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Midway Council backs legislative development agreements to pursue workforce housing
Summary
Facing high land and construction costs and state limits on mandatory requirements, the Council supported using negotiated legislative development agreements (LDAs) with standard affordability terms, incentives and deed restrictions; staff will draft a boilerplate LDA and test it on two proposed projects.
Midway City Council members on July 21 agreed to use legislative development agreements (LDAs) as the primary tool to secure workforce housing because state law no longer permits municipalities to require workforce housing or collect in-lieu fees.
Community Development Director Michael Henke explained the constraint and why LDAs are necessary: "Because state law no longer allows municipalities to require workforce housing or collect in-lieu fees, legislative development agreements provide the City's primary tool for negotiating workforce housing on a project-by-project basis." Council members said LDAs should be negotiated individually so the city receives lasting public benefits in exchange for incentives.
Council discussed specific policy elements that should be included in LDAs: length and enforceability of deed restrictions, income eligibility standards, rent limits and monitoring, subsidy repayment if affordability lapses, and reasonable limits on developer profit when public subsidies are provided. Possible incentives raised included leasing City-owned municipal and industrial water rights, paying impact or permit fees (with repayment clauses if affordability expires), allowing additional residential density, and design standards to preserve neighborhood character.
Council Member Kevin Payne recommended targeting units at 60% Area Median Income (AMI) or below, arguing that level "better serves teachers, service workers, and entry-level employees than the commonly used 80% AMI standard," which he said is generally not affordable in Wasatch County. Members emphasized the city should negotiate long-term deed restrictions and compliance monitoring to ensure housing remains available to local workers.
Staff will prepare a boilerplate legislative development agreement outlining standard affordability requirements, incentives, deed restrictions, subsidy repayment provisions and monitoring; the two proposed projects will be test cases subject to Council review and final approval.
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