Downtown Daybreak district reports $61.08 million payment to its developer

The Downtown Daybreak Public Infrastructure District No. 1 paid VP Daybreak Devco LLC $61,079,836.09 from its construction fund on April 7, 2026, according to the district's payment report for April through June. The report lists the payment as Requisition 2026-01. ^[5]

The district is a separate government from the City of South Jordan. The City Council's notice of a Dec. 2, 2025 creation hearing describes it as covering 30.629 acres in the Daybreak Urban Center plat, to finance public infrastructure for the Downtown Daybreak development. ^[1]

How the district was set up

The creation notice proposed three trustees: Brad Holmes, Eric Carlson and Mike Kunkel. It says the district's governing document would allow debt repayable from property taxes, special assessments, tax increment and other legally available revenues. ^[1]

A Feb. 5, 2026 notice signed by Kunkel as clerk said the board had authorized Tax Increment Revenue Bonds, Series 2026, of not more than $120,000,000, at no more than 12% interest and maturing in not more than 31 years, payable from pledged tax increment revenues. It set a hearing for Feb. 27. ^[2]

The board's Feb. 20, 2026 special meeting posting includes an Infrastructure Acquisition Reimbursement Agreement and an Administrative Funding Reimbursement Agreement among its attachments. ^[3]

What the financial statements show

The district's statements as of June 30, 2026 were posted with its Aug. 11 meeting, where accepting them was an action item. ^[4][6]

The capital projects fund reports $86,320,000 in bond proceeds and $61,079,836 in capital outlay. It reports $2,328,264 in issuance costs, a $164,020 transfer to the general fund and a $22,604,250 transfer to the debt service fund. ^[6]

The balance sheet lists $61,079,836 in construction in progress, $86,320,000 in bonds payable and $1,343,779 in bond interest payable. Total fund equity is shown as negative $3,366,309. ^[6]

The debt service fund held $14,341,320 in capitalized interest and $8,442,563 in its surplus fund. It budgeted $513,268 in HTRZ tax increment and $30,493 in CRA tax increment for 2026 and showed no receipts from either through June 30. ^[6]

The statements do not include a repayment schedule and do not say whether they were audited. ^[6]

Other payments in the quarter

The same report lists $7,500 to Zions Bank for a municipal advisory fee and $28,126.50 to Snell and Wilmer, LLP, described as developer counsel, from the cost-of-issuance fund. A $300 administrative payment to VP Daybreak Devco LLC is listed as Requisition 2026-02. ^[5]

The Ledger has not obtained the requisitions or the supporting cost certifications, and has not sent requests for them.