Taxing Entity Committee
Redevelopment Agency of
Tremonton City, Utah
Minutes
June 15, 2016
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 3:36 p.m. and welcomed those present. The meeting was held at the Tremonton City Council Chambers on June 15, 2016 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 Clint Burt representing Bear River Water Conservancy District and Box Elder Mosquito Abatement, Board Member Rod Cook representing Box Elder School District, Board Member Mitch Zundel representing Box Elder County, Jeff Scott representing Box Elder County, Alternate Jim Christensen representing Box Elder School District, RDA Director Shawn Warnke Tremonton City, Mayor Roger Fridal Tremonton City, and Linsey Nessen TEC Secretary.
Also in attendance was Tremonton Treasurer Sharri Oyler.
Excused: Dr. Ronald Tolman, Box Elder School District, Natalie Grange, Utah State Office of Education, Jeff Reese, Tremonton City Councilmember, and Lyle Holmgren, Tremonton City Councilmember.
3. Approval of Minutes – June 18, 2015
Minutes of the June 18, 2015 Taxing Entity Committee Meeting were sent to the Taxing Entity Committee (TEC) members for review. No corrections were made; therefore, the minutes stand as approved on September 22, 2015.
4. 2015 Tax Increment and Distribution – Shawn Warnke
a. Freeway Interchange Project Area
Director Warnke stated this is the last year for this project area. Next tax year the taxing entities will see an increment. There was a provision in the agreement that every 5 years the reimbursement was cut down so the taxing entities were receiving more and more increment so it won’t be a tremendous increase, but the project area has run its course and accomplished its objectives.
This project area had three obligations listed in order of priority: to reimburse Tremonton City for the fiber infrastructure project up to $75,000; to reimburse Malt-O-Meal for sewer treatment capacity that was added to the City’s wastewater treatment plant; and to repay the City a debt associated with some of the infrastructure improvements in the project area.
The first two obligations were met but there was not enough increment to repay the City the full amount. The RDA took resolution and agreement to the City and the City accepted forgiveness of the loan and it was ended on the balance sheet. Jeff Scott asked how short it came to meeting the third obligation. Director Warnke stated it was about $350,000.
There wasn’t enough money to reimburse Malt-O-Meal totally, by about $80,000. The agreement stated Malt-O-Meal would be reimbursed $1 million or through tax year 2015, whichever came first. Malt-O-Meal received $918,000.
Rod Cook asked if Director Warnke could get him the final value and taxes, which would be helpful when speaking with Board Members. Mitch Zundel read from a report the total taxable value is $21.2 million. The School District’s portion was $106,670.
b. West Liberty Foods Economic Development Area
Director Warnke stated the eighth year of this project is coming to a close with only a few years left on this development area, at which time the taxing entities will realize the tax increment.
The agency has obligations for reimbursement for developer improvements for Millard Refrigeration and West Liberty Foods. The tax increment for this tax year was $1,459,000, with 20% coming off the top for affordable housing, which was $291,000, and 8% reimbursed back to Millard, which was $96,000. West Liberty Foods was reimbursed $1 million.
5. 2015 Annual Agency Reports – Shawn Warnke
a. Freeway Interchange Project Area
This item was not discussed.
b. West Liberty Foods Economic Development Area
This item was not discussed.
c. Tremont Center Community Development Project Area
Director Warnke stated this area is currently being built out and next year should be the first year increment is received. This is a 15 year project as it was unknown how quickly it would be built out, but is actually being built out quicker than envisioned. The developer has been able to do infrastructure improvements that he would have otherwise been unable to do without this reimbursement agreement namely burying the canal to a certain point and moving power lines underground.
Shopko and Results Gym have already been built and Dollar Tree, Auto Zone, and Greer’s Hardware will be built soon. The developer has also brought a conceptual plan for three additional buildings; one will be 3,000 square feet and entirely consumed by a restaurant and the other two buildings will be 6,000 square feet each and used as office and another restaurant. There is a pretty good mix of current merchants that need a better facility and retail that is new to the City.
This project has a 15 year life or until $4.3 million is reached, whichever comes first. Mitch Zundel stated there is a housing component in this project too.
6. Appointments
a. Appointment of a Vice Chair to replace Ron Fransen
Rod Cook nominated Jeff Scott as Vice Chair. Nomination seconded by Jim Christensen. Motion by Jim Christensen to cease nominations. Motion seconded by Rod Cook. Vote: Clint Burt – aye, Rod Cook – aye, Mitch Zundel – aye, Jeff Scott – aye, Jim Christensen – aye, and Mayor Roger Fridal – aye. Motion approved.
b. Appointment of a Secretary to replace Darlene Hess
Motion by Rod Cook to appoint Linsey Nessen as Secretary. Motion seconded by Jeff Scott. Vote: Clint Burt – aye, Rod Cook – aye, Mitch Zundel – aye, Jeff Scott – aye, Jim Christensen – aye, and Mayor Roger Fridal – aye. Motion approved.
7. Questions or comments from TEC Committee members
There were no questions or comments.
8. Adjourn
Motion by Jim Christensen to adjourn the meeting. Seconded by consensus of the board. Vote: Clint Burt – aye, Rod Cook – aye, Mitch Zundel – aye, Jeff Scott – aye, Jim Christensen – aye, and Mayor Roger Fridal – aye. Motion approved.
The 2016 Taxing Entity Committee Meeting adjourned at 4:06 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