OGDEN — Ogden City's redevelopment agency will purchase an existing business property near downtown to make way for a new development on the Ogden River.
Ogden's RDA Board (which is made up of the seven members of the city council) approved an agreement Tuesday night with Mountain America Credit Union where the city will purchase the Hoffman Cleaners Building at 1775 Washington Blvd. on behalf of MACU.
MACU is in the process of purchasing the Ogden River Inn motel at 1825 Washington Blvd., intent on building a new credit union facility there.
In 2017, the credit union entered into to a real estate purchase agreement with Ogden businessman Michael Moyal to acquire the motel property. Under the terms of that agreement, it was decided that an existing YESCO sign and associated billboard easement (held by LD Acquisition Company) must be removed from the property, relocated to a spot suitable to all parties.
The Hoffman property will provide a site for the relocation of the easement and the billboard, providing a clear path forward for the development of the MACU branch, said Ogden Deputy Director of Community and Economic Development Brandon Cooper.
The RDA will pay Hoffman owners $45,000 at closing and another $162,500 every year for four years. Funds for the $45,000 down payment will come from $100,000 that was previously allocated as an incentive for development of a hospital at approximately 12th Street and Wall Avenue, according to city council documents. The developer of that project did not meet construction deadlines to receive the incentive, making the money available for other uses.
The remaining money for the purchase will come from Business Depot Ogden lease revenues.
Cooper said Hoffman owners will lease the site from the RDA for a year after the sale is finalized, continuing to run the dry-cleaning business.
"After that lease expires, it's our intent to sell the property to another party," Cooper said. "It's a great location for a drive-thru type of business — a restaurant or fast food."
Drive-thru operations aren't allowed just few blocks north, in the city's Central Business District, Cooper said.
Although the lease agreement is set for one year, the city will list the property for sale immediately at closing. The RDA could possibly extend the lease if needed, which would generate revenue for city.
The purchase agreement between Moyal and MACU was also subject to the credit union obtaining a rezone and other city approvals required to develop the site, which includes demolishing the motel. The city council approved the associated rezones in October.
The new zoning will allow for the use of a drive-through window and expands parking limitations on the future credit union site from 15 to 30 stalls.
MACU will redevelop the site in way that "enhances and retains public open space and access along the Ogden River," according to city council documents.
The facility will be built with a "modern architectural style" featuring stone, wood and metal accents that reflect the "theme of the Ogden River." MACU will be required to keep freestanding signage no taller than the height of their building and must create a green hedge along the western property line to buffer views for properties to the west.