Second Substitute S.B. 184

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Feb 25, 2005 at 12:04 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 2, 2005 at 12:15 PM by ddonat. -->

Senator Curtis S. Bramble proposes the following substitute bill:

1 REDEVELOPMENT AGENCY AMENDMENTS
2 2005 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Curtis S. Bramble
5
6 LONG TITLE
7 General Description:
8 This bill modifies provisions of the Redevelopment Agencies Act.
9 Highlighted Provisions:
10 This bill:
11 . prohibits a redevelopment agency from adopting a project area plan for certain
12 redevelopment project from July 1, 2005 through June 30, 2006 unless a blight
13 study has been commissioned and completed by certain dates;
14 . eliminates a requirement for approval from affected taxing entities and the taxing
15 entity committee for project area plan amendments that provide for tax increment to
16 be paid for a longer period of time than allowed under the adopted project area plan;
17 . requires an agency's finding of blight to be approved by the taxing entity committee;
18 . shifts the authority to appoint one of the two taxing entity committee representatives
19 in counties of the first class from the county executive to the county legislative
20 body;
21 . prohibits a redevelopment agency from using eminent domain to acquire property,
22 except when acquiring property from an agency board member or officer;
23 . modifies a date by which construction of a recreational or cultural facility must
24 begin in order for an agency to be paid additional tax increment for the facility;
25 . eliminates provisions authorizing additional tax increment to be paid to an agency

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- 2 - 26 to pay for a convention center or sports complex, cable television and public
27 telecommunications service, an I-15 interchange, and the relocation of an agriculture related
28 business;
29 . prohibits an amendment to a project area plan that increases the size of the project
30 area;
31 . prohibits an amendment to a project area budget that lengthens the time that tax
32 increment is to be paid to an agency;
33 . prohibits tax increment under a post-June 30, 1993 project area plan from being
34 paid to an agency for more than 25 years, eliminating taxing entity committee
35 consent as a basis for allowing an agency to be paid tax increment for more than 25
36 years;
37 . modifies a provision regarding limitations on the applicability of provisions in the
38 Redevelopment Agencies Act;
39 . eliminates a provision that defines incidental or subordinate development of retail
40 sales to include the development of retail sales of goods from a convention center or
41 sports complex facilities;
42 . prohibits agencies from receiving or using tax increment during a certain period if
43 the tax increment is attributable to property devoted to the development of retail
44 sales of goods in an economic development or education housing development
45 project area;
46 . eliminates a provision that allows a city of the first or second class to use tax
47 increment from one project area in another project area to pay for a convention
48 center or sports complex; and
49 . prohibits an agency from using tax increment to pay for a stadium or arena.
50 Monies Appropriated in this Bill:
51 None
52 Other Special Clauses:
53 This bill provides an immediate effective date.
54 This bill provides revisor instructions.
55 Utah Code Sections Affected:
56 AMENDS:

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- 3 - 57 17B-4-102, as last amended by Chapter 256, Laws of Utah 2003
58 17B-4-105, as enacted by Chapter 133, Laws of Utah 2001
59 17B-4-202, as enacted by Chapter 133, Laws of Utah 2001
60 17B-4-206, as enacted by Chapter 133, Laws of Utah 2001
61 17B-4-402, as last amended by Chapter 205, Laws of Utah 2002
62 17B-4-403, as last amended by Chapter 256, Laws of Utah 2003
63 17B-4-407, as last amended by Chapter 205, Laws of Utah 2002
64 17B-4-411, as last amended by Chapter 205, Laws of Utah 2002
65 17B-4-507, as enacted by Chapter 133, Laws of Utah 2001
66 17B-4-601, as enacted by Chapter 133, Laws of Utah 2001
67 17B-4-602, as last amended by Chapter 256, Laws of Utah 2003
68 17B-4-603, as last amended by Chapter 205, Laws of Utah 2002
69 17B-4-604, as last amended by Chapter 256, Laws of Utah 2003
70 17B-4-605, as enacted by Chapter 133, Laws of Utah 2001
71 17B-4-1002, as last amended by Chapter 205, Laws of Utah 2002
72 17B-4-1003, as last amended by Chapter 191, Laws of Utah 2003
73 17B-4-1004, as last amended by Chapter 205, Laws of Utah 2002
74 17B-4-1005, as enacted by Chapter 133, Laws of Utah 2001
75 17B-4-1007, as last amended by Chapter 205, Laws of Utah 2002
76 17B-4-1101, as enacted by Chapter 133, Laws of Utah 2001
77 REPEALS:
78 17B-4-1102, as last amended by Chapter 223, Laws of Utah 2004
79 17B-4-1103, as enacted by Chapter 133, Laws of Utah 2001
80
81 Be it enacted by the Legislature of the state of Utah:
82 Section 1. Section 17B-4-102 is amended to read:
83 17B-4-102. Definitions.
84 (1) "Agency" means a separate body corporate and politic, created under Section
85 17B-4-201 or previous law, that is a political subdivision of the state, that is created to
86 undertake or promote redevelopment, economic development, or education housing
87 development, or any combination of them, as provided in this chapter, and whose geographic

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- 4 - 88 boundaries are coterminous with:
89 (a) for an agency created by a county, the unincorporated area of the county; and
90 (b) for an agency created by a city or town, the boundaries of the city or town.
91 (2) "Assessment property owner" or "assessment owner of property" means the owner
92 of real property as shown on the assessment roll of the county in which the property is located,
93 equalized as of the previous November 1.
94 (3) "Assessment roll" has the meaning as defined in Section 59-2-102 .
95 (4) "Base taxable value" means the taxable value of the property within a project area
96 from which tax increment will be collected, as shown upon the assessment roll last equalized
97 before:
98 (a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan;
99 or
100 (b) for a post-June 30, 1993 project area plan:
101 (i) the date of the taxing entity committee's approval of the first project area budget; or
102 (ii) if no taxing entity committee approval is required for the project area budget, the
103 later of:
104 (A) the date the project area plan is adopted by the community legislative body; and
105 (B) the date the agency adopts the first project area budget.
106 (5) "Blight" or "blighted" means the condition of an area that meets the requirements of
107 Subsection 17B-4-604 (1).
108 (6) "Blight hearing" means a public hearing under Subsection 17B-4-601 [(3)](1)(c) and
109 Section 17B-4-603 regarding the existence or nonexistence of blight within the proposed
110 redevelopment project area.
111 (7) "Blight study" means a study to determine the existence or nonexistence of blight
112 within a survey area as provided in Section 17B-4-602 .
113 (8) "Board" means the governing body of an agency, as provided in Section 17B-4-203 .
114 (9) "Budget hearing" means the public hearing on a draft project area budget required
115 under Subsection 17B-4-501 (2)(e).
116 (10) "Community" means a county, city, or town.
117 (11) "Economic development" means to promote the creation or retention of public or
118 private jobs within the state through:

