Taxing Entity Committee
Redevelopment Agency of
Tremonton City, Utah
Minutes
June 13, 2017
3:30 p.m.
Tremonton City Council Chambers
Tremonton City Hall
102 South Tremont Street
Tremonton, Utah 84337
1. Welcome
Chairman Fridal called the meeting to order at 3:37 p.m. and welcomed those present. The meeting was held at the Tremonton City Council Chambers on June 13, 2017 at 3:30 p.m.
2. Introduction of Committee Members
a. Identification of voting members of the Committee and which taxing entity that they represent
The following Taxing Entity Committee Members were in attendance: Board Member Rod Cook representing Box Elder School District, Board Member Dr. Ronald Tolman representing Box Elder School District, Board Member Mitch Zundel representing Box Elder County, Board Member Jeff Scott representing Box Elder County, Alternate Von Hortin representing Utah State Board of Education, Director Shawn Warnke Tremonton City, Mayor Roger Fridal Tremonton City, City Councilmember Lyle Holmgren Tremonton City and Linsey Nessen TEC Secretary.
Also in attendance was Tremonton Community Events Director Marc Christensen.
Excused: Natalie Grange, Utah State Office of Education.
3. Approval of Minutes – June 15, 2016 – stands as approved
4. 2016 Tax Increment and Distribution – Shawn Warnke
a. West Liberty Foods Economic Development Area
Director Warnke stated the RDA received a check in the amount of $1,387,311 from the West Liberty Foods EDA. There are two obligations associated with this project: to reimburse West Liberty Foods in the amount of $1,010,866.17 and to reimburse Millard Refrigeration in the amount of $98,982.63. The calculation used for reimbursement takes a look at the taxes they have paid in and their proportionate share of the increment remaining and is distributed that way.
This project area also has a housing component and the first percent is taken for housing, which was $277,462.20. The RDA has partnered with the County and received grants to rehabilitate low to moderate income homes in Tremonton.
Mayor Fridal asked how much time is left on this project area. Director Warnke stated the 2017 increment, which will be received spring of 2018 will be the last. Jeff Scott clarified it was a ten year project area. Director Warnke stated is was and was a successful project and hit all its objectives.
b. Tremont Center Community Development Project Area
Director Warnke stated this year the RDA received a check in the amount of $31,885, which was all remitted back to the developer. The developer recently submitted his expenses within the project area budget and he is close to $1M in reimbursable expenses. The tax increment received of $31,885 takes into account the value of some of the partially constructed buildings, but there is still plenty of acreage to continue.
5. 2016 Annual Agency Reports – Shawn Warnke
a. West Liberty Foods Economic Development Area
Director Warnke stated the base value in this project area was $417,300 and right now, because of this project area and investment made, the taxable value is $101,049,685. Tax increment for that will be received by the taxing entities in spring of 2019 for 2018’s increment. This project area created around 500 jobs, right around the time of the closing of the Lay-Z-Boy plant in Tremonton, and also met their objectives with wages as well.
b. Tremont Center Community Development Project Area
Director Warnke stated the base taxable value for this project area was $10,312,013 and the marginal value, as assessed by the County Auditor, is at $3,096,591. The actual to forecasted funds is about $12K different as increment was estimated to come in at $44,061 and was only $31,885. It’s a little early to tell how this is going to play out, but because of the timing, there was a lot of construction in progress.
The good thing about this project area is that the City has seen new businesses come to town and some existing businesses relocating to this project area. The developer of this project area has also purchased the old King’s building and has renovated it and created individual suites, all of which are occupied, several by new businesses to Tremonton.
City Councilmember Holmgren stated the City’s sales tax revenue has also steadily grown. Director Warnke stated and increase in sales tax was one of the objectives we hoped for. Mitch Zundel asked if the City is taking any sales tax revenue off that project area. Director Warnke stated it is not.
Director Warnke reminded the members this project area is a 15 year project area or has a cap of $4.3M, whichever occurs first.
6. Questions or comments from TEC Committee members
Mitch Zundel expressed his appreciation to Ronald Tolman for his service.
7. Adjourn
Motion by Mayor Fridal to adjourn the meeting. Seconded by consensus of the board. Vote: Rod Cook – aye, Ronald Tolman – aye, Mitch Zundel – aye, Jeff Scott – aye, Von Hortin – aye, Mayor Roger Fridal – aye and Lyle Holmgren – aye. Motion approved.
The 2016 Taxing Entity Committee Meeting adjourned at 3:53 p.m.
The undersigned duly acting and appointed secretary for the Taxing Entity Committee hereby certifies that the foregoing is a true and correct copy of the minutes of the Taxing Entity Committee Meeting held on the above referenced date. Minutes were prepared by Linsey Nessen.
Dated this day of , 2017.
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Linsey Nessen, Secretary