First Substitute S.B. 53

1

REDEVELOPMENT AGENCY AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Craig L. Taylor
5 Ed P. Mayne

6 AN ACT RELATING TO SPECIAL DISTRICTS; ELIMINATING THE EMINENT DOMAIN
7 AUTHORITY OF REDEVELOPMENT AGENCIES; MODIFYING THE DEFINITION OF
8 BLIGHT; ELIMINATING THE EXCEPTION TO THE DEVELOPER-CAUSED BLIGHT
9 PROVISIONS; MODIFYING THE PROVISIONS RELATING TO AN OWNER'S
10 OPPORTUNITY TO PARTICIPATE IN THE REDEVELOPMENT PLAN; ELIMINATING
11 A TENANT'S OPPORTUNITY TO PARTICIPATE IN THE REDEVELOPMENT PLAN;
12 MODIFYING THE AMOUNT OF TAX INCREMENT FINANCING AN AGENCY MAY
13 COLLECT; MODIFYING THE LENGTH OF TIME AN AGENCY MAY COLLECT TAX
14 INCREMENT FINANCING; MAKING CONFORMING CORRECTIONS; MAKING
15 TECHNICAL CORRECTIONS; AND PROVIDING AN EFFECTIVE DATE.
16 This act affects sections of Utah Code Annotated 1953 as follows:
17 AMENDS:
18 17A-2-1202, as last amended by Chapter 320, Laws of Utah 1995
19 17A-2-1208, as repealed and reenacted by Chapter 50, Laws of Utah 1993
20 17A-2-1210, as last amended by Chapter 50, Laws of Utah 1993
21 17A-2-1210.5, as enacted by Chapter 50, Laws of Utah 1993
22 17A-2-1211, as last amended by Chapter 249, Laws of Utah 1996
23 17A-2-1214, as last amended by Chapter 50, Laws of Utah 1993
24 17A-2-1222, as last amended by Chapter 249, Laws of Utah 1996
25 17A-2-1228, as last amended by Chapter 320, Laws of Utah 1995
26 17A-2-1238, as last amended by Chapter 320, Laws of Utah 1995

1 17A-2-1239, as last amended by Chapter 50, Laws of Utah 1993
2 17A-2-1241, as renumbered and amended by Chapter 186, Laws of Utah 1990
3 17A-2-1247.5, as last amended by Chapter 249, Laws of Utah 1996
4 REPEALS:
5 17A-2-1209, as repealed and reenacted by Chapter 50, Laws of Utah 1993
6 Be it enacted by the Legislature of the state of Utah:
7 Section 1. Section 17A-2-1202 is amended to read:
8 17A-2-1202. Definitions.
9 As used in this part:
10 (1) "Agency" means the legislative body of a community when designated by the
11 legislative body itself to act as a redevelopment agency.
12 (2) "Base tax amount" means that portion of taxes that would be produced by the rate upon
13 which the tax is levied each year by or for all taxing agencies upon the total sum of the taxable
14 value of the taxable property in a redevelopment project area as shown upon the assessment roll
15 used in connection with the taxation of the property by the taxing agencies, last equalized before
16 the effective date of the:
17 (a) ordinance approving the plan for projects for which a preliminary plan has been
18 prepared prior to April 1, 1993, and for which all of the following have occurred prior to July 1,
19 1993: the agency blight study has been completed, and a hearing under Section 17A-2-1221 has
20 in good faith been commenced by the agency; or
21 (b) the first approved project area budget for projects for which a preliminary plan has
22 been prepared after April 1, 1993, and for which any of the following have occurred after July 1,
23 1993: the completion of the agency blight study, and the good faith commencement of the hearing
24 by the agency under Section 17A-2-1221; and
25 (c) as adjusted by Sections 17A-2-1250.5, 17A-2-1251, 17A-2-1252, and 17A-2-1253.
26 (3) "Blighted area" or "blight" means:
27 (a) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
28 for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
29 completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
30 agency, an area used or intended to be used for residential, commercial, industrial, or other
31 purposes or any combination of such uses which is characterized by two or more of the following

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1 factors:
2 (i) defective design and character of physical construction;
3 (ii) faulty interior arrangement and exterior spacing;
4 (iii) high density of population and overcrowding;
5 (iv) inadequate provision for ventilation, light, sanitation, open spaces, and recreation
6 facilities;
7 (v) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
8 (vi) economic dislocation, deterioration, or disuse, resulting from faulty planning;
9 (vii) subdividing and sale of lots of irregular form and shape and inadequate size for proper
10 usefulness and development;
11 (viii) laying out of lots in disregard of the contours and other physical characteristics of
12 the ground and surrounding conditions;
13 (ix) existence of inadequate streets, open spaces, and utilities; and
14 (x) existence of lots or other areas which are subject to being submerged by water.
15 (b) For projects for which a preliminary plan has been prepared after April 1, 1993, and
16 for which any of the following have occurred after July 1, 1993: the completion of the agency
17 blight study, and the good faith commencement of the hearing by the agency under Section
18 17A-2-1221, when a finding of blight is required, an area with buildings [or] and improvements,
19 used or intended to be used for residential, commercial, industrial, or other urban purposes or any
20 combination of these uses, which:
21 (i) contains buildings and improvements, not including out-buildings, on at least 50% of
22 the number of parcels and the area of those parcels is at least 50% of the project area; and
23 (ii) is unfit or unsafe to occupy or [may be] is conducive to ill health, transmission of
24 disease, infant mortality, juvenile delinquency, or crime because of any three or more of the
25 following factors:
26 (A) defective character of physical construction;
27 (B) high density of population and overcrowding;
28 (C) inadequate provision for ventilation, light, sanitation, and open spaces;
29 (D) mixed character and shifting of uses which results in obsolescence, deterioration, or
30 dilapidation;
31 (E) economic deterioration or continued disuse;

