Download Zipped Introduced WordPerfect SB0184S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]
First Substitute S.B. 184
Senator Curtis S. Bramble proposes the following substitute bill:
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
. prohibits a redevelopment agency from adopting a project area plan for a
12
redevelopment project from July 1, 2005 through June 30, 2006 unless a blight
13
study has been commissioned and completed by certain dates;
14
. eliminates a requirement for approval from affected taxing entities and the taxing
15
entity committee for project area plan amendments that provide for tax increment to
16
be paid for a longer period of time than allowed under the adopted project area plan;
17
. requires an agency's finding of blight to be approved by the taxing entity committee;
18
. shifts the authority to appoint taxing entity committee representatives in counties of
19
the first class from the county executive to the county legislative body;
20
. modifies a date by which construction of a recreational or cultural facility must
21
begin in order for an agency to be paid additional tax increment for the facility;
22
. eliminates provisions authorizing additional tax increment to be paid to an agency
23
to pay for cable television and public telecommunications service, an I-15
24
interchange, and the relocation of an agriculture related business;
25
. prohibits tax increment under a post-June 30, 1993 project area plan from being
26
paid to an agency for more than 25 years, eliminating taxing entity committee consent as a
27
basis for allowing an agency to be paid tax increment for more than 25 years;
28
. eliminates a provision that allows a city of the first or second class to use tax
29
increment from one project area in another project area to pay for a convention
30
center or sports complex; and
31
. prohibits an agency from using tax increment to pay for a stadium or arena.
32
Monies Appropriated in this Bill:
33
None
34
Other Special Clauses:
35
None
36
Utah Code Sections Affected:
37
AMENDS:
38
17B-4-102, as last amended by Chapter 256, Laws of Utah 2003
39
17B-4-402, as last amended by Chapter 205, Laws of Utah 2002
40
17B-4-403, as last amended by Chapter 256, Laws of Utah 2003
41
17B-4-411, as last amended by Chapter 205, Laws of Utah 2002
42
17B-4-601, as enacted by Chapter 133, Laws of Utah 2001
43
17B-4-602, as last amended by Chapter 256, Laws of Utah 2003
44
17B-4-603, as last amended by Chapter 205, Laws of Utah 2002
45
17B-4-604, as last amended by Chapter 256, Laws of Utah 2003
46
17B-4-605, as enacted by Chapter 133, Laws of Utah 2001
47
17B-4-1002, as last amended by Chapter 205, Laws of Utah 2002
48
17B-4-1003, as last amended by Chapter 191, Laws of Utah 2003
49
17B-4-1004, as last amended by Chapter 205, Laws of Utah 2002
50
17B-4-1007, as last amended by Chapter 205, Laws of Utah 2002
51
52
Be it enacted by the Legislature of the state of Utah:
53
Section 1.
Section
17B-4-102
is amended to read:
54
17B-4-102. Definitions.
55
(1) "Agency" means a separate body corporate and politic, created under Section
56
17B-4-201
or previous law, that is a political subdivision of the state, that is created to
57
undertake or promote redevelopment, economic development, or education housing
58
development, or any combination of them, as provided in this chapter, and whose geographic
59
boundaries are coterminous with:
60
(a) for an agency created by a county, the unincorporated area of the county; and
61
(b) for an agency created by a city or town, the boundaries of the city or town.
62
(2) "Assessment property owner" or "assessment owner of property" means the owner
63
of real property as shown on the assessment roll of the county in which the property is located,
64
equalized as of the previous November 1.
65
(3) "Assessment roll" has the meaning as defined in Section
59-2-102
.
66
(4) "Base taxable value" means the taxable value of the property within a project area
67
from which tax increment will be collected, as shown upon the assessment roll last equalized
68
before:
69
(a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan;
70
or
71
(b) for a post-June 30, 1993 project area plan:
72
(i) the date of the taxing entity committee's approval of the first project area budget; or
73
(ii) if no taxing entity committee approval is required for the project area budget, the
74
later of:
75
(A) the date the project area plan is adopted by the community legislative body; and
76
(B) the date the agency adopts the first project area budget.
77
(5) "Blight" or "blighted" means the condition of an area that meets the requirements of
78
Subsection
17B-4-604
(1).
79
(6) "Blight hearing" means a public hearing under Subsection
17B-4-601
[(3)](1)(c) and
80
Section
17B-4-603
regarding the existence or nonexistence of blight within the proposed
81
redevelopment project area.
82
(7) "Blight study" means a study to determine the existence or nonexistence of blight
83
within a survey area as provided in Section
17B-4-602
.
84
(8) "Board" means the governing body of an agency, as provided in Section
17B-4-203
.
85
(9) "Budget hearing" means the public hearing on a draft project area budget required
86
under Subsection
17B-4-501
(2)(e).
87
(10) "Community" means a county, city, or town.
88
(11) "Economic development" means to promote the creation or retention of public or
89
private jobs within the state through:
90
(a) planning, design, development, construction, rehabilitation, business relocation, or
91
any combination of these, within part or all of a project area; and
92
(b) the provision of office, industrial, manufacturing, warehousing, distribution,
93
parking, public, or other facilities, or other improvements that benefit the state or a community.
94
(12) "Education housing development" means the provision of high density housing
95
within a project area that is adjacent to a public or private institution of higher education.
96
(13) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
97
established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
98
(14) "Plan hearing" means the public hearing on a draft project area plan required
99
under Subsection
17B-4-402
(1)(e).
100
(15) "Post-June 30, 1993 project area plan" means a redevelopment, economic
101
development, or education housing development project area plan adopted on or after July 1,
102
1993, whether or not amended subsequent to its adoption.
103
(16) "Pre-July 1, 1993 project area plan" means a redevelopment project area plan
104
adopted before July 1, 1993, whether or not amended subsequent to its adoption.
105
(17) "Private," with respect to real property, means:
106
(a) not owned by the United States or any agency of the federal government, a public
107
entity, or any other governmental entity; and
108
(b) not dedicated to public use.
