Cottonwood Heights City Council meets deadline in purchasing Hillside PlazaMar 07, 2023 03:28PM ● By Cassie Goff
Cottonwood Heights has bonded to purchase the Hillside Plaza property along Fort Union Boulevard. (Photo courtesy of Hillside Neighborhood Resident Group/Randy Whitehead)
The Cottonwood Heights City Council continues to move forward with their plans of purchasing the Hillside Plaza property (approximately 2378 Fort Union Blvd.). Throughout the beginning of this year, they have been undergoing the due diligence process by looking at existing surveys, tenant leases, utility bills and additional important documents. In addition, they have been considering bonding processes backed by sales tax revenue through interlocal agreements.
“I think I witnessed a miracle,” said spokesperson for the Hillside Neighborhood Resident Group Randy Whitehead. “There is a change happening within the city the attitude towards the city council. This city council really cares about their residents.”
The purchase price for the 10-acre property, which does not include the Walgreens’ building or parking lot, was set for $14 million. In January, Cottonwood Heights was required to make a $100,000 deposit in order to begin the process of acquiring the property. At the end of their due diligence process on Jan. 31, they were required to pay an additional $100,000 as part of their down payment.
“We will facilitate reinvestment of this property to include a public purpose and private purposes,” said City Manager Tim Tingey.
On Jan. 17, the Cottonwood Heights Community Redevelopment Agency passed two resolutions to continue along the process of due diligence to acquire the Hillside Plaza.
Resolution 2023-01: Approving and Ratifying a “Shopping Center Purchase Agreement” for realty within the Town Center at 2300 East Fort Union Community Reinvestment Area was motioned for approval by Commissioner Shawn Newell and seconded by Commissioner Doug Peterson. It was unanimously approved.
Resolution 2023-02: Authorizing the issuance and sale of not more than $14.5 million aggregate principal amount of sales tax and tax increment revenue bonds was motioned for approval by Commissioner Scott Bracken, seconded by Commissioner Ellen Birrell and received unanimous approval as well.
“We are so excited for Hillside Plaza,” said resident Mickey Harris. “This is what residents want and what the community needs.”
The Cottonwood Heights City Council then passed Resolution 2023-07: Approving the Form of an Interlocal Sales Tax Pledge Agreement and the Issuance of the City Obligation Created Thereunder in the Maximum Aggregate Principal Amount of $14.5 Million, and Related Matters.
“It is in the best interest of the city to move forward with this resolution,” Tingey said.
Resolution 2023-07 was motioned for approval by Councilmember Doug Peterson, seconded by Councilmember Scott Bracken, and unanimously approved.
“Thank you for listening to us about Hillside Plaza,” said resident Mary Allen Johnson.