H.B. 307

1

REDEVELOPMENT AGENCY CHANGES
2 2005 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: John Dougall
5
6 LONG TITLE
7 General Description:
8 This bill modifies provisions of the Redevelopment Agencies Act.
9 Highlighted Provisions:
10 This bill:
11 . enacts a definition of participating taxing entity;
12 . modifies the definition of tax increment to include property tax only from taxing
13 entities who elect to have their taxes paid to and used by an agency;
14 . requires the taxing entity committee's approval before an agency may commission a
15 blight study;
16 . requires an agency's finding of blight to be approved by the taxing entity committee;
17 . modifies what constitutes blight;
18 . prohibits community caused conditions to be considered as blight;
19 . requires agency boards to submit proposed projects to a competitive bid process;
20 . modifies the process for adopting a project area plan; and
21 . modifies the composition of the taxing entity committee to include only
22 representatives from taxing entities who elect to have their tax increment paid to
23 and used by an agency.
24 Monies Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None

28 Utah Code Sections Affected:
29 AMENDS:
30 17B-4-102, as last amended by Chapter 256, Laws of Utah 2003
31 17B-4-401, as enacted by Chapter 133, Laws of Utah 2001
32 17B-4-402, as last amended by Chapter 205, Laws of Utah 2002
33 17B-4-403, as last amended by Chapter 256, Laws of Utah 2003
34 17B-4-601, as enacted by Chapter 133, Laws of Utah 2001
35 17B-4-602, as last amended by Chapter 256, Laws of Utah 2003
36 17B-4-603, as last amended by Chapter 205, Laws of Utah 2002
37 17B-4-604, as last amended by Chapter 256, Laws of Utah 2003
38 17B-4-605, as enacted by Chapter 133, Laws of Utah 2001
39 17B-4-1002, as last amended by Chapter 205, Laws of Utah 2002
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 17B-4-102 is amended to read:
43 17B-4-102. Definitions.
44 (1) "Agency" means a separate body corporate and politic, created under Section
45 17B-4-201 or previous law, that is a political subdivision of the state, that is created to
46 undertake or promote redevelopment, economic development, or education housing
47 development, or any combination of them, as provided in this chapter, and whose geographic
48 boundaries are coterminous with:
49 (a) for an agency created by a county, the unincorporated area of the county; and
50 (b) for an agency created by a city or town, the boundaries of the city or town.
51 (2) "Assessment property owner" or "assessment owner of property" means the owner
52 of real property as shown on the assessment roll of the county in which the property is located,
53 equalized as of the previous November 1.
54 (3) "Assessment roll" has the meaning as defined in Section 59-2-102 .
55 (4) "Base taxable value" means the taxable value of the property within a project area
56 from which tax increment will be collected, as shown upon the assessment roll last equalized
57 before:
58 (a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan;

59 or
60 (b) for a post-June 30, 1993 project area plan:
61 (i) the date of the taxing entity committee's approval of the first project area budget; or
62 (ii) if no taxing entity committee approval is required for the project area budget, the
63 later of:
64 (A) the date the project area plan is adopted by the community legislative body; and
65 (B) the date the agency adopts the first project area budget.
66 (5) "Blight" or "blighted" means the condition of an area that meets the requirements of
67 Subsection 17B-4-604 (1).
68 (6) "Blight hearing" means a public hearing under Subsection 17B-4-601 [(3)](1)(c) and
69 Section 17B-4-603 regarding the existence or nonexistence of blight within the proposed
70 redevelopment project area.
71 (7) "Blight study" means a study to determine the existence or nonexistence of blight
72 within a survey area as provided in Section 17B-4-602 .
73 (8) "Board" means the governing body of an agency, as provided in Section 17B-4-203 .
74 (9) "Budget hearing" means the public hearing on a draft project area budget required
75 under Subsection 17B-4-501 (2)(e).
76 (10) "Community" means a county, city, or town.
77 (11) "Economic development" means to promote the creation or retention of public or
78 private jobs within the state through:
79 (a) planning, design, development, construction, rehabilitation, business relocation, or
80 any combination of these, within part or all of a project area; and
81 (b) the provision of office, industrial, manufacturing, warehousing, distribution,
82 parking, public, or other facilities, or other improvements that benefit the state or a community.
83 (12) "Education housing development" means the provision of high density housing
84 within a project area that is adjacent to a public or private institution of higher education.
85 (13) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
86 established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
87 (14) "Participating taxing entity" means a taxing entity:
88 (a) some or all of whose area is included within a project area or proposed project area;
89 and