109
(18) "Project area" means the geographic area described in a project area plan or draft
110
project area plan where the redevelopment, economic development, or education housing
111
development set forth in the project area plan or draft project area plan takes place or is
112
proposed to take place.
113
(19) "Project area budget" means a multiyear projection of annual or cumulative
114
revenues and expenses and other fiscal matters pertaining to a redevelopment, economic
115
development, or education housing development project area that includes:
116
(a) the base taxable value of property in the project area;
117
(b) the projected tax increment expected to be generated within the project area;
118
(c) the amount of tax increment expected to be shared with other taxing entities;
119
(d) the amount of tax increment expected to be used to implement the project area plan,
120
including the estimated amount of tax increment to be used for land acquisition, public
121
improvements, infrastructure improvements, and loans, grants, or other incentives to private
122
and public entities;
123
(e) the tax increment expected to be used to cover the cost of administering the project
124
area plan;
125
(f) if the area from which tax increment is to be collected is less than the entire project
126
area, a legal description of the portion of the project area from which tax increment will be
127
collected; and
128
(g) for property that the agency owns and expects to sell, the expected total cost of the
129
property to the agency and the expected selling price.
130
(20) "Project area plan" means a written plan under Part 4, Project Area Plan, that, after
131
its effective date, guides and controls the redevelopment, economic development, or education
132
housing development activities within the project area.
133
(21) "Property tax" includes privilege tax and each levy on an ad valorem basis on
134
tangible or intangible personal or real property.
135
(22) "Public entity" means:
136
(a) the state, including any of its departments or agencies; or
137
(b) a political subdivision of the state, including a county, city, town, school district,
138
special district, local district, or interlocal cooperation entity.
139
(23) "Public input hearing" means the public hearing required under Subsection
140
17B-4-402
(1)(h)(ii) regarding a proposed redevelopment project.
141
(24) "Record property owner" or "record owner of property" means the owner of real
142
property as shown on the records of the recorder of the county in which the property is located
143
and includes a purchaser under a real estate contract if the contract is recorded in the office of
144
the recorder of the county in which the property is located or the purchaser gives written notice
145
of the real estate contract to the agency.
146
(25) "Redevelopment" means the development activities under a project area plan
147
within a redevelopment project area, including:
148
(a) planning, design, development, demolition, clearance, construction, rehabilitation,
149
or any combination of these, of part or all of a project area;
150
(b) the provision of residential, commercial, industrial, public, or other structures or
151
spaces, including recreational and other facilities incidental or appurtenant to them;
152
(c) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
153
any combination of these, existing structures in a project area;
154
(d) providing open space, including streets and other public grounds and space around
155
buildings;
156
(e) providing public or private buildings, infrastructure, structures, and improvements;
157
and
158
(f) providing improvements of public or private recreation areas and other public
159
grounds.
160
(26) "Superfund site":
161
(a) means an area included in the National Priorities List under the Comprehensive
162
Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
163
(b) includes an area formerly included in the National Priorities List, as described in
164
Subsection (26)(a), but removed from the list following remediation that leaves on site the
165
waste that caused the area to be included in the National Priorities List.
166
(27) "Survey area" means an area designated by a survey area resolution for study to
167
determine whether one or more redevelopment projects within the area are feasible.
168
(28) "Survey area resolution" means a resolution adopted by the agency board under
169
Subsection
17B-4-401
(1)(a) designating a survey area.
170
(29) (a) "Tax increment" means, except as provided in Subsection (29)(b), the
171
difference between:
172
(i) the amount of property tax revenues generated each tax year by all taxing entities
173
from the area within a project area designated in the project area plan as the area from which
174
tax increment is to be collected, using the current assessed value of the property; and
175
(ii) the amount of property tax revenues that would be generated from that same area
176
using the base taxable value of the property.
177
(b) "Tax increment" does not include taxes levied and collected under Section
178
59-2-906.1
on or after January 1, 1994 upon the taxable property in the project area unless:
179
(i) the project area plan was adopted before May 4, 1993, whether or not the project
180
area plan was subsequently amended; and
181
(ii) the taxes were pledged to support bond indebtedness or other contractual
182
obligations of the agency.
183
(30) "Taxing entity" means a public entity that levies a tax on property within a project
184
area or proposed project area.
185
(31) "Taxing entity committee" means a committee representing the interests of taxing
186
entities, created as provided in Section
17B-4-1002
.
187
Section 2.
Section
17B-4-402
is amended to read:
188
17B-4-402. Process for adopting project area plan -- Prerequisites -- Restrictions.
189
(1) In order to adopt a project area plan, after adopting a resolution under Subsection
190
17B-4-401
(1) the agency shall:
191
(a) prepare a draft of a project area plan and conduct any examination, investigation,
192
and negotiation regarding the project area plan that the agency considers appropriate;
193
(b) request input on the draft project area plan from the planning commission of the
194
community in which the proposed project area is located;
195
(c) make the draft project area plan available to the public at the agency's offices during
196
normal business hours;
197
(d) provide notice of the plan hearing as provided in Sections
17B-4-702
and
198
17B-4-704
;
199
(e) hold a public hearing on the draft project area plan and, at that public hearing:
200
(i) allow public comment on:
201
(A) the draft project area plan; and
202
(B) whether the draft project area plan should be revised, approved, or rejected; and
203
(ii) receive all written and hear all oral objections to the draft project area plan;
204
(f) before holding the plan hearing, provide an opportunity for the State Board of
205
Education and each taxing entity that levies a tax on property within the proposed project area
206
to consult with the agency regarding the draft project area plan;
207
(g) if applicable, hold the election required under Subsection
17B-4-406
(3);
208
(h) for a redevelopment project area plan:
209
(i) comply with the requirements of Part 6, Blight Determination in Redevelopment
210
Project Areas;
211
(ii) before providing notice of the plan hearing, hold at least one public hearing to:
212
(A) inform the public about each area being considered for a redevelopment project
213
area; and
214
(B) allow public input into agency deliberations on proposing each redevelopment
215
project area;
216
(iii) select one or more project areas comprising part or all of the survey area; and
217
(iv) before sending the first notice to assessment owners of property for a public input
218
hearing, blight hearing, or combined public input and blight hearing, prepare and adopt
219
guidelines setting forth and governing the reasonable opportunities of record property owners
220
and tenants to participate in the redevelopment;
221
(i) after holding the plan hearing, at the same meeting or at a subsequent meeting
222
consider:
223
(i) the oral and written objections to the draft project area plan and evidence and
224
testimony for or against adoption of the draft project area plan; and
225
(ii) whether to revise, approve, or reject the draft project area plan;
226
(j) subject to Subsection (5), approve the draft project area plan, with or without
227
revisions, as the project area plan by a resolution that complies with Section
17B-4-407
; and
228
(k) submit the project area plan to the community legislative body for adoption.
