Moab Happenings Archive
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Southeast Utah
Real Estate Happenings

December 2018 - January 2019

Economic Development News
by J.D. McClanahan

Now that both the city and the county councils have adopted the Project Area Plan for the South Moab Community Reinvestment Project Area, this economic development tool is one step closer funding development that will be beneficial to the residents of Grand County.

A Community Reinvestment Area (CRA) is an independent government agency, which collects tax revenue and directs its funds toward targeted development of the type articulated in the CRA’s rules. The goal of the South Moab CRA is to help fund the infrastructure necessary to build a new USU campus, workforce or affordable housing, and economic development and diversification. To gather its funds, the CRA enters into agreements with the property tax-gathering entities within its boundaries. These agreements state that the entity will direct a portion of its property tax growth to the CRA for a set amount of time. In this case, the taxing entities include Grand County, the Grand County School District, the Moab Mosquito Abatement District, the Grand County Cemetery Maintenance District, and the Moab Valley Fire Protection District. The fundamental idea of a CRA is that, in addition to achieving community goals, the funds that the CRA uses will stimulate development within the project area, increasing the property value more than it would increase otherwise, and resulting in more property tax money for the taxing entities than would otherwise be available.

The CRA does not increase taxes for property owners within its boundaries, and does not redirect money from the existing

 

 

funds of the taxing entities, rather, it derives its funds from the revenue growth that the entities see within the project area. Each taxing entity is able to agree to its own financing schedule and formula, so that entities whose operating costs would not significantly increase from growth in the CRA can contribute a higher portion of their increased revenue, while those who will see significant increased demand for their services tied to the growth can set more conservative formulas.

Once all of the agreements with taxing entities have been signed, and the CRA begins gathering revenue, local developers have the opportunity to apply for the available funds if they plan to create the targeted development of the CRA. This means that developers of deed-restricted affordable housing can apply for additional funding to ensure that their development is able to pencil out, or businesses who wish to locate within the CRA boundaries can apply for funds. If, after a rigorous screening, the business is deemed to provide substantial community benefit, it may receive funds to relocate or develop within the CRA boundaries.

As the taxing entities determine their contributions and the CRA gets closer to becoming operational, Grand County Community and Economic Development is happy to answer any questions or concerns that citizens may have. Please reach out at 125 E. Center Street, 435-259-1371, or zlevine@grandcountyutah.net.

 


 
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