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How the 4100 South extension will be paid for: state funds, prior appropriations and developer escrow
Summary
The packet breaks down financing for the road: $1.8M state appropriation secured in 2025, up to $3.0M authorized in 2026, and a $750,000 escrow from D.R. Horton to cover overruns; the City will reimburse D.R. Horton on a cost‑reimbursement basis as invoices are submitted.
Magna's Agreement with D.R. Horton details the funding structure for the 4100 South extension. The parties record $1.8 million in state appropriations secured earlier and the City requested up to $3.0 million in 2026; together those amounts are referred to in the Agreement as potential State Funds. The Agreement also requires D.R. Horton to deposit $750,000 into escrow to be used for cost overages above the state funding baseline.
The Agreement specifies reimbursement mechanics: up to $3.0 million is to be disbursed on a cost‑reimbursement basis prior to July 1, 2026, with additional reimbursement up to $1.8 million thereafter. If the final cost exceeds $4.8 million, the Agreement provides for reimbursement from the Escrow Funds for amounts up to $750,000 and defines how any remaining escrow will be split. The packet notes the Legislature made up to $3.0M available for the project on March 7, 2026.
