Second 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; MODIFYING THE DEFINITION OF
7 BLIGHT; ELIMINATING THE EXCEPTION TO THE DEVELOPER-CAUSED BLIGHT
8 PROVISIONS; LIMITING THE USE OF FACTORS OF THE BLIGHT DEFINITION;
9 REQUIRING BLIGHT TO BE FOUND ON EACH OWNER'S PROPERTY FOR EMINENT
10 DOMAIN TO BE USED AS TO THAT PROPERTY; MODIFYING THE TIME FOR FILING
11 AN APPEAL FROM A FINDING OF BLIGHT; PRESERVING THE RIGHT TO A JURY
12 TRIAL IN A COURT CHALLENGE OF A FINDING OF BLIGHT; ALLOWING A
13 PROPERTY OWNER TO RECOVER COSTS AND ATTORNEY'S FEES IN A
14 SUCCESSFUL CHALLENGE TO A FINDING OF BLIGHT; MODIFYING AN AGENCY'S
15 OBLIGATION TO PROVIDE REPLACEMENT PROPERTY; MODIFYING THE
16 PERCENTAGE OF OWNERS WHOSE PROTEST OF A PLAN REQUIRE THE PLAN TO
17 BE APPROVED BY VOTERS; MODIFYING THE PROVISIONS RELATING TO AN
18 OWNER'S OPPORTUNITY TO PARTICIPATE IN THE REDEVELOPMENT PLAN;
19 ELIMINATING A TENANT'S OPPORTUNITY TO PARTICIPATE IN THE
20 REDEVELOPMENT PLAN; MODIFYING THE AMOUNT OF TAX INCREMENT
21 FINANCING AN AGENCY MAY COLLECT; MODIFYING THE LENGTH OF TIME AN
22 AGENCY MAY COLLECT TAX INCREMENT FINANCING; MAKING CONFORMING
23 CORRECTIONS; MAKING TECHNICAL CORRECTIONS; AND PROVIDING AN
24 EFFECTIVE DATE.
25 This act affects sections of Utah Code Annotated 1953 as follows:
26 AMENDS:

1 17A-2-1202, as last amended by Chapter 320, Laws of Utah 1995
2 17A-2-1208, as repealed and reenacted by Chapter 50, Laws of Utah 1993
3 17A-2-1210.5, as enacted by Chapter 50, Laws of Utah 1993
4 17A-2-1214, as last amended by Chapter 50, Laws of Utah 1993
5 17A-2-1225, as last amended by Chapter 249, Laws of Utah 1996
6 17A-2-1238, as last amended by Chapter 320, Laws of Utah 1995
7 17A-2-1247.5, as last amended by Chapter 249, Laws of Utah 1996
8 Be it enacted by the Legislature of the state of Utah:
9 Section 1. Section 17A-2-1202 is amended to read:
10 17A-2-1202. Definitions.
11 As used in this part:
12 (1) "Agency" means the legislative body of a community when designated by the
13 legislative body itself to act as a redevelopment agency.
14 (2) "Base tax amount" means that portion of taxes that would be produced by the rate upon
15 which the tax is levied each year by or for all taxing agencies upon the total sum of the taxable
16 value of the taxable property in a redevelopment project area as shown upon the assessment roll
17 used in connection with the taxation of the property by the taxing agencies, last equalized before
18 the effective date of the:
19 (a) ordinance approving the plan for projects for which a preliminary plan has been
20 prepared prior to April 1, 1993, and for which all of the following have occurred prior to July 1,
21 1993: the agency blight study has been completed, and a hearing under Section 17A-2-1221 has
22 in good faith been commenced by the agency; or
23 (b) the first approved project area budget for projects for which a preliminary plan has
24 been prepared after April 1, 1993, and for which any of the following have occurred after July 1,
25 1993: the completion of the agency blight study, and the good faith commencement of the hearing
26 by the agency under Section 17A-2-1221; and
27 (c) as adjusted by Sections 17A-2-1250.5, 17A-2-1251, 17A-2-1252, and 17A-2-1253.
28 (3) "Blighted area" or "blight" means:
29 (a) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
30 for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
31 completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the

