Kamas city councilmembers peppered the new owners of the events center in High Star Ranch with questions about their plans Oct. 28.
The four owners from High Star Ventures propose creating a special district that would finance development by taxing future — not current — homeowners.
The hotel, 17 homes and additional casitas they want to build are allowed in the High Star Ranch development agreement.
But the council and mayor were curious about the map of what’s called a “public infrastructure district” (PID). It indicates property still owned by the original High Star developer may be added to the PID in the future.
After 45 minutes of questions, one of the DeJoria Center buyers, Shane Starr, finally disclosed they are buying those lots, too.
“This week, we should be under contract for the rest of the property [in the PID]. We, I had to clear it. We have confidentiality obligations, so I wanted to make sure we were allowed to say that,” he explained. “But we have to close on or before December 5. We will own this property, so that's why it's in there.”
“Wow,” Councilmember David Darcey said.
The additional property does not include existing homes or the agricultural land on state Route 32.
High Star Venture's proposed PID is below.
None of the five councilmembers seemed ready to approve a PID. Councilmember Jessica Bateman worried about what happens if the new ownership can’t repay the debt, for example.
The owners say a PID poses no risk to Kamas City.
A PID would issue a bond that is picked up by investors and paid back with a special assessment on property owners within PID boundaries.
“The investors who purchase those bonds are accepting that risk, and the bonds are priced accordingly,” said Matt Ence, an attorney for the owners. “If that property tax revenue is less than projected, that is all that those investors are entitled to.”
Darcey did think they were overvaluing the hotel they plan to build, at more than double the value of The Montage Deer Valley. Councilmember Larry Gines said he was a hard “no” on the PID question.
A vote on it has not been scheduled.
