The Utah Inland Port Authority (UIPA) has successfully closed the sale its Crossroads Public Infrastructure District Tax Differential bonds, securing $150 million in funding for public infrastructure. The board said the bonds were well-received and generated investor orders roughly five times greater than the amount of bonds available.
“This offering demonstrated the need for problem-solvers to address the supply chain challenges we’re facing,” said Jill Flygare, executive director of the Utah Inland Port Authority Crossroads Public Infrastructure District. “There is a huge opportunity to enhance logistics in Utah, and it is exciting to have so many national investors who want to be part of what we’re doing.”
Investment banking firm Piper Sandler’s Special District Group was the underwriter of the transaction. The investor demand led to a lower interest rate, allowing the UIPA to save nearly $17.5 million in interest costs compared to the originally anticipated rate, Flygare said.
“We’re thrilled by the investor response and encouraged to see so much interest in supporting sustainable development that will facilitate job growth, reduce traffic and improve air quality within the Utah Inland Port jurisdictional boundaries,” said Benj Becker, vice president of the Piper Sandler Special District Group. “This deal represents important manufacturing and distribution job creation, removing diesel trucks from our roads and providing critical infrastructure to alleviate supply chain constraints and further the improvement of Utah quality-of-life characteristics.”
The bond closing gives UIPA approximately $112 million in revenue to kick off proposed projects, including a planned transloading/cross-dock facility. The facility aims to leverage existing infrastructure and Union Pacific’s intermodal rail hub to provide a cost-effective, efficient and sustainable option for cargo owners to move freight.
UIPA said proceeds of the bonds may also apply to the acquisition of rail infrastructure and rail expansion, a Foreign Trade Zone (FTZ) and U.S. Customs facility, and to support telecommunications infrastructure as part of UIPA’s Intelligent Crossroads Network. These projects give greater access for the logistics industry, while also enhancing livability, reducing air emissions associated with idling cars, and deconflicting at-grade railroad crossings, the board said.
UIPA’s board created the Crossroads Public Infrastructure District (PID) in October as a funding mechanism for publicly owned infrastructure within UIPA’s jurisdictional area in the Salt Lake Valley.