RDA working towards tax increment bond for Bingham Junction project

 (Midvale Journal) The Redevelopment Agency of Midvale has initiated the process of obtaining a $25 million tax increment bond to help with construction and future development of the Bingham Junction project, a 351 acre development at the junction of I-15 and I-215 freeways, straddling 7200 south at 700 West.

Already home to Winco, future plans for the project includes a TRAX line, additional housing and more office and retail components.

"When a redevelopment agency creates a project area designated for future development, the taxable value is essentially frozen and called the base year value," RDA Director Danny Walz said. "As the property values increase over time, that increase in value is distributed to the RDA for future development. This increase in property taxes over and above the base value is called 'tax increment.'"

For Bingham Junction, the RDA has the ability to collect tax increment over a 25 year period, Walz added.

"The first tax increment payment was received this year for just more than $1 million," Walz said. "This payment will increase over the life of the project area as development continues to happen."

By obtaining this bond, the RDA will be able to have that money in advance instead of waiting for yearly increments.

As part of the development process, the RDA has set up what are called reimbursement agreements with developers of the project. The purpose of these agreements is to help developers with some of the installation and improvement costs and also the extremely high environmental costs due to past land contamination.

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