OGDEN — Ogden officials have narrowly given the green light to a $9.69 million development project that entails handing a 2.7-acre parcel over to the private sector.

The Ogden Redevelopment Agency, made up of Ogden City Council members, voted 4-3 on Tuesday to move forward with a plan that calls for development of 26 townhomes on the vacant city-owned parcel just east of St. Joseph Catholic Church at 550 24th St.

Per the plan, Henry Walker Homes will develop the homes, receiving up to $870,000 from the city to extend Porter Avenue through the parcel to connect 24th and 23rd streets.

The transfer of the land — which prompted questions from some — will enable development of higher-quality housing than otherwise possible if the private sector took on the project without city assistance, officials maintain. The project is part of the city’s Quality Neighborhoods Initiative, designed to help revitalize older, more worn sections of Ogden.

“We know that if we wanted to sell it, we could get some money for it. But that’s not the intent of this project. We’re not trying to sell it for money,” said Jeremy Smith, deputy manager for community development in the Ogden Community and Economic Development Department. “We’re trying to make sure the product and the vision for this development happens, and for that to happen, that requires the contribution of land.”

According to figures crunched by the Community and Economic Development Department, the project — at the quality level envisioned — would cost $11.34 million to develop, including the value of the land and the cost of building Porter Avenue. But with sales income from the units estimated at $10.88 million, the developer would end up taking a loss of some $460,000.

By contrast, if the city provides the land for free to the developer and covers the cost of the Porter Avenue extension, the cost to the developer falls to $9.69 million, allowing for a gross profit of $1.19 million based on the estimated sales revenue. Another point receiving attention was the selection of Henry Walker Homes, a subsidiary of J. Fisher Cos.

J. Fisher Cos. and its subsidiaries are also involved in the Union Station, WonderBlock and Capitol Square development projects.

Ogden resident Heath Satow expressed concern at one developer handling so many major projects in Ogden.

Other officials wondered about the process followed by officials that lead to the selection of Henry Walker Homes. Just two firms, including Henry Walker, responded to the city’s request for qualifications from developers for the project.

“We’re not going to get everybody to bid on everything. But we certainly ought to do better than get two people in a booming economy,” said Councilperson Richard Hyer.

Council chair Ben Nadolski had tougher words, noting that some developers feel left out when the city is seeking development partners, an issue he’s brought up previously. “Everybody I’ve talked to says, ‘I don’t want incentives, I just want an opportunity to compete,’ and that’s what I think that we lack, is an opportunity to compete for these opportunities,” he said.

Nadolski questioned the notion of donating the land, or at least providing incentives to the scale proposed in the plans. “I think in this case, it’s not the project that I dislike, it’s just that I’m not convinced we got the best value for Ogden,” he said.

Voting yes for the plan were Hyer, Marcia White, Bart Blair and Ken Richey. Voting against were Nadolski, Angela Choberka and Luis Lopez.

A three-story office building and a single-story commercial building once sat on the land at 550 24th St. After they were vacated, they started declining in condition and the city acquired the property to alleviate blight in the neighborhood and promote redevelopment.

Newsletter