2011 Issue

62 ron building, and infrastructure improvements such as roads and utilities. The first commercial construction already underway will include a 150,000 square foot commercial office facility on base that will be leased to Northrop Grumman. The development of additional off-base commercial facilities and future increments of commercial construction are subject to tenant demand. Ad- ditionally, any government construction will also be subject to the commercial tenant demand since Air Force revenue is generated through the profit sharing arrangement. During the development of the EUL site, the existing Air Force tenants in the 1200 zone buildings will remain in place until new facilities can be constructed. Personnel occupying the existing 1200 zone buildings will be relocated into new office space on a building-by-building basis, and Sunset Ridge will not demolish any 1200 building until all personnel in a building have been relocated. The project will create private property in an area that is cur- rently under federal jurisdiction and not taxed. Services such as water, sewer, and security for the development are going to be provided by the surrounding communities and other local agencies. Since this EUL will touch four cities and two counties with each entity having different taxing rates and different zoning and development standards, the state of Utah established the Military Installation Development Authority, or MIDA, a special economic development authority, to assist the developer and the Air Force to work out an agreement with the cities for planning, zoning, development standards, taxing, services, permitting, and funding. The state has also supported the project by pro- viding grants to help build a new west gate and a new security forces building, andMIDA has adopted development standards, permitting procedures and is working out agreements with the adjacent government entities to provide services and utilities to the development. Additionally, a payment in-kind account has been established and maintained by MIDA and will hold the Air Force shared value lease payments. MIDA will hold the state grants and tax incre- ment financing proceeds. From these accounts, MIDA will make distributions for the costs incurred with respect to infrastructure, roads, gate relocation and Air Force construction. The base will receive no direct cash payments. The vision for the Falcon Hill project is for it to be developed as an aerospace research and business park and will include office, support services, hotel, restaurant, and related retail. The base is home to the Ogden Air Logistics Center, which is responsible for program oversight and management of several missions and military aerospace assets. While Falcon Hill will be a great benefit to the Air Force, it’s also a projected gain for the Utah economy. Air Force officials project more than 15,000 jobs could come to the area as a result of the development. In addition, the construction of the first 180 acres alone could infuse a half-billion dollars into the economy. The total development value for the Falcon Hill project is expected to exceed $1.5 billion. This makes the Falcon Hill project one of Utah’s largest-ever commercial developments and supports the governor’s AerospaceCluster economic development initiative. Mr. Castle, Ms. Gtipon and Mr. Holt are associated with the Plans and Programs Directorate at the Hill Air Force Base, as the Falcon Hills project’s project manager, communication manager and interim project manager. respectively. Mr. Holt is a member of the Society of American Military Engineers, the Great Basin Post. Business lending is our business. Cari Fullerton Weber County 801.409.5059 Ron Bagley Salt Lake County 801.924.3606 Erik Tadje Utah County 801.623.5140 Member FDIC