David Jackson/Park Record
Utah’s Military Installation Development Authority this week approved a much leaner $81 million budget than the current one, but found enough in this year’s spending plan to cover the purchase of housing for local workers at Deer Valley’s East Village.
MIDA will purchase Building D of the Pioche Village development and use those 42 units for workforce housing.
The prospect of purchasing the units first materialized after Extell Development staff decided to change the Pioche Valley from apartments to condominiums late last year, according to Richard Catten, MIDA’s legal counsel.
He said Extell was extremely cooperative and understanding of the housing issues people in the area face, and they agreed to the deal that Catten said worked well for MIDA.
“The cost is $15 million,” he said. “We’re going to put $5 million down.”
Then, for the next 10 years, MIDA can pay $1 million annually at 5% interest.
Per terms of the agreement, a deed restriction on the property prevents MIDA from using the property for nightly rentals or purposes other than moderate-income housing for no at least five years but not more than 10. That restriction would fall once MIDA paid off its remaining debt to Extell after at least five years.
Extell has also worked with Hyatt to take 14 of the units for less than two years under a market-rate lease.
“That helps both parties,” Catten said.
He explained it would be beneficial to Hyatt, as they’ll be able to bring in workers to help their hotel get up and running, and he said the agreement will help MIDA by giving them a base income to help them make their payments to Extell.
As well as helping MIDA secure the Pioche housing units, MIDA Chief Financial Officer Paula Eldredge said the funds will help the authority finish other projects at the Falcon Hill Aerospace Research Park at Hill Air Force Base.
The authority’s board unanimously approved an $80,699,279 general fund budget for the 2024-25 fiscal year, way down from the current budget of over $126 million.
But growth and development in MIDA project areas continue to raise the tax base of other taxing entities with incremental tax financing deals MIDA made to get them built. When the deals expire in a few decades, those entities — including Wasatch County and the Wasatch County School District — will receive a boost in tax funds they likely would not have seen without MIDA’s involvement and development in their jurisdiction, Eldredge said.
Next fiscal year, Eldredge said the authority looks forward to projected funds from the East Village’s Grand Hyatt Deer Valley Hotel, $6 million in federal grants for infrastructure improvements, and higher revenue as more developments continue in the project area.
Looking five years into the future, Eldredge showed the board how municipalities’ tax bases are expected to grow in MIDA’s Wasatch County project area, which will mean the amount of taxes the entities receive will also grow, as the increment financing model allows them to retain a portion of the revenue even as the majority goes to MIDA. In 2029, Wasatch County is expected to receive over $2 million. In comparison, it’s expected to get $309,000 for the 2024 fiscal year. The school district is projected to get over $3 million, whereas its 2024 projection was listed as $292,000.