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- 5 - 119 (a) planning, design, development, construction, rehabilitation, business relocation, or
120 any combination of these, within part or all of a project area; and
121 (b) the provision of office, industrial, manufacturing, warehousing, distribution,
122 parking, public, or other facilities, or other improvements that benefit the state or a community.
123 (12) "Education housing development" means the provision of high density housing
124 within a project area that is adjacent to a public or private institution of higher education.
125 (13) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
126 established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
127 (14) "Plan hearing" means the public hearing on a draft project area plan required
128 under Subsection 17B-4-402 (1)(e).
129 (15) "Post-June 30, 1993 project area plan" means a redevelopment, economic
130 development, or education housing development project area plan adopted on or after July 1,
131 1993, whether or not amended subsequent to its adoption.
132 (16) "Pre-July 1, 1993 project area plan" means a redevelopment project area plan
133 adopted before July 1, 1993, whether or not amended subsequent to its adoption.
134 (17) "Private," with respect to real property, means:
135 (a) not owned by the United States or any agency of the federal government, a public
136 entity, or any other governmental entity; and
137 (b) not dedicated to public use.
138 (18) "Project area" means the geographic area described in a project area plan or draft
139 project area plan where the redevelopment, economic development, or education housing
140 development set forth in the project area plan or draft project area plan takes place or is
141 proposed to take place.
142 (19) "Project area budget" means a multiyear projection of annual or cumulative
143 revenues and expenses and other fiscal matters pertaining to a redevelopment, economic
144 development, or education housing development project area that includes:
145 (a) the base taxable value of property in the project area;
146 (b) the projected tax increment expected to be generated within the project area;
147 (c) the amount of tax increment expected to be shared with other taxing entities;
148 (d) the amount of tax increment expected to be used to implement the project area plan,
149 including the estimated amount of tax increment to be used for land acquisition, public

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- 6 - 150 improvements, infrastructure improvements, and loans, grants, or other incentives to private
151 and public entities;
152 (e) the tax increment expected to be used to cover the cost of administering the project
153 area plan;
154 (f) if the area from which tax increment is to be collected is less than the entire project
155 area, a legal description of the portion of the project area from which tax increment will be
156 collected; and
157 (g) for property that the agency owns and expects to sell, the expected total cost of the
158 property to the agency and the expected selling price.
159 (20) "Project area plan" means a written plan under Part 4, Project Area Plan, that, after
160 its effective date, guides and controls the redevelopment, economic development, or education
161 housing development activities within the project area.
162 (21) "Property tax" includes privilege tax and each levy on an ad valorem basis on
163 tangible or intangible personal or real property.
164 (22) "Public entity" means:
165 (a) the state, including any of its departments or agencies; or
166 (b) a political subdivision of the state, including a county, city, town, school district,
167 special district, local district, or interlocal cooperation entity.
168 (23) "Public input hearing" means the public hearing required under Subsection
169 17B-4-402 (1)(h)(ii) regarding a proposed redevelopment project.
170 (24) "Record property owner" or "record owner of property" means the owner of real
171 property as shown on the records of the recorder of the county in which the property is located
172 and includes a purchaser under a real estate contract if the contract is recorded in the office of
173 the recorder of the county in which the property is located or the purchaser gives written notice
174 of the real estate contract to the agency.
175 (25) "Redevelopment" means the development activities under a project area plan
176 within a redevelopment project area, including:
177 (a) planning, design, development, demolition, clearance, construction, rehabilitation,
178 or any combination of these, of part or all of a project area;
179 (b) the provision of residential, commercial, industrial, public, or other structures or
180 spaces, including recreational and other facilities incidental or appurtenant to them;

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- 7 - 181 (c) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
182 any combination of these, existing structures in a project area;
183 (d) providing open space, including streets and other public grounds and space around
184 buildings;
185 (e) providing public or private buildings, infrastructure, structures, and improvements;
186 and
187 (f) providing improvements of public or private recreation areas and other public
188 grounds.
189 (26) "Superfund site":
190 (a) means an area included in the National Priorities List under the Comprehensive
191 Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
192 (b) includes an area formerly included in the National Priorities List, as described in
193 Subsection (26)(a), but removed from the list following remediation that leaves on site the
194 waste that caused the area to be included in the National Priorities List.
195 (27) "Survey area" means an area designated by a survey area resolution for study to
196 determine whether one or more redevelopment projects within the area are feasible.
197 (28) "Survey area resolution" means a resolution adopted by the agency board under
198 Subsection 17B-4-401 (1)(a) designating a survey area.
199 (29) (a) "Tax increment" means, except as provided in Subsection (29)(b), the
200 difference between:
201 (i) the amount of property tax revenues generated each tax year by all taxing entities
202 from the area within a project area designated in the project area plan as the area from which
203 tax increment is to be collected, using the current assessed value of the property; and
204 (ii) the amount of property tax revenues that would be generated from that same area
205 using the base taxable value of the property.
206 (b) "Tax increment" does not include taxes levied and collected under Section
207 59-2-906.1 on or after January 1, 1994 upon the taxable property in the project area unless:
208 (i) the project area plan was adopted before May 4, 1993, whether or not the project
209 area plan was subsequently amended; and
210 (ii) the taxes were pledged to support bond indebtedness or other contractual
211 obligations of the agency.

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- 8 - 212 (30) "Taxing entity" means a public entity that levies a tax on property within a project
213 area or proposed project area.
214 (31) "Taxing entity committee" means a committee representing the interests of taxing
215 entities, created as provided in Section 17B-4-1002 .
216 Section 2. Section 17B-4-105 is amended to read:
217 17B-4-105. Limitations on applicability of chapter -- Amendment of previously
218 adopted project area plan.
219 (1) Nothing in this chapter may be construed to:
220 (a) impose a requirement or obligation on an agency, with respect to a project area plan
221 adopted or an agency action taken [before June 1, 2001], that was not imposed by the law in
222 effect at the time the project area plan was adopted or the action taken;
223 (b) prohibit an agency from taking an action [on or after June 1, 2001] that:
224 (i) was allowed by the law in effect immediately before [June 1, 2001] an applicable
225 amendment to this chapter;
226 (ii) is permitted or required under the project area plan adopted before [June 1, 2001]
227 the amendment; and
228 (iii) is not explicitly prohibited under this chapter;
229 (c) revive any right to challenge any action of the agency that had already expired; or
230 (d) require a project area plan [adopted before June 1, 2001] to contain a provision that
231 was not required by the law in effect at the time the project area plan was adopted.
232 (2) (a) A project area plan adopted before [June 1, 2001] an amendment to this chapter
233 becomes effective may be amended as provided in this chapter.
234 (b) Unless explicitly prohibited by this chapter, an amendment under Subsection (2)(a)
235 may include a provision that is allowed under this chapter but that was not required or allowed
236 by the law in effect before [June 1, 2001] the applicable amendment.
237 Section 3. Section 17B-4-202 is amended to read:
238 17B-4-202. Agency powers.
239 (1) An agency may:
240 (a) sue and be sued;
241 (b) enter into contracts generally;
242 (c) buy, obtain an option upon, or otherwise acquire any interest in real or personal

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- 9 - 243 property[, including acquiring property by eminent domain as provided in this chapter];
244 (d) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
245 personal property;
246 (e) enter into a lease agreement on real or personal property, either as lessee or lessor;
247 (f) provide for redevelopment, economic development, and education housing
248 development as provided in this chapter;
249 (g) receive tax increment as provided in this chapter;
250 (h) encourage the continued use of existing buildings in the project area;
251 (i) if disposing of or leasing land, retain controls or establish restrictions and covenants
252 running with the land consistent with the project area plan;
253 (j) accept financial or other assistance from any public or private source for the
254 agency's activities, powers, and duties, and expend any funds so received for any of the
255 purposes of this chapter;
256 (k) borrow money or accept financial or other assistance from the federal government,
257 a public entity, or any other source for any of the purposes of this chapter and comply with any
258 conditions of such loan or assistance; and
259 (l) issue bonds to finance the undertaking of any redevelopment, economic
260 development, or education housing development or for any of the agency's other purposes,
261 including:
262 (i) reimbursing an advance made by the agency or by a public entity or the federal
263 government to the agency;
264 (ii) refunding bonds to pay or retire bonds previously issued by the agency; and
265 (iii) refunding bonds to pay or retire bonds previously issued by the community that
266 created the agency for expenses associated with a redevelopment, economic development, or
267 education housing development project; and
268 (m) transact other business and exercise all other powers provided for in this chapter.
269 (2) The establishment of controls or restrictions and covenants under Subsection (1)(i)
270 is a public purpose.
271 Section 4. Section 17B-4-206 is amended to read:
272 17B-4-206. Acquisition of property of an agency board member or officer -- Use
273 of eminent domain.

