Orem's redevelopment agency paid $6.4 million in tax increment to University Place's owner in fiscal 2021–2025

From fiscal 2021 through fiscal 2025, Orem's redevelopment agency paid $6.38 million in property tax increment to the owner of University Place, according to the city's fiscal 2025 annual report. ^[1]

The yearly payments were $1,034,885 in fiscal 2021, $1,119,739 in 2022, $1,188,797 in 2023, $1,217,065 in 2024 and $1,822,564 in 2025. ^[1]

The agreement, numbered RDA-A-2015-0001, is with University Mall Shopping Center L.C. and pays it 90% of available tax increment, subject to benchmarks and caps, from fiscal 2019 through fiscal 2038. ^[2] Under the agreement, 5% stays with the agency for future improvements in the area and 5% goes to the city for administration. ^[1]

Where the money comes from

The University Place community development area was created Sept. 23, 2014, and covers roughly 800 South to 1300 South between 800 East and State Street. ^[2] It is the only one of the agency's eight project areas still collecting increment. ^[2]

Utah County, Orem, the Orem Metropolitan Water District and the Central Utah Water Conservancy District each give up 75% of their tax on the area's added value, and Alpine School District gives up 65%. ^[4][6]

For tax year 2024, the county's report lists $1.90 million in available increment for the area, of which $1.37 million came from Alpine School District. ^[4] For tax year 2023, it lists $1.49 million, including $1.04 million from the school district. ^[3]

The county's tax year 2025 report lists the area's real property value at $340.4 million, compared with $467.7 million in the 2024 report, and lists $888,517 in available increment from the school district. ^[4][5]

Forecast and actual

A 2021 annual report on the agency, posted by the county auditor, forecast $20.05 million in increment for the area from fiscal 2022 through 2038, with $18.05 million going to the developer. ^[6] It budgeted $1.18 million in increment for fiscal 2023. ^[6]

The agency received $2.03 million in fiscal 2025, and Orem's own share of that was $257,830. ^[1] Its fiscal 2027 tentative budget sets aside $1.8 million for the incentive payment. ^[2]

In 2021, the council approved a two-year extension of the increment payments that University Place and the Woodbury Corp. requested because of pandemic-related construction delays, the Daily Herald reported. ^[7]

The 2021 report said its preparers had not identified any other major areas of concern with the project area. ^[6]