Sandy officials: RSL stadium won't be ready for projected October opener

The Community Development Agreement agreed to by the Sandy Council Tuesday assumes that property values will increase as a result of the stadium being built. Sandy's share of taxes garnered from the increase in property value will be diverted and used to make payments on $11.2 million in bonds. The $10 million in proceeds will be given to Real for land acquisition, infrastructure construction, parking, landscaping and other improvements. The agreement will be in place for 20 years.

Taxing entities such as Salt Lake County and Jordan School District will not forego their share of Real property taxes under the agreement, though small agencies such as the mosquito abatement district and water district likely will. State law requires that each taxing entity opt-in to community development agreements.

The bonds will be paid by energy and telecommunications franchise taxes if the property value of the stadium fails to increase as planned. If property value increases quickly, the bond could also be paid off early. If it is, any tax increment money from the stadium area would go to a redevelopment agency fund.

The Real tax increment fund could raise $110 million over the 20 years, financial adviser Jason Burningham told the city.

In response to word that the county planned not to opt-in to the CDA, city officials worked out a plan to borrow money from other tax increment funding projects in the city. The proposal, rife with unknowns, will work even in a worst-case scenario, said Sandy chief administrative officer Byron Jorgenson.

---

E-mail: rpalmer@desnews.com