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Higher Education Development Areas
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Chris H. Wilson
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LONG TITLE
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General Description:
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This bill enacts provisions relating to the development of property owned by certain higher
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education institutions.
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Highlighted Provisions:
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This bill:
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▸ authorizes certain higher education institutions to designate a development area consisting
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of property owned by the institution;
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▸ provides a process for an institution to adopt a resolution designating a development area;
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▸ requires an institution to establish a fund for revenue from the development area and
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provides for uses of money in the fund;
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▸ provides for property an eligible university leases to a private person to be exempt from a
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privilege tax;
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▸ requires approval from the Transportation and Infrastructure Appropriations
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Subcommittee and the institution's board of trustees before the institution may adopt a
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development agreement relating to property within a development area;
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▸ provides limitations on a board member's participation in development actions and
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requires a board member to disclose a conflict before the board approves a development
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agreement; and
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▸ requires the board to provide an annual report to the Higher Education Appropriations
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Subcommittee for each development area.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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53B-20-108, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 53B-20-108 is enacted to read:
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53B-20-108 . Development of university property.
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(1) As used in this section:
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(a) "Board" means the board of trustees of an eligible university.
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(b) "Conflict" means a situation in which a board member or a family member of a
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board member will or is likely to receive a direct financial benefit because of the
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development of eligible university property within a development area.
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(c) "Designation resolution" means a board resolution designating eligible university
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property as a development area.
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(d) "Development action" means:
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(i) board deliberations on whether to adopt a designation resolution;
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(ii) the board's adoption of a designation resolution;
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(iii) board deliberations on whether to approve a development agreement; or
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(iv) the board's approval of a development agreement.
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(e) "Development agreement" means an agreement governing the development of
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eligible university property within a development area.
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(f) "Development area" means a single, contiguous area:
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(i) of only eligible university property; and
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(ii) that the eligible university designates for development in a designation resolution,
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as provided in this section.
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(g) "Development fund" means the fund described in and established under Subsection
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(4).
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(h) "Direct financial benefit":
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(i) means any form of financial benefit that accrues to an individual directly,
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including:
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(A) compensation, commission, or any other form of a payment or increase of
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money; and
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(B) an increase in the value of a business or property; and
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(ii) does not include a financial benefit that accrues to the public generally.
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(i) "Eligible university" means an institution of higher education listed in Subsection
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53B-1-102(1)(a).
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(j) "Eligible university property" means real property owned by an eligible university.
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(k) "Family member" means a parent, spouse, sibling, child, or grandchild.
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(l) "Leased property" means eligible university property that:
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(i) is within a development area; and
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(ii) an eligible university leases to a private person.
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(2)(a) An eligible university may, by resolution of the board, designate eligible
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university property as a development area.
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(b) Before adopting a designation resolution, a board shall:
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(i) provide notice of the public hearing required under Subsection (2)(b)(ii), as
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required for a class A notice under Section 63G-30-102, for at least seven days
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before the day of the public hearing; and
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(ii) hold a public hearing on the proposed adoption of a designation resolution.
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(c) A notice under Subsection (2)(b)(i) shall include a copy of the proposed designation
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resolution.
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(d) A designation resolution, including a proposed designation resolution that
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accompanies a notice under Subsection (2)(b)(i), shall:
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(i) accurately describe the boundary of the proposed development area;
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(ii) describe the development that is proposed to occur in the proposed development
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area; and
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(iii) estimate the amount and sources of revenue the eligible university expects to
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receive from the development area.
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(e) Before adopting a designation resolution, a board may modify the proposed
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designation resolution to:
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(i) address concerns raised in a public hearing held under Subsection (2)(b)(ii); or
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(ii) clarify or adjust provisions of the proposed designation resolution, as the board
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considers appropriate.
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(f) The board may not adopt a designation resolution if the board has previously adopted
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a designation resolution.
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(3) Within 30 days after the board's adoption of a designation resolution, the board or the
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board's delegee shall deliver a copy of the designation resolution to:
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(a) the clerk of the municipality in which the development area that is the subject of the
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designation resolution is located; and
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(b) the assessor and treasurer of the county in which the development area that is the
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subject of the designation resolution is located.
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(4)(a) Upon adoption of a designation resolution, a board shall establish a separate fund
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related to the development area that is the subject of the designation resolution.
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(b) An eligible university shall deposit into a development fund all money the eligible
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university receives from the development and lease of eligible university property
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within a development area.
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(c) Money in a development fund shall be accounted for separately from any other fund
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of the eligible university.
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(d) An eligible university may use money in a development fund for:
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(i) expenses associated with the development of the development area;
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(ii) capital facility projects of the eligible university;
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(iii) operation and maintenance costs associated with capital facilities of the eligible
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university; or
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(iv) any other eligible university-related purpose.
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(5)(a) Subject to Subsection (5)(b), an eligible university may enter into a development
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agreement.
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(b) Before an eligible university may enter into a development agreement:
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(i) the board shall receive the approval of the Transportation and Infrastructure
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Appropriations Subcommittee of the Legislature for the development agreement;
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and
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(ii) the board shall approve the development agreement by resolution, adopted in a
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public meeting.
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(6)(a) A board member may not participate in a development action if the board
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member or a family member of the board member owns an interest in, is directly
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affiliated with, or is an employee or officer of a private firm, private company, or
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other private entity that the board member reasonably believes is likely to participate
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in or receive a direct financial benefit from the development of land that is the subject
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of a development agreement.
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(b) Before the board approves a development agreement, the board shall require any
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member with a conflict to disclose the conflict in writing to the board.
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(c) Nothing in this Subsection (6) affects the application or effect of any other code
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provision applicable to a board member relating to ethics or conflicts of interest.
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(7) Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege Tax.
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(8)(a) A board shall present a written report to the Higher Education Appropriations
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Subcommittee no later than September 30 of each year after the board's adoption of a
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designation resolution.
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(b) A report under Subsection (8)(a) shall:
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(i) describe the development taking place or expected to take place within the
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development area; and
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(ii) provide a summary of money deposited into and expended from the development
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fund for that development area.
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Section 2. Effective date.
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This bill takes effect on May 7, 2025.
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