Councilmembers voted unanimously to buy the audio equipment manufacturer’s headquarters and 7.38-acre parcel for $17.5 million.
The building could become part of a wider public-private partnership on the surrounding 50 acres. Summit County councilmembers have been negotiating for four years with Dakota Pacific Real Estate, which has applied to build housing on the land, where only tech offices are allowed.
Skullcandy and the Park City Visitors Center were the only buildings constructed under the current development agreement.
Under the purchase agreement, there are 30 days of due diligence and then 30 days to close on the deal, which will be financed with bonds paid back with future revenue from existing sales taxes.
The council has said it does not intend to raise taxes or levy new ones to purchase the land.
Skullcandy’s lease generates more than $1 million per year in the meantime, county officials say. The property was listed for sale publicly, and county officials said they were not the only interested party to make an offer.
Summit County is buying Skullcandy from a subsidiary of Dakota Pacific, so none of that money will fund Dakota Pacific's future development.
But the building could play a part in a potential land swap the council and developer have discussed in public meetings. That included expanding the Kimball Junction Transit Center and park-and-ride, while moving county services to a new building near Skullcandy.
Now, Skullcandy could be that building. County officials will explore sharing the space with the audio equipment company, said Councilmember Chris Robinson.
“We're respectful of Skullcandy and value them in this community,” Robinson said May 9, “and have had some discussions and believe that we can work together to phase in to occupying portions of it, as we need it.”
It's cheaper than new construction, councilmembers say, citing the county's experience attempting new construction at Silver Summit.
“We considered building a building [near the Home Depot] that would provide for some additional staff space, since we have people working out of closets and other such areas right now,” Council Chair Malena Stevens said. “That became cost prohibitive, which led us to look for other options.”
Officials decided instead to expand the existing justice center after considering inflation and other unforeseen costs.
Robinson said the purchase includes an optional easement agreement for a new public road off the Utah Olympic Park roundabout’s west side, wrapping around Skullcandy.
It may provide an additional point of access to the development proposed by Dakota Pacific, which would pay for the road in full.
County officials said Skullcandy is aware of the sale. The company had not responded to KPCW’s request for comment as of Thursday afternoon.
