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Salt Lake County officials may not be big on West Jordan's financial package intended to woo Facebook, but they are just fine with more modest economic-development projects proposed by South Salt Lake, Sandy and Riverton.
The County Council agreed Tuesday to hold public hearings Aug. 30 on its intention to participate in Community Development Areas, or CDAs, the latter three cities are creating to stimulate economic development.
If it signs on after the public hearings, the council would forgo shares of the new tax revenues generated by the projects in order to give developers an incentive to make investments that would build city tax bases and address housing needs.
Cumulatively, the three projects are projected to involve investments of $125 million, said county economic development director Stuart Clason.
Council members clearly were comfortable with the structure of the CDAs, which include formal interlocal agreements between the county and the cities, with terms subject to negotiation.
The county can opt out of participating, Clason said, and it can cap its tax rebates.
In the EDA, or Economic Development Project Area, that West Jordan hopes to form to entice Facebook to pick it for a $1.5 billion data center, the city sets the terms of an agreement, the county cannot get out, and there is no cap on the payout.
Concerns about being in a negotiating hole heightened the apprehension of county Mayor Ben McAdams and several council members about giving Facebook incentives worth $240 million to invest in a facility employing 70 to 130 people.
No such concerns existed about the CDA proposals unanimously endorsed Tuesday by the council for:
South Salt Lake • The county would allow the city to retain 60 percent of its new tax increment during the next 15 years, to a cap of almost $1.4 million.
County money would pay for infrastructure and administrative fees for the 61-acre site between 700 West and 900 West at about 3800 South.
Off the tax rolls because it is owned by Utah Transit Authority, the vacant land is being turned into a mixed-use development featuring nearly 500,000 square feet of "industrial flex space" that can be arranged to serve as warehouses, offices or showrooms.
The projected private-sector investment is $5.9 million.
Randy Sant, South Salt Lake's project consultant, said work already has begun.
"This certainly would be an improvement on what's there now," said County Councilman Richard Snelgrove. Added council colleague Michael Jensen: "Getting that property back on the tax rolls for both us and South Salt Lake is a really big deal — and it already looks 100 times better than it did."
Sandy • The county would give up 75 percent of its new tax revenue during the next 20 years, to a maximum of $7.9 million, to help the city develop a transit-oriented development around the TRAX station at 115 E. 10000 South.
The $28.7 million project is expected to produce a blend of housing, office space, recreational and entertainment sites but only a minimum of retail, said Sandy Economic Development Director Nick Duerksen.
A long-term city goal is to develop a circulator bus system within Sandy's burgeoning downtown, he noted, adding that 5 percent of the county's contribution would be set aside for affordable housing.
Riverton • The biggest of the three, this project entails a county contribution of $19.1 million in tax increment, over 25 years, to develop an 85-acre "western commercial district."
Riverton Mayor Bill Applegarth said a private investment of $91 million is foreseen to start development of a commercial district at roughly 4300 W. 13400 South.
Eventually, he said, the city would like to see the district grow to 689 acres and include a TRAX station and a performing-arts center the county has planned to build in the south valley. A specific site has not been selected.
In the final five years of this deal, Clason said, 95 percent of the county's contribution, or $3.6 million, would go to affordable housing.