229
(2) An agency may not propose a project area plan under Subsection (1) unless the
230
community in which the proposed project area is located:
231
(a) has a planning commission; and
232
(b) has adopted a general plan under:
233
(i) if the community is a city or town, Title 10, Chapter 9, Part 3, General Plan; or
234
(ii) if the community is a county, Title 17, Chapter 27, Part 3, General Plan.
235
(3) (a) Subject to Subsection (3)(b), an agency board may not approve a project area
236
plan more than one year after:
237
(i) for a redevelopment project area plan involving the use of eminent domain,
238
adoption of a resolution making a finding of blight under Subsection
239
17B-4-601
[(4)(b)](1)(d)(ii); or
240
(ii) for an economic development or education housing development project area plan,
241
the date of the plan hearing.
242
(b) If a project area plan is submitted to an election under Subsection
17B-4-406
(3),
243
the time between the plan hearing and the date of the election does not count for purposes of
244
calculating the year period under Subsection (3)(a).
245
(4) (a) Except as provided in Subsection (4)(b), a draft project area plan may not be
246
modified to add real property to the proposed project area unless the board holds a plan hearing
247
to consider the addition and gives notice of the plan hearing as required under Sections
248
17B-4-702
and
17B-4-704
.
249
(b) The notice and hearing requirements under Subsection (4)(a) do not apply to a draft
250
project area plan being modified to add real property to the proposed project area if:
251
(i) the property is contiguous to the property already included in the proposed project
252
area under the draft project area plan;
253
(ii) the record owner of the property consents to adding the real property to the
254
proposed project area; and
255
(iii) for a redevelopment project area, the property is located within the survey area.
256
(5) From July 1, 2005, through June 30, 2006, an agency may not adopt a project area
257
plan for a redevelopment project unless:
258
(a) before February 15, 2005, the agency has commissioned a blight study; and
259
(b) the blight study commissioned before February 15, 2005, is completed before July
260
1, 2005.
261
Section 3.
Section
17B-4-403
is amended to read:
262
17B-4-403. Project area plan requirements.
263
(1) Each project area plan and draft project area plan shall:
264
(a) describe the boundaries of the project area;
265
(b) contain a general statement of the land uses, layout of principal streets, population
266
densities, and building intensities of the project area and how they will be affected by the
267
redevelopment, economic development, or education housing development;
268
(c) state the standards that will guide the redevelopment, economic development, or
269
education housing development;
270
(d) show how the purposes of this chapter will be attained by the redevelopment,
271
economic development, or education housing development;
272
(e) be consistent with the general plan of the community in which the project area is
273
located and show that the redevelopment, economic development, or education housing
274
development will conform to the community's general plan;
275
(f) if the agency board made a finding of blight under Subsection
276
17B-4-601
[(4)(b)](1)(d)(ii):
277
(i) describe how the redevelopment will reduce or eliminate blight in the project area;
278
and
279
(ii) if the agency is to have the power of eminent domain under the project area plan:
280
(A) provide record owners of property located within the redevelopment project area
281
and their tenants reasonable opportunities to participate in the redevelopment if the record
282
property owner or tenant enters into a participation agreement with the agency;
283
(B) state that the agency has adopted or will adopt guidelines setting forth and
284
governing the opportunities of record property owners and tenants to participate in the
285
redevelopment, as required by Subsection
17B-4-402
(1)(h)(iv); and
286
(C) include a plan for the relocation of any families and persons who will be
287
temporarily or permanently displaced from housing facilities in the redevelopment project area;
288
(g) if the project area plan is for economic development, describe how the economic
289
development will create additional jobs;
290
(h) if the project area plan is for education housing development, describe how the
291
education housing development will meet the needs of the community in which the project area
292
is located;
293
(i) describe any specific project or projects that are the object of the proposed
294
redevelopment, economic development, or education housing development;
295
(j) identify how private developers, if any, will be selected to undertake the
296
redevelopment, economic development, or education housing development and identify each
297
private developer currently involved in the redevelopment, economic development, or
298
education housing development process;
299
(k) contain a time limit of no more than three years after adoption of the project area
300
plan for the agency to commence implementation of the project area plan, unless the project
301
area plan is adopted again as if it were an amended project area plan under Section
17B-4-411
;
302
(l) if the project area plan authorizes the use of eminent domain, contain a time limit of
303
no more than five years after the effective date of the project area plan for the agency to
304
commence acquisition of property through the use of eminent domain;
305
(m) if the project area plan provides for tax increment to be paid to the agency:
306
(i) contain a time limit of no more than 25 years for tax increment to be paid to the
307
agency from the project area unless the taxing entity committee consents to a longer period;
308
and
309
(ii) contain a provision that the project area may not exceed 100 acres of private real
310
property unless:
311
(A) the agency obtains the consent of the taxing entity committee; or
312
(B) the project area is a superfund site;
313
(n) state the reasons for the selection of the project area;
314
(o) describe the physical, social, and economic conditions existing in the project area;
315
(p) provide a financial analysis describing the proposed method of financing the
316
proposed redevelopment, economic development, or education housing development;
317
(q) describe any tax incentives offered private entities for facilities located in the
318
project area;
319
(r) contain the report and state any recommendations of the community's planning
320
commission;
321
(s) include an analysis, as provided in Subsection (2), of whether adoption of the
322
project area plan is:
323
(i) for a redevelopment project area plan, necessary and appropriate to reduce or
324
eliminate blight; or
325
(ii) for an economic development or education housing development project area plan,
326
beneficial under a benefit analysis;
327
(t) if any of the existing buildings or uses in the project area are included in or eligible
328
for inclusion in the National Register of Historic Places or the State Register, state that the
329
agency shall comply with Subsection
9-8-404
(1) as though the agency were a state agency; and
330
(u) include other information that the agency determines to be necessary or advisable.
