OGDEN -- The Ogden Redevelopment Agency board adopted a resolution Tuesday night that will extend the Ogden River Project tax increment collection period by eight years.
The tax increment collection period for the Ogden River Project was set to expire June 30, 2019, but the extension allows the RDA to collect tax increment through June 2027.
Tax increment financing is a tool that captures projected property tax revenue created by a development and then allows those funds to be invested for improvements associated with the project.
The Ogden River Project encompasses about 60 acres straddling the river from 18th to 20th streets and Washington Boulevard to Wall Avenue.
It takes in what is known as the Riverbend mixed-use project, which entails the reclamation of the Ogden River, a walking trail, retail businesses and 730 dwellings, including townhouses, apartments and single-family homes.
The Ogden River Project was established in 2002 and was expected to produce a tax increment of about $14.2 million between 2005 and 2019, but the project has been delayed because of difficulty in acquiring property, the demolition of homes and poor economic conditions.
As a result, the Ogden River redevelopment area has generated only about $205,000 in tax increment, and the city has already invested more than $3.5 million in the project.
Tom Christopoulos, Ogden's director of community and economic development, said the extension of the collection period allows the city time to accrue enough capital to offer incentives to developers to move forward with development, as well as pay off existing debt from the project.
Officials expect the tax increment to reach $13.2 million by 2027.
The Ogden RDA, which is made up of the city council, would retain about $9.5 million in tax increment and would provide the remaining $3.7 million to other taxing entities.
In November, the RDA Taxing Entity Committee, which includes representatives from Weber County, the Ogden School District, the state Board of Education and the sewer district, unanimously approved extension of the project area to 2027.