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S.B. 184

             1     

REDEVELOPMENT AGENCY AMENDMENTS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Curtis S. Bramble

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies provisions of the Redevelopment Agencies Act.
             9      Highlighted Provisions:
             10          This bill:
             11          .    modifies membership on the taxing entity committee;
             12          .    provides for one taxing entity committee per county, with some standing members
             13      and other members who serve if the project area is within the boundaries of the
             14      entity they represent;
             15          .    requires the taxing entity committee's approval before an agency may commission a
             16      blight study;
             17          .    requires an agency's finding of blight to be approved by the taxing entity committee;
             18          .    prohibits tax increment from being paid to or used by an agency if an objective of
             19      the project is retail sales or the development of a business, office, or industrial park;
             20          .    prohibits an amendment to a project area plan that increases the size of the project
             21      area;
             22          .    prohibits an amendment to a project area budget that increases the amount of tax
             23      increment to be paid an agency or lengthens the time that tax increment is to be paid
             24      to an agency; and
             25          .     allows tax increment to be used in a redevelopment project area only for
             26      eliminating blight.
             27      Monies Appropriated in this Bill:



             28          None
             29      Other Special Clauses:
             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          17B-4-102, as last amended by Chapter 256, Laws of Utah 2003
             34          17B-4-402, as last amended by Chapter 205, Laws of Utah 2002
             35          17B-4-403, as last amended by Chapter 256, Laws of Utah 2003
             36          17B-4-411, as last amended by Chapter 205, Laws of Utah 2002
             37          17B-4-507, as enacted by Chapter 133, Laws of Utah 2001
             38          17B-4-601, as enacted by Chapter 133, Laws of Utah 2001
             39          17B-4-602, as last amended by Chapter 256, Laws of Utah 2003
             40          17B-4-603, as last amended by Chapter 205, Laws of Utah 2002
             41          17B-4-604, as last amended by Chapter 256, Laws of Utah 2003
             42          17B-4-605, as enacted by Chapter 133, Laws of Utah 2001
             43          17B-4-1002, as last amended by Chapter 205, Laws of Utah 2002
             44          17B-4-1005, as enacted by Chapter 133, Laws of Utah 2001
             45     
             46      Be it enacted by the Legislature of the state of Utah:
             47          Section 1. Section 17B-4-102 is amended to read:
             48           17B-4-102. Definitions.
             49          (1) "Agency" means a separate body corporate and politic, created under Section
             50      17B-4-201 or previous law, that is a political subdivision of the state, that is created to
             51      undertake or promote redevelopment, economic development, or education housing
             52      development, or any combination of them, as provided in this chapter, and whose geographic
             53      boundaries are coterminous with:
             54          (a) for an agency created by a county, the unincorporated area of the county; and
             55          (b) for an agency created by a city or town, the boundaries of the city or town.
             56          (2) "Assessment property owner" or "assessment owner of property" means the owner
             57      of real property as shown on the assessment roll of the county in which the property is located,
             58      equalized as of the previous November 1.



             59          (3) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             60          (4) "Base taxable value" means the taxable value of the property within a project area
             61      from which tax increment will be collected, as shown upon the assessment roll last equalized
             62      before:
             63          (a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan;
             64      or
             65          (b) for a post-June 30, 1993 project area plan:
             66          (i) the date of the taxing entity committee's approval of the first project area budget; or
             67          (ii) if no taxing entity committee approval is required for the project area budget, the
             68      later of:
             69          (A) the date the project area plan is adopted by the community legislative body; and
             70          (B) the date the agency adopts the first project area budget.
             71          (5) "Blight" or "blighted" means the condition of an area that meets the requirements of
             72      Subsection 17B-4-604 (1).
             73          (6) "Blight hearing" means a public hearing under Subsection 17B-4-601 [(3)](1)(c) and
             74      Section 17B-4-603 regarding the existence or nonexistence of blight within the proposed
             75      redevelopment project area.
             76          (7) "Blight study" means a study to determine the existence or nonexistence of blight
             77      within a survey area as provided in Section 17B-4-602 .
             78          (8) "Board" means the governing body of an agency, as provided in Section 17B-4-203 .
             79          (9) "Budget hearing" means the public hearing on a draft project area budget required
             80      under Subsection 17B-4-501 (2)(e).
             81          (10) "Community" means a county, city, or town.
             82          (11) "Economic development" means to promote the creation or retention of public or
             83      private jobs within the state through:
             84          (a) planning, design, development, construction, rehabilitation, business relocation, or
             85      any combination of these, within part or all of a project area; and
             86          (b) the provision of office, industrial, manufacturing, warehousing, distribution,
             87      parking, public, or other facilities, or other improvements that benefit the state or a community.
             88          (12) "Education housing development" means the provision of high density housing
             89      within a project area that is adjacent to a public or private institution of higher education.


