Executive Summary
In North Logan City there are one of each of the four types of re-development projects available to be used in the State of Utah. The Agency's Urban Renewal Area (URA) is the North Gateway Area Project mostly located along 2500 North; the Economic Development Area (EDA) is the Innovation Campus Area Project and is intended to be able to support the development of private, non-USU owned parts of the USU Innovation Campus; the Community Development Area (CDA) is the City Center Area Project mostly located along the new and proposed 200 East Corridor; and the Cache Innovation Community Reinvestment Project Area (CI-CRA) is comprised of selected parcels located within four economic zones on the western boundary of the Agency (see Appendix A - CI-CRA Property Description).
The North Gateway Project URA is being done in response to fixing a 'blighted' area. The tax increment in this area is to be used to mitigate the blight, including tearing down old structures, and to assist in the development of better facilities. For the Innovation Campus Project to be set up the Agency had to show potential economic growth, specifically meaning new jobs. A Community Development Area, like the City Center Project, requires neither job development nor blight mitigation. Instead, the Agency had to convince the taxing entities, in this case Cache County, the Cache County School District, and North Logan City that it is in the entity's best interest to postpone the anticipated and hoped-for property tax increases to financially encourage and support new development. The taxing entities must adopt an agreement with the municipality in order to divert their funds to a CDA. For the Cache Innovation CRA to be set up the Agency showed a focus on economic development efforts and that tax increments will be used to rehabilitate old buildings, add infrastructure to the under-utilized properties, and provide incentives for job-creation.
Money is generated in a re-development fund by recognizing a base value of property, having the area developed or re-developed and seeing the increase in value and hence the difference, or increment, in property taxes. There may be some changes in property value without development, as would be the case if land values go up, but the real change in value comes as property is developed. Property values can also drop below the baseline established for the area as was the case in the City Center Area for a while. When that happened no tax increment funds were generated until the property value came back to the level set as the baseline. All, or some of the tax increment can be diverted to the agency and that decision is made when the project is first set up. Additionally, the property taxes are only diverted for a set number of years. All or some of the property taxing entities may be affected. Following is a table that lists the RDA's four project areas, the entities and percentages of tax increment diverted to the RDA, and the number of years the project runs once it is started:
see attached PDF
NORTH LOGAN CITY REDEVELOPMENT AGENCY
ANNUAL REPORT
November, 2023
Notice of Special Accommodations (ADA)
In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify Scott Bennett, City Recorder, at (435) 752-1310 at least three working days prior to the meeting.
Notice of Electronic or Telephone Participation
NOTICE OF POSSIBLE ELECTRONIC OR TELEPHONIC PARTICIPATION One or more members of the meeting may participate electronically or telephonically pursuant to North Logan Resolution 20-05, UCA 52-4-202, and UCA 52-4-207.