By Christopher Smart| The Salt Lake <\/strong><\/p>\n

$110 M,total cost with interest on play house will be closer to $187 million.<\/em><\/p>\n

It\u2019s not exactly a gamble. Call it a calculated risk.<\/p>\n

The unveiling of the design for the proposed Utah Performing Arts Center is a month or two away , with construction to begin in January 2014. But Tuesday , the
\nSalt Lake City Council was still working to fine-tune financing for the $1 10 million playhouse.<\/p>\n

The funding aspect in play is called a \u201cCommunity Development Area\u201d or CDA. If every thing goes as planned, the CDA will bring in $33 million for the theater
\nproject over a 25-y ear period from 2016 to 2040.<\/p>\n

While it has been advertised as a $1 10 million project, the total cost of the mega theater, including interest on the debt, will be closer to $187 million if interest
\nrates were to remain where they are today , about 4.5 percent, according to council budgetary projections.<\/p>\n

The debt will be retired by a combination of funding mechanisms, including $15 million in private investment \u2014 most notably naming rights.
\nA CDA is a redevelopment tool much like a redevelopment area, where increased property tax revenues from the increased value of the developed property \u2014
\nknown as increment financing \u2014 go to the redevelopment agency . In a CDA, however, the redevelopment agency board cannot exercise eminent domain.
\nThe Salt Lake City Council on Tuesday , acting as the RDA board, adopted a CDA for block 7 0 downtown. The block is bounded by 100 South and 200 South
\nbetween Main and State streets.<\/p>\n

The City Council \u2014 acting as itself \u2014 is scheduled to adopt the CDA Feb. 19.
\nThe theater is planned for 137 S. Main St. And according to Stan Penfold, chairman of the RDA, it will spur development on the block, which, in turn, leads to new
\nproperty taxes.<\/p>\n

\u201cIt\u2019s all timing and economy ,\u201d he said of how much the CDA would bring. \u201cI\u2019m feeling pretty good we took a conservative estimate.\u201d
\nBoth Salt Lake County and the Salt Lake City School District have signed onto the plan that gives Salt Lake City 7 0 percent of the increment financing over 25
\ny ears. The council\u2019s vote next week will make that official.<\/p>\n

The largest chunk of funding, however, will come from \u201cStatutory Allocation Reduction Revenue\u201d or what city officials call SARR funding. Those are property
\ntaxes earmarked to retire the debt on the EnergySolutions Arena and the Salt Palace expansion. Those funds will become available in 2016 and could cover about
\n7 0 percent of the construction costs and interest on the playhouse.
\nRDA Vice Chairman Carlton Christensen said the $187 million debt will be retired by a combination of those three mechanisms in these approximate proportions:
\nprivate funding, 10 percent; CDA, 20 percent; and SARR, 7 0 percent.
\nThat, however, could change based on the productivity of the CDA and fluctuations in interest rates.<\/p>\n

\u201cIf there is an area in the county with high performance in property value, it\u2019s downtown,\u201d Christensen said. \u201cProperty values are increasing. This is a good place
\nfor a calculated risk.\u201dPart of the council\u2019s optimism is the knowledge that an office tower planned for the southeast corner of the intersection at 100 South and Main is well into the\u00a0planning stages and will certainly bring a property tax boost to the CDA.\u00a0Chicago-based Hamilton Partners already has signed on to build it and is coordinating with theater architects HKS and Pelli Clarke Pelli, said Council Chairman\u00a0Ky le LaMalfa.\u00a0\u201cThe creation of the CDA is a significant step forward,\u201d he said.<\/p>\n

<\/em><\/em><\/em><\/em>csmart@sltrib.com<\/em><\/p>\n

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By Christopher Smart| The Salt Lake $110 M,total cost with interest on play house will be closer to $187 million. It\u2019s not exactly a gamble. Call it a calculated risk. The unveiling of the design for the proposed Utah Performing Arts Center is a month or two away , with construction to begin in January 2014. But Tuesday , the Salt Lake City Council was still working to fine-tune financing for the $1 10 million … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[36,10],"tags":[],"_links":{"self":[{"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/posts\/419"}],"collection":[{"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/comments?post=419"}],"version-history":[{"count":2,"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/posts\/419\/revisions"}],"predecessor-version":[{"id":421,"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/posts\/419\/revisions\/421"}],"wp:attachment":[{"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/media?parent=419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/categories?post=419"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/michaelclara.com\/wp-json\/wp\/v2\/tags?post=419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}