Agency: Capital Budget

Line Item: Land Banking

Function

By definition, any purchase of real property where an appropriation is requested to fund the purchase is a capital development. The Legislature uses this line item to fund land acquisitions. Land banking is the process of buying and holding land for future sale or development. Parcels of land desirable for land banking are often those that lie directly in the growth path of rapidly developing communities. The state's aim in land banking is to buy and hold land for future state use so as to avoid paying high prices that occur in rapidly expanding areas. The state's growing population causes increased demand for state services while reducing the supply of land available to state government.

The Legislature created the Land Banking line item during the 2008 General Session.

Funding Detail

During the 2008 General Session the Legislature appropriated a total of $5,033,000, with $3,800,000 coming from the General Fund, to acquire two pieces of property: a parcel in Ogden for a future Juvenile Court building, and a parcel in Orem to expand the UVSC campus. The Ogden property was financed entirely with the General Fund. The UVSC property was financed with $550,000 from the General Fund, $233,000 from the State Debt Collection Fund, and $1,000,000 from the Contingency Reserve Fund. State appropriations paid approximately half of the UVSC parcel's cost; UVSC funded the other half with institutional monies.