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- 10 - 274 (1) An agency may not acquire property or an interest in property from an agency board
275 member or officer unless:
276 (a) the board member or officer consents; and
277 (b) the agency uses eminent domain.
278 (2) [(a) In addition to the power of eminent domain that an agency may exercise under
279 Part 11, Eminent Domain in Redevelopment Project Area, an] An agency may use eminent
280 domain to acquire any interest in property that is owned by an agency board member or officer
281 and located within a redevelopment, economic development, or education housing
282 development project area.
283 [(b) The requirement under Subsection 17B-4-1101 (1)(a) of a finding of blight does
284 not apply to an agency's acquisition through eminent domain of property or an interest in
285 property owned by an agency board member or officer in a redevelopment project area.]
286 Section 5. Section 17B-4-402 is amended to read:
287 17B-4-402. Process for adopting project area plan -- Prerequisites -- Restrictions.
288 (1) In order to adopt a project area plan, after adopting a resolution under Subsection
289 17B-4-401 (1) the agency shall:
290 (a) prepare a draft of a project area plan and conduct any examination, investigation,
291 and negotiation regarding the project area plan that the agency considers appropriate;
292 (b) request input on the draft project area plan from the planning commission of the
293 community in which the proposed project area is located;
294 (c) make the draft project area plan available to the public at the agency's offices during
295 normal business hours;
296 (d) provide notice of the plan hearing as provided in Sections 17B-4-702 and
297 17B-4-704 ;
298 (e) hold a public hearing on the draft project area plan and, at that public hearing:
299 (i) allow public comment on:
300 (A) the draft project area plan; and
301 (B) whether the draft project area plan should be revised, approved, or rejected; and
302 (ii) receive all written and hear all oral objections to the draft project area plan;
303 (f) before holding the plan hearing, provide an opportunity for the State Board of
304 Education and each taxing entity that levies a tax on property within the proposed project area

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- 11 - 305 to consult with the agency regarding the draft project area plan;
306 (g) if applicable, hold the election required under Subsection 17B-4-406 (3);
307 (h) for a redevelopment project area plan:
308 (i) comply with the requirements of Part 6, Blight Determination in Redevelopment
309 Project Areas;
310 (ii) before providing notice of the plan hearing, hold at least one public hearing to:
311 (A) inform the public about each area being considered for a redevelopment project
312 area; and
313 (B) allow public input into agency deliberations on proposing each redevelopment
314 project area;
315 (iii) select one or more project areas comprising part or all of the survey area; and
316 (iv) before sending the first notice to assessment owners of property for a public input
317 hearing, blight hearing, or combined public input and blight hearing, prepare and adopt
318 guidelines setting forth and governing the reasonable opportunities of record property owners
319 and tenants to participate in the redevelopment;
320 (i) after holding the plan hearing, at the same meeting or at a subsequent meeting
321 consider:
322 (i) the oral and written objections to the draft project area plan and evidence and
323 testimony for or against adoption of the draft project area plan; and
324 (ii) whether to revise, approve, or reject the draft project area plan;
325 (j) subject to Subsection (5), approve the draft project area plan, with or without
326 revisions, as the project area plan by a resolution that complies with Section 17B-4-407 ; and
327 (k) submit the project area plan to the community legislative body for adoption.
328 (2) An agency may not propose a project area plan under Subsection (1) unless the
329 community in which the proposed project area is located:
330 (a) has a planning commission; and
331 (b) has adopted a general plan under:
332 (i) if the community is a city or town, Title 10, Chapter 9, Part 3, General Plan; or
333 (ii) if the community is a county, Title 17, Chapter 27, Part 3, General Plan.
334 (3) (a) Subject to Subsection (3)(b), an agency board may not approve a project area
335 plan more than one year after:

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Senate 2nd Reading Amendments 2-25-2005 rd/rhr 336

(i) for a redevelopment project area plan [involving the use of eminent domain],
337 adoption of a resolution making a finding of blight under Subsection
338 17B-4-601 [(4)(b)](1)(d)(ii); or
339 (ii) for an economic development or education housing development project area plan,
340 the date of the plan hearing.
341 (b) If a project area plan is submitted to an election under Subsection 17B-4-406 (3),
342 the time between the plan hearing and the date of the election does not count for purposes of
343 calculating the year period under Subsection (3)(a).
344 (4) (a) Except as provided in Subsection (4)(b), a draft project area plan may not be
345 modified to add real property to the proposed project area unless the board holds a plan hearing
346 to consider the addition and gives notice of the plan hearing as required under Sections
347 17B-4-702 and 17B-4-704 .
348 (b) The notice and hearing requirements under Subsection (4)(a) do not apply to a draft
349 project area plan being modified to add real property to the proposed project area if:
350 (i) the property is contiguous to the property already included in the proposed project
351 area under the draft project area plan;
352 (ii) the record owner of the property consents to adding the real property to the
353 proposed project area; and
354 (iii) for a redevelopment project area, the property is located within the survey area.
355 (5) From July 1, 2005, through June 30, 2006, an agency may not adopt a project area
356 plan for a redevelopment project requiring a finding of blight unless:
357 (a) before S. H. [ [ ] February 15 [ ] ] [ February 24 ] .H .S , 2005, the agency has
357a authorized a blight
357a study; and
358 (b) the blight study authorized before S. H. [ [ ] February 15 [ ] ] [ February 24 ] .H .S 358a , 2005, is
358a completed before July 1,
359 2005.
360 Section 6. Section 17B-4-403 is amended to read:
361 17B-4-403. Project area plan requirements.
362 (1) Each project area plan and draft project area plan shall:
363 (a) describe the boundaries of the project area;
364 (b) contain a general statement of the land uses, layout of principal streets, population
365 densities, and building intensities of the project area and how they will be affected by the
366 redevelopment, economic development, or education housing development;

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- 13 - 367 (c) state the standards that will guide the redevelopment, economic development, or
368 education housing development;
369 (d) show how the purposes of this chapter will be attained by the redevelopment,
370 economic development, or education housing development;
371 (e) be consistent with the general plan of the community in which the project area is
372 located and show that the redevelopment, economic development, or education housing
373 development will conform to the community's general plan;
374 (f) if the agency board made a finding of blight under Subsection 17B-4-601 [(4)(b):
375 (i)](1)(d)(ii), describe how the redevelopment will reduce or eliminate blight in the project
376 area; [and]
377 [(ii) if the agency is to have the power of eminent domain under the project area plan:]
378 [(A) provide record owners of property located within the redevelopment project area
379 and their tenants reasonable opportunities to participate in the redevelopment if the record
380 property owner or tenant enters into a participation agreement with the agency;]
381 [(B) state that the agency has adopted or will adopt guidelines setting forth and
382 governing the opportunities of record property owners and tenants to participate in the
383 redevelopment, as required by Subsection 17B-4-402 (1)(h)(iv); and]
384 [(C) include a plan for the relocation of any families and persons who will be
385 temporarily or permanently displaced from housing facilities in the redevelopment project
386 area;]
387 (g) if the project area plan is for economic development, describe how the economic
388 development will create additional jobs;
389 (h) if the project area plan is for education housing development, describe how the
390 education housing development will meet the needs of the community in which the project area
391 is located;
392 (i) describe any specific project or projects that are the object of the proposed
393 redevelopment, economic development, or education housing development;
394 (j) identify how private developers, if any, will be selected to undertake the
395 redevelopment, economic development, or education housing development and identify each
396 private developer currently involved in the redevelopment, economic development, or
397 education housing development process;

