Wasatch Group passed the first hurdle in construction of their estimated $14.7 million Logan Riverwalk business complex when they got the thumbs up from the Logan City Redevelopment Agency last Tuesday evening.
The Logan Riverwalk Development will include a 112 room, 1,500 square foot Marriott TownPlace Suites extended stay hotel.
Bracken Atkinson, vice president of Real Estate Development for Wasatch Group, said they studied the feasibility of the extended stay hotel and found there is room in the Cache Valley market for such a facility.
Wasatch Properties also plans to build three retail pads, each just shy of 5,000 square feet, matching the business pads at the adjacent Riverwoods Conference Center complex.
Also in the works is a Logan River restoration area that would clean up both sides of the river adding a walkway, bridges and a flood buffer zone. The walkway would match and possibly connect to the Logan City’s current trail system. Biowest Engineering is working on the Logan River improvements, Atkinson said. They now need to go to the city council and get their approval before going to other taxing agencies.
While they are waiting for the approvals, they are cleaning up the property by demolishing buildings and clearing the weeds and other debris from the area.
Cleaning up the area is expensive; Wasatch Group has to raze the buildings, clear the area and dispose any hazardous materials. The have to dig up all of the utilities and replace them. There are plans to take down all of the telephone poles and lines then bring in underground powerlines.
Atkinson said it will be a while before they start construction of their project.
Atkinson showed the estimated tax revenues from the project and said he thought it would be a positive investment for all the entities involved.
When completed, Wasatch Group officials estimate the current tax rate should more than double tax revenue for the city, county, and school district from what those entities were previously receiving from that area in Logan. Wasatch Group officials estimate tax revenues from property tax will go from $60,714 to $189,198. County tax revenues are expected to go from $8,358 to $26,045. School district tax revenues are projected to go from $42,874 to $140,634. Logan City tax revenues should go from $9,483 to $29,550.
Other benefits to Logan will be short term construction jobs. If the Logan Riverwalk complex mirrors what Wasatch Group’s Riverwoods complex has done, there will also be more permanent jobs.
Wasatch group is asking for a 15 year split of 70 percent developer investment and 30 percent taxing entity investment.