Eagle Mountain authorized up to $10 million in bonds and adopted a Mid-Valley retail project area in 2026
In June the Redevelopment Agency authorized up to $10 million in sales tax and tax increment revenue bonds for road work tied to a planned retail development. In August the council adopted the Mid-Valley project area plan and approved a participation agreement with Terra Smith's Eagle Mountain LLC, 4-1.
Continuing story: Auditing Eagle Mountain
Eagle Mountain's Redevelopment Agency authorized up to $10 million in bonds in June 2026 to help pay for road work near a planned retail development, and in August the City Council adopted a new Mid-Valley Community Reinvestment Project Area plan for the site, according to agency and city records. [1][2][4][5]
The bond authorization
The agency's notice says its board adopted a resolution on June 2, 2026 for Sales Tax and Tax Increment Revenue Bonds, Series 2026, of not more than $10,000,000. The bonds may carry interest of no more than 5.50%, mature in no more than 20 years and sell for no less than 97% of principal. [1]
The bonds would finance part of the capital project costs for the Mid-Valley project area, a debt service reserve fund if needed and issuance costs. They would be repaid from tax increment in the project area and all or part of sales tax revenue pledged by the city, with that pledge subordinate to the city's pledges for its own bonds. [1]
The June 2 staff report, presented by Administrative Services Director Kimberly Ruesch, describes a proposed 50-acre retail development anchored by Smith's Marketplace and Lowe's Home Improvement. It says the bonds would help fund roadway improvements including Old Airport Road, Lake Mountain Corridor and Pony Express Parkway, and that the council directed staff on May 19, 2026 to move forward with financing options. [2]
The draft budget
The agency's notice for an Aug. 18, 2026 hearing describes the Mid-Valley area as 53.170 acres. It says the agency requested $26,908,357 in sales tax increment, all from Eagle Mountain City, for the first phase of the project at current tax rates. [3]
The draft budget lists $24,082,979 for redevelopment activities, $2,690,836 for the housing requirement and $134,542 for administration, with a net present value of $15,751,273 at a 4.00% discount rate. It says the increment would be generated only if the area is developed. [3]
The council's Aug. 18 votes
The council approved an interlocal agreement with the agency 5-0, after City Attorney Marcus Draper said a reference to property taxes in its title should read sales taxes. The motion was amended to say incremental sales taxes. [4]
It approved the participation agreement with the city, the agency and Terra Smith's Eagle Mountain LLC 4-1. Melissa Clark, Zachory Huish, Craig Whiting and Brett Wright voted yes and Rich Wood voted no. The minutes do not record his reasons. [4]
It voted 5-0 to adopt the project area plan, contingent on the agency's approval. No public comment is recorded on the three items. The minutes were approved on Sept. 1, 2026. [4]
The city's notice of adoption says the council passed Ordinance O-36-2026 on Aug. 18 and that the agency approved the plan the same day. [5]
The $10 million bond figure is a maximum the agency authorized, and the $26.9 million is a budget request for the project's first phase. Neither is an amount borrowed or paid.
Sources
- Redevelopment Agency of Eagle Mountain City · Notice of bonds to be issued, Series 2026 (June 2026)
- Eagle Mountain Redevelopment Agency · Agenda and staff report, June 2, 2026
- Eagle Mountain Redevelopment Agency · Mid-Valley CRA plan and budget hearing notice, Aug. 18, 2026
- Eagle Mountain City Council · Minutes, Aug. 18, 2026 (approved Sept. 1, 2026)
- Eagle Mountain City · Notice of adoption of Ordinance O-36-2026, Mid-Valley CRA plan
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.