OGDEN -- Infrastructure development will proceed on Powder Mountain with support from the county.
On Tuesday, the Weber County Commission agreed to back a $22.5 million bond for Summit Mountain Holding Group, with the approval of a memorandum of understanding to create a special assessment district.
The special assessment district will levy taxes within a 1,570-acre development to build a water well, holding tank, sewer system and roads on Powder Mountain.
The commission approved the 20-year bond during its regular weekly meeting.
The commission will also hold a public hearing during its regular April 9 meeting regarding a conditional-use permit for Summit at Powder Mountain Phase 1, which consists of a 154-unit residential development.
The infrastructure improvements will benefit development as well as subsequent phases.
Property owners within the assessment area, not the taxpayers at large, will be responsible for covering the nearly $1.6 million annual bond payments.
But because the county is basically co-signing a loan, the county faces some risk on the deal.
Summit managing partner Greg Mauro said there are multiple layers of security to minimize the risk to county taxpayers.
Between Powder Mountain Ski Resort and the Summit Series, the company earns enough to cover the yearly payment on its own, he said.
Mauro added that if, in an extreme case, Summit went out of business, the deal is reasonable enough that another company would swoop in and take over the debt obligations.
By backing the project, the county is supporting economic growth in the community, said Douglas Larsen, executive director of the Weber Economic Development Partnership.
"If we can find opportunities to help promote commerce," Larsen said, "these kinds of things help foster those opportunities."
Summit Holding Group plans to begin construction on the project by late summer.