Heber City’s community reinvestment agency, or CRA, is meant to spur downtown revitalization. The plan relies on tax sharing agreements to help finance new development in the city.
Local governments participating in the CRA agree to defer some of their tax revenue from new property value in the area for a set amount of time. That increment is used to pay for redevelopment projects.
At a city council meeting Nov. 18, the developers of Station Seven won leaders’ support to use tax increment financing for their planned mixed-use village.
The development, formerly known as New London, will sit north of Smith’s Marketplace.
The developers say the CRA will help them build a higher-quality project, with a hotel, parking garage and extensive community gathering spaces. Those amenities would be in addition to residential and commercial development that’s planned either way.
Without the CRA, the developers estimate the city will receive around $6 million in revenue over 30 years. With the tax increment, Heber’s estimated revenue would be about $16 million.
The council disagreed about how much benefit Station Seven could offer the city.
Councilmember Scott Phillips said he thinks Station Seven will be “an amazing investment” in Heber’s future.
“Just with the addition of Deer Valley East Village, when people are starting to book their winter trips, they’re looking into Wasatch County as well,” he said. “There is a need for this type of thing, and I don’t know anybody in town that doesn’t want more restaurants.”
Councilmember Sid Ostergaard said he’d like to explore more ways to mitigate the traffic impact of the development, like partnering with High Valley Transit and making developments more walkable.
“That’s the only way we can reduce [it],” he said. “If we have that public transit, that’s how we’re going to reduce cars.”
Councilmember Yvonne Barney said she was not willing to vote “yes” on the project. She argued the CRA is meant for central Heber, not the area around Smith’s.
“I know that in your mind, because you are developers, this is fantastic,” she said. “You benefit from this; you say we benefit from this. I don’t think we benefit from this, as citizens. I think you’re asking us to reach deep into these shallow pockets and hand you more money.”
Tax increment financing only reallocates revenue generated by new growth. The city would keep 100% of its existing tax base.
Councilmember Mike Johnston said the project will benefit Heber’s overall economic development, especially if it includes components like a parking garage.
Heber leaders have said creating more parking infrastructure is one of their top goals to make it easier for residents to visit shops, restaurants and events downtown.
“I believe what you’re doing here is a very good thing for our downtown,” he said. “It’s a significant good thing, and I really like it.”
Johnston made a motion for the council, acting as the CRA board, to support the project. The vote was 3-2, with Barney and Councilmember Aaron Cheatwood dissenting.
Later, the developers will need to get the specifics of their project approved by the city council. Station Seven is also looking for tax increment financing support from Wasatch County and the county school board.
Heber City is a financial supporter of KPCW.
