A tax-increment financed mixed-use mall redevelopment is showing signs of success in suburban Salt Lake City, Utah, raising nearby property values and indicating a trend amongst commercial developers who are finding profit by mixing uses.
"The $552 million redevelopment of Cottonwood Mall in Holladay, Utah..., is rapidly moving forward. The project represents a shift towards mixed-use development by General Growth Properties (GGP), the nation's second largest mall owner."
"GGP is negotiating to set up a tax-increment financing (TIF) district to pay for an estimated $65 million in infrastructure for the project and $10 million in off-site improvements, according to Spencer Angerbauer, developer with GGP. The difference between that amount and what the development would be paying - the 'increment' - could then be applied to pay off the infrastructure bonds, he explained. In the meantime, the city benefits from sales tax and the "halo effect" of rising property values in the area, he says. Talk of the site's redevelopment already caused nearby property values to rise, according to a recent article in The Salt Lake Tribune."
Thanks to The Intrepid Staff