Provo’s Millrace Development forms operating company
A nighttime rendering of Millrace at Provo Station looking north toward the Provo City Center Temple. Courtesy Justin Earl
Walking paths and connector bridges are featured in this rendering of the new Millrace at Provo Station development. Courtesy Justin Earl
Millrace at Provo Station will feature two towers. The north condominium tower will be 13 stories. The south office tower will be 14 stories. Courtesy Justin Earl
This Millrace rendering shows cut-back corners to help add public green spaces rather than 90-degree angles. Courtesy Justin Earl
It may be a small thing, but the Provo Municipal Council is expected to authorize an amendment to the participation agreement with Millrace Partners, which is redeveloping a blighted block in the city.
The Redevelopment Agency (RDA) previously approved an Owner Participation Agreement with Millrace Partners to develop an office tower, condominiums for sale and apartments for lease on the former IFA property on a block north of the Provo Utah Transit Authority Intermodal Hub.
The development also will include meeting space and structured parking.
Noting the property is also in a federal Opportunity Zone, owner Justin Earl and Millrace Partners have created Millrace Operating Company, LLC, which is a subsidiary of, and completely controlled by, Millrace Partners, LLC.
As is customary for development projects, passive investors are brought in to provide equity capital needed to develop the parcel in a subsidiary.
Additionally, the parcel is located within a “qualified opportunity zone” so certain structural accommodations need to be put in place at the advice of tax counsel in order to qualify for those benefits and develop out the area in line with the RDA’s vision, according to the council agenda.
But the qualifications and identity of the participant have not changed at all, given that Millrace Partners controls Millrace Operating Company.
The Millrace project was approved by the Planning Commission just about two years ago.
The project will rezone the block between 500 and 600 South and 100 West to University Avenue to make way for the new Millrace at Provo Station development, a multi-building high-rise condominium, apartment, business and church development.
During the April 10, 2019, meeting of the commission, Earl of the J.B. Earl Co., made a presentation on what will be at the old IFA block, as it is often called.
The north high-rise condominium tower will be 13 stories and the office tower to the south will be 14 stories. Three other apartment buildings, a parking terrace, some retail and a newly designed urban LDS Church are anticipated to be built in three phases.
“It will be the first condo high-rise in Utah County,” Earl said.
Amenities will include a pool, hot tubs, clubhouse, plaza and fitness center, reception center, possible restaurants and a pet wash area and pet park, according to Earl.
The Millrace at Provo Station will be directly north and across from the Provo Central Station intermodal hub.
Since that presentation and the arrival of COVID-19, it has been requested that a moderate change be made to the development and the speed at which it will be completed. However, the competed project will be the same.
UTA also has presented its conceptual drawings of the 500- to 700-unit mixed-use housing development and food truck park on the intermodal property.
There is also a 400- to 500-unit development from 300 to 400 South.
If all goes as planned for the three developments, that will be about 1,500 units.
If percentages stay where they are, then it is expected that approximately 82% of the development’s tenants will be members of The Church of Jesus Christ of Latter-day Saints. That is a hefty growth problem. Add the UTA development and 300 South development and there is potential for almost a full LDS stake.
Representatives from the LDS Church have met with Earl to consider a new urban style of church offering. They anticipate three church units or wards at the development location. The church chapels and classrooms would be onsite on possibly two floors.
“This is an exciting proposal, with many intriguing aspects,” said Dave Harding, then-chairman of the Provo Municipal Council at the 2019 presentation. “It would be a very big deal for this part of Provo, and the council needs to carefully consider the potential outcomes.”
Residents are invited to watch and participate remotely in council meetings via Provo’s YouTube channel and Facebook live remotes. The work session begins at noon with the regular session starting at 5:30 p.m.
