S.B. 49

1

MILITARY INSTALLATION DEVELOPMENT AUTHORITY
2 AMENDMENTS
3 2012 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Jerry W. Stevenson
6 House Sponsor: Brad L. Dee
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions of the Military Installation Development Authority Act.
11 Highlighted Provisions:
12 This bill:
13 . authorizes the Military Installation Development Authority to enter an agreement
14 with the federal government for law enforcement services;
15 . modifies a provision relating to the board's adoption of a project area plan;
16 . requires a lease or development agreement entered before the creation of a project
17 area to include a specified provision;
18 . provides that the authority may not be required to pay an amount or incur a loss or
19 penalty because of the board's failure to create a project area; and
20 . authorizes the authority to use authority funds to pay for a passenger ropeway
21 outside of the project area under certain circumstances.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 63H-1-201, as last amended by Laws of Utah 2010, Chapter 9
29 63H-1-401, as last amended by Laws of Utah 2011, Chapter 234
30 63H-1-502, as last amended by Laws of Utah 2010, Chapter 9
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 63H-1-201 is amended to read:
34 63H-1-201. Creation of military installation development authority -- Status and
35 powers of authority -- Limitation.
36 (1) There is created a military installation development authority.
37 (2) The authority is:
38 (a) an independent, nonprofit, separate body corporate and politic, with perpetual
39 succession and statewide jurisdiction, whose purpose is to facilitate the development of
40 military land in a project area;
41 (b) a political subdivision of the state; and
42 (c) a public corporation, as defined in Section 63E-1-102 .
43 (3) The authority may:
44 (a) as provided in this chapter, facilitate the development of land within one or more
45 project areas, including the ongoing operation of facilities within a project area;
46 (b) sue and be sued;
47 (c) enter into contracts generally;
48 (d) buy, obtain an option upon, or otherwise acquire any interest in real or personal
49 property:
50 (i) in a project area; or
51 (ii) outside a project area for publicly owned infrastructure and improvements, if the
52 board considers the purchase, option, or other interest acquisition to be necessary for fulfilling
53 the authority's development objectives;
54 (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
55 personal property;
56 (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
57 (i) in a project area; or
58 (ii) outside a project area, if the board considers the lease to be necessary for fulfilling

59 the authority's development objectives;
60 (g) provide for the development of land within a project area under one or more
61 contracts;
62 (h) exercise powers and perform functions under a contract, as authorized in the
63 contract;
64 (i) exercise exclusive police power within a project area to the same extent as though
65 the authority were a municipality, including the collection of regulatory fees;
66 (j) receive tax increment and other taxes and fees as provided in this chapter;
67 (k) accept financial or other assistance from any public or private source for the
68 authority's activities, powers, and duties, and expend any funds so received for any of the
69 purposes of this chapter;
70 (l) borrow money, contract with, or accept financial or other assistance from the federal
71 government, a public entity, or any other source for any of the purposes of this chapter and
72 comply with any conditions of the loan, contract, or assistance;
73 (m) issue bonds to finance the undertaking of any development objectives of the
74 authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
75 Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
76 (n) hire employees, including contract employees;
77 (o) transact other business and exercise all other powers provided for in this chapter;
78 (p) enter into a development agreement with a developer of land within a project area;
79 (q) enter into an agreement with a political subdivision of the state under which the
80 political subdivision provides one or more municipal services within a project area;
81 (r) enter into an agreement with a private contractor to provide one or more municipal
82 services within a project area; [and]
83 (s) exercise powers and perform functions that the authority is authorized by statute to
84 exercise or perform[.]; and
85 (t) enter into an agreement with the federal government or an agency of the federal
86 government under which the federal government or agency:
87 (i) provides law enforcement services only to military land within a project area; and
88 (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
89 agency of the state or a political subdivision of the state.

