CRA approves $3.3 million participation agreement with Nexcor for medical office near Lone Peak Hospital

Draper’s Community Reinvestment Agency voted unanimously to approve a $3,300,000 participation agreement with Nexcor Health Development, LLC to support construction of a three-story, roughly 80,000-square-foot medical office building adjacent to Lone Peak Hospital.

City staff told the CRA the project is projected to employ about 150 medical professionals and bring specialty services such as cancer treatment and orthopedics closer to Draper residents. The CRA’s contribution is structured in three payments tied to benchmarks: $1,300,000 on closing of the construction loan; a second payment upon issuance of a building permit and proof of at least $3,000,000 in development expenditures; and a final $700,000 payment linked to certificates of occupancy and proof of creation of 30 full-time-equivalent medical positions at a minimum salary threshold. "There will be no improvements for off-site," said Randy Geer, assistant vice president of real estate development for Nexcor, describing on-site landscaping and drive connections.

CRA staff said the Crescent Redevelopment District has approximately $7.3 million available for qualifying projects and that LRB (the district's financial consultant) analyzed the likely return on the district’s investment. Council members asked whether CRA funds would pay for off-site road work; staff and Nexcor representatives said off-site improvements were not anticipated, and any eligible off-site participation would require additional analysis and coordination with UTA/UDOT. The CRA approved Resolution CRA-2605, authorizing the participation agreement, by a 4–0 vote.