             90          (13) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
             91      established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
             92          (14) "Plan hearing" means the public hearing on a draft project area plan required
             93      under Subsection 17B-4-402 (1)(e).
             94          (15) "Post-June 30, 1993 project area plan" means a redevelopment, economic
             95      development, or education housing development project area plan adopted on or after July 1,
             96      1993, whether or not amended subsequent to its adoption.
             97          (16) "Pre-July 1, 1993 project area plan" means a redevelopment project area plan
             98      adopted before July 1, 1993, whether or not amended subsequent to its adoption.
             99          (17) "Private," with respect to real property, means:
             100          (a) not owned by the United States or any agency of the federal government, a public
             101      entity, or any other governmental entity; and
             102          (b) not dedicated to public use.
             103          (18) "Project area" means the geographic area described in a project area plan or draft
             104      project area plan where the redevelopment, economic development, or education housing
             105      development set forth in the project area plan or draft project area plan takes place or is
             106      proposed to take place.
             107          (19) "Project area budget" means a multiyear projection of annual or cumulative
             108      revenues and expenses and other fiscal matters pertaining to a redevelopment, economic
             109      development, or education housing development project area that includes:
             110          (a) the base taxable value of property in the project area;
             111          (b) the projected tax increment expected to be generated within the project area;
             112          (c) the amount of tax increment expected to be shared with other taxing entities;
             113          (d) the amount of tax increment expected to be used to implement the project area plan,
             114      including the estimated amount of tax increment to be used for land acquisition, public
             115      improvements, infrastructure improvements, and loans, grants, or other incentives to private
             116      and public entities;
             117          (e) the tax increment expected to be used to cover the cost of administering the project
             118      area plan;
             119          (f) if the area from which tax increment is to be collected is less than the entire project
             120      area, a legal description of the portion of the project area from which tax increment will be


             121      collected; and
             122          (g) for property that the agency owns and expects to sell, the expected total cost of the
             123      property to the agency and the expected selling price.
             124          (20) "Project area plan" means a written plan under Part 4, Project Area Plan, that, after
             125      its effective date, guides and controls the redevelopment, economic development, or education
             126      housing development activities within the project area.
             127          (21) "Property tax" includes privilege tax and each levy on an ad valorem basis on
             128      tangible or intangible personal or real property.
             129          (22) "Public entity" means:
             130          (a) the state, including any of its departments or agencies; or
             131          (b) a political subdivision of the state, including a county, city, town, school district,
             132      special district, local district, or interlocal cooperation entity.
             133          (23) "Public input hearing" means the public hearing required under Subsection
             134      17B-4-402 (1)(h)(ii) regarding a proposed redevelopment project.
             135          (24) "Record property owner" or "record owner of property" means the owner of real
             136      property as shown on the records of the recorder of the county in which the property is located
             137      and includes a purchaser under a real estate contract if the contract is recorded in the office of
             138      the recorder of the county in which the property is located or the purchaser gives written notice
             139      of the real estate contract to the agency.
             140          (25) "Redevelopment" means the development activities under a project area plan
             141      within a redevelopment project area, including:
             142          (a) planning, design, development, demolition, clearance, construction, rehabilitation,
             143      or any combination of these, of part or all of a project area;
             144          (b) the provision of residential, commercial, industrial, public, or other structures or
             145      spaces, including recreational and other facilities incidental or appurtenant to them;
             146          (c) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
             147      any combination of these, existing structures in a project area;
             148          (d) providing open space, including streets and other public grounds and space around
             149      buildings;
             150          (e) providing public or private buildings, infrastructure, structures, and improvements;
             151      and


             152          (f) providing improvements of public or private recreation areas and other public
             153      grounds.
             154          (26) "Superfund site":
             155          (a) means an area included in the National Priorities List under the Comprehensive
             156      Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
             157          (b) includes an area formerly included in the National Priorities List, as described in
             158      Subsection (26)(a), but removed from the list following remediation that leaves on site the
             159      waste that caused the area to be included in the National Priorities List.
             160          (27) "Survey area" means an area designated by a survey area resolution for study to
             161      determine whether one or more redevelopment projects within the area are feasible.
             162          (28) "Survey area resolution" means a resolution adopted by the agency board under
             163      Subsection 17B-4-401 (1)(a) designating a survey area.
             164          (29) (a) "Tax increment" means, except as provided in Subsection (29)(b), the
             165      difference between:
             166          (i) the amount of property tax revenues generated each tax year by all taxing entities
             167      from the area within a project area designated in the project area plan as the area from which
             168      tax increment is to be collected, using the current assessed value of the property; and
             169          (ii) the amount of property tax revenues that would be generated from that same area
             170      using the base taxable value of the property.
             171          (b) "Tax increment" does not include taxes levied and collected under Section
             172      59-2-906.1 on or after January 1, 1994 upon the taxable property in the project area unless:
             173          (i) the project area plan was adopted before May 4, 1993, whether or not the project
             174      area plan was subsequently amended; and
             175          (ii) the taxes were pledged to support bond indebtedness or other contractual
             176      obligations of the agency.
             177          (30) "Taxing entity" means a public entity that levies a tax on property within a project
             178      area or proposed project area.
             179          (31) "Taxing entity committee" means a committee representing the interests of taxing
             180      entities, created as provided in Section 17B-4-1002 .
             181          Section 2. Section 17B-4-402 is amended to read:
             182           17B-4-402. Process for adopting project area plan -- Prerequisites -- Restrictions.