331
(2) Each analysis under Subsection (1)(s)(ii) shall consider:
332
(a) the benefit of any financial assistance or other public subsidy proposed to be
333
provided by the agency, including:
334
(i) an evaluation of the reasonableness of the costs of economic development or
335
education housing development;
336
(ii) efforts the agency has made or will make to maximize private investment;
337
(iii) the rationale for use of tax increment, including an analysis of whether the
338
proposed development might reasonably be expected to occur in the foreseeable future solely
339
through private investment; and
340
(iv) an estimate of the total amount of tax increment that will be expended in
341
undertaking economic development or education housing development and the length of time
342
for which it will be expended; and
343
(b) the anticipated public benefit to be derived from the economic development or
344
education housing development, including:
345
(i) the beneficial influences upon the tax base of the community;
346
(ii) the associated business and economic activity likely to be stimulated; and
347
(iii) in the case of economic development, the number of jobs or employment
348
anticipated to be generated or preserved.
349
Section 4.
Section
17B-4-411
is amended to read:
350
17B-4-411. Amending the project area plan.
351
(1) An adopted project area plan may be amended as provided in this section.
352
(2) If an agency proposes to amend an adopted project area plan to enlarge a project
353
area:
354
(a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
355
a project area plan apply equally to the proposed amendment as if it were a project area plan;
356
(b) for a pre-July 1, 1993 project area plan, the base year taxable value for the new area
357
added to the project area shall be determined under Subsection
17B-4-102
(4)(a) using the
358
effective date of the amended project area plan;
359
(c) for a post-June 30, 1993 project area plan, the base year taxable value for the new
360
area added to the project area shall be determined under Subsection
17B-4-102
(4)(b) using the
361
date of the taxing entity committee's consent referred to in Subsection (2)(f);
362
(d) if the amended plan is to authorize the use of eminent domain within a new area to
363
be added to the project area:
364
(i) before adopting the amended project area plan the agency must make a finding
365
regarding the existence of blight in the new area proposed to be added, following the
366
procedures set forth in Part 6, Blight Determination in Redevelopment Project Areas, of this
367
chapter; and
368
(ii) for the new area added, the time limit of Subsection
17B-4-403
(1)(l) may be
369
measured from the effective date of the amendment to the project area plan;
370
(e) if the agency made a finding of the existence of blight regarding the project area as
371
originally adopted:
372
(i) it is not necessary to repeat the requirements of Part 6 of this chapter for the original
373
area; and
374
(ii) regarding the area described in the project area plan as originally adopted, the time
375
limit established by Subsection
17B-4-403
(1)(l) for the agency to commence acquisition of
376
property through the use of eminent domain shall not be affected or changed by the
377
amendment; and
378
(f) for a post-June 30, 1993 project area plan, the agency shall obtain the consent of the
379
taxing entity committee before the agency may collect tax increment from the area added to the
380
project area.
381
(3) If a proposed amendment does not propose to enlarge a project area, an agency
382
board may adopt a resolution approving an amendment to an adopted project area plan after:
383
(a) the agency gives notice, as provided in Section
17B-4-702
, of the proposed
384
amendment and of the public hearing required by Subsection (3)(b);
385
(b) the agency board holds a public hearing on the proposed amendment that meets the
386
requirements of a plan hearing;
387
(c) the agency obtains the taxing entity committee's consent to the amendment, if the
388
amendment proposes:
389
(i) to enlarge the area within the project area from which tax increment is collected; or
390
(ii) to permit the agency to receive a greater percentage of tax increment [or to receive
391
tax increment for a longer period of time] than allowed under the adopted project area plan;
392
and
393
(iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
394
expand the area from which tax increment is collected to exceed 100 acres of private real
395
property; and
396
(d) the agency obtains the consent of the legislative body or governing board of each
397
taxing entity affected, if the amendment proposes to permit the agency to receive, from less
398
than all taxing entities, a greater percentage of tax increment [or to receive tax increment for a
399
longer period of time, or both,] than allowed under the adopted project area plan.
400
(4) (a) Notwithstanding Subsections (2)(a) and (3) an adopted project area plan may be
401
amended without complying with the notice and public hearing requirements of Subsections
402
(2)(a) and (3)(a) and (b) and without obtaining taxing entity committee approval under
403
Subsection (3)(c)(i) if the amendment:
404
(i) makes a minor adjustment in the legal description of a project area boundary
405
requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
406
or
407
(ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
408
because the agency determines that:
409
(A) the parcel is no longer blighted; or
410
(B) inclusion of the parcel is no longer necessary or desirable to the project area; and
411
(b) An amendment removing a parcel of real property from a project area under
412
Subsection (4)(a)(ii) may not be made without the consent of the record property owner of the
413
parcel being removed.
414
(5) (a) An amendment approved by board resolution under this section may not take
415
effect until adopted by ordinance of the legislative body of the community in which the project
416
area that is the subject of the project area plan being amended is located.
417
(b) Upon a community legislative body passing an ordinance adopting an amendment
418
to a project area plan, the agency whose project area plan was amended shall comply with the
419
requirements of Section
17B-4-410
to the same extent as if the amendment were a project area
420
plan.
