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Board hears update on Farmington HTRZ plan; members press for shorter tax-increment horizon
Summary
District representatives described Farmington City's proposal to replace parts of two previously approved CRAs with a legislative HTRZ that could capture up to 80% of tax increment for as long as 45 years. Board members asked staff to advocate for a shorter horizon and earlier tranches to protect district revenue growth.
District staff updated the board on Farmington Citys plan to use a newly available legislative vehicle (HTRZ) to redevelop an area near Farmington Station and to connect it with a dedicated people-mover to the FrontRunner rail station.
Mr. Carter said the HTRZ provision increases allowable tax-increment capture to as much as 80% and can be structured in up to three tranches for a combined duration that may extend up to 45 years. "It increases the increment that they can collect up to 80% ... it also allows for up to 3 tranches for a total of 45 years," he said. The board discussed how the HTRZ would overlap with previously approved CRAs (which would be reduced in size) and that the district would retain 20% of future incremental growth while the RDA would receive 80% of growth during the HTRZ period.
Board members expressed concern about the long potential timeframe and pressed district representatives to advocate for a shorter horizon or earlier tranche triggers so the district can realize return on investment sooner. They also asked whether the district would be "on the hook" for costs; staff said the district would not provide funding but would hold two votes on the multi-stakeholder committee, and that anticipated district revenue from growth would continue at a frozen baseline until the HTRZ increments materialize.
Why it matters: The HTRZ structure changes how tax increments are allocated over long redevelopment horizons and could reduce the district's share of incremental tax growth for decades if left at full term. Board members asked staff to provide feedback to the Farmington committee and to request shorter tranche timelines where feasible.
What happens next: Mr. Carter and President Mumford, who sit on the multi-stakeholder committee, said they expect further meetings and will bring back details for the board as Farmington City responds to committee questions and adjusts its proposal.
