From Deseret News archives:

2 cities considering sharing tax revenues

Lindon, Pleasant Grove to work together on gateway development

Published: Sunday, Feb. 27, 2005 10:25 p.m. MST
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LINDON — Lindon and Pleasant Grove officials think sharing beats fighting for the tax revenue expected to be generated in the gateway development along a new road that will access the freeway interchange.

They are moving ahead with innovative plans to cooperate rather than compete in bringing businesses to town after which, they'll then divide the wealth.

Such cooperation is not always easy when an issue involves substantial revenue potential. Officials in both cities say the area is a prime commercial opportunity and the expected revenue will add substantially to existing revenues.

"I just think it's a good idea because it'll eliminate any chance for competing. Companies who want to come into the district won't need to go from one city to the other," said Pleasant Grove Mayor Jim Danklef.

Danklef said it feels like a fair idea and one he believes will be approved by the neighboring cities.

Lindon Mayor Jeff Acerson said he's also very interested in seeing the proposal go forward, a proposal former Mayor Larry Ellertson was working on when he left office in January.

Acerson listed the proposal as one of the chief reasons he decided to apply to be the mayor.

"I think there's some real potential there," he said.

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The area under discussion involves 810 acres and five tax districts located between 700 North in Lindon and 2000 West in Pleasant Grove along the new freeway road (Pleasant Grove Boulevard) that travels east from the Pleasant Grove interchange.

The public seems to agree. At public hearings in each city, there was no opposition expressed to the idea.

Under the proposed intercity agreement, the two cities would pay the bills for development with 53 percent of any generated tax revenue and split the remaining tax revenue.

An oversight committee comprised of an elected official, a city staff member and a resident from each city and the city planners, would draw up a common master plan and design guidelines for the area.

Final approval for a project would still go through each respective city's planning and land use process, however.

The city that spends money towards bringing in and or managing a project that locates in the area would be reimbursed before any revenue is shared and excess revenue would also be shared.

An independent auditor will look at the books each year as necessary to determine whether the division meets the guidelines.

Both sales and property tax revenue would be divided.

Impact fees — money paid by developers to compensate for costs created by growth — would stay with the city making the collection.

Utility services will be provided by the city which can provide the most cost-effective and reasonable services with billing done by that city.

The agreement, if approved by both cities, would stand for 50 years unless at some point, both city councils decide the agreement is impractical or unworkable.

Lindon City Administrator Ott Dameron said the two city councils intend to meet on March 8 in the Lindon City Hall, 100 S. State St., to discuss the agreement.

It will then go on the agendas in both cities for possible action on March 15, he said.


E-mail: haddoc@desnews.com

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