The county council voted unanimously June 5 to allow staff to issue the bonds needed to buy Skullcandy’s headquarters building and land in Kimball Junction.
Councilmembers decided to purchase the building and land for $17.5 million in May. County staff estimates renovations could cost $12.5 million, so they have recommended up $30 million in bonds.
The council’s vote sets certain limits on those bonds. A county staff report shows the bonds must be paid back after 21 years, and the interest rate could not exceed 6%.
The county says it plans to pay back the $30 million with existing sales tax revenue. By taking over Skullcandy’s lease, it will also earn more than $1 million per year from the audio equipment company, which will be renting its office space from the county.
By law, the county can’t bond until it holds a public hearing, which is currently scheduled for June 26 at 6 p.m.
There won’t be another vote at that hearing, says County Manager Shayne Scott, so the bonds are issued 30 days from June 5 unless staff decide not to bond.
Councilmembers have said the Skullcandy building could play a part in a public-private partnership on the surrounding land in western Kimball Junction.
Developer Dakota Pacific Real Estate has been negotiating for the right to build housing on its roughly 50 empty acres there. The county has proposed Dakota add community needs like expanded transit facilities to its plan.
That could mean knocking down the existing Sheldon Richins Building—which houses the library, Department of Motor Vehicles and other offices—expanding the adjacent transit center, and then moving county services to the Skullcandy building. In that scenario, the county and company would share the building.
Councilmembers say repurposing the existing Skullcandy headquarters saves money compared to new construction.
