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Council approves amendment to sales tax increment agreement for Commons at Herriman Town Center
Summary
The Herriman City Council approved a first amendment to the sales tax increment participation agreement with Elevated Acquisitions LLC for the Commons at Herriman Town Center. One councilmember voted against the resolution, citing concern the amendment allows reimbursements to be assigned to entities that may not generate sales tax.
Herriman City Council on April 9 approved a first amendment to the sales tax increment participation agreement with Elevated Acquisitions LLC for the Commons at Herriman Town Center, a retail-focused development at the corner by the CVS on 130 Fourth and Mountain View Corridor. Council recorded the motion as Resolution R2025-02; the motion carried with a single dissenting vote.
Staff said the amendment makes a small, redlined change requested by the developer to allow their financing partner to receive payment assignments from the master developer so the developer can finalize financing and proceed toward a mid-May ground breaking. The change addresses how reimbursements will be assigned to whomever is being paid those reimbursements while clarifying the original developer would remain the project developer.
Councilmember Steve opposed the amendment, raising a policy objection about the potential for tax increment funds to be assigned to an entity that does not produce sales tax revenue. "I don't want CDA funds being directed or assigned to an entity that isn't generating sales tax revenue for the city," he said, arguing the city should avoid directing public TIF reimbursements to non–sales-tax-generating entities unless that is explicitly required. The city attorney responded that the language functions as a mechanism requested by the developer and did not appear to create liability for the city.
Despite the objection, Councilmember Teddy moved to approve the resolution and Councilmember Jared seconded. The roll call vote was recorded as: Jared — Yes; Teddy — Yes; Sherry — Yes; Steve — No; the motion carried.
The council said the item advances prior incentives that already included sales tax, impact fee credits and tax increment financing under the Community Development Agency structure. Councilmembers indicated they expect continued oversight of future amendments and encouraged staff and the CDA to bring negotiated protections forward when appropriate.
The city will proceed with the amendment as approved; staff and the developer will continue to work through related financing and construction scheduling.
