Many untruths still exist about the pending move of action Target.
Myth: Action Target is the recipient of Corporate Welfare.
Fact: No tax incentive of any kind was offered to Action Target to make the move. Full property tax has been paid by Action Target at its current location and full property tax will be paid at the new location. No waving of any fees was offered to Action Target. Action Target has paid the City $173,000 in impact and other fees associated with their new building.
Myth: Provo resident are losing money in the purchase of the current Action Target land.
Fact: The City of Provo purchased our current land from us for appraised value. This appraisal also included estimated move costs. Although in similar situations, the municipality would typically be responsible for all the cost of relocating such a business, Action Target volunteered to shoulder the bulk of the cost, saving the City hundreds of thousands of dollars it might otherwise have had to spend. The appraisal was conducted in 2006 but the property was sold in 2007. During this year property values increased at a substantial rate but no allocation of funds were made to Action Target for the possible increased value. As a result of this purchase the City was able to complete a long awaited road connection, resale a portion of the property to a separate local business allowing them to expand and improve their business and resale a portion to the Neighborhood Housing Authority which will build a much welcomed development in the Dixon neighborhood.
Fact: In a separate transaction, approximately 10 acres of land was purchased by Action Target from the City in the Mountain Vista Business Park for market value. This also included an option to purchase an additional 10 acres with the intent for Action Target to expand and bring additional businesses into the Park and the City of Provo.
Fact: Action Target received favorable payment terms from the City for the purchase. These terms were used by the City to attract the first tenant to the business park and were offered to others but Action Target was the first company able to take advantage of the offer from the City. The terms offered were 10 years of no interest or payments on the property.
Myth: Tax-payers funds are at risk with the move.
Fact: After the purchase, Action Target incurred a sizable expense due to additional work needed at the site. Although the City did as much as they could to mitigate the costs, they were unable to totally cover the costs. In an effort to show good faith and our commitment to stay in the City, Action Target decided to proceed with the sale at an additional unforeseen cost to Action Target.
Myth: Action Target contributes little to the economy of Provo.
Fact: The Action Target owners, of which I am one, have made a monumental commitment to Provo by building their new facility in Provo. Each owner has taken on personal guarantees to finance the building and contributed significant equity. As a result a piece of non taxable property was changed to yield property tax based on an approximate $12,000,000 value. In addition 150 jobs will stay in Provo and $40,000,000 of goods, services and payroll will be purchased and spent in Provo that might otherwise be purchased in another City.
Myth: The City financed the building for Action Target
Fact: The building was financed by Action Target with an IRB (Industrial Revenue Bond). The process required the City to sponsor Action Target but in this process the City assumed no liability or risk.
Myth: Provo City was not involved in the win-win situation.
Fact: The mayor, his staff of the City worked very hard with Action Target to find a resolution that has benefited the City, Action Target and their old neighborhood. This was a win win for all entities especially the good Citizens of Provo.
