(1)As used in this section:
(1)(a) "Board of trustees" means the board of trustees of an eligible university.
(1)(b) "Conflict" means a situation in which a board of trustees member or a family member of a board of trustees member will or is likely to receive a direct financial benefit because of the development of eligible university property within a development area.
(1)(c) "Designation resolution" means a board of trustees' resolution designating eligible university property as a development area.
(1)(d) "Development action" means:
(1)(d)(i) a board of trustees' deliberations on whether to adopt a designation resolution;
(1)(d)(ii) a board of trustees' adoption of a designation resolution;
(1)(d)(iii) a board of trustees' deliberations on whether to approve a development agreement; or
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(1) As used in this section:
(1)(a) "Board of trustees" means the board of trustees of an eligible university.
(1)(b) "Conflict" means a situation in which a board of trustees member or a family member of a board of trustees member will or is likely to receive a direct financial benefit because of the development of eligible university property within a development area.
(1)(c) "Designation resolution" means a board of trustees' resolution designating eligible university property as a development area.
(1)(d) "Development action" means:
(1)(d)(i) a board of trustees' deliberations on whether to adopt a designation resolution;
(1)(d)(ii) a board of trustees' adoption of a designation resolution;
(1)(d)(iii) a board of trustees' deliberations on whether to approve a development agreement; or
(1)(d)(iv) a board of trustees' approval of a development agreement.
(1)(e) "Development agreement" means an agreement between an eligible university and a development partner that governs the development of eligible university property within a development area.
(1)(f) "Development area" means a single, contiguous area that:
(1)(f)(i) consists only of eligible university property;
(1)(f)(ii) is no larger than 75 acres; and
(1)(f)(iii) the board of trustees designates for development or redevelopment in a designation resolution under this section.
(1)(g) "Development fund" means the fund described in and established under Subsection (4).
(1)(h) "Development partner" means a person who enters into a development agreement with an eligible university to develop or redevelop eligible university property within a development area.
(1)(i) "Direct financial benefit":
(1)(i)(i) means any form of financial benefit that accrues to an individual directly, including:
(1)(i)(i)(A) compensation, commission, or any other form of a payment or increase of money; and
(1)(i)(i)(B) an increase in the value of a business or property; and
(1)(i)(ii) does not include a financial benefit that accrues to the public generally.
(1)(j) "Eligible university" means an institution of higher education listed in Subsection 53H-1-102(1)(a).
(1)(k) "Eligible university property" means real property owned by an eligible university as of January 1, 2025.
(1)(l) "Family member" means a parent, spouse, sibling, child, or grandchild.
(1)(m) "Leased property" means eligible university property that:
(1)(m)(i) is within a development area; and
(1)(m)(ii) an eligible university leases to a private person.
(1)(n) "Privilege tax" means a tax imposed under Section 59-4-101.
(2) (2)(a) Except as provided in Subsection (2)(f), before January 1, 2035, an eligible university may, by resolution of the eligible university's board of trustees, designate eligible university property as a development area.
(2)(b) Before adopting a designation resolution, a board of trustees shall:
(2)(b)(i) obtain approval from the Utah Board of Higher Education of the geographic area proposed to be designated as a development area; and
(2)(b)(ii) after obtaining approval from the Utah Board of Higher Education under Subsection (2)(b)(i):
(2)(b)(ii)(A) provide notice of the public hearing required under Subsection (2)(b)(ii)(B), as required for a class A notice under Section 63G-30-102, for at least seven days before the day of the public hearing; and
(2)(b)(ii)(B) hold a public hearing on the proposed adoption of a designation resolution.
(2)(c) A notice under Subsection (2)(b)(ii)(A) shall include a copy of the proposed designation resolution.
(2)(d) A designation resolution, including a proposed designation resolution that accompanies a notice under Subsection (2)(b)(ii)(A), shall:
(2)(d)(i) accurately describe the boundary of the proposed development area;
(2)(d)(ii) describe the development that is proposed to occur in the proposed development area; and
(2)(d)(iii) estimate the amount and sources of revenue the eligible university expects to receive from the development area.
(2)(e) Before adopting a designation resolution, a board of trustees may modify the proposed designation resolution to:
(2)(e)(i) address concerns raised in a public hearing held under Subsection (2)(b)(ii)(B); or
(2)(e)(ii) clarify or adjust provisions of the proposed designation resolution, as the board of trustees considers appropriate.
(2)(f) A board of trustees may not adopt a designation resolution if:
(2)(f)(i) the board of trustees has previously adopted a designation resolution; or
(2)(f)(ii) the area in the proposed development area would overlap with part or all of:
(2)(f)(ii)(A) a community reinvestment project area created under Title 17C, Chapter 5, Part 1, Community Reinvestment Project Area Plan, as that project area exists on January 1, 2025; or
(2)(f)(ii)(B) a housing and transit reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, as that zone exists on January 1, 2025.
(3) Within 30 days after a board of trustees' adoption of a designation resolution, the board of trustees or the board of trustees' delegee shall deliver a copy of the designation resolution to:
(3)(a) the clerk of the municipality in which the development area that is the subject of the designation resolution is located; and
(3)(b) the assessor, treasurer, and auditor of the county in which the development area that is the subject of the designation resolution is located.
(4) (4)(a) Upon adoption of a designation resolution, a board of trustees shall establish a separate fund related to the development area that is the subject of the designation resolution.
(4)(b) An eligible university shall deposit into a development fund all money the eligible university receives from the development and lease of eligible university property within a development area.
(4)(c) Money in a development fund shall be accounted for separately from any other fund of the eligible university.
(4)(d) An eligible university may use money in a development fund for:
(4)(d)(i) expenses associated with the development of the development area;
(4)(d)(ii) capital facility projects of the eligible university;
(4)(d)(iii) operation and maintenance costs associated with capital facilities of the eligible university; or
(4)(d)(iv) any other eligible university-related purpose.
(5) An eligible university may enter into a development agreement.
(6) (6)(a) A board of trustees member may not participate in a development action if the board of trustees member or a family member of the board of trustees member owns an interest in, is directly affiliated with, or is an employee or officer of a private firm, private company, or other private entity that the board of trustees member reasonably believes is likely to participate in or receive a direct financial benefit from the development of land that is the subject of a development agreement.
(6)(b) Before the board of trustees approves a development agreement, the board of trustees shall require any member with a conflict to disclose the conflict in writing to the board of trustees.
(6)(c) Nothing in this Subsection (6) affects the application or effect of any other code provision applicable to a board of trustees member relating to ethics or conflicts of interest.
(7) (7)(a) Beginning January 1 of the year immediately following the execution of a development agreement, the possession or other beneficial use enjoyed by a person of leased property that is located within the development area subject to the development agreement shall be subject to Title 59, Chapter 4, Privilege Tax, if that leased property is used in connection with a business conducted for profit.
(7)(b) The treasurer of the county in which the leased property described in Subsection (7)(a) is located shall, in the manner and at the time provided in Section 59-2-1365:
(7)(b)(i) collect privilege tax from a lessee of the leased property; and
(7)(b)(ii) distribute 80% of the privilege tax revenue to the eligible university.
(8) (8)(a) A board of trustees shall present a written report to the Higher Education Appropriations Subcommittee no later than September 30 of each year after the board of trustees' adoption of a designation resolution.
(8)(b) A report under Subsection (8)(a) shall:
(8)(b)(i) describe the development taking place or expected to take place within the development area; and
(8)(b)(ii) provide a summary of money deposited into and expended from the development fund for that development area.