Over the past decade, the elected officials of Eagle Mountain City have developed a master plan to bring data centers to Cedar Valley to build its tax base and spur focused economic development. Executing on this strategic vision has taken more than a year of dedicated effort, working together with the Governor’s Office of Economic Development, members of the state Legislature, the Economic Development Corporation of Utah and Utah County officials. Now, with the approval of official taxing entities and the enthusiastic support of local and state leaders, Eagle Mountain's first data center is on its way.
Eagle Mountain has been competing for this project with locations in other states, so the company behind it has not been disclosed. We have read phrases in the media like "details are sketchy" and "secretive business deal," but, to be clear, it is only the company’s name that is unknown at this time. All the other pertinent details of the deal, from the construction to the infrastructure upgrades to the offered tax benefits on the state and local level, are known and have been shared. In other words, everything about this project that representatives and officials needed to make an informed decision was a known quantity — this was not a deal done in secret.
Important conversations about this project are happening in public forums and media outlets, so we feel it is vital to set the record straight about key points where we have seen some misunderstanding:
The deal offers significant positive financial impact with a minimum of strain on the system
Eagle Mountain officials had many elements to balance as they studied the various industries the city could potentially attract to its high-growth area. For this young, tech-savvy community, they wanted to encourage industries that would experience future growth. But without a direct connection to freeways, and being in a somewhat rural area of the county, the city would not be competitive for very employee-heavy options, officials also knew. They ultimately determined that data centers were ideal for the city’s needs. A third-party study commissioned by the city confirmed their findings.
Project Steeplechase's data center is expected to employ 30-50 people full time, with potential for more contract workers. It is a very modest increase in employee head count that will not significantly impact local resources. Even with proposed tax incentives, Project Steeplechase will provide a net tax base of over $800,000 annually to entities like Eagle Mountain City — including over $500,000 annually to Alpine School District — with minimal increases to housing or student burdens. As it stands, the 490-acre parcel proposed for Project Steeplechase contributes just $66 in annual taxes. With this development, the taxing entities would see a 12,000-time increase in revenue without any significant strain on local services like schools, fire and police.
The project provides needed infrastructure for the area
Eagle Mountain City and the entire Cedar Valley need infrastructure to grow their tax base and employment prospects. There are opportunities to be found, as evidenced by Project Steeplechase's interest, but to bring in companies that can positively impact the tax base, hundreds of millions of dollars in development must first take place in the form of power, water, sewer and communications lines to the area.
Project Steeplechase has committed to shouldering the burden of these improvements by investing tens of millions of dollars to upgrade the local infrastructure, which will then be turned over to the city and the public utilities. Otherwise, the burden for those necessary upgrades will fall upon the citizens or upgrades will never be built.
The deal will help shape Eagle Mountain’s growth
Another concern is that Project Steeplechase will spur additional economic development, which will eventually overwhelm the resources and infrastructure of Eagle Mountain City. To be clear, everyone on all sides of this issue wants stable, sustainable growth and financial benefit for the area. But Eagle Mountain is growing already and will continue to do so. The problem is the residents are the only current source of a tax base, and there is no economic center, with no feasible way to pay for that growth. The citizens are shouldering the burden for all the taxes to run the city.
Bringing in Project Steeplechase and empowering Eagle Mountain to continue executing its master plan will assure that engaged, informed people are directing that growth. Eagle Mountain chose data centers because they have a low load on services but contribute significantly to the tax base. As other companies are attracted to the area by Project Steeplechase and the profile growth of Utah County, having the infrastructure already in place will give Eagle Mountain City much greater leverage in crucial future negotiations.
Many concerned citizens and public officials are asking why Eagle Mountain City isn’t inviting companies that don’t require tax breaks to occupy its valuable land. The concept sounds good — all benefit to the local taxing entities, giving nothing in exchange to the company — but is unrealistic. It presupposes that there is a long list of high-profile corporations that are willing to shell out hundreds of millions of dollars to move to semirural communities with no incentives at all. This deal benefits both sides, which is the fair and right thing to do. Without such a deal, the parcel in Eagle Mountain City will continue to contribute just $66 per year to the tax base.
Overall, Project Steeplechase is perhaps one of the most deliberate and well-researched economic development opportunities the state has seen in recent years. We applaud Eagle Mountain officials for having the vision to attract opportunities that will provide meaningful benefit to its residents and the entire state.