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1 agency, an area used or intended to be used for residential, commercial, industrial, or other
2 purposes or any combination of such uses which is characterized by two or more of the following
3 factors:
4 (i) defective design and character of physical construction;
5 (ii) faulty interior arrangement and exterior spacing;
6 (iii) high density of population and overcrowding;
7 (iv) inadequate provision for ventilation, light, sanitation, open spaces, and recreation
8 facilities;
9 (v) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
10 (vi) economic dislocation, deterioration, or disuse, resulting from faulty planning;
11 (vii) subdividing and sale of lots of irregular form and shape and inadequate size for proper
12 usefulness and development;
13 (viii) laying out of lots in disregard of the contours and other physical characteristics of
14 the ground and surrounding conditions;
15 (ix) existence of inadequate streets, open spaces, and utilities; and
16 (x) existence of lots or other areas which are subject to being submerged by water.
17 (b) (i) For projects for which a preliminary plan has been prepared after April 1, 1993, and
18 for which any of the following have occurred after July 1, 1993: the completion of the agency
19 blight study, and the good faith commencement of the hearing by the agency under Section
20 17A-2-1221, when a finding of blight is required, an area with buildings [or] and improvements,
21 used or intended to be used for residential, commercial, industrial, or other urban purposes or any
22 combination of these uses, which:
23 [(i)] (A) contains buildings and improvements, not including out-buildings, on at least
24 [50%] 75% of the number of parcels and the area of those parcels is at least [50%] 75% of the
25 project area; and
26 [(ii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of disease,
27 infant mortality, juvenile delinquency, or crime because] (B) poses a present and serious danger
28 to life or health as a direct and proximate result of any three or more of the following factors:
29 [(A)] (I) deterioration, dilapidation, or defective character of physical construction;
30 [(B)] (II) high density of population and overcrowding;
31 [(C)] (III) inadequate provision for streets, utilities, ventilation, light, and sanitation[, and

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1 open spaces];
2 [(D) mixed character and shifting of uses which results in obsolescence, deterioration, or
3 dilapidation;]
4 [(E) economic deterioration or] (IV) continued disuse or abandonment;
5 [(F) lots of irregular form and shape and inadequate size for proper usefulness and
6 development, or laying out of lots in disregard of the contours and other physical characteristics
7 of the ground and surrounding conditions;]
8 [(G) existence of] (V) inadequate [streets,] open spaces[, and utilities]; and
9 [(H)] (VI) existence of lots or other areas which are subject to being submerged by water[;
10 and].
11 [(I) existence of any hazardous or solid waste defined as any substance defined, regulated,
12 or listed as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic waste,"
13 "pollutant," "contaminant," or "toxic substances," or identified as hazardous to human health or
14 the environment under state or federal law or regulation.]
15 (ii) The factor listed in Subsection (3)(b)(i)(B)(II) may not be used as one of the three
16 factors required under Subsection (3)(b)(i)(B) unless the redevelopment plan provides that the
17 redevelopment shall result in lower density of population or use than existed in the project area
18 before the redevelopment plan.
19 (iii) The factor listed in Subsection (3)(b)(i)(B)(V) may not be used as one of the three
20 factors required under Subsection (3)(b)(i)(B) unless the redevelopment plan provides that the
21 redevelopment shall result in a greater amount of open space than existed in the project area before
22 the redevelopment plan.
23 (c) For purposes of Subsection (3)(b), if a developer involved in the project area
24 redevelopment or economic development causes any of the factors of blight listed in Subsection
25 (b)(ii), the developer-caused blight may not be used as one of the three required elements of blight.
26 [Notwithstanding the provisions of this section, any blight caused by owners or tenants who may
27 become developers under the provisions of Section 17A-2-1214 shall not be subject to this
28 subsection.]
29 (4) "Bond" means any bonds, notes, interim certificates, debentures, or other obligations
30 issued by an agency.
31 (5) "Community" means a city, county, town, or any combination of these.

