West Valley City's redevelopment agency collected $22.5 million in tax increment in fiscal 2025, the year it sold its hotel position

The Redevelopment Agency of West Valley City collected $22,508,283 in tax increment from other taxing agencies in the year ended June 30, 2025, according to a disclosure required by state law in the city's audited annual report. ^[1]

Where the increment came from

The Northwest economic development area produced the most, $8,857,558. It was followed by Southwest at $3,377,143, City Center at $2,424,503 and North Central at $2,148,128. The smallest amount listed was $73,340 under the Utah Inland Port Authority. ^[1]

What the agency spent

The agency reported $49,191,785 in amounts expended during the year: $28,648,045 for debt service, $9,515,621 for site improvements and preparation, $6,157,995 in tax increment paid to other entities, $4,573,096 in administrative costs and $297,028 in cost of services provided. It reported no property acquisitions held for resale and $10,362,000 in outstanding bonds and loans to finance its projects. ^[1]

The agency's fund balance was $24,052,093 at the end of the year, a decrease of $5,006,848 that the report attributes to increased expenditures for redevelopment projects. ^[3]

The hotel

The annual report says the agency sold its position in the neighboring Embassy Suites hotel, resulting in a large gain on sale that was offset by the costs of retiring the debt on the building. ^[2]

Gain on disposition of assets increased by $25,083,563. Retiring the hotel's debt accounted for $31,160,958 of the increase in governmental activities expenses and was described as a one-time expense. Governmental liabilities fell by $25,387,157, which the report attributes mostly to the retired hotel debt. ^[2]

The report also says the agency transferred $8,319,926 of property held for resale to the city, land that sits under newly designed roads or city facilities. ^[2]

The city's letter of transmittal says rental income rose by $4,523,658 as the city transitioned responsibility for operating the hotel to a new owner, and that debt service expenditures rose by $20,630,918 as the hotel debt was retired. ^[5]

The budget amendments

A June 10, 2025 agency packet lists budget amendments previously approved for January through March 2025: $32,000,000 for "Sale of Hotel," described as an offset for the sale; $6,114,316.84 for a transfer of property to the city for land used for Fairbourne Station and other city uses; and $3,275,431.56 to write off land held for resale. ^[4]

These are budget authorizations. The records reviewed do not state the hotel's sale price or the buyer. ^[4][2]