Salt Lake City approves rezone, partnerships on major Fairpark development

SALT LAKE CITY — Leaders of Utah's capital city swung for the fences Tuesday, approving three agreements to finalize plans for a new Fairpark district that could house a Major League Baseball team someday.

The Salt Lake City Council voted unanimously to approve a proposed rezoning of 93 acres the Larry H. Miller Company owns from the Jordan River to Redwood Road and North Temple to I-80, also known as the Power District. The council also approved a development agreement with the company.

The vote included a provision that the city enter into a development agreement outlining terms of future growth plans, including affordable housing goals. To provide transparency, the city also plans to create an annual audit of city costs and sales taxes tied to the project.

"I'm thankful that we have found an agreement," Salt Lake City Councilman Alejandro Puy said moments before the vote. "We are here together to sign an agreement to hopefully welcome (an MLB) baseball team to Salt Lake City. I will be joyful to see that happen."

City leaders also authorized Salt Lake City Mayor Erin Mendenhall to agree to terms with the new Utah Fairpark Area Investment and Restoration District on services in the Fairpark area — to an extent. The latter deal confirms the two sides agree to work together on future agreements over services Salt Lake City will provide for the area.

Finalizing terms

The rezone opens the door for buildings up to 400 feet tall in the Fairpark area, given that projects of that height receive additional clearance from the Federal Aviation Administration. Buildings over 200 feet would also go through a review-design process with the city.

There are no required minimum lot sizes, widths or setbacks. However, after weeks of public negotiation, Salt Lake City and the Larry H. Miller Company finalized language in a 40-year development agreement that adds other terms for future growth plans.

Under the final agreement:

• The Miller Company's land use applications will receive an "expedited review," essentially speeding up development in the area.
• The district would be exempt from the Jordan River riparian corridor and airport overlay zones.
• The company also gained the right to "maintain temporary parking lots" for up to 15 years in the area.

The deal includes an opt-out clause should Salt Lake City incentivize a current MLB owner to relocate to Utah's capital over the first 10 years of the deal, as well as two five-year extensions to the clause.

In return, the Miller Company agreed to a few terms from the city:

• At least 10% of new housing projects will be dedicated to affordable housing over the next 40 years. All of those units would be set aside for residents making 80% of the area's median income.
• At least 20% of new housing would be considered "family-sized," with units containing at least two or three bedrooms.
• All potential MLB games would have to be played at the Fairpark stadium, matching a home game covenant that the city reached with Smith Entertainment Group over Utah Jazz and Utah Hockey Club games.

Salt Lake City Council Chairwoman Victoria Petro told KSL.com that affordable and family-sized housing was the "first and last" consideration that anchored negotiations.

"It is where we started the conversation, and we wouldn't have moved if we hadn't gotten it," she said, adding that discussions weren't contentious but required extensive work to find the right wording that worked for everyone.

The two sides agreed to share efforts to address future issues in the zone. These include future public safety and transportation challenges, as well as future plans that could include tunnels or bridges to help people cross North Temple.

Tuesday's vote completes a requirement outlined in HB562, a bill legislators approved earlier this year. The bill created multiple things, including a new Fairpark district and up to $900 million in state funds for a new MLB stadium, as well as a requirement for Salt Lake City to reach a zoning agreement by the end of the year.

The Miller Company launched Big League Utah last year, a coalition aiming to bring an MLB expansion franchise to Utah. A stadium would be built within the Fairpark district along with new mixed-use development. Had a rezone not been approved, the city would have lost zoning regulation control of the land as outlined in the bill.

Company officials called Tuesday night's vote "an important step in the development process" for the district, which redevelops old Rocky Mountain Power land.

"It is a historic investment in Salt Lake City's west side and will create a place for Utah's families to gather and thrive," the statement read, in part. "We look forward to continuing to work with our community, city and state partners to ensure we develop a connecting point for families, culture, business and recreation."

An additional Fairpark agreement

Salt Lake City also authorized Mendenhall to finalize an agreement with the Utah Fairpark Area Investment and Restoration District on services like water and public safety within the area of the city, meeting another deadline written in HB562.

However, the agreement itself is thin. Petro explained that the two sides agreed that since there hasn't been a lot of development since the bill was created this year, and there aren't concrete plans as to how large the area will become, they should only commit to keep discussing services as future needs emerge.

The initial agreement includes some baseline terms. Salt Lake City agreed to provide "the same municipal services" to the Fairpark district as it provides other parts of the city "with similar zoning and development levels." In exchange, the city will receive a quarter of the enhanced property taxes within the district boundary.

The city will also receive additional reimbursement from the district board because the increase in property tax values isn't expected to cover the cost of services, at least early on.

Rachel Otto, chief of staff for Mendenhall, said the city needs these "safeguards" to prevent service shortages or a need to raise citywide taxes, which is a major concern the city had with the legislation.

Sen. Scott Sandall, R-Tremonton, chairman of the district board, celebrated the completion of both agreements finalizing the Fairpark district. In a statement on Tuesday, Sandall said the board is looking forward to the next planning steps picking up in 2025.

"We appreciate the months of negotiations that have helped ensure a vibrant, catalytic future for this area on the west side of Salt Lake City," he said, in part. "We appreciate the collaborative process the city and the Larry H. Miller Company have undertaken and the good faith efforts of both parties throughout this process."

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