1. Created by Way Development Ventures as a public service The following presentation provides background information to assist voters in gaining an understanding of the Carousel issue in St. George, Utah

2. Created by Way Development Ventures as a public service In order to understand the issue of the carousel, it is necessary to first understand redevelopment in a city.

3. Created by Way Development Ventures as a public service Redevelop, in a word, is quite simple to explain. Older or transitioning developed areas of a community may experience Blight. Redevelopment applies specially designated funds to eliminate the blight and revitalize the area.

4. Created by Way Development Ventures as a public service Blight may be broadly defined as an area that (a) (i) contains buildings or improvements used or intended to be used for residential, commercial, industrial, or other urban purposes, or any combination of those uses;

5. Created by Way Development Ventures as a public service Blight may be broadly defined as an area that (a) (ii) contains buildings or improvements on at least 50% of the number of parcels of private real property whose acreage is at least 50% of the acreage of the private real property within the proposed redevelopment project area

6. Created by Way Development Ventures as a public service Under Utah Code 17B-4 communities are allowed to establish Redevelopment Agencies (RDAs). RDAs are given certain authorities to designate “project areas” and generate revenue to eliminate blight within that area. (please note that there are detailed aspects which are not addressed in this presentation. These are general explanations.)

7. Created by Way Development Ventures as a public service Through special agreement among taxing entities (City, School district, County, and special districts) a Tax Increment Financing, TIF, agreement is established. (please note that there are detailed aspects which are not addressed in this presentation. These are general explanations.)

8. Created by Way Development Ventures as a public service Tax Increment Financing pretty straight forward. When an improvement is made to property, in a designated development area, the property value increases.

9. Created by Way Development Ventures as a public service When an improvement to property increases its value, the difference between the last value and the new value is an increment al improvement in value.

10. Created by Way Development Ventures as a public service Once the terms of the TIF agreement have been met the remaining tax increment (real money) goes into a separate special fund for the RDA.

11. Created by Way Development Ventures as a public service The special fund for the RDA may only be used for eliminating blight, in the project area (remember this is a designated area, not the entire city).

12. Created by Way Development Ventures as a public service On June 16, 2011, the City Council approved all of the Budget Openings for the City’s total budget, one of which was an amendment to the 2011 fiscal year Redevelopment Agency budget in the amount of $310,000 for the carousel.

13. Created by Way Development Ventures as a public service Of the $310,000 approximately $275,000 was for the purchase of the Actual Carousel. The balance was to be used for amenities associated with installation of the Carousel, including the fence.

14. Created by Way Development Ventures as a public service Due to the proximity to the end of the City’s fiscal year, June 30 th, some expenditures associated with Carousel will be accounted for in each budget year Fiscal Year-2011 and Fiscal Year-2012.

15. Created by Way Development Ventures as a public service Payment on the Carousel occurred in two payments: June 23--$100,000 June 28--$170,000 The Council approval was enacted within the RDA Budget amendment of June 16 th.

16. Created by Way Development Ventures as a public service The money used to purchase the Carousel came from the TIF (Tax increment) generated in the Downtown Redevelopment funds. The Downtown Redevelopment Fund contains monies from the tax increment from an approximate 14 block area of downtown St. George.

17. Created by Way Development Ventures as a public service It should be noted that those funds could only be used for redevelopment efforts within the 14 block area.

18. Created by Way Development Ventures as a public service The funds came from account number 42. 4200.730. 42 = Redevelopment Agency Budget. Not the General Fund. 4200 = and expense account for Capital Expenditures 730 = the object of the expenditure, which is named “Improvements”

19. Created by Way Development Ventures as a public service The money used to purchase the Carousel could not be legally used anywhere else in the city, for any purpose.

20. Created by Way Development Ventures as a public service With the use of the money confined to those 14 blocks the question arises, “could those funds have been used for other projects?”

21. Created by Way Development Ventures as a public service The answer to that question is “certainly”. There is a wide array of opportunities to use those funds for other purposes. However, that is with limitations

22. Created by Way Development Ventures as a public service The downtown redevelopment area was established in in 1974, as a three block area.

23. Created by Way Development Ventures as a public service In 1978 an Interlocal Agreement among the effected agencies (city county, school, et al) was reached that among other things: 1. Expanded the redevelopment are for 3 to approximately 14 blocks. 2. It added eight years to the original redevelopment area (ending in 2015).

24. Created by Way Development Ventures as a public service Of significance is that the 1978 revision also constrained the use of the funding to: Town Square, Waterwalk, and Parking lot construction, improvements, and maintenance

25. Created by Way Development Ventures as a public service In 2004 the City conducted, though a consultant a community input session, known as a charrette, where citizens from all areas of the city could provide input about the future of the downtown area.

26. Created by Way Development Ventures as a public service Among the various desires of the community (including more retail, restaurants, and outdoor dining) the residents indicated a desire for an interactive water feature and additional gathering places with attractions.

27. Created by Way Development Ventures as a public service At a master plan update session, (minor similarities to a charrette), concern was raised that the downtown remained non- competitive with other commercial areas of the city.

28. Created by Way Development Ventures as a public service At a master plan update session, (minor similarities to a charrette), concern was raise that the downtown remained non- competitive with other commercial areas of the city.

29. Created by Way Development Ventures as a public service Since 2004 much has been done to improve downtown St. George. Until moving here a year ago I have visited family and friends regularly and have witnessed the steady improvements.

30. Created by Way Development Ventures as a public service With a few exception it appears (no scientific survey here) that most residents don’t object to a Carousel as a gathering place in the downtown. The questions arise as to whether the City Council acted too hastily in the purchase or was the purchase unwise due to the economy.

31. Created by Way Development Ventures as a public service Both of those concerns are personal perspectives of interested individuals. What we can ascertain is that based on state law and the existence of the RDA Downtown Project Area, the Carousel was a legitimate purchase made consistent with the long-term desires of the residents expressing their opinions in 2004.

32. Created by Way Development Ventures as a public service This short presentation is designed to demonstrate the unique aspects of the transactions of using RDA Funds for purchase which are not readily available to general public. This presentation is not intended to imply endorsement of any candidate for public office, rather it only for the purpose of general information about the purchase of the Carousel.