The Lindon City Council held a special meeting beginning at 6:00 p.m. on Wednesday, June 30, 2004 in the Lindon City Center, City Council Chambers, at 100 North State Street, Lindon, Utah.

Conducting: Larry A. Ellertson, Mayor
Invocation: Toby Bath

Larry A. Ellertson, Mayor
Jeff Acerson, Councilmember
Toby Bath, Councilmember
Lindsey Bayless, Councilmember
Jerald Hatch, Councilmember
Gordon Duval, City Attorney
Kevin Smith, Planning Director
Venla Gubler, Administrative Clerk

Bruce Carpenter, Councilmember
Ott Dameron, City Administrator

The Meeting began at 6:15 p.m.

MINUTES - The minutes of the regular meeting of June 15, 2004 and others will be reviewed during the regular meeting of July 6, 2004.

OPEN SESSION - Citizens comments

There was no public comment.

Mayor Ellertson commented that he would defer the report to the regular meeting.

CONSENT AGENDA - No Items

1. Review and Action - Participation Agreement for Remittance of Incremental Sales Tax Revenues (Resolution #2004-10). This is a proposed agreement to participate with Pleasant Grove City in providing development incentives in the area surrounding the new I-15 freeway interchange.

Mayor Ellertson reported that Mayor Jim Danklef of Pleasant Grove City had called him and asked if Lindon would be interested in joining with Pleasant Grove in providing tax incentives for development in the area near the new interchange. He observed that Pleasant Grove has negotiated an agreement with the property owners which provides for up to 50% in sales tax back to them for a period of ten years. Mayor Ellertson reported that Mayor Danklef feels that this action "would be good" for Lindon to help push the development in this area. He noted that the agreement with the developers is limited to "big box retail" that is under contract before December 31, 2004 with one six month extension that may be granted by the City Council. He noted that the agreement has the same definition of "retail center" as Senate Bill 124, and is intended to attract the larger sales tax generating retail businesses. He also observed that the agreement is only with Dennis Baker, et al., who owns a major portion of the property in this area. Councilmember Bayless asked if there were any parcels which this development company does not control. Mayor Ellertson replied that the parcel currently occupied by Barnes Bullets and one other five acre parcel are the only exceptions. He informed the Council that Mr. Baker has an offer pending on Barnes Bullets as well. Mayor Ellertson commented that the issue before the Council is if they want to pursue this agreement, the right to do so needs to be preserved today.

Councilmember Bath asked what the benefits for Lindon would be. Mayor Ellertson replied that the developers expect to use the agreement to attract a large retail tenant (anchor) for this area. Councilmember Bayless asked about the built-in deadline. Mayor Ellertson explained that if the anchor does not materialize before midnight on December 31, 2004, the agreement is terminated. He commented that the only potential justification for considering this agreement is that an anchor has already indicated an interest and this will keep the option open.

Mr. Duval suggested that language to "opt out" of the agreement can be added concerning a public hearing and notice. He explained how this would work to the Council’s benefit. He noted the clause addition at paragraph twelve and the sixth "whereas." Councilmember Hatch asked if property taxes were involved as well as sales taxes. Mayor Ellertson replied that this agreement only covers the sales tax and an RDA or EDA may be considered for a property tax distribution. Mr. Duval asked if Lindon will commission their own financial study as required by law or if Pleasant Grove will commission the study to include the Lindon portion of the interchange. Mayor Ellertson replied that this can be determined. He noted that the changes can be made to the agreement tonight and the developer is standing by to review them. Councilmember Acerson confirmed that the reason Lindon and Pleasant Grove are moving to quickly on this is because of Senate Bill 124. Mayor Ellertson agreed and added that the agreement sets up a vehicle for negotiation with the interested retail center. He observed that the purpose is to finalize and get a retail center there within six months. It is purely an incentive to close the deal soon. Councilmember Bayless asked if there was any more details on the interested business. Mayor Ellertson replied no.

Mayor Ellertson explained that although the specifics will be dealt with later, the agreement allows up to 50% of the sales tax received to be remitted, at the Council’s discretion. Councilmember Acerson commented that a true partnership with the developer would entail a matching commitment. Mayor Ellertson replied that this agreement leaves the options open for the developer to make that commitment. He also noted that the agreement can only be assigned by prior written consent of the City. Councilmember Bath commented that this may be good catalyst for the area, if the City knew what the project would be in advance. He noted that he was nervous that a big box would be built that may not be stable. Mayor Ellertson replied that the approval of the business is still up to the Council. Councilmember Bath verified that this agreement only opens the options, but does not commit the City. Mayor Ellertson pointed out the "escape clause." He observed that this agreement has some limits and a chance to "opt out" if the Council does not feel comfortable. He added that this agreement "keeps the door open" and yet has "safeguards" that protect Lindon. The Council discussed the proposal.

COUNCILMEMBER BAYLESS MOVED TO APPROVE RESOLUTION #2004-10 DECLARING THE INTENT TO REMIT CERTAIN INCREMENTAL SALES TAX REVENUES TO DENNIS BAKER, DON BRANDT, AND B.W. INC., FOR THE PURPOSE OF GENERATING ECONOMIC BENEFIT TO THE CITIZENS OF THE CITY, DECLARING THE CITY’S INTENT THAT BY EXECUTING THE PARTICIPATION AGREEMENT, IT SHALL BECOME THE AGREEMENT FOR THE REMITTANCE OF INCREMENTAL SALES TAX; AND AUTHORIZING THE MAYOR TO SIGN A PARTICIPATION AGREEMENT, AMENDED AS DISCUSSED ABOVE, FOR THE REMITTANCE OF INCREMENTAL SALES TAX. COUNCILMEMBER ACERSON SECONDED THE MOTION. THE VOTE IS RECORDED AS FOLLOWS:
COUNCILMEMBER ACERSON AYE
COUNCILMEMBER BATH AYE
COUNCILMEMBER BAYLESS AYE
COUNCILMEMBER CARPENTER ABSENT
COUNCILMEMBER HATCH AYE
THE MOTION CARRIED UNANIMOUSLY (4-0) WITH ONE ABSENT.

COUNCILMEMBER ACERSON MOVED TO ADJOURN THE SPECIAL MEETING AT 7:00 P.M. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

APPROVED - September 7, 2004