Officials are driving a hard bargain with developers of some of the city's most prestigious building lots. But the deal may finally move the big-money lots off the drawing boards and a step closer to groundbreaking.
The City Council agreed this week to reimburse developers of Eaglewood subdivision for construction of a million-gallon water tank east of Bountiful Boulevard.The tank will allow the developers to sell about 150 lots surrounding the Eaglewood Golf Course, which is nestled high on the east bench. The proposed parcels offer views of the Great Salt Lake, and beyond that would-be homeowners will pay more than $75,000 to command.
But the developers will have to wait for their money.
The council will only repay the cost of construction of the tank and half of a transmission line from water-connection fees. That means if the developers don't sell enough lots in five years, they won't get all of their money back.
"I think it's a good balance between what the city should do for residents and what developers are obligated to do if they want to make a profit," said City Manager Collin Wood.
The developers will get at least $1,100 for each house built above Bountiful Boulevard during the next five years. They could get as much as $2,000 depending on whether the house needs a 3/4-inch or a 1-inch connection.
The city will collect $120 and $200 respectively but will own the tank outright after five years.
Officials and developer Steven Smoot and partners have wrangled over the tank since April. Smoot and company said they wanted the city to buy the land on which the tank stands and pay for pumps and a transmission line since the infrastructure would generate connection fees for the city.
The city argued the tank will serve mostly Smoot-related development.
The two have generally agreed to the new deal. The council this week gave the developers conceptual and/or preliminary approval for two subdivisions near the golf course.
Smoot and his partners plan to build the Eaglewood Cove subdivision, a 123-lot development, and the Eagle Mountain subdivision with its 28 lots.