HomeMy WebLinkAboutCouncil Provided Information - 12/9/2025Page | 1
2
5
8
7
6
COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM:Nick Tarbet, Policy Analyst
DATE:December 9, 2025
RE:Tax Equity and Fiscal Responsibility Act Public Hearing for Sky Harbour Hangar Development
NEW INFORMATION
The Council did not raise any significant concerns or questions about the proposal. The public hearing is set for
December 9.
The following information was for the December 2 work session briefing. It is provided again for background
purposes.
ISSUE AT-A-GLANCE
The Council will receive a briefing on the Sky Harbour hangar development on the east side of the Salt Lake
City International airport that consists of the development of an aircraft storage facility situated on 8.4
acres and will include 4 box hangers, approximately 160,000 square feet.
The project would be funded through a tax-exempt private activity bond (PAB) issued by the Public
Finance Authority of Wisconsin, in an amount not to exceed $95,000,000. Federal regulations for tax-
exempt PABs require the Council to hold what is known as a TEFRA (Tax Equity and Fiscal Responsibility
Act) public hearing on this proposal. No other Council action is required. After the public hearing the
mayor may sign a public approval certificate for SLC Development LLC to receive bond proceeds on a tax-
exempt basis to finance the project.
The development entails no financial liability for Salt Lake City. The City will not issue the bonds or assume
any financial liability. The public hearing for these types of bonds is required by Section 147(f) of the
Internal Revenue Code of 1986, as amended.
The hangars would be available to any tenant who wants to lease hangar space at the airport. The
transmittal letter notes the development will increase revenue to the airport in the form of ground rent,
Item Schedule:
Page | 2
2
5
8
7
6
fuel flowage fees in addition to increased property taxes, aircraft ad valorem, county fuel taxes and new air
sales and use taxes.
POLICY QUESTIONS
The Council has previously held a TEFRA public hearing for the Paxton Ave affordable Housing
project on October 7, 2025. At that briefing the Administration noted they are in the process of
developing parameters for TEFRA proposals because there is a substantial amount of
uncompensated administrative effort associated with them. For example, there is a substantial
amount of coordination between the City’s Finance Department, bond counsel and the requestor’s
bond counsel on the proposed changes to the documents as well as timing of the hearing.
o The Council may wish to ask the Administration for an update on the creation
of that policy.