Vineyard RDA approves $1.5 million architectural contract for Vineyard Center; staff reviews bonding options

The Vineyard Redevelopment Agency approved a resolution to award a $1,500,000 architectural services contract to Method Studios for the Vineyard Center and discussed options for financing construction, including pledging sales and franchise tax revenues to secure bonds.

The discussion matters because the RDA is committing design funds now and may issue bonds later to pay construction costs; how the city structures debt will affect the RDA's ability to issue future bonds and the portion of local sales/franchise revenues that would be pledged for repayment.

Laura Lewis, principal and owner of LRB Public Finance Advisors, told the board that cities in Utah commonly pledge sales and franchise tax revenues to secure municipal debt and that rating agencies respond favorably to that pledge. “The rating agencies love a sales-tax pledge because it does have some elasticity,” Lewis said, explaining why sales-tax–backed debt typically carries investor appeal. Lewis presented a six-year history of Vineyard’s sales and franchise revenues, projected conservative growth (4% in near years, then tapering), and debt-service-coverage scenarios showing the city would have headroom to issue the proposed debt.

City staff and board members clarified scope and funding. The contract before the board covers design and engineering with a total fee of $1,500,000; Mountain Land Association of Governments (MAG) will contribute $500,000 toward the agreement and the city’s RDA will pay the remaining $1,000,000. Staff said the city’s $1,000,000 share was prebudgeted in the fiscal-year 2025 RDA budget and that the expenditure is not being drawn from the general fund.

Board members and staff described the conceptual program for the Vineyard Center developed in earlier planning work: roughly 80,000 square feet across four stories, with a public-ground floor connected to the promenade, space for MAG programs (including a weatherization program with associated warehouse space), potential business-incubator space, and areas intended to preserve and interpret Vineyard’s agricultural heritage.

Lewis described how a combined bond issue could include both tax-exempt and taxable pieces: the tax-exempt portion would finance municipal and MAG-occupied space; any portion leased to private tenants would typically be financed with a taxable component to comply with federal tax rules. She described debt-service-coverage as a simple ratio: total pledged revenues divided by annual debt service; for example, $4,000,000 in pledged revenues and $2,000,000 in annual debt service equals 2.0 coverage. Lewis said the RDA’s conservative projections show coverage above the commonly targeted 2.0 times level under the assumptions presented.

Board members noted that the numbers Lewis presented were preliminary and depend on final construction bids and the completed design. Staff reminded the public that the board was not voting to issue bonds at the meeting; the vote was to award the architectural contract and proceed with design and engineering, which will produce the cost information needed before a bonding decision.

Votes at a glance

- Resolution U2025-01: Award architectural contract to Method Studios, total fee $1,500,000 ($500,000 from MAG; $1,000,000 city/RDA). Motion: “I’m going to approve resolution U2025-01 as presented.” Mover: Brett; Second: Sarah. Roll-call result: Jake absent; Brett—Aye; Marty—Aye; Sarah—Aye. Outcome: approved.

- Motion to go into closed session for litigation strategy: Motion: “I move to go into a closed session for litigation. A strategy session to discuss pending or recently imminent litigation.” Mover: Marty; Second: Sarah. Voice vote: all in favor (ayes). Outcome: approved.

Board and staff emphasized next steps: complete schematic and engineering design, receive updated construction estimates, and then the board would consider whether to move forward with bond issuance. Staff noted the city can reimburse certain pre-issuance design costs from bond proceeds if a bond issue is later approved and structured within statutory look‑back windows.

Ending

The RDA approved the contract and recessed briefly for a closed-session discussion of litigation strategy before adjourning the RDA portion of its meeting. The board indicated staff will return with design deliverables and more precise cost estimates before any decision on issuing bonds or finalizing lease arrangements with private partners or MAG.