90 (b) that elects in writing to have tax increment it generates paid to and used by an
91 agency.
92 [(14)] (15) "Plan hearing" means the public hearing on a draft project area plan
93 required under Subsection 17B-4-402 (1)(e).
94 [(15)] (16) "Post-June 30, 1993 project area plan" means a redevelopment, economic
95 development, or education housing development project area plan adopted on or after July 1,
96 1993, whether or not amended subsequent to its adoption.
97 [(16)] (17) "Pre-July 1, 1993 project area plan" means a redevelopment project area
98 plan adopted before July 1, 1993, whether or not amended subsequent to its adoption.
99 [(17)] (18) "Private," with respect to real property, means:
100 (a) not owned by the United States or any agency of the federal government, a public
101 entity, or any other governmental entity; and
102 (b) not dedicated to public use.
103 [(18)] (19) "Project area" means the geographic area described in a project area plan or
104 draft project area plan where the redevelopment, economic development, or education housing
105 development set forth in the project area plan or draft project area plan takes place or is
106 proposed to take place.
107 [(19)] (20) "Project area budget" means a multiyear projection of annual or cumulative
108 revenues and expenses and other fiscal matters pertaining to a redevelopment, economic
109 development, or education housing development project area that includes:
110 (a) the base taxable value of property in the project area;
111 (b) the projected tax increment expected to be generated within the project area;
112 (c) the amount of tax increment expected to be shared with other taxing entities;
113 (d) the amount of tax increment expected to be used to implement the project area plan,
114 including the estimated amount of tax increment to be used for land acquisition, public
115 improvements, infrastructure improvements, and loans, grants, or other incentives to private
116 and public entities;
117 (e) the tax increment expected to be used to cover the cost of administering the project
118 area plan;
119 (f) if the area from which tax increment is to be collected is less than the entire project
120 area, a legal description of the portion of the project area from which tax increment will be

121 collected; and
122 (g) for property that the agency owns and expects to sell, the expected total cost of the
123 property to the agency and the expected selling price.
124 [(20)] (21) "Project area plan" means a written plan under Part 4, Project Area Plan,
125 that, after its effective date, guides and controls the redevelopment, economic development, or
126 education housing development activities within the project area.
127 [(21)] (22) "Property tax" includes privilege tax and each levy on an ad valorem basis
128 on tangible or intangible personal or real property.
129 [(22)] (23) "Public entity" means:
130 (a) the state, including any of its departments or agencies; or
131 (b) a political subdivision of the state, including a county, city, town, school district,
132 special district, local district, or interlocal cooperation entity.
133 [(23)] (24) "Public input hearing" means the public hearing required under Subsection
134 17B-4-402 (1)(h)(ii) regarding a proposed redevelopment project.
135 [(24)] (25) "Record property owner" or "record owner of property" means the owner of
136 real property as shown on the records of the recorder of the county in which the property is
137 located and includes a purchaser under a real estate contract if the contract is recorded in the
138 office of the recorder of the county in which the property is located or the purchaser gives
139 written notice of the real estate contract to the agency.
140 [(25)] (26) "Redevelopment" means the development activities under a project area
141 plan within a redevelopment project area, including:
142 (a) planning, design, development, demolition, clearance, construction, rehabilitation,
143 or any combination of these, of part or all of a project area;
144 (b) the provision of residential, commercial, industrial, public, or other structures or
145 spaces, including recreational and other facilities incidental or appurtenant to them;
146 (c) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
147 any combination of these, existing structures in a project area;
148 (d) providing open space, including streets and other public grounds and space around
149 buildings;
150 (e) providing public or private buildings, infrastructure, structures, and improvements;
151 and

