BY LOUISE R. SHAW
Clipper Staff Writer
KAYSVILLE — purchase and sale agreement on city-owned land near Flint Street and 200 North was approved by the city council here on Jan. 15.The agreement is between the city and Terra Basin, a limited liability company of the Adams Company.
“They’re talking about a neighborhood commercial area,” said John Thacker, city manager, when contacted by phone. “It’s a retail commercial area that serves the neighborhood.”
Kaysville City purchased the 15 acres in three parcels in 2006, at a total cost of $3,923,013, according to Thacker. Money from the city’s electric utility enterprise fund was used to make the purchase.
The land purchase was a source of controversy in the city. Over the years, a group of Kaysville residents objected to the use of enterprise funds, arguing that electric utility funds should only be used for electric utility needs.
Assembling the land was part of an economic development effort, said Thacker, which allows it to be sold and developed as a unit. Tax revenues are generated when new businesses come to the city, he said, which is one of the purposes of economic development. The other purpose is to see that city businesses meet the needs of city residents.
“Part of this is an economic development effort, but another part is providing goods and services located so that they save our residents money and travel time,” said Thacker.
“That’s the value of neighborhood commercial,” he said. “It’s goods and services which are purchased often so the closer they are the more lower cost they are to the residents.”
Terra Basin, LLC, will have until Aug. 15 to determine the feasibility of the project, with the option of a 90-day extension. The purchase price in the agreement of $5,319,138, covers the city’s initial cost and recovers the interest paid on the land, said Thacker.
Layton Sen. Stuart Adams-R, a partner in Adams Company, said there were multiple people involved in coming to the agreement, and that there were other offers for the land.
“It was a difficult process but a good process,” he said. “We’re trying to find something that we think would be conducive to that neighborhood.”