Spanish Fork seeks county support for large industrial community reinvestment area

Spanish Fork Mayor Mike Mendenhall and city staff asked the Utah County Commission to explore an interlocal agreement and creation of a community reinvestment area (CRA) that would let the city and other taxing entities use tax-increment financing to reimburse developers for upfront infrastructure costs. "Plan regionally and still act locally," Mendenhall said as he introduced city staff and framed the proposal as a long-term, regional planning opportunity.

The request centers on a large industrial site in Spanish Fork where developers have expressed interest in building manufacturing, warehouse and professional office space but where essential utilities and roads do not yet exist. City presenters said developers are prepared to begin construction on large projects if infrastructure can be readied, noting that items such as large transformers should be ordered now to be operational by 2025.

Commissioners asked for specific protections in any agreement. One commissioner urged that contract language explicitly prevent tax-increment proceeds from subsidizing residential or retail development so the CRA’s benefits remain focused on industrial uses. Seth Perrens, Spanish Fork city manager, said the city's industrial zoning could allow ancillary retail in places, but the city does not intend to actively incentivize retail or residential uses within the proposed CRA.

Rob Moore, representing the county attorney's office, outlined customary county contract terms and constraints, including typical contribution caps and administrative fees and a practice of signing interlocal agreements after other taxing entities have approved participation. Commissioners and city staff discussed term length and capture percentages; a 20-year term and percentages in the 70% range were mentioned as working parameters to test in draft language. City staff proposed using 2022 as a base year for any tax increment calculation.

Next steps: Spanish Fork will work with county legal staff (Rob Moore) and the city’s RDA attorney to draft proposed contract language and financial terms, and county staff said they would circulate a draft for commissioner review and follow up at a future meeting. Commissioners requested explicit contract language carving out residential/retail from participation and confirmation of any administrative fees and contribution caps before formal approval of participation.

Provenance: Topic introduced by Mayor Mike Mendenhall and Spanish Fork staff (presentation), discussion with Commissioners and county attorney (consensus to draft interlocal agreement). Ending action: staff to draft contract language and return for further direction.

Speakers quoted (first reference and role): Mike Mendenhall, Mayor of Spanish Fork (S8); Seth Perrens, Spanish Fork city manager (S11); Rob Moore, Utah County Attorney's Office (S4).