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Senate advances bill to enable redevelopment of Midvale Superfund property after contested debate

Utah State Senate · January 23, 2003
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Summary

Senate Bill 35, aimed at enabling redevelopment of a 235-acre Midvale Superfund area, advanced to third reading after senators debated an exemption that would bypass the taxing-entity committee; an amendment to require taxing-entity review failed and the bill moved forward.

Senate Bill 35, presented as a redevelopment vehicle for a large, remediated Superfund area in Midvale, cleared a procedural hurdle Jan. 23 after a contested floor debate over whether the bill should exempt project areas from the taxing-entity-committee review.

Senator Steele, sponsor of SB 35, described the property and argued the bill would redefine ‘‘blight’’ to allow redevelopment and lift an arbitrary acreage cap that had previously prevented redevelopment of large former industrial parcels. Steele said the site represents a substantial portion of Midvale city and that redevelopment could return a tax base that currently does not exist on the remediated property.

Opponents and cautioning senators voiced concern about removing the taxing-entity committee’s review, which was established as a check to ensure taxing entities — including school districts and other local governments — have a voice when tax increment financing is proposed. Senator Steele and supporters responded that the exemption is narrowly confined to Superfund sites and that the added burden of additional committee review deters developers from undertaking costly remediation projects. On the floor, a representative letter from Midvale’s mayor was quoted explaining that the taxing-entity review adds time and expense that discourages developers.

Senator Steele supported an amendment to keep the taxing-entity review in place; Senator Steele later said he would accept the amendment and then supported returning the measure to a form he could support. The amendment to strike the taxing-entity exemption was called and ultimately failed following a standing count; with the exemption intact the bill was advanced to third reading by roll call (23 aye, 4 nay, 2 absent).

Senator Butters and others framed the bill as an effort to give a blighted property a chance to produce tax revenue, while others cautioned against setting a precedent of bypassing local taxing-entity review. Supporters emphasized that the specific facts — an EPA-capped, remediated Superfund parcel that currently produces no taxes — distinguish this bill from broader exemptions.

Next steps: SB 35 will return on third reading where additional amendments or substitutes may be considered before final passage.