421
Section 5.
Section
17B-4-601
is amended to read:
422
17B-4-601. Additional procedure for adopting a redevelopment project area
423
plan.
424
(1) In addition to other applicable requirements for adopting a project area plan, to
425
adopt a redevelopment project area plan the agency shall:
426
[(1)] (a) cause a blight study to be conducted within the survey area as provided in
427
Section
17B-4-602
;
428
[(2)] (b) provide notice of a blight hearing as required under Part 7, Notice
429
Requirements;
430
[(3)] (c) hold a blight hearing as provided in Section
17B-4-603
; and
431
[(4)] (d) after the blight hearing has been held, hold a board meeting, either at the same
432
time as the blight hearing or at a subsequent board meeting, at which the board shall:
433
[(a)] (i) consider:
434
[(i)] (A) the issue of blight and the evidence and information relating to the existence
435
or nonexistence of blight; and
436
[(ii)] (B) whether adoption of one or more redevelopment project area plans should be
437
pursued; and
438
[(b) by resolution] (ii) make a finding regarding the existence of blight in the proposed
439
redevelopment project area.
440
(2) The agency's finding of blight under Subsection (1) has no effect until approved by
441
the taxing entity committee.
442
Section 6.
Section
17B-4-602
is amended to read:
443
17B-4-602. Blight study -- Requirements -- Deadline.
444
(1) Each blight study required under Subsection
17B-4-601
(1)(a) shall:
445
(a) provide data so the board and taxing entity committee may determine:
446
(i) whether the conditions described in Subsections
17B-4-604
(1)(a)(i) and (ii) exist in
447
part or all of the survey area;
448
(ii) whether the factors listed in Subsection
17B-4-604
(1)(a)(iii) are present in the
449
survey area; and
450
(iii) whether the survey area contains a superfund site;
451
(b) include a written report setting forth:
452
(i) the conclusions reached; and
453
(ii) any other information requested by the agency to determine whether a
454
redevelopment project area is feasible; and
455
(c) be completed within one year after the adoption of the survey area resolution.
456
(2) (a) If a blight study is not completed within one year after the adoption of the
457
resolution under Subsection
17B-4-401
(1)(a) designating a survey area, the agency may not
458
approve a redevelopment project area plan based on that blight study unless it first adopts a
459
new resolution under Subsection
17B-4-401
(1)(a).
460
(b) A new resolution under Subsection (2)(a) shall in all respects be considered to be a
461
resolution under Subsection
17B-4-401
(1)(a) adopted for the first time, except that any actions
462
taken toward completing a blight study under the resolution that the new resolution replaces
463
shall be considered to have been taken under the new resolution.
464
Section 7.
Section
17B-4-603
is amended to read:
465
17B-4-603. Blight hearing -- Owners may review evidence of blight.
466
(1) In each hearing required under Subsection
17B-4-601
[(3)](1)(c), the agency shall:
467
(a) permit all evidence of the existence or nonexistence of blight within the proposed
468
redevelopment project area to be presented; and
469
(b) permit each record owner of property located within the proposed redevelopment
470
project area or the record property owner's representative the opportunity to:
471
(i) examine and cross-examine witnesses providing evidence of the existence or
472
nonexistence of blight; and
473
(ii) present evidence and testimony, including expert testimony, concerning the
474
existence or nonexistence of blight.
475
(2) The agency shall allow record owners of property located within a proposed
476
redevelopment project area the opportunity, for at least 30 days before the hearing, to review
477
the evidence of blight compiled by the agency or by the person or firm conducting the blight
478
study for the agency, including any expert report.
479
Section 8.
Section
17B-4-604
is amended to read:
480
17B-4-604. Conditions on board determination of blight -- Conditions of blight
481
caused by the developer.
482
(1) An agency board may not make a finding of blight [in a resolution] under
483
[Subsection ] Section
17B-4-601
[(4)(b)] unless the board finds that the redevelopment project
484
area:
485
(a) (i) contains buildings or improvements used or intended to be used for residential,
486
commercial, industrial, or other urban purposes, or any combination of those uses;
487
(ii) contains buildings or improvements on at least 50% of the number of parcels of
488
private real property whose acreage is at least 50% of the acreage of the private real property
489
within the proposed redevelopment project area; and
490
(iii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of
491
disease, infant mortality, juvenile delinquency, or crime because of any three or more of the
492
following factors:
493
(A) defective character of physical construction;
494
(B) high density of population or overcrowding;
495
(C) inadequate ventilation, light, or spacing between buildings;
496
(D) mixed character and shifting of uses, resulting in obsolescence, deterioration, or
497
dilapidation;
498
(E) economic deterioration or continued disuse;
499
(F) lots of irregular shape or inadequate size for proper usefulness and development, or
500
laying out of lots in disregard of the contours and other physical characteristics of the ground
501
and surrounding conditions;
502
(G) inadequate sanitation or public facilities which may include streets, open spaces,
503
and utilities;
504
(H) areas that are subject to being submerged by water; and
505
(I) existence of any hazardous or solid waste, defined as any substance defined,
506
regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic waste,
507
pollutant, contaminant, or toxic substance, or identified as hazardous to human health or the
508
environment under state or federal law or regulation; or
509
(b) is a superfund site.
510
(2) (a) For purposes of Subsection (1), if a developer involved in the redevelopment
511
project causes a condition listed in Subsection (1)(a)(iii) within the project area, the condition
512
caused by the developer may not be used in the determination of blight.
513
(b) Subsection (2)(a) does not apply to a condition that was caused by an owner or
514
tenant who becomes a developer under Section
17B-4-901
.
515
Section 9.
Section
17B-4-605
is amended to read:
516
17B-4-605. Challenging a finding of blight -- Time limit -- De novo review.
