over so Stephanie has the mic. Does this count towards our power of training? It's one of four.

All right. Good evening, planning commission. My name is Stephanie Packer with the Utah Port Authority. I have come and spoken to the planning commission before. Um, but I would like to know were how many of you were not a part of that training? How many of you have uh do not have haven't had this information yet? I think. Oh, okay. Great. Well, we have a couple of new folks. I'm here to answer any questions. Um, I'm just going to start with uh the Utah Port Authority 101. Um, go through what we're doing here in Boxelder County and um hopefully I'll have plenty of time to to for questions at the end. Um, so the Utah Port Authority, we were created in 2018 by the Utah State Legislature. We were originally created to facilitate the creation of a traditional inland port in Salt Lake City. And um through the years, the focus of the inland port and the tools that the legislature has given us has shifted and we're more focused on economic development efforts across the state. Um uh if we go to the next slide, uh we create project areas across the state. Um I'll highlight a couple of those. um in uh a future slide, but wanted to give you a little bit of an overview of of what it is to be in a project area. Uh we are request we receive requests from the local legislative body. In the case of Tmont, the Tree Mountain City Council passed a resolution inviting the Utah Port Authority to create a project area. Uh it's similar to an RDA or a CRA where we essentially create a tax boundary in specific areas of the community and leverage tax increment financing to finance infrastructure projects. Um the

the code that we have is structured in in such a way that you know this is definitely a community first type of development project. So we we take cues from the city on on how things need to be going. I'll talk a little bit about the tools that we have versus the tools that we do not have. The authorities that we do not have by participating with the city in these projects. Um the difference between the Utah Port Authority project area and a traditional CRA is we do not require a interlocal agreement with all of the taxing entities to create this tax project area. And so that's really the the biggest difference and it's an important difference uh between the two mechanisms. uh but they function very similarly where the taxing entities are deferring those revenues for a time and we use those revenues to pay for infrastructure development. Go ahead to the next slide. Um one more here are project areas across the state. Uh the one we're talking about today is the Golden Spike project area. I manage four project areas in northern Utah. Um my counterparts manage uh project areas regionally and um if you go to the next slide, we have a number of of resolutions for communities that are interested in creating these these project areas. Uh they make a lot of sense for these communities that have large areas that are zoned for development. A lot of these areas don't have infrastructure to develop and uh this mechanism allows the community to defer revenues to pay for that infrastructure upfront and ensure that

we can rightsize that infrastructure for the growth that's going to be coming. Go ahead to the next slide. Um as I mentioned, here's how we've broken it out regionally. Um we and I I just work with the northern Utah communities. Um go ahead and move to the next slide. We work really closely with these communities on project area creation and uh economic development efforts. Uh the great thing about working on economic development in the front end is once these uh properties have come in these com sorry once these companies have come in we can then optimize the logistical network on the back end uh we work really closely with these communities to enhance the logistical network. um be that rail infrastructure, roads, airports, we're working really closely to ensure that we're utilizing the assets that we currently have and enhancing them in a way that makes sense for our growth. A good example is our investments in rail infrastructure. We have great rail infrastructure here in Utah that's underutilized. Uh and every rail car can take four trucks off the road. So that's that's a significant uh impact on Utah's roads, on our traffic to get those trucks off of the road. And so investments in rail really do make a difference, especially to mitigate some of the challenges that truck traffic has on Utah roadways. Um the biggest tool that we bring to the table is our public financing tools. Uh that's really how communities are leveraging the port project areas to help finance these generational infrastructure projects that are going to enhance growth in these communities. Go ahead to the next slide. Um tools we don't have we don't have land use

authority within our project areas. Uh we don't do any permitting zoning. um we don't have the ability to move this tax increment outside of the project into other project areas or or outside of your community. Uh the revenues that are generated here stay here. Go ahead to the uh next slide. With all of our project areas in our statute, it's required that these project areas demonstrate a b a public good uh public benefit economic feasibility and statutory alignment with our statute that was created by the legislature. One more. Uh this is the basic differential model. Uh this is how we capture the the tax revenues. When we create a project area, we freeze the existing tax base. In the project areas we've created, in most instances, these are green field developments that don't have infrastructure. So the tax civil revenue from these properties is very very low. uh we freeze that base tax value that continues to flow to the taxing entities and any increment we will divide 2575. So 25% of the increment generated in these developments that's increment after infrastructure has been put in after the improvements have been made onto the parcel. uh we take 25% of that new increment that continues to flow to the taxing entities like normal and then 75% of that increment will be utilized towards the improvement of that area be it infrastructure buildout uh we can sometimes put it towards incentives to eligible companies uh those incentives are post-performance tax rebates so the company has to come and and pay their taxes before they get a rebate And we can also use it to uh pledge dollars towards any bonds that are

