Egg Farm developer Reed Bromley asks council to restore 5% interest on EDA reimbursements
November 1, 2022, 4:00 p.m. · American Fork City Hall, 31 N. Church St.
Developer Reed Bromley asked the American Fork City Council to revisit a 2013 amendment that cut the interest he is paid on reimbursements from the Egg Farm Economic Development Area from 5% to 2.5%, arguing it should not have applied retroactively. City Administrator David Bunker said there are no excess EDA funds and the remaining capital projects face a shortfall. North Pointe Solid Waste also previewed a tipping-fee increase to $34 a ton and a $7 million-$9 million transfer station expansion.
From the approved minutes.
Decisions at a glance
Agenda, item by item
Item 1 · Taxes and fees
North Pointe Solid Waste Special Service District presentation
Discussed
District Manager Neil Schwendiman said American Fork produces 12% of the district's curbside waste. The residential curbside tipping fee, $31.50 a ton this year, is proposed to rise to $34 a ton, with a district hearing Nov. 14. A 2022 master plan recommends renovating the current site, with expansion estimated at $7 million to $9 million.
- Fee$34 to North Pointe Solid Waste Special Service District
- Budget$9.00 million to North Pointe Solid Waste Special Service District
- Tipping fee history: $29/ton (2010), $32, $30.50, $31.50 (2022), proposed $34
- Expansion estimate: $7M-$9M
Item 2 · Development
Egg Farm Economic Development Area reimbursement interest
Discussed
Reed Bromley, developer of the Egg Farm area, said the 2013 second amendment to his EDA development agreement lowered interest on his reimbursable infrastructure costs from 5% to 2.5% and asked that 5% apply from 2002 to 2013. He cited a Lewis Young Robertson & Burningham schedule line for 'excess funds for agency use.' Bunker said up-front infrastructure consumed early increment, the EDA is capped and remaining capital projects face a shortfall. Councilmember Shelton, on the council in 2013, said the amendment clearly set 2.5% for 2002-2027 and that Bromley had agreed. The mayor said staff would send capital project figures and he would talk with council members individually.
- Developer: Reed Bromley (attorney Dan Van Woerkom present)
- First amendment 2007; second amendment 2013
- Developer receives share of tax increment (75% of available increment cited); 25% held for city improvements