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Seventy-five percent (75%) of the workers from Tooele County commute outside the County to work. As
a result, job quality and retail leakage, along with the quality of existing retail and restaurant offerings,
are concerns for County residents and officials alike. Tooele County’s economic development strategy
espouses the benefits of business retention, expansion, and attraction strategy that focuses on
collaboration with local and regional partners focused on the County’s growth potential.
Tooele County recognizes that commercial growth is inevitably going to occur in the incorporated cities.
The Tooele Valley Project Area will accelerate the bringing of jobs and property tax revenue to fund
needed county services.
With the adjacency to the Union Pacific main line and inclusion of the Savage Railways spur, this project
area also has the opportunity to maximize rail usage for future businesses.
Economic Soundness and Feasibility
“It is economically sound and feasible to adopt and carry out the Project Area plan.”
UIPA determines and finds that development of the Tooele County Port Project Area, as contemplated
by UIPA, property owners, and the local governments, will be economically sound and feasible. A Project
Area budget summary based on current estimates is included as Appendix D
. Through the investment of
Property Tax Differential, the Project Area will grow faster and in a more coordinated manner than
would be possible otherwise. This will result in long-term financial returns for the Taxing Entities that are
greater than would be achieved if the Project Area is not undertaken. The Project Area has
infrastructure needs in order to optimize the project area and fully utilize rail in the area, and the Project
Area will enable the use of property tax incentives to recruit companies that will provide jobs and make
substantial economic investments in the area. The Project Area will allow for the reinvestment of
Differential in the area.
The Property Tax Differential collected from the Tooele County Port Project Area is 75 percent of the
difference between the Property Tax revenues and the Property Tax revenue that would be generated
from the Base Taxable Value, with the remaining 25 percent flowing through to the Taxing Entities.
Differential collected shall begin on the date specified by board resolution and continue for 25 years and
may be extended for an additional 15 years by the board if it is determined that doing so produces a
significant benefit. The expected trigger date for the tax differential is 2025.
In addition to the Differential and with a positive recommendation from Tooele County, UIPA may
sponsor a Public Infrastructure District (PID) in the Project Area. A PID is a separate taxing entity that
may levy taxes and issue bonds. A PID is formed following consent of property owners and is governed
by a separate board. UIPA will not manage or control the PID, and no liability of the PID will constitute a
liability against UIPA; however, the UIPA board must authorize the issuance of bonds from a PID. PIDs
also require the creation of governing documents, which define the membership and tax rate of the PID.
The purpose of PID-assessed taxes and bonds is to pay for public infrastructure needs in the district,
especially those with a large benefit across the project area. Bonds issued by the district may be
guaranteed and paid back by tax differential revenues. An Authority Infrastructure Bank (AIB) loan for
rail infrastructure needs could also be granted via separate approval by the UIPA board, and such loans
would be repayable from tax differential proceeds.
Projected tax differential received by UIPA for the 25-year term of the Project Area are approximately
$54 million. UIPA will prepare and adopt a formal budget prior to expending tax differential funds, and
current projections are preliminary and expected to change. UIPA may apply the funds collected to
encourage the Project Area as deemed appropriate by UIPA and the participating entities as
contemplated in the Project Area Plan, including but not limited to the cost and maintenance of public