S.B. 35 Enrolled

REDEVELOPMENT OF SUPERFUND SITES
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: D. Chris Buttars
This act modifies the Redevelopment Agencies Act. The act expands the criteria for
blight to include a superfund site. The act makes an exception to a size restriction on
project areas for the case of a superfund site.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
17B-4-102, as last amended by Chapters 185 and 205, Laws of Utah 2002
17B-4-403, as last amended by Chapter 205, Laws of Utah 2002
17B-4-404, as enacted by Chapter 133, Laws of Utah 2001
17B-4-602, as enacted by Chapter 133, Laws of Utah 2001
17B-4-604, as enacted by Chapter 133, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17B-4-102 is amended to read:
17B-4-102. Definitions.
(1) "Agency" means a separate body corporate and politic, created under Section
17B-4-201 or previous law, that is a political subdivision of the state, that is created to
undertake or promote redevelopment, economic development, or education housing
development, or any combination of them, as provided in this chapter, and whose geographic
boundaries are coterminous with:
(a) for an agency created by a county, the unincorporated area of the county; and
(b) for an agency created by a city or town, the boundaries of the city or town.
(2) "Assessment property owner" or "assessment owner of property" means the owner
of real property as shown on the assessment roll of the county in which the property is located,
equalized as of the previous November 1.
(3) "Assessment roll" has the meaning as defined in Section 59-2-102 .
(4) "Base taxable value" means the taxable value of the property within a project area

from which tax increment will be collected, as shown upon the assessment roll last equalized
before:
(a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan; or
(b) for a post-June 30, 1993 project area plan:
(i) the date of the taxing entity committee's approval of the first project area budget; or
(ii) if no taxing entity committee approval is required for the project area budget, the
later of:
(A) the date the project area plan is adopted by the community legislative body; and
(B) the date the agency adopts the first project area budget.
(5) "Blight" or "blighted" means the condition of an area that meets the requirements of
Subsection 17B-4-604 (1).
(6) "Blight hearing" means a public hearing under Subsection 17B-4-601 (3) and Section
17B-4-603 regarding the existence or nonexistence of blight within the proposed redevelopment
project area.
(7) "Blight study" means a study to determine the existence or nonexistence of blight
within a survey area as provided in Section 17B-4-602 .
(8) "Board" means the governing body of an agency, as provided in Section 17B-4-203 .
(9) "Budget hearing" means the public hearing on a draft project area budget required
under Subsection 17B-4-501 (2)(e).
(10) "Community" means a county, city, or town.
(11) "Economic development" means to promote the creation or retention of public or
private jobs within the state through:
(a) planning, design, development, construction, rehabilitation, business relocation, or
any combination of these, within part or all of a project area; and
(b) the provision of office, industrial, manufacturing, warehousing, distribution, parking,
public, or other facilities, or other improvements that benefit the state or a community.
(12) "Education housing development" means the provision of high density housing
within a project area that is adjacent to a public or private institution of higher education.

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(13) "Loan fund board" means the Olene Walker Housing Loan Fund Board, established
under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
(14) "Plan hearing" means the public hearing on a draft project area plan required under
Subsection 17B-4-402 (1)(e).
(15) "Post-June 30, 1993 project area plan" means a redevelopment, economic
development, or education housing development project area plan adopted on or after July 1,
1993, whether or not amended subsequent to its adoption.
(16) "Pre-July 1, 1993 project area plan" means a redevelopment project area plan
adopted before July 1, 1993, whether or not amended subsequent to its adoption.
(17) "Private," with respect to real property, means:
(a) not owned by the United States or any agency of the federal government, a public
entity, or any other governmental entity; and
(b) not dedicated to public use.
(18) "Project area" means the geographic area described in a project area plan or draft
project area plan where the redevelopment, economic development, or education housing
development set forth in the project area plan or draft project area plan takes place or is proposed
to take place.
(19) "Project area budget" means a multiyear projection of annual or cumulative
revenues and expenses and other fiscal matters pertaining to a redevelopment, economic
development, or education housing development project area that includes:
(a) the base taxable value of property in the project area;
(b) the projected tax increment expected to be generated within the project area;
(c) the amount of tax increment expected to be shared with other taxing entities;
(d) the amount of tax increment expected to be used to implement the project area plan,
including the estimated amount of tax increment to be used for land acquisition, public
improvements, infrastructure improvements, and loans, grants, or other incentives to private and
public entities;
(e) the tax increment expected to be used to cover the cost of administering the project

