Citing safety as the reason for voting to reimburse Eagle Hardware $200,000 for site improvement costs, the Orem City Council, acting as the Redevelopment Agency, will give $50,000 annually for the next four years to the hardware giant.
The approval for the financial assistance came in spite of steadfast opposition by Councilwoman Judy Bell and a couple of residents."It's not fair to deny one and grant another," said Bell. "We're talking prime location here, and we turned down HomeBase when they had a hardship."
Acting City Manager Jim Reams said Eagle Hardware was asked by the city to develop a complete parcel that included incompatible land uses such as agriculture and residential.
He said the company took on extra costs at the city's request and is helping to widen Main Street with a third lane for turning and to improve the intersection of 200 West and 1300 South by adding traffic signals.
Main Street at the intersection of Main and 1300 was too narrow, and the 1300 South and 200 West intersection will need lights with the additional traffic generated by Eagle store and the adjacent Lake Pointe Shopping Center.
"So they do have a little bit more to do than others," said Richard Manning, director of public works.
Mayor Stella Welsh said the city promised to pay the difference if Eagle Hardware developers would agree to purchase two homes that would have been left landlocked on Main Street.
Welsh said Eagle Hardware did not need the homes to go ahead and did agree to buy them at the city's request.
"It would have been a grave, grave mistake to leave those homes there," said Timothy Christensen the councilman who made the motion for approval.
Louis Erickson, a resident and former candidate for the City Council, said the city has no place spending taxpayer's money to help a business like Eagle "that doesn't need any help."
Erickson said the area in question is not blighted and is, in fact, some of the most expensive and desirable property in the city.
He said Eagle Hardware should not be given an advantage over established and competing businesses.
"I'm holding your feet to the fire," he told Mayor Welsh. "You promised in your campaign not to encourage economic development with abuse of the RDA and not to give anyone an advantage with RDA money."
"I do not believe this is an abuse of the RDA," Welsh said.
Resident Russell Park said the city should be very careful in giving away RDA help and make developers pay the true costs of their developments.
"The question is whether or not we're helping citizens, not a company," said Councilman Steve Heinz.
"We forced them (Eagle Hardware) to buy those homes. They didn't need them," said Councilman Stephen Sandstrom.
Councilman Chris Yandow said the issue quickly became one of safety rather than one of an RDA nature once it was understood that the two homes would be left isolated with approval of the development.
Erickson said Eagle Hardware has already profited from the purchase and will continue to profit. "They haven't lost anything. They are not unwhole," he said.
Councilman Sandstrom said the costs being incurred by Eagle for site and road improvements are "more than what they're asking back."