Sandy courts national sports retailer; county commits up to $3.8M

December 28th, 2010 @ 8:59pm

By Marjorie Cortez

SALT LAKE CITY -- Sandy is courting a major sports "destination retailer" to locate on an 18-acre parcel at 11400 S. State.

On Tuesday, the Salt Lake County Council pledged a property tax increment up to $3.8 million as part of an incentive package to land the 102-year-old retailer. Neither county nor Sandy officials would name the company.

The council approved an interlocal agreement with Sandy that caps the county's contribution to the project at $3.8 million or 25 years, whichever occurs first. Sandy officials had asked the county for its full tax increment over the period of the project. The county agreed to 75 percent.

Nick Duerksen, Sandy's economic development director, said the city is competing with Boise for the company. Negotiations are nearing an end, he said.

"Once it's in place, we'll release the name," Duerksen said.

The company, according to documents, has no presence in the Intermountain West at this time.

A technical analysis says the retailer would employ an estimated 185 full-time workers and 245 part-time employees at "above-average wages, plus benefits."

Sandy officials say increased sales tax collections plus the added value of the now-vacant land should make the county whole on its contributions over time.

Duerksen said the opportunity to land such a retailer comes around only every 20 years.

Sandy has agreed to contribute 100 percent of its property taxes and fund any project revenue shortfalls through other revenue sources, according to documents.

Meanwhile, the Utah Department of Transportation opened a new freeway exit at 11400 South in September.

Although the interlocal agreement with Sandy was approved by the County Council, it will require some refinements.

Some on the council questioned the wisdom of using tax increment funds for retail development. Salt Lake County Mayor Peter Corroon said the issue "is a legitimate question."

"Are taxpayers getting their return on investment? Would this company come here but for these incentives?" Corroon told the Deseret News.

The county's Technical Review Committee said in a report that it was "comfortable with the consensus approach for the 11400 S. State project, although it does have concerns about the 25-year length of the project and the precedent it creates."

However, some of the concerns are mitigated by the "pass through" of tax revenues of nearly $13 million that would benefit the Utah Transit Authority and Zoo, Arts and Parks (ZAP) program.