LEHI — The Utah County Commission has agreed to obtain $2 million through a revenue bond to pay for a museum in a yet-to-be-built megastore for outdoor-recreation enthusiasts.
Cabela's, described by some as the Disneyland of retail outdoor equipment stores, is scheduled to open in Lehi in late 2005. If built to plans, the store will house a 30-foot mountain replica, a freshwater aquarium stocked with native Utah fish and a museum with taxidermy exhibits and antique gun displays.
"I don't know if something like this has ever been done before (in Utah County)," said Utah County Commissioner Gary Herbert. "This is a unique circumstance in that we have the chance to get a museum in combination with a new retail unit."
Although county officials are waiting to sign the agreement until they receive more specific details regarding the museum's size and structure, it is expected that the agreement will be solidified quickly.
Once open, the museum will be free to the public.
Money that commissioners voted to borrow for Cabela's museum will be repaid through revenue generated by an expected increase in tourism to the area as a result of the store. Utah County commissioners estimate that Cabela's could bring in up to 4 million visitors a year, as well as create 400 new jobs associated with the store.
"It's a good way to promote revenue for the government for whatever needs you have so you don't have to tax the local residents," Herbert said of the arrangement to regain the money through taxes applied to tourists traveling through the area. Herbert said he expects visitors to come from out of state just to visit the popular store. It will be the only Cabela's in Utah.
Lehi city is also welcoming the superstore with open arms.
Although the city is prevented by legislative laws from offering incentives such as a refund on sales tax to the store, the city has agreed to issue a bond for building the infrastructure associated with the store.
The city has agreed to issue a bond of up to $9 million to provide roads and parking lots around the store, as well as providing power and water lines to the store. In return, the city will claim 87.5 percent of the sales tax generated by the store to pay back the bond.
City representatives estimate that it will take 20 years to repay the bond.
Lehi rarely gives incentives or bonds to businesses who want to come to the community. According to Ron Foggin, Lehi's finance director, exceptions can be made for an exceptional store. And Lehi's bond offer pales in comparison to incentives given to Cabela's by other communities, Foggin says.
"These folks do their homework, and they realize where a good place to put a store is and where it isn't," Foggin said. "Even though they didn't get all of the breaks, they're still willing to come here."
E-mail: achoate@desnews.com