ROY — The city of Roy will foot the bill to demolish a vacant structure that used to house a Chinese restaurant at the Marketplace Plaza at the busy Riverdale Road-1900 West intersection.
“We would like to see that gone. It’s an eyesore, plain and simple,” said Randy Sant, a consultant to Roy’s Redevelopment Agency Board, made up of the Roy City Council and mayor.
The old Chinese Gourmet Deluxe Buffet has sat vacant for a year or more, according to Mayor Bob Dandoy. Per the plan the RDA board approved Tuesday, the city will cover the cost of tearing down the building on the condition that the owner, Woodbury Corp., find a new retail tenant to occupy the space, within the Marketplace Plaza parking lot northwest of Harmons Grocery.
Woodbury has estimated the demolition cost at $35,000, according to Sant. But Sant noted that if a fast-food eatery were to take over the space, it could generate perhaps $4 million in sales per year, which would translate into around $45,000 in sales tax revenue for the city, recouping that cost.
The terms of Tuesday’s plan call for demolition within six months and a new tenant within two years. If Woodbury doesn’t meet the terms, it would be on the hook for repaying demolition, plus interest.
Also Tuesday, the RDA Board approved plans calling for creation of three new special districts — called community reinvestment areas, or CRAs — that would allow tax funds to be used in each for redevelopment.
One of the CRAs would be located around the old Planet Fitness building at the northwest corner of 1900 West and 5600 South and another would be located northeast of that on the east side of 1900 West and south of Riverdale Road. The third would encompass the Utah Transit Authority FrontRunner station in Roy and undeveloped land along the rail line there.
Now, following Tuesday’s action, the borders of the three districts will be fine tuned and city officials will have to OK the final boundaries, once determined.
CRAs tap property tax revenue generated by new development and funnel it to redevelopment initiatives within their boundaries. Such funding — which would otherwise go to the city government, county government, school districts and other taxing entities — can serve as an incentive to would-be developers. City officials say a developer is potentially interested in using the old Planet Fitness space.