             183          (1) In order to adopt a project area plan, after adopting a resolution under Subsection
             184      17B-4-401 (1) the agency shall:
             185          (a) prepare a draft of a project area plan and conduct any examination, investigation,
             186      and negotiation regarding the project area plan that the agency considers appropriate;
             187          (b) request input on the draft project area plan from the planning commission of the
             188      community in which the proposed project area is located;
             189          (c) make the draft project area plan available to the public at the agency's offices during
             190      normal business hours;
             191          (d) provide notice of the plan hearing as provided in Sections 17B-4-702 and
             192      17B-4-704 ;
             193          (e) hold a public hearing on the draft project area plan and, at that public hearing:
             194          (i) allow public comment on:
             195          (A) the draft project area plan; and
             196          (B) whether the draft project area plan should be revised, approved, or rejected; and
             197          (ii) receive all written and hear all oral objections to the draft project area plan;
             198          (f) before holding the plan hearing, provide an opportunity for the State Board of
             199      Education and each taxing entity that levies a tax on property within the proposed project area
             200      to consult with the agency regarding the draft project area plan;
             201          (g) if applicable, hold the election required under Subsection 17B-4-406 (3);
             202          (h) for a redevelopment project area plan:
             203          (i) comply with the requirements of Part 6, Blight Determination in Redevelopment
             204      Project Areas;
             205          (ii) before providing notice of the plan hearing, hold at least one public hearing to:
             206          (A) inform the public about each area being considered for a redevelopment project
             207      area; and
             208          (B) allow public input into agency deliberations on proposing each redevelopment
             209      project area;
             210          (iii) select one or more project areas comprising part or all of the survey area; and
             211          (iv) before sending the first notice to assessment owners of property for a public input
             212      hearing, blight hearing, or combined public input and blight hearing, prepare and adopt
             213      guidelines setting forth and governing the reasonable opportunities of record property owners


             214      and tenants to participate in the redevelopment;
             215          (i) after holding the plan hearing, at the same meeting or at a subsequent meeting
             216      consider:
             217          (i) the oral and written objections to the draft project area plan and evidence and
             218      testimony for or against adoption of the draft project area plan; and
             219          (ii) whether to revise, approve, or reject the draft project area plan;
             220          (j) approve the draft project area plan, with or without revisions, as the project area
             221      plan by a resolution that complies with Section 17B-4-407 ; and
             222          (k) submit the project area plan to the community legislative body for adoption.
             223          (2) An agency may not propose a project area plan under Subsection (1) unless the
             224      community in which the proposed project area is located:
             225          (a) has a planning commission; and
             226          (b) has adopted a general plan under:
             227          (i) if the community is a city or town, Title 10, Chapter 9, Part 3, General Plan; or
             228          (ii) if the community is a county, Title 17, Chapter 27, Part 3, General Plan.
             229          (3) (a) Subject to Subsection (3)(b), an agency board may not approve a project area
             230      plan more than one year after:
             231          (i) for a redevelopment project area plan involving the use of eminent domain,
             232      adoption of a resolution making a finding of blight under Subsection
             233      17B-4-601 [(4)(b)](1)(d)(ii); or
             234          (ii) for an economic development or education housing development project area plan,
             235      the date of the plan hearing.
             236          (b) If a project area plan is submitted to an election under Subsection 17B-4-406 (3),
             237      the time between the plan hearing and the date of the election does not count for purposes of
             238      calculating the year period under Subsection (3)(a).
             239          (4) (a) Except as provided in Subsection (4)(b), a draft project area plan may not be
             240      modified to add real property to the proposed project area unless the board holds a plan hearing
             241      to consider the addition and gives notice of the plan hearing as required under Sections
             242      17B-4-702 and 17B-4-704 .
             243          (b) The notice and hearing requirements under Subsection (4)(a) do not apply to a draft
             244      project area plan being modified to add real property to the proposed project area if:


             245          (i) the property is contiguous to the property already included in the proposed project
             246      area under the draft project area plan;
             247          (ii) the record owner of the property consents to adding the real property to the
             248      proposed project area; and
             249          (iii) for a redevelopment project area, the property is located within the survey area.
             250          Section 3. Section 17B-4-403 is amended to read:
             251           17B-4-403. Project area plan requirements.
             252          (1) Each project area plan and draft project area plan shall:
             253          (a) describe the boundaries of the project area;
             254          (b) contain a general statement of the land uses, layout of principal streets, population
             255      densities, and building intensities of the project area and how they will be affected by the
             256      redevelopment, economic development, or education housing development;
             257          (c) state the standards that will guide the redevelopment, economic development, or
             258      education housing development;
             259          (d) show how the purposes of this chapter will be attained by the redevelopment,
             260      economic development, or education housing development;
             261          (e) be consistent with the general plan of the community in which the project area is
             262      located and show that the redevelopment, economic development, or education housing
             263      development will conform to the community's general plan;
             264          (f) if the agency board made a finding of blight under Subsection
             265      17B-4-601 [(4)(b)](1)(d)(ii):
             266          (i) describe how the redevelopment will reduce or eliminate blight in the project area;
             267      and
             268          (ii) if the agency is to have the power of eminent domain under the project area plan:
             269          (A) provide record owners of property located within the redevelopment project area
             270      and their tenants reasonable opportunities to participate in the redevelopment if the record
             271      property owner or tenant enters into a participation agreement with the agency;
             272          (B) state that the agency has adopted or will adopt guidelines setting forth and
             273      governing the opportunities of record property owners and tenants to participate in the
             274      redevelopment, as required by Subsection 17B-4-402 (1)(h)(iv); and
             275          (C) include a plan for the relocation of any families and persons who will be