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1 (F) lots of irregular form and shape and inadequate size for proper usefulness and
2 development, or laying out of lots in disregard of the contours and other physical characteristics
3 of the ground and surrounding conditions;
4 (G) existence of inadequate streets, open spaces, and utilities; and
5 (H) existence of lots or other areas which are subject to being submerged by water[; and].
6 [(I) existence of any hazardous or solid waste defined as any substance defined, regulated,
7 or listed as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic waste,"
8 "pollutant," "contaminant," or "toxic substances," or identified as hazardous to human health or
9 the environment under state or federal law or regulation.]
10 (c) For purposes of Subsection (3)(b), if a developer involved in the project area
11 redevelopment or economic development causes any of the factors of blight listed in Subsection
12 (b)(ii), the developer-caused blight may not be used as one of the three required elements of blight.
13 [Notwithstanding the provisions of this section, any blight caused by owners or tenants who may
14 become developers under the provisions of Section 17A-2-1214 shall not be subject to this
15 subsection.]
16 (4) "Bond" means any bonds, notes, interim certificates, debentures, or other obligations
17 issued by an agency.
18 (5) "Community" means a city, county, town, or any combination of these.
19 (6) "Economic development" means the planning or replanning, design or redesign,
20 development or redevelopment, construction or reconstruction, rehabilitation, business relocation
21 or any combination of these, within all or part of a project area and the provision of office,
22 industrial, manufacturing, warehousing, distribution, parking, public or other facilities, or
23 improvements as may benefit the state or the community in order for a public or private employer
24 to create additional jobs within the state.
25 (7) "Federal government" means the United States or any of its agencies or
26 instrumentalities.
27 (8) "Legislative body" means the city council, city commission, county legislative body,
28 or other legislative body of the community.
29 (9) "Planning commission" means a city, town, or county planning commission established
30 pursuant to law or charter.
31 (10) "Project area" or "redevelopment project area" means an area of a community within

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1 a designated redevelopment survey area, the redevelopment of which is necessary to eliminate
2 blight or provide economic development and which is selected by the redevelopment agency
3 pursuant to this part.
4 (11) "Project area budget" means, for projects for which a preliminary plan has been
5 prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993:
6 the completion of the agency blight study, and the good faith commencement of the hearing by the
7 agency under Section 17A-2-1221, a multiyear budget for the redevelopment plan prepared by the
8 redevelopment agency showing:
9 (a) the base year taxable value of the project area;
10 (b) the projected tax increment of the project area, including the amount of any tax
11 increment shared with other taxing districts which shall include:
12 (i) the tax increment expected to be used to implement the redevelopment plan including
13 the estimated amount of tax increment to be used for land acquisition, public, and infrastructure
14 improvements, and loans, grants, or tax incentives to private and public entities; and
15 (ii) the total principal amount of bonds expected to be issued by the redevelopment agency
16 to finance the project;
17 (c) the tax increment expected to be used to cover the cost of administering the project area
18 plan;
19 (d) a legal description for the portion of the project area from which tax increment will be
20 collected pursuant to Section 17A-2-1247.5, if the area from which tax increment is to be collected
21 is less than the entire project area; and
22 (e) for properties to be sold, the expected total cost of the property to the agency and the
23 expected sales price to be paid by the purchaser.
24 (12) "Public body" means the state, or any city, county, district, authority, or any other
25 subdivision or public body of the state, their agencies, instrumentalities, or political subdivisions.
26 (13) (a) "Redevelopment" means the planning, development, replanning, redesign,
27 clearance, reconstruction, or rehabilitation, or any combination of these, of all or part of a project
28 area, and the provision of residential, commercial, industrial, public, or other structures or spaces
29 that are appropriate or necessary to eliminate blight in the interest of the general welfare, including
30 recreational and other facilities incidental or appurtenant to them.
31 (b) "Redevelopment" includes:

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1 (i) the alteration, improvement, modernization, reconstruction, or rehabilitation, or any
2 combination of these, of existing structures in a project area;
3 (ii) provision for open space types of use, such as streets and other public grounds and
4 space around buildings, and public or private buildings, structures and improvements, and
5 improvements of public or private recreation areas and other public grounds; and
6 (iii) the replanning or redesign or original development of undeveloped areas as to which
7 either of the following conditions exist:
8 (A) the areas are stagnant or improperly utilized because of defective or inadequate street
9 layout, faulty lot layout in relation to size, shape, accessibility, or usefulness, or for other causes;
10 or
11 (B) the areas require replanning and land assembly for reclamation or development in the
12 interest of the general welfare.
13 (14) "Redevelopment plan" means a plan developed by the agency and adopted by
14 ordinance of the governing body of a community to guide and control redevelopment and
15 economic development undertakings in a specific project area.
16 (15) "Redevelopment survey area" or "survey area" means an area of a community
17 designated by resolution of the legislative body or the governing body of the agency for study by
18 the agency to determine if blight exists if redevelopment is planned, and if a redevelopment or
19 economic development project or projects within the area are feasible.
20 (16) "Taxes" include all levies on an ad valorem basis upon land, real property, personal
21 property, or any other property, tangible or intangible.
22 (17) "Taxing agencies" mean the public entities, including the state, any city, county, city
23 and county, any school district, special district, or other public corporation, which levy property
24 taxes within the project area.
25 (18) "Tax increment" means that portion of the levied taxes each year in excess of the base
26 tax amount which excess amount is to be paid into a special fund of an agency.
27 Section 2. Section 17A-2-1208 is amended to read:
28 17A-2-1208. Blight study -- Findings of blight.
29 [(1) If the redevelopment plan will authorize the use of eminent domain, the
30 redevelopment project area described in the redevelopment plan must be a blighted area and a
31 finding that the area is a blighted area must be made by the agency at the time a preliminary plan

