Ogden RDA changes a 2015 Thorstensen Building deal and approves a $290,000 townhome incentive

Ogden's redevelopment agency board took two housing votes on July 14, 2026, according to its approved minutes: a change to a decade-old downtown development agreement and a new incentive for for-sale townhomes. ^[1]

Thorstensen Building

Resolution 2026-6 amended a 2015 land transfer and development agreement with the Lotus Group for the Thorstensen Building at 2331 Grant Avenue. The original agreement required about 30 market-rate loft apartments on the upper floors. The amendment allows 25 income-targeted artist lofts and extends the completion deadline to April 30, 2028. ^[1]

Economic Development Director Eric Gibson told the board that multiple commitments under the 2015 agreement went unmet by both parties, including an anticipated parking structure, the city's lease of space in the Hearst Building and ground-floor tenants who did not occupy their spaces. He said the developer had since been awarded federal and state historic tax credits. ^[1]

Gibson said the change would modestly reduce property valuation and unit-based fees, and projected about $20,000 to $25,000 a year in property tax and about $500,000 a year in local economic activity. Lotus representatives said units would be set aside at 60% of area median income. ^[1]

The amendment passed 4-3. Board members Lopez, Lundell, Myers and Washington voted yes; Richey, Vice Chair Graf and Chair Hyer voted no. Afterward, each of the three cited a preference for ownership, higher-end housing or income balance downtown. ^[1]

The Vibe townhomes

Resolution 2026-7 authorized a participation and incentive agreement with Color Sky Homes, LLC for 10 market-rate for-sale townhomes at 2546 Adams Avenue, in the Adams Community Reinvestment Area. The agency would reimburse the developer up to $290,000 from new property tax increment after the units are built. ^[1]

Gibson said staff identified a funding gap of $640,000 that was negotiated down to $290,000 after the developer changed features and scope. He listed retaining walls, fire sprinklers in five interior units, utility connections from two streets, and brick and public-art requirements as cost drivers. The developer told the board the main change was reducing interior finishes. Staff estimated prices of $310,000 to $440,000. ^[1]

A council staff review in the packet said that, unlike a recently approved apartment agreement, the Color Sky transmittal "does not appear to identify specific project features or costs that necessitate the incentive." The review also said the parcel is split-zoned and that a rezoning "may be necessary before the project can proceed as proposed." ^[2]

Board member Washington moved to table the item to Aug. 11 for review of its fit with the Nine Rails Creative District plan and questions raised in public comment. The motion failed for lack of a second. The resolution then passed 6-1, with Washington voting no. ^[1]

Terms of the Vibe agreement

The proposed agreement in the packet sets annual payments at 75% of the tax increment the agency receives from the project, due about Aug. 1 each year from 2027 through Aug. 1, 2045, until the $290,000 cap is reached. The agency keeps 25% for housing and administration. ^[2]

It requires deed restrictions, recorded with a private subdivision plat, that keep every unit owner-occupied for at least three continuous years. ^[2]

Payments depend on commercially reasonable efforts to substantially complete the project by Dec. 31, 2026, "subject to issuance of a building permit for the Project by May 15, 2026," and the agreement terminates if the project is not completed by that date unless it is amended. The packet's timeline lists the board's consideration as July 17; the minutes show the vote on July 14. ^[2][1]

The packet says the Adams CRA budget was raised in May 2025 from about $10.8 million to $28.5 million, with about $21.3 million available for incentives and infrastructure. ^[2]