Ogden officials plan to sell bonds today for downtown rec center

Article Last Updated: 11/29/2005 01:53 AM

Ogden officials plan to sell bonds today for downtown rec center
Costly: Opponents say the poor won't be able to use it
By Kristen Moulton
The Salt Lake Tribune

Salt Lake Tribune

Ogden city officials should have $16.2 million in hand by this afternoon to begin building the high-adventure recreation center.
David Harmer, Ogden's community and economic development director, said the city expects to sell bonds to raise that amount by the end of today.
A groundbreaking ceremony is planned in December for the $18.5 million recreation center. Besides the bond proceeds, the city is using a $2 million federal HUD loan and property taxes from another development project to pay for the center.
City administrators hope the rec center will be a magnet for retail shops, movie theaters, restaurants, offices and condominiums in the project that will replace the failed Ogden City Mall in the heart of downtown.
Besides a Gold's Gym, Fat Cats family entertainment and restaurants, the rec center is to have simulated sky diving, wave riding and rock climbing.
Opponents of the center argue Ogden's low-income residents will not be able to pay the prices charged by the for-profit operators, and they objected to the fact the city's revenue stream from the successful Business Depot Ogden park could be tapped if other sources of bond repayment fail.
The City Council, however, approved the project last week on a 5-2 vote.
Harmer said the construction agreement with R&O Construction is expected to be signed this week, and the costs will be nailed down within the next two weeks.
Concrete, steel and lumber prices have been rising, but Harmer said the final costs should be in line with projections. “We estimate we'll be OK,” he said.
A date has not yet been set for the groundbreaking.
The City Council, acting as the Redevelopment Agency Board, also is expected to approve a development agreement in December with The Boyer Co., which will build out the remainder of the 21-acre old mall property.
Among the tenants Boyer has lined up is Jazz owner Larry H. Miller, who plans an 11-screen cinema complex with restaurants.
Two of the three series of bonds being sold today will raise money for the rec center. The third will raise $22.4 million, most of which will be used to refinance the costs of buying and demolishing the old mall. Those bonds, series C, will have a fixed rate of 6.6 percent for at least 10 years and are to be repaid over 20 years.
The series A bonds, which will raise $7.3 million, are tax-exempt and will have a floating rate beginning at about 4.75 percent. Those are to be repaid over 20 years with property taxes from 10 previous redevelopment projects.
The series B bonds, which will raise $8.9 million, will have an interest rate of 5.7 percent for at least 10 years, and will be repaid with the rent charged businesses that operate the rec center. Those are 25-year bonds.
kmoulton@sltrib.com