REDEVELOPMENT PROJECT AREA #1

The CBD Mall Redevelopment Project Area was established in 1977 and encompasses 48.45 acres of land in downtown Ogden. The Area was established to facilitate the development of the one million square foot Ogden City Mall, a $56 million project. Ernest W. Hahn, Inc. was the developer of the Mall. There have been several stages of funding for this Project.

Initially, the RDA (then known as the NDA) issued a bond for $8,795,000 to finance costs associated with land acquisition, site clearance, public improvements, administrative expenses, and relocation expenses. Besides the bond, there are other debts associated with this redevelopment area. These debts include: administrative bank charges; Ogden City's overhead and administration costs; operating costs for the mall parking structure; and a loan of Community Development Block Grant (CDBG) monies from Ogden City to the RDA for sidewalk and other offsite improvements. Earthquake insurance is also an annually recurring cost.

In 1983, all then-existing redevelopment project area debts were codified and the debt in each area was prioritized for pay-back. The priority of payback for the CBD Mall Area is as follows: 1) the bond debt service; 2) administrative bank charges; 3) insurance; 4) parking operations costs; and 5) CDBG loan from Ogden City. The source of repayment for all these costs is tax increment.

In 1994 the RDA refinanced the balance of the original CBD Mall Tax Allocation Bond to take advantage of lower interest rates. This bond was in the amount of $6,500,00. The savings derived from the refinancing facilitated implementation of a tri-party agreement involving the City, the owner of the mall and the Woodbury Corporation.

The agreement generally provided that (1) Woodbury would donate to the City, subject to an outstanding Industrial Development Bond obligation, the Woodbury Building on the NW corner of the intersection of 24th Street and Washington Blvd.; (2) the Mall will lease/purchase the Woodbury Building; (3) the Mall will forgive past and future obligations for maintaining and operating the Mall parking structure; (4) the cash savings from the refinancing will be applied to the Industrial Development Bonds that encumber the Woodbury Building. The debt service on the bonds is scheduled to fully amortize by the year 2005.