Schools OK tax incentives now to reap cash later
Without the approval of the Provo Board of Education, the developer would not be planning to break ground next month for the office tower at 196 N. University Ave.
A new twist in Utah redevelopment law requires school boards to approve projects to effectively to become partners in them before cities can give property tax incentives to developers.
Since the Legislature changed the law last year, school boards have proved willing to give up millions of dollars in the short term in exchange for a future windfall. Essentially, they are making investments that help developers improve properties that then will generate millions more in property taxes for school districts and, therefore, Utah schoolchildren.
The Provo school board agreed to surrender $1.6 million in new property taxes created by the office tower for the first 12 years, with the money footing half of the bill for a parking garage on the site. Last year, the Alpine Board of Education voted to give up an estimated $14.1 million over 23 years for two hotels and a convention center in Pleasant Grove that school officials believe will spark additional development and therefore millions more in property taxes. And this month, the Nebo school board approved a $1.3 million incentive over 20 years to help Wasatch Wind build massive windmills at the mouth of Spanish Fork Canyon.
Those decisions pleased lawmakers who crafted the new law forcing cities, absent a finding of blight, to get school board permission before giving incentives to a redevelopment project. The new partnerships are called Community Development Areas.
"In the past, school districts were at the mercy of cities," said Sen. Curt Bramble, R-Provo. "We wanted to give them power to say no, but we also expect them to look at projects and expect them to be reasonable.
"The school boards so far seem to have been willing to weigh the proposals and have taken a reasonable, professional approach."
They're also asking tough questions.
"They are tough," Provo Mayor Lewis Billings said of the Provo school board. "It's like having a second City Council."
"They scrubbed us down pretty good," PEG Development president Cameron Gunther said.
Sources who attended the impassioned breakfast meeting at the Provo Marriott last month said the new process created healthy dialogue. School district officials expressed frustration at carrying the heaviest load. "What is the city giving up?" they asked Mayor Lewis Billings.
Recent comments
John Dougall,
I generally agree with your comment.
However,...
lifer | Oct. 2, 2007 at 10:36 a.m.
Utah law should be changed so that school districts that lie in one...
Utah Man | Oct. 2, 2007 at 8:40 a.m.
If a project makes sense, then developers will do it. There is no...
John Dougall | Oct. 2, 2007 at 12:26 a.m.
- Attempted murder case refiled 1:58 a.m.
- Sports on the air 1:38 a.m.
- This weekend on TV 1:38 a.m.
- Birthdays for Saturday, July 11 1:38 a.m.
- 2 men cited on LDS plaza 1:37 a.m.
- S.L. man spots stolen car — his 1:23 a.m.
- Girl critical after run-in with train 1:23 a.m.
- Probe of death treated as slaying 1:22 a.m.
- Taylorsville man arrested in robbery 1:21 a.m.
- HBO defends U. logo use in 'Love' 1:20 a.m.
- Jazz brass debate Millsap match
- LDS seminary principal arrested
- 2 men cited on LDS plaza
- Reactions on Boozer speculation
- Teacher faces new sex charges
- HBO defends U. logo use in 'Love'
- Jazz finances not quite so bleak
- Jazz talking Boozer trade?
- Jazz down Oklahoma City
- Twitter lets fans communicate, interact
- LDS seminary principal arrested
160 - Bronco collecting a galaxy of recruits
141 - Jazz talking Boozer trade?
136 - Blazers may offer Millsap a contract
123 - Jazz brass debate Millsap match
99 - Stadium of Fire flag burning was fake
94 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
74 - Letters: Single-payer system best
72 - Services bids farewell to Jackson
70
As more and more dads are put out of work in this economy, I've been...
The photographs are mysterious, brooding, dark. They show dimples and...
I love Millsap, and the Jazz will find a way to move Boozer and match for...
i think its childish to assume that somebody would actually want to get...
Millsap and Boozer need to stay in Utah. Millsap is Boozers backup while he...
Childish and immature? Its always easier being ignorant and presuming things...
can you use words like testimony and church leadership to critisize a...
Bro P really helped me through a tough time in my life when I had him in...
These are only allegations at present, but I hope when he goes to trial, the...
My thoughts are with the Pratt family right now. Michael I hope you are...
It is interesting that everyone who seems to be a member comments on how nice...
You presume, simply because they were gay, that they were trying to "stir...

