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Bills could change the face of redevelopment agencies
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

The fight over the way communities redevelop run-down areas will likely reach Capitol Hill this week. Two bills - one from Sen. Curtis Bramble, R-Provo, the other from Rep. John Dougall, R-Highland - were unveiled Monday, giving a solid look at what the Utah County lawmakers have in mind for the future of redevelopment agencies (RDA).

Dougall's House Bill 307 would require individual taxing entities - such as schools - to choose whether to keep the tax increase or allow their share to go toward the RDA.

SB184 would remove retail-sales outlets from under the RDA umbrella.

"This is a frontal attack on the abuse of RDAs," said Bramble.

RDAs allow cities to use increased property taxes within an area, limited to 100 acres, to pay for improvements and entice development into economically dead zones.

By adding value to such areas, cities can tap more taxes and use the new money to pay off bonds floated to initiate the improvements.

The RDAs have come under fire in recent years as cities fight with one another to land big-box stores and the increased sales taxes they bring.

At the same time, school districts and other taxing entities lose out - for up to 30 years - on the increased tax dollars that are diverted to pay off the bonds.

Bramble's bill also would prohibit communities from using RDA funds to entice office- and business-space developments, as well as industrial parks. It also would prohibit the use of RDA money for sports complexes.

In the immediate future, that could become a barrier for Real Salt Lake owners' dream of building a 22,000-seat Major League Soccer stadium.

Murray and Salt Lake City are competing for the venue, and each have talked about luring the fledgling team by using RDA funds to buy 10 acres of land. The cities, however, could use other resources to buy land for the team.

Bramble's bill also would change the makeup of boards representing agencies tapping property taxes by giving county auditors and assessors appointment power.

Bramble argues that would make the boards less political.

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