517
(1) If the board makes a finding of blight under [Subsection ] Section
518
17B-4-601
[(4)(b)] and that finding is approved by the taxing entity committee, a record owner
519
of property located within the proposed redevelopment project area may challenge the finding
520
by filing an action with the district court for the county in which the property is located.
521
(2) Each challenge under Subsection (1) shall be filed within 30 days after the [board's
522
adoption of the resolution containing the] taxing entity committee approves the board's finding
523
of blight.
524
(3) In each action under this section:
525
(a) the district court shall review de novo the finding of blight; and
526
(b) the agency maintains the burden of proof regarding the existence of blight.
527
Section 10.
Section
17B-4-1002
is amended to read:
528
17B-4-1002. Taxing entity committee.
529
(1) Each agency that adopts or proposes to adopt a post-June 30, 1993 project area plan
530
shall, and any other agency may, cause a taxing entity committee to be created.
531
(2) (a) (i) Each taxing entity committee shall be composed of:
532
(A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
533
(B) [(I) in counties of the second, third, fourth, fifth, or sixth class,] two representatives
534
appointed by resolution of the legislative body of the county in which the agency is located;
535
[or]
536
[(II) in counties of the first class, two representatives appointed by the county executive
537
of the county in which the agency is located;]
538
(C) if the agency was created by a city or town, two representatives appointed by
539
resolution of the legislative body of that city or town;
540
(D) one representative appointed by the State Board of Education; and
541
(E) one representative selected by majority vote of the legislative bodies or governing
542
boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
543
represent the interests of those taxing entities on the taxing entity committee.
544
(ii) (A) If the agency boundaries include only one school district, that school district
545
shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
546
(B) If the agency boundaries include more than one school district, those school
547
districts shall jointly appoint the two school district representatives under Subsection
548
(2)(a)(i)(A).
549
(b) (i) Each taxing entity committee representative under Subsection (2) shall be
550
appointed within 30 days after the agency provides notice of the creation of the taxing entity
551
committee.
552
(ii) If a representative is not appointed within the time required under Subsection
553
(2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
554
place of the missing representative until that representative is appointed.
555
(c) (i) A taxing entity committee representative may be appointed for a set term or
556
period of time, as determined by the appointing authority under Subsection (2)(a)(i).
557
(ii) Each taxing entity committee representative shall serve until a successor is
558
appointed and qualified.
559
(d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
560
an initial appointment or an appointment to replace an already serving representative, the
561
appointing authority shall:
562
(A) notify the agency in writing of the name and address of the newly appointed
563
representative; and
564
(B) provide the agency a copy of the resolution making the appointment or, if the
565
appointment is not made by resolution, other evidence of the appointment.
566
(ii) Each appointing authority of a taxing entity committee representative under
567
Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
568
representative appointed by that appointing authority.
569
(3) A taxing entity committee represents all taxing entities regarding a project area and
570
may:
571
(a) cast votes that will be binding on all taxing entities;
572
(b) negotiate with the agency concerning a draft project area plan;
573
(c) approve or disapprove a project area budget as provided in Section
17B-4-505
;
574
(d) approve or disapprove amendments to a project area budget as provided in Section
575
17B-4-507
;
576
(e) approve exceptions to the limits on the value and size of a project area imposed
577
under this chapter;
578
(f) approve exceptions to the percentage of tax increment and the period of time that
579
tax increment is paid to the agency as provided in this part;
580
(g) approve the use of tax increment for access and utilities outside of a project area
581
that the agency and community legislative body determine to be of benefit to the project area,
582
as provided in Subsection
17B-4-1007
(1)(a)(ii)(D);
583
(h) waive the restrictions imposed by Subsection
17B-4-503
(2)(a); and
584
(i) give other taxing entity committee approval or consent required or allowed under
585
this chapter.
586
(4) A quorum of a taxing entity committee consists of:
587
(a) except as provided in Subsection (4)(b):
588
(i) if the project area is located within a city or town, five members; or
589
(ii) if the project area is not located within a city or town, four members; or
590
(b) for an education housing development project area as to which the school district
591
has elected under Subsection
17B-4-1004
(5) not to allow the agency to be paid tax increment
592
from school district tax revenues:
593
(i) if the project area is located within a city or town, three members; or
594
(ii) if the project area is not located within a city or town, two members.
595
(5) Taxing entity committee approval, consent, or other action requires the affirmative
596
vote of a majority of a quorum present at a taxing entity committee meeting.
597
(6) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
598
Public Meetings.
599
(7) Each time a school district representative or a representative of the State Board of
600
Education votes as a member of a taxing entity committee to allow an agency to be paid tax
601
increment or to increase the amount or length of time that an agency may be paid tax
602
increment, that representative shall, within 45 days after the vote, provide to the
603
representative's respective school board an explanation in writing of the representative's vote
604
and the reasons for the vote.
605
(8) (a) The assessor of each county in which the agency is located shall provide a
606
written report to the taxing entity committee stating, with respect to property within each
607
project area:
608
(i) the base taxable value, as adjusted by any adjustments under Section 17B-4-1006;
609
and
610
(ii) the assessed value.
611
(b) With respect to the information required under Subsection (8)(a), the assessor shall
612
provide:
613
(i) actual amounts for each year from the adoption of the project area plan to the time
614
of the report; and
615
(ii) estimated amounts for each year beginning the year after the time of the report and
616
ending the time that the agency expects no longer to be paid tax increment from property
617
within the project area.
618
(c) The assessor of the county in which the agency is located shall provide a report
619
under this Subsection (8):
620
(i) at least annually; and
621
(ii) upon request of the taxing entity committee, before a taxing entity committee
622
meeting at which the committee will consider whether to allow the agency to be paid tax
623
increment or to increase the amount [or length of time] that the agency may be paid tax
624
increment.
625
Section 11.
Section
17B-4-1003
is amended to read:
626
17B-4-1003. Tax increment under a pre-July 1, 1993 project area plan.
627
(1) This section applies to tax increment under a pre-July 1, 1993 project area plan
628
only.
