A large development project encompassing housing, retail and a new grocery store could be in the future for Lehi’s Traverse Mountain area.

During its March 18 meeting, the Lehi City Council greenlit a tax increment financing agreement, or TIF, for the development of what’s being called the Morning Vista Community Reinvestment Project Area.

The proposed Lehi mixed-use village could create a community-centric area just north of Timpanogos Highway along Morning Vista Boulevard in the heart of the city’s technology corridor with 35,000 square feet of groceries, 70,000 square feet of retail and 30,000 square feet of patio space.

Matt Swain from Perry Homes, the developers at the helm of the project, said they partnered with CenterCal Properties, which developed Station Park in Farmington and The Village in Riverton, to create a similar experience in Lehi.

“They really specialize in creating community and gathering space, and that’s really what we wanted to accomplish here — kind of in the heart of the east side of Lehi and accommodating the massive growth and investment that’s happening along (state Route) 92, ” Swain said before the City Council ahead of the presentation.

The project aims to span 24 acres of retail with “fine dining” a “high-end grocer” and 5 acres of residential space, allowing for 285 units, 11 of which would be designated for affordable housing, according to the proposal.

Under the agreement, the Lehi Redevelopment Agency would allocate 100% of its share of sales tax revenue to the developer for the first eight years of the proposed project, then 80% for the next four years, followed by 60% for another three years, with payments not exceeding $7,927,672 over the 15-year period.

Not everyone on the City Council supported the idea of Lehi doling out $8 million in tax subsidies to the developer.

“Personally, what I see is — it’s not a great benefit for the residents of Lehi,” said Councilwoman Michelle Stallings, who raised numerous concerns about the proposal during the meeting, including the overall impacts on citizens, traffic and financial implications.

“I’m not willing to give up $8 million of tax revenue for our city just to get a restaurant for tech executives,” Stallings added.

Resident Rob Ludlow, who lives in the Traverse Mountain area, shared similar feelings and criticism of the developer.

“I think it’s just good to realize that we’ve got somebody coming back that has been given the golden plate and is now asking for $8 million of additional tax subsidy, and I think the city really needs to hold them accountable,” Ludlow said before the council.

Lehi Economic Development Director Marlin Eldred clarified that the $8 million would likely come from future tax revenues.

“I just want to be clear that the $8 million we’re talking about is not coming out of our current coffers. We’re not writing them a check from our bank accounts,” Eldred explained.

He also noted that the city would reap the benefits of the project in the long run by receiving $20 million in franchise tax, followed by the continued tax base after the first 15 years.

Other council members and Mayor Mark Johnson acknowledged Stallings’ concerns but expressed support for the project.

“I also think that there’s going to be opportunities along the way to perhaps gain things as part of this development that would not otherwise be there. I’m hopeful of that,” Councilwoman Paige Albrecht said.

A revolving question during the portion of the meeting that extended well beyond 1 a.m. was surrounding the intended grocery store for the potential future complex.

A press release issued in March by Mountain West Commercial Real Estate alluded to Whole Foods, but Swain wouldn’t confirm or deny that claim.

“So if Whole Foods is listening, we never said that formally and haven’t announced it,” Swain stated before the city council. “We know that their name has been dropped in some media. But anyhow, that’s our formal statement, and we’re sticking to it.”

Ultimately, the city council voted 3-1 in favor of the tax break, bringing the project one step closer to fruition.

Eldred said the project would still need to go through a developmental process for the tax revenue backing, followed by a traffic study.

If the plan goes through, Swain said the development would likely take at least two years to build out.