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1 (6) "Economic development" means the planning or replanning, design or redesign,
2 development or redevelopment, construction or reconstruction, rehabilitation, business relocation
3 or any combination of these, within all or part of a project area and the provision of office,
4 industrial, manufacturing, warehousing, distribution, parking, public or other facilities, or
5 improvements as may benefit the state or the community in order for a public or private employer
6 to create additional jobs within the state.
7 (7) "Federal government" means the United States or any of its agencies or
8 instrumentalities.
9 (8) "Legislative body" means the city council, city commission, county legislative body,
10 or other legislative body of the community.
11 (9) "Planning commission" means a city, town, or county planning commission established
12 pursuant to law or charter.
13 (10) "Project area" or "redevelopment project area" means an area of a community within
14 a designated redevelopment survey area, the redevelopment of which is necessary to eliminate
15 blight or provide economic development and which is selected by the redevelopment agency
16 pursuant to this part.
17 (11) "Project area budget" means, for projects for which a preliminary plan has been
18 prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993:
19 the completion of the agency blight study, and the good faith commencement of the hearing by the
20 agency under Section 17A-2-1221, a multiyear budget for the redevelopment plan prepared by the
21 redevelopment agency showing:
22 (a) the base year taxable value of the project area;
23 (b) the projected tax increment of the project area, including the amount of any tax
24 increment shared with other taxing districts which shall include:
25 (i) the tax increment expected to be used to implement the redevelopment plan including
26 the estimated amount of tax increment to be used for land acquisition, public, and infrastructure
27 improvements, and loans, grants, or tax incentives to private and public entities; and
28 (ii) the total principal amount of bonds expected to be issued by the redevelopment agency
29 to finance the project;
30 (c) the tax increment expected to be used to cover the cost of administering the project area
31 plan;

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1 (d) a legal description for the portion of the project area from which tax increment will be
2 collected pursuant to Section 17A-2-1247.5, if the area from which tax increment is to be collected
3 is less than the entire project area; and
4 (e) for properties to be sold, the expected total cost of the property to the agency and the
5 expected sales price to be paid by the purchaser.
6 (12) "Public body" means the state, or any city, county, district, authority, or any other
7 subdivision or public body of the state, their agencies, instrumentalities, or political subdivisions.
8 (13) (a) "Redevelopment" means the planning, development, replanning, redesign,
9 clearance, reconstruction, or rehabilitation, or any combination of these, of all or part of a project
10 area, and the provision of residential, commercial, industrial, public, or other structures or spaces
11 that are appropriate or necessary to eliminate blight in the interest of the general welfare, including
12 recreational and other facilities incidental or appurtenant to them.
13 (b) "Redevelopment" includes:
14 (i) the alteration, improvement, modernization, reconstruction, or rehabilitation, or any
15 combination of these, of existing structures in a project area;
16 (ii) provision for open space types of use, such as streets and other public grounds and
17 space around buildings, and public or private buildings, structures and improvements, and
18 improvements of public or private recreation areas and other public grounds; and
19 (iii) the replanning or redesign or original development of undeveloped areas as to which
20 either of the following conditions exist:
21 (A) the areas are stagnant or improperly utilized because of defective or inadequate street
22 layout, faulty lot layout in relation to size, shape, accessibility, or usefulness, or for other causes;
23 or
24 (B) the areas require replanning and land assembly for reclamation or development in the
25 interest of the general welfare.
26 (14) "Redevelopment plan" means a plan developed by the agency and adopted by
27 ordinance of the governing body of a community to guide and control redevelopment and
28 economic development undertakings in a specific project area.
29 (15) "Redevelopment survey area" or "survey area" means an area of a community
30 designated by resolution of the legislative body or the governing body of the agency for study by
31 the agency to determine if blight exists if redevelopment is planned, and if a redevelopment or

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1 economic development project or projects within the area are feasible.
2 (16) "Taxes" include all levies on an ad valorem basis upon land, real property, personal
3 property, or any other property, tangible or intangible.
4 (17) "Taxing agencies" mean the public entities, including the state, any city, county, city
5 and county, any school district, special district, or other public corporation, which levy property
6 taxes within the project area.
7 (18) "Tax increment" means that portion of the levied taxes each year in excess of the base
8 tax amount which excess amount is to be paid into a special fund of an agency.
9 Section 2. Section 17A-2-1208 is amended to read:
10 17A-2-1208. Blight study -- Findings of blight.
11 (1) (a) If the redevelopment plan [will authorize] authorizes the use of eminent domain,
12 the redevelopment project area described in the redevelopment plan must be a blighted area and
13 a finding that the area is a blighted area must be made by the agency at the time a preliminary plan
14 is prepared, and must be made by the legislative body prior to adopting the plan under Section
15 17A-2-1225.
16 (b) An agency may not use eminent domain with respect to an owner's property included
17 within the redevelopment project area described in the redevelopment plan unless:
18 (i) the redevelopment plan authorizes the use of eminent domain;
19 (ii) at the time a preliminary plan is prepared, the agency makes a finding that the owner's
20 property meets the blight definition requirements under Subsection 17A-2-1202(3)(b)(i)(B); and
21 (iii) before adopting a plan under Section 17A-2-1225, the legislative body makes a
22 finding that the owner's property meets the blight definition requirements under Subsection
23 17A-2-1202(3)(b)(i)(B).
24 (2) If required, the blight study shall be initiated by resolution of the agency. The
25 resolution shall contain:
26 (a) a statement that the area requires study to determine whether blight exists as defined
27 in Section 17A-2-1202;
28 (b) a description of the boundaries of the area to be studied; and
29 (c) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
30 which any of the following have occurred after July 1, 1993: the completion of the agency blight
31 study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221,

