With bond proceeds in hand, construction of the Morale Welfare Recreation (MWR) conference hotel at the base of Mayflower Mountain Resort – a military-focused ski resort that has been in the works for more than 20 years – will begin this fall.
On Tuesday, June 1, the board of the Military Installation Development Authority (MIDA) unanimously approved revenue bonds for the Mayflower Mountain Resort Development project in Wasatch County, just to the east of Deer Valley Resort.
Mayflower is one of the largest economic development projects underway in Utah right now.
The planned mountain village includes nearly 1,600 residential units, 825 hotel rooms and 250,000 square feet of retail and commercial space.
EX Utah Development, LLC is working with MIDA on building out the Mayflower infrastructure, the MWR hotel and skier services.
The project is a public-private partnership between EX Utah and MIDA. According to a press release from EX Utah, in the first five years, the projected capital investment will be more than $3.2 billion. Eighty-five percent of the funding is privately sourced through EX Utah and other developers.
The remaining 15% will come from assessment bonds, commercial property assessed clean energy (CPACE) financing and tax allocation revenue (TAR) bonds.
Some $200 million in assessment bonds have already been issued through MIDA’s subsidiary, the MIDA Mountain Village Public Infrastructure District.
The 2021 TAR Bonds are expected to total $250 million and be paid off over 30 years.
According to MIDA Executive Director Paul Morris, MIDA will continue using a revenue formula developed in partnership with Wasatch County, whereby MIDA captures 75% of the growth in property values. Wasatch County taxation entities including the Wasatch County School District will continue to receive their previous amounts of allotted property tax revenue plus their share of 25% of the new property tax generated by the partnership.
Extell Development founder and chairman Gary Barnett provided the board with Mayflower Resort updates in person Tuesday, saying all the funds are in place to build out the infrastructure. They will continue work on the Pioche apartments and begin the MWR hotel this year. Two other planned hotels – the Skier and Five-star hotels – are in design with excavation planned for the spring of 2022.
In addition, estate lots and townhomes totaling some 300 residences are being platted. Ski lifts and snowmaking are engineered and the grading and clearing of the land will begin this fall.
The frontage road and portals under U.S. 40 to the property are ongoing. Infrastructure for the site will continue through 2024. Transit facilities are set to be built starting in 2022.
Once Extell’s property donation for the MWR hotel goes through, Park City will purchase the 26-acre Red Maple parcel on State Route 248 – previously considered as a potential site for the military hotel – for $2 million from MIDA.