Park City Council Considers Terms For Two Bonds Funding Treasure Hill

Jan 14, 2019

Credit Park City Municipal

The Park City Council is considering two measures that will authorize the issuance of $80 million in bonds Tuesday. KPCW’s Emily Means has more.

The City Council will vote whether to authorize the terms of the $48 million Treasure Hill and Armstrong/Snow Ranch Pasture general obligation bond that 77% of Park City voters approved in the November election. Prior to the public vote, $16 million was reallocated from the city budget to lower the cost of the bond to $48 million for the ballot. Budget cuts were made to a planned Public Utilities building, Main Street Plaza and a variety of city repairs and improvements. Also, $700,000 was carried over from 2018.

Still, Assistant City Manager Matt Dias says the purchase of the properties is a priority for the city, so the council will consider not only the $48 million bond but also a sales tax revenue bond to partially fund the Treasure purchase and affordable housing projects.

"There are two significant financial items here," Dias said. "First is the $48 million general obligation bond, then the second is a sales tax revenue bond, and we’re using both of these bonds to do three things. The first one is to sort of end the odyssey on the Treasure Hill open-space purchase; the second is the commitment of $3 million towards Snow Ranch/Armstrong Pastures; and the third is there is some money in here for affordable housing and workforce housing. So, two financial instruments, three goals: Treasure, Snow Ranch Pastures and Armstrong and the money towards affordable housing."

Of the $32 million sales revenue bond, Dias says $10 million is allocated for Treasure Hill and $22 million will go towards affordable housing for the second phase of Woodside Park. The City began collecting an additional one-half percent resort communities sales tax in 2013, with revenue directed towards the Capital Improvement Fund to support a variety of projects. Dias says that revenue wasn’t always intended to be used for Treasure Hill.

"We have a 10-year plan for our additional resort community sales tax, and that 10-year plan was augmented in order to do what you just said, which is to put our money where our mouth is," Dias said. "We determined this was a priority for us, so we changed the 10-year plan and allocated resources towards Treasure."

Should the Council approve the sales revenue bond resolution, a public hearing to discuss the issuance of the bonds and their economic impact will take place February 14, 6:00 p.m. at the Marsac Building. The purchase of Treasure Hill is expected to happen in April.