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RIVERTON — The Jordan School District Board of Education has agreed to partner on a community development project in Herriman, one anchor of which will be a new manufacturing facility for Bullfrog International, a manufacturer of luxury hot tubs.
The school district will contribute $7.3 million in property taxes to the Herriman Innovation project over 15 years, but half — $3.69 million — will be returned to district through “mitigation payments,” according to Herriman city officials.
The board voted unanimously Tuesday to participate in the community development project, with the expectation that when fully built out, property tax collections will more substantially benefit the school district. Some $17 million of property taxes among eight participating taxing entities will support infrastructure developments in the area such as water lines, sewer lines and rights of way.
Although all members voted to participate in the project, some expressed concern about forgoing property tax revenues to support the nearly 40-acre Herriman Innovation project area to be developed near 11800 South and a few blocks west of 6400 West. Plans envision that roughly 580,000 square feet of business park building space will eventually be developed.
Board member Darrell Robinson said he supported the Herriman proposal “because it’s been in the works for a real long, long time.”
However, he noted that requests “put us in a very tough situation when cities come and ask for these kinds of tax breaks. If we say no, then we’re fighting against the cities, but do we really need these in an economy that’s so fantastic?
“It’s a tough situation we all have to be in over and over again to take money away from our children’s education to help continue economic growth when we already have fantastic economic growth in our area.”
Board Vice President Tracy Miller said she appreciated that Herriman City “recognizes the needs we have in our schools to not to give up with so much money for economic development. They came with good terms and they also came with a proposal for a partnership where they will work with our schools, and the new company that will be anchoring this development will work to provide jobs for our students.”
According to a Herriman press release issued in January, Bullfrog International will lease a 264,524-square-foot space in the Herriman Innovation District. The new location will also serve as its corporate headquarters and retail space.
A draft project plan states the first development of the project will create some 400 jobs, and possibly 800 within in a decade.
“It is anticipated that the project area could support an additional two developments, similar in nature, bringing the total building square footage to roughly 600,000 square feet of building space, with an estimated 2,400 employees,” the draft plan states.
Correction: An earlier version said Jordan School District will forgo $7.3 million of property taxes for the Herriman Innovation project over 15 years. Although the full amount will be collected, 50%, or $3.69 million, will be returned to the district through mitigation payments, according to city officials.