issued [clears throat] for infrastructure. Um that's that's a a compelling tool especially if there's significant infrastructure buildout that we need to build up front. We can bond for that infrastructure and and use this uh tax increment. Our statute calls it differential. Everyone else calls it increment. It's the same thing. Um we can use that to pay back those bonds. Our project areas have a lifespan of 25 years. At the end of that 25 years, with all of those debt payments satisfied, we will terminate the project area and all of that tax increment will flow to the tax entities. Any questions on on that model?

What if it doesn't satisfy the bonds? Do they just keep going until it does? we can extend the life of the project area up to 40 years and it would be in the case that there was outstanding debt that needed to be paid um 40 years in total or an additional [clears throat] up to 40 years

up to 40 years. And so, um, when it comes to bond issuance, uh, most bonds aren't going to be sold if there isn't certainty that they would be paid back. And so, we're really careful to ensure that, you know, if we do issue bonds against a a growth outcome that any improvements made will move towards that growth outcome. So you who so what who decides the the value of the tax differential taxing it the county does with their tax evaluations.

Yeah. The county assesses the property value and levies the the property tax. Uh this program captures both the real and the personal property tax. So not just you know the real value of the property but also the taxable value of the personal property within the parcel. So if a a large manufacturer comes in that has big expensive equipment that's personal property that does get taxed and we can capture that as well. Doesn't it also include sales tax? It does also include sales tax.

I thought so. In industrial areas, there's typically not a significant amount of sales tax generated. There are exceptions. Every so often, a manufacturer will have an outlet uh that generates some sales tax. Uh we can create an interlocal agreement in that instance with the city to pass through any sales tax that's generated. Unless the city wants to utilize that sales tax to put towards the infrastructure, that's also uh something that the city can choose to do. These are great questions. So on this particular on Golden Spike project, where where is it at in the process? Oh, that's a great question.

Is that coming up?

Um yeah, let's go to the next slide. Um really quickly, this just kind of shows um what we're talking about. The blue, if you can see it in the very very bottom, shows the base uh property tax that is being collected today on some of these greenfield sites. Um it's it's very very minimal on um greenfield developments. And that dark blue shows what the taxing entities will be receiving over the 25 years. And the green shows what we can leverage for infrastructure buildout. Um but at the end of that 25 years all of that increment will be flowing to the taxing entities. Next slide.

Is that just one year? That's over the 25 years. Go back. I'm not Are you [laughter] sure? I don't know how to go back. You're saying over the 25 years the we're only talking likeund and something thousands. No, no, this is hundred million. Oh, I was going to say there's no way it's that much. That's a comma, not a decimal. Oh, okay. I can't see. [laughter]

Okay. All right. I understand that. um we you know we anticipate that uh we'll we'll be generating in the hundreds of millions in in revenues in the Golden Spike project area specifically and and that includes um I'll I'll show you some maps on where those are allocated. Um but yeah, we it's difficult to estimate how much revenue will be generated. Um especially because the public data that we have is just on the real personal on the real property values. Um we don't have public data on personal property values. So our our estimations don't include the personal property values. It's just on the real. So hopefully these are conservative estimates. Um and and we should anticipate uh additional revenues to come in and and hopefully pad some of those assumptions um with additional revenues that that we can we can utilize in the future. So, you just use some round number guesstimations on the building sizes because I guess you technically don't even know what buildings are going to be built, but at least on this project out here um with the the developers that we're working with, um for their financing purposes, they they often will create an absorption schedule. And so, you know, they they have to kind of plan out, okay, you know, within the next 101 15 years. Um, we have this much acreage, you know, we've plotted it out that we're going to be building this many square feet per year. Um, and then they give us those absorption schedules. We compare them with the mill levies that the county has for what those property t um values could be. Um we take the

average uh value of you know a a standard warehouse space um amortize that over time and and it's that's our basic model for how we make those assumptions. So it's on future value as well.

Yeah. So we amortize it um year-over-year based on you know a a standard uh growth metric. So, I think it's 2% growth in value year-over-year. Um, so it it but again, you know, it's it's hard to to predict what those future values are going to be. Um, but we we base it off of, you know, what those facilities are are valued at today. Okay. So, let me just restate it, make sure I understand. So, [clears throat] I assume the Golden Spike includes the Lakeshore building. That's correct. And those are probably close to real numbers because we know what they're building. We know what equipment, personal property they have.

