A smaller portion of the property tax collected within the boundaries of the Bountiful Redevelopment Agency will stay with the agency this year.
Under a new state law, redevelopment agencies must reduce their collections by 20 percent, with the returned money to be divided among the traditional taxing agencies.Bountiful's Redevelopment Agency will collect only $290,000 this year, compared to some $364,000 this past year. Other income, including interest on investments, rental income, a donation from Bountiful's general fund and a $25,000 carry-over from the current budget will give the agency total revenues of $376,350 for the new budget year, which begins July 1.
If the proposed budget is approved by the agency's board, administrative costs will be reduced by about 9 percent, from this year's $125,998 to $116,650. The reduction does contain a 3 percent cost of living increase for the agency's two employees.
The rest of the budget would go to operating programs, most of it going to a $220,000 payment to redeem tax increment bonds. About $18,000 will be available for new projects.
Director Randy Sant said the budget is basically intended to maintain current projects, including the downtown rehabilitation effort. No major projects are planned this year.
The agency will be accepting new proposals for a downtown renovation project on agency-owned land on the east side of Main between Center Street and First South. A previous agreement with Collier Development of Salt Lake City is dead, Sant said, and new proposals will be accepted through May. A prospectus is being sent to area developers and will be advertised in regional publications. The prospectus outlines what the agency would like to see happen and what resources are available to aid in that effort.
"We'll accept proposals through the end of May and then will spend about 30 days reviewing the responses to see if there is something we can use," Sant said.
Collier had proposed a five-story office/retail complex but was unable to secure financing for the project. The company recently ran into financial problems with its South Towne development in Sandy, further hurting plans for the Bountiful project.
Sant said the city will be careful in finding a new developer. Responses will have to include a plan proposal, an outline of equipment and other resources available to the developer, and a financial statement.