Bill could create an “infrastructure bank”, allowing MIDA to contract loans for future projects
At the eleventh hour, the Utah legislature introduced a bill this would force state authorities to use state funds to borrow for future projects.
MIDA is the state authority that is building the Mayflower Resort next to Deer Valley in Wasatch County. It is one of three land use authorities in the state along with Inland Port and Point of the Mountain Authority.
To repay bonds for the construction of the infrastructure and ski lifts of the Mayflower development, MIDA uses tax increment collections. This type of financing uses increases in the appraisal of properties in the project area as guaranteed income to repay obligations over the next 40 years.
The bill introduced earlier this week would create a state bank to hold funds for the legislature. The public authorities could then contract loans from the bank to finance future projects.
Speaking at a Senate committee meeting, the bill’s sponsor Senator Jerry Stevenson – who is also a member of the MIDA board – said the loans would be returned to the taxpayer.
“These would be long-term loans and the bank would be pre-funded by the Utah state legislature,” he said. “And we have money earmarked in this latest bill that would allow the money to sit in that loan fund until the bankers or the loan committee figure out where it’s going and if it makes sense. . And it is a good direction for us to move forward with these authorities. “
The bill also creates a loan approval committee, which would be composed of members of the board of directors appointed by the governor, the speaker of the House, the president of the Senate and the chair of the Permanent Council of the Impact Fund. community.
Stevenson said the loans put in place by the bill are generally not taken out through a public process.
“But in terms of applying for a loan, why do they need a loan that would be determined at a public meeting – would be determined by their board of directors,” he said. “And then they would make that request. In effect, it builds a fence around those funds. It doesn’t hand over a block of funds to any of those authorities, they have to go through a process to access it.”
Kristin Williams is the communications advisor for the MIDA team. In an email, she said in order for MIDA to withdraw funds from the bank for a future project, they would have to prove that it would bring in income to pay off the loan. However, Williams says MIDA is not receiving or applying for a loan at this time.
The bill – which was presented to the legislature on Monday – passed through the Senate… passing the floor on Tuesday. He is now awaiting discussion in the House.