The other buildings, you're saying they just put together an absorption schedule of what they're planning to build in what years and then worked backwards into a gueststimation to what that might look like. Exactly. Um, so go ahead to the next slide. So, is is the developer already I mean to the point where they're going to move forward with this or

it it depends on the on the area that we're talking about. We have some areas that um are, you know, have a developer ready to go that are actively working on building infrastructure to get developments going. Um we have some areas that are a little bit further down the road. um you know there there isn't a developer in place uh you know a land owner is willing to sell their property um and so you know we've we've kind of got areas that run the gamut. The great thing about our tool is that uh we can delay the trigger of that 25-year timeline until the property has been improved. That's that's a a really great tool in our statute that we have available. So uh these uh project areas while we have them drawn uh we won't be collecting tax increment on them until we trigger them and we don't have to trigger them until improvements have been made

and technically I think you can do it per phase right yes we we we can do it parcel by parcel because that's what I ran into over here was once you know I I couldn't do the per phase scenario so it's definitely more valuable but so you're going to give us an update on the golden spike specifically.

Yes. So, uh the this is the map of the Golden Spike project area. So, we have um in blue the existing uh parcels within our project area. Uh they cover Bigham City, unincorporated Boxiller County, Tmont, and Garland. And this year, uh Willard City amended about 180 acres into the project area. And so, uh, they've identified some acreage right in between the UP mainline and I-15, uh, for some development. And so, they're going to be, uh, participating in the project area as well. Uh, we, some highlights for this year is we had the literal learning ribbon cutting ceremony. Um, really fabulous, uh, really incredible project, not just for this community, but for the state. Uh we had state represent representatives there as well um celebrating with the communities. It's it's such a stellar project and the um the state is really really proud of of landing that deal. Um we've been really thrilled with working with them and um excited to see them come in. We also uh had new course steel announce a new business segment coming into Brigham City. So that'll be adjacent to their existing facilities in Brigham City. Um a $200 million investment into the community. So we're excited about that announcement.

Is that [clears throat] is that with the um nuclear announcement or totally different? No, that's different. Yeah. So New Core Steel, this business segment, they manufacture the large uh tower structures for for power infrastructure. Um and so yeah the the nuclear project is is separate

and uh and then you know that that pending amendment this is an older slide has been announced and and we finished that amendment back in um September October. Next slide please. Um this just goes into the Lakeshore learning uh ribbon cutting ceremony um as well as the new core tower and structures. Um that new core project will bring about 263 new jobs um into the community which we're excited about. Next slide. Um a little bit more detail on new core. Go ahead and move forward. Um, when it comes to the remainder of the project, we have over 20 recruitment projects that are active today looking at Northern Utah. Um, these kind of run the gamut. Um, some are similar to Lakeshore Learning. Um, some are similar to Newore. These are largely coming from the state recruitment activities. um doesn't necessarily include the activities that are happening here locally with, you know, real estate, brokerage, and things like that. Um these are just the ones that we're tracking. Um any project that comes to the community, um the obviously the the city has that purview on on permitting and and uh allowing those companies to come in uh with these tools. It really does allow the city to be a little picky about what projects they want to see come into the community. Um, and so we'll work with the city on any relevant recruitment projects that are coming down the pike. We triggered our first parcels, that's the Lakeshore Learning Project for the 2025 tax year. And so we

will receive our first tax dispersement this spring in 2026. Um, and that's going to kind of help us understand uh what those revenues are going to look like uh year-over-year now that the county has gone through and and made those assessments and and um gotten those dispers dispersements done. So, next year we'll come back with a a full financial report for the city council to talk about what those implications are um and how those monies are are being spent. Um most of that is going to be going back to Lakeshore Learning uh for the incentive that was negotiated when they arrived. And uh a good portion of that tax increment will be going towards uh Factory Street and the upgrades that Garland City bonded for to make those improvements to Factory Street. Um we anticipate that mature learning [clears throat] um will expand and that expansion will largely land on the Tree Mountain side of that development. And so, um, some great things coming down the pike for Tree Mountain as well. I believe there's about 20, not quite 20 acres south of the Lakeshore development, um, that are still available for, uh, development. So, there may be more projects coming into Tmont on that piece. Um, but the other project that we're looking at, and I'll show it here in a minute, um, is going to be on the the west side of the interstate. Um, we've got some key logistics partnerships we're working on. I mentioned improving rail access in the region is really crucial. Uh, that'll we anticipate that a regional solution might make the most sense. Uh, for Boxelder County, that might look like a Transload facility. It really depends on the demand for rail here, but something

that we're talking to our logistics partners about. Moving on to the next slide. What's a transload facility?

