Office Location
451 South State Street
Room 418
Salt Lake City, UT 84111
Business Hours
Mon - Fri 8 am to 5 pm
Phone
801.535.7240
801.535.7245 FAX
Role of Redevelopment Agencies in Utah
Redevelopment agencies (RDA's) are a tool used by local government to clean-up blight and to implement the development goals of the communities. Each RDA consists of elected council or commission which is the RDA board by state statute. The RDA board adopts the plans, policies and budgets which are implemented by the agency.
What do Redevelopment Agencies do?
RDA's assist communities to address three types of issues:
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Redevelopment - Encourage private and public investment in previously developed areas that are blighted.
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Economic Development - Work with businesses to increase the jobs available in the community and the state as a whole.
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Housing Development - Increase the amount and variety of affordable housing within the community.
Redevelopment:
A strategy to encourage private investment in previously developed, but blighted, areas.
Redevelopment has taken many forms throughout the State of Utah:
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Making rehabilitation loans to property owners.
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Expanding parking in the community's commercial corridor.
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Assisting with land assemblage so the highest and best use of the properties can be realized.
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Upgrading deteriorated public sidewalk and street improvements.
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Creating new parks.
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Transitioning areas from outmoded and/or partially abandoned uses to modern commercial, retail, and residential uses.
What is a Project Area?
A project area is a part of a community, usually less than 100 acres in size, which has been targeted for RDA assistance. RDA's create a project area by adopting a plan for redevelopment or economic development of a specific geographic area. Many communities have multiple RDA project areas.
How do RDA's pay for community improvements?
In most cases RDA's pay for only a fraction of development costs related to the new development they encourage. The RDA's share of development costs is paid through the use of property tax increment. Property tax increment is the increase in the property taxes generated in a project area over and above property taxes generated prior to the new development (base taxes). Generally, base taxes are not used to pay project costs. The use of tax increment must be approved by a committee made up of representatives from each of the affected property taxing entities.
How is a Redevelopment Plan and Budget adopted?
There is a six step process which must be followed to adopt a redevelopment plan and budget:
First, a blight survey area is identified for study. The study entails gathering information on the condition of buildings and improvements, the existence of hazardous materials, social factors and safety concerns.
Second, the RDA board holds an evidentiary hearing to determine whether or not all or part of the area qualifies as blighted. If an area is blighted, it is eligible for redevelopment assistance. "Blight" is a legal term defined in the Utah Neighborhood Development Act.
Third, the RDA prepares a redevelopment plan and project area budget to identify how redevelopment would be encouraged. The planning process varies in each community. Typically planning includes formal or informal discussions with property owners, investors, taxing agencies, community planners and others to identify planning objectives, strategies and implementation costs.
Fourth, the planning commission for the community reviews the redevelopment plan to assure it conforms to the community's master plan.
Fifth, the RDA board holds one or more public hearings to obtain comments and suggestions on the proposed plan and budget. The RDA board and the community council or commission then adopt, adopt with modifications or reject the plan. Adopting the plan establishes a redevelopment project area.
Sixth, if the plan includes the use of tax increment, a committee of representatives from the affected taxing agencies approves, approves with changes, or rejects the project area budget.
What happens after a Redevelopment Plan and Budget is adopted?
After plan and budget adoption, the RDA implements the plan as funds become available. The RDA adopt an annual implementation budget for each project area. In the early years of a redevelopment project area, the tax increment collected is often minimal; therefore, redevelopment agencies work with private property owners, developers, and others to facilitate redevelopment.
When is Eminent Domain used?
Eminent domain is sometimes used to assemble property when the size of the parcels and/or the condition of the improvements are an obstacle to redeveloping an area. To exercise eminent domain the RDA must follow a legal process which has been established to make certain property owner and tenants receive a fair price, relocation assistance is provided and owners are reimbursed for actual relocation costs. An RDA can only use eminent domain after a redevelopment plan is adopted which authorizes the use of eminent domain. Eminent domain can only be used during the first five years of a redevelopment project area.
IF A PRIVATE INDIVIDUAL THREATENS TO ACQUIRE YOUR PROPERTY BY EMINENT DOMAIN, NOTIFY THE RDA IMMEDIATELY. PRIVATE INDIVIDUALS MAY NOT ACQUIRE PROPERTY BY EMINENT DOMAIN.
Housing Development
A method to maintaining and increase affordable housing in Utah's communities.
RDA's have assisted with the development of affordable housing in Utah through:
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Acquisition of vacant and boarded houses to be renovated and sold to first time home-buyers.
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Low-interest second mortgage financing for first-time home buyers.
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Property acquisition loans to non-profit housing developers.
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Rehabilitation second mortgage loans to low and moderate income homeowners.
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Land assemblage and resale at a price levels determined by housing density.
What types of housing do RDA's encourage?
RDA's encourage needed types of housing in specific areas within redevelopment project areas. Outside of project areas, RDA's help communities develop affordable housing. Affordable is defined as housing made available to low and moderate income residents.
How does the RDA pay for housing?
RDA's seek private and public housing partners which include homeowners, non-profit and for-profit developers, community development corporations, housing authorities and local financial institutions.
RDA's can use up to 20% of the tax increment generated by an economic development or redevelopment project area to encourage the development of affordable housing throughout the community. RDA's use tax increment as it becomes available to stimulate housing rehabilitation, adaptive re-use and new development within redevelopment project areas.
Economic Development
A strategy to increase the number and quality of jobs in the state of Utah. Economic development assisted in the creation of many employment opportunities throughout the State of Utah:
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Dannon Yogurt production plant in West Jordan City which uses milk and fruit produced throughout the state.
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Walmart distribution center in Hurricane.
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Convention center in St. George.
How is an Economic Development Plan and Budget adopted?
A five step process must be followed to adopt an economic development plan and budget.
First, an area is targeted for economic development. This is called a "survey area."
Second, the RDA prepares an economic development plan and project area budget describing the economic development project to be accomplished as a result of RDA participation.
Third, the community planning commission reviews the plan to be certain it conforms to the community's master plan.
Fourth, the RDA board holds one or more public hearings to obtain comments and suggestions on the proposed plan and budget. The RDA board and the community council or commission then adopt, adopt with modifications or reject the plan. Adopting the plan establishes an economic development project area.
Fifth, if the plan includes the use of tax increment, a committee of representatives from the affected taxing agencies approves, approves with changes, or rejects the project area budget.
What happens after an Economic Development Plan and Budget are approved?
After plan and budget adoption, the RDA negotiates an economic development agreement with an employer who will provide the additional employment opportunities. If the plan is prepared without a specific economic development partner, the RDA follows the plan to encourage economic development.