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1 a time limit not to exceed one year within which the study must be completed.
2 (3) (a) The agency always maintains the burden of proof regarding a finding of blight,
3 whether that finding is to be determined by the agency under Section 17A-2-1206, or by a
4 governing body under Section 17A-2-1225.
5 (b) (i) Within [30] 60 days after a finding of blight under Section 17A-2-1206 or
6 17A-2-1225, an owner may appeal a finding of blight by an agency or governing body to a court
7 of competent jurisdiction.
8 (ii) The court shall review that finding of blight de novo, and the agency shall maintain
9 the burden of proof regarding blight.
10 (iii) In an action under this Subsection (3)(b), the parties shall be entitled to trial by jury.
11 (c) If the court or jury determines that the owner's property is not blighted, the court shall
12 award the owner actual costs, expenses, and attorney's fees incurred in the action and in the
13 hearings and other actions of the agency in making its finding of blight.
14 Section 3. Section 17A-2-1210.5 is amended to read:
15 17A-2-1210.5. Limits on length of time for project areas adopted after July 1, 1993.
16 For projects for which a preliminary plan has been prepared after April 1, 1993, and for
17 which any of the following have occurred after July 1, 1993: the completion of the agency blight
18 study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221,
19 a redevelopment plan shall contain:
20 (1) a time limit not to exceed three years after the date of plan adoption during which the
21 agency must commence implementation of the plan unless the plan is readopted as if it were a
22 modified plan in accordance with Section 17A-2-1229;
23 (2) a time limit not to exceed five years from the date of the plan adoption after which the
24 agency may not commence acquisition of property through eminent domain;
25 (3) (a) for a redevelopment plan adopted before May 5, 1997, a time limit not to exceed
26 25 years from the date of plan adoption after which no tax increment from the project area may
27 be allocated to or paid to the agency without the agency obtaining the majority consent of the
28 taxing agency committee in accordance with Section 17A-2-1247.5 for a longer time period for
29 the collection of tax increment; or
30 (b) for a redevelopment plan adopted on or after May 5, 1997, a time limit not to exceed
31 seven years from the date of plan adoption after which no tax increment from the project area may

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1 be allocated or paid to the agency.
2 Section 4. Section 17A-2-1214 is amended to read:
3 17A-2-1214. Opportunities to participate in project required -- Preferences -- Rules.
4 (1) Each redevelopment plan shall provide for [reasonable opportunities] the opportunity
5 to participate, as provided in Subsection (2), in the redevelopment of property in the project area
6 by [the owners] each owner of property in the project area if the [owners enter] owner enters into
7 a participation agreement with the agency.
8 (2) Each [agency shall permit owners and tenants] owner within the project area
9 [reasonable opportunities to] may, in the owner's discretion, participate in the redevelopment of
10 the project area by:
11 (a) [owners] retaining, maintaining, and if necessary rehabilitating, all or portions of [their]
12 the owner's properties;
13 (b) [owners] acquiring adjacent or other properties in the project area;
14 (c) [owners] selling all or portions of [their] the owner's improvements to the agency,
15 retaining the land, and developing [their] the owner's properties;
16 (d) [owners] selling all or portions of [their] the owner's properties to the agency and
17 purchasing other properties in the project area;
18 (e) [owners] selling all or portions of [their] the owner's properties to the agency and
19 obtaining preferences to reenter the project area; or
20 [(f) tenants having opportunities to become owners of property in the project area, subject
21 to the opportunities of owners of property in the project area; or]
22 [(g)] (f) other methods [approved] agreed upon by the property owner and the agency.
23 (3) Every redevelopment agency may extend reasonable preferential opportunities to
24 owners and tenants in the project area ahead of persons and entities from outside the project area,
25 to be owners and tenants in the project area during and after the completion of redevelopment.
26 (4) The agency shall prepare and submit rules governing the opportunities to the legislative
27 body of the community at the time the agency submits the redevelopment plan to the legislative
28 body of the community.
29 (5) The legislative body of the community may not adopt the redevelopment plan until the
30 rules have been adopted by the agency and approved by the legislative body of the community.
31 (6) This section does not apply to redevelopment plans adopted before April 1, 1983.