             276      temporarily or permanently displaced from housing facilities in the redevelopment project area;
             277          (g) if the project area plan is for economic development, describe how the economic
             278      development will create additional jobs;
             279          (h) if the project area plan is for education housing development, describe how the
             280      education housing development will meet the needs of the community in which the project area
             281      is located;
             282          (i) describe any specific project or projects that are the object of the proposed
             283      redevelopment, economic development, or education housing development;
             284          (j) identify how private developers, if any, will be selected to undertake the
             285      redevelopment, economic development, or education housing development and identify each
             286      private developer currently involved in the redevelopment, economic development, or
             287      education housing development process;
             288          (k) contain a time limit of no more than three years after adoption of the project area
             289      plan for the agency to commence implementation of the project area plan, unless the project
             290      area plan is adopted again as if it were an amended project area plan under Section 17B-4-411 ;
             291          (l) if the project area plan authorizes the use of eminent domain, contain a time limit of
             292      no more than five years after the effective date of the project area plan for the agency to
             293      commence acquisition of property through the use of eminent domain;
             294          (m) if the project area plan provides for tax increment to be paid to the agency:
             295          (i) contain a time limit of no more than 25 years for tax increment to be paid to the
             296      agency from the project area unless the taxing entity committee consents to a longer period;
             297      and
             298          (ii) contain a provision that the project area may not exceed 100 acres of private real
             299      property unless:
             300          (A) the agency obtains the consent of the taxing entity committee; or
             301          (B) the project area is a superfund site;
             302          (n) state the reasons for the selection of the project area;
             303          (o) describe the physical, social, and economic conditions existing in the project area;
             304          (p) provide a financial analysis describing the proposed method of financing the
             305      proposed redevelopment, economic development, or education housing development;
             306          (q) describe any tax incentives offered private entities for facilities located in the


             307      project area;
             308          (r) contain the report and state any recommendations of the community's planning
             309      commission;
             310          (s) include an analysis, as provided in Subsection (2), of whether adoption of the
             311      project area plan is:
             312          (i) for a redevelopment project area plan, necessary and appropriate to reduce or
             313      eliminate blight; or
             314          (ii) for an economic development or education housing development project area plan,
             315      beneficial under a benefit analysis;
             316          (t) if any of the existing buildings or uses in the project area are included in or eligible
             317      for inclusion in the National Register of Historic Places or the State Register, state that the
             318      agency shall comply with Subsection 9-8-404 (1) as though the agency were a state agency; and
             319          (u) include other information that the agency determines to be necessary or advisable.
             320          (2) Each analysis under Subsection (1)(s)(ii) shall consider:
             321          (a) the benefit of any financial assistance or other public subsidy proposed to be
             322      provided by the agency, including:
             323          (i) an evaluation of the reasonableness of the costs of economic development or
             324      education housing development;
             325          (ii) efforts the agency has made or will make to maximize private investment;
             326          (iii) the rationale for use of tax increment, including an analysis of whether the
             327      proposed development might reasonably be expected to occur in the foreseeable future solely
             328      through private investment; and
             329          (iv) an estimate of the total amount of tax increment that will be expended in
             330      undertaking economic development or education housing development and the length of time
             331      for which it will be expended; and
             332          (b) the anticipated public benefit to be derived from the economic development or
             333      education housing development, including:
             334          (i) the beneficial influences upon the tax base of the community;
             335          (ii) the associated business and economic activity likely to be stimulated; and
             336          (iii) in the case of economic development, the number of jobs or employment
             337      anticipated to be generated or preserved.


             338          Section 4. Section 17B-4-411 is amended to read:
             339           17B-4-411. Amending the project area plan.
             340          (1) [An] Subject to Subsection (6), an adopted project area plan may be amended as
             341      provided in this section.
             342          (2) If an agency proposes to amend an adopted project area plan to enlarge a project
             343      area:
             344          (a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
             345      a project area plan apply equally to the proposed amendment as if it were a project area plan;
             346          (b) for a pre-July 1, 1993 project area plan, the base year taxable value for the new area
             347      added to the project area shall be determined under Subsection 17B-4-102 (4)(a) using the
             348      effective date of the amended project area plan;
             349          (c) for a post-June 30, 1993 project area plan, the base year taxable value for the new
             350      area added to the project area shall be determined under Subsection 17B-4-102 (4)(b) using the
             351      date of the taxing entity committee's consent referred to in Subsection (2)(f);
             352          (d) if the amended plan is to authorize the use of eminent domain within a new area to
             353      be added to the project area:
             354          (i) before adopting the amended project area plan the agency must make a finding
             355      regarding the existence of blight in the new area proposed to be added, following the
             356      procedures set forth in Part 6, Blight Determination in Redevelopment Project Areas, of this
             357      chapter; and
             358          (ii) for the new area added, the time limit of Subsection 17B-4-403 (1)(l) may be
             359      measured from the effective date of the amendment to the project area plan;
             360          (e) if the agency made a finding of the existence of blight regarding the project area as
             361      originally adopted:
             362          (i) it is not necessary to repeat the requirements of Part 6 of this chapter for the original
             363      area; and
             364          (ii) regarding the area described in the project area plan as originally adopted, the time
             365      limit established by Subsection 17B-4-403 (1)(l) for the agency to commence acquisition of
             366      property through the use of eminent domain shall not be affected or changed by the
             367      amendment; and
             368          (f) for a post-June 30, 1993 project area plan, the agency shall obtain the consent of the


