About the Proposed GO Bond
The city plans to work closely with a yet-to-be-selected development partner to provide the market-driven, revenue-generating elements of the project (retail businesses, local restaurants, and some housing). To ensure that the community-driven elements of the project are included and that Cottonwood Heights maintains control of the vision for the town center development, the city is looking at providing an upfront investment to help cover the cost of public improvements. This public investment will help fund elements including public open space, pedestrian improvements and infrastructure, and public parking. It would also help the city create identity-building elements like public art and landscaping.
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To fund this upfront investment, the city is proposing a $30 million General Obligation Bond.
How would bond funding be used?
Money from the bond would be used to fund the public elements of the project and pay off the city's existing loan on the property. This has several potential impacts on city finances.
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Paying off the current loan will save about $1.2 million annually in the city's General Fund, freeing it up to be used for other city needs/projects.
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By retaining ownership of the property, the city can generate new revenue from land leases to a development partner - about $2 million per year upon project completion - as well as new sales and property taxes.
The bonds financial impact
The estimated property tax increase is expected to be $11.24 per month for the average primary residence in Cottonwood Heights valued at $770,100 and $20.44 per month for a business or secondary residence of the same value. See the FAQ for more details.
Additional Bond Information
Click to view the City's official statement in favor of the bond as required by Utah State Code.