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- 14 - 398 (k) contain a time limit of no more than three years after adoption of the project area
399 plan for the agency to commence implementation of the project area plan, unless the project
400 area plan is adopted again as if it were an amended project area plan under Section 17B-4-411 ;
401 (l) if the project area plan authorizes the use of eminent domain, contain a time limit of
402 no more than five years after the effective date of the project area plan for the agency to
403 commence acquisition of property through the use of eminent domain;
404 (m) if the project area plan provides for tax increment to be paid to the agency:
405 (i) contain a time limit of no more than 25 years for tax increment to be paid to the
406 agency from the project area unless the taxing entity committee consents to a longer period;
407 and
408 (ii) contain a provision that the project area may not exceed 100 acres of private real
409 property unless:
410 (A) the agency obtains the consent of the taxing entity committee; or
411 (B) the project area is a superfund site;
412 (n) state the reasons for the selection of the project area;
413 (o) describe the physical, social, and economic conditions existing in the project area;
414 (p) provide a financial analysis describing the proposed method of financing the
415 proposed redevelopment, economic development, or education housing development;
416 (q) describe any tax incentives offered private entities for facilities located in the
417 project area;
418 (r) contain the report and state any recommendations of the community's planning
419 commission;
420 (s) include an analysis, as provided in Subsection (2), of whether adoption of the
421 project area plan is:
422 (i) for a redevelopment project area plan, necessary and appropriate to reduce or
423 eliminate blight; or
424 (ii) for an economic development or education housing development project area plan,
425 beneficial under a benefit analysis;
426 (t) if any of the existing buildings or uses in the project area are included in or eligible
427 for inclusion in the National Register of Historic Places or the State Register, state that the
428 agency shall comply with Subsection 9-8-404 (1) as though the agency were a state agency; and

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House Floor Amendments 3-2-2005 dd/rhr 429

(u) include other information that the agency determines to be necessary or advisable.
430 (2) Each analysis under Subsection (1)(s)(ii) shall consider:
431 (a) the benefit of any financial assistance or other public subsidy proposed to be
432 provided by the agency, including:
433 (i) an evaluation of the reasonableness of the costs of economic development or
434 education housing development;
435 (ii) efforts the agency has made or will make to maximize private investment;
436 (iii) the rationale for use of tax increment, including an analysis of whether the
437 proposed development might reasonably be expected to occur in the foreseeable future solely
438 through private investment; and
439 (iv) an estimate of the total amount of tax increment that will be expended in
440 undertaking economic development or education housing development and the length of time
441 for which it will be expended; and
442 (b) the anticipated public benefit to be derived from the economic development or
443 education housing development, including:
444 (i) the beneficial influences upon the tax base of the community;
445 (ii) the associated business and economic activity likely to be stimulated; and
446 (iii) in the case of economic development, the number of jobs or employment
447 anticipated to be generated or preserved.
448 Section 7. Section 17B-4-407 is amended to read:
449 17B-4-407. Board resolution approving project area plan -- Requirements --
450 Additional requirements for redevelopment project area plan.
451 (1) Each board resolution approving a draft redevelopment, economic development, or
452 education housing development project area plan as the project area plan under Subsection
453 17B-4-402 (1)(j) shall contain:
454 (a) a legal description of the boundaries of the project area that is the subject of the
455 project area plan;
456 (b) the agency's purposes and intent with respect to the project area;
457 (c) the project area plan incorporated by reference; H. and .H
458 (d) the board findings and determinations that:
459 (i) there is a need to effectuate a public purpose;

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- 16 - 460 (ii) there is a public benefit under the analysis described in Subsections
461 17B-4-403 (1)(t) and (2);
462 (iii) it is economically sound and feasible to adopt and carry out the project area plan;
463 (iv) the project area plan conforms to the community's general plan; and
464 (v) carrying out the project area plan will promote the public peace, health, safety, and
465 welfare of the community in which the project area is located.
466 (2) (a) As used in this Subsection (2), "comparable dwellings" means residential
467 housing facilities that are:
468 (i) within the project area or in other areas not generally less desirable in regard to
469 public utilities and public and commercial facilities;
470 (ii) at rents or prices within the financial means of the families and persons displaced
471 from the project area; and
472 (iii) decent, safe, and sanitary and equal in number and available to displaced families
473 and persons and reasonably accessible to their places of employment.
474 (b) In addition to the requirements under Subsection (1), each board resolution
475 approving a redevelopment project area plan shall:
476 (i) state that the board previously made a finding of blight within the project area and
477 the date of the board's finding of blight; and
478 (ii) contain the board's findings and determinations that[: (A) if the use of eminent
479 domain is provided for in the redevelopment project area plan: (I) the use of eminent domain is
480 or may be necessary to the execution of the redevelopment project area plan; and (II) adequate
481 provisions have been made for just compensation for property acquired by eminent domain;
482 and (B)], if the project area plan may result in the temporary or permanent displacement of any
483 residential occupants in the project area:
484 [(I)] (A) the agency has a feasible method or plan for the relocation of families and
485 persons displaced from the project area;
486 [(II)] (B) comparable dwellings exist or will be provided to the families and persons
487 displaced by the project area plan; and
488 [(III)] (C) the board is satisfied that permanent housing facilities will be available
489 within three years from the time occupants of the project area are displaced and, pending the
490 development of these housing facilities, there will be available to the displaced occupants

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- 17 - 491 adequate temporary housing facilities at rents comparable to those in the community at the time
492 of their displacement.
493 Section 8. Section 17B-4-411 is amended to read:
494 17B-4-411. Amending the project area plan.
495 (1) An adopted project area plan may be amended as provided in this section.
496 [(2) If an agency proposes to amend an adopted project area plan to enlarge a project
497 area:]
498 [(a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
499 a project area plan apply equally to the proposed amendment as if it were a project area plan;]
500 [(b) for a pre-July 1, 1993 project area plan, the base year taxable value for the new
501 area added to the project area shall be determined under Subsection 17B-4-102 (4)(a) using the
502 effective date of the amended project area plan;]
503 [(c) for a post-June 30, 1993 project area plan, the base year taxable value for the new
504 area added to the project area shall be determined under Subsection 17B-4-102 (4)(b) using the
505 date of the taxing entity committee's consent referred to in Subsection (2)(f);]
506 [(d) if the amended plan is to authorize the use of eminent domain within a new area to
507 be added to the project area:]
508 [(i) before adopting the amended project area plan the agency must make a finding
509 regarding the existence of blight in the new area proposed to be added, following the
510 procedures set forth in Part 6 of this chapter; and]
511 [(ii) for the new area added, the time limit of Subsection 17B-4-403 (1)(l) may be
512 measured from the effective date of the amendment to the project area plan;]
513 [(e) if the agency made a finding of the existence of blight regarding the project area as
514 originally adopted:]
515 [(i) it is not necessary to repeat the requirements of Part 6 of this chapter for the
516 original area; and]
517 [(ii) regarding the area described in the project area plan as originally adopted, the time
518 limit established by Subsection 17B-4-403 (1)(l) for the agency to commence acquisition of
519 property through the use of eminent domain shall not be affected or changed by the
520 amendment; and]
521 [(f) for a post-June 30, 1993 project area plan, the agency shall obtain the consent of