152 (f) providing improvements of public or private recreation areas and other public
153 grounds.
154 [(26)] (27) "Superfund site":
155 (a) means an area included in the National Priorities List under the Comprehensive
156 Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
157 (b) includes an area formerly included in the National Priorities List, as described in
158 Subsection [(26)] (27)(a), but removed from the list following remediation that leaves on site
159 the waste that caused the area to be included in the National Priorities List.
160 [(27)] (28) "Survey area" means an area designated by a survey area resolution for
161 study to determine whether one or more redevelopment projects within the area are feasible.
162 [(28)] (29) "Survey area resolution" means a resolution adopted by the agency board
163 under Subsection 17B-4-401 (1)(a) designating a survey area.
164 [(29)] (30) (a) "Tax increment" means, except as provided in Subsection [(29)] (30)(b),
165 the difference between:
166 (i) the amount of property tax revenues generated each tax year by all participating
167 taxing entities from the area within a project area designated in the project area plan as the area
168 from which tax increment is to be collected, using the current assessed value of the property;
169 and
170 (ii) the amount of property tax revenues that would be generated from that same area
171 by participating taxing entities using the base taxable value of the property.
172 (b) "Tax increment" does not include taxes levied and collected under Section
173 59-2-906.1 on or after January 1, 1994 upon the taxable property in the project area unless:
174 (i) the project area plan was adopted before May 4, 1993, whether or not the project
175 area plan was subsequently amended; and
176 (ii) the taxes were pledged to support bond indebtedness or other contractual
177 obligations of the agency.
178 [(30)] (31) "Taxing entity" means a public entity that levies a tax on property within a
179 project area or proposed project area.
180 [(31)] (32) "Taxing entity committee" means a committee representing the interests of
181 taxing entities, created as provided in Section 17B-4-1002 .
182 Section 2. Section 17B-4-401 is amended to read:

183 17B-4-401. Resolution designating survey area or authorizing the preparation of
184 a draft project area plan -- Request to adopt resolution.
185 (1) An agency board may begin the process of adopting a project area plan by adopting
186 a resolution that:
187 (a) for a proposed redevelopment project area plan:
188 (i) designates an area located within the agency's boundaries as a survey area;
189 (ii) contains a statement that the survey area requires study to determine whether:
190 (A) one or more redevelopment projects within the survey area are feasible; and
191 (B) blight exists within the survey area; and
192 (iii) contains a description or map of the boundaries of the survey area; or
193 (b) for a proposed economic development or education housing development project
194 area plan, authorizes the preparation of a draft project area plan.
195 (2) (a) Any person or any group, association, corporation, or other entity may submit a
196 written request to the board to adopt a resolution under Subsection (1).
197 (b) A request under Subsection (2)(a) may include plans showing the redevelopment,
198 economic development, or education housing development proposed for an area within the
199 agency's boundaries.
200 (c) The board may, in its sole discretion, grant or deny a request under Subsection
201 (2)(a).
202 (3) (a) (i) After adopting a resolution under Subsection (1), the board shall advertise
203 the proposed project and solicit bids for the project as provided in this Subsection (3) and
204 under Title 63, Chapter 56, Utah Procurement Code.
205 (ii) In advertising the project and soliciting bids, the board shall provide potential
206 bidders information about the range of concepts that the board considers appropriate for the
207 proposed project so that potential bidders may develop bids for projects that are consistent with
208 those concepts.
209 (b) The board may award a contract for the project to the bidder that submits the bid
210 that the board determines will result in a project that best fulfills the board's purposes in
211 proposing the project.
212 Section 3. Section 17B-4-402 is amended to read:
213 17B-4-402. Process for adopting project area plan -- Prerequisites -- Restrictions.