629
(2) (a) Beginning with the first tax year after April 1, 1983 for which an agency accepts
630
tax increment, an agency may be paid:
631
(i) (A) for the first through the fifth tax years, 100% of tax increment;
632
(B) for the sixth through the tenth tax years, 80% of tax increment;
633
(C) for the eleventh through the fifteenth tax years, 75% of tax increment;
634
(D) for the sixteenth through the twentieth tax years, 70% of tax increment; and
635
(E) for the twenty-first through the twenty-fifth tax years, 60% of tax increment; or
636
(ii) for an agency that has caused a taxing entity committee to be created under
637
Subsection
17B-4-1002
(1), any percentage of tax increment up to 100% and for any length of
638
time that the taxing entity committee approves.
639
(b) Notwithstanding any other provision of this section:
640
(i) an agency may be paid 100% of tax increment from a project area for 32 years after
641
April 1, 1983 to pay principal and interest on agency indebtedness incurred before April 1,
642
1983, even though the size of the project area from which tax increment is paid to the agency
643
exceeds 100 acres of privately owned property under a project area plan adopted on or before
644
April 1, 1983; and
645
(ii) for up to 32 years after April 1, 1983, an agency debt incurred before April 1, 1983
646
may be refinanced and paid from 100% of tax increment if the principal amount of the debt is
647
not increased in the refinancing.
648
(3) (a) For purposes of this Subsection (3), "additional tax increment" means the
649
difference between 100% of tax increment for a tax year and the amount of tax increment an
650
agency is paid for that tax year under the percentages and time periods specified in Subsection
651
(2)(a).
652
(b) Notwithstanding the tax increment percentages and time periods in Subsection
653
(2)(a) and Subsection
17B-4-403
(1)(m)(i), an agency may be paid additional tax increment for
654
a period ending 32 years after the first tax year after April 1, 1983 for which the agency
655
receives tax increment from the project area if:
656
(i) (A) the additional tax increment is used solely to pay all or part of the value of the
657
land for and the cost of the installation and construction of a publicly or privately owned
658
convention center or sports complex or any building, facility, structure, or other improvement
659
related to the convention center or sports complex, including parking and infrastructure
660
improvements;
661
(B) construction of the convention center or sports complex or related building,
662
facility, structure, or other improvement is commenced on or before June 30, 2002;
663
(C) the additional tax increment is pledged to pay all or part of the value of the land for
664
and the cost of the installation and construction of the convention center or sports complex or
665
related building, facility, structure, or other improvement; and
666
(D) the agency board and the community legislative body have determined by
667
resolution that the convention center or sports complex is:
668
(I) within and a benefit to a project area;
669
(II) not within but still a benefit to a project area; or
670
(III) within a project area in which substantially all of the land is publicly owned and a
671
benefit to the community;
672
(ii) (A) the additional tax increment is used to pay some or all of the cost of the land
673
for and installation and construction of a recreational facility, as defined in Section
59-12-702
,
674
or a cultural facility, including parking and infrastructure improvements related to the
675
recreational or cultural facility, whether or not the facility is located within a project area; and
676
(B) construction of the recreational or cultural facility is commenced on or before
677
[June 30, 2006] December 31, 2005; and
678
(C) the additional tax increment is pledged on or before [June 30, 2006] July 1, 2005,
679
to pay all or part of the cost of the land for and the installation and construction of the
680
recreational or cultural facility, including parking and infrastructure improvements related to
681
the recreational or cultural facility[;].
682
[(iii) the additional tax increment is used to pay all or part of the cost of acquiring,
683
constructing, extending, maintaining, or repairing lines, facilities, and equipment for providing
684
cable television service and public telecommunications service, as defined in Section
685
10-18-102
, whether or not the lines, facilities, and equipment are located within a project area
686
and subject to Subsection (3)(d);]
687
[(iv) (A) the additional tax increment is used solely to pay all or part of the cost of the
688
installation, construction, or reconstruction of the 11400 South or 12300 South interchange on
689
I-15 in Salt Lake County, whether or not the interchange is located within a project area;]
690
[(B) construction on the interchange is commenced on or before June 30, 2006; and]
691
[(C) the additional tax increment is pledged on or before June 30, 2006 to pay all or
692
part of the cost of the installation, construction, or reconstruction of the interchange; or]
693
[(v) (A) the additional tax increment is used solely to pay part of the cost of relocating
694
an agriculture related business, except a relocation resulting from the agency's exercise of
695
eminent domain, from a city of the first class to another location within a county of the third,
696
fourth, fifth, or sixth class, whether or not the agriculture related business is located within or is
697
being relocated to a project area;]
698
[(B) the process of relocating the agriculture related business is commenced on or
699
before December 31, 2002; and]
700
[(C) the additional tax increment is pledged on or before December 31, 2002 to pay
701
part of the cost of relocating the agriculture related business.]
702
(c) Notwithstanding Subsection (3)(b), a school district may not, without its consent,
703
be paid less tax increment because of application of Subsection (3)(b) than it would have been
704
paid without that subsection.
705
[(d) (i) Notwithstanding Title 10, Chapter 18, Municipal Cable Television and Public
706
Telecommunications Services, an agency whose tax increment is used under Subsection
707
(3)(b)(iii) may not provide cable television service or public telecommunications service, as
708
defined in Section
10-18-102
.]
709
[(ii) Each agency that uses tax increment under Subsection (3)(b)(iii) shall provide the
710
services it provides using that tax increment in a nonpreferential and nondiscriminatory
711
manner.]
712
(4) Notwithstanding any other provision of this section, an agency may use tax
713
increment received under Subsection (2) for any of the uses indicated in Subsection (3).
714
Section 12.
Section
17B-4-1004
is amended to read:
715
17B-4-1004. Tax increment under a post-June 30, 1993 project area plan.
716
(1) This section applies to tax increment under a post-June 30, 1993 project area plan
717
only.
