Residents Surveyed By Chamber

Cottonwood Mall Redevelopment Survey
Sample Size: 410
Tolerated error: + - .83%
Universe: 3300 South to 1100 East to Mountain
Conducted: January 9-11, 2008 By Dan Jones & Associates.

What do you think the most pressing issue facing the Holladay/Cottonwood area at the present time?

Mentioned Cottonwood Mall (unaided) 54%

Have you seen or read details of the proposed Cottonwood Mall redevelopment project?

Yes 67%

Generally, do you favor or oppose the redevelopment of the Cottonwood Mall?

Favor or Strongly Favor 75%
Oppose or Strongly Oppose 17%

Which of the following would you prefer?
A) Channeling a portion of the future property taxes to help defray the costs required for infrastructure – guaranteeing that the property owner will go ahead and develop the project.
B) Holding out for a greater amount of property tax revenue and risk losing the project altogether and having the Cottonwood Mall continue to lie vacant.

72% Prefer or Strongly prefer a guarantee, while giving up a portion of tax monies.

22 % Prefer or Strongly prefer holding out, taking a risk on the project.

BOARD VOTES YES!

The Granite School District Board, in front of a packed auditorium at the district offices on Tuesday night, January 15, voted YES, on the request from the City of Holladay to support the Cottonwood redevelopment project. Thanks to the board for their vision and efforts and to all who supported the project throughout the district.

Vote Scheduled for January 15

The Granite School District Board of Education has scheduled a vote on the future of the Cottonwood project on Tuesday, January 15 at 7 PM. We encourage concerned citizens who support this project from all areas of the Salt Lake Valley to attend this important meeting. If you can't attend, please call your school board representative and ask them to vote YES.

Visit the district website for more contact information and the names of your elected representatives: http://www.graniteschools.org/.

A YES vote means more dollars for students in the entire Granite School District. Overall, the District will receive over 500 percent increase in revenue above what it is receiving today. If the project does not move forward, the district’s share of the resulting tax revenue will most likely drop. Ask your representative to vote YES.

The FACTS of the Cottonwood RDA and Tax Increment Financing

The Cottonwood project is the redevelopment of the 57.37 acre Cottonwood Mall site, located at Highland Drive and Murray-Holladay Road in Holladay, Utah, as a mixed-use (retail, office and residential) project. The currently proposed Cottonwood redevelopment project consists of a total estimated cost of over $550 million by the developer, with construction occurring over an estimated four year period. The first phase of the project is anticipated to be completed by Fall 2010. Of the 57.37 acres of property, the completed project will include 24 acres of commercial and residential structures, 20 acres of parking and streets and 13 acres of plazas, parks and public green space. A range of 454 to 614 residential housing units (inclusive of town homes, single family lots, cottages, condominiums and apartments) and approximately 579,000 to 772,000 square feet of commercial retail and office will be constructed on the site.

The Cottonwood Mall exists today as one of the oldest malls “West of the Mississippi.” Built in 1962, the mall site did not have the building and land code requirements that are enforced by today’s building code specifications. As a result, the entire mall today lies in the flood plain and sits on top of a high water table. In order to meet required codes, new bridges, site elevations, and building foundations will be required in order to build any type of project on the existing site. In addition to the federal and state requirements for the land improvements at the site, underground utilities, replacement of antiquated utilities, and overall infrastructure enhancements will be required, totaling over $100 Million in infrastructure costs alone.

Speculation that this project will proceed regardless of whether the TIF money is approved is false. Without infrastructure funding, General Growth Properties cannot feasibly or reasonably build the proposed project. Without funding, General Growth Properties’ $550 million will be invested in another community where a more acceptable return can be generated for General Growth Properties. Any project constructed on this site (whether Big Box, Mall, Residential) will have the same associated infrastructure costs regardless of the developer or project scope.

Who is Supporting This Project?
Economic growth is important to the community, the city, state and county. A vibrant Cottonwood project will be a key driver of that economic growth. Mayor Webb and the Holladay City Council, Holladay City Planners, state and local elected officials, including Senate and Representative Officials as well as the Holladay Chamber of Commerce and an overwhelming support from the Holladay Community.