A transload, that's a great question. Um, that is where you have a rail car come into the transload facility and they take what'sever is in the rail car out of the rail car or off of the rail car. Um, some transload facilities specialize in specific commodities. You know, sometimes they have uh pumps that can pump, you know, liquids out of tanks. Um, sometimes it's just forklifts removing items off of flat rail cars. It it really depends on what commodities need to be transloaded, but it's that that's essentially what it is. It's whatever's on the rail car, you take it off, you move it onto a truck, and then the truck can take it the last mile.

There's one in Salt Lake, right? Um Yes. So, Cedar City.

Yes. Uh Cedar City just expanded a new Translute facility. And then, um it's a little bit different from an interotal hub. An inner modal hub is where you take a container off of a training, put the entire container onto a truck. Um there's an intermoal hub in Popatello, so fairly close to where we're at here. Uh but I think a transload facility, what that really allows for is allows multiple users to have access to rail, even if they don't have it in their backyard, even if they don't have it serving their plot directly, that last mile can make a big difference in in cost savings for them to use rail instead of trucks. Um we're going to continue to market the community and the project area where we have it. Um we have an annual amendment cycle uh for the project area. So if there are additional um areas that would like to be included at Willard as an example, we do that annually. Um we've also set aside 3% of the tax differential to go towards wetlands preservations. Um, you know, we'll work with the we'll work with qualifying projects on dispersing that 3%. Uh, but again, those funds will will stay here local uh and regional to help benefit the the crucial wetlands in the area. Next slide. So, these kind of show the areas that we're located. This is our our Bigham City parcels. Next slide. This is where we're located here. Um, we have the the lakeshore learning piece that spans the border of Garland and Tmont. And then we have the Harwood zone that's on the west side of 84 that is currently an unincorporated county and

that entire area is a single land owner and the uh county in partnership with the city opted to include that in the project area boundaries. Um, in order to get services to that area, it's already in Tremont's annexation plan. The landowner will have to petition for annexation, come into Tree Mountain to receive those services, and the city can leverage the tax increment tool to build the infrastructure that is needed to support any development that happens out there. Um, ultimately the city will decide how that area gets zoned and what types of growth they want to see out in that area. And as you know, that planning process is a public process.

And Jeff, you've been working on revising all of the ordinances [clears throat] that might impact that. I think we tabled that, didn't we? We did. And it's um I'm going to be sharing that with the DRC and then with the planning commission soon um because we just got the first version with all of those changes that that you had suggested we incorporate um back because the holidays and stalled it out a little bit. So I'm excited to bring it back to the planning commission, but it's been a few months to get those changes in. What other questions can I answer for the planning commission?

Is your you're done with your presentation then?

Yeah, I have some more maps. Uh if you go to the next slide, we have the um zones in unincorporated county. This is near the Proctor and Gamble site. And if you go to the next slide, this is the map of the new area that Willard included. Um, and as I mentioned, it's right in between that uh up rail line on the east and I-15 on the west. So, that's the end of my presentation and happy to take any questions. [clears throat]

You guys make me do all the time. I'm You know the questions to ask. Okay. I know the rest will go. I I just want to know I guess where the I'm trying to understand the process of the vision. So right now the land owner still owns it. It has not been annexed into the city because we haven't seen it yet, but a potential developer is or isn't looking at it. Um my understanding is that there have been developers courting the land owner but as far as I know no transaction has occurred.

Do we had talked about previously that we would need to like put some ground rules of like what we would want this to have. Would we need to do that before the developer? So, there's hopefully there's going to be two large items that get done before this triggers. Um, and one is that we will get through the the zoning changes so that if it was triggered, we could at least have a discussion with the zoning code we feel comfortable with. Um but two is uh updating the land use plan uh and going through that process with the public to understand better what they would find acceptable um and getting their input because my hope is that if if we can get some public support and the land use plan is created um that we'll feel comfortable sharing that with Stephanie and that'll be a great tool for her to go out and use as she's she's recruiting companies because with the zoning change with the zoning updates and the and the land use plan updates. Um that hopefully will give her two great things to go out and start marketing that area with more. um due to the constraints with utilities in that area. Um I think that's likely what is what is keeping um progress away because it's just hard to it's hard to know right now what um especially when you're talking industrial of what to do with the waste water and how much water. And so it's it's hard to even have a guesstimated conversation at the at Stephanie's level of what the city would be expecting because our first answer is well what are you going to be producing? What what are you needing? And they're like well it depends. What can you give us? And it's

this chicken versus egg but it's conversation that's just um kind of a one step at a time on the city end. So, I know our public works director and our city engineer are working hard to to come up with some answers for that. Um, but frankly, the south part of IED is not an area that Sorry, I was trying to stifle Leon, but it kept fighting its way through. We know you're emotional about it.

