KAYSVILLE -- The Falcon Hill project will officially start generating tax dollars for the state when the new year begins.
At a Tuesday meeting in Kaysville, the Military Installation Development Authority approved a resolution that allows a 7.2-acre parcel on Hill Air Force Base to become subject to property taxes Jan. 1.
Construction crews are building a facility that will house a Northrop-Grumman ICBM facility on the parcel.
"Essentially, we had this piece of land sitting on the development that was not taxable because it's located on federal property that will now be producing some tax revenue," said Sen. Stuart Adams, R-Layton. "This is kind of the beginning of what we hope this project will do in terms of economic development."
Other parcels of land will soon follow and also will begin to generate tax dollars, MIDA officials said.
Until 2036, the tax collected on the first several parcels of land will go toward the state's portion of the project's cost, but after that, the tax revenue will go back to Davis and Weber counties.
"After that period is over, that money can be used to help pay for things like schools and other things that are needed in the community," Adams said.
The Falcon Hill project encompasses 550 acres on the base and is a $1.5 billion public- private venture of the state, Hill and Woodbury Corporation.
Terms of the partnership call for Sunset Ridge Development Partners LLC to build and maintain 8 million square feet of office space and support restaurants and hotels on 550 acres on Hill's west side.
Sunset will own the 550 acres over a 50-year lease and, as a payment in kind, will build 1.6 million square feet of office space on the base, which will allow employees to move out of a series of old World War II-era storage facilities that have been converted into office space for base employees.
When the 50-year lease is up, the Air Force will own all of the property, including the hotels and restaurants.