That takes us to item six, which is a need to recess to the community reinvestment agency meeting.

Is there a motion?

So moved.

Was that Bryn?

Yeah.

All right.

Motion by Brynn.

Second.

Jumping the gun on me here.

Okay.

Is there further discussion?

Brent, how do you vote?

Yes.

Tasha?

Yes.

Catherine?

Yes.

Yes.

Right.

We are now convened.

I'll call to order the uh community reinvestment agency meeting.

First item on our agenda is item two.

Item two A is the approval of the August 18th, 2026 community reinvestment agency meeting minutes.

And item two B is an action item, it's approval resolution CRA 2605.

It's a resolution approving a participation agreement with Nextcore Health Development LLC for the development of medical office building in the Crescent Redevelopment District.

I'm assuming we have some presentations for that.

Go ahead, Mike.

Yeah, just really quick.

So we're here asking for the city council to approve a participation agreement with Nextcore Healthcare Development LLC.

Ryan DeGear with Next Corps is present as is Mr.

Dobbins, who has acted as acted as their consultant and helped negotiate this participation agreement.

So Nextcore Health really quickly is a national health care real estate company that partners with local health care systems and they build uh new developments in communities that align with uh the local health care system.

They may be surgical centers, they may be imaging centers, office buildings, medical office buildings.

Um they end up being uh the owner, developer, and manager of their projects and contribute their own capital projects, meaning that they don't come in and just get the um uh an agreement done or get um the entitlements done, but they are in it for the long haul.

Um, and so we've um have started establishing a good relationship with Next Corps and their representatives.

Um so the the project they're proposing would be a three-story 80,000 square foot medical office building adjacent to Lone Peak Hospital.

Uh they project that they'll employ uh approximately 150 medical uh professionals uh and in that uh medical office building provide specialized health care, including cancer treatment and orthopedic care.

Um the benefits, excuse me.

Um actually there's a type where there should be 3.3 million dollars, but the crescent redevelopment district uh as part of the participation would contribute 3.3 million dollars uh towards the project, with the benefits to the city being uh spurring economic development in that area, uh providing high health excuse me, high quality health care options and creating high wage medical jobs.

Um our financial consultants um LRB did a uh analysis of the uh the CRA's contribution to the project and the benefits that the city can anticipate receiving and um the the benefits flowing back towards the city are are many multiples, if you will, of of the 3.3 million dollar investment uh or incentive um, and that includes increased property tax, uh sales tax, uh, tax on personal property, as well as the creation of of the the uh highwood high paying jobs.

Um and so there definitely is a a good return on investment as as we found quite frankly in other CRA projects.

Um currently the CRA uh the Crescent Redevelopment District has approximately 7.3 million dollars available for qualifying projects.

Um there are three different benchmarks uh the next core has to meet in order to be eligible to receive uh payment.

Uh the first is uh 1.3 million dollar payable upon the closing of the construction loan.

Um I go back to the slide earlier that mentions that that next core owns, operates, and and is involved in in uh the office building on a long-term basis, and I specifically asked about this particular provision.

And upon closing the construction loan, there are uh obligations that they have both to their prospective tenants as well as their equity partners.

Um so they just can't walk away from this this deal with you know 1.3 million dollars.

Um feel I feel comfortable uh with that provision.

Uh the next payment would be in the next fiscal year, which would be payable upon the issuance of a building permit and a proof of uh three million dollar in development expenditures.

Um they provided information to me so far, and I think they're in more than two million dollars so far in uh on this project.

So they're well invested uh to this point, uh, even before we've got this participation agreement in place, and then the last payment of 700,000 would be paid payable upon the issuance.

Uh there's there's three portions of this the uh certificate of occupancy for the structure core and building shell, uh the first tenant receiving a certificate of occupancy and then proof of creation of 30 medical professional uh full-time employment or FTE equivalents uh earning at least 96,000 dollars a year.

So based on on the analysis of LRB and these benchmarks, which um I think next corps can achieve in the next two or three years.

I think this will be a project that will benefit not only the Crescent uh district, but as well as as the city by really bringing more services, uh specialized medical services to our residents without having to you know go all over the valley and other places.

So I think there's a lot of upside to this agreement.

So if you have any questions or if you have any questions for uh next core, um happy to entertain those.

I just have a question if there's any infrastructure that might need to be improved or or replaced because of this development.

Will that um that's 3.3 million?

Will any of that go towards that?

I don't think well I did they may have infrastructure improvements on site.