How is Funding being Proposed?
Funding for the project will come from General Growth Properties’ investment. The Budget results are as follows:

• Value of Cottonwood Mall Property Today: $30 Million
• Value of FUTURE Cottonwood Property (if GGP invests $550 Million): $550 Million
• Property Tax Contribution of Cottonwood Today (All Taxing Entities): $330,921
• Property Tax Contribution of Cottonwood FUTURE (All Taxing Entities): $6,045,010
• Taxing Entities Receive 22% of Total Increment Per Year ($1.3 Million).
• Infrastructure Receives 78% of Costs per Year ($4.4 Million After 20 years).
• Taxing Entities Receive Full Increment per Year ($5.7 Million).
• All Taxing Entities receive a 500% increase in Property taxes during 20 year period, and receive a 2500% increase after the 20 year period, thus resulting in an economic benefit for all taxing entities and the development. This represents NO risk to any of the taxing entities and secures the redevelopment of the Cottonwood Mall by one of the world’s most financially stable developers.

Who Uses TIF?
California has used the TIF tool since 1952 and today, 49 states and the District of Columbia have TIF enabling legislation. While TIF is used as an economic staple in cities like Chicago and San Diego, smaller and mid-sized communities such as Salt Lake City are also using TIF as a financing tool to advance economic development priorities. TIF is attractive to governments and residents because TIF-generated funds can only be used to improve elements within the TIF district.

Tax Increment Financing and the Cottonwood Mall

The Granite School District has an obligation to the citizens, parents, and school children it represents. Holladay City as a major contributor to the Granite School District has a responsibility to the future of not just the citizens of Holladay and the school children, but also to the city of Holladay in general. As such, Granite School District has been presented with a plan for the Cottonwood Mall which would revitalize the community of Holladay, significantly increase tax revenue to the state, county, and local governments, and secure long term economic growth for decades to come. RDAs were developed by governments as a tool to secure long term development growth, ultimately sustaining the community, its members, and the school children who reside within it. Granite School District is faced with a very important decision dealing with the Long Term future of not just Holladay, but all the communities and children served by the Granite School District. The Granite School District Board has the charged responsibility of making decisions which will have LONG term benefits to the community as well as the school children. As such, the facts of the Cottonwood Redevelopment as they relate to Tax Increment Financing are simple to understand:


If Cottonwood Development is Approved by Granite School District

• Granite School District Receives $171,000 today. Project approval increases that to $900,000 per year for 20 years, a 500% increase.



• Beginning in 2031, Granite School District will receive an estimated $4+ million per year.



• Students district-wide will benefit from this tax revenue, not just those on the east side.



• Development of the property will increase the value of the land and existing mall from $30 million to over $550 million by 2014.



• Improving the property will result in an increase in property values in surrounding neighborhoods while sustaining the historic image of the community.



• The project will represent an economic boom to the economy keeping local spending local, expanding the tax base, increasing tax revenue streams, creating new jobs and strengthening the economy.



• The dollars from a TIF district are created without raising taxes and without dipping into the present tax value.

If Cottonwood Development is NOT Approved by Granite District

• Tax revenues from the Cottonwood Mall that go directly to education will be reduced significantly from the current $171,000 figure.



• In a best case, the Cottonwood Mall will remain vacant for at least several more years as General Growth Properties designs a new project type.



• Income tax, property tax and sales tax revenues would also be significantly impacted, resulting in fewer dollars for education, transportation and commercial services.



• Property taxes for all Holladay Residences would naturally increase to make up the difference in lost tax revenues from the now vacant mall property.



• Without infrastructure funding, any project constructed on this site will have the same associated infrastructure costs (flood plain, high water table, bridges, underground utilities, replacement of antiquated utilities and updated building and Seismic codes).



• General Growth Properties’ $500 million will be invested in another community where a more acceptable return can be generated.

Recent News

11/02- The Salt Lake Tribune: Dramatic Transformation is in the cards for Cottonwood Mall
11/07- Valley Journal: Cottonwood Development to be a great benefit for Holladay
11/28- The Salt Lake Tribune: Cottonwood Mall's future hangs on vote
12/05- The Salt Lake Tribine: Cottonwood Mall to go green
12/06- The Salt Lake Tribune: Residents throw in ideas for Cottonwood Mall redevelopment