• Nephi City deeds surplus property to Horizon Metals in exchange for public easement railroad spur

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By Myrna Trauntvein
Times-News Correspondent

Horizon Metals wants to expand and would like to use city property to expand but have agreed, in exchange, to have a public easement railroad spur on the property.

A resolution indicating that the needed property owned by the city was surplus and could, therefore, be disposed of was passed and adopted at city council meeting on Tuesday and Mayor Glade Nielson was authorized to sign it.

For a couple of years now, the city has been negotiating an agreement with Horizon Metals in the industrial park to maintain access to a nearby rail spur.

“The city currently owns two parcels of land to the south of Horizon Metals and to the north of NRP,” said Seth Atkinson, city administrator.

Atkinson showed a picture of the two pieces of property which are currently in the city’s possession.

The original intent of the agreement with Horizon Metals was to create a road and utility easement around the edge of the Horizon Metals property to provide access to the rail spur, said Atkinson.

The city, in return, would transfer these two properties to Horizon Metals so they could eventually construct a new building.

An agreement was signed to this effect in August of 2017.

Horizon is now ready to construct their new facility.

“We have been at work trying to determine where the easement for the access road should be placed,” said Atkinson. “It has now been surveyed and agreed to by both parties.”

The roadway easement was reduced from 40-feet to 20-feet on the spur, because, said Atkinson, at 40-feet it encroached on the sidewalk.

“Is there room for an 18-wheeler to turn?” asked Justin Seely, council member.

Ed Park, city streets superintendent, had been to the site and had done the measurements, said Atkinson. Park had determined that there was plenty of space for an 18-wheeler truck to turn.

The agreement signed by the city and Horizon Metals last year, a draft agreement to transfer the property, along with an exhibit showing the parcel numbers, and a survey exhibit showing the future access road alignment were presented for council consideration and were all reviewed.

In Title 1, Chapter 12 of the Nephi City Code, it specifies that real property disposal must have a hearing to provide public input. However, this applies to properties with a fair market value of $100,000.

“It is unlikely that the two parcels owned by the city equate to $100,000 or more,” Atkinson said. “To support this assertion, copies from the tax assessor are also provided showing that the land value for both parcels is around $40,000.”

Although a public hearing was not required, council action was required to declare the property surplus. Resolution 05-15-18-A had been prepared to accomplish this purpose, he said.

The city has worked with Horizon Metals for some time in order to come to this agreement consistent with the council direction given to preserve access to the rail spur.

“The value and popularity of a railroad spur comes and goes,” said Neilson. “My only item to clarify is who maintains the right of way?”

Kasey Wright, city attorney, recommended that the council add the wording, as they made the motion to approve, that Horizon Metals would maintain the road.

“It will, likely, be a packed gravel road,” said Atkinson.

The city developed the Nephi Industrial Park Subdivision for the purpose of facilitating economic development and job creation in the community.

Over time, the city has sold real property to private parties that have developed businesses there and Horizon Metals, Inc. is a custom foundry operating in the Park.

A portion of the property is located in front of NRP. Atkinson said that NRP had indicated that they had no interest in obtaining that piece for their use.

In both the resolution and in the agreement it states that, in order to expand, Horizon desires to purchase from the city certain real property the city owns. The city, in turn, desires to sell to Horizon the property.

It further states that the city, likewise, desires to obtain from Horizon a utility and road easement over Horizon’s property, that Horizon desires to grant the city a utility and road easement over its property in exchange for the city selling its property.

It was also agreed that the city had determined that it was in the public interest for the city to dispose of the property.

“It does help with economic development and job creation,” said Kent Jones, council member. “It sounds like a win/win to me.”

The staff recommended proceeding with the agreement and allowing the land transfer to Horizon Metals, Atkinson said.

Since the property does not constitute a significant parcel because it has a fair market value of less than $100,000, and the city has the authority to dispose of it, it was agreed unanimously by the city council that the property be deeded to Horizon.