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CRA approves Phase 4 NW Quadrant reimbursement to clear infrastructure hurdles for industrial development
Summary
The CRA board adopted a tax-increment reimbursement agreement for Phase 4 of the Northwest Quadrant development, a 25-acre infrastructure package with an estimated reimbursement cap of about $1.5 million; staff’s third-party analysis found improvements unlikely to proceed without the subsidy.
Salt Lake City’s Community Reinvestment Agency on March 10 approved a tax-increment reimbursement agreement for Phase 4 of the Northwest Quadrant master development, a 25-acre package of roadway, stormwater, earthwork and mitigation improvements intended to prepare the site for future light-industrial and logistics uses.
CRA staff said a third-party ‘‘but-for’’ analysis found the infrastructure and remediation work required to enable development would likely not occur without reimbursement. Staff presented a scenario with estimated eligible costs of about $6.5 million and set a maximum CRA reimbursement cap for Phase 4 at approximately $1.5 million, payable only after eligible improvements are completed and the property begins generating tax increment.
Project proponents expect private investment of about $63 million and newly assessed value of roughly $71 million for the parcel; staff projected annual property-tax revenue rising from about $100 to $2.6–2.9 million under development. Under the existing master development agreement the developer is eligible to receive up to 70% of CRA-collected increment for eligible improvements; the CRA and city would retain the remainder for affordable-housing and administrative purposes as spelled out in the term sheet.
Board member Morton moved the resolution and board member Lopez Chavez seconded. The board also added a legislative-intent clarification that CRA tax-increment funds provided under the agreement are intended solely to support warehouse development and associated public infrastructure. The motion passed by voice vote as presented.
Next steps: staff will finalize the tax-increment reimbursement agreement and proceed with contract execution once the developer demonstrates eligible expenditures and tax-increment generation.