Um, very choked up. Um, it's an area that has never had a lot of planning effort put into it. And this honestly will be the the um the genesis of of Tmont City planning for that area because I think once the infrastructure goes [snorts] out, it will become it will grow rather quickly. um knowing but it'll it'll come down to you know using the port using other financial tools uh what can we muster to make it make it make sense in the long run for Tmont city so it's one of a few very simple straightforward planning questions we're t trying to tackle right now I mean [laughter] but so so if I'm understanding correctly as Well, [clears throat] it's not kind of hot topic, but it's the the increments that you are projecting like in the 25 to 7 and 75

what do you call not what would you call them differential differential the the wording that we're using um that differential is based on the future values and as they go like as And and when and that's after you're triggered, right? After you trigger the, you know, tax completion of the bill. Yeah. Then it's it's you send someone out yearly to assess that value or is that just at the county level? It's just every year.

It it's it's the same it's they're being taxed at the same value that they're being taxed right now. It really doesn't impact the land owners. the landlords are going to continue to pay their taxes as as they need to pay. The county goes assesses the value of each of those parcels. U the project area just tells them where to disperse it, right? So after they collect that taxes, um that 75% gets set aside for the project area and the 25% gets dispersed to the remaining tax entities for that 25 year period. And that's just of the increase. And that's just of the increase. The the the county and the taxing entities will continue to get the existing tax base that's there to date

at plus 25%. [clears throat] Yeah. Yes. Of the increase. Yeah. But also does include personal property and [snorts] tax. So what would happen to the debt if say there was a company that we allowed in, they survived 10 years and then something happened with AI and then all of a sudden they went bankrupt. Where would the debt go?

That's a great question. Um when we issue debt, we leverage a mechanism known as a public infrastructure district. A public infrastructure district is a semi-public entity [snorts] and it's a mechanism created by the state to help protect the community from that liability that you're describing. And so if a public infrastructure uh entity if they issue those bonds they're they're the entity responsible for those bonds. It wouldn't be the city. And so that helps protect the city from that liability. It's it's a really handy tool. [snorts] Um and then the the city and the inland port that instance would commit that increment that differential to pay back those bonds. So we would do a tax sharing agreement with that entity to pay back those bonds. and say another company bought that building, they would be subject to paying off [clears throat] this stuff themselves as well. Like

okay, it's just like you can't really bankrupt out of taxes, right? Because the taxes are first lean position. So that's what this would be is essentially [snorts] a tax and so it's going to be paid by somebody whether it's the lender who foreclosed on them or the company that bought them or somebody's going to pay. And if nobody ever buys it, then they assume well they'll what they'll do is extend the project area up to 40 years and pay it out that way. But somebody's going to buy it because the the bank wouldn't foreclose on them if it had no value, you know? So the bank normally would pay the tax debt to, you know what I mean? Like lose your home. I mean, the bank's going to pay the taxes so that they don't get foreclosed on.

But but yeah. Okay. Have you seen it happen?

Um, I do know of a PID that has recently gone bankrupt. Um, I think there was a lot of it it wasn't in a project area. It wasn't I think it was a residential development um that that went belly up and I I know that the state auditor has concerns about the mechanism um when it comes to uh tax differential backed bonds. We are issuing the very very first ones ever uh in the last couple of years. So, we haven't seen an instance where, you know, that that debt hasn't been paid or or has defaulted. Um, it certainly can happen. And, uh, for these communities that are issuing that debt that are moving forward with these developments, they they feel like it's a a risk they're willing to take in order to bring that new tax revenue, in order to bring those jobs and and that industry to to come in their communities. [snorts] So, you know, we can't we don't have a crystal ball. We don't know exactly what's going to going to happen. Um, that being said, diversifying your revenue base is always a good idea for communities. Um, you know, residential is is really hard on on revenues. It's very costly to bring in residential and it and it really doesn't pay for itself. So, bringing in industry really helps subsidize that those services that you need to bring to your citizens. And so that's really what we're trying to do is is economic development is for that purpose to diversify the tax revenues available. And in some instances, especially with instances where there's zero infrastructure, this is just a way to kickstart that development and uh

