Council pauses workforce-housing LDA for 41 West Main amid affordability and deed-restriction concerns

Midway City Council continued a proposed Legislative Development Agreement (LDA) intended to finish a plumbed basement at 41 West Main Street into about six studio or one-bedroom workforce-housing units, saying the draft requires stronger affordability and long-term protections.

Michael Henke, Midway’s Community Development Director, presented the proposal and told the Council the basement was previously plumbed for six units and that initial rent calculations would be about 55% of Area Median Income (AMI) including utilities. Staff estimated construction costs of roughly $150,000–$200,000 per unit and said the six units would need about 3.72 acre-feet of municipal/industrial water; Midway currently has roughly 50 acre-feet of M&I water available, staff said.

Council members questioned whether the proposed rents would constitute meaningful workforce housing. “We should be targeting a lower AMI, properly adjusting rents by unit and household size, and prioritizing Midway service and essential workers,” Council Member Kevin Payne said, urging more precise eligibility rules and enforcement. Several members said a 20-year deed restriction proposed by the applicant was too short; council discussion ranged from 30 years to effectively permanent restrictions. The Council also raised tenant-eligibility, subleasing, and annual compliance-monitoring requirements, and suggested the property owner bear monitoring costs.

Council Member Andy Garland moved to continue the item and have staff, the applicant and City Attorney refine the agreement and return with additional data; the motion carried. The Council asked for comparative data on workforce and low-income housing in Heber City and Park City to inform long-term restrictions and subsidy terms. Mayor Craig Simons recommended using the proposal as a model for future affordable-housing LDAs but emphasized that the draft needs the changes described before approval.