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area plan;
(f) if the area from which tax increment is to be collected is less than the entire project
area, a legal description of the portion of the project area from which tax increment will be
collected; and
(g) for property that the agency owns and expects to sell, the expected total cost of the
property to the agency and the expected selling price.
(20) "Project area plan" means a written plan under Part 4, Project Area Plan, that, after
its effective date, guides and controls the redevelopment, economic development, or education
housing development activities within the project area.
(21) "Property tax" includes privilege tax and each levy on an ad valorem basis on
tangible or intangible personal or real property.
(22) "Public entity" means:
(a) the state, including any of its departments or agencies; or
(b) a political subdivision of the state, including a county, city, town, school district,
special district, local district, or interlocal cooperation entity.
(23) "Public input hearing" means the public hearing required under Subsection
17B-4-402 (1)(h)(ii) regarding a proposed redevelopment project.
(24) "Record property owner" or "record owner of property" means the owner of real
property as shown on the records of the recorder of the county in which the property is located
and includes a purchaser under a real estate contract if the contract is recorded in the office of the
recorder of the county in which the property is located or the purchaser gives written notice of the
real estate contract to the agency.
(25) "Redevelopment" means the development activities under a project area plan within
a redevelopment project area, including:
(a) planning, design, development, demolition, clearance, construction, rehabilitation, or
any combination of these, of part or all of a project area;
(b) the provision of residential, commercial, industrial, public, or other structures or
spaces, including recreational and other facilities incidental or appurtenant to them;

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(c) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
any combination of these, existing structures in a project area;
(d) providing open space, including streets and other public grounds and space around
buildings;
(e) providing public or private buildings, infrastructure, structures, and improvements;
and
(f) providing improvements of public or private recreation areas and other public
grounds.
(26) "Superfund site":
(a) means an area included in the National Priorities List under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
(b) includes an area formerly included in the National Priorities List, as described in
Subsection (26)(a), but removed from the list following remediation that leaves on site the waste
that caused the area to be included in the National Priorities List.
[(26)] (27) "Survey area" means an area designated by a survey area resolution for study
to determine whether one or more redevelopment projects within the area are feasible.
[(27)] (28) "Survey area resolution" means a resolution adopted by the agency board
under Subsection 17B-4-401 (1)(a) designating a survey area.
[(28)] (29) (a) "Tax increment" means, except as provided in Subsection [(28)] (29)(b),
the difference between:
(i) the amount of property tax revenues generated each tax year by all taxing entities from
the area within a project area designated in the project area plan as the area from which tax
increment is to be collected, using the current assessed value of the property; and
(ii) the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
(b) "Tax increment" does not include taxes levied and collected under Section
59-2-906.1 on or after January 1, 1994 upon the taxable property in the project area unless:
(i) the project area plan was adopted before May 4, 1993, whether or not the project area