bring in that area that would have a hard time developing otherwise. What percentage of the differential can be used towards city uh you know like the water tank or [snorts] other services that are going to serve the project. Can they I assume they can use some component of that for deficient stuff in the city. So when we when we uh assess that in the infrastructure that needs to go in um there's there's qualifying infrastructure and then there's non-qualifying infrastructure. The qualifying infrastructure would be regional infrastructure and it would be infrastructure that would in most instances be publicly owned. So, if we build a a water line and if we build a a water storage tank to service that line and you know if if we build a new water sewer treatment plant, um that's going to be maintained and owned by the city, you know, the PID in most instances will use a PID. The PID will finance the construction of that infrastructure and turn that over to the city. So, it'll be a public asset at that point. Um, that's how it would work is, you know, we're going to be building public infrastructure that the, uh, utilities are going to be owning and maintaining in perpetuity. Um, our statute does allow us to do the same thing with uh power infrastructure and natural gas infrastructure and it would be the similar mechanism where you know the pit would pay to build that infrastructure and then turn it over to the utility to own and maintain it. So a a water a water tank that's going to service the area even if it's not inside of that boundary that would still be a qualifying expense. And it it was it was similar with Factory

Street. You know, a lot of those improvements on Factory Street weren't inside those boundaries, but they were serving the project area. So, it's a qualifying expense. Are you asking how much of the monies collected can be used for it? I just wondered if there was a specific percentage that was allocated towards But I guess it's just calculated on a case-byase basis, I guess. and and you know if the city uh you know for example we can utilize it for infrastructure uh for incentives um Garland opted to put the bulk of that towards incentives um if Tmont city decided hey we don't care about incentives we just want all of that to go to infrastructure that works too

incentive like a large recreation facility no an incentive going back to it that goes back to like all 75% or just um they I think it was a 60% incentive. So of the of the differential it's actually going back to Lakeshore to do the updates on factory. Is that correct? So so um Lakeshore gets their incentive that 60% and then the remainder that of Garland's portion will go towards factory street. [snorts] So whatever is left over

do whatever they want with that 60. That was these. So they got a tax cut. It's a post-p performance tax rebate. So, they pay their taxes and then assuming, you know, they they paid it in full, they'll get a percentage of their property taxes just to get them there. But is there a percentage that we can offer back to the public for the opportunity to deal with the massive building? Wouldn't that be part of our sales tax? It would be that 25% increase, right? Correct. So then that 25% increase that we're getting over that 25 years. What we're saying, can we get more than the 25?

Well, I'm just saying, have you seen other areas where they've said, "Okay, yeah, we'll build you a new fire station or we'll build you a new city office or a large recreation facility." And, [laughter] you know, have that be funded as part of the 75% differential rather than just the tax increase, you know, does that make sense? uh per our statute, anything that we collect uh will need to have a nexus to the project area. It's pretty vague language and so um I think there there is a case to be made Nexus or a Tmont Nexus. Oh, we can't take anything

because No, I'm saying saying a Nexus in Salt Lake might look like like half a block, but in Tmont it could look like all of Tremont

everything. Well, I think a good example is with the Lakeshore development. Uh in those negotiations, [snorts] Tmont negotiated to have an active uh transportation trail that was going to be connected to the liture learning development be funded by this increment. And so, you know, active transportation, you know, it's a it's a bike trail, uh but it had an access [snorts] to the project area. So, it was a qualifying expense. You know, there there's ways we can we can get creative, especially with something like public safety. Um, that's something we did in Salt Lake. We just um we just sent $2 million to the Salt Lake PD for law enforcement from that differential. [snorts] Um, and then they'll have uh I think they'll have about two million ongoing year-over-year going towards uh their their public safety. So, there's there's ways we can get creative with it. Um, we just got to make sure that any debt service gets covered first. Um, any obligations, you know, in the instance of Lakeshore to Lakeshore get get paid through and then, you know, we can get creative with the remainder. So Lakeshore would have one deal with Garland and one deal with us potentially if if later they build onto the Yeah. And it the Lakeshore intends to um if they move forward with an expansion, it will be into Tree Mountain. And so that's going to be additional increment that Tremont is going to see coming through. And you know once that comes you know that'll be revenue we need to earmark um to the benefit of that development uh to the benefit of the city.

