Sundance Mountain Resort broke ground on the forthcoming Inn at Sundance Resort, commencing a new era for the famed property. Projected to open in 2025-26, the new 63-room, ADA-accessible inn at the resort’s base village will satisfy a long-awaited need for the renowned destination Photo: Sierra Chamberlain

MIDA Executive Director Paul Morris said a new $390M bond will support private investment in an 'accelerated fashion' and subsidize resort infrastructure projects like roads, lifts, gondolas and workforce housing at Deer Valley's East Village.

While the recent public financing discussion from Deer Valley Resort came as a shock to Summit County tax payers, Wasatch County tax payers and hotel guests will be subsidizing millions in public infrastructure improvements where Deer Valley’s East Village will operate for 40 years from a deal struck with Utah State Military Installation Development Authority (MIDA).

The public comments in anticipation of the Snow Park public financing discussion overwhelmingly expressed strong opposition to the proposed Community Redevelopment Area (CRA), particularly criticizing the use of public tax dollars to subsidize a private equity-backed project. So much so that Deer Valley withdrew the agenda item from discussion just over 24 hours before the meeting. Many comments argue that Alterra Mountain Company, owned by KSL Capital Partners, has ample financial resources to fund the development independently and should not redirect tax revenues away from essential public services such as schools, fire protection, and infrastructure.

Just over the hill in Wasatch County, MIDA has issued $650M in bonds to finance resort infrastructure development in partnership with Wasatch County, Extell and Altera. MIDA Executive Director Paul Morris stated that current bonds have achieved a 6:1 private-to-public revenue ratio, with $6 of private investment for every $1 of public funding, equating to a 14.3% public contribution to the resort development project where Deer Valley’s East Village will operate. The bonds will primarily be paid off through tax collections within the MIDA project zone. The bonds will be used to fund infrastructure projects at the resort, including roads, parking lots, and portions of the new lifts and gondolas being installed.

MIDA builds resort public infrastructure with oversight from state-appointed board

Deer Valley’s East Village expansion, promoted as the largest ski resort expansion in resort history, will operate within a MIDA project area. MIDA, a state entity created in 2007, is empowered by state law and it assumes control over land use and planning decisions in these project zones. Extell is the developer and Deer Valley has agreed to a long term operating agreement to run a ski resort on the land being developed by Extell. MIDA is governed by an eight-member appointed board with powers to raise taxes, direct public funds, and make development planning decisions within the project zones.

Wasatch County manager Mike Davis spoke with KPCW in 2019 about MIDA taking over land use and planning decisions on the property that the Deer Valley East Village will operate on saying “Once we had agreed to the project area with MIDA, the state stepped in and somewhat forced our hand a little bit to allow MIDA itself to be the land use authority on everything west of the highway”

Deer Valley enthusiastically announced opening new lifts and terrain in the MIDA project area a full year ahead of scheduled this fall.

MIDA is designed to assist with development of military land or land that benefits military members. The Grand Hyatt Hotel being built in the project area will offer discounted rooms for military members.

Grand Hyatt Deer Valley under construction. Photo: Extell

MIDA will keep 75 percent of incremental increases in property value of the tax revenues from the resort for 40 years. Recent legislation also allows MIDA to collect up-to a 15% resort tax on lodging within MIDA zones as well as levy a .5% sales tax increase.

For example, a 2.31-acre undeveloped parcel in the MIDA project zone has a 2024 market value of $4,248,900 and a property tax of $64,305, with $50,386 allocated to MIDA.

MIDA states that the majority of these tax collections are reinvested into the project area for infrastructure projects. While Wasatch County will receive 25% of the incremental tax revenues, over 40 years, this arrangement will place hundreds of millions of tax dollars into MIDA’s state appointed board control.

The MIDA board unanimously approved a $390 million bond in October, adding to the $260 million in bonds approved in 2021. The new bond aims to expedite development of the East Village, with a similar 6:1 revenue contribution expected. Morris said “we want to support the private investment in an accelerated fashion”

Morris shared the list of public infrastructure improvements that the $390M incremental bond allocation would fund.

Project List:

Day Skier Dropoff/Escalator
East and West Side Trails and Recreational Facilities
Frontage Road (portion of)
Future Parking Structure (portion of)
Ice Ribbon
Operations and development of recreational improvements and governmental facilities on the east side
Lifts and Gondolas (portion of)
Magic Carpet (portion of)
Military Sensitive Compartmented Information Facility (SCIF)
Moderate Income/Workforce/Affordable Housing
Monument Signs
Mountain Sewer and Culinary Water (portion of)
Non-Culinary pumphouse and pumps
Mountain Improvements including roads and clearing
Phase 1 Global Resort Landscape & Flags
Plaza Deck and public area
Project Area Ski and Hotel Parking
Public Transit and Civil Improvements
Development and Operations; Jordanelle Parkway, Connector Roads, Portals, Parking, Stormwater, etc.
Regional Development and Associated Acquisitions
Retail & Commercial & Conference Facilities (portion of)
Skier Services Building (portion of)
Transit Center
Water Treatment Plant
Westside Mountain Improvements and MWR Conference Hotel Reimbursement

Utah County, Sundance Inn

Renderings of the new Sundance hotel. Photo: Sierra Chamberlain

In Utah County MIDA was involved in helping finance the new $35M lodge being built at Sundance Mountain Resort. The 63-room, ADA-accessible inn will serve wounded veterans and their families with all expenses paid. Shannon Sollitt with the Salt Lake Tribune reports that because the Inn is a MIDA project area, that gives the owners of Sundance — Storyteller Canyon Investments — access to lower-cost public financing. The inn primarily will hold Sundance Mountain Resort guests.

Ezra Nair, Utah County Administrator and Sundance PID board member, underscored the project’s significance in reinvesting tax revenues into meaningful community initiatives. “The collaboration and partnership among MIDA, Utah County, the state, and Sundance solve problems together,” Nair remarked.