214 (1) In order to adopt a project area plan, after adopting a resolution under Subsection
215 17B-4-401 (1) and conducting a bid process as provided in Subsection 17B-4-401 (3) the agency
216 shall:
217 (a) prepare a draft of a project area plan and conduct any examination, investigation,
218 and negotiation regarding the project area plan that the agency considers appropriate;
219 (b) request input on the draft project area plan from the planning commission of the
220 community in which the proposed project area is located;
221 (c) make the draft project area plan available to the public at the agency's offices during
222 normal business hours;
223 (d) provide notice of the plan hearing as provided in Sections 17B-4-702 and
224 17B-4-704 ;
225 (e) hold a public hearing on the draft project area plan and, at that public hearing:
226 (i) allow public comment on:
227 (A) the draft project area plan; and
228 (B) whether the draft project area plan should be revised, approved, or rejected; and
229 (ii) receive all written and hear all oral objections to the draft project area plan;
230 (f) before holding the plan hearing, provide an opportunity for the State Board of
231 Education and each taxing entity that levies a tax on property within the proposed project area
232 to consult with the agency regarding the draft project area plan;
233 (g) if applicable, hold the election required under Subsection 17B-4-406 (3);
234 (h) for a redevelopment project area plan:
235 (i) comply with the requirements of Part 6, Blight Determination in Redevelopment
236 Project Areas;
237 (ii) before providing notice of the plan hearing, hold at least one public hearing to:
238 (A) inform the public about each area being considered for a redevelopment project
239 area; and
240 (B) allow public input into agency deliberations on proposing each redevelopment
241 project area;
242 (iii) select one or more project areas comprising part or all of the survey area; and
243 (iv) before sending the first notice to assessment owners of property for a public input
244 hearing, blight hearing, or combined public input and blight hearing, prepare and adopt

245 guidelines setting forth and governing the reasonable opportunities of record property owners
246 and tenants to participate in the redevelopment;
247 (i) after holding the plan hearing, at the same meeting or at a subsequent meeting
248 consider:
249 (i) the oral and written objections to the draft project area plan and evidence and
250 testimony for or against adoption of the draft project area plan; and
251 (ii) whether to revise, approve, or reject the draft project area plan;
252 (j) approve the draft project area plan, with or without revisions, as the project area
253 plan by a resolution that complies with Section 17B-4-407 ; and
254 (k) submit the project area plan to the community legislative body for adoption.
255 (2) An agency may not propose a project area plan under Subsection (1) unless the
256 community in which the proposed project area is located:
257 (a) has a planning commission; and
258 (b) has adopted a general plan under:
259 (i) if the community is a city or town, Title 10, Chapter 9, Part 3, General Plan; or
260 (ii) if the community is a county, Title 17, Chapter 27, Part 3, General Plan.
261 (3) (a) Subject to Subsection (3)(b), an agency board may not approve a project area
262 plan more than one year after:
263 (i) for a redevelopment project area plan involving the use of eminent domain,
264 adoption of a resolution making a finding of blight under Subsection
265 17B-4-601 [(4)(b)](1)(d)(ii); or
266 (ii) for an economic development or education housing development project area plan,
267 the date of the plan hearing.
268 (b) If a project area plan is submitted to an election under Subsection 17B-4-406 (3),
269 the time between the plan hearing and the date of the election does not count for purposes of
270 calculating the year period under Subsection (3)(a).
271 (4) (a) Except as provided in Subsection (4)(b), a draft project area plan may not be
272 modified to add real property to the proposed project area unless the board holds a plan hearing
273 to consider the addition and gives notice of the plan hearing as required under Sections
274 17B-4-702 and 17B-4-704 .
275 (b) The notice and hearing requirements under Subsection (4)(a) do not apply to a draft

276 project area plan being modified to add real property to the proposed project area if:
277 (i) the property is contiguous to the property already included in the proposed project
278 area under the draft project area plan;
279 (ii) the record owner of the property consents to adding the real property to the
280 proposed project area; and
281 (iii) for a redevelopment project area, the property is located within the survey area.
282 Section 4. Section 17B-4-403 is amended to read:
283 17B-4-403. Project area plan requirements.
284 (1) Each project area plan and draft project area plan shall:
285 (a) describe the boundaries of the project area;
286 (b) contain a general statement of the land uses, layout of principal streets, population
287 densities, and building intensities of the project area and how they will be affected by the
288 redevelopment, economic development, or education housing development;
289 (c) state the standards that will guide the redevelopment, economic development, or
290 education housing development;
291 (d) show how the purposes of this chapter will be attained by the redevelopment,
292 economic development, or education housing development;
293 (e) be consistent with the general plan of the community in which the project area is
294 located and show that the redevelopment, economic development, or education housing
295 development will conform to the community's general plan;
296 (f) if the agency board made a finding of blight under Subsection
297 17B-4-601 [(4)(b)](1)(d)(ii):
298 (i) describe how the redevelopment will reduce or eliminate blight in the project area;
299 and
300 (ii) if the agency is to have the power of eminent domain under the project area plan:
301 (A) provide record owners of property located within the redevelopment project area
302 and their tenants reasonable opportunities to participate in the redevelopment if the record
303 property owner or tenant enters into a participation agreement with the agency;
304 (B) state that the agency has adopted or will adopt guidelines setting forth and
305 governing the opportunities of record property owners and tenants to participate in the
306 redevelopment, as required by Subsection 17B-4-402 (1)(h)(iv); and