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- 18 -

House Floor Amendments 3-2-2005 dd/rhr 522

the taxing entity committee before the agency may collect tax increment from the area added to
523 the project area.]
524 (2) H. [ A ] Except as provided in Subsection (4)(a), a .H project area plan may not be
524a amended after the effective date of this Subsection
525 (2) to enlarge or add to a project area.
526 (3) [If a proposed amendment does not propose to enlarge a project area, an] An
527 agency board may adopt a resolution approving an amendment to an adopted project area plan
528 after:
529 (a) the agency gives notice, as provided in Section 17B-4-702 , of the proposed
530 amendment and of the public hearing required by Subsection (3)(b);
531 (b) the agency board holds a public hearing on the proposed amendment that meets the
532 requirements of a plan hearing;
533 (c) the agency obtains the taxing entity committee's consent to the amendment, if the
534 amendment proposes[: (i) to enlarge the area within the project area from which tax increment
535 is collected; or (ii)] to permit the agency to receive a greater percentage of tax increment [or to
536 receive tax increment for a longer period of time] than allowed under the adopted project area
537 plan; and
538 [(iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
539 expand the area from which tax increment is collected to exceed 100 acres of private real
540 property; and]
541 (d) the agency obtains the consent of the legislative body or governing board of each
542 taxing entity affected, if the amendment proposes to permit the agency to receive, from less
543 than all taxing entities, a greater percentage of tax increment [or to receive tax increment for a
544 longer period of time, or both,] than allowed under the adopted project area plan.
545 (4) (a) [Notwithstanding Subsections (2)(a) and (3) an] An adopted project area plan
546 may be amended without complying with the notice and public hearing requirements of
547 Subsections [(2)(a) and] (3)(a) and (b) and without obtaining taxing entity committee approval
548 under Subsection (3)(c)[(i)] if the amendment:
549 (i) makes a minor adjustment in the legal description of a project area boundary
550 requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
551 or
552 (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area

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- 19 - 553 because the agency determines that:
554 (A) the parcel is no longer blighted; or
555 (B) inclusion of the parcel is no longer necessary or desirable to the project area; and
556 (b) An amendment removing a parcel of real property from a project area under
557 Subsection (4)(a)(ii) may not be made without the consent of the record property owner of the
558 parcel being removed.
559 (5) (a) An amendment approved by board resolution under this section may not take
560 effect until adopted by ordinance of the legislative body of the community in which the project
561 area that is the subject of the project area plan being amended is located.
562 (b) Upon a community legislative body passing an ordinance adopting an amendment
563 to a project area plan, the agency whose project area plan was amended shall comply with the
564 requirements of Section 17B-4-410 to the same extent as if the amendment were a project area
565 plan.
566 Section 9. Section 17B-4-507 is amended to read:
567 17B-4-507. Amending the project area budget.
568 (1) [An] Subject to Subsection (5), an agency may by resolution amend a project area
569 budget as provided in this section.
570 (2) To amend an adopted project area budget, the agency shall:
571 (a) advertise and hold one public hearing on the proposed amendment as provided in
572 Subsection (3);
573 (b) obtain the approval of the taxing entity committee if the agency was required under
574 Section 17B-4-505 to obtain the consent of the taxing entity committee for the project area
575 budget as originally adopted; and
576 (c) adopt a resolution amending the project area budget.
577 (3) The public hearing required under Subsection (2)(a) shall be conducted according
578 to the procedures and requirements of Sections 17B-4-501 and 17B-4-502 , except that if the
579 amended project area budget proposes that the agency be paid a greater proportion of tax
580 increment from a project area than was to be paid under the previous project area budget, the
581 advertisement shall state the percentage paid under the previous project area budget and the
582 percentage proposed under the amended project area budget.
583 (4) If a proposed amendment is not adopted, the agency shall continue to operate under

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- 20 - 584 the previously adopted project area budget without the proposed amendment.
585 (5) A project area budget may not be amended after the effective date of this
586 Subsection (5) if the amendment provides for the agency to receive tax increment for a longer
587 period of time than allowed under the project area budget without the amendment.
588 Section 10. Section 17B-4-601 is amended to read:
589 17B-4-601. Additional procedure for adopting a redevelopment project area
590 plan.
591 (1) In addition to other applicable requirements for adopting a project area plan, to
592 adopt a redevelopment project area plan the agency shall:
593 [(1)] (a) cause a blight study to be conducted within the survey area as provided in
594 Section 17B-4-602 ;
595 [(2)] (b) provide notice of a blight hearing as required under Part 7, Notice
596 Requirements;
597 [(3)] (c) hold a blight hearing as provided in Section 17B-4-603 ; and
598 [(4)] (d) after the blight hearing has been held, hold a board meeting, either at the same
599 time as the blight hearing or at a subsequent board meeting, at which the board shall:
600 [(a)] (i) consider:
601 [(i)] (A) the issue of blight and the evidence and information relating to the existence
602 or nonexistence of blight; and
603 [(ii)] (B) whether adoption of one or more redevelopment project area plans should be
604 pursued; and
605 [(b)] (ii) by resolution make a finding regarding the existence of blight in the proposed
606 redevelopment project area.
607 (2) The agency's finding of blight under Subsection (1) has no effect until the taxing
608 entity committee adopts a resolution approving the finding.
609 Section 11. Section 17B-4-602 is amended to read:
610 17B-4-602. Blight study -- Requirements -- Deadline.
611 (1) Each blight study required under Subsection 17B-4-601 (1)(a) shall:
612 (a) provide data so the board and taxing entity committee may determine:
613 (i) whether the conditions described in Subsections 17B-4-604 (1)(a)(i) and (ii) exist in
614 part or all of the survey area;

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- 21 - 615 (ii) whether the factors listed in Subsection 17B-4-604 (1)(a)(iii) are present in the
616 survey area; and
617 (iii) whether the survey area contains a superfund site;
618 (b) include a written report setting forth:
619 (i) the conclusions reached; and
620 (ii) any other information requested by the agency to determine whether a
621 redevelopment project area is feasible; and
622 (c) be completed within one year after the adoption of the survey area resolution.
623 (2) (a) If a blight study is not completed within one year after the adoption of the
624 resolution under Subsection 17B-4-401 (1)(a) designating a survey area, the agency may not
625 approve a redevelopment project area plan based on that blight study unless it first adopts a
626 new resolution under Subsection 17B-4-401 (1)(a).
627 (b) A new resolution under Subsection (2)(a) shall in all respects be considered to be a
628 resolution under Subsection 17B-4-401 (1)(a) adopted for the first time, except that any actions
629 taken toward completing a blight study under the resolution that the new resolution replaces
630 shall be considered to have been taken under the new resolution.
631 Section 12. Section 17B-4-603 is amended to read:
632 17B-4-603. Blight hearing -- Owners may review evidence of blight.
633 (1) In each hearing required under Subsection 17B-4-601 [(3)](1)(c), the agency shall:
634 (a) permit all evidence of the existence or nonexistence of blight within the proposed
635 redevelopment project area to be presented; and
636 (b) permit each record owner of property located within the proposed redevelopment
637 project area or the record property owner's representative the opportunity to:
638 (i) examine and cross-examine witnesses providing evidence of the existence or
639 nonexistence of blight; and
640 (ii) present evidence and testimony, including expert testimony, concerning the
641 existence or nonexistence of blight.
642 (2) The agency shall allow record owners of property located within a proposed
643 redevelopment project area the opportunity, for at least 30 days before the hearing, to review
644 the evidence of blight compiled by the agency or by the person or firm conducting the blight
645 study for the agency, including any expert report.

