Orem council amends University Place tax-increment agreement to swap office benchmark for retail
March 12, 2024, 6:00 p.m. · City Council Chambers, 56 North State Street, Orem
The Orem council, sitting as the Redevelopment Agency, voted unanimously to amend the University Place participation agreement, replacing a 300,000-square-foot office benchmark with 100,000 square feet of new retail. The work session covered a consultant study of the 311 center, library and senior center, a proposed attainable-housing basement apartment program, and the fiscal year 2025 compensation and revenue plans.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
| Item | Result |
|---|---|
| HR annual report and FY2025 compensation | Discussed |
| FY2025 tentative revenues and rate changes | Discussed |
| Irrigation water pressure concern | Discussed |
| Advisory commission appointments | Approved · 5-0 |
| Amendment to University Place participation agreement | Approved · 5-0 |
Agenda, item by item
Item Work session · Presentation
City Center beam ceremony
Discussed
Layton Construction and Method Studio held a ceremony in which a signed beam was raised to the top floor of the new city center building. City employees and current and past council members signed the beam.
Item Work session · Presentation
MGT study of 311, senior center and library
Discussed
Consultants from MGT said the library has more staff than sister cities and that using inexpensive technology to summon help could save about $300,000 a year in personnel costs, possibly through attrition. They found the 311 center reasonably staffed but recommended a new phone system that records operating data. For the Senior Friendship Center they found staffing matched workload and that modest equipment purchases for after-hours rentals were feasible. Print versus digital library collections was described as a matter of city preference.
Item Work session · Presentation
Recreation New Year resolution impact
Discussed
Fitness Center Manager Mariah Shirley reported December 2023 and January 2024 attendance figures and said she was looking forward to fitness programming at Hillcrest and Oremfest Fit.
Item Work session · Presentation
Attainable Housing Agency (ADU program)
Discussed
Joe Spencer and Alex Guzman of the Attainable Housing Agency, created Nov. 29, 2023 by interlocal agreement between Utah and Weber counties, described a program that funds construction of basement accessory dwelling units with tax-exempt bonds, holds 10-year master leases secured by a trust lien and sub-leases the units to renters at or below 80 percent of area median income. They said cities can join as members, with a board seat and quarterly electronic board meetings, or partner by interlocal agreement, and that the agency would operate in Orem either way. The council asked about liens, pricing, tenant selection and city liability; Mr. Spencer said the city would have no liability. No vote was taken.
Item Work session · Budget
HR annual report and FY2025 compensation
Discussed
HR Manager Amy Peterson reported 313 new hires in 2023 (57 full-time, 256 part-time). Strategies and Innovations Manager Jennica Jones outlined the FY2025 plan: a 3 percent merit increase, a market study of every position, expansion of hybrid step programs and targeted market adjustments. Past combined increases were 4 percent in FY21, 3 percent in FY22, up to 7.5 percent in FY23 and 5 percent in FY24; sister cities averaged 6.63 percent in FY24.
Item Work session · Taxes and fees
FY2025 tentative revenues and rate changes
Discussed
Finance Director Brandon Nelson said the tentative FY2025 general fund revenue budget is $59,860,968, up 0.6 percent, including $32 million in sales tax and $7,788,768 in property tax. Proposed changes include a 3.5 percent cemetery fee increase, water rate increases of 3.5 to 4.0 percent, a sewer base rate rising from $12.46 to $16.98, a 2.8 percent storm water increase, solid waste increases of 4.2 to 5.0 percent, and a streetlight fee rising from $2.61 to $3.16 to help pay for City Center holiday lights. No Fitness Center rate increase is proposed. Nelson said Orem's utility costs are lower than Provo, Pleasant Grove, Lehi, American Fork and about 14 other cities.
- Budget$59.9 million
Item Mayor's report · Presentation
State of the City report and Beautification Advisory Commission report
Discussed
Communications Manager Peter Wolfley reported positive feedback on the March 7 State of the City event. The Beautification Advisory Commission reviewed its 2023 work and 2024 goals, including recognizing yards and holiday decorations, water-wise landscaping and supporting a community garden.
Item Personal appearance · Other
Irrigation water pressure concern
Discussed
Steven Heaps told the council that Lindon has chosen to claim its water shares from the canal, which he said would reduce irrigation pressure for Orem users on the North Union Canal system, and asked the city for help.
Item Consent · Appointment
Advisory commission appointments
Approved · 5-0
The council approved appointments of Elsie Powley and Laurel Smith to the CARE Advisory Commission, Scott Snow to the CDBG Advisory Commission and Don Housekeeper to the Heritage Advisory Commission.
Item RDA · Development
Amendment to University Place participation agreement
Approved · 5-0
City Attorney Steve Earl explained that University Place earns tax-increment reimbursement for infrastructure by meeting benchmarks. Because demand for office space fell after COVID-19, the resolution replaces the 300,000 square feet of Class A office space required in benchmark 3 with 100,000 square feet of new retail, shifting later benchmarks down 100,000 square feet until benchmark 8, which is unchanged. The developer has met benchmarks 1 and 2, there is no deadline, but the maximum increment requires completion by 2039. The new retail sits next to existing homes, so setbacks and tree buffering are required, and the added retail cannot be used to earn additional residential units under the PD-34 zone's 1.5 units per 1,000 square feet of retail limit (about 1,500 units on roughly 1.2 million square feet). Earl said the amendment adds no jobs or sales tax but keeps the incentive to expand.
- Zone: PD-34
- Change: 300,000 sq ft office replaced by 100,000 sq ft retail in benchmark 3
What residents said
Irrigation water pressureBuffering near homes at University Place
Steven Heaps addressed the council about irrigation pressure after Lindon's decision to claim canal shares.