By Myrna Trauntvein
A public hearing will be held to take comment on the Community Reinvestment Area zone being proposed for Nephi.
This public hearing is scheduled for October 17 at 7:30 p.m. in the Nephi City Hall Council Chambers.
Residents planning to attend the hearing, where more in-depth information will be available, need to circle this date because, due to legal requirements, the hearing is a few weeks away.
“This development would be a hotel which also contains a conference space,” said Atkinson. “This would enable Nephi to be a host for conferences and take advantage of its centralized geographic location.”
Lewis, Young, Robertson & Burningham, Inc, Salt Lake City, have prepared a draft area plan and budget for the proposed CRA. At this public hearing the city will listen to any feedback associated with the draft plan and budget for the CRA area.
These documents are available for inspection at city hall.
“For several months now, the city has spoken with other local government agencies about creating a Community Reinvestment Area, or CRA, on the south side of the city to facilitate a particular development,” said Seth Atkinson, city administrator.
Like the Reinvestment Development Agencies (RDA) of the past, the CRA may elect to commit property tax increment, i.e., the increase in property tax revenues associated with new development in the project area, to help with extraordinary costs of bringing about the new development, for a period of time.
Such establishment of new project areas and commitment of this future growth in tax revenues brought on by new development takes place in cooperation with the affected taxing entities.
Mark Jones, mayor, said planning for the CRA has been in the works for several years and is a way to jump start a business with the idea that it will bring in a large amount of tax in the end.
That would be the case, he said, with the proposed development.
As part of the process for creating the Community Reinvestment Area zone, the city is required to provide a notice to owners of property in the community reinvestment project area.
“This notice was sent last week,” said Atkinson. “Also part of the process is a noticing period of 30 days for a public hearing.”
The project area is made up of approximately 1.5 acres of land located generally to the east of Interstate 15, to the west of Main Street and to the north of 1300 South. It is by Flying J, he said.
The property in the project area is currently zoned for highway commercial use and has unrealized economic potential that can be met through development or refurbishment.
Current land uses adjacent to the project area include vacant, underutilized land to the north, east and west with commercial to the south.
This Project Area Plan is consistent with the General Plan of the City and promotes economic activity by virtue of the land uses contemplated. Any zoning change, amendment or conditional use permit necessary to the successful development contemplated by this Project Area Plan shall be undertaken in accordance with the requirements of the City’s Code and all other applicable laws including all goals and objectives in the City’s General Plan.
“Once the public hearing is held, the next steps will be to adopt the plan and budget and then secure intergovernmental agreements from participating agencies,” he said.
As the property in the Project Area is currently vacant, the current population density is zero. The impact of the Project Area on the population density is expected to remain at or near zero in the foreseeable future as development currently contemplated is strictly commercial.
Building densities will increase as development occurs. The intent of this plan is to promote greater economic utilization of the land area.
“The CRA, along with property owners, developers, and/or businesses will need to construct infrastructure improvements and create better utilization of land,” reads the budget report. “It is anticipated that future development within the Project Area will create space for commercial businesses.”
It was determined that the base year property tax value for the project area will be the total taxable value for the 2016 tax year estimated to be $55,440. Using the tax rates established within the project area the property taxes levied equate to $741 annually.
Accordingly, this amount will continue to flow through to each taxing entity proportional to the amount of their respective tax rates being levied.