Ogden city leaders approved a resolution Tuesday that would offer tax-increment financing for a new apartment building near downtown and the renovation of an existing nearby office building.
During an Ogden Redevelopment Agency meeting, members of the Ogden City Council voted unanimously to approve the use of TIF funds to be used for the Malakite Apartments, which would be located at 2637 Adams Avenue. The project is being done by the Salt Lake City-based Alpha Development, which estimates the apartment building would cost around $40.5 million.
The apartment development would include 101 market-rate units ranging from studios to three-bedrooms in a five-story building. The apartments would have 65 dedicated parking stalls, as well as outdoor walkways and plazas.
Sara Meess, Ogden’s economic development director, said the city estimates the project would generate around $4.7 million in tax increment through 2044. The TIF funds would contribute to the costs of different aspects of the project, including structured parking as well as plazas, walkways and landscaping. TIF funds would also go toward exterior finishes on the buildings.
In a transmittal to the city council, city staff wrote, “Without TIF support, the project would be lower density, rely on surface parking rather than structured, and would lack the amenities and outdoor features that help connect it to the Nine Rails Creative District.”
Meess said it’s exciting to have a market-rate proposal for the area, which has typically seen income-restricted units.
“I think we’ve seen in recent years that a lot of what pencils without RDA involvement are income-restricted housing projects,” Meess told the council. “That’s an important part of our overall housing strategy, and it will continue to be so, but we want to make sure that we’re maintaining an appropriate balance, and as we build income-restricted units, we want to make sure that we’re building market-rate units as well.”
In addition to the apartments, Meess said the project overall would have a mixed-use setting, as the nearby historic Utah Power and Light commercial building, located at 457 26th Street, will be renovated at the same time. Though the projects are being done by two separate developers, the two projects are being done in close coordination, Meess said. The renovation cost to the commercial building would cost around $6 million, and no TIF funds are set to be used on the building.
The two buildings are zoned as C-9, Commercial Nine Rails Creative District, which allows for multifamily developments while putting a focus on public art. The two buildings would have a public walkway and a plaza between them, which Meess said is currently an alley that’s closed off.
Council Member Angela Choberka said she had concerns about the height of a multifamily development so close to a single family home, as there’s a home just to the south of the development. However, Meess said the RDA has worked closely with city planners on this project, and existing plans are within city code.
Meess said the project is currently in a site plan review, and the building’s height and setbacks in current plans comply with city code.
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