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plan was subsequently amended; and
(ii) the taxes were pledged to support bond indebtedness or other contractual obligations
of the agency.
[(29)] (30) "Taxing entity" means a public entity that levies a tax on property within a
project area or proposed project area.
[(30)] (31) "Taxing entity committee" means a committee representing the interests of
taxing entities, created as provided in Section 17B-4-1002 .
Section 2. Section 17B-4-403 is amended to read:
17B-4-403. Project area plan requirements.
(1) Each project area plan and draft project area plan shall:
(a) describe the boundaries of the project area;
(b) contain a general statement of the land uses, layout of principal streets, population
densities, and building intensities of the project area and how they will be affected by the
redevelopment, economic development, or education housing development;
(c) state the standards that will guide the redevelopment, economic development, or
education housing development;
(d) show how the purposes of this chapter will be attained by the redevelopment,
economic development, or education housing development;
(e) be consistent with the general plan of the community in which the project area is
located and show that the redevelopment, economic development, or education housing
development will conform to the community's general plan;
(f) if the agency board made a finding of blight under Subsection 17B-4-601 (4)(b):
(i) describe how the redevelopment will reduce or eliminate blight in the project area;
and
(ii) if the agency is to have the power of eminent domain under the project area plan:
(A) provide record owners of property located within the redevelopment project area and
their tenants reasonable opportunities to participate in the redevelopment if the record property
owner or tenant enters into a participation agreement with the agency;

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(B) state that the agency has adopted or will adopt guidelines setting forth and governing
the opportunities of record property owners and tenants to participate in the redevelopment, as
required by Subsection 17B-4-402 (1)(h)(iv); and
(C) include a plan for the relocation of any families and persons who will be temporarily
or permanently displaced from housing facilities in the redevelopment project area;
(g) if the project area plan is for economic development, describe how the economic
development will create additional jobs;
(h) if the project area plan is for education housing development, describe how the
education housing development will meet the needs of the community in which the project area
is located;
(i) describe any specific project or projects that are the object of the proposed
redevelopment, economic development, or education housing development;
(j) identify how private developers, if any, will be selected to undertake the
redevelopment, economic development, or education housing development and identify each
private developer currently involved in the redevelopment, economic development, or education
housing development process;
(k) contain a time limit of no more than three years after adoption of the project area plan
for the agency to commence implementation of the project area plan, unless the project area plan
is adopted again as if it were an amended project area plan under Section 17B-4-411 ;
(l) if the project area plan authorizes the use of eminent domain, contain a time limit of
no more than five years after the effective date of the project area plan for the agency to
commence acquisition of property through the use of eminent domain;
(m) if the project area plan provides for tax increment to be paid to the agency:
(i) contain a time limit of no more than 25 years for tax increment to be paid to the
agency from the project area unless the taxing entity committee consents to a longer period; and
(ii) contain a provision that the project area may not exceed 100 acres of private real
property unless:
(A) the agency obtains the consent of the taxing entity committee; or

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(B) the project area is a superfund site;
(n) state the reasons for the selection of the project area;
(o) describe the physical, social, and economic conditions existing in the project area;
(p) provide a financial analysis describing the proposed method of financing the
proposed redevelopment, economic development, or education housing development;
(q) describe any tax incentives offered private entities for facilities located in the project
area;
(r) contain the report and state any recommendations of the community's planning
commission;
(s) include an analysis, as provided in Subsection (2), of whether adoption of the project
area plan is:
(i) for a redevelopment project area plan, necessary and appropriate to reduce or
eliminate blight; or
(ii) for an economic development or education housing development project area plan,
beneficial under a benefit analysis;
(t) if any of the existing buildings or uses in the project area are included in or eligible
for inclusion in the National Register of Historic Places or the State Register, state that the
agency shall comply with Subsection 9-8-404 (1) as though the agency were a state agency; and
(u) include other information that the agency determines to be necessary or advisable.
(2) Each analysis under Subsection (1)(s)(ii) shall consider:
(a) the benefit of any financial assistance or other public subsidy proposed to be provided
by the agency, including:
(i) an evaluation of the reasonableness of the costs of economic development or
education housing development;
(ii) efforts the agency has made or will make to maximize private investment;
(iii) the rationale for use of tax increment, including an analysis of whether the proposed
development might reasonably be expected to occur in the foreseeable future solely through
private investment; and

