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Utah House approves bill allowing RDA tax-increment to fund municipal telecom infrastructure
Summary
After debate over scope and ownership, the House passed House Bill 272 to let redevelopment agencies spend tax-increment dollars for telecommunications infrastructure and related cultural facilities outside project areas, 55-15. Sponsors say cities will retain discretion and must require nondiscriminatory access.
The Utah House on Feb. 25 approved House Bill 272, which allows redevelopment agencies (RDAs) to spend tax-increment revenues outside their original project areas for specified public purposes, including municipal or leased telecommunications infrastructure, cultural facilities and related maintenance. The measure passed the House 55 to 15 and will be sent to the Senate for its consideration.
Sponsor Representative Curtis said the amendment adds a specific criterion to existing code so cities may use increment funds to "put in infrastructure for cable or municipal cable or telecommunications systems that they would then lease out or rent out to the retail providers" and that the bill includes language requiring that any such use be "non preferential and nondiscriminatory." He framed the change as a tool to help cities expand broadband and support local businesses in areas where private providers may not invest.
Lawmakers pressed the sponsor on several points. Representative Becker asked whether, if taxpayer-supported infrastructure were installed, private carriers could become the owners of that infrastructure; Curtis replied he did not have a definitive answer as ownership arrangements will depend on local discretion and agreements. Representative Barras and others sought clarification on how nondiscrimination would be enforced and how maintenance and future repairs would be funded; Curtis pointed to lease arrangements or continued use of RDA revenue streams as possible mechanisms.
Supporters cited precedent in the code allowing off-site expenditure of increment funds for convention centers, underpasses and other public projects. Curtis said the amendments also extend certain sunset dates and limit new RDA creation, emphasizing the bill applies to pre-1993 project areas and that local elected officials (often city councils sitting as RDA boards) retain oversight.
Opponents warned the provision could broaden RDA uses beyond their traditional redevelopment purpose. Representative Becker noted that while RDAs are designed to address blighted project areas, the amendment could enable communities to finance improvements outside those areas and urged caution. Curtis and supporters countered that the statute imposes parameters and that legislative review and prior examples provide guardrails.
The House adopted Representative Curtis’s amendment package on the floor; the final vote to pass House Bill 272 was recorded as 55 yes, 15 no. The bill will proceed to the Utah Senate.
