Mendon CDRA keeps options open after annexation tax question; council adopts tentative all-zero FY2026 CDRA budget

Mendon City’s Community Development and Renewal Agency (CDRA) discussed whether to retain the agency after learning the state tax commission has not transferred resort tax revenue for a portion of Wasatch Mountain State Park that the city annexed, and the council approved a tentative fiscal year 2026 CDRA budget showing zero revenue and zero expenditures.

The question before the CDRA grew out of an annexation agreement that promised the city would return tax revenue generated by the campground portion of the state park to the park. City staff told the agency the state tax commission has not yet made the property-tax/transaction-tax transition necessary to send those revenues to Midway (the city), so no tax receipts are arriving that would trigger a return to the park.

Brad, a city staff member, told the CDRA that for the current fiscal year ending June 30 the agency recorded “0, 0 revenue, 0 expenditures.” He said he verified with the state tax commission that the tax transition had not occurred and that the city therefore had not received funds it would need to return. “If we haven’t received any revenue for any tax revenue from them, then I would argue we don’t have anything that we need to pay them,” Brad said.

Staff described three options for handling the annexation clause and the CDRA’s future: 1) if the tax commission begins sending revenue to the city, set up a CDRA project area (the mechanism used previously for a grocery store incentive) and return received tax revenue to the state park as required by the annexation agreement; 2) if the state continues not to change its records and no revenue is received, leave the current arrangement as-is so the park continues to retain those tax receipts; or 3) dissolve the CDRA and, if needed later, re-establish a similar entity through a separate process.

Brad said he and the mayor met with Jonathan, the superintendent of Wasatch Mountain State Park, who will verify on his end whether the tax commission has made the change. Brad said Jonathan also described park priorities that could involve Midway—chiefly a trail from the park visitor center to Soldier Hollow and spur trails into Midway—and said Jonathan would follow up.

During discussion, one council member warned against using CDRA tools broadly to subsidize private development, saying the valley already had significant outside development pressure and that “we have no need for us to take taxpayer money and give it to a business at this point.” That council member said the CDRA “is a tool that should be used in rare cases.” Another member said it would be acceptable to keep the CDRA in place for now until the state park/tax question is resolved.

On formal actions, the CDRA voted to approve the agency’s tentative FY2026 budget, which staff had presented with zeroed revenue and expenditure lines, and set June 17 as the date for the required public hearing on that tentative budget. Motions to approve the minutes from the June 18, 2024 meeting and to leave closed session also passed earlier in the meeting.

Members asked staff to return with a short memo describing pros and cons of keeping the CDRA versus dissolving it, and to report back after the state tax commission and the park superintendent confirm whether Midway is receiving any tax revenue. The agency did not adopt a final policy decision on CDRA dissolution; members agreed to wait for the tax verification and then decide whether to keep the CDRA in place.

Ending: The CDRA left open the agency’s future while the city awaits verification from the state tax commission and the Wasatch Mountain State Park superintendent; staff was asked to prepare a pros/cons summary to guide a later decision.