90 (4) The authority may not itself provide law enforcement service or fire protection
91 service within a project area but may enter into an agreement for one or both of those services,
92 as provided in Subsection (3)(q).
93 Section 2. Section 63H-1-401 is amended to read:
94 63H-1-401. Preparation of project area plan -- Required contents of project area
95 plan.
96 (1) (a) [Before entering into any lease or development agreement, the] The authority
97 board shall adopt a project area plan as provided in this part.
98 (b) In order to adopt a project area plan, the authority board shall:
99 (i) prepare a draft project area plan;
100 (ii) give notice as required under Subsection 63H-1-402 (2);
101 (iii) hold at least one public meeting, as required under Subsection 63H-1-402 (1); and
102 (iv) after holding at least one public meeting and subject to Subsection (1)(c), adopt the
103 draft project area plan as the project area plan.
104 (c) Before adopting a draft project area plan as the project area plan, the authority
105 board may make modifications to the draft project area plan that the board considers necessary
106 or appropriate.
107 (d) (i) A lease or development agreement that the authority enters before the creation of
108 a project area shall provide that the board is not required to create a project area.
109 (ii) An authority may not be required to pay any amount or incur any loss or penalty for
110 the board's failure to create a project area.
111 (2) Each project area plan and draft project area plan shall contain:
112 (a) a legal description of the boundary of the project area that is the subject of the
113 project area plan;
114 (b) the authority's purposes and intent with respect to the project area; and
115 (c) the board's findings and determination that:
116 (i) there is a need to effectuate a public purpose;
117 (ii) there is a public benefit to the proposed development project;
118 (iii) it is economically sound and feasible to adopt and carry out the project area plan;
119 and
120 (iv) carrying out the project area plan will promote the public peace, health, safety, and

121 welfare of the community in which the project area is located.
122 (3) A project area described in a project area plan:
123 (a) shall include military land; and
124 (b) may include public or private land, whether or not it is contiguous to military land,
125 if:
126 (i) the legislative body of the county in which the public or private land is located, if
127 the public land or private land is located in an unincorporated county, passes a resolution
128 consenting to the inclusion of the land in the project area;
129 (ii) the legislative body of an included municipality passes a resolution consenting to
130 the inclusion of the land in the project area; and
131 (iii) the owner of the public or private land consents to the inclusion of the land in the
132 project area.
133 Section 3. Section 63H-1-502 is amended to read:
134 63H-1-502. Allowable uses of tax increment and other funds.
135 (1) The authority may use tax increment and other funds available to the authority,
136 other than municipal services revenue:
137 (a) for any purpose authorized under this chapter;
138 (b) for administrative, overhead, legal, and other operating expenses of the authority;
139 (c) to pay for, including financing or refinancing, all or part of the development of land
140 within the project area from which the tax increment funds or other funds were collected,
141 including assisting the ongoing operation of any development or facility within the project area;
142 (d) to pay the cost of the installation and construction of any publicly owned
143 infrastructure and improvements within the project area from which the tax increment funds
144 were collected;
145 (e) to pay the cost of the installation of publicly owned infrastructure and
146 improvements, including a passenger ropeway, as defined in Section 72-11-102 , outside the
147 project area if:
148 (i) the authority board determines by resolution that the infrastructure and
149 improvements are of benefit to the project area; and
150 (ii) for a passenger ropeway, at least one end of the ropeway is located within the
151 project area.

152 (f) to pay the principal of and interest on bonds issued by the authority.
153 (2) The authority may use revenue generated from the operation of publicly owned
154 infrastructure operated by the authority or improvements operated by the authority to:
155 (a) operate and maintain the infrastructure or improvements; and
156 (b) pay for authority operating expenses, including administrative, overhead, and legal
157 expenses.
158 (3) For purposes of Subsection (1), the authority may use:
159 (a) tax revenues received under Subsection 59-12-205 (2)(b)(ii); and
160 (b) resort communities tax revenues generated from a project area that contains private
161 land.
162 (4) The determination of the authority board under Subsection (1)(e) regarding benefit
163 to the project area shall be final and conclusive.




Legislative Review Note
as of 1-30-12 5:36 PM

Office of Legislative Research and General Counsel