Success in land sales at Provo's East Bay Business Park is making it possible for the city to complete all major infrastructure in the park, the project manager says.
The City Council appropriated $1.28 million in the East Bay Capital Improvement Projects Fund this week for various capital improvements. That money comes from the proceeds of properties sold in the business park.When a piece of property sells at the business park, 40 cents of every dollar goes toward the infrastructure. The $1.28 merely represents the city's 40 percent of land sales, said Mike Vanchiere, East Bay project manager.
"We have had phenomenal success attracting businesses and we have experienced rapid growth in general," said Mike Vanchiere. By March, 400,000 square feet will be under construction at East Bay.
He said the money will go toward landscaping, road construction, stoplight construction, advertising and promotion and demolition of the old parks building on University Avenue.
Stoplights will be installed at the 12th South intersection in preparation for the K mart shopping center and at East Bay Boulevard and 180 East (Novell Road).
Most of the money, however, will go toward the construction of 16th South and Kuhni Road, located at approximately Fifth South.
Vanchiere said East Bay is ahead of schedule in repaying its bonds and has an outstanding principal balance of $2.95 million. The original amount of the municipal purpose revenue bonds, taken out to fund the initial infrastructure at East Bay, was $3.7 million.
In June the city will make another $1 million principal reduction payment, which will allow the city to pay off the 10-year bond in two years, he said.
"We feel confident that by December we will have the bonds paid off," he said. At that time city officials expect about 60 acres in the south area of the park to be the only property for sale.