Washington City council backs Utah Inland Port Authority project area to help fund Purgatory Road and industrial growth

The Washington City Council voted unanimously on June 10 to support creating a Utah Inland Port Authority project area in the city — a step staff said could provide a financing tool for a regional infrastructure priority, including the Purgatory Road and bridge.

Economic development director Rusty Hughes and Danny Stewart of the Utah Inland Port Authority told the council the port authority is a state entity created to support regional economic development and logistics activities. Stewart described the port’s toolkit as similar to a redevelopment agency: a tax differential (commonly called tax increment) that can fund public infrastructure, an authority infrastructure bank for gap financing, and limited administrative fees. “The port as an entity doesn't own properties, doesn't build developments. We just have the tool set to work with our community partners and with private development,” Stewart said.

Hughes said the proposed Greater Washington project area would not raise tax rates; instead it would capture a portion of new property tax increment generated inside the project area and use it for infrastructure within the project area. Under state statute explained during the meeting, the port may capture up to 75% of new increment for up to 25 years; the state also enacted a 5% administrative fee that will apply to certain areas beginning in September unless municipalities adopt project areas sooner.

Council members asked detailed questions about annexation, whether parcels must be contiguous, how triggers and parcel‑by‑parcel captures work, and whether taxing entities such as school districts would be disadvantaged. Staff and port representatives said the tool can include non‑contiguous parcels, that triggering can be staged so later development parcels do not lose the full value of the 25‑year capture, and that the captured increment remains in the project area by statute. Port staff said discussions with school districts and other taxing entities are part of the normal process.

Several council members said the project area could help pay for the estimated $70 million infrastructure project discussed as a regional priority. Hughes said the port authority can help assemble a capital stack and provide loans and incentives alongside local and federal funds.

The council voted 5–0 to approve a resolution supporting creation of the project area and directed staff to continue plan and budget work with the Utah Inland Port Authority. The resolution does not itself trigger tax capture; it authorizes the city to participate and start the planning steps required by the port authority process and state statute. Staff said the Utah Inland Port board will take the plan and budget up in subsequent meetings and that the city might host a board meeting if the project moves forward.