307 (C) include a plan for the relocation of any families and persons who will be
308 temporarily or permanently displaced from housing facilities in the redevelopment project area;
309 (g) if the project area plan is for economic development, describe how the economic
310 development will create additional jobs;
311 (h) if the project area plan is for education housing development, describe how the
312 education housing development will meet the needs of the community in which the project area
313 is located;
314 (i) describe any specific project or projects that are the object of the proposed
315 redevelopment, economic development, or education housing development;
316 (j) identify how private developers, if any, will be selected to undertake the
317 redevelopment, economic development, or education housing development and identify each
318 private developer currently involved in the redevelopment, economic development, or
319 education housing development process;
320 (k) contain a time limit of no more than three years after adoption of the project area
321 plan for the agency to commence implementation of the project area plan, unless the project
322 area plan is adopted again as if it were an amended project area plan under Section 17B-4-411 ;
323 (l) if the project area plan authorizes the use of eminent domain, contain a time limit of
324 no more than five years after the effective date of the project area plan for the agency to
325 commence acquisition of property through the use of eminent domain;
326 (m) if the project area plan provides for tax increment to be paid to the agency:
327 (i) contain a time limit of no more than 25 years for tax increment to be paid to the
328 agency from the project area unless the taxing entity committee consents to a longer period;
329 and
330 (ii) contain a provision that the project area may not exceed 100 acres of private real
331 property unless:
332 (A) the agency obtains the consent of the taxing entity committee; or
333 (B) the project area is a superfund site;
334 (n) state the reasons for the selection of the project area;
335 (o) describe the physical, social, and economic conditions existing in the project area;
336 (p) provide a financial analysis describing the proposed method of financing the
337 proposed redevelopment, economic development, or education housing development;

338 (q) describe any tax incentives offered private entities for facilities located in the
339 project area;
340 (r) contain the report and state any recommendations of the community's planning
341 commission;
342 (s) include an analysis, as provided in Subsection (2), of whether adoption of the
343 project area plan is:
344 (i) for a redevelopment project area plan, necessary and appropriate to reduce or
345 eliminate blight; or
346 (ii) for an economic development or education housing development project area plan,
347 beneficial under a benefit analysis;
348 (t) if any of the existing buildings or uses in the project area are included in or eligible
349 for inclusion in the National Register of Historic Places or the State Register, state that the
350 agency shall comply with Subsection 9-8-404 (1) as though the agency were a state agency; and
351 (u) include other information that the agency determines to be necessary or advisable.
352 (2) Each analysis under Subsection (1)(s)(ii) shall consider:
353 (a) the benefit of any financial assistance or other public subsidy proposed to be
354 provided by the agency, including:
355 (i) an evaluation of the reasonableness of the costs of economic development or
356 education housing development;
357 (ii) efforts the agency has made or will make to maximize private investment;
358 (iii) the rationale for use of tax increment, including an analysis of whether the
359 proposed development might reasonably be expected to occur in the foreseeable future solely
360 through private investment; and
361 (iv) an estimate of the total amount of tax increment that will be expended in
362 undertaking economic development or education housing development and the length of time
363 for which it will be expended; and
364 (b) the anticipated public benefit to be derived from the economic development or
365 education housing development, including:
366 (i) the beneficial influences upon the tax base of the community;
367 (ii) the associated business and economic activity likely to be stimulated; and
368 (iii) in the case of economic development, the number of jobs or employment

