From Deseret News archives:
Spanish Fork OKs shopping center
Council paves the way for deals with retailers
The center is projected to generate at least $3 million for the city over the first 10 years after its completion, slated for 2009.
"That is one of the driving factors of creating this area," Councilman Matthew Barber said. "That's a lot of money to help offset the cost of the services we provide as a city."
The creation of a CDPA allows the city to reach formal agreements with retailers for the site, which is anticipated to house two big-box stores, three or four smaller stores and a number of smaller retail sites for a projected total of 420,000 square feet of retail space.
Financial advisor Jonnalyne Walker, who has consulted with Spanish Fork on previous projects, presented the findings of a cost-benefit study she prepared to the council at Tuesday's meeting.
The report predicts a lot of green in Spanish Fork's future.
At present, Spanish Fork collects about $3,000 annually in total taxes on the area involved in the North Park CDPA, Walker said. All the tax revenue is from property taxes; there is no retail in the area at present.
According to Walker's study, the city would see an average annual net income of $298,000 from the project once it is completed, based on projections of property tax revenue and the city's share of the sales tax revenue. That figure would mark a 10 percent increase in sales tax income for the city.
But city leaders said Walker's projections are on the extreme conservative end, a "worst-case scenario," as one council member put it. Based on where the city stands each year in the complicated formula the state uses to distribute sales tax to municipalities, Spanish Fork could make up to $6.5 million off the project in the first 10 years.
"To me, this is a much more appealing way to (increase revenues) as opposed to increasing property taxes," said Councilman Wayne Andersen.
The North Park deal has not been without its doubters, however. When the plan was first presented by the city last year, it was met with widespread disapproval from residents who didn't like the way North Park would be redesigned as part of the project — and from residents of a few dozen households that will be displaced by the project.
Tuesday, however, no residents spoke against the plan during the public hearing, and city officials said they had received no written complaints. The only concern raised by residents was over the city offering incentives to potential retailers. But council members said no deals have been reached and any incentive deals will be done in full view of the public.
"We don't like the way the game is played, but we have to play it," Barber said.
Andersen offered a bit of comfort to residents concerned about the incentives deal.
"One thing that's safe to say is we won't give up more than we anticipate getting in," he said.
E-mail: jtwitchell@desnews.com