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1 is prepared, and must be made by the legislative body prior to adopting the plan under Section
2 17A-2-1225.]
3 [(2)] (1) If required, the blight study shall be initiated by resolution of the agency. The
4 resolution shall contain:
5 (a) a statement that the area requires study to determine whether blight exists as defined
6 in Section 17A-2-1202;
7 (b) a description of the boundaries of the area to be studied; and
8 (c) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
9 which any of the following have occurred after July 1, 1993: the completion of the agency blight
10 study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221,
11 a time limit not to exceed one year within which the study must be completed.
12 [(3)] (2) (a) The agency always maintains the burden of proof regarding a finding of blight,
13 whether that finding is to be determined by the agency under Section 17A-2-1206, or by a
14 governing body under Section 17A-2-1225.
15 (b) Within 30 days after a finding of blight under Section 17A-2-1206 or 17A-2-1225, an
16 owner may appeal a finding of blight by an agency or governing body to a court of competent
17 jurisdiction. The court shall review that finding of blight de novo, and the agency shall maintain
18 the burden of proof regarding blight.
19 Section 3. Section 17A-2-1210 is amended to read:
20 17A-2-1210. Limits on value and size of project areas using tax increment financing
21 without consent of local taxing agencies -- Time limits.
22 (1) (a) A redevelopment plan adopted after April 1, 1983, and projects for which a
23 preliminary plan has been prepared prior to April 1, 1993, and for which all of the following have
24 occurred prior to July 1, 1993: the agency blight study has been completed, and a hearing under
25 Section 17A-2-1221 has in good faith been commenced by the agency, may not incorporate the
26 provisions of tax increment financing under Section 17A-2-1247 if the taxable value of the project
27 area described in the redevelopment plan, when added to the total taxable value as shown on the
28 last equalized assessment roll certified by the county assessor for other redevelopment project
29 areas of the community for which an allocation of ad valorem taxes is provided, exceeds a figure
30 at the time of the adoption of the redevelopment plan after April 1, 1983, equal to 15% of the
31 taxable value of the locally assessed property of the community, unless the governing body of each

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1 local taxing agency which levies taxes upon the property within the proposed redevelopment
2 project area consents to the redevelopment project area plan in writing.
3 (b) An agency may not obtain approval of a project area budget pursuant to Section
4 17A-2-1247.5 if the allocated incremental value of all existing project areas exceeds 10% of the
5 total taxable value of the community, or if the projected allocated incremental value of the project
6 area as described in the proposed project area budget, when added to the allocated incremental
7 value of all existing project areas, exceeds 12% of the total taxable value of the community unless
8 the agency obtains the majority consent of the taxing agency committee. The taxable value of the
9 community shall be the total taxable value for the community as shown on the last equalized
10 assessment roles as certified by the county assessor. The allocated incremental value shall be
11 calculated as follows:
12 (i) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
13 for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
14 completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
15 agency, the allocated incremental value shall be the taxable value in excess of the adjusted
16 base-year taxable value in the tax increment collection area, multiplied by the applicable
17 percentage of tax increment to be paid to the agency pursuant to Subsection 17A-2-1247(2)(f); and
18 (ii) for projects for which a preliminary plan has been prepared after April 1, 1993, and
19 for which any of the following have occurred after July 1, 1993: the completion of the agency
20 blight study, and the good faith commencement of the hearing by the agency under Section
21 17A-2-1221, the allocated incremental value shall be the taxable value in excess of the adjusted
22 base value in the tax increment collection area, multiplied by the applicable percentage of tax
23 increment to be paid to the agency in accordance with the approved and proposed project area
24 budgets pursuant to Subsections 17A-2-1247.5(3), (4), and (5).
25 (c) "Tax increment collection area" means that area of a project area from which an agency
26 may receive an allocation of tax increment pursuant to a plan incorporating provisions of Section
27 17A-2-1247 or an approved or a proposed project area budget incorporating the provisions of
28 Section 17A-2-1247.5.
29 (d) The consent of the taxing entities required by this section may be obtained by majority
30 consent of the taxing agency committee in accordance with Section 17A-2-1247.5.
31 (2) If the county assessor fails to report the value of the locally assessed property within

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1 the proposed redevelopment project area within 90 days after notice as provided in Section
2 17A-2-1222, the 15% limitation does not apply.
3 (3) A redevelopment plan adopted before April 1, 1983, incorporating the provisions of
4 tax increment financing under Section 17A-2-1247 may not be amended after April 1, 1983, to add
5 area containing additional taxable value unless the governing body of each local taxing agency that
6 levies taxes upon the property within the area proposed to be added consents in writing to a higher
7 percentage of taxable value if the additional taxable value, when added to the taxable value in the
8 project area as the taxable value existed immediately before the adoption of the amendment, would
9 exceed the limits established in this subsection for a redevelopment plan adopted after April 1,
10 1983.
11 (4) (a) A project area with a redevelopment plan adopted after April 1, 1983, incorporating
12 the provisions of tax increment financing under Sections 17A-2-1247 and 17A-2-1247.5 may not
13 exceed 100 acres of privately owned property unless the governing body of each local taxing
14 agency that levies taxes upon property within the proposed redevelopment project area consents
15 in writing to exceeding the limit of 100-acre of privately owned property in the redevelopment
16 plan.
17 (b) A redevelopment plan adopted before April 1, 1983, may not be amended after April
18 1, 1983, to add any additional area if the project area exceeds 100 acres of privately owned
19 property, or the project area is less than 100 acres of privately owned property but would exceed
20 100 acres of privately owned property with the additional area, unless the governing body of each
21 local taxing agency that levies taxes upon property within the area proposed to be added consents
22 in writing to the adding of the additional area to the project area.
23 (5) (a) For purposes of computing under Section 17A-2-1247 the amount to be allocated
24 to and when collected to be paid into a special fund of a redevelopment agency to pay the principal
25 of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded,
26 assumed, or otherwise) incurred by the redevelopment agency after April 1, 1983, from a project
27 area with a redevelopment plan adopted before April 1, 1983, incorporating the provisions of
28 Section 17A-2-1247 and containing more than 100 acres of privately owned property, the
29 redevelopment agency may be paid only that portion of that amount levied each year from 100
30 acres selected by the redevelopment agency from the entire project area. The amount allocated to
31 and when collected to be paid into a special fund of a redevelopment agency under Subsections

