Provo Council to talk on Action Target deal

PROVO — A public hearing added to tonight's Provo City Council meeting is a sign that the city is close to closing a $3.3 million deal to buy Action Target's property near Dixon Middle School and move the company to the Mountain Vista Business Center.

If the deal is completed, Action Target would move to 10 acres in the business park by 2009. It would buy the property from the city for $1.1 million.

The additional public hearing was added as an amendment to the agenda on Monday afternoon, joining five others on the agenda for the 7 p.m. meeting at 351 W. Center

During the hearing, the council will consider authorizing Mayor Lewis Billings to execute a $1 million loan agreement for the purchase of property at 1281 W. 220 North.

That $1 million is the final piece of the $3.3 million purchase and move package. The cash isn't immediately available because it would come from Neighborhood Housing Services after Action Target left the west side and Provo sold part of the land to NHS.

To provide Action Target the money at closing, the mayor is proposing a loan from Provo's capital resource fund to Action Target for 18 months to two years at 5.25 percent.

Interest on the loan could cost Provo roughly $75,000 to $100,000, said John Borget, city finance director, during a recent meeting.

The city could make back that interest. If Action Target takes longer to vacate the property than 18 months, it would accrue fees that, if it remains for 24 months, would cover Provo's interest payments on the loan.