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1 Section 5. Section 17A-2-1225 is amended to read:
2 17A-2-1225. Adoption, rejection, or modification of plan -- Plan submitted to voters
3 -- When rejection required -- Petition for alternative plan.
4 (1) Once the hearings have been held, the legislative body may proceed to adopt, reject,
5 or modify the project area redevelopment plan. The project area redevelopment plan may not be
6 modified so as to add any real property to the project area without the legislative body holding a
7 new hearing to consider the matter, notice of which shall be given in the same manner as provided
8 in Section 17A-2-1222.
9 (2) (a) If the owners of [40%] 25% of the area of the property included within the project
10 area proposed in the redevelopment plan, excluding property owned by public agencies or
11 dedicated to public use, make objections in writing prior to or at the hearing and the objections are
12 not withdrawn at or prior to the hearing, the plan may not be adopted until the proposition to so
13 adopt the plan has been approved by a majority of the registered voters of the community voting
14 thereon at an election called for this purpose.
15 (b) This election may be held on the same day and with the same election officials as any
16 primary or general election held in the community and shall be held as nearly as practicable in
17 conformity with the general election laws of the state.
18 (c) Upon the approval by the voters as set forth in Subsection (2)(a), the project area
19 redevelopment plan shall be deemed adopted and the legislative body shall confirm the adoption
20 by ordinance.
21 (3) If the owners of two-thirds of the area of the property included within any project area
22 proposed in the redevelopment plan, excluding property owned by public agencies or dedicated
23 to public use, make objections in writing at or prior to the hearing, the legislative body may not
24 adopt the project, and the proposed project may not be reconsidered by the legislative body for a
25 period of three years.
26 (4) (a) Projects for which a preliminary plan has been prepared after April 1, 1993, and for
27 which any of the following have occurred after July 1, 1993: the completion of the agency blight
28 study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221,
29 must adopt a plan within one year after a project area is designated under Section 17A-2-1206 for
30 a redevelopment plan where the purpose is the elimination of blight, and within one year after a
31 preliminary plan is prepared for a redevelopment plan where the purpose is economic

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1 development.
2 (b) If the plan will be submitted to an election for approval by the registered voters of a
3 community, the time limit for the plan adoption shall be increased by the time between the close
4 of the public hearing held pursuant to Section 17A-2-1221 and the date of the next general election
5 within the community.
6 (5) A majority of the owners of the area of the property included within the project area,
7 excluding property owned by public agencies or dedicated to public use, may file a written petition
8 requesting an alternative preliminary plan be formulated pursuant to Section 17A-2-1211.
9 Section 6. Section 17A-2-1238 is amended to read:
10 17A-2-1238. Agency disposition of property within project area.
11 (1) As used in this section, "replacement property" means a comparable replacement
12 property that is a decent, safe, clean, and sanitary property adequate to accommodate this person,
13 that is reasonably accessible to public services and places of employment, and that is available on
14 the private market.
15 (2) Within a project area an agency may:
16 (a) purchase, sell, lease, obtain option upon, acquire, or dispose by gift, grant, bequest,
17 devise, or otherwise, any real or personal property, any interest in property, and any improvements
18 on it; or
19 (b) acquire real property by eminent domain except as prohibited by Section 17A-2-1209.
20 (3) (a) When an agency acquires real property by eminent domain, the property owner may
21 elect to receive either fair market value or replacement property for the real property.
22 (b) The agency shall also pay the property owner's moving costs.
23 (4) An agency may not require a person to move from land used as the person's residence
24 or business or for the person's agricultural purposes and acquired by the agency under eminent
25 domain until the agency has offered the person replacement property.
26 (5) If a project cannot proceed to actual construction because comparable sale or rental
27 property is not available and the agency and owner determine that the property cannot otherwise
28 be made available, the agency shall take such action that is necessary or appropriate to provide the
29 property by use of funds authorized for the project.
30 (6) The agency may not require an owner to move from the owner's property because of
31 the redevelopment project unless the owner is satisfied that replacement property is available and

