Draper's redevelopment agency approves a reimbursement deal for a Crescent medical office building

Draper's Community Reinvestment Agency approved a participation agreement on Sept. 1, 2026, under which it would reimburse part of the cost of a new medical office building in the Crescent Redevelopment District, according to the agency's packet and meeting recap. ^[1][2]

The project

A Sept. 1 memo from City Manager Mike Barker describes the project as Lone Peak Medical Office Building IV, "a three (3)-story medical office building" of "approximately 80,000 square feet." It says the building is anticipated to employ "approximately 150 medical professionals." ^[1]

The memo says the agency will reimburse "a portion of the costs" and that Title 17C of the Utah Code authorizes the use of tax increment for such purposes within the district. It recommended approval of Resolution CRA 26-05. ^[1]

The resolution approves the agreement with Nexcore Healthcare Development LLC and says reimbursement is subject to the terms and conditions in the agreement attached as Exhibit A. ^[1]

The vote and the agreement

The agency's Sept. 1 recap lists the minutes of the Aug. 18 meeting and Resolution CRA 26-05 and records: "Items were approved 4-0." The recap says it "does not constitute the meeting minutes" and that final minutes will be available once adopted by the board. ^[2]

The packet's participation agreement, scanned as page images, says total reimbursement by the agency shall not exceed $3,300,000, paid from funds the agency is holding for the district. All payments depend on verification of actual eligible capital expenditures, compliance with the agreement and the availability of unobligated funds in the district. ^[1]

The maximum payments are $1.3 million for fiscal 2026-27, $1.3 million for 2027-28 and $700,000 for 2028-29, each due after a milestone is verified. The first follows the closing of the developer's construction loan. The second follows a building permit and verification of at least $3 million of eligible project expenditures after the lease is executed. The last follows a certificate of occupancy for the core and shell, completion of the first tenant's improvements with a final certificate of occupancy, and the employment condition. ^[1]

That condition requires the developer or its tenants to have created and be maintaining at least 30 full-time medical professional positions earning at least $96,000 a year. The developer would verify them with certified employment reports and payroll records to the extent available through commercially reasonable efforts. If fewer positions or a lower average wage are reported, the year's payment not yet paid would be reduced by the percentage shortfall. ^[1]

The agreement says the only source of the reimbursement is tax increment already collected and held by the district. It says the obligation is not a general obligation of the city. The execution fields for the developer and the agency chair, and the attorney and recorder lines, are blank in the packet copy. The 30 positions in the condition are not the 150 professionals in the staff memo. ^[1]

The Crescent area

The agency's 2026 annual report lists the Crescent area's expiration year as FY2032. ^[3]