Utah lawmakers give nod to bill tweaking controversial alternative incorporation route

SALT LAKE CITY — Utah lawmakers have given a preliminary green light to changes to a controversial incorporation law that some critics say gives developers too much power.

The Utah House Political Subdivisions Committee on Wednesday unanimously agreed to favorably recommend passage of HB510, amending a 2024 law that allowed for the creation of what the legislation dubs preliminary municipalities. Now the measure, requiring developers to first engage with elected county leaders in pursuing their projects before tapping the preliminary municipality process, goes to the full House for consideration.

One locale has formed under the preliminary municipality guidelines outlined in the 2024 law, SB258 — Echo Canyon near Moab in Grand County. Foes of the creation of the locale filed suit earlier this month, charging that SB258 is unconstitutional and asking that the creation of Echo Canyon be declared null and void. Developers behind three other projects, Park City Tech in Summit County, Nine Springs in Morgan County and Willow in Kane County, have also applied to become preliminary municipalities. Their applications are still in the works.

HB510 aims to address some of the "specific issues" that have emerged in allowing preliminary municipalities to form, said Rep. Tiara Auxier, R-Morgan, the sponsor of the bill. "At its core, this is a conversation about responsible growth, local coordination and making sure our statutory framework works, not just on paper but in practice for counties, taxpayers and future residents," she said.

Typically, residents of areas looking to convert their unincorporated communities into cities must petition for a public vote on the issue. If successful, those living in the area then vote on whether to become a city or remain unincorporated. Under the preliminary municipality route, developers can bypass the scrutiny of local leaders and instead process their development plans on vacant land through the Utah Lieutenant Governor's Office.

Auxier's proposal, though, would require developers to engage in "good faith coordination" with county officials before going the preliminary incorporation route. More specifically, they must first seek zoning changes with county officials to pursue their plans and propose development agreements, among other things.

The bill "requires earlier and meaningful coordination with county officials before an applicant can file a feasibility request (for a preliminary municipality) with the lieutenant governor," Auxier said. "They must engage in at least 18 months of documented good faith coordination with the county."

Seeking the creation of cities through the preliminary incorporation mechanism is intended as "a last resort" for developers, not a means to pressure counties to bend to their will, Auxier said.

Related topics