Big Meetings Tuesday Evening As the Council /RDA Lurches Toward Approval of the Junction Hotel Project

We're posting this info early, in order to afford WCF readers a full opportunity to digest and discuss all elements of the this proposed project, well in advance of Tuesday's Council/RDA sessions

An examination of Tuesday's upcoming Council/RDA agendas reveals that the Administration us still tweaking the details of the Junction "Hot Tub" Hotel project financing. Here's where the proposed financing stands at this latest juncture:

Proposed Project Financing
The $13 Million Hotel project will be funded using several different
financing mechanisms:
• $8.7 Million – Facilities Bonds: The City will act as a conduit
for the tax-exempt bonds. The Developer will be responsible
for the debt service.
• $1.5 Million – Tax Increment Bonds: The RDA will issue tax
increment bonds. The City will pledge the City’s Franchise
Tax as additional collateral for the bonds. Debt Service will be
derived from the tax increment generated by the development.
• $2.2 Million – New Market Tax Credits (Federal Allocation):
The Developer is still hopeful that there will be New Market
Tax Credits available for the project.

For a little background on the above-mentioned New Markets Tax Credit (NMTC) Program, by the way, check out this link:

• New Markets Tax Credit Program

There are four main items on Tuesday's Council agenda (5:30 p.m.):

• Public Parking Assessment Area No. 2010-1
- Designation Resolution #2010-23
- Assessment Ordinance #2010-41
Determination:
1. Pull Designation Resolution from Agenda
2. Pull Assessment Ordinance from Agenda
(A Parking Structure Is No Longer Part of the Junction Hotel
Project. These Actions are Unnecessary)
• Contribution Agreement Resolution. Pledging Franchise Tax as Security for RDA Junction Hotel Tax Increment Bonds.
Determination: Table to January 11, 2011 for Final Consideration.
• Addenda to Development Agreement - The Junction Hotel
Determination: Adopt/Not Adopt Resolution
• Industrial Revenue Bonds Qualified Recovery Zone Facilities Bonds - Authorizing Resolution
Determination: Adopt or Not Adopt Resolution

View the full Council packet here:

• 12/21 City Council/RDA Joint Session

The RDA Board will also consider "approvals" relating to the operative project documents (as amended) in a Special RDA Session (6:00 p.m.):

• Reports from the Administration. Junction Hotel Development Agreement Addenda, Amended Promissory Note, and Substitute Trust Deed. Proposed Resolution 2010-15 approving and authorizing two addendums to the Development Agreement between the Ogden City Redevelopment Agency, Kevin Garn, and Western States Lodging, L.L.C., pertaining to the development of a hotel structure on parcel 01-099-0004 at The Junction in Ogden City, Utah, including approving an Amended Promissory Note and Substitute Trust Deed. (Adopt/not adopt resolution – roll call vote)

View Tuesday's RDA packet here:

• 12/21 City Council-RDA Special Session

Lots of interesting nuances here, not the least being the apparent abandonment of a plan for an underground parking garage, and the Special Assessment District which was originally "envisioned" to help finance its construction.

Another interesting element? The administration and other principals seem to believe they'll be able to "close" this highly-complicated (some would call it "Rube Goldbergesque") transaction no later than December 28, even though "final" Council consideration of the Franchise Tax pledge ($1.5 million) as additional security for RDA Junction Hotel Tax Increment Bonds has been "tabled" to January 11, 2011.

We're posting this info early, in order to afford WCF readers a full opportunity to digest and discuss all elements of the this proposed project, well in advance of Tuesday's Council/RDA sessions.

All WCF readers are therefore invited to post their savvy comments before, during or after Tuesday night's Council/RDA events.

Update 12/22/10 3:40 a.m.: Both the Standard-Examiner and the Salt Lake Tribune carry stories this morning reporting on the results of last night's Council/RDA meetings:

• Ogden City Council votes to make legal advice off-limits to public
• Ogden OKs changes scrapping underground parking at hotel

Update 12/28/10 8:00 p.m.: View the full Council and RDA videos, via the Ogden City website:

• 12/21 City Council-RDA Special Session
• 12/21 City Council Regular Session