Canyon Centre plan swaps office space for housing and a hotel; budget routes $8.7 million of increment to a county parking loan

The Cottonwood Heights Community Development and Renewal Agency adopted a third amended project area plan and a second amended project area budget for the Canyons Centre Community Development Area on Feb. 18, 2025, according to the adopted versions attached to a Salt Lake County Council item. ^[1][2][3]

What the plan describes

The plan lists an 80,000-square-foot, 125-room hotel; 36 condominium units; a 140-unit apartment building; 17 single-family homes; 16,000 square feet of restaurant and retail; a multi-level parking structure; and an open-space public plaza. ^[1]

It says the project first contemplated office use, but that "due to COVID-19, the office market has been significantly weakened" and is not expected to rebound soon. ^[1]

The plan says a shared parking plan "shows how the multi-level parking structure will benefit both the public and private parking needs of the development." ^[1]

The budget

The amended budget projects $15,218,257 in tax increment over the project's life, or $13,609,868 in present value at a 0.85% discount rate. ^[2]

Of the projected uses, $8,700,447 is county loan repayment for the parking structure, with a present value of $7,750,000. Other uses are $2,993,286 remitted to Canyons School District, $762,501 in school district recapture, $1,546,618 for parking structure operation and maintenance, $792,268 for public plaza improvements and $423,139 for administration. ^[2]

Participation differs by taxing entity. Salt Lake County, the county library and Canyons School District contribute 100% of their increment for 25 years, with the county subject to a cap in its interlocal agreement and the school district receiving 30% back each year and the agency's net share capped at $4,616,425. The city and other entities contribute 75% for 27 years, a period the budget says includes two additional years under a COVID-19 provision. ^[2]

The projected sources include $8,372,211 from Canyons School District, $2,357,325 from the county, $2,274,927 from the city and $642,675 from the county library. ^[2]

The county's approval

Salt Lake County's council approved the third amendment to its interlocal agreement with the agency on March 11, 2025. ^[3] The county's agenda summary says the amendment updates the project area plan and budget and does not change the financial terms of the county's participation. ^[4]

The attached amendment replaces the plan and budget exhibits and keeps the agreement's other terms in force. It takes effect only after both governing bodies approve it, authorized officials sign it, each party's attorney reviews it, copies are filed and notice is published. The signature and date lines in the attached copy are blank. ^[5]

Actual collections

The city's audited report shows the redevelopment agency fund received $484,443 in property tax revenue in fiscal 2025 against a $750,000 budget, across all its project areas. ^[6] It also shows $617,222 restricted in the Capital Projects Fund from redevelopment agency tax distributions for the Canyon Centre park. ^[7]