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1 provided to the owner.
2 (7) (a) If the agency and the owner disagree on an offer of replacement property, the
3 dispute shall be submitted for mediation to an independent mediator agreed upon by both the
4 agency and the property owner.
5 (b) If mediation appears reasonably unlikely to resolve the dispute, the matter may proceed
6 to trial as provided by the Rules of Civil Procedure.
7 (c) After the agency and owner have completed the initial interaction with mediation, a
8 decision by the agency or property owner to participate further in mediation may not result in a
9 penalty or delay in processing the civil trial.
10 (d) After a mediation decision is reached, an order of occupancy may be issued.
11 (e) The cost of the independent mediator shall be paid by the agency.
12 (f) The record of the mediation and the decision of the mediator shall be made a matter of
13 record in any litigation in a civil court in this state.
14 [(4)] (8) (a) [When] If the power of eminent domain is exercised under the provisions of
15 this part and the [party] owner whose property is affected contests the matter in the district court,
16 the court [may] shall, in cases where the amount of the award exceeds 75% of the amount offered,
17 award, in addition to [his] the owner's just compensation, the owner's actual expenses, costs,
18 [including a reasonable] and attorney's fee [as determined by the court].
19 (b) The court, or jury in cases tried before a jury, may also award a reasonable sum as
20 compensation for the costs and expenses, if any, of relocating the owner whose property is
21 acquired, a party conducting a business on such acquired property, or a person displaced from the
22 property, as permitted by Title 57, Chapter 12, Utah Relocation Assistance Act.
23 (c) An award may also be made for damages to any fixtures or personal property owned
24 by the owner of such acquired property or owned by the person conducting a business on such
25 acquired property, if such fixtures or personal property are damaged as a result of such acquisition
26 or relocation.
27 Section 7. Section 17A-2-1247.5 is amended to read:
28 17A-2-1247.5. Tax increment financing -- Project area budget approval.
29 (1) This section applies to projects for which a preliminary plan has been prepared after
30 April 1, 1993, and for which any of the following have occurred after July 1, 1993: the completion
31 of the agency blight study, and the good faith commencement of the hearing by the agency under

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1 Section 17A-2-1221.
2 (2) (a) A taxing agency committee shall be created for each redevelopment or economic
3 development project. The committee membership shall be selected as follows:
4 (i) two representatives appointed by the school district in the project area;
5 (ii) two representatives appointed by resolution of the county commission or county
6 council for the county in which the project area is located;
7 (iii) two representatives appointed by resolution of the city or town's legislative body in
8 which the project area is located if the project is located within a city or town;
9 (iv) a representative approved by the State School Board; and
10 (v) one representative who shall represent all of the remaining governing bodies of the
11 other local taxing agencies that levy taxes upon the property within the proposed project area. The
12 representative shall be selected by resolution of each of the governing bodies of those taxing
13 agencies within 30 days after the notice provided in Subsection 17A-2-1256(3).
14 (b) If the project is located within a city or town, a quorum of a taxing agency committee
15 consists of five members. If the project is not located within a city or town, a quorum consists of
16 four members.
17 (c) A taxing agency committee formed in accordance with this section has the authority
18 to:
19 (i) represent all taxing entities in a project area and cast votes that will be binding on the
20 governing boards of all taxing entities in a project area;
21 (ii) negotiate with the agency concerning the redevelopment plan;
22 (iii) approve or disapprove project area budgets; and
23 (iv) approve an exception to the limits on the value and size of project areas imposed by
24 Section 17A-2-1210[, or the time and amount of tax increment financing under this section].
25 (3) (a) An agency must obtain the majority consent of a quorum of the taxing agency
26 committee for the project area budget before an agency may collect any tax increment for a project
27 area.
28 (b) Except as provided in Subsection (3)(c), the project area budget may be amended at
29 the request of the agency by obtaining the majority consent of a quorum of the taxing agency
30 committee.
31 (c) (i) Beginning on January 1, 1997, before a taxing agency committee approves an

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

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