Pleasant Grove's Grove Tower rebates reach $1.45 million of a $1.5 million maximum

Pleasant Grove's redevelopment agency rebated $739,078 in property tax increment in fiscal 2025 under agreements with outside entities, according to the tax abatement note in the city's audit. ^[1]

The audit says the recipients pay their property tax bills in full; once the agency verifies that an agreement's terms have been met, it rebates the agreed amount. The terms generally focus on business development, job creation and sales and property tax generation. ^[1]

Grove Tower

The two Grove Tower areas received $181,759 and $123,083 in fiscal 2025, a combined $304,842, on top of $1,145,091 in earlier years. ^[1]

That brings the total to $1,449,933, which is $50,067 below the $1,500,000 maximum listed for the two areas together. The audit lists the abatement as expiring in 2039. ^[1]

1300 West and Gateway

The 1300 West area received $434,236 in fiscal 2025 and $3,120,422 in earlier years, a total of $3,554,658, against a listed $4,750,000 maximum. The abatement expires in 2031. ^[1]

The Gateway agreement reported no rebate in fiscal 2025 and lists a $30,345,153 maximum. The audit says the agreement, created in August 2006 with a developer to encourage a convention center, hotels and restaurants, was amended six times as the project was delayed. The related bond was paid off by the developer in December 2021, and the property was later sold to another developer, which the audit says is in discussions with the city on a site plan and a possible increment request. ^[1]

The agency's fund

The redevelopment agency fund's balance rose $1,459,694 in fiscal 2025, to $6,221,033. The city's management discussion says the money comes from property tax in three areas. ^[2]

The audit classifies that balance as restricted for capital projects. ^[3]