And at this point we don't have to agree to 60% like Garland did. Cool. Well and I guess technically it's still part of the same project because [snorts] they're just doing another phase and the new phase starts over the 25 years at each new building of the phase if that makes sense. which was that's the hardest part about some of the other RDAs and the CDAS that we've done is doesn't have that mechanism like once it starts then it starts the 25 years ticking but they've done it on a per base basis. Okay. So if if they come back with an an expansion um they'll have to renegotiate that incentive

and since it it will largely land on treat it'll be treatment's discretion to determine what that that incentive needs to be. Um you know 60% over 25 years is a a really valuable incentive. Um, and you know, if they if [clears throat] it's a competitive project, you know, if they come and say, well, if you don't offer us an incentive, then we'll take this expansion and we'll take it to a different plant, something for the city to consider. But it'll be up to the city to determine, you know, and negotiate with Lakeshore at that point. We just we're just the mechanism. We're just the tool. [snorts] These are great questions.

Thank you. You're good. [laughter] I'm sure there's more somewhere. And and my feel free to shoot me an email if anything else comes up if you have any other questions about what's going on. Um you know, we're we're a a public entity, too, and so happy to to help clarify any questions or any doubts. Um we'll continue to work with staff on that. Harwood zone. Um, you know, once that annexation occurs, once that uh that planning exercise has happened and we'll be ready to get going.

It's important that you note in your project and over the future that we do have an obesity problem here in the city and all of the employees working are going to definitely have a nexus with a large recreation facility. [laughter] Okay, I make a question. Wait, recreation facilities are an amenity for for employers. There's a definite it's an amenity for employers. But but let's talk about it. Okay. Let's make a motion to address. Um we have any comments and reports.

I did [snorts] want to say something that's kind of here nor there. And you know, it might involve Fremont classified, so that's qualifying. Um, [laughter] so somebody was saying that the jobs over at Lakeshore have been less than stellar as far as how difficult it is to work for Lakeshore. [snorts] Um, and that their turnover has been fairly high and they don't pay very well. And I just I fully understand that this doesn't necessarily happen at this level. I just wish that we could attract something that gives a little bit higher paying, not maybe the lowest paying difficult jobs that people don't really want to do. And I don't know how to make that happen here, but if we could brainstorm anything, I think it would be worth I mean, if if my kids don't want to work there and they really like money, then we need to

The hard part is is that we are [cough and clears throat] in the community. I understand that but I also think we have a very high we have highly intelligent people as well and somehow we don't have a way to prove that and I feel like that's that missing component of like telling a company come here we do have people that are capable

capable and intelligent and we don't have to stick to one level of jobs we can have something that's a little bit transitional and I fully understand that doesn't even mean you need a college degree I just feel like that would it would be nice to have something that required a little bit more of a professional grade pay. There is something known as market rate of pay and depending on the region the pay is structured kind of more than your bear and so it is kind of challenging but just coming from I used to work at post and uh and I I was the first general manager of Millard refrigerated which is now lineage logistics and one of the big challenges we had was convincing in our home office that we needed to have higher pay because they would they would look at the market rate of pay for the area and say it's enough. So, it's challenging.

Now, you can't buy a house, you know. Well, that's not because the jobs aren't there. It's because the economy's gone crazy on real estate. So,

well, and you have a lot you have a diversity of employers here and they are competing for labor, right? Um, you know, you've got New Core with their billboards, you know, saying that they're doing 90K a year. If, you know, [clears throat] I was making less than that at post or at Lakeshore, you know, where am I going to send my resume? So, I think I think it's, you know, these companies and Lakes Shore is no exception. Like, they are going to have to compete for that labor if they're going to curtail that turnover. And and similarly when it comes to um you know the state the state has an incentive program as well that's totally based off of job creation and in order for Lakeshore to qualify for that they have to meet a minimum wage requirement and any jobs that are below that wage requirement don't get incentivized. They won't get paid out [snorts] for it. So I we we try to encourage that that increase of pay and I think it's something we can look at as a city. If a company comes and wants an incentive we can say okay well show us your wages and if your wages are are decent then we'll consider offering an incentive. if they're just going to be bare minimum, [snorts] then you know, we don't have to incentivize you. So, it it it's just another mechanism that the the city has to encourage the kind of growth that you want to see and encourage the type of corporate citizens that are going to make a difference.

That actually is a helpful piece of information that we have the power at that point. And I think too, like with Lakeshore, we've realized they've only been open for what, a year, not even. Yeah. And so they are still learning culture. Culture and the management of everything people say on Tremont classifies is like who knows, right? But I'm just saying what are you saying?

