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Provo council approves four post-performance sales-tax payments to shopping centers totaling $186,159.54
Summary
The council approved four separate appropriations to fulfill sales tax increment post-performance payments to four shopping centers (Days Market, Riverwoods, Parkway Village, and Eastlake Shopping Center). Staff said late payments resulted from staff turnover; the motions passed unanimously.
Provo City Council approved four appropriations at its May 26 meeting to make post-performance sales tax increment payments to four shopping centers, a city staffer said were originally negotiated to support improvements at declining shopping centers.
City staff (Cody) explained that the city entered the sales tax increment agreements in 2016–2019 to reimburse property owners for qualifying improvements by sharing half of the sales-tax increment above a base-year amount. For example, staff said Riverwoods’ 2025 increment was approximately 96% above its base-year value. Cody acknowledged the city missed the scheduled payments because he began in the position at the end of March and missed the payment deadlines; he said he would set annual calendar reminders to prevent future misses and took responsibility for the oversight: “I take responsibility that I should have made these payments,” Cody said.
Councilors asked whether the payments could be budgeted instead of appropriated each year. Staff explained that because final payment amounts depend on performance data, the historic practice is to appropriate the exact amount after performance is achieved rather than forecasting and later reconciling a budget line.
The four appropriations recorded in the meeting packet are: • $13,509.21 to Days Market (post-performance sales tax increment payment) • $31,033.33 to The Shops of Riverwoods • $83,851.50 to Parkway Village • $57,765.50 to Eastlake Shopping Center
Each appropriation was considered and voted on separately; recorded roll-call votes show each passed unanimously (7–0).
Councilors expressed appreciation for the breakdown and percentage figures staff provided, saying the numbers helped them and the public understand how the sales tax-increment tool has performed.
