Created by Way Development Ventures as a public service The following presentation provides background information to assist voters in gaining an understanding.

Created by Way Development Ventures as a public service

The following presentation provides background information to assist voters in gaining an understanding of the Carousel

issue in St. George, Utah


In order to understand the issue of the carousel, it is necessary to

first understand redevelopment in a city.


Redevelop, in a word, is quite simple to explain.

Older or transitioning developed areas of a community may

experience Blight. Redevelopment applies specially designated funds to eliminate the

blight and revitalize the area.


Blight may be broadly defined as an area that(a)(i) contains buildings or improvements used or intended to be used for residential, commercial, industrial, or other urban purposes, or any combination of those uses;


Blight may be broadly defined as an area that(a)(ii) contains buildings or improvements on at least 50% of the number of parcels of private real property whose acreage is at least 50% of the acreage of the private real property within the proposed redevelopment project area


Under Utah Code 17B-4 communities are allowed to establish Redevelopment

Agencies (RDAs).RDAs are given certain authorities to designate “project areas” and generate revenue to eliminate

blight within that area. (please note that there are detailed aspects which are not

addressed in this presentation. These are general explanations.)


Through special agreement among taxing entities (City, School district, County, and

special districts) a Tax Increment Financing, TIF, agreement is

established.

(please note that there are detailed aspects which are not addressed in this presentation. These are general explanations.)


Tax Increment Financing pretty straight forward.

When an improvement is made to property, in a designated

development area, the property value increases.


When an improvement to property increases its value, the

difference between the last value and the new value is an incremental improvement in

value.


Once the terms of the TIF agreement have been met the remaining tax increment (real money) goes into a separate

special fund for the RDA.


The special fund for the RDA may only be used for

eliminating blight, in the project area (remember this is a

designated area, not the entire city).


On June 16, 2011, the City Council approved all of the Budget Openings for the City’s

total budget, one of which was an amendment to the 2011 fiscal year

Redevelopment Agency budget in the amount of $310,000 for the carousel.


Of the $310,000 approximately $275,000 was for the purchase

of the Actual Carousel. The balance was to be used for amenities associated with

installation of the Carousel, including the fence.


Due to the proximity to the end of the City’s fiscal year, June

30th, some expenditures associated with Carousel will be

accounted for in each budget year Fiscal Year-2011 and Fiscal

Year-2012.


Payment on the Carousel occurred in two payments:

June 23--$100,000June 28--$170,000The Council approval was enacted within the RDA Budget amendment of June 16th.


The money used to purchase the Carousel came from the TIF (Tax increment) generated in

the Downtown Redevelopment funds.

The Downtown Redevelopment Fund contains monies from the

tax increment from an approximate 14 block area of

downtown St. George.


It should be noted that those funds could only be used for redevelopment efforts within

the 14 block area.


The funds came from account number

42. 4200.730.42 = Redevelopment Agency Budget. Not the General Fund.4200 = and expense account for Capital Expenditures730 = the object of the expenditure, which is named “Improvements”


The money used to purchase the Carousel could not be

legally used anywhere else in the city, for any purpose.


With the use of the money confined to those 14 blocks the question arises, “could those

funds have been used for other projects?”


The answer to that question is “certainly”. There is a wide array of opportunities to use

those funds for other purposes.However, that is with limitations


The downtown redevelopment area was established in in 1974,

as a three block area.


In 1978 an Interlocal Agreement among the effected agencies (city county, school, et al) was reached

that among other things:1.Expanded the redevelopment are for 3 to approximately 14 blocks.2.It added eight years to the original redevelopment area (ending in 2015).


Of significance is that the 1978 revision also constrained the use

of the funding to:•Town Square, •Waterwalk, and •Parking lot construction, improvements, and maintenance


In 2004 the City conducted, though a consultant a

community input session, known as a charrette, where citizens from all areas of the

city could provide input about the future of the downtown

area.


Among the various desires of the community (including more retail, restaurants, and outdoor dining) the residents indicated a desire for an interactive water

feature and additional gathering places with attractions.


At a master plan update session, (minor similarities to a charrette) , concern was raised that the downtown remained non-competitive with other

commercial areas of the city.


At a master plan update session, (minor similarities to a charrette) , concern was raise that the downtown remained non-competitive with other

commercial areas of the city.


Since 2004 much has been done to improve downtown St. George. Until moving here a year ago I have visited family and friends regularly and have

witnessed the steady improvements.


With a few exception it appears (no scientific survey here) that most residents don’t object to a Carousel as a gathering place in the downtown. The questions arise as to whether the City

Council acted too hastily in the purchase or was the purchase unwise due to the economy.


Both of those concerns are personal perspectives of interested individuals.

What we can ascertain is that based on state law and the

existence of the RDA Downtown Project Area, the Carousel was a

legitimate purchase made consistent with the long-term

desires of the residents expressing their opinions in 2004.


This short presentation is designed to demonstrate the

unique aspects of the transactions of using RDA Funds for purchase which are not readily available to

general public.

This presentation is not intended to imply endorsement of any candidate for public office, rather it only for the purpose of general information about the purchase of the Carousel.

Created by Way Development Ventures as a public service The following presentation provides background information to assist voters in gaining an understanding.

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