OGDEN -- The Ogden Redevelopment Agency is negotiating the sale of about 6 acres downtown to Salt Lake City-based SouthRiver LLC for the construction of 69 townhomes and commercial space as part of the long-awaited Ogden River Project.
SouthRiver is under contract to purchase RDA property for $1.3 million, according to a proposal from the corporation. The developer would pay $741,000 by July 30 and the balance of $559,000 through tax increment.
Tax increment financing is a tool that captures projected property tax revenue created by a development and then allows those funds to be invested for improvements associated with the project.
SouthRiver also intends to make a private investment of $16 million to $20 million in the project, according to its proposal.
"SouthRiver LLC will use cash from their existing sources to capitalize the transaction," the document says.
The 6-acre parcel, located east of Grant Avenue between 20th Street and Park Boulevard, that SouthRiver intends to buy would be the first phase of the project, said Jonny Ballard, the city's community development manager.
However, the project could eventually encompass another 2 acres, H. Blaine Walker, a managing principal with SouthRiver, said Wednesday. Other SouthRiver partners include Scott Sauric, Michael D. Gabel and Bjorn T. "Bill" Bang.
The RDA board, made up of the city council, has yet to approve the sale of property to SouthRiver or approve a development agreement.
Work on the development, which may start in June, would be the first of its kind in the Ogden River Project that has been on the drawing board since 2002. The project area encompasses about 60 acres straddling the river from 18th to 20th streets and Washington Boulevard to Wall Avenue.
The first phase of the SouthRiver development would include at least 69 townhomes as well as retail space along the Ogden River and the west side of Washington Boulevard, said Walker.
Additional townhomes and apartments would also eventually be built adjacent to the river, Walker said, estimating it would take up to three years to finish the development.
Walker said he envisions young families and single individuals who want to live in Ogden's downtown area as being the primary purchasers of townhomes.
SouthRiver is excited about being the first firm to construct mixed-use buildings as part of the project, he said.
"We will be the settlers," Walker said, adding the project will be enhanced by renovations under way at the nearby Ogden Temple of The Church of Jesus Christ of Latter-day Saints and additional development planned in the river project.
Steve Peterson, managing partner of Millrock Development LLC, based in Holladay, has said his company has a letter of understanding from Gadi Leshem -- whose firm, Ogden Riverfront Development, is the main owner of river project property -- to be the major partner in the river project.
In addition, Millrock has said he would invest capital in the development.
Millrock has completed several projects, including Millrock Park, which includes four buildings in Holladay with 490,000 square feet of class A office space. Peterson is not related to developer Chris Peterson, owner of Malan's Basin.
This topic is being discussed at the Weber County Forum.