             369      taxing entity committee before the agency may collect tax increment from the area added to the
             370      project area.
             371          (3) If a proposed amendment does not propose to enlarge a project area, an agency
             372      board may adopt a resolution approving an amendment to an adopted project area plan after:
             373          (a) the agency gives notice, as provided in Section 17B-4-702 , of the proposed
             374      amendment and of the public hearing required by Subsection (3)(b);
             375          (b) the agency board holds a public hearing on the proposed amendment that meets the
             376      requirements of a plan hearing;
             377          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
             378      amendment proposes:
             379          (i) to enlarge the area within the project area from which tax increment is collected; or
             380          (ii) to permit the agency to receive a greater percentage of tax increment or to receive
             381      tax increment for a longer period of time than allowed under the adopted project area plan; and
             382          (iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
             383      expand the area from which tax increment is collected to exceed 100 acres of private real
             384      property; and
             385          (d) the agency obtains the consent of the legislative body or governing board of each
             386      taxing entity affected, if the amendment proposes to permit the agency to receive, from less
             387      than all taxing entities, a greater percentage of tax increment or to receive tax increment for a
             388      longer period of time, or both, than allowed under the adopted project area plan.
             389          (4) (a) Notwithstanding Subsections (2)(a) and (3) an adopted project area plan may be
             390      amended without complying with the notice and public hearing requirements of Subsections
             391      (2)(a) and (3)(a) and (b) and without obtaining taxing entity committee approval under
             392      Subsection (3)(c)(i) if the amendment:
             393          (i) makes a minor adjustment in the legal description of a project area boundary
             394      requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
             395      or
             396          (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
             397      because the agency determines that:
             398          (A) the parcel is no longer blighted; or
             399          (B) inclusion of the parcel is no longer necessary or desirable to the project area; and


             400          (b) An amendment removing a parcel of real property from a project area under
             401      Subsection (4)(a)(ii) may not be made without the consent of the record property owner of the
             402      parcel being removed.
             403          (5) (a) An amendment approved by board resolution under this section may not take
             404      effect until adopted by ordinance of the legislative body of the community in which the project
             405      area that is the subject of the project area plan being amended is located.
             406          (b) Upon a community legislative body passing an ordinance adopting an amendment
             407      to a project area plan, the agency whose project area plan was amended shall comply with the
             408      requirements of Section 17B-4-410 to the same extent as if the amendment were a project area
             409      plan.
             410          (6) A project area plan may not be amended after May 1, 2005, to enlarge or add to a
             411      project area.
             412          Section 5. Section 17B-4-507 is amended to read:
             413           17B-4-507. Amending the project area budget.
             414          (1) [An] Subject to Subsection (5), an agency may by resolution amend a project area
             415      budget as provided in this section.
             416          (2) To amend an adopted project area budget, the agency shall:
             417          (a) advertise and hold one public hearing on the proposed amendment as provided in
             418      Subsection (3);
             419          (b) obtain the approval of the taxing entity committee if the agency was required under
             420      Section 17B-4-505 to obtain the consent of the taxing entity committee for the project area
             421      budget as originally adopted; and
             422          (c) adopt a resolution amending the project area budget.
             423          (3) The public hearing required under Subsection (2)(a) shall be conducted according
             424      to the procedures and requirements of Sections 17B-4-501 and 17B-4-502 , except that if the
             425      amended project area budget proposes that the agency be paid a greater proportion of tax
             426      increment from a project area than was to be paid under the previous project area budget, the
             427      advertisement shall state the percentage paid under the previous project area budget and the
             428      percentage proposed under the amended project area budget.
             429          (4) If a proposed amendment is not adopted, the agency shall continue to operate under
             430      the previously adopted project area budget without the proposed amendment.