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- 22 - 646 Section 13. Section 17B-4-604 is amended to read:
647 17B-4-604. Conditions on board determination of blight -- Conditions of blight
648 caused by the developer.
649 (1) An agency board may not make a finding of blight in a resolution under
650 [Subsection ] Section 17B-4-601 [(4)(b)] unless the board finds that the redevelopment project
651 area:
652 (a) (i) contains buildings or improvements used or intended to be used for residential,
653 commercial, industrial, or other urban purposes, or any combination of those uses;
654 (ii) contains buildings or improvements on at least 50% of the number of parcels of
655 private real property whose acreage is at least 50% of the acreage of the private real property
656 within the proposed redevelopment project area; and
657 (iii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of
658 disease, infant mortality, juvenile delinquency, or crime because of any three or more of the
659 following factors:
660 (A) defective character of physical construction;
661 (B) high density of population or overcrowding;
662 (C) inadequate ventilation, light, or spacing between buildings;
663 (D) mixed character and shifting of uses, resulting in obsolescence, deterioration, or
664 dilapidation;
665 (E) economic deterioration or continued disuse;
666 (F) lots of irregular shape or inadequate size for proper usefulness and development, or
667 laying out of lots in disregard of the contours and other physical characteristics of the ground
668 and surrounding conditions;
669 (G) inadequate sanitation or public facilities which may include streets, open spaces,
670 and utilities;
671 (H) areas that are subject to being submerged by water; and
672 (I) existence of any hazardous or solid waste, defined as any substance defined,
673 regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic waste,
674 pollutant, contaminant, or toxic substance, or identified as hazardous to human health or the
675 environment under state or federal law or regulation; or
676 (b) is a superfund site.

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- 23 - 677 (2) (a) For purposes of Subsection (1), if a developer involved in the redevelopment
678 project causes a condition listed in Subsection (1)(a)(iii) within the project area, the condition
679 caused by the developer may not be used in the determination of blight.
680 (b) Subsection (2)(a) does not apply to a condition that was caused by an owner or
681 tenant who becomes a developer under Section 17B-4-901 .
682 Section 14. Section 17B-4-605 is amended to read:
683 17B-4-605. Challenging a finding of blight -- Time limit -- De novo review.
684 (1) If the board makes a finding of blight under [Subsection ] Section
685 17B-4-601 [(4)(b)] and that finding is approved by resolution adopted by the taxing entity
686 committee, a record owner of property located within the proposed redevelopment project area
687 may challenge the finding by filing an action with the district court for the county in which the
688 property is located.
689 (2) Each challenge under Subsection (1) shall be filed within 30 days after the [board's
690 adoption of the resolution containing the] taxing entity committee approves the board's finding
691 of blight.
692 (3) In each action under this section:
693 (a) the district court shall review de novo the finding of blight; and
694 (b) the agency maintains the burden of proof regarding the existence of blight.
695 Section 15. Section 17B-4-1002 is amended to read:
696 17B-4-1002. Taxing entity committee.
697 (1) Each agency that adopts or proposes to adopt a post-June 30, 1993 project area plan
698 shall, and any other agency may, cause a taxing entity committee to be created.
699 (2) (a) (i) Each taxing entity committee shall be composed of:
700 (A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
701 (B) (I) in [counties] a county of the second, third, fourth, fifth, or sixth class, two
702 representatives appointed by resolution of the legislative body of the county in which the
703 agency is located; or
704 (II) in [counties] a county of the first class, [two representatives] one representative
705 appointed by the county executive and one representative appointed by the legislative body of
706 the county in which the agency is located;
707 (C) if the agency was created by a city or town, two representatives appointed by

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- 24 - 708 resolution of the legislative body of that city or town;
709 (D) one representative appointed by the State Board of Education; and
710 (E) one representative selected by majority vote of the legislative bodies or governing
711 boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
712 represent the interests of those taxing entities on the taxing entity committee.
713 (ii) (A) If the agency boundaries include only one school district, that school district
714 shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
715 (B) If the agency boundaries include more than one school district, those school
716 districts shall jointly appoint the two school district representatives under Subsection
717 (2)(a)(i)(A).
718 (b) (i) Each taxing entity committee representative under Subsection (2)(a) shall be
719 appointed within 30 days after the agency provides notice of the creation of the taxing entity
720 committee.
721 (ii) If a representative is not appointed within the time required under Subsection
722 (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
723 place of the missing representative until that representative is appointed.
724 (c) (i) A taxing entity committee representative may be appointed for a set term or
725 period of time, as determined by the appointing authority under Subsection (2)(a)(i).
726 (ii) Each taxing entity committee representative shall serve until a successor is
727 appointed and qualified.
728 (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
729 an initial appointment or an appointment to replace an already serving representative, the
730 appointing authority shall:
731 (A) notify the agency in writing of the name and address of the newly appointed
732 representative; and
733 (B) provide the agency a copy of the resolution making the appointment or, if the
734 appointment is not made by resolution, other evidence of the appointment.
735 (ii) Each appointing authority of a taxing entity committee representative under
736 Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
737 representative appointed by that appointing authority.
738 (3) A taxing entity committee represents all taxing entities regarding a project area and

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- 25 - 739 may:
740 (a) cast votes that will be binding on all taxing entities;
741 (b) negotiate with the agency concerning a draft project area plan;
742 (c) approve or disapprove a project area budget as provided in Section 17B-4-505 ;
743 (d) approve or disapprove amendments to a project area budget as provided in Section
744 17B-4-507 ;
745 (e) approve exceptions to the limits on the value and size of a project area imposed
746 under this chapter;
747 (f) approve exceptions to the percentage of tax increment and the period of time that
748 tax increment is paid to the agency as provided in this part;
749 (g) approve the use of tax increment for access and utilities outside of a project area
750 that the agency and community legislative body determine to be of benefit to the project area,
751 as provided in Subsection 17B-4-1007 (1)(a)(ii)(D);
752 (h) waive the restrictions imposed by Subsection 17B-4-503 (2)(a); and
753 (i) give other taxing entity committee approval or consent required or allowed under
754 this chapter.
755 (4) A quorum of a taxing entity committee consists of:
756 (a) except as provided in Subsection (4)(b):
757 (i) if the project area is located within a city or town, five members; or
758 (ii) if the project area is not located within a city or town, four members; or
759 (b) for an education housing development project area as to which the school district
760 has elected under Subsection 17B-4-1004 (5) not to allow the agency to be paid tax increment
761 from school district tax revenues:
762 (i) if the project area is located within a city or town, three members; or
763 (ii) if the project area is not located within a city or town, two members.
764 (5) Taxing entity committee approval, consent, or other action requires the affirmative
765 vote of a majority of a quorum present at a taxing entity committee meeting.
766 (6) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
767 Public Meetings.
768 (7) Each time a school district representative or a representative of the State Board of
769 Education votes as a member of a taxing entity committee to allow an agency to be paid tax

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- 26 - 770 increment or to increase the amount or length of time that an agency may be paid tax
771 increment, that representative shall, within 45 days after the vote, provide to the
772 representative's respective school board an explanation in writing of the representative's vote
773 and the reasons for the vote.
774 (8) (a) The assessor of each county in which the agency is located shall provide a
775 written report to the taxing entity committee stating, with respect to property within each
776 project area:
777 (i) the base taxable value, as adjusted by any adjustments under Section 17B-4-1006;
778 and
779 (ii) the assessed value.
780 (b) With respect to the information required under Subsection (8)(a), the assessor shall
781 provide:
782 (i) actual amounts for each year from the adoption of the project area plan to the time
783 of the report; and
784 (ii) estimated amounts for each year beginning the year after the time of the report and
785 ending the time that the agency expects no longer to be paid tax increment from property
786 within the project area.
787 (c) The assessor of the county in which the agency is located shall provide a report
788 under this Subsection (8):
789 (i) at least annually; and
790 (ii) upon request of the taxing entity committee, before a taxing entity committee
791 meeting at which the committee will consider whether to allow the agency to be paid tax
792 increment or to increase the amount [or length of time] of tax increment that the agency may be
793 paid [tax increment].
794 Section 16. Section 17B-4-1003 is amended to read:
795 17B-4-1003. Tax increment under a pre-July 1, 1993 project area plan.
796 (1) This section applies to tax increment under a pre-July 1, 1993 project area plan
797 only.
798 (2) (a) Beginning with the first tax year after April 1, 1983 for which an agency accepts
799 tax increment, an agency may be paid:
800 (i) (A) for the first through the fifth tax years, 100% of tax increment;

