- City established Redevelopment Agency on February 20, 1979
- Regulated by Utah Code Title 17 C, the Community Reinvestment Agency Act
- Governing Board: City Council members
- Chief Administrative Officer: Mayor
- Executive Director: Economic Development Director
Through its RDA, the City has established various “project areas,” or specific geographies, where it would like to realize various economic, redevelopment, and/or community development objectives. Each of these project areas has a predetermined time horizon during which the RDA receives revenue, or tax increment. Some of these areas are “inactive,” meaning that the RDA has collected tax increment revenue from the project area for the approved time period and is no longer receiving revenue, though, in some cases, there is a residual fund balance. The North Main RDA was merged into the Auto Mall CDA when it was created.
ACTIVE (see map)
- Auto Mall CDA
- 1400 North Main CRPA
- South Main River CRPA
INACTIVE (see map)
- 600 West EDA
- Logan North Retail RDA
- Logan River RDA
- North Main RDA
- Quayle Meadows CRPA
- Downtown RDA
- Northwest RDA
- South Main RDA
Tax increment is the RDA’s revenue source, and ultimately a new revenue source for the taxing entities that includes, aside from Logan City, the Logan City and Cache County School Districts, as well as Cache County. To understand what tax increment is, look at this graph that depicts historical tax increment of the 600 West Economic Development Project Area. When this project area was created in 2003, the collective value of this 93-acre project area, which is called the Base Value (and shown by the blue line), was about $20 million. At the outset, and during the entire 12-year life cycle of this project area, the property tax on that $20 million value was distributed annually to the taxing entities, or in this case, Logan City, Cache County, and the Logan City School District. The creation of an economic development project area resulted in NO reduction to their respective tax revenues. By agreement, during the 12-year life of the project area, the new property tax created on the difference between the Total Taxable Value (shown by the orange line) and the Base Value is called TAX INCREMENT. For the 12-year duration of the 600 West EDA, that’s what constituted the RDA’s revenues for this particular project area. As you can see in 2017, the lines effectively merged indicating that the property tax revenue for the entire project area no longer flows to the Redevelopment Agency, but instead, the entirety now flows to the taxing entities.
Notice the spike in 2005. This was driven by a significant expansion of Schreiber Foods (cream cheese production). Later, in 2007-2008 , you can see where the company invested another $28 million, this time for yogurt production. Both of these job-creating expansions were assisted by the RDA.
How Does the RDA Utilize Tax Increment?
- Ensuring the certainty of an expansion or development, or “incentivizing” it to happen
- Bridging an economic feasibility gap due to extraordinary development/redevelopment challenges
- Assisting with necessary public infrastructure
- Providing for project enhancement or public amenities associated with the project
- Land assembly
- Blight elimination
- Strengthening housing, both affordable and market-rate
RDA project areas can be very instrumental in helping to leverage significant economic growth.
Here you can see the revenue-generating impact to the taxing entities by project area. In some project areas, a portion of the new tax increment revenue is passed on to the taxing entities during the life cycle of the project area. That is represented here in blue, or “Interim Revenue.” At the end of the life cycle of all of the project areas, the entire amount of new tax increment revenue is passed on to the taxing entities. Here you can see the real impact of RDAs to the taxing entities.
You can see that the 600 West EDA combined revenue increased by nearly $800,000/year; the Auto Mall by $65,000; the Downtown RDA by $400,000; the Logan North Retail RDA by $473,000; the Logan River RDA by $869,000; the North Main RDA by $94,000; the Northwest RDA by $611,000; and the South Main RDA by over $1.6 million per year.
Advantages of RDA Project Areas
- Acceleration of development and resulting effect on tax base
- Bridge to more efficient land assembly
- Development catalyzes other growth and development
- Directs development interest to areas in greatest need
- Ensures project certainty
- Greater likelihood of master-planned developments
- Infrastructure enhancements
- Public amenity opportunities