How Ogden paid the WonderBlock bonds in fiscal 2025

Ogden's City Council voted on Jan. 10, 2023, on two bonding proposals for the WonderBlock development on the former Hostess site. The city said at the time that "no property or sales tax increases are required." ^[1]

The city's WonderBlock FAQ says the redevelopment agency's $64 million share would be repaid from estimated grants of $6.5 million, retained tax increment of $21.5 million and $36 million in Business Depot Ogden lease revenue. It lists the impact on the city's general fund or property owner taxes as "None." ^[2] It says the municipal building authority's $53.5 million in parking structure bonds would be repaid from paid-parking revenue. ^[2]

Fiscal 2025 payments

The $64,220,000 redevelopment bond carries a 4.73% rate, and $136,130,130 in principal and interest remains payable through January 2058. ^[3] The city's coverage table for the Continental area shows $3,472,787 in pledged sales tax revenue in fiscal 2025, $34,632 in tax increment from the WonderBlock parcels less $34,632 in pass-throughs, and $3,472,787 in debt service, a coverage ratio of 1.00. ^[3]

For the building authority's $62,990,000 lease revenue bonds, fiscal 2025 debt service of $1,034,390 was paid from capitalized interest held in the bond debt service reserve account. ^[3] Interest due over the life of those bonds totals $67,440,039. ^[3] The Business Depot Ogden fund transferred $8,721,875 to the redevelopment agency in fiscal 2025. ^[3]

Tax increment in the Continental area

Weber County reported $84,811.69 in tax increment to Ogden's Continental project area for tax year 2020 and $251,127.19 for tax year 2024. ^[4][5]

The redevelopment agency's fiscal 2027 budget for the Continental area shows $3,589,750 in revenue: $400,000 in taxes, $3,179,750 in other financing sources and $10,000 in interest. It budgets $3,369,750 for debt service. ^[6] The building authority's fiscal 2027 budget shows $3,169,225 in lease payments and $4,190,225 in debt service. ^[7]