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1 17A-2-1247 (2)(c) and (2)(e) from the 100 acres of privately owned property shall be that portion
2 of the levied taxes each year in excess of the amount from the 100 acres allocated to and when
3 collected paid to the taxing agencies under Subsection 17A-2-1247 (2)(a). The 100 acres of
4 privately owned property shall be contiguous.
5 (b) The 100-acre limit of privately owned property established in this subsection does not
6 apply to loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or
7 otherwise, incurred by redevelopment agencies before April 1, 1983, in projects with
8 redevelopment plans adopted before April 1, 1983. The 100-acre limit of privately owned property
9 does not apply if the governing body of each local taxing agency which levies taxes upon the
10 property within the project area consents in writing to exceeding the 100-acre limit of privately
11 owned property.
12 (c) Each agency shall establish by resolution adopted on or before August 1, 1983, which
13 areas in the project area shall be included in the 100 acres of privately owned property to be used
14 for the purposes of computing the amount of tax increment to be paid to the agency. The
15 resolution shall also contain a legal description of the areas included in the 100 acres. A copy of
16 the resolution shall be filed with the county auditor and the State Tax Commission within 30 days
17 of adoption of the resolution. After the resolution has been adopted no person, entity, or public
18 body may contest the regularity, formality, or legality of the establishment of the 100 acres or of
19 the resolution for any cause.
20 (6) Each project area with a redevelopment plan adopted before April 1, 1983, that exceeds
21 590 acres of privately owned property shall be reduced to 590 acres of privately owned property
22 unless the governing body of each local taxing agency that levies taxes upon property within the
23 project area consents in writing to the project area not being reduced. Each agency shall establish
24 by resolution adopted on or before August 1, 1983, which areas in the project area shall be
25 included in the 590 acres of privately owned property to be used for the purposes of reducing to
26 the 590 acre limit of privately owned property. The resolution shall also contain a legal description
27 of the areas included in the 590 acres of privately owned property. A copy of the resolution shall
28 be filed with the county auditor and the State Tax Commission within 30 days of adoption of the
29 resolution. After the resolution has been adopted no person, entity, or public body may contest the
30 regularity, formality, or legality of the reduction to the 590 acre limit of privately owned property
31 or of the resolution for any cause.

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1 (7) A redevelopment plan adopted after April 1, 1983, and redevelopment projects for
2 which a preliminary plan has been prepared prior to April 1, 1993, and for which all of the
3 following have occurred prior to July 1, 1993: the agency blight study has been completed, and
4 a hearing under Section 17A-2-1221 has in good faith been commenced by the agency, shall
5 contain:
6 [(a) a time limit not to exceed seven years from the date of the approval of the plan after
7 which the agency may not commence acquisition of property through eminent domain;]
8 [(b)] (a) a time limit not to exceed 15 years from the date of the approval of the plan after
9 which no bonds may be issued for redevelopment projects; and
10 [(c)] (b) a time limit not to exceed 32 years from the date of the approval of the plan after
11 which no tax increment from the project area may be allocated to or used by the agency.
12 (8) The time limits established in Subsections (5)(a), (b), and (c) shall apply to
13 redevelopment plans adopted before April 1, 1983, but shall be measured from April 1, 1983.
14 (9) Notwithstanding the provisions of Subsections (7) and (8) or of any corresponding
15 provisions of a redevelopment plan, an agency may issue bonds for the purpose of refunding bonds
16 previously issued for redevelopment projects (or to refund bonds issued for redevelopment
17 projects) without regard to the 15-year limit provided therein.
18 Section 4. Section 17A-2-1210.5 is amended to read:
19 17A-2-1210.5. Limits on length of time for project areas adopted after July 1, 1993.
20 For projects for which a preliminary plan has been prepared after April 1, 1993, and for
21 which any of the following have occurred after July 1, 1993: the completion of the agency blight
22 study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221,
23 a redevelopment plan shall contain:
24 (1) a time limit not to exceed three years after the date of plan adoption during which the
25 agency must commence implementation of the plan unless the plan is readopted as if it were a
26 modified plan in accordance with Section 17A-2-1229; and
27 [(2) a time limit not to exceed five years from the date of the plan adoption after which the
28 agency may not commence acquisition of property through eminent domain;]
29 [(3)] (2) (a) for a redevelopment plan adopted before May 5, 1997, a time limit not to
30 exceed 25 years from the date of plan adoption after which no tax increment from the project area
31 may be allocated to or paid to the agency without the agency obtaining the majority consent of the