             431          (5) A project area budget may not be amended after May 1, 2005, if the amendment
             432      provides for the agency to receive more tax increment or tax increment for a longer period of
             433      time than allowed under the project area budget without the amendment.
             434          Section 6. Section 17B-4-601 is amended to read:
             435           17B-4-601. Additional procedure for adopting a redevelopment project area
             436      plan.
             437          (1) In addition to other applicable requirements for adopting a project area plan, to
             438      adopt a redevelopment project area plan the agency shall:
             439          [(1)] (a) after receiving the taxing entity committee's consent for a blight study, cause a
             440      blight study to be conducted within the survey area as provided in Section 17B-4-602 ;
             441          [(2)] (b) provide notice of a blight hearing as required under Part 7, Notice
             442      Requirements;
             443          [(3)] (c) hold a blight hearing as provided in Section 17B-4-603 ; and
             444          [(4)] (d) after the blight hearing has been held, hold a board meeting, either at the same
             445      time as the blight hearing or at a subsequent board meeting, at which the board shall:
             446          [(a)] (i) consider:
             447          [(i)] (A) the issue of blight and the evidence and information relating to the existence
             448      or nonexistence of blight; and
             449          [(ii)] (B) whether adoption of one or more redevelopment project area plans should be
             450      pursued; and
             451          [(b) by resolution] (ii) make a finding regarding the existence of blight in the proposed
             452      redevelopment project area.
             453          (2) The agency's finding of blight under Subsection (1) has no effect until approved by
             454      the taxing entity committee.
             455          Section 7. Section 17B-4-602 is amended to read:
             456           17B-4-602. Blight study -- Requirements -- Deadline.
             457          (1) Each blight study required under Subsection 17B-4-601 (1)(a) shall:
             458          (a) provide data so the board and taxing entity committee may determine:
             459          (i) whether the conditions described in Subsections 17B-4-604 (1)(a)(i) and (ii) exist in
             460      part or all of the survey area;
             461          (ii) whether the factors listed in Subsection 17B-4-604 (1)(a)(iii) are present in the


             462      survey area; and
             463          (iii) whether the survey area contains a superfund site;
             464          (b) include a written report setting forth:
             465          (i) the conclusions reached; and
             466          (ii) any other information requested by the agency to determine whether a
             467      redevelopment project area is feasible; and
             468          (c) be completed within one year after the adoption of the survey area resolution.
             469          (2) (a) If a blight study is not completed within one year after the adoption of the
             470      resolution under Subsection 17B-4-401 (1)(a) designating a survey area, the agency may not
             471      approve a redevelopment project area plan based on that blight study unless it first adopts a
             472      new resolution under Subsection 17B-4-401 (1)(a).
             473          (b) A new resolution under Subsection (2)(a) shall in all respects be considered to be a
             474      resolution under Subsection 17B-4-401 (1)(a) adopted for the first time, except that any actions
             475      taken toward completing a blight study under the resolution that the new resolution replaces
             476      shall be considered to have been taken under the new resolution.
             477          Section 8. Section 17B-4-603 is amended to read:
             478           17B-4-603. Blight hearing -- Owners may review evidence of blight.
             479          (1) In each hearing required under Subsection 17B-4-601 [(3)](1)(c), the agency shall:
             480          (a) permit all evidence of the existence or nonexistence of blight within the proposed
             481      redevelopment project area to be presented; and
             482          (b) permit each record owner of property located within the proposed redevelopment
             483      project area or the record property owner's representative the opportunity to:
             484          (i) examine and cross-examine witnesses providing evidence of the existence or
             485      nonexistence of blight; and
             486          (ii) present evidence and testimony, including expert testimony, concerning the
             487      existence or nonexistence of blight.
             488          (2) The agency shall allow record owners of property located within a proposed
             489      redevelopment project area the opportunity, for at least 30 days before the hearing, to review
             490      the evidence of blight compiled by the agency or by the person or firm conducting the blight
             491      study for the agency, including any expert report.
             492          Section 9. Section 17B-4-604 is amended to read:


             493           17B-4-604. Conditions on board determination of blight -- Conditions of blight
             494      caused by the developer.
             495          (1) An agency board may not make a finding of blight [in a resolution] under
             496      [Subsection ] Section 17B-4-601 [(4)(b)] unless the board finds that the redevelopment project
             497      area:
             498          (a) (i) contains buildings or improvements used or intended to be used for residential,
             499      commercial, industrial, or other urban purposes, or any combination of those uses;
             500          (ii) contains buildings or improvements on at least 50% of the number of parcels of
             501      private real property whose acreage is at least 50% of the acreage of the private real property
             502      within the proposed redevelopment project area; and
             503          (iii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of
             504      disease, infant mortality, juvenile delinquency, or crime because of any three or more of the
             505      following factors:
             506          (A) defective character of physical construction;
             507          (B) high density of population or overcrowding;
             508          (C) inadequate ventilation, light, or spacing between buildings;
             509          (D) mixed character and shifting of uses, resulting in obsolescence, deterioration, or
             510      dilapidation;
             511          (E) economic deterioration or continued disuse;
             512          (F) lots of irregular shape or inadequate size for proper usefulness and development, or
             513      laying out of lots in disregard of the contours and other physical characteristics of the ground
             514      and surrounding conditions;
             515          (G) inadequate sanitation or public facilities which may include streets, open spaces,
             516      and utilities;
             517          (H) areas that are subject to being submerged by water; and
             518          (I) existence of any hazardous or solid waste, defined as any substance defined,
             519      regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic waste,
             520      pollutant, contaminant, or toxic substance, or identified as hazardous to human health or the
             521      environment under state or federal law or regulation; or
             522          (b) is a superfund site.
             523          (2) (a) For purposes of Subsection (1), if a developer involved in the redevelopment


