Granite School District votes to fund Cottonwood Mall redevelopment

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The Granite School District Board voted 6-to-1 tonight to give $52-million to the developers of the new Cottonwood Mall.

The money would be in the form of RDA funds.

The district trusts it will get back its money and more from sales and property taxes when the new mall opens.

EarlierRichard Piatt reporting

There are strong differences of opinion about whether to use public funds--including money from the Granite School District--to help redevelop the Cottonwood Mall area. Tonight is a key step toward Holladay saying "yes" to the project.

We're talking about Redevelopment Agency (RDA) money, an incentive for the developer to do a project. But it would mean a $52 million commitment from the Granite School District over the next 20 years, and a lot of people think the idea is out of line.

There's no question that the old, nearly empty Cottonwood Mall property will be redeveloped some day. The city of Holladay needs the tax base from the area, and right now this is the project the city has an eye on: a massive residential-retail complex crucial to Holladay's future.

Granite School District votes to fund Cottonwood Mall redevelopment

"It is the taxing entity for the city of Holladay. It is the engine that drives the city: the Cottonwood Mall," explained Holladay City Manager Randy Fitts.

The high-end shops and upscale homes are expected to cost $552 million to build. Chicago-based developer, General Growth Properties (GGP), is willing to invest in the area. But as an incentive, GGP is hoping for a grant made up of Redevelopment Agency money, funded by taxpayers.

Part of this deal includes a 20-year, $52 million commitment from a specific group of taxpayers: those in the Granite School District.

That idea is something critics call outrageous. "This is clearly the worst case of RDA abuse Utahns have seen in many years. A $52 million giveaway to build million dollar homes instead of going into Utah classrooms," said Royce Van Tassel, of the Utah Taxpayers Association.

The Granite School Board will vote tonight whether to agree to the deal. It is one of eight taxing entities involved--six of which have to say "yes" to the deal.

The question has sparked outrage in the district. Tonight's meeting is expected to be packed, but Holladay's city manager calls this deal an investment for all taxpayers. "It is an investment in the future. It seems like just yesterday we were worried about Y2K," Fitts said.