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1 taxing agency committee in accordance with Section 17A-2-1247.5 for a longer time period for
2 the collection of tax increment; or
3 (b) for a redevelopment plan adopted on or after May 5, 1997, a time limit not to exceed
4 seven years from the date of plan adoption after which no tax increment from the project area may
5 be allocated or paid to the agency.
6 Section 5. Section 17A-2-1211 is amended to read:
7 17A-2-1211. Property owner's rights.
8 This section applies to projects for which a preliminary plan has been prepared after April
9 1, 1993, and for which any of the following have occurred after July 1, 1993: the completion of
10 the agency blight study, and the good faith commencement of the hearing by the agency under
11 Section 17A-2-1221.
12 (1) (a) An agency shall hold the following public hearings:
13 (i) for redevelopment plans required to find blight under Subsection 17A-2-1202(3)(b),
14 at least one public hearing shall be held as provided in Section 17A-2-1206:
15 (A) to determine if the area is blighted; and
16 (B) to inform the public about the proposed project area and to allow public input before
17 agency deliberations on the plan;
18 (ii) at least one public hearing shall be held to allow public comment on agency
19 deliberations on approving the redevelopment plan pursuant to Section 17A-2-1221; and
20 (iii) for redevelopment plans adopted on or after January 1, 1997, the agency shall hold
21 at least one public hearing to allow public comment on the proposed project area budget.
22 (b) (i) An agency may combine the public hearing on the preliminary plan under Section
23 17A-2-1221 and the public hearing on the proposed project area budget under Subsection
24 (1)(a)(iii).
25 (ii) For redevelopment plans required to find blight under Subsection 17A-2-1202(3)(b),
26 the blight hearing under Section 17A-2-1206 and the hearing to allow public comment on the
27 preliminary plan under Section 17A-2-1221 shall be held at least 30 days apart.
28 (2) The agency shall prepare a written statement regarding the rights of property owners
29 within the project area. The following information shall be included within the written statement:
30 (a) the right of each owner to object to the inclusion of his property within the project area,
31 and the process for the property owner to file an objection to the inclusion of his property in the

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1 project area;
2 (b) the right of each property owner to object to any required proceeding of the agency in
3 the creation of the project area and the process for the property owner to file an objection with the
4 agency;
5 (c) the procedure to be followed to propose amendments or modifications to the proposed
6 redevelopment plan;
7 (d) the right of each property owner to obtain any document from the agency including the
8 following:
9 (i) the blight study, if applicable;
10 (ii) the benefit analysis;
11 (iii) the preliminary plan;
12 (iv) the report to the redevelopment plan;
13 (v) the planning commission report to the plan;
14 (vi) the owner participation guidelines developed in accordance with Section 17A-2-1214;
15 (vii) the relocation guidelines developed by the agency; and
16 (viii) other documents used by the agency when preparing the redevelopment plan
17 including the report that accompanies the plan;
18 (e) the agency shall provide at no charge one copy of the documents available to property
19 owners under this section if the property owner requests the documents; and
20 [(f) for plans which authorize the power of eminent domain, and prior to the agency
21 exercising the power of eminent domain, the agency shall provide a written statement to any
22 affected property owner with the following information:]
23 [(i) an explanation of the eminent domain process including:]
24 [(A) the need for the agency to obtain an independent appraisal that indicates the fair
25 market value of the property, and how the price was determined;]
26 [(B) a statement explaining agency compliance with the owner participation requirements;]
27 [(C) a statement that the agency may adopt a resolution authorizing the agency to make
28 an offer to the owner to purchase the property for the amount of just compensation as determined
29 by the appraiser, and if the offer is rejected, the agency has the right to acquire the property
30 through condemnation proceedings; and]
31 [(D) if an offer is made, a statement that the agency shall prepare an offer and summary

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1 of the just compensation, which offer will include the price to be offered, the legal description of
2 the property, conditions of the offer, the time at which the offer will expire, and how the agency
3 determined the amount being offered;]
4 [(ii) an explanation of the property owner's relocation rights and how to receive relocation
5 assistance and compensation; and]
6 [(g)] (f) a statement of the times during which the agency will be available to meet with
7 property owners to discuss the redevelopment process and the preliminary plan.
8 (3) The agency shall provide notice pursuant to Section 17A-2-1222 to each property
9 owner within a project area.
10 (4) A person may bring a civil suit against an agency for violation of any of the provisions
11 of this section resulting in damage to that person.
12 Section 6. Section 17A-2-1214 is amended to read:
13 17A-2-1214. Opportunities to participate in project required -- Preferences -- Rules.
14 (1) Each redevelopment plan shall provide for [reasonable opportunities] the opportunity
15 to participate, as provided in Subsection (2), in the redevelopment of property in the project area
16 by [the owners] each owner of property in the project area if the [owners enter] owner enters into
17 a participation agreement with the agency.
18 (2) Each [agency shall permit owners and tenants] owner within the project area
19 [reasonable opportunities to] may, in the owner's discretion, participate in the redevelopment of
20 the project area by:
21 (a) [owners] retaining, maintaining, and if necessary rehabilitating, all or portions of [their]
22 the owner's properties;
23 (b) [owners] acquiring adjacent or other properties in the project area;
24 (c) [owners] selling all or portions of [their] the owner's improvements to the agency,
25 retaining the land, and developing [their] the owner's properties;
26 (d) [owners] selling all or portions of [their] the owner's properties to the agency and
27 purchasing other properties in the project area;
28 (e) [owners] selling all or portions of [their] the owner's properties to the agency and
29 obtaining preferences to reenter the project area; or
30 [(f) tenants having opportunities to become owners of property in the project area, subject
31 to the opportunities of owners of property in the project area; or]