             524      project causes a condition listed in Subsection (1)(a)(iii) within the project area, the condition
             525      caused by the developer may not be used in the determination of blight.
             526          (b) Subsection (2)(a) does not apply to a condition that was caused by an owner or
             527      tenant who becomes a developer under Section 17B-4-901 .
             528          Section 10. Section 17B-4-605 is amended to read:
             529           17B-4-605. Challenging a finding of blight -- Time limit -- De novo review.
             530          (1) If the board makes a finding of blight under [Subsection ] Section
             531      17B-4-601 [(4)(b)] and that finding is approved by the taxing entity committee, a record owner
             532      of property located within the proposed redevelopment project area may challenge the finding
             533      by filing an action with the district court for the county in which the property is located.
             534          (2) Each challenge under Subsection (1) shall be filed within 30 days after the [board's
             535      adoption of the resolution containing the] taxing entity committee approves the board's finding
             536      of blight.
             537          (3) In each action under this section:
             538          (a) the district court shall review de novo the finding of blight; and
             539          (b) the agency maintains the burden of proof regarding the existence of blight.
             540          Section 11. Section 17B-4-1002 is amended to read:
             541           17B-4-1002. Taxing entity committee.
             542          [(1) Each agency that adopts or proposes to adopt a post-June 30, 1993 project area
             543      plan shall, and any other agency may, cause a taxing entity committee to be created.]
             544          (1) There is established for each county a taxing entity committee.
             545          (2) (a) (i) Each taxing entity committee shall be composed of:
             546          (A) [two] one school district [representatives] representative appointed as provided in
             547      Subsection (2)(a)(ii);
             548          [(B) (I) in counties of the second, third, fourth, fifth, or sixth class, two representatives
             549      appointed by resolution of the legislative body of the county in which the agency is located; or]
             550          [(II) in counties of the first class, two representatives appointed by the county executive
             551      of the county in which the agency is located;]
             552          [(C) if the agency was created by a city or town, two representatives appointed by
             553      resolution of the legislative body of that city or town;]
             554          (B) one representative from the county auditor's office, appointed by the county


             555      auditor;
             556          (C) one representative from the county assessor's office, appointed by the county
             557      assessor;
             558          (D) one member representing municipalities within the county in which the agency is
             559      located, appointed by majority vote of the mayors of all municipalities within the county;
             560          [(D)] (E) one representative appointed by the State Board of Education; and
             561          [(E)] (F) one representative selected by majority vote of the legislative bodies or
             562      governing boards of all other taxing entities that levy a tax on property within the [agency's
             563      boundaries] county, to represent the interests of those taxing entities on the taxing entity
             564      committee.
             565          (ii) (A) If the [agency boundaries include] county includes only one school district, that
             566      school district shall appoint the [two] school district [representatives] representative under
             567      Subsection (2)(a)(i)(A).
             568          (B) If the [agency boundaries include] county includes more than one school district,
             569      those school districts shall jointly appoint the [two] school district [representatives]
             570      representative under Subsection (2)(a)(i)(A).
             571          [(b) (i) Each taxing entity committee representative under Subsection (2) shall be
             572      appointed within 30 days after the agency provides notice of the creation of the taxing entity
             573      committee.]
             574          [(ii) If a representative is not appointed within the time required under Subsection
             575      (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
             576      place of the missing representative until that representative is appointed.]
             577          [(c) (i) A taxing entity committee representative may be appointed for a set term or
             578      period of time, as determined by the appointing authority under Subsection (2)(a)(i).]
             579          (iii) In addition to the taxing entity committee members specified in Subsection
             580      (2)(a)(i):
             581          (A) if the project area to be described in a proposed project area plan is within the
             582      boundaries of a school district, that school district shall appoint one member to the taxing
             583      entity committee to serve on the committee only for purposes of the project that is the subject
             584      of the proposed project area plan; and
             585          (B) if the agency proposing a project area plan was created by a municipality, that


             586      municipality shall appoint one member to the taxing entity committee to serve on the
             587      committee only for purposes of the project that is the subject of the proposed project area plan.
             588          (b) (i) Except as provided in Subsection (2)(b)(ii), each taxing entity committee
             589      member shall serve a term of four years.
             590          (ii) The initial term of half or, if an odd number, approximately half of the members of
             591      the initial taxing entity committee in each county shall be two years.
             592          [(ii)] (iii) Each taxing entity committee [representative] member shall serve until a
             593      successor is appointed and qualified.
             594          [(d)] (c) (i) Upon the appointment of each representative under Subsection (2)(a)(i),
             595      whether an initial appointment or an appointment to replace an already serving representative,
             596      the appointing authority shall:
             597          (A) notify the agency in writing of the name and address of the newly appointed
             598      representative; and
             599          (B) provide the agency a copy of the resolution making the appointment or, if the
             600      appointment is not made by resolution, other evidence of the appointment.
             601          (ii) Each appointing authority of a taxing entity committee representative under
             602      Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
             603      representative appointed by that appointing authority.
             604          (3) A taxing entity committee represents all taxing entities regarding a project area and
             605      may:
             606          (a) cast votes that will be binding on all taxing entities;
             607          (b) negotiate with the agency concerning a draft project area plan;
             608          (c) approve or disapprove the conducting of a blight study under Section 17B-4-601 ;
             609          (d) approve or disapprove the agency's finding of blight under Section 17B-4-601 ;
             610          [(c)] (e) approve or disapprove a project area budget as provided in Section 17B-4-505 ;
             611          [(d)] (f) approve or disapprove amendments to a project area budget as provided in
             612      Section 17B-4-507 ;
             613          [(e)] (g) approve exceptions to the limits on the value and size of a project area
             614      imposed under this chapter;
             615          [(f)] (h) approve exceptions to the percentage of tax increment and the period of time
             616      that tax increment is paid to the agency as provided in this part;