369 anticipated to be generated or preserved.
370 Section 5. Section 17B-4-601 is amended to read:
371 17B-4-601. Additional procedure for adopting a redevelopment project area
372 plan.
373 (1) In addition to other applicable requirements for adopting a project area plan, to
374 adopt a redevelopment project area plan the agency shall:
375 [(1)] (a) after receiving the taxing entity committee's consent for a blight study, cause a
376 blight study to be conducted within the survey area as provided in Section 17B-4-602 ;
377 [(2)] (b) provide notice of a blight hearing as required under Part 7, Notice
378 Requirements;
379 [(3)] (c) hold a blight hearing as provided in Section 17B-4-603 ; and
380 [(4)] (d) after the blight hearing has been held, hold a board meeting, either at the same
381 time as the blight hearing or at a subsequent board meeting, at which the board shall:
382 [(a)] (i) consider:
383 [(i)] (A) the issue of blight and the evidence and information relating to the existence
384 or nonexistence of blight; and
385 [(ii)] (B) whether adoption of one or more redevelopment project area plans should be
386 pursued; and
387 [(b) by resolution] (ii) make a finding regarding the existence of blight in the proposed
388 redevelopment project area.
389 (2) The agency's finding of blight under Subsection (1) has no effect until approved by
390 the taxing entity committee.
391 Section 6. Section 17B-4-602 is amended to read:
392 17B-4-602. Blight study -- Requirements -- Deadline.
393 (1) Each blight study required under Subsection 17B-4-601 (1)(a) shall:
394 (a) provide data so the board may determine:
395 (i) whether the conditions described in [Subsections] Subsection 17B-4-604 (1)(a)[(i)
396 and (ii)] exist in [part or all of] the survey area; and
397 [(ii) whether the factors listed in Subsection 17B-4-604 (1)(a)(iii) are present in the
398 survey area; and]
399 [(iii)] (ii) whether the survey area contains a superfund site;

400 (b) include a written report setting forth:
401 (i) the conclusions reached; and
402 (ii) any other information requested by the agency to determine whether a
403 redevelopment project area is feasible; and
404 (c) be completed within one year after the adoption of the survey area resolution.
405 (2) (a) If a blight study is not completed within one year after the adoption of the
406 resolution under Subsection 17B-4-401 (1)(a) designating a survey area, the agency may not
407 approve a redevelopment project area plan based on that blight study unless it first adopts a
408 new resolution under Subsection 17B-4-401 (1)(a).
409 (b) A new resolution under Subsection (2)(a) shall in all respects be considered to be a
410 resolution under Subsection 17B-4-401 (1)(a) adopted for the first time, except that any actions
411 taken toward completing a blight study under the resolution that the new resolution replaces
412 shall be considered to have been taken under the new resolution.
413 Section 7. Section 17B-4-603 is amended to read:
414 17B-4-603. Blight hearing -- Owners may review evidence of blight.
415 (1) In each hearing required under Subsection 17B-4-601 [(3)](1)(c), the agency shall:
416 (a) permit all evidence of the existence or nonexistence of blight within the proposed
417 redevelopment project area to be presented; and
418 (b) permit each record owner of property located within the proposed redevelopment
419 project area or the record property owner's representative the opportunity to:
420 (i) examine and cross-examine witnesses providing evidence of the existence or
421 nonexistence of blight; and
422 (ii) present evidence and testimony, including expert testimony, concerning the
423 existence or nonexistence of blight.
424 (2) The agency shall allow record owners of property located within a proposed
425 redevelopment project area the opportunity, for at least 30 days before the hearing, to review
426 the evidence of blight compiled by the agency or by the person or firm conducting the blight
427 study for the agency, including any expert report.
428 Section 8. Section 17B-4-604 is amended to read:
429 17B-4-604. Conditions on board determination of blight -- Conditions of blight
430 caused by the developer.