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1 [(g)] (f) other methods [approved] agreed upon by the property owner and the agency.
2 (3) Every redevelopment agency may extend reasonable preferential opportunities to
3 owners and tenants in the project area ahead of persons and entities from outside the project area,
4 to be owners and tenants in the project area during and after the completion of redevelopment.
5 (4) The agency shall prepare and submit rules governing the opportunities to the legislative
6 body of the community at the time the agency submits the redevelopment plan to the legislative
7 body of the community.
8 (5) The legislative body of the community may not adopt the redevelopment plan until the
9 rules have been adopted by the agency and approved by the legislative body of the community.
10 (6) This section does not apply to redevelopment plans adopted before April 1, 1983.
11 Section 7. Section 17A-2-1222 is amended to read:
12 17A-2-1222. Notices of hearing required.
13 (1) (a) Notice of the public hearing on a project area redevelopment plan shall be given
14 by publication not less than once a week for four successive weeks in a newspaper of general
15 circulation published in the county in which the land lies.
16 (b) The published notice shall:
17 (i) describe specifically the boundaries of the proposed redevelopment or economic
18 development project area; and
19 (ii) state the day, hour, and place in which persons objecting to the proposed project area
20 redevelopment plan, denying the findings or existence of blight in the proposed project area, or
21 denying the regularity of any of the proceedings, may appear before the legislative body and show
22 cause why the proposed plan should not be adopted.
23 (2) (a) For redevelopment plans for which a redevelopment plan has been adopted on or
24 after January 1, 1997, the agency shall publish notice of the hearing on the proposed project area
25 budget one or more times.
26 (b) The notice under Subsection (2)(a) shall be published at least seven days before the
27 public hearing date.
28 (c) The agency shall place an advertisement for the public hearing on the proposed project
29 area budget in a newspaper that:
30 (i) is of the general circulation in the community; and
31 (ii) to the extent practicable, is of general interest and readership in the community and

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1 not of limited subject matter.
2 (d) The notice shall not be placed in the portion of the newspaper where legal notices and
3 classified advertisements appear.
4 (e) The notice shall be a display advertisement and, except as provided in Subsection
5 17A-2-1247.5(3)(c), shall include the following statement:
6 "NOTICE OF BUDGET HEARING FOR (NAME OF PROJECT AREA)
7 The (name of redevelopment agency) has requested $________ in property tax revenues
8 that will be generated by development within the (name of redevelopment project area) to fund a
9 portion of project costs within the (name of redevelopment project area). These property tax
10 revenues will be used for the following: (list major budget categories and amounts). These
11 property taxes will be taxes levied by the following governmental entities, and, assuming current
12 tax rates, the taxes collected and allocated to this project area from each taxing entity will be as
13 follows: (list governmental entities levying taxes and the amount of total budget that would be
14 based on the current tax levy of each governmental entity). All of the property taxes to be
15 allocated to the project area are taxes that will be generated only if the project area is developed.
16 All concerned citizens are invited to attend the project area budget hearing scheduled for
17 (date, time, and place of hearing). A copy of the (name of redevelopment project area) project area
18 budget is available at the offices of (name of redevelopment agency and office address)."
19 (f) Other information may be provided in the notice including public purpose and future
20 taxing benefits.
21 (3) The agency shall notify the last-known assessee of each parcel of land in the project
22 area of any public hearing required by this part at least 30 days before the date of the public
23 hearing to the last-known address of the property owner as shown on the last equalized assessment
24 roll. The notice to the property owner shall:
25 (a) be mailed by certified mail for projects for which a preliminary plan has been adopted
26 after July 1, 1993;
27 (b) include the summary of property owners rights in accordance with Section
28 17A-2-1211, for projects for which a preliminary plan has been prepared after April 1, 1993, and
29 for which any of the following have occurred after July 1, 1993: the completion of the agency
30 blight study, and the good faith commencement of the hearing by the agency under Section
31 17A-2-1221;

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1 (c) describe specifically the boundaries of the proposed project area;
2 (d) state the day, hour, and place in which persons objecting to the proposed project area
3 or redevelopment plan, denying the existence of blight in the proposed redevelopment project area,
4 if applicable, or denying the regularity of any of the proceedings, may appear before the legislative
5 body and show cause why the proposed project area should not be designated as a project area or
6 why the proposed plan should not be adopted; and
7 (e) for plans required to make a finding of blight under Subsection 17A-2-1202(3)(b), [and
8 requiring the use of eminent domain,] for the public hearings required by Section 17A-2-1206, the
9 agency shall include in the notice to property owners a statement that:
10 (i) the area is being proposed for possible redevelopment;
11 (ii) the area may be declared blighted; and
12 (iii) the property owner will be notified of each additional public hearing held by the
13 agency on the project area prior to the adoption of the plan.
14 (4) (a) For projects for which a preliminary plan has been prepared after April 1, 1993, and
15 for which any of the following have occurred after July 1, 1993: the completion of the agency
16 blight study, and the good faith commencement of the hearing by the agency under Section
17 17A-2-1221, the agency shall notify the last known assessee of each parcel of land contiguous to
18 the project area of each public hearing at least 30 days before the date of the public hearing to the
19 last-known address of the property owner as shown on the last equalized assessment roll by
20 certified mail.
21 (b) For purposes of this part, "contiguous property" means property with a boundary that
22 touches the boundaries of the project area, or with a boundary within 300 feet of the project area's
23 boundaries.
24 (5) Not less than 30 days prior to the date set for each hearing required by this part, the
25 agency shall give notice by mail to the State Tax Commission, county assessor, county auditor,
26 any taxing agency committee required under Section 17A-2-1247.5, and the governing body of
27 each of the taxing entities of which taxable property is included in the project area if a taxing
28 agency committee is not yet formed under Section 17A-2-1247.5. The notice shall include:
29 (a) a description of the boundaries of the proposed project area;
30 (b) a map showing the boundaries of the proposed project area;
31 (c) a statement that a plan for the redevelopment or economic development of the proposed

