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Council authorizes intent to issue tax-exempt bonds for Park Center apartment project
Summary
Park City council voted 7-0 to approve a resolution expressing intent to issue multifamily housing revenue (IRB) bonds for a multi‑phase apartment development in Park Center; the resolution authorizes bond capacity and contemplates up to a 75% property tax abatement over 10 years.
Park City’s City Council voted 7-0 Tuesday to adopt Resolution 1248-2025, expressing the city’s intent to authorize multifamily housing revenue bonds (industrial revenue bonds) to support a new apartment development in the Park Center area.
The measure matters because it lets the developer apply two local incentives — a construction materials sales tax exemption and a temporary property tax exemption tied to the IRB program — while the city clarifies project scope and the financing structure before final bond issuance.
City staff told the council the developer, Park City Apartments LLC, originally listed the project on the agenda as a 116-unit complex, but the developer later described the plan as a two‑phase development: a first phase of 118 units and a second phase of 48 units. Sarah Steele, bond counsel with Gilmore & Bell, told the council the resolution is an expression of intent, not the final approval of bonds, and that a later ordinance would be required to actually issue bonds.
According to the staff presentation, the project’s capital investment is roughly $18 million. The city’s cost‑benefit analysis (revised to use USD 259 Valley Center school district data) shows a projected positive benefit-cost ratio (about 2.28) to the city based on the proposed abatement. Steele said the bond authorization in the resolution is sized “slightly over $25,000,000,” which would be sufficient to cover project costs if needed. She explained the typical IRB benefits: sales tax exemption on construction materials and a property tax exemption on the incremental value created by the project, with the option for the council to negotiate a payment‑in‑lieu‑of‑taxes for existing land value.
Developers Mike Bridal and Brandon Wilson described project amenities and site layout, including a clubhouse, pool, dog park and pickleball courts. Bridal said plans are 100% complete and the team expects to select a contractor soon; the site plan was expected to go to the Planning Commission on April 21 with final council action anticipated in May.
Council discussion focused on precedent and limits for residential abatements. Several council members referenced prior guidance that Park City would not grant 100% abatements for apartment projects and noted a 75% abatement over a 10‑year period had been discussed previously. At the meeting Charles Schwenke confirmed the resolution before the council included both phases and was calculated at a 75% abatement “not to exceed” that percentage.
The council approved the resolution on a motion by Councilman Jim Schrader, seconded by Councilman Troy Hill; the vote was 7-0. City staff and bond counsel reiterated that the resolution does not obligate the city and that the final bond issuance will return to council in ordinance form when the project is ready for final authorization.
Next steps: the developer will continue design and contractor selection, a site plan review is scheduled with the Planning Commission, and city staff will return with the formal ordinance and any negotiated payment‑in‑lieu terms when the project nears completion.