431 (1) An agency board may not make a finding of blight in a resolution under Subsection
432 17B-4-601 [(4)(b)](1)(d)(ii) unless the board finds that the redevelopment project area:
433 [(a) (i) contains buildings or improvements used or intended to be used for residential,
434 commercial, industrial, or other urban purposes, or any combination of those uses;]
435 [(ii) contains buildings or improvements on at least 50% of the number of parcels of
436 private real property whose acreage is at least 50% of the acreage of the private real property
437 within the proposed redevelopment project area; and]
438 [(iii)] (a) (i) has been condemned because it is unfit or unsafe to occupy or [may be]
439 conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime
440 [because of any three or more of the following factors:]; or
441 [(A) defective character of physical construction;]
442 [(B) high density of population or overcrowding;]
443 [(C) inadequate ventilation, light, or spacing between buildings;]
444 [(D) mixed character and shifting of uses, resulting in obsolescence, deterioration, or
445 dilapidation;]
446 [(E) economic deterioration or continued disuse;]
447 [(F) lots of irregular shape or inadequate size for proper usefulness and development,
448 or laying out of lots in disregard of the contours and other physical characteristics of the ground
449 and surrounding conditions;]
450 [(G) inadequate sanitation or public facilities which may include streets, open spaces,
451 and utilities;]
452 [(H) areas that are subject to being submerged by water; and]
453 [(I) existence of any hazardous or solid waste, defined as any substance defined,
454 regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic waste,
455 pollutant, contaminant, or toxic substance, or identified as hazardous to human health or the
456 environment under state or federal law or regulation; or]
457 (ii) experiences an inordinately high rate of crime that results to a significant degree
458 from the dilapidated condition of structures within the project area; or
459 (b) is a superfund site.
460 (2) (a) For purposes of Subsection (1), if a developer involved in the redevelopment
461 project or the community in which the project area is located causes a condition listed in

462 Subsection (1)(a)[(iii)] within the project area, the condition caused by the developer or
463 community may not be used in the determination of blight.
464 (b) Subsection (2)(a) does not apply to a condition that was caused by an owner or
465 tenant who becomes a developer under Section 17B-4-901 .
466 Section 9. Section 17B-4-605 is amended to read:
467 17B-4-605. Challenging a finding of blight -- Time limit -- De novo review.
468 (1) If the board makes a finding of blight under Subsection 17B-4-601 [(4)(b)](1)(d)(ii),
469 a record owner of property located within the proposed redevelopment project area may
470 challenge the finding by filing an action with the district court for the county in which the
471 property is located.
472 (2) Each challenge under Subsection (1) shall be filed within 30 days after the board's
473 adoption of the resolution containing the finding of blight.
474 (3) In each action under this section:
475 (a) the district court shall review de novo the finding of blight; and
476 (b) the agency maintains the burden of proof regarding the existence of blight.
477 Section 10. Section 17B-4-1002 is amended to read:
478 17B-4-1002. Taxing entity committee.
479 (1) Each agency that adopts or proposes to adopt a post-June 30, 1993 project area plan
480 shall, and any other agency may, cause a taxing entity committee to be created.
481 (2) (a) (i) Each taxing entity committee shall be composed of:
482 (A) if the boundaries of the project area or proposed project area include one or more
483 school districts that are participating taxing entities, two school district representatives
484 appointed as provided in Subsection (2)(a)(ii);
485 (B) (I) in [counties] a county of the second, third, fourth, fifth, or sixth class that is a
486 participating taxing entity, two representatives appointed by resolution of the legislative body
487 of the county in which the agency is located; or
488 (II) in [counties] a county of the first class that is a participating taxing entity, two
489 representatives appointed by the county executive of the county in which the agency is located;
490 (C) if the agency was created by a city or town that is a participating taxing entity, two
491 representatives appointed by resolution of the legislative body of that city or town;
492 (D) if the boundaries of the project area or proposed project area include one or more

493 school districts that are participating taxing entities, one representative appointed by the State
494 Board of Education; and
495 (E) one representative selected by majority vote of the legislative bodies or governing
496 boards of all other participating taxing entities that levy a tax on property within the agency's
497 boundaries, to represent the interests of those participating taxing entities on the taxing entity
498 committee.
499 (ii) (A) If the agency boundaries include only one school district that is a participating
500 taxing entity, that school district shall appoint the two school district representatives under
501 Subsection (2)(a)(i)(A).
502 (B) If the agency boundaries include two or more [than one] school [district] districts
503 that are participating taxing entities, those school districts shall jointly appoint the two school
504 district representatives under Subsection (2)(a)(i)(A).
505 (b) (i) Each taxing entity committee representative under this Subsection (2) shall be
506 appointed within 30 days after the agency provides notice of the creation of the taxing entity
507 committee.
508 (ii) If a representative is not appointed within the time required under Subsection
509 (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
510 place of the missing representative until that representative is appointed.
511 (c) (i) A taxing entity committee representative may be appointed for a set term or
512 period of time, as determined by the appointing authority under Subsection (2)(a)(i).
513 (ii) Each taxing entity committee representative shall serve until a successor is
514 appointed and qualified.
515 (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
516 an initial appointment or an appointment to replace an already serving representative, the
517 appointing authority shall:
518 (A) notify the agency in writing of the name and address of the newly appointed
519 representative; and
520 (B) provide the agency a copy of the resolution making the appointment or, if the
521 appointment is not made by resolution, other evidence of the appointment.
522 (ii) Each appointing authority of a taxing entity committee representative under
523 Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a

