Ogden RDA approves bond parameters for Forest Service Building purchase; council sets March 18 public hearing on sales-tax pledge

The Ogden Redevelopment Agency (RDA) voted Feb. 18 to approve parameters for a tax-increment revenue bond to acquire the Forest Service Building, while the Ogden City Council set a public hearing for March 18 on a proposed interlocal pledge agreement that would allow the city to pledge sales tax as a backstop for the bond.

Laura Lewis, who presented the financing proposal, told the council and RDA that the RDA will issue bonds to buy the federal property and that a city pledge of sales tax would make the debt more marketable and lower borrowing costs. Lewis outlined parameters included in the RDA resolution: a maximum principal not to exceed $44,400,000; maximum term of 16 years; a maximum underwriting discount of 3 percent; and a maximum interest rate of 5 percent. She said staff expects to amortize the bonds in roughly 10–11 years and that current market yields suggested an interest rate in the mid-4 percent range if issued now.

Lewis described the likely sale method as a private placement (direct purchase) to a limited number of banks and noted the agency preserved the option to pursue a public offering if necessary. She also explained how proceeds from a future sale of the building would likely be used to pay down debt.

Council action: Council Member Ritchie moved and Council Member Cheburka seconded a motion adopting the resolution that sets a public hearing for March 18 on the interlocal pledge of sales tax; the motion passed on a roll-call vote (Aye: Cheburka, Graff, Meyers, Ritchie, Blair, Vice Chair Hyer, Chair White). The council noted that adoption of the pledge itself will be the subject of that hearing.

RDA action: The RDA board voted to adopt the bond-parameters resolution (proposed resolution 2025-1) in a roll-call vote (Aye: Graff, Meyers, Ritchie, Blair, Chaburka, Vice Chair Hyer, Chair White). The resolution authorizes designated officers and a committee to finalize bond terms within the stated parameters and to select among financing options.

Why this matters: The purchase and redevelopment plan for the Forest Service Building will be financed with tax-increment revenues from the project area; because those incremental revenues may not fully cover debt service timing, the RDA is seeking a city pledge of sales tax as a backstop to improve marketability and reduce interest costs. The city will hold a public hearing before pledging sales tax, as required for transparency and notice.

Ending: The council’s public hearing on the proposed interlocal pledge agreement is scheduled for March 18; the RDA’s parameters resolution allows staff to pursue a direct purchase or public offering within the stated limits and return with definitive financing documents for approval.