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Council flags need for interlocal agreement before committing to tax-increment financing for Far West project
Summary
Council members discussed public-infrastructure financing tools (PID, tax increment/CRA) and emphasized that interlocal agreements with neighboring Marriott Slaterville must be negotiated before any city commitments to share tax‑increment revenue or to participate in large-scale financing.
At the Dec. 5 meeting, council members asked staff to clarify how public-infrastructure financing (for example, a public infrastructure district (PID) or tax-increment financing/CRA) would work across municipal boundaries and whether the city is committing to participate.
Staff responded that any PID or CRA would require separate processes and interlocal negotiations between the cities, and that the draft development agreement contains only language referencing potential infrastructure financing; staff said the city would not be automatically bound to enter an interlocal financing agreement. Council members pushed back that tax-increment financing would have limited scale if only the small portion of the project inside the neighboring city were used, and observed that meaningful PID or TIF projects normally require contributions from parcels on both sides of a jurisdictional boundary.
Marriott Slaterville representatives (referred to in the meeting as "Mary" and Marriott Slaterville staff) said they are exploring financing mechanisms and that an interlocal would be needed if both jurisdictions wished to share tax increment or other project revenues to fund regional improvements. Council members asked staff to return an interlocal framework or summary that would show how cost- and revenue-sharing might work and what obligations would be required of Far West before the council approves final agreement language.
No interlocal was approved. Staff said interlocal negotiations and any PID/CRA formation would be separate processes that would require specific council approval at a later date.
