Funding approved for Cottonwood Mall project

HOLLADAY — A special tax entity committee voted Friday morning to approve funding for a European-style commercial and residential village to be built in place of the Cottonwood Mall on Highland Drive.

Officials from the Granite School District, Salt Lake County, Holladay City and a representative for minor tax districts voted to approve the deal, which will cost about $96 million over 20 years. Six votes were needed.

A representative for the Utah School Board abstained from the vote. Larry Newton said afterward he had met with the board and with executives and they instructed him to abstain from voting unless the abstention meant halting the project.

The state board wanted to support the district but also had problems with the size and cost of the project, Newton said. The board was also concerned that building the village could result in increased taxes for Granite School District but reduced funding for other districts statewide.

In addition, the board was concerned that no independent study on the project was performed, Newton said. However, it supported the project and didn't want to impede the developer's progress.

"(The abstention) was not a political move," Newton said. "The importance is that (the favorable vote) happened."

The $96 million will be supplied to the developer via tax-increment funding and is expected to be spent on infrastructure problems with the mall site, which sit on a flood plain.

A portion of property and sales taxes paid by the development to the taxing entities that made up Friday's board will be routed back to the development over time.

The site near 4500 South is owned by General Growth Properties, the second-largest owner of malls in the United States.

"We're really excited about the approval to move forward with this great project," said Kris Longson, development spokesman.

Salt Lake County Mayor Peter Corroon voted affirmatively on the project based on a condition that money would be provided for low-income housing in Holladay. A resolution to add low-income housing was added to the RDA resolution at the last minute during Friday's meeting.

"The city committed to work for affordable housing," Corroon said. "The program will be put into place over the next few months."

Corroon also spoke Friday of planned fund raising for the school district over the life of the RDA. He hopes that annually at least $50,000 would be raised by the county and city. That could be added to funds raised by merchants in the development, Corroon said.

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E-mail: RPalmer@desnews.com