A town center for our community to gather, celebrate, and connect.
Cottonwood Heights has an opportunity to create a unique town center that serves as a true gathering place for residents: offering local dining and shopping opportunities, and providing open space, mountain views, and amenities that strengthen our community and create a stronger city identity.
The Heights: A town center with community at the core
In 2023, Cottonwood Heights purchased the former Hillside Plaza, a 10-acre parcel of land located at 2300 East and Fort Union Blvd., to serve as the city’s new town center (as envisioned in the City’s 2005 General Plan). With the help of a 12-member Community Advisory Committee, the city conducted surveys, held town meetings, and facilitated discussions to understand what residents valued most.
The result is a town center plan, called 'The Heights,' designed and built around community features and benefits. The restaurants and retail are centered on public spaces that will be used for various events, including holiday celebrations, farmers markets, art fairs, and more. Green spaces and kid-friendly areas encourage residents of all ages to play and connect. Identity-building elements like public art, landscaping, and signage will convey the Cottonwood Heights way of life. Additionally, a well-planned design prioritizes walkability and accessibility for all users, while maximizing mountain, city, and sunset views.
A public-private partnership that provides a balanced approach
To ensure that the town center includes these community-driven elements, the city is interested in providing an upfront investment to help cover the cost of public improvements to the site. This public investment will assist with the costs of public open space, pedestrian improvements and infrastructure, and public parking.
The city is proposing a $30 million General Obligation bond to provide that upfront funding. Residents have the chance to vote on the bond on the 2024 ballot.
The City will work closely with a selected development partner to provide the market-driven elements for the project including a desirable mix of retail businesses, local restaurants, and some housing. These are critical pieces that make the town center vibrant and active and represent more than $100 million of investment in our city.
A public-private partnership has several benefits:
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Puts the city in the driver’s seat in terms of the project vision and design.
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Allows the city to retain ownership of the land and lease it back to developers - creating new long-term revenue sources for the future.
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Helps defer or delay property tax increases likely needed in the future by generating new revenue from land leases, sales tax, and property tax created by the project.
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Gives the city more control over issues like density, aesthetics, and building heights.
An investment in the City's financial future
If voters approve the bond, property taxes for the average homeowner (based on the average home value in Cottonwood Heights of $770,100) will increase by $11-$12 a month. The average term of the bond is 30 years.
Money from the bond will be used exclusively to 1) fund the public elements of the projects; and 2) pay off the existing loan the city has on the property. This has several potential financial implications for the city:
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Paying off the existing loan used to purchase the property, the city will save approximately $1.1 million annually in general fund expenditures.
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By retaining ownership of the property, the city could generate new revenue in the form of land leases with the development partner. Conservative estimates show approximately $2 million a year in lease revenue once the project is completed.
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A new town center will likely generate greater sales tax and property taxes from the site. This new money goes into the general fund and reduces the need for future tax increases.
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These financial benefits help the city defer or delay a property tax increase projected to be needed by 2026 – while also providing a community amenity.
