Friday , June 23, 2017 - 5:00 AM
OGDEN — Ogden City will extend the tax break period for a multimillion dollar redevelopment project in West Ogden.
Earlier this week the Ogden City Council, acting in their capacity as the city’s Redevelopment Agency board, unanimously approved a resolution that will modify Ogden’s plan and budget for its Trackline Economic Development project.
The modifications will allow the city to extend the time tax increment can be collected for the project by 12 years — until 2045.
Brandon Cooper, Ogden’s deputy director of Community and Economic Development said the resolution also extends the project’s original budget amount from $10 million to $18 million and will generate an additional $5.3 million in tax dollars that will be used to fund future improvements at the site.
The Trackline development includes 122 acres between 24th Street and Middleton Road from the railroad tracks to G Avenue. Once home to the Ogden livestock yards, the area was once a thriving economic hub, but had grown dilapidated and has been mostly dormant since the stock yards were shut down in the 1970s.
The development will include a mix of commercial, manufacturing and light industrial space, including a 51-acre outdoor recreation business park called the Ogden Business Exchange. The park is centered around the historic Ogden Exchange building, once the administrative home of the stock yards.
OBE Vision, LLC, part of the Centerville-based Ascent Construction company, serves as the park’s developer and bicycle components manufacturer ENVE Composites operates as the anchor tenant.
Cooper said the development could ultimately accommodate 12 or 13 businesses, producing 500 to 700 new jobs.
The tax increment extension is needed to create additional funds to cover costs of “unforeseen” conditions at the site related to power and utility construction and environmental remediation work, Cooper said. The city had to remove petroleum and heavy metals from soil in the area.
Cooper said the extension is not a new tax increase and won’t affect property taxes in the West Ogden area or anywhere else in the city.
“All this does is allow the agency to collect the property taxes that otherwise would have gone to those various other taxing entities,” he said. “For a longer period of time, up to a larger amount of money than what was previously approved.”
Tax Increment Financing diverts future increases in property tax revenue to certain projects. So while the deal won’t increase taxes, it will allow the city to collect tax dollars for the project that otherwise would have gone to places like the school district, water districts and emergency services.
In a press release, Ogden council Chair Marcia White said the development is worthy of the TIF funding mechanism and the extension, having “encouraged and assisted economic development to create additional jobs within the community.”
A Taxing Entity Committee, made up of representatives from local taxing agencies, unanimously approved the extension in May.
You can reach reporter Mitch Shaw at email@example.com. Follow him on Twitter at @mitchshaw23 or like him on Facebook at Facebook.com/MitchShaw.StandardExaminer.
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