Utah Code 11-42-205. Unimproved property

(1)

Terms Used In Utah Code 11-42-205

Appraisal: A determination of property value.
Assessment area: means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under 2, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. See Utah Code 11-42-102
Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
Governing body: means :

(a)	for a county, city, or town, the legislative body of the county, city, or town;

(b)	for a special district, the board of trustees of the special district;

(c)

for a special service district:

(i)	the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301; or

(ii)	the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301;

(d)	for the military installation development authority created in Section 63H-1-201, the board, as defined in Section 63H-1-102;

(e)	for the Utah Inland Port Authority, created in Section 11-58-201, the board, as defined in Section 11-58-102; and

(f)

for a public infrastructure district, the board of the public infrastructure district as defined in Section 17D-4-102. See Utah Code 11-42-102

Local entity: means :

(a)	a county, city, town, special service district, or special district;

(b)	an interlocal entity as defined in Section 11-13-103;

(c)	the military installation development authority, created in Section 63H-1-201;

(d)	a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, including a public infrastructure district created by a development authority;

(e)	the Utah Inland Port Authority, created in Section 11-58-201; or

(f)

any other political subdivision of the state. See Utah Code 11-42-102

Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

Property: includes real property and any interest in real property, including water rights and leasehold rights. See Utah Code 11-42-102

Unimproved property: means property upon which no residential, commercial, or other building has been built. See Utah Code 11-42-102

(a)

Before a local entity may designate an assessment area in which more than 75% of the property proposed to be assessed consists of unimproved property, and designation of the assessment area would require that the local entity issue bonds, the local entity shall obtain:

(i)

an appraisal:

(A)	of the unimproved property;

(B)	from an appraiser who is a member of the Appraisal Institute;

(C)	addressed to the local entity or a financial institution; and

(D)	verifying that the market value of the property, after completion of the proposed improvements, is at least three times the amount of the assessments proposed to be levied against the unimproved property; or

(ii)

the most recent taxable value of the unimproved property from the assessor of the county in which the unimproved property is located, verifying that the taxable value of the property, after completion of the proposed improvements, is at least three times the amount of the assessments proposed to be levied against the unimproved property.

(b)

If the owner of the unimproved property has entered into a construction loan acceptable to the local entity to finance the facilities to be constructed or installed on the unimproved property, the market value of the unimproved property, as determined under Subsection (1)(a)(i), may include, at the local entity’s option:

(i)	the principal amount of the construction loan; or

(ii)

the value of the unimproved property with the facilities to be financed by the construction loan, as determined by an appraisal of:

(A)	the unimproved property; and

(B)	the facilities proposed to be constructed.

(2)

With respect to the designation of an assessment area described in Subsection (1)(a), the local entity may require:

(a)	financial information acceptable to the governing body with respect to the owner’s ability to pay the proposed assessments;

(b)	a financial institution’s commitment securing, to the governing body’s satisfaction, the owners’ obligation to pay the proposed assessments; or

(c)	a development plan, approved by a qualified, independent third party, describing the plan of development and the financial feasibility of the plan, taking into account growth trends, absorption studies, and other demographic information applicable to the unimproved property.

(3)	Information that an owner provides to a local entity under Subsection (2)(a) is not a record for purposes of Title 63G, Chapter 2, Government Records Access and Management Act.

Amended by Chapter 388, 2011 General Session

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