Draper's CRA backs medical office building at Lone Peak Hospital

DRAPER — The Community Reinvestment Agency approved a participation agreement on Tuesday, Sept. 1, with Nexcore Healthcare Development LLC for a medical office building on the Lone Peak Hospital campus on State Street, the Draper Herald reported. The board passed Resolution #CRA-26-05, which the Herald reported covers the project known as Lone Peak Medical Office Building IV 1.

The agency is considering tax increment financing from the Crescent Redevelopment District to reimburse Nexcore for project costs, and the specific dollar amount had not been made public, the Herald reported 1. The City Council packet posted for the same evening's meeting carries the council agenda, the Aug. 12 and Aug. 18 draft minutes and four council resolutions, and does not contain the agency's resolution or the agreement's terms 2.

The two public descriptions of the building do not agree. The Draper Herald described it as a three-story, 80,000-square-foot building at 11925 S. State St. expected to create about 150 medical jobs focused on oncology and orthopedics 1. NexCore Group's own leasing page describes the project as a planned four-story outpatient center spanning 116,000 rentable square feet on the southwest corner of the hospital campus at 11943 S. State Street, connected to a planned future hospital bed tower expansion by an enclosed pedestrian bridge, housing MountainStar Medical Group physicians along with independent, affiliated practices 3. Neither figure appears in the city documents reviewed for this story 2.

The Crescent district is one of Draper's six active Community Reinvestment Agency project areas, along with FrontRunner CDA, South Mountain CRA, Sand Hills RDA, East Bangerter EDA and West Freeway 2. Jason Burningham of LRB Public Finance Advisors told the City Council on Aug. 18 that the project areas' fund balances totaled almost $31 million combined and that the Crescent RDA "had the most flexibility" of the areas, in a discussion of whether its funds could be used toward an infrastructure project at Kimballs Junction 2. The Draper Herald reported that the agency's adopted fiscal 2026 budget directed $15.3 million in tax-increment funds across the districts 1.

The agency's board is the mayor and the five City Council members: Chair Mayor Troy Walker, Vice-Chair Councilmember Tasha Lowery, and Councilmembers Kathryn Dahlin, Mike Green, Bryn Heather Johnson and Fred Lowry, according to the city's own page for the agency 4.

The new building would join two existing office buildings and the Lone Peak Surgery Center on the hospital campus, which is part of the MountainStar Healthcare system, the Herald reported 1. No construction start date or projected opening has been announced 1.