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South Valley Journal

Herriman’s incoming Anthem Commercial Center snags WinCo

Apr 02, 2019 01:44PM ● By Travis Barton

The property where WinCo is estimated to begin construction in July, just off Mountain View Corridor at approximately 11900 South, across from JCW’s. (Travis Barton/City Journals)

By Travis Barton | [email protected] 

WinCo is coming to Herriman. 

Herriman City Council took major steps for the city’s planned Anthem Center on Feb. 27 when it voted unanimously to approve a series of agreements that will make WinCo the center’s anchor tenant. 

The Anthem Commercial Center is a planned 50-acre project slotted for the area between Mountain View Corridor, Anthem Park Boulevard and Herriman Main Street. 

But in order to move forward with the project, the development needed an anchor tenant—a large, often brand-name business such as a department store or retail chain. Anchor tenants generally attract other smaller companies to the area. 

“Getting these anchor stores is critical to making these [centers] work,” said Assistant City Manager Gordon Haight during a Feb. 27 work meeting. 

Some residents on social media expressed excitement about WinCo setting up shop in Herriman. 

Initially, Walmart had submitted building plans in 2016 but eventually abandoned the project, requiring city leaders and the developer to find a new anchor tenant and buy back the 18 acres owned by Walmart—which had until the end of 2018 to begin building a store. Once that ended, the developer could repurchase the land. 

WinCo, meanwhile had expressed interest in the area but were already under contract for another property in South Jordan. 

Herriman officials, as part of the agreements, agreed to waive certain water and transportation fees to incentivize WinCo to relocate to the city. Those fees will be reimbursed from property tax TIF (tax increment financing) generated by the project area over time. 

According to city documents, the WinCo development—an 82,500-square foot-WinCo grocery store—will recapture some of the sales tax leakage and provide additional revenue to the city, lessen dependence on property taxes and increase its point of sale sales tax. 

While there are large sums of money interchanging between Herriman City, the redevelopment agency, the Anthem Development and WinCo—some to the tune of $300,000 for Anthem impact fees or $400,000 for WinCo impact fees—Councilwoman Nicole Martin said the city is made whole at the end of the day. 

“And more importantly, this is money that we’re shifting back and forth that doesn’t even materialize but for the development itself,” she said during the Feb. 27 city council meeting. “It’s not coming out of our existing coffers.” 

Funds must be spent in the area for infrastructure and improvements, Councilman Jared Henderson said during the meeting. “It’s not enriching these companies,” he said. 

“We’re not encumbering ourselves; we’re not indebted in any way,” Henderson said. “Everything is based on the performance of the commercial development.” 

Martin said it is a large benefit that comes from their partnership with the developer, John Gust, who estimated work on the WinCo would start in July. Gust said a demographic report that showed the area was “ground zero for growth” pushed WinCo to get out of its contract with South Jordan. 

“We take great pride in sticking with you guys,” Gust told the Herriman City Council. “It’s taken a lot of time and a lot of effort.”