WEST VALLEY CITY — For years, city officials have struggled to put a face to West Valley's downtown. Now, with a mall suffering a slow agonizing death and a nearby residential area city officials say is slumping in value, the city is about to undertake the largest downtown redevelopment project in its history.

"We look at this as a vital step for our community to move forward," said Councilman Russ Brooks, adding the city has long needed a "focal point" to give the community an identity.

Wednesday, city economic development officials introduced the proposed budget for the redevelopment project to the RDA committee. The committee is comprised of officials from West Valley, Salt Lake County, Granite School District, the state school board and other entities that stand to lose increased tax revenue from the area over the next 15 years.

According to the budget, a total of $15.6 million in taxes will be redirected from the area. By law, 20 percent of those funds will be used to build low-income housing in the area, said city economic development planner Brent Garlick.

One of the biggest changes to West Valley's city center is word that Costco may build a warehouse south of the Valley Fair Mall, where Granger Elementary School currently stands. Granite School District officials said plans are already being looked at to relocate Granger Elementary.

The city has also offered Costco $2.5 million in tax break incentives, unrelated to the redevelopment project, to build the store.

Realities are, Garlick said, that West Valley's city center is too economically depressed for Costco to have any positive effect in the area.

Already the City Council has declared a finding of blight in the area, noting that 98 percent of the property is in "economic deterioration" and 87 percent of 104 property parcels meet the criteria for blight, including a lack of investment in homes by property owners over the past few decades.

Garlick specifically pointed out some 22 homes on Lehman Avenue as having suffered "long-term" neglect by owners. A mobile home park directly north has also been targeted for new construction.

But with a new TRAX station coming in within the next five years, city officials are looking to make major changes. Garlick said Lehman Avenue might be rezoned for future commercial and retail, while property north of Lehman Avenue to 3500 South could be a site for high-density condominiums, marketable to those who want to be near TRAX.

Officials are looking to totally change the Valley Fair Mall, which has suffered a 35 percent decrease in sales over the past five years and a rise in store vacancies.

Already developers like Boyer Corp. and Woodbury have told city officials that a developer would have to spend between $25 million and $30 million just to turn the mall around. "You have to spend a lot to really turn it around," Garlick said. So far no developer has offered to take on the mall.