FARMINGTON Davis County commissioners have given a preliminary nod to a plan that would send 75 percent of the property tax revenue from a North Salt Lake-area development back to the developers instead of into county coffers.
Eaglewood Village, under construction on the southern Davis County border near U.S. 89, is transforming a defunct gravel pit into a mixed-use development with 340,000 square feet of office space, 120,000 square feet of retail, condominiums, single-family homes and trails.
Once completed, the development is expected to be valued at about $200 million.
The seven entities that levy taxes in that area of North Salt Lake would normally receive property tax revenue to help fund government operations.
But with the creation of a community development area, or CDA, the taxing entities may voluntarily send a portion of that revenue back to help the developers complete construction on the project.
The CDA revenue will help fund the costs of installing extensive drainage, widening U.S. 89 and building other infrastructure.
Davis County's letter of intent, agreed to unanimously by county commissioners Tuesday, states the county would like to participate and forgo $3 million over the next 15 years.
After 15 years, Davis County would begin collecting 100 percent of the property tax revenue.
The South Davis Recreation District and North Salt Lake have made similar agreements, though with different dollar amounts.
Ben Lowe, a principal with Compass Development, Eaglewood Village's developer, expects to make the same request at the other four taxing entities in the area: the Davis Mosquito Abatement District, Weber Basin Water Conservancy District, South Davis Sewer District and the Davis School District, whose taxes make up about 60 percent of the property tax burden for Davis County residents.
The CDA plan has found tentative favor so far because the revenue generated from the property currently is negligible, said Kent Sulser, Davis County's manager of economic development.
"The property doesn't produce anything," Sulser said.
And it hasn't produced anything for decades since gravel operations ceased.
So any revenue the project generates will be new revenue for local governments, said North Salt Lake Mayor Shanna Schaefermeyer.
And after 15 years, those entities will collect all of the revenue they're entitled to.
"We're always known as the city with the gravel pit and refinery entrance," Schaefermeyer said during Eaglewood Village's groundbreaking ceremony in December.On Tuesday, Schaefermeyer continued that message, telling commissioners that not only will Eaglewood Village become a "showcase entrance" to Davis County, but it will bring life-sustaining jobs to the county while cutting some of the traffic that flows to Salt Lake County every day.