Layton City Council on Jan. 2 adopted Resolution 25-1, an interlocal participation agreement with the Utah Department of Transportation (UDOT) to form a Transportation Reinvestment Zone (TRZ) covering land near the Gordon Avenue and Highway 89 intersection. The council's vote was unanimous.

City staff told the council the TRZ will allow property- and sales-tax increments generated in the designated area to be deposited into a separate TRZ fund and used to reimburse or finance transportation projects that serve the zone. The agreement requires projects funded through the TRZ to comply with the Gordon Avenue/Highway 89 Town Center master plan the council adopted March 21, 2024.

Why it matters: The TRZ makes it easier to coordinate transportation improvements with future development on roughly a 40.5-acre master-planned parcel that UDOT owns, and it creates a formal mechanism for UDOT and Layton to prioritize and cost-share projects serving that site. Although staff said annual tax increments from the site are expected to be small compared with typical city budgets, the city and UDOT both view the arrangement as a way to protect transportation investments and to ensure development proceeds in line with the adopted plan.

Key terms and governance: State law and implementing rules created the TRZ tool. Under the interlocal, the TRZ fund must be segregated and projects approved by a three-member TRZ board: one representative from UDOT Region 1, one Layton City representative (staff recommended an operations-focused appointee such as public works), and a third member with financial or audit expertise chosen by the two agencies. Each board member has one vote; the board and staff will draft bylaws and project-level agreements for each TRZ-funded project. The agreement also states that project funding must be committed before construction begins; a city-initiated project may be funded by the city and later reimbursed from TRZ increments.

Financial scope and timeline: Staff estimated sales-tax and property-tax revenues from the area will be limited in the near term and offered illustrative numbers discussed in the work session (sales-tax projections in the low millions over time). The council and staff repeatedly noted that one practical result of the interlocal is not immediate revenue but the ability to align transportation improvements and land entitlements so the development functions as intended. The agreement currently runs through 2046; staff said parties may negotiate a new agreement after that term.

Public input and oversight: The council opened a public hearing before the vote. Several residents spoke in favor of planning and coordination; others asked clarifying questions about whether TRZ money could be used for developer-required public improvements or spent outside the area. Staff and council members responded that the agreement and statute do not authorize use of TRZ funds to supplant developer responsibilities and that UDOT's share of revenue is restricted to projects benefiting the TRZ area.

Vote and immediate next steps: After the public hearing, a council member moved to adopt Resolution 25-1 and the council approved it by unanimous roll call. City staff will work with UDOT to finalize board bylaws, prepare separate project-level agreements for any projects brought to the TRZ board, and set up accounting for the TRZ fund. Staff recommended the council adopt the interlocal as presented.

Ending: Council members framed the agreement as a way to preserve the integrity of the adopted town-center master plan and to secure a formal partner in delivering area transportation infrastructure; they emphasized that the city will have review and funding decisions on any project affecting city funds or the master plan.