Military Installation Development Authority (MIDA) Board Meeting Highlights

• • Meeting Highlight: In his last meeting, MIDA board member Steve Farrell who represents Wasatch County was recognized by his board colleagues and several presenters throughout the afternoon. Farrell chose not to seek re-election to Wasatch County Council this November, and introduced Wasatch County Council member Karl McMillan who has been recommended to Gov. Cox to be appointed to the MIDA board. “It’s been a great trip,” said Farrell. “We were a little leery of MIDA but we gained a great ally…. I’m retiring after 20 years; I’m riding off into the sunset on my tractor.”
•  
  • Financial Update and Military Recreation Facility (MRF) Bond Report: MIDA CFO Paula Eldredge reported preliminary financial results for the fiscal year ending June 30, 2024, including the status of several large multi-year infrastructure projects in the Falcon Hill, Military Recreation Facility, and Mountain Veterans Program project areas.  Eldredge provided a brief overview of how these development projects are a vital part of MIDA’s mission to promote economic development and military initiatives within the state.  She also explained that MIDA obtains funding for these projects through grants, loans, and limited liability bonds. Eldredge then shifted the focus to a discussion of the Military Recreation Facility project area debt. She shared a chart that illustrated the growth in taxable value since bonds were issued in 2020-2021, and the corresponding increase in revenues available to service debt in the Military Recreation Facility. She listed several contributing factors for the increase in private development, including investment in supportive infrastructure and exceptional development partners. See this link for the presentation.
•  
  • MIDA Executive Director Paul Morris discussed the very strong performance of both Deer Valley East Village construction, as well as tax increment revenues currently being realized and a 6:1 private to public revenue contribution. In addition are projected revenues to come in, including a proposed increase of the resort community tax from 1.1 percent to 1.6 percent starting July 1, 2028. After very thorough review and analysis, a recommendation by the MIDA Mountain Village PID to issue two new bonds (subordinate and senior) up to $390 million is being recommended to cover the current TAR bonds as well as accelerate the village core’s construction. (Last month the proposed bond issue was submitted to the State Finance Review Commission for their review. The Commission’s role is to provide recommendations to bonding political subdivisions or public infrastructure districts but it does not approve the bonds. No recommendations came out of that review.)
•  
  • Extell Founder and Chairman, Gary Barnett, next addressed the board to express his support and appreciation of the board’s consideration of the additional bond allocation. He said he stayed at the new Grand Hyatt Deer Valley (as its first guest), and that “it is great but a bit of an island. I think the military will use it all the time when they see what’s there.” Barnett shared much of what Morris did: that so much construction is going on, and going well, with 80-90 percent of the infrastructure in. He walked through the current construction projects. It is his desire to accelerate construction of the East Village to create additional guest offerings sooner.
•  
  • MIDA Chairman Adams remarked that while Utah has ‘the greatest snow on earth,’ “without the greatest facilities, it’s not as fun.”
•  
  • Based on a question from the public, MRF Project Area Director Heather Kruse gave a transit update, saying a partnership is being developed between Wasatch and Summit counties for a variety of opportunities for both guests and employees.
•  
  • MIDA non-voting member Ryan Starks said that on behalf of the Governor and the Economic Development Office, the acceleration of Deer Valley East Village “is exactly what we need.

BOARD ACTION

Unanimous approval of Ordinance 2024-03: Amending the Resort Communities Tax for the Military Recreation Facility Project Area (“MRF Project Area”) by Adopting the Additional Resort Communities Sales and Use Tax to be Effective at a Future Date.

Unanimous Approval of Resolution 2024-24: Resolution approving one or more Capital Pledge Agreements between the Authority and the Mountain Village Public Infrastructure District (the “District”) whereby the Authority pledges certain legally available revenues to the District in support of proposed revenue bonds of the District, and all related matters.

Morris highlighted the public infrastructure improvements that the incremental bond allocation would fund, including a secure location for military meetings:

• • Day Skier Dropoff/Escalator
  • East and West Side Trails and Recreational Facilities
  • Frontage Road (portion of)
  • Future Parking Structure (portion of)
  • Ice Ribbon
  • Operations and development of recreational improvements and governmental facilities on the east side
  • Lifts and Gondolas (portion of)
  • Magic Carpet (portion of)
  • Military Sensitive Compartmented Information Facility (SCIF)
  • Moderate Income/Workforce/Affordable Housing
  • Monument Signs
  • Mountain Sewer and Culinary Water (portion of)
  • Non-Culinary pumphouse and pumps
  • Mountain Improvements including roads and clearing
  • Phase 1 Global Resort Landscape & Flags
  • Plaza Deck and public area
  • Project Area Ski and Hotel Parking
  • Public Transit and Civil Improvements
  • Development and Operations; Jordanelle Parkway, Connector Roads, Portals, Parking, Stormwater, etc.
  • Regional Development and Associated Acquisitions
  • Retail & Commercial & Conference Facilities (portion of)
  • Skier Services Building (portion of)
  • Transit Center
  • Water Treatment Plant
  • Westside Mountain Improvements and MWR Conference Hotel Reimbursement

Unanimous Approval of Resolution 2024-25 Adopting the Utah National Guard Project Area Plan – Part 2 and Directing the Publication of a Notice of its Approval in a Newspaper of a General Circulation as Provided by Law.

• • Amends to add two parcels contiguous to Beaver Armory / Beaver Property / Beaver County. View Part 2 of the project area at this link.

Falcon Hill Project Area Update:

• • SRDP’s Taylor Woodbury said Jack in the Box is now open. The plans for the 1800 North Interchange are complete and going out to bid; construction expected to start next year. A developable site expected in 2028, with 50 acres on the east side of the highway. Next stage is talk about master plan for west side of interchange.
  • 3 Gate Trail: Pedestrian bridge will open in 2027. Once UDOT is done, completing the trail will occur.

Military Recreation Facility/Deer Valley East Village Update:

• • Extell’s Kurt Krieg presented several photos of the many extraordinary rooms of the Grand Hyatt Deer Valley, slated to open Nov. 20. The executive team, department heads, and more than 175 employees have been hired. Krieg emphasized that 100 service member reservations have been made to date. Military-related conferences are also starting to book for 2025.