Lehi's 2023 Texas Instruments deal sends 70% of the plant's tax increment to TI through 2052, with no maximum set

In January 2023, Lehi's redevelopment agency voted to extend a tax increment incentive for the Texas Instruments chip plant for 30 years, through Dec. 31, 2052, under an agreement that pays 70% of the area's increment to the company. ^[1][2]

The project area budget the board adopted that month, as presented in its meeting packet, says it "does not set a maximum amount that the Agency is allowed to receive." ^[3][4]

The project area plan in the same packet projected $644.6 million in increment over 30 years, with $451.3 million going to Texas Instruments. ^[3]

How the money flows

Under the agreement, the agency receives 100% of the incremental tax revenue from the roughly 283-acre site, less $50,000 a year retained by Utah County. ^[2]

Seventy percent goes to Texas Instruments, and the other 30% is split 44% to Alpine School District, 44% to Lehi City and 12% to Utah County, according to the budget. ^[2][3]

The plan projected $85.1 million each for the school district and the city, $23.2 million for the county, and nothing for the water districts over the 30 years. ^[3]

The plan said: "This will be the largest incentive the Lehi RDA has put forth for any company." ^[3]

It also said the agency would ask the taxing entity committee to waive the 20% set-aside for low- and moderate-income housing and would take no administrative fee. ^[3]

What TI must do

The agreement requires Texas Instruments to apply for building permits for at least 800,000 square feet of new space by Dec. 31, 2025, and to receive certificates of occupancy for that space by Dec. 31, 2030. ^[2]

It requires capital investment of at least $0.5 billion by Dec. 31, 2030, and $3.5 billion by Dec. 31, 2034, and makes the company responsible for infrastructure the project needs. ^[2]

The agreement says any amounts the agency owed under the earlier Micron agreements "are extinguished in full on the Effective Date," Jan. 1, 2024. ^[2]

The city's fiscal 2023 financial report records the extinguishment of a $43,040,344 note payable to a developer "in connection with amendments made to the development agreement." ^[5]

The votes

On Jan. 24, 2023, the agency board voted 4-0, with Paige Albrecht absent, to adopt the plan, the budget, interlocal agreements with Lehi City, Utah County and Alpine School District, and an amended Texas Instruments agreement. ^[4]

Chris Condie, Paul Hancock, Katie Koivisto and Mike Southwick voted yes on each item. ^[4]

One resident spoke at the hearing and called the plan "a tax break and it's a gamble," according to the minutes. ^[4]

On Jan. 30, 2023, after what the economic development director called "further negotiations," the board approved the final amended and restated agreement 3-0, with Condie, Hancock and Southwick voting yes and Albrecht and Koivisto absent. ^[1]

Payments so far

In fiscal 2025 the agency received $6,912,605 from the area and paid $4,838,823 to Texas Instruments, $916,611 to Alpine School District, $912,257 to Lehi City, $159,618 to Utah County and $80,877 to the Timpanogos Special Service District. ^[6][7]

Utah County's report for tax year 2024, whose project total matches that $6,912,605, shows $4,981,783 of the area's increment came from Alpine School District levies. ^[8]

The fiscal 2027 budget projects $9 million from the area, with $6.3 million going to Texas Instruments. ^[6]

The 2023 plan said the agency had "currently paid out approx. $85M in TIF" under the Micron agreements, and the agency's 2020 annual report showed $86.5 million of Alpine School District increment collected in the area through 2020. ^[3][9]

Utah County's increment reports for 2024 and 2025 list the project's end year as 2028, while the city's fiscal 2025 financial report says the agreement was amended "to expand the project period through 2053." ^[8][10][7]