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(iv) an estimate of the total amount of tax increment that will be expended in undertaking
economic development or education housing development and the length of time for which it
will be expended; and
(b) the anticipated public benefit to be derived from the economic development or
education housing development, including:
(i) the beneficial influences upon the tax base of the community;
(ii) the associated business and economic activity likely to be stimulated; and
(iii) in the case of economic development, the number of jobs or employment anticipated
to be generated or preserved.
Section 3. Section 17B-4-404 is amended to read:
17B-4-404. Limit on size of project area in certain project area plans.
A project area under a project area plan that provides for tax increment funds to be paid to
the agency may not exceed 100 acres of private real property unless:
(1) the agency obtains the consent of the taxing entity committee; [or]
(2) the project area plan was adopted on or before April 1, 1983[.]; or
(3) the project area is a superfund site.
Section 4. Section 17B-4-602 is amended to read:
17B-4-602. Blight study -- Requirements -- Deadline.
(1) Each blight study required under Subsection 17B-4-601 (1) shall:
(a) provide data so the board may determine:
(i) whether the conditions described in Subsections 17B-4-604 (1)(a)(i) and [(b)] (ii) exist
in part or all of the survey area; [and]
(ii) whether the factors listed in Subsection 17B-4-604 (1)[(c)] (a)(iii) are present in the
survey area; and
(iii) whether the survey area contains a superfund site;
(b) include a written report setting forth:
(i) the conclusions reached; and
(ii) any other information requested by the agency to determine whether a redevelopment

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project area is feasible; and
(c) be completed within one year after the adoption of the survey area resolution.
(2) (a) If a blight study is not completed within one year after the adoption of the
resolution under Subsection 17B-4-401 (1)(a) designating a survey area, the agency may not
approve a redevelopment project area plan based on that blight study unless it first adopts a new
resolution under Subsection 17B-4-401 (1)(a).
(b) A new resolution under Subsection (2)(a) shall in all respects be considered to be a
resolution under Subsection 17B-4-401 (1)(a) adopted for the first time, except that any actions
taken toward completing a blight study under the resolution that the new resolution replaces shall
be considered to have been taken under the new resolution.
Section 5. Section 17B-4-604 is amended to read:
17B-4-604. Conditions on board determination of blight -- Conditions of blight
caused by the developer.
(1) An agency board may not make a finding of blight in a resolution under Subsection
17B-4-601 (4)(b) unless the board finds that the redevelopment project area:
(a) (i) contains buildings or improvements used or intended to be used for residential,
commercial, industrial, or other urban purposes, or any combination of those uses;
[(b)] (ii) contains buildings or improvements on at least 50% of the number of parcels of
private real property whose acreage is at least 50% of the acreage of the private real property
within the proposed redevelopment project area; and
[(c)] (iii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of
disease, infant mortality, juvenile delinquency, or crime because of any three or more of the
following factors:
[(i)] (A) defective character of physical construction;
[(ii)] (B) high density of population or overcrowding;
[(iii)] (C) inadequate ventilation, light, or spacing between buildings;
[(iv)] (D) mixed character and shifting of uses, resulting in obsolescence, deterioration,
or dilapidation;

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[(v)] (E) economic deterioration or continued disuse;
[(vi)] (F) lots of irregular shape or inadequate size for proper usefulness and
development, or laying out of lots in disregard of the contours and other physical characteristics
of the ground and surrounding conditions;
[(vii)] (G) inadequate sanitation or public facilities which may include streets, open
spaces, and utilities;
[(viii)] (H) areas that are subject to being submerged by water; and
[(ix)] (I) existence of any hazardous or solid waste, defined as any substance defined,
regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic waste,
pollutant, contaminant, or toxic substance, or identified as hazardous to human health or the
environment under state or federal law or regulation[.]; or
(b) is a superfund site.
(2) (a) For purposes of Subsection (1), if a developer involved in the redevelopment
project causes a condition listed in Subsection (1)[(c)] (a)(iii) within the project area, the
condition caused by the developer may not be used in the determination of blight.
(b) Subsection (2)(a) does not apply to a condition that was caused by an owner or tenant
who becomes a developer under Section 17B-4-901 .

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