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Show Bill Could Spell Doom for RDA sooner and governmental agencies are impacted by the tax increment for a shorter period of time," she said. The city is anxious to complete its RDA plans as quickly as possible and would like to issue bonds to enable the work to be completed all at once. RDA's tax increment is capable of generating almost $1.3 million mill-ion a year which could pay off the proposed bond issue in about five years. If the bill cuts RDA's budget by one third it would take that much longer to retire the bonds, meaning local taxing entities would be impacted by RDA for a longer period of timer" What is most worrisome to city leaders is the clause calling for voter approval of new RDA plans and subsequent subse-quent funding. Currently Park City's RDA has incurred incur-red debt of around $3 million for property acquisition largely lar-gely in the Swede Alley area. To improve the property and complete RDA's plans around $3 million more is needed. Should the bill pass as proposed, a city wide election would be required to consolidate existing and future fu-ture debt with a bond issue. 1 Loble fears the RDA concept is ; so complicated that Jt would be difficult job educating educat-ing the voters about the project. "I'm not saying the voters are incapable of understanding understand-ing RDAs" Loble said, "It's just so complicated and to a large extent intangible. It's not like the library bond where voters approved a specific project. The RDA is more of a concept; that of expanding the tax base of an area by improving property for eventual resale to the , private sector. If Park City were required to hold an election to continue RDAs plans and the proposition fails, it would leave RDA stuck in the middle of the project without funds to complete the work. Loble adds it's also complicated com-plicated to hold an election every time an RDA changes its plans. "There are so many factors that could case an RDA to change its specific plans it would be impracticable impractic-able to hole an election for every alteration cause by changes in the economy or whatever," she said. There is currently another RDA related bill before the Senate which Park City views more favorably. However, Mayor Green feels there will be a compromise between the two bills which could still produce a bitter pill for Park City's RDA to swallow. A bill currently before the Utah House Revenue and Taxation Committee could spell doom for Park City's future redevelopment plans if it passes both House and Senate as proposed. House Bill (HB) 253, proposed by Rep. Ute Knowlton, R-Kaysville, suggests sug-gests changes to the Neighborhood Neigh-borhood Development Act, the enabling legislation under which Utah's some 24 redevelopment agencies operate. Among other things, the bill, if adopted, would require voter approval for each new project proposed" by redevelopment agencies (RDAs) as well as for the incurrance of any debt needed to complete the work. Also, the bill would restrict RDAs from collecting increment financing from a school district's operating mill levy. Park City leaders have launched an aggressive lobbying lob-bying effort against passage of the bill, but Mayor Jack Green says he fears the measure will be adopted in some form. "The education lobby is the most powerful special interest group, at the capital and they are heavily supporting support-ing the bill," Green said. School districts support the bill because they contend RDAs erode their tax base ,l- and withhold needed revenues. reve-nues. Should the bill pass, it would cut Park City's RDA tax increment by about one third, or around $400,000 next year, according to City Manager Arlene Loble. She said the revenue cut would financially criple RDA and prolong its lifetime. Loble says it is in the best interest of everyone to complete RDA projects as quickly as possible. possi-ble. "It means property is , .put back; on the 4 tax .roljs, j |
