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Provo’s downtown apartment project seeks 75% tax increment participation; county pauses to await school, city decisions
Summary
Provo Redevelopment Agency and developer PEG Development requested county participation in a tax-increment financing (TIF) package, asking for 75% of incremental tax revenue (county share ~ $66,000) to close an estimated $880,000–$900,000 financing gap; the commission voted to continue consideration for one week pending school-district and city action.
Representatives from PEG Development and the Provo Redevelopment Agency presented a request for tax-increment financing in the South Downtown Community Development Area to help close a financing gap for the CityView Apartments project.
Horn Halliday, a project manager from PEG Development, said the base tax year in the draft is 2014 and that the agency seeks a 75% participation level from taxing entities to offset impact fees and other costs. David Walter of the City of Provo Redevelopment Agency said the city is considering the project and the school district was scheduled to consider it that evening; he estimated the county share at roughly $66,000 and said the total assistance requested to close the gap is about $880,000–$900,000.
Commissioners questioned the timetable, asked whether Provo City and the school district would take similar positions, and raised policy concerns about routinely starting negotiations at a 75% participation level for CDAs. One commissioner asked whether a 50% county contribution would still make the project viable; developers said it would complicate the deal and that timing could be affected but indicated a one-week continuance would not derail the project.
The commission voted to continue the item for one week so county staff could review final financing commitments from the school district and city and provide the commission with more complete numbers.
