Fairfield says UIPA AIB loan advanced; loan will reimburse past work and fund a new well with repayment via captured property‑tax increment

Mayor Hollie McKinney and Jenna Draper of the Utah Inland Port Authority updated the Council that Fairfield’s AIB loan request was approved by the AIB committee and advanced in the legislative appropriations process. Draper said the loan is intended to reimburse the Town for previously completed infrastructure and to support construction of a new well and related water‑system improvements.

Draper described repayment as drawn from captured future property‑tax revenue: existing tax revenue within the project area remains with taxing entities, and as development increases assessed values, roughly 75% of the incremental tax gain would be used to repay the loan. She said the loan includes a five‑year deferral before repayment begins and that the term is about 25 years with an interest rate below 4% (she did not recall the exact rate). Mayor McKinney said the loan includes about $1.6 million tied specifically to the well project.

Town Attorney Brad Christopherson characterized the structure as similar to tax‑increment financing but emphasized it does not raise tax rates or create new taxes. He also said a "but for" analysis was completed, finding that without investments the proposed development likely would not proceed.

Why it matters: The funding would enable well construction and other water improvements without drawing from current Town funds and could be a key step in supporting future development and ensuring water reliability.