718
(2) An agency board may provide in the project area budget for the agency to be paid:
719
(a) if 20% of the project area budget is allocated for housing under Section
17B-4-504
:
720
(i) 100% of annual tax increment for 15 years;
721
(ii) 75% of annual tax increment for 24 years; or
722
(iii) if approved by the taxing entity committee, any percentage of tax increment up to
723
100%, or any specified dollar amount, for any period of time; or
724
(b) if 20% of the project area budget is not allocated for housing under Section
725
17B-4-504
:
726
(i) 100% of annual tax increment for 12 years;
727
(ii) 75% of annual tax increment for 20 years; or
728
(iii) if approved by the taxing entity committee, any percentage of tax increment up to
729
100%, or any specified dollar amount, for any period of time.
730
(3) (a) An agency may, without the approval of the taxing entity committee, elect to be
731
paid 100% of annual tax increment for each year beyond the periods specified in Subsection (2)
732
to a maximum of 25 years, including the years the agency is paid tax increment under
733
Subsection (2), if:
734
(i) for an agency in a city in which is located all or a portion of an interchange on I-15
735
or that would directly benefit from an interchange on I-15:
736
(A) the tax increment paid to the agency during the additional years is used to pay
737
some or all of the cost of the installation, construction, or reconstruction of:
738
(I) an interchange on I-15, whether or not the interchange is located within a project
739
area; or
740
(II) frontage and other roads connecting to the interchange, as determined by the
741
Department of Transportation created under Section
72-1-201
and the Transportation
742
Commission created under Section
72-1-301
, whether or not the frontage or other road is
743
located within a project area; and
744
(B) the installation, construction, or reconstruction of the interchange or frontage and
745
other roads has begun on or before June 30, 2002;
746
(ii) for an agency in a city of the first or second class:
747
(A) the tax increment paid to the agency during the additional years is used to pay
748
some or all of the cost of the land for and installation and construction of a recreational facility,
749
as defined in Section
59-12-702
, or a cultural facility, including parking and infrastructure
750
improvements related to the recreational or cultural facility, whether or not the facility is
751
located within a project area; and
752
(B) the installation or construction of the recreational or cultural facility has begun on
753
or before June 30, 2002.
754
(b) Notwithstanding any other provision of this section, an agency may use tax
755
increment received under Subsection (2) for any of the uses indicated in this Subsection (3).
756
(c) Notwithstanding Subsection (3)(a), a school district may not, without its consent,
757
receive less tax increment because of application of Subsection (3)(a) than it would have
758
received without that subsection.
759
(4) [Unless the taxing entity committee consents, an] An agency may not be paid tax
760
increment from the project area for more than 25 years.
761
(5) (a) A school district that levies a tax on property located within a project area under
762
an education housing development project area plan may elect not to allow the agency to be
763
paid tax increment from the property tax revenues generated by the school district.
764
(b) An election under Subsection (5)(a) shall be made in writing to the agency before
765
the taxing entity committee's approval of the project area budget.
766
(c) If a school district makes an election under this Subsection (5):
767
(i) the agency may not be paid tax increment from property tax revenues generated by
768
the school district; and
769
(ii) the school district representatives and the State Board of Education representative
770
on the taxing entity committee may not vote on any matter concerning the education housing
771
development project area or project area budget.
772
Section 13.
Section
17B-4-1007
is amended to read:
773
17B-4-1007. Allowable uses of tax increment.
774
(1) (a) An agency may use tax increment:
775
(i) for any of the purposes for which the use of tax increment is authorized under this
776
chapter;
777
(ii) to pay for, including financing or refinancing, all or part of:
778
(A) the redevelopment, economic development, or education housing development in
779
the project area from which the tax increment funds were collected;
780
(B) housing expenditures, projects, or programs as provided in Section
17B-4-1009
or
781
17B-4-1010
;
782
(C) with the consent of the community legislative body and subject to Subsection (4),
783
the value of the land for and the cost of the installation and construction of any publicly owned
784
building, facility, structure, landscaping, or other improvement within the project area from
785
which the tax increment funds were collected; and
786
(D) with the consent of the community legislative body and the taxing entity
787
committee, the cost of the installation of publicly owned utilities and access outside the project
788
area from which the tax increment funds were collected if the agency board and the community
789
legislative body determine by resolution that the utilities and access are of benefit to the project
790
area; or
791
(iii) for administrative, overhead, legal, and other operating expenses of the agency.
792
(b) The determination of the agency board and the community legislative body under
793
Subsection (1)(a)(ii)(D) regarding benefit to the project area shall be final and conclusive.
794
(2) (a) An agency may contract with the community that created the agency or another
795
public entity to use tax increment to reimburse the cost of items authorized by this chapter to be
796
paid by the agency that have been or will be paid by the community or other public entity.
797
(b) If land has been or will be acquired or the cost of an improvement has been or will
798
be paid by another public entity and the land or improvement has been or will be leased to the
799
community, an agency may contract with and make reimbursement from tax increment funds to
800
the community.
801
[(3) An agency created by a city of the first or second class may use tax increment from
802
one project area in another project area to pay all or part of the value of the land for and the
803
cost of installation and construction of a publicly or privately owned convention center or
804
sports complex or any building, facility, structure, or other improvement related to the
805
convention center or sports complex, including parking and infrastructure improvements, if:]
806
[(a) construction on the convention center or sports complex or related building,
807
facility, structure, or other improvement begins on or before June 30, 2002; and]
808
[(b) the tax increment is pledged to pay all or part of the value of the land for and the
809
cost of the installation and construction of the convention center or sports complex or related
810
building, facility, structure, or other improvement.]
811
[(4)] (3) Notwithstanding any other provision of this chapter, an agency may not use
812
tax increment to construct municipal buildings, courts or other judicial buildings, or fire
813
stations.
814
(4) Notwithstanding any other provision of this chapter, an agency may not use tax
815
increment to pay any of the cost of the land, infrastructure, or construction of a stadium or
816
arena.
[Bill Documents][Bills Directory]