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1 project area is being prepared; and
2 (d) a statement that if the redevelopment plan is adopted and, for projects for which a
3 preliminary plan has been prepared after April 1, 1993, and for which any of the following have
4 occurred after July 1, 1993: the completion of the agency blight study, and the good faith
5 commencement of the hearing by the agency under Section 17A-2-1221, if the agency obtains the
6 majority consent of the taxing agency committee to the project area budget, and if the plan
7 provides for a division of tax revenues, then property taxes resulting from increases in valuation
8 above the taxable value as shown on the last equalized assessment roll could be allocated to the
9 agency for redevelopment or economic development purposes, rather than being paid into the
10 treasury of the taxing agency;
11 (e) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
12 which any of the following have occurred after July 1, 1993: the completion of the agency blight
13 study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221,
14 state the day, hour, and place for the public hearing at which the approval of the designation of a
15 project area or the redevelopment plan will be considered; and
16 (f) invite each taxing agency to submit comments to the redevelopment agency concerning
17 the subject matter of the hearing prior to the date of the hearing.
18 Section 8. Section 17A-2-1228 is amended to read:
19 17A-2-1228. Acquisition and disposition of property -- Control of property sold or
20 leased for private use -- Notice.
21 (1) The agency may buy, sell, convey, lease, or otherwise acquire or dispose of property.
22 (2) (a) The agency shall retain controls and establish restrictions and covenants running
23 with land sold or leased for private use for periods of time not to exceed 25 years from the date of
24 the sale or lease and under the conditions provided in the redevelopment plan.
25 (b) The establishment of those controls is a public purpose under the provisions of this
26 part.
27 (3) Before any action to acquire property is taken, the property owner or the designated
28 representative shall be given a notice that is printed in a type size of at least ten-point type that
29 contains the following information:
30 (a) a description of the property to be acquired;
31 (b) the name of the agency acquiring the property and the agency's contact person and

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1 telephone number;
2 (c) a list of the property owner's rights under Sections 57-12-7, 57-12-8, 57-12-9,
3 57-12-12, and 57-12-13; and
4 (d) a copy of Title 57, Chapter 12, Relocation Assistance.
5 (4) A summary of the material provisions of any sale or other disposal of property by the
6 agency shall be:
7 (a) a matter of public record; and
8 (b) published at least once in a newspaper of general circulation in the community where
9 the property is located no later than one month after the sale is closed.
10 [(5) An agency that acquires real or personal property by eminent domain shall comply
11 with Sections 57-12-7, 57-12-8, 57-12-9, 57-12-12, and 57-12-13.]
12 Section 9. Section 17A-2-1238 is amended to read:
13 17A-2-1238. Agency disposition of property within project area.
14 [(1) As used in this section, "replacement property" means a comparable replacement
15 property that is a decent, safe, clean, and sanitary property adequate to accommodate this person,
16 that is reasonably accessible to public services and places of employment, and that is available on
17 the private market.]
18 [(2)] Within a project area an agency may:
19 [(a)] (1) purchase, sell, lease, obtain option upon, acquire, or dispose by gift, grant,
20 bequest, devise, or otherwise, any real or personal property, any interest in property, and any
21 improvements on it; or
22 [(b) acquire real property by eminent domain except as prohibited by Section
23 17A-2-1209.]
24 [(3) (a) When an agency acquires real property by eminent domain, the property owner
25 may elect to receive either fair market value or replacement property for the real property.]
26 [(b) The agency shall also pay the property owner's moving costs.]
27 [(4) (a) When the power of eminent domain is exercised under the provisions of this part
28 and the party whose property is affected contests the matter in the district court, the court may, in
29 cases where the amount of the award exceeds the amount offered, award in addition to his just
30 compensation, costs, including a reasonable attorney's fee as determined by the court.]
31 [(b) The court, or jury in cases tried before a jury, may also award a reasonable sum as

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1 compensation for the costs and expenses, if any, of relocating the owner whose property is
2 acquired, a party conducting a business on such acquired property, or a person displaced from the
3 property, as permitted by Title 57, Chapter 12, Utah Relocation Assistance Act.]
4 [(c) An award may also be made for damages to any fixtures or personal property owned
5 by the owner of such acquired property or owned by the person conducting a business on such
6 acquired property, if such fixtures or personal property are damaged as a result of such acquisition
7 or relocation.]
8 (2) complete each eminent domain action pending as of May 5, 1997, but may not begin
9 an eminent domain action after that date.
10 Section 10. Section 17A-2-1239 is amended to read:
11 17A-2-1239. Acquisition of property from members or officers prohibited.
12 An agency shall not acquire from any of its members or officers any property or interest
13 in property [except through eminent domain proceedings]. Any member of the planning
14 commission, the agency, the city council, county commission, or the legislative body who may
15 personally benefit financially, or who is a member of an organization that may benefit financially,
16 or whose immediate family members may benefit financially from the designation of an area as
17 a project area or from a proposed preliminary or redevelopment plan shall follow the disclosure
18 requirement of Title 10, Chapter 3, Municipal Government. However, no disclosure is required
19 if the effect on the individual is indirect, remote, and insubstantial.
20 Section 11. Section 17A-2-1241 is amended to read:
21 17A-2-1241. Acquisition of public property.
22 Property [already devoted to a public use may be acquired by the agency through eminent
23 domain but property] of the public body [shall] may not be acquired without its consent.
24 Section 12. Section 17A-2-1247.5 is amended to read:
25 17A-2-1247.5. Tax increment financing -- Project area budget approval.
26 (1) This section applies to projects for which a preliminary plan has been prepared after
27 April 1, 1993, and for which any of the following have occurred after July 1, 1993: the completion
28 of the agency blight study, and the good faith commencement of the hearing by the agency under
29 Section 17A-2-1221.
30 (2) (a) A taxing agency committee shall be created for each redevelopment or economic
31 development project. The committee membership shall be selected as follows:

