Ark Valley News - Park City clears way for Echo Hills commercial project

Park City clears way for Echo Hills commercial project
By Matt Heilman
Last Updated: June 29, 2012

A project that has been a few years in the making took a large step forward June 26, although a decision made by the Park City council wasn't an easy one. About two months after the 84-acre Echo Hills property saw its final drives, chips and putts, the land just west of 53rd North and I-135 is prepared for infrastructure improvements that are needed for businesses to build on the former golf course.

At its June 26 meeting, the city council approved about $4.2 million in improvements. The bulk of the expense is for paving and sanitary sewer work.

Developer Mike Loveland closed the sale on the Echo Hills property in November 2010 and now has found the right time to move forward, he said.

Loveland said he's received interest from retail, restaurant and hotel chains to build on the Echo Hills property, but he isn't ready to disclose the identity of any of the potential tenants.

He said zoning is in place for the commercial property, the plat has been recorded in the last few days, and financing has been arranged for infrastructure and other expenses for the development. J.P. Weigand is working to market 11 of the first-phase lots to potential builders.

While the council is optimistic about the potential for commercial development in the area, the eight-member group had a lengthy discussion on whether the reward was worth the risk.

The infrastructure improvements are to be issued as general obligation bonds. The cost for each infrastructure improvement will be divided and prorated to the lots they will service. The cost will be issued in special assessments, which tenants will pay. The specials will pay off the bonds, Park City clerk Dennis Nichols explained.

Council member Keith Thomas wasn't comfortable with committing $4.2 million toward the project because if somehow the development stalled and no tenants wanted to build on the property, Park City would be saddled with the bulk of the expense.

Council members Ray Mann and Mike Alumbaugh shared Thomas' concern, but ultimately joined fellow council members in a 7-1 vote in favor of approving resolutions for the infrastructure improvements.

Loveland pointed to the five motels and 15 restaurants that already call Park City home as an indicator that commercial development should excel at the heavily traveled 53rd Street corridor.

“This is the location that those types of businesses have congregated," Loveland said of Park City.

The reason, he said, is the presence of I-135 and Park City's proximity to the convergence of the area's main highways from the interstate. An additional 70 acres of undeveloped land sits to the north of the 84-acre Echo Hills property and also has potential to boost the city, said Tim Austin, a consulting engineer from Wichita-based Poe and Associates, representing the landowners north of Echo Hills.

He described the city's decision on whether to approve the resolutions for the infrastructure improvements as a “calculated risk" and made the point that the combined 154 acres of potential development was worth more than the city's investment.

Besides a heavy commitment from the city, Thomas opposed moving forward because he believes the plans are still too vague for such a large investment. He said he would feel more comfortable if specific businesses would come forward with a commitment to build. He also didn't feel like the developer had enough “skin in the game" with 35 percent letters of credit on the infrastructure improvements and that the potential risk wasn't the answer to help the city with its financial troubles.

“What we're hearing is, to handle the debt, we have to create more debt," Thomas said.

Park City Administrator Jack Whitson said the city would have to make a move to bring more development to town to overcome its debt.

Park City has gotten by with reserves to supplement shortfalls, but the reserves won't last forever, Whitson said. While usually conservative when it comes to spending, council member Gary Aldrich said the economy will again turn for the better. Looking at the Echo Hills project, he agreed that now is a good time to commit to commercial development since developers are interested and construction costs are low.

Mayor Emil Bergquist shared a similar view, saying there are developers with money who are looking for an opportunity like what's presented once infrastructure is in place.

Loveland indicated it would likely be toward the end of 2013 before the first tenant started business on the 84 acres. While acknowledging the risk of the $4.2 million infrastructure improvements, John Lehnherr discussed the impact of the interstate on the success of several businesses in Park City and said he expects the plans for Echo Hills to build off of that success.

“There's a risk with everything we've done," he said. “But I-135 is a gold mine for Park City."

Thomas was the lone council member to vote against the resolutions for the development's infrastructure improvements. The council was unanimous in approving a contract with the Baughman Co. and Poe and Associates for engineering services for the project.