524 representative appointed by that appointing authority.
525 (3) A taxing entity committee represents all taxing entities regarding a project area and
526 may:
527 (a) cast votes that will be binding on all taxing entities;
528 (b) negotiate with the agency concerning a draft project area plan;
529 (c) approve or disapprove the conducting of a blight study under Section 17B-4-601 ;
530 (d) approve or disapprove the agency's finding of blight under Section 17B-4-601 ;
531 [(c)] (e) approve or disapprove a project area budget as provided in Section 17B-4-505 ;
532 [(d)] (f) approve or disapprove amendments to a project area budget as provided in
533 Section 17B-4-507 ;
534 [(e)] (g) approve exceptions to the limits on the value and size of a project area
535 imposed under this chapter;
536 [(f)] (h) approve exceptions to the percentage of tax increment and the period of time
537 that tax increment is paid to the agency as provided in this part;
538 [(g)] (i) approve the use of tax increment for access and utilities outside of a project
539 area that the agency and community legislative body determine to be of benefit to the project
540 area, as provided in Subsection 17B-4-1007 (1)(a)(ii)(D);
541 [(h)] (j) waive the restrictions imposed by Subsection 17B-4-503 (2)(a); and
542 [(i)] (k) give other taxing entity committee approval or consent required or allowed
543 under this chapter.
544 (4) A quorum of a taxing entity committee consists of:
545 (a) except as provided in Subsection (4)(b):
546 (i) if the project area is located within a city or town, five members; or
547 (ii) if the project area is not located within a city or town, four members; or
548 (b) for an education housing development project area as to which the school district
549 has elected under Subsection 17B-4-1004 (5) not to allow the agency to be paid tax increment
550 from school district tax revenues:
551 (i) if the project area is located within a city or town, three members; or
552 (ii) if the project area is not located within a city or town, two members.
553 (5) Taxing entity committee approval, consent, or other action requires the affirmative
554 vote of a majority of a quorum present at a taxing entity committee meeting.

555 (6) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
556 Public Meetings.
557 (7) Each time a school district representative or a representative of the State Board of
558 Education votes as a member of a taxing entity committee to allow an agency to be paid tax
559 increment or to increase the amount or length of time that an agency may be paid tax
560 increment, that representative shall, within 45 days after the vote, provide to the
561 representative's respective school board an explanation in writing of the representative's vote
562 and the reasons for the vote.
563 (8) (a) The assessor of each county in which the agency is located shall provide a
564 written report to the taxing entity committee stating, with respect to property within each
565 project area:
566 (i) the base taxable value, as adjusted by any adjustments under Section 17B-4-1006;
567 and
568 (ii) the assessed value.
569 (b) With respect to the information required under Subsection (8)(a), the assessor shall
570 provide:
571 (i) actual amounts for each year from the adoption of the project area plan to the time
572 of the report; and
573 (ii) estimated amounts for each year beginning the year after the time of the report and
574 ending the time that the agency expects no longer to be paid tax increment from property
575 within the project area.
576 (c) The assessor of the county in which the agency is located shall provide a report
577 under this Subsection (8):
578 (i) at least annually; and
579 (ii) upon request of the taxing entity committee, before a taxing entity committee
580 meeting at which the committee will consider whether to allow the agency to be paid tax
581 increment or to increase the amount or length of time that the agency may be paid tax
582 increment.

Legislative Review Note
as of 2-7-05 1:01 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel