Iron County sets policy for development fees and mill levies in unincorporated areas

During the Iron County Commission meeting held on March 10, 2025, key discussions centered around the establishment of a new policy for Public Improvement Districts (PIDs) aimed at facilitating housing development in the region. The meeting highlighted the need for a balanced approach to taxation and development, particularly in light of the county's unique housing landscape.

A significant point of discussion was the proposed mill levy, which is a tax rate used to calculate local property taxes. Commissioners expressed a preference for setting the initial mill levy at around 5 mills, emphasizing that this figure serves as a starting point for developers. The rationale behind this threshold is to ensure that potential housing projects remain financially viable without imposing excessive tax burdens on residents. The commissioners noted that state law permits levies of up to 15 mills, which could potentially double current tax rates for some properties. This concern reflects a broader commitment to maintaining affordable housing options in Iron County.

The meeting also addressed the fee structure associated with PID applications. A preliminary fee of approximately $3,000 was proposed for each PID request, with the understanding that this fee could be adjusted as necessary. This flexibility aims to streamline the application process and reduce administrative burdens on both the county and developers. The commissioners discussed the possibility of collaborating with municipalities to collect these fees, further enhancing efficiency in the process.

In addition to the primary focus on PIDs, the commissioners acknowledged the importance of timely decision-making in the current economic climate, characterized by fluctuating tariffs and interest rates. They recognized that providing clarity on available options for developers would aid in long-term capital planning and foster a more conducive environment for housing development.

The meeting concluded with a commitment to refine the PID policy and ensure that it aligns with the county's goals of promoting housing while maintaining oversight on tax implications. As the county moves forward, the discussions from this meeting will play a crucial role in shaping the future of housing development in Iron County, balancing the needs of developers with the financial realities faced by residents.