Nephi City has until September to decide if they want to become part of inland port

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By Myrna Trauntvein
TN Correspondent

Two council members have been investigating the idea of Nephi becoming an inland port and in work session on Tuesday they presented the idea.

As a result of their investigation, Danny Stewart, Utah Inland Port Authority Associate Vice President of Regional Project Areas and Business Development and Brent Boswell, county economic development director, were invited to present the idea to the city council

“Travis (Worwood, council member) and I have researched an inland port,” said JD Parady, council member.

He said that certain areas in the community could be designated as an inland port, it would not even need to be contiguous.

“The inland port idea has been completely revamped,” he said. “We would still have complete control. An inland port would help facilitate things like Jensen’s.”

T. Worwood said that Ash Grove Cement had added the inland port to their facility this year.

“The plan has been revamped,” he said. “Some misconceptions have taken place in the past.”

When a business chooses to locate in a port project area, they’re not just renting space; they’re investing in a 25-year commitment where 75 percent of new tax revenues are used to enhance regional infrastructure, offering attractive incentives, and ensuring the economic vitality and generational growth of the area.

“We will also still get property taxes from new jobs,” said Parady.

T. Worwood said that property that was undeveloped brought in the minimum tax. Zero was still zero.

One other benefit for Nephi, in addition to rail, was that the city had an airport.

The Utah Inland Port Authority is transforming infrastructure development with their ability to deliver Infrastructure Bank loans, incentive processes and public financing tools in just 60 to 90 days, out-pacing the years-long timelines seen elsewhere.

“What is the benefit of an inland port?” asked Skip Worwood, council member.

“It is an economic development tool,” said Stewart. This comprehensive approach, encompassing bank loans, area incentives, and tax differential reinvestment, supports businesses in achieving strategic and sustainable development goals in Utah, said Stewart.

“We emphasize readiness for development, engaging early in infrastructure planning to make sites development-ready, thereby streamlining construction, permitting, and entitlement processes,” said Stewart.

From well-equipped areas like the Northwest Quadrant to the logistically optimized Cedar City poised for building within the year, the port authority caters to diverse project needs.

The port of authority is a quasi-development agency, he said.

Juab County is also investigating the idea although they are already part of the Central Utah Port Authority.

“The land for the Central Utah Port begins by Levan and then comes this way (northward),” said Stewart.

“Beginning in April 2023, the Utah Inland Port Authority expanded from one inland port area in the northwest quadrant of Salt Lake County to include seven additional port project areas throughout the state of Utah,” said Stewart.

The vision has expanded beyond a sprawling sea of warehouses in the capital city’s northwest quadrant and satellite hubs are progressing around rail lines as planners set their sights on developing facilities.

An “inland” port is essentially a location where goods can be exchanged in a transaction zone without actually being by the seaside.

“We’ve developed a plan to align our resources and decisions with our overall strategic direction. From 2023 to 2027, this framework outlines our objective to implement and utilize new infrastructure to support sustainable economic development,” said Stewart.

The High Cost Infrastructure Tax Credit (HCITC), is an incentive that supports Utah-based projects that expand or create new energy, industrial, mining, manufacturing, or agricultural activity, are comprised of at least 10 percent (or $10 million) of infrastructure costs, and generate new state revenues that are directly attributable to new infrastructure investment.

“How does a business qualify?” asked Seth Atkinson, city administrator.

“The city sets the terms of the agreement,” said Stewart.

The Industrial Assistance Account is a post-performance grant for the creation of high-paying jobs in Utah. Companies are required to obtain commitment from the local government to provide local incentives, create new high-paying jobs in the state (at least 50 jobs and at least 110 percent of county average annual wages), demonstrate company stability and profitability, and demonstrate competition with other locations.

“The port authority has a five percent administrative fee,” said Stewart.

Boswell said that the Union Pacific Railway indicated that they were not interested in container shipping. The port authority would like to have the railroad ship containers so that it would reduce truck traffic.

“Is there a timeline we need to follow if we want to have an inland port authority?” asked Justin Seely, mayor. “Are there steps we need to follow?”

They would need to attend Utah Port Authority meeting, said Boswell.

They would also need to determine the areas to include and have a legal description of those parcels. The city, said Stewart, also needs to pass a resolution.

“By August 13, we would need to have all of that done?” asked Seely.

“You would need a shape file and a resolution by September,” said Stewart. “You could always join in a year.”

The September drop dead date would give the council and staff time to pull all the needed information together and to make a unified decision, said Seely.

Stewart served as director of economic development for Cedar City and Iron County for the past nine years. He was key in recruiting a number of companies to Cedar City.