KAYSVILLE - Progress was made Tuesday toward a planned development on Flint Street and 200 North that would include a Smith’s Marketplace.
City leaders won approval Tuesday from Davis County Commissioners and from the Davis School Board to use tax increment financing to help with infrastructure improvements.
Without that support, Mayor Steve Hiatt told the school board on Tuesday, the project is not likely to happen.
Without a Community Development Project, he said in answer to a question from board member David Lovato, “we don’t believe the project is feasible.”
“We’ve negotiated with Kroger and if we aren’t able to provide that,” said Hiatt, “I can’t speak for them, but we don’t think it will happen.”
The city is asking taxing entities to forfeit 50 percent of the new taxes generated on the site for 15 years. For the school district, the amount contributed would have a cap of $1.8 million.
The land is now agricultural and brings approximately $2,800 in property taxes, of which $2,000 goes to the school district, according to Randy Sant, who is assisting Kaysville city in setting up the project area.
Once development occurs, that revenue will increase and could eventually reach $144,000 a year for the district, according to city planners.
“Financially, this is more money for the students of Davis School District,” said board president Tamara Lowe after casting a vote in favor of the development area. “It’s more money even if we get only 50 percent for a time period.”
The board voted 4-3 in favor of supporting the CDA. Larry Smith, David Lovato and Peter Cannon cast the opposing votes.
Cannon had initially spoken in favor of the development, but changed his vote.
“It’s economically smart,” he said when first voting. “It’s a reasonable location in an area that has a need. It’s economically beneficial and it’s environmentally beneficial.”
Board members had received emails from opponents of the project, but Cannon said the impact of the development on eight homeowners nearby should not stop a project that “will benefit half of the city.”
Smith was uncomfortable that incomplete information was included in the packet board members were voting on, though he was assured nothing had changed in the two weeks since the detailed information was first presented.
At a workshop held in February, school board members were informed by Hiatt and Sant that a retail leakage study done in 2011 showed Kaysville loses significant sales tax revenue to neighboring cities.
Hiatt said city residents spend $14 million for groceries they purchase outside the city, and almost all general merchandise purchases are made in other cities.
It is also a city priority, said Hiatt, to provide services to residents who live on the west side.
With the establishment of a CDA, new property taxes generated on the 16.57 acres will go to pay for infrastructure improvements such as a traffic light on Flint and 200 North and water and sewer lines and extensions.
Several more taxing entities such as the mosquito abatement and sewer districts will also be asked to support the CDA.
The sale of the city-owned land to developer Terra Basin, LLC, is expected to be finalized in the next few weeks.