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- 27 - 801 (B) for the sixth through the tenth tax years, 80% of tax increment;
802 (C) for the eleventh through the fifteenth tax years, 75% of tax increment;
803 (D) for the sixteenth through the twentieth tax years, 70% of tax increment; and
804 (E) for the twenty-first through the twenty-fifth tax years, 60% of tax increment; or
805 (ii) for an agency that has caused a taxing entity committee to be created under
806 Subsection 17B-4-1002 (1), any percentage of tax increment up to 100% and for any length of
807 time that the taxing entity committee approves.
808 (b) Notwithstanding any other provision of this section:
809 (i) an agency may be paid 100% of tax increment from a project area for 32 years after
810 April 1, 1983 to pay principal and interest on agency indebtedness incurred before April 1,
811 1983, even though the size of the project area from which tax increment is paid to the agency
812 exceeds 100 acres of privately owned property under a project area plan adopted on or before
813 April 1, 1983; and
814 (ii) for up to 32 years after April 1, 1983, an agency debt incurred before April 1, 1983
815 may be refinanced and paid from 100% of tax increment if the principal amount of the debt is
816 not increased in the refinancing.
817 (3) (a) For purposes of this Subsection (3), "additional tax increment" means the
818 difference between 100% of tax increment for a tax year and the amount of tax increment an
819 agency is paid for that tax year under the percentages and time periods specified in Subsection
820 (2)(a).
821 (b) Notwithstanding the tax increment percentages and time periods in Subsection
822 (2)(a) and Subsection 17B-4-403 (1)(m)(i), an agency may be paid additional tax increment for
823 a period ending 32 years after the first tax year after April 1, 1983 for which the agency
824 receives tax increment from the project area if:
825 [(i) (A) the additional tax increment is used solely to pay all or part of the value of the
826 land for and the cost of the installation and construction of a publicly or privately owned
827 convention center or sports complex or any building, facility, structure, or other improvement
828 related to the convention center or sports complex, including parking and infrastructure
829 improvements;]
830 [(B) construction of the convention center or sports complex or related building,
831 facility, structure, or other improvement is commenced on or before June 30, 2002;]

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- 28 - 832 [(C) the additional tax increment is pledged to pay all or part of the value of the land
833 for and the cost of the installation and construction of the convention center or sports complex
834 or related building, facility, structure, or other improvement; and]
835 [(D) the agency board and the community legislative body have determined by
836 resolution that the convention center or sports complex is:]
837 [(I) within and a benefit to a project area;]
838 [(II) not within but still a benefit to a project area; or]
839 [(III) within a project area in which substantially all of the land is publicly owned and a
840 benefit to the community;]
841 [(ii) (A)] (i) the additional tax increment is used to pay some or all of the cost of the
842 land for and installation and construction of a recreational facility, as defined in Section
843 59-12-702 , or a cultural facility, including parking and infrastructure improvements related to
844 the recreational or cultural facility, whether or not the facility is located within a project area;
845 [(B)] (ii) construction of the recreational or cultural facility is commenced on or before
846 [June 30, 2006] December 31, 2005; and
847 [(C)] (iii) the additional tax increment is pledged on or before [June 30, 2006] July 1,
848 2005, to pay all or part of the cost of the land for and the installation and construction of the
849 recreational or cultural facility, including parking and infrastructure improvements related to
850 the recreational or cultural facility[;].
851 [(iii) the additional tax increment is used to pay all or part of the cost of acquiring,
852 constructing, extending, maintaining, or repairing lines, facilities, and equipment for providing
853 cable television service and public telecommunications service, as defined in Section
854 10-18-102 , whether or not the lines, facilities, and equipment are located within a project area
855 and subject to Subsection (3)(d);]
856 [(iv) (A) the additional tax increment is used solely to pay all or part of the cost of the
857 installation, construction, or reconstruction of the 11400 South or 12300 South interchange on
858 I-15 in Salt Lake County, whether or not the interchange is located within a project area;]
859 [(B) construction on the interchange is commenced on or before June 30, 2006; and]
860 [(C) the additional tax increment is pledged on or before June 30, 2006 to pay all or
861 part of the cost of the installation, construction, or reconstruction of the interchange; or]
862 [(v) (A) the additional tax increment is used solely to pay part of the cost of relocating

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- 29 - 863 an agriculture related business, except a relocation resulting from the agency's exercise of
864 eminent domain, from a city of the first class to another location within a county of the third,
865 fourth, fifth, or sixth class, whether or not the agriculture related business is located within or is
866 being relocated to a project area;]
867 [(B) the process of relocating the agriculture related business is commenced on or
868 before December 31, 2002; and]
869 [(C) the additional tax increment is pledged on or before December 31, 2002 to pay
870 part of the cost of relocating the agriculture related business.]
871 (c) Notwithstanding Subsection (3)(b), a school district may not, without its consent,
872 be paid less tax increment because of application of Subsection (3)(b) than it would have been
873 paid without that subsection.
874 [(d) (i) Notwithstanding Title 10, Chapter 18, Municipal Cable Television and Public
875 Telecommunications Services, an agency whose tax increment is used under Subsection
876 (3)(b)(iii) may not provide cable television service or public telecommunications service, as
877 defined in Section 10-18-102 .]
878 [(ii) Each agency that uses tax increment under Subsection (3)(b)(iii) shall provide the
879 services it provides using that tax increment in a nonpreferential and nondiscriminatory
880 manner.]
881 (4) Notwithstanding any other provision of this section, an agency may use tax
882 increment received under Subsection (2) for any of the uses indicated in Subsection (3).
883 Section 17. Section 17B-4-1004 is amended to read:
884 17B-4-1004. Tax increment under a post-June 30, 1993 project area plan.
885 (1) This section applies to tax increment under a post-June 30, 1993 project area plan
886 only.
887 (2) An agency board may provide in the project area budget for the agency to be paid:
888 (a) if 20% of the project area budget is allocated for housing under Section 17B-4-504 :
889 (i) 100% of annual tax increment for 15 years;
890 (ii) 75% of annual tax increment for 24 years; or
891 (iii) if approved by the taxing entity committee, any percentage of tax increment up to
892 100%, or any specified dollar amount, for any period of time; or
893 (b) if 20% of the project area budget is not allocated for housing under Section

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- 30 - 894 17B-4-504 :
895 (i) 100% of annual tax increment for 12 years;
896 (ii) 75% of annual tax increment for 20 years; or
897 (iii) if approved by the taxing entity committee, any percentage of tax increment up to
898 100%, or any specified dollar amount, for any period of time.
899 (3) (a) An agency may, without the approval of the taxing entity committee, elect to be
900 paid 100% of annual tax increment for each year beyond the periods specified in Subsection (2)
901 to a maximum of 25 years, including the years the agency is paid tax increment under
902 Subsection (2), if:
903 (i) for an agency in a city in which is located all or a portion of an interchange on I-15
904 or that would directly benefit from an interchange on I-15:
905 (A) the tax increment paid to the agency during the additional years is used to pay
906 some or all of the cost of the installation, construction, or reconstruction of:
907 (I) an interchange on I-15, whether or not the interchange is located within a project
908 area; or
909 (II) frontage and other roads connecting to the interchange, as determined by the
910 Department of Transportation created under Section 72-1-201 and the Transportation
911 Commission created under Section 72-1-301 , whether or not the frontage or other road is
912 located within a project area; and
913 (B) the installation, construction, or reconstruction of the interchange or frontage and
914 other roads has begun on or before June 30, 2002;
915 (ii) for an agency in a city of the first or second class:
916 (A) the tax increment paid to the agency during the additional years is used to pay
917 some or all of the cost of the land for and installation and construction of a recreational facility,
918 as defined in Section 59-12-702 , or a cultural facility, including parking and infrastructure
919 improvements related to the recreational or cultural facility, whether or not the facility is
920 located within a project area; and
921 (B) the installation or construction of the recreational or cultural facility has begun on
922 or before June 30, 2002.
923 (b) Notwithstanding any other provision of this section, an agency may use tax
924 increment received under Subsection (2) for any of the uses indicated in this Subsection (3).