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1 (i) two representatives appointed by the school district in the project area;
2 (ii) two representatives appointed by resolution of the county commission or county
3 council for the county in which the project area is located;
4 (iii) two representatives appointed by resolution of the city or town's legislative body in
5 which the project area is located if the project is located within a city or town;
6 (iv) a representative approved by the State School Board; and
7 (v) one representative who shall represent all of the remaining governing bodies of the
8 other local taxing agencies that levy taxes upon the property within the proposed project area. The
9 representative shall be selected by resolution of each of the governing bodies of those taxing
10 agencies within 30 days after the notice provided in Subsection 17A-2-1256(3).
11 (b) If the project is located within a city or town, a quorum of a taxing agency committee
12 consists of five members. If the project is not located within a city or town, a quorum consists of
13 four members.
14 (c) A taxing agency committee formed in accordance with this section has the authority
15 to:
16 (i) represent all taxing entities in a project area and cast votes that will be binding on the
17 governing boards of all taxing entities in a project area;
18 (ii) negotiate with the agency concerning the redevelopment plan;
19 (iii) approve or disapprove project area budgets; and
20 (iv) approve an exception to the limits on the value and size of project areas imposed by
21 Section 17A-2-1210[, or the time and amount of tax increment financing under this section].
22 (3) (a) An agency must obtain the majority consent of a quorum of the taxing agency
23 committee for the project area budget before an agency may collect any tax increment for a project
24 area.
25 (b) Except as provided in Subsection (3)(c), the project area budget may be amended at
26 the request of the agency by obtaining the majority consent of a quorum of the taxing agency
27 committee.
28 (c) (i) Beginning on January 1, 1997, before a taxing agency committee approves an
29 amendment to a project area budget, the agency shall advertise and hold one public hearing on the
30 proposed change in the project area budget.
31 (ii) The public hearing under Subsection (3)(c)(i) shall be conducted according to the

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1 procedures and requirements of Subsection 17A-2-1222(2), except that if the amended budget
2 allocates a greater proportion of tax increment to a project area than was allocated to the project
3 area under the previous budget, the advertisement shall state the percentage allocated under the
4 previous budget and the percentage allocated under the amended budget.
5 (d) If an amendment is proposed and the taxing agency committee does not consent to the
6 amendment, the agency will continue to operate under the previously approved, unamended project
7 area budget.
8 (4) (a) An agency may collect tax increment from all or a part of a project area. The tax
9 increment shall be paid to the agency in the same manner and at the same time as payments of
10 taxes to other taxing agencies to pay the principal of and interest on loans, moneys advanced to,
11 or indebtedness, whether funded, refunded, assumed, or otherwise, to finance or refinance, in
12 whole or in part, the redevelopment or economic development project according to the limits
13 established by majority consent of the taxing agency committee.
14 (b) The agency may elect one of the following alternatives for tax increment collection:
15 (i) for a redevelopment plan adopted before May 5, 1997:
16 [(i)] (A) 100% of annual tax increment to be paid to the agency for a period of [twelve]
17 12 years commencing [from] the first tax year an agency accepts tax increment from a project area;
18 or
19 [(ii)] (B) 75% of annual tax increment to be paid to the agency for a period of [twenty] 20
20 years commencing [from] the first tax year an agency accepts tax increment from a project area;
21 or
22 (ii) for a redevelopment plan adopted on or after May 5, 1997:
23 (A) 50% of annual tax increment to be paid to the agency for a period of five years
24 commencing the first tax year an agency accepts tax increment from a project area; or
25 (B) 37.5% of annual tax increment to be paid to the agency for a period of seven years
26 commencing the first tax year an agency accepts tax increment from a project area.
27 [(c) An agency may receive a greater percentage of tax increment or receive tax increment
28 for a longer period of time than that specified in this subsection if the agency obtains the majority
29 consent of the taxing agency committee.]
30 (5) (a) The redevelopment plan shall contain a provision that provides that the portion of
31 the taxes, if any, due to an increase in the tax rate by a taxing agency after the date the project area

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1 budget is approved by the taxing agency committee may not be allocated to and when collected
2 paid into a special fund of the redevelopment agency according to the provisions of Subsection (4)
3 unless the taxing agency committee approves the inclusion of the increase in the tax rate at the
4 time the project area budget is approved. If approval of the inclusion of the increase in the tax rate
5 is not obtained, the portion of the taxes attributable to the increase in the rate shall be distributed
6 by the county to the taxing agency imposing the tax rate increase in the same manner as other
7 property taxes.
8 (b) In each year in which there are increases or decreases in the tax rate of a taxing agency
9 as described in Subsection (5)(a) as a result of (i) statutes enacted by the Legislature, a judicial
10 decision, or an order from the State Tax Commission to a county to adjust or factor its assessment
11 rate pursuant to Subsection 59-2-704(2), (ii) changes in exemptions provided in Utah Constitution
12 Article XIII, Section 2, or Section 59-2-103, and (iii) any increase or decrease in the percentage
13 of fair market value, as defined under Section 59-2-102, the amount of the tax rate to be used in
14 determining tax increment shall be increased or decreased by the amount of the increases or
15 decreases as a result of the applicable action described in (i), (ii), or (iii).
16 (c) Notwithstanding the increase or decrease resulting from Subsection (5)(b), the amount
17 of money allocated to, and when collected paid to the agency each year for payment of bonds or
18 other indebtedness may not be less than would have been allocated to and when collected paid to
19 the agency each year if there had been no increase or decrease under Subsection (5)(b).
20 (6) (a) For redevelopment plans first adopted before May 4, 1993, beginning January 1,
21 1994, all of the taxes levied and collected upon the taxable property in the redevelopment project
22 under Section 59-2-906.1 which are not pledged to support bond indebtedness and other
23 contractual obligations are exempt from the provisions of Subsection (4).
24 (b) For redevelopment plans first adopted after May 3, 1993, beginning January 1, 1994,
25 all of the taxes levied and collected upon the taxable property in the redevelopment project under
26 Section 59-2-906.1 are exempt from the provisions of Subsection (4).
27 Section 13. Repealer.
28 This act repeals:
29 Section 17A-2-1209, Use of eminent domain.
30 Section 14. Effective date.
31 If approved by two-thirds of all the members elected to each house, this act takes effect

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1 upon approval by the governor, or the day following the constitutional time limit of Utah
2 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
3 date of veto override.

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