That’s thanks to two agreements signed by the Davis County and Centerville City Council, Tuesday in their respective meetings.
The Davis Board of Education also gave its go-ahead relating to tax financing in its own session, that day, as well. A separate story on page 6 details that action.
The city council gave its backing paving the way for tax-free bonds of more than $9.6 million to be issued. The city is acting as a conduit for the federal American Recovery Act money only. That authority enables Zions Financial to issue bonds, tax-free, for the private sector project.
City Finance Director Blaine Lutz said “hundreds of thousands of dollars” will be saved, overall, via that tax-free status.
The county, meanwhile, gave similar approval to just under $3 million that will be awarded to Centerville and go toward infrastructure improvements – primarily for the Megaplex but ultimately for the entire 28-acre project, County Economic Development Director Kent Sulser said. Again, taxpayers will bear no responsibility for resultant bonding.
That provides ability to issue just under $12.5 million in tax-free bonding for the $27 million theater, said Jason Burningham, financial adviser with Lewis Young Robertson & Burningham of Salt Lake City.
Funding ability will “stimulate new construction and jobs,” Burningham said.
The Larry H. Miller Group hopes to complete the theater by October of next year, in time for the big Thanksgiving/Christmas movie season.
About 200 construction jobs are envisioned, generating a payroll of well over $5 million, Sulser said.
When in operation, it’s projected there will be 35 full-time employees and 125 part-time, with an annual payroll of about $1.7 million.
Other office and retail development is anticipated to augment the centerpiece theater component, said Lutz.
“There are many communities that would be thrilled to have this project,” Sulser said.
Anticipated impact of the Centerville theater complex on a planned Farmington Station Cinemark multi-screen facility was briefly discussed with reporters late Tuesday morning.
“Numerous discussions” have been held with Cinemark Farmington and CenterCal (project) officials, Burningham said.
“Both are saying they don’t know why they’d stop their project. They will serve a different market,” likely concentrating on central Davis County.
For Legacy Crossing, meanwhile, the South Davis market is largely “leaking” to The Gateway Megaplex 12 in Salt Lake City.
tbusselberg@davisclipper.com
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