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- 31 - 925 (c) Notwithstanding Subsection (3)(a), a school district may not, without its consent,
926 receive less tax increment because of application of Subsection (3)(a) than it would have
927 received without that subsection.
928 (4) [Unless the taxing entity committee consents, an] An agency may not be paid tax
929 increment from the project area for more than 25 years.
930 (5) (a) A school district that levies a tax on property located within a project area under
931 an education housing development project area plan may elect not to allow the agency to be
932 paid tax increment from the property tax revenues generated by the school district.
933 (b) An election under Subsection (5)(a) shall be made in writing to the agency before
934 the taxing entity committee's approval of the project area budget.
935 (c) If a school district makes an election under this Subsection (5):
936 (i) the agency may not be paid tax increment from property tax revenues generated by
937 the school district; and
938 (ii) the school district representatives and the State Board of Education representative
939 on the taxing entity committee may not vote on any matter concerning the education housing
940 development project area or project area budget.
941 Section 18. Section 17B-4-1005 is amended to read:
942 17B-4-1005. Limitations on tax increment.
943 (1) (a) If the development of retail sales of goods is the primary objective of the project
944 area, tax increment may not be paid to or used by an agency unless a finding of blight is made
945 under Part 6, Blight Determination in Redevelopment Project Areas.
946 (b) [(i)] Incidental or subordinate development of retail sales of goods does not
947 disqualify an agency from receiving tax increment.
948 [(ii) Incidental or subordinate development of retail sales of goods includes the
949 development of retail sales of goods resulting from the installation and construction of any
950 building, facility, structure, or other improvement of a publicly or privately owned convention
951 center or sports complex, including parking and infrastructure improvements related to the
952 convention center or sports complex.]
953 (c) From July 1, 2005 through June 30, 2006, an agency may not be paid or use tax
954 increment generated from the value of property within an economic development or education
955 housing development project area that is attributable to the development of retail sales of

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- 32 - 956 goods, unless the tax increment was previously pledged to pay for bonds or other contractual
957 obligations of the agency.
958 (2) (a) An agency may not be paid any portion of a taxing entity's taxes resulting from
959 an increase in the taxing entity's tax rate that occurs after the taxing entity committee approves
960 the project area budget unless, at the time the taxing entity committee approves the project area
961 budget, the taxing entity committee approves payment of those increased taxes to the agency.
962 (b) If the taxing entity committee does not approve of payment of the increased taxes to
963 the agency under Subsection (2)(a), the county shall distribute to the taxing entity the taxes
964 attributable to the tax rate increase in the same manner as other property taxes.
965 Section 19. Section 17B-4-1007 is amended to read:
966 17B-4-1007. Allowable uses of tax increment.
967 (1) (a) An agency may use tax increment:
968 (i) for any of the purposes for which the use of tax increment is authorized under this
969 chapter;
970 (ii) to pay for, including financing or refinancing, all or part of:
971 (A) the redevelopment, economic development, or education housing development in
972 the project area from which the tax increment funds were collected;
973 (B) housing expenditures, projects, or programs as provided in Section 17B-4-1009 or
974 17B-4-1010 ;
975 (C) with the consent of the community legislative body and subject to Subsection [(4)]
976 (3), the value of the land for and the cost of the installation and construction of any publicly
977 owned building, facility, structure, landscaping, or other improvement within the project area
978 from which the tax increment funds were collected; and
979 (D) with the consent of the community legislative body and the taxing entity
980 committee, the cost of the installation of publicly owned utilities and access outside the project
981 area from which the tax increment funds were collected if the agency board and the community
982 legislative body determine by resolution that the utilities and access are of benefit to the project
983 area; or
984 (iii) for administrative, overhead, legal, and other operating expenses of the agency.
985 (b) The determination of the agency board and the community legislative body under
986 Subsection (1)(a)(ii)(D) regarding benefit to the project area shall be final and conclusive.

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- 33 - 987 (2) (a) An agency may contract with the community that created the agency or another
988 public entity to use tax increment to reimburse the cost of items authorized by this chapter to be
989 paid by the agency that have been or will be paid by the community or other public entity.
990 (b) If land has been or will be acquired or the cost of an improvement has been or will
991 be paid by another public entity and the land or improvement has been or will be leased to the
992 community, an agency may contract with and make reimbursement from tax increment funds to
993 the community.
994 [(3) An agency created by a city of the first or second class may use tax increment from
995 one project area in another project area to pay all or part of the value of the land for and the
996 cost of installation and construction of a publicly or privately owned convention center or
997 sports complex or any building, facility, structure, or other improvement related to the
998 convention center or sports complex, including parking and infrastructure improvements, if:]
999 [(a) construction on the convention center or sports complex or related building,
1000 facility, structure, or other improvement begins on or before June 30, 2002; and]
1001 [(b) the tax increment is pledged to pay all or part of the value of the land for and the
1002 cost of the installation and construction of the convention center or sports complex or related
1003 building, facility, structure, or other improvement.]
1004 [(4)] (3) Notwithstanding any other provision of this chapter, an agency may not use
1005 tax increment to construct municipal buildings, courts or other judicial buildings, or fire
1006 stations.
1007 (4) Notwithstanding any other provision of this chapter, an agency may not use tax
1008 increment to pay any of the cost of the land, infrastructure, or construction of a stadium or
1009 arena constructed after March 1, 2005, unless the tax increment has been pledged for that
1010 purpose before February 15, 2005.
1011 Section 20. Section 17B-4-1101 is amended to read:
1012 17B-4-1101. Use of eminent domain prohibited.
1013 [(1) Subject to the provisions of this part,] Except as provided in Section 17B-4-206 ,
1014 an agency may not use eminent domain to acquire property [within a redevelopment project
1015 area if:].
1016 [(a) the agency board makes a finding of blight under Part 6, Blight Determination in
1017 Redevelopment Project Areas;]

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- 34 - 1018 [(b) the redevelopment project area plan provides for the use of eminent domain; and]
1019 [(c) the agency commences the acquisition of the property within five years after the
1020 effective date of the redevelopment project area plan.]
1021 [(2) (a) Subject to Subsection (2)(b), an agency may through eminent domain acquire
1022 property within the redevelopment project area already devoted to a public use.]
1023 [(b) Property of a public entity within a redevelopment project area may not be
1024 acquired without the public entity's consent.]
1025 [(3) Each agency that acquires real or personal property by eminent domain shall
1026 comply with Title 57, Chapter 12, Utah Relocation Assistance Act.]
1027 Section 21. Repealer.
1028 This bill repeals:
1029 Section 17B-4-1102, Prerequisites to exercise of eminent domain -- Civil action
1030 authorized -- Record of good faith negotiations to be retained.
1031 Section 17B-4-1103, Court award for court costs, attorney's fees, relocation
1032 expenses, and damage to fixtures or personal property.
1033 Section 22. Effective date.
1034 If approved by two-thirds of all the members elected to each house, this bill takes effect
1035 upon approval by the governor, or the day following the constitutional time limit of Utah
1036 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
1037 the date of veto override.
1038 Section 23. Revisor instructions.
1039 It is the intent of the Legislature that, in preparing the Utah Code database for
1040 publication, the Office of Legislative Research and General Counsel shall replace language
1041 referring to the effective date of this bill or sections or subsections within this bill with the
1042 actual effective date.