The money is to be repaid in 30 years at zero percent interest and combined with city and county funds. It will help construct a large steel building on six acres of city land near the ball fields and skate park.
As planned, the center will feature four full-sized basketball courts, a two-lane fitness track, aerobics room and cardio and weight room.
The city also has been pursuing an indoor lap pool and seasonal splash pool. The pools, which increase the total cost of the project to $5.5 million, were not included in the CIB funding proposal.
A newly instituted sales tax will provide the revenue for the city to pay the loan. It is estimated that the 0.35 percent sales tax will generate $175,000 per year. The CIB loan payment would be $133,333 per year.
The Community Impact Board awards grants and low-interest loans to cities, towns and counties impacted by mining and the extraction of oil and gas on federal land. Most of the money benefits rural Utah and is spent creating safer, more livable communities. The program is managed by the Utah Department of Community and Culture.