             617          [(g)] (i) approve the use of tax increment for access and utilities outside of a project
             618      area that the agency and community legislative body determine to be of benefit to the project
             619      area, as provided in Subsection 17B-4-1007 (1)(a)(ii)(D);
             620          [(h)] (j) waive the restrictions imposed by Subsection 17B-4-503 (2)(a); and
             621          [(i)] (k) give other taxing entity committee approval or consent required or allowed
             622      under this chapter.
             623          (4) A quorum of a taxing entity committee consists of[:] a majority of all members of
             624      the taxing entity committee.
             625          [(a) except as provided in Subsection (4)(b):]
             626          [(i) if the project area is located within a city or town, five members; or]
             627          [(ii) if the project area is not located within a city or town, four members; or]
             628          [(b) for an education housing development project area as to which the school district
             629      has elected under Subsection 17B-4-1004 (5) not to allow the agency to be paid tax increment
             630      from school district tax revenues:]
             631          [(i) if the project area is located within a city or town, three members; or]
             632          [(ii) if the project area is not located within a city or town, two members.]
             633          (5) Taxing entity committee approval, consent, or other action requires the affirmative
             634      vote of a majority of all committee members present at a meeting where a quorum is present [at
             635      a taxing entity committee meeting].
             636          (6) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
             637      Public Meetings.
             638          (7) Each time a school district representative or a representative of the State Board of
             639      Education votes as a member of a taxing entity committee to allow an agency to be paid tax
             640      increment or to increase the amount or length of time that an agency may be paid tax
             641      increment, that representative shall, within 45 days after the vote, provide to the
             642      representative's respective school board an explanation in writing of the representative's vote
             643      and the reasons for the vote.
             644          (8) (a) The assessor of each county in which the agency is located shall provide a
             645      written report to the taxing entity committee stating, with respect to property within each
             646      project area:
             647          (i) the base taxable value, as adjusted by any adjustments under Section 17B-4-1006;


             648      and
             649          (ii) the assessed value.
             650          (b) With respect to the information required under Subsection (8)(a), the assessor shall
             651      provide:
             652          (i) actual amounts for each year from the adoption of the project area plan to the time
             653      of the report; and
             654          (ii) estimated amounts for each year beginning the year after the time of the report and
             655      ending the time that the agency expects no longer to be paid tax increment from property
             656      within the project area.
             657          (c) The assessor of the county in which the agency is located shall provide a report
             658      under this Subsection (8):
             659          (i) at least annually; and
             660          (ii) upon request of the taxing entity committee, before a taxing entity committee
             661      meeting at which the committee will consider whether to allow the agency to be paid tax
             662      increment or to increase the amount or length of time that the agency may be paid tax
             663      increment.
             664          Section 12. Section 17B-4-1005 is amended to read:
             665           17B-4-1005. Limitations on tax increment.
             666          (1) [(a)] If the development of retail sales of goods is [the primary] an objective of the
             667      redevelopment project area or if the development of an office, business, or industrial park is an
             668      objective of the redevelopment, economic development, or education housing development
             669      project area, tax increment may not be paid to or used by an agency [unless a finding of blight
             670      is made under Part 6, Blight Determination in Redevelopment Project Areas.] after May 1,
             671      2005, unless the tax increment had been previously pledged to pay for bonds issued by the
             672      agency or to support other contractual obligations of the agency.
             673          [(b) (i) Incidental or subordinate development of retail sales of goods does not
             674      disqualify an agency from receiving tax increment.]
             675          [(ii) Incidental or subordinate development of retail sales of goods includes the
             676      development of retail sales of goods resulting from the installation and construction of any
             677      building, facility, structure, or other improvement of a publicly or privately owned convention
             678      center or sports complex, including parking and infrastructure improvements related to the


             679      convention center or sports complex.]
             680          (2) (a) An agency may not be paid any portion of a taxing entity's taxes resulting from
             681      an increase in the taxing entity's tax rate that occurs after the taxing entity committee approves
             682      the project area budget unless, at the time the taxing entity committee approves the project area
             683      budget, the taxing entity committee approves payment of those increased taxes to the agency.
             684          (b) If the taxing entity committee does not approve of payment of the increased taxes to
             685      the agency under Subsection (2)(a), the county shall distribute to the taxing entity the taxes
             686      attributable to the tax rate increase in the same manner as other property taxes.
             687          (3) Notwithstanding any other provision of this part, tax increment paid to an agency
             688      from a redevelopment project area after May 1, 2005, may be used only for the purpose of
             689      eliminating blight within that project area, unless and to the extent that the tax increment has
             690      been pledged to pay for bonds issued by the agency or to support other contractual obligations
             691      of the agency.




Legislative Review Note
    as of 2-4-05 11:42 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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