What? Yeah, I know. I'm questioning the integrity. [laughter] Well, but even if you look at Northrum and ATK and like whatever it's been all these years, I mean, it's it's probably had the highest turnover of any facility around here and they're the highest paying probably engineer style jobs. I think you're addressing. So, even those jobs are high turnover even at that stage. I mean, my whole life has been they lay off 5,000 people and then hire 3,000 people, you know, right? I'm not I think all of them are somewhat volatile depending on what the market drives, right? Um but yeah,

but it this these kind of economic development tools allow the city to be proactive about your growth rather than reactive, right? You know, you have a pretty big carrot that you can dangle in front of the companies you do want and you don't have to offer it for any businesses. I mean, you know, if they if they meet the code if they come in and and they fit the zoning, you know, there's there's not a lot you can do to stop them from, you know, buying a piece of property and and, you know, building a facility, hiring people. Um, that being said, you can you can keep that incentive for the companies that you really really want to incentivize.

Well, and that's what comes back to Jeff's conversation as we're trying to modify zoning is to make sure that the code is going to fit that if somebody shows up, they can do what they want within the code. And we kind of have already thought through what we want to allow and what we're going to do with the water system and all of the infrastructure issues we've already addressed. But in my mind, if you look at it, I mean, in order to get that kind of growth right now, the city or someone would have to pay to extend all those utilities on the other side of the freeway, which essentially we're going to have to pay for 100% where if you do, you know, the PI, let them pay for it. let the tax increment of the development they're going to do pay for it plus the 25%. I mean it's an absolute no-brainer if we can just get something that we feel good about and make sure it addresses the needs.

Yeah, that planning exercise needs to happen first.

And that kind of gives us on the state level direction as to what could actually fit. Um because you know you have a great workforce, you have the nexus of I84 and I-15 right here. There's a lot of reasons why this is an incredible place to do business. And so you're going to get a lot of looks. You know, you're you're going to be a a very attractive community for industrial development. I mean, you've you've got everything you need to make that happen. And so this planning exercise is important to make sure that you know you're you can be prescriptive upfront about exactly what type of development you want to be there of what kinds of uses you want to be there. um you know, now's the time for you to say to limit, you know, anything if if they you don't want emissions, if you don't want um you know, you can kind of decide what you don't want to be there and build that into your code and that's a great way to enforce it.

We should address employee health [snorts] [laughter] with the recreational facility. Wow, cool. I think I think what I like the most about it is, you know, earmarking specifically to the area. [clears throat] Like I feel like when it comes to cities and budgets and allocation spending from an entity entity, those tax in increments that come in, they can get distracted very quickly. But to have the the focus of of look, you've only got this this area is the only area that you can utilize those funds in for improvement. It makes it really powerful to to drive revenues and and updates and infrastructure as a citywide, you know, city thinking to that to that spot. So,

well, and it's that's good. it's not you're not taking from your general fund, right, to to build that infrastructure that needs to be built, right? And so that that keeps it from your residents having to pay for that growth. Um the development, the end users that are going to be utilizing that plot of land, that is the revenue that you're going to be using, right? Those are going to be the taxpayers that that build [snorts] their community community build their development. Yeah. Um and then you know the the residents that are paying their taxes, you know, that's going into your general fund that's going into the services that they need.

Well, and then we can compete because Idaho has been slaughtering us. You know, companies going to Idaho because they get better incentives up there. So we can compete and we're going to see some of it, but our kids will be the ones that get the full freight of the tax revenue in 25 years or whenever the P is paid off. And that's why we're doing this to build the project ultimately subsidizing cost of the taxes so that they can afford to live better than we're doing it right now with the tax burden that we have. But maybe you should introduce Christie. Isn't this your first official meeting here at Flag Ocean? It is. We should introduce her. Hey, thank you. This is Christiey's first meeting. Everyone

first meeting sitting here, not my first meeting. [laughter] True. Would you uh like to share any thoughts or introduce yourself?

Um there's one thing I've learned through my webinars with the state that I've taken. [snorts] We don't have to follow the status quo. We don't have to if it's okay to have an opinion and I encourage you to stick to your opinions. Don't just cave in because someone says this is the best we can do. Research, check things out. But when we have a democracy, we don't all get along all the time. And that's okay. When you have a dictatorship, one person makes the decisions. So I encourage you to think outside the box. Do your own thinking and not just go with steps quote. Thank you.

Cool. Thank you. Second Mecca's motion. That was out of order. Sorry, I'll redo it. Out of order. I will accept a motion to adjourn. Motion. It's been moved and seconded. All in favor? Say yes. Yes. Well, I report too. [laughter] Next time. Did you really want to do