Nucor's tax increment is set to repay Brigham City's substation work before any company incentive

The Brigham City Council voted unanimously on Aug. 6, 2026 to activate the Nucor project parcel in the Utah Inland Port Authority's Golden Spike project area, starting the capture of tax increment with the 2027 tax year and running 25 years, according to the meeting's minutes. Councilmember Ryan Smith made the motion and Councilmember Dave Jeffries seconded it. ^[1]

Tax increment is the growth in property tax above a base value. Staff told the council that 25% of the increment continues to the taxing entities, 75% goes through the Inland Port structure, and the taxing entities continue to receive taxes on the base value. ^[1]

Who is paid first

According to the minutes, staff said the tax increment helps pay the infrastructure bond, and that Nucor agreed its incentive portion goes to the city until the bond obligation is satisfied. After that, eligible incentive funds may go to Nucor if it meets post-performance standards. ^[1]

Staff said public infrastructure funds can help pay for infrastructure for the Nucor development, including the city's electric substation, which was previously bonded as part of Project Charm. ^[1]

Nucor must meet an average wage standard of 110% of the Box Elder County base wage under its participation agreement, staff said. Staff estimated the project would ultimately bring 200 to 300 jobs. These are requirements and projections described at the meeting, not reported results. ^[1]

Staff said the statutory base year would be 2022 and would be finalized with Box Elder County. Community and Economic Development Director Tom Kotter said the dollar figures in his presentation were examples only. ^[1]

The port authority's agreement

On Nov. 6, 2025, the port authority's board adopted Resolution 2025-49, authorizing its executive director to sign a participation agreement among the authority, Brigham City and Nucor Towers & Structures, Inc. ^[2]

Under the terms in the resolution, the city completes the Watery Lane substation component of the Watery Lane project, and Nucor provides a 3.09-acre municipal utility easement, a 0.51-acre public utility easement and a 1.88-acre dedication for the substation. ^[2]

The authority would reimburse the city from remaining tax differential generated in the Nucor zone, not to exceed an estimated $9,085,000. The resolution says the actual reimbursement will be determined through a future procurement overseen by the city, and any request for more must come back to the board as an amendment. ^[2]

The resolution says the agreement takes effect on the date the last party signs it. The Ledger has not obtained a signed agreement. ^[2]

Sales tax from the project area

Separately, on Dec. 18, 2025 the council voted 4–0, with one member excused, to approve an interlocal agreement with the port authority on sales tax. Kotter said state law requires the State Tax Commission to send sales tax generated in the Golden Spike project area to the authority, and that under the agreement sales tax the authority receives from businesses inside the project boundaries would be returned to the city within a few weeks. No amounts were stated. ^[3]

The port authority's board approved the agreement in Resolution 2026-04 on Jan. 13, 2026. It takes effect when each party's records keeper attests and files it. The published resolution does not include the agreement text or a percentage. ^[4]

These sales tax returns are separate from the 25-year property tax increment. ^[3][4]