Logan City Council members unanimously voted to approve the interlocal agreement for the South Main River Community Reinvestment Project at their December 18th meeting.
The City of Logan is one of three taxing entities to enter into the agreement. The other two entities – Cache County and the Logan School District – also voted in favor of the proposal.
The project area is located on Main Street on the south end of Logan and consists of 34 acres of redevelopment land.
The approved agreement commits 70 percent of new tax revenue the property generates to the Logan Redevelopment Agency for 15 years. That new tax money will go back into the agency in an effort to facilitate economic growth and redevelopment.
Wasatch Development Group is the first developer to come forward with plans to build on the land. The group is proposing to construct a new hotel and retail shops on approximately 6.8 acres. However, they first have to clear the land.
During its meeting Tuesday night, The Logan Redevelopment Agency proposed a resolution to use some of the projected tax revenue to assist Wasatch in their new endeavor.
Economic Development Director Kirk Jensen said “the costs of redevelopment are different than taking a raw piece of ground and developing on it.”
Wasatch purchased old homes and buildings on the property and those structures need to be demolished. There is asbestos remediation and blight removal that also must occur before any construction can begin. Jensen said the tax revenue would be used to help mitigate those types of costs.
“One of the conditions of this incentive is that a public trail would be constructed by Wasatch that borders Logan River,” according to Jensen.
Jensen said there are obvious benefits to the community. “As you see more growth it tends to attract more interest and that is certainly a good thing.”
A public hearing on the resolution is scheduled January 15th.