Hurricane council approves PID for Zion Regional Medical Center after prolonged debate over tax cap and governance

The Hurricane City Council voted to create a public infrastructure district to finance and support construction of the proposed Zion Regional Medical Center, approving Resolution 2025‑43 after extended questioning by council members and counsel.

Tyler King, attorney for the applicant, described the PID as limited to the hospital site and supporting infrastructure and said the governing documents in the council packet reflect that scope. Aaron Wade of Gilmore Bell and Brent Mosier (Gateway representative) answered council questions about governance and tax implications. Kira from D.A. Davidson (underwriter) joined by video to explain financing assumptions.

Council members pressed the applicants on the proposed aggregate levy, which the staff summary said would allow an aggregate cap of 0.015 per dollar of taxable value (presented as an aggregate mill levy that could raise the tax on the property significantly above current aggregate rates). Brent Mosier clarified that an existing 4.5 mills already apply in the area and the requested additional levy is effectively 10.5 mills (for an aggregate near 15 mills). “The 4 and a half is already there,” Mosier said, adding the applicant is asking for the balance, not an entirely new 15 mills.

Councilmembers repeatedly asked what would happen if the project stalled or failed once bonds were issued. City and bond counsel explained that property‑tax bonds remain on the property until debt is retired, and foreclosure and tax‑sale processes would be the remedies if taxes went unpaid. Aaron Wade and other counsel recommended edits that would distance the city administratively from long‑term PID governance: removing annual reporting requirements, allowing the PID board to self‑appoint at term expiration, and clarifying municipal adviser/bond counsel language. Several council members asked that the council’s final motion make approval subject to those governance edits and final review by the city attorney.

Council members also discussed a deadline embedded in the PID documents that the district could not issue debt on or after June 19, 2030, unless extended; staff said that language was intended to tie the financing window to the hospital plan and to avoid the PID being used later for unrelated purposes without additional approvals.

After discussion and recommended edits, Councilman Ellerman moved approval subject to removal of the reporting requirement, changes to appointment language so the board could self‑appoint (with final review by Gilmore Bell and city counsel), and other clarifications. The motion was seconded and carried after council roll calls in which multiple members voiced support. Several council members noted long‑standing concerns about PIDs but said this is a commercial, single‑owner PID where the applicant will bear most of the tax burden if bonds are issued.

The council instructed staff and counsel to work with the applicant to finalize the language and return the final documents to the city attorney’s office for review, and to confirm the financial plan and limits on permitted uses of PID proceeds. The motion recorded that permitted financed improvements would be limited to medical buildings and related infrastructure, and that the PID must be dissolved if a building permit is not issued by the stated expiration unless an extension is granted.

The council’s approval does not itself issue debt or bind the city to underwrite bonds; it authorizes creation of the PID and adoption of governing documents subject to the edits and final counsel review.

Next steps: staff will finalize the governing documents and interlocal agreements with Gateway at Sand Hollow and provide final documents to council/legal counsel before any bond issuance or boundary actions are executed.