(1)Subject to approval of the housing and transit reinvestment zone committee as described in Section 63N-3-605, in order to create a housing and transit reinvestment zone, a municipality or public transit county that has general land use authority over the housing and transit reinvestment zone area, shall:
(1)(a) prepare a proposal for the housing and transit reinvestment zone that:
(1)(a)(i) demonstrates that the proposed housing and transit reinvestment zone will meet the objectives described in Subsection 63N-3-603(1);
(1)(a)(ii) explains how the municipality or public transit county will achieve the requirements of Subsection 63N-3-603(2)(a)(i);
(1)(a)(iii) defines the specific transportation infrastructure needs, if any, and proposed improvements and estimated budgets;
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(1) Subject to approval of the housing and transit reinvestment zone committee as described in Section 63N-3-605, in order to create a housing and transit reinvestment zone, a municipality or public transit county that has general land use authority over the housing and transit reinvestment zone area, shall:
(1)(a) prepare a proposal for the housing and transit reinvestment zone that:
(1)(a)(i) demonstrates that the proposed housing and transit reinvestment zone will meet the objectives described in Subsection 63N-3-603(1);
(1)(a)(ii) explains how the municipality or public transit county will achieve the requirements of Subsection 63N-3-603(2)(a)(i);
(1)(a)(iii) defines the specific transportation infrastructure needs, if any, and proposed improvements and estimated budgets;
(1)(a)(iv) defines the boundaries of:
(1)(a)(iv)(A) the housing and transit reinvestment zone; and
(1)(a)(iv)(B) the sales and use tax boundary corresponding to the housing and transit reinvestment zone boundary, as described in Section 63N-3-610;
(1)(a)(v) includes maps of the proposed housing and transit reinvestment zone to illustrate:
(1)(a)(v)(A) the proposed boundary and radius from a public transit hub;
(1)(a)(v)(B) proposed housing density within the housing and transit reinvestment zone; and
(1)(a)(v)(C) existing zoning and proposed zoning changes related to the housing and transit reinvestment zone;
(1)(a)(vi) identifies any development impediments that prevent the development from being a market-rate investment, including proposed strategies and estimated budgets for addressing each one;
(1)(a)(vii) describes the proposed development plan and estimated budgets, including the requirements described in Subsections 63N-3-603(2) and (4);
(1)(a)(viii) establishes a base year and collection period to calculate the property tax increment within the housing and transit reinvestment zone;
(1)(a)(ix) establishes a sales and use tax base year to calculate the sales and use tax increment within the housing and transit reinvestment zone in accordance with Section 63N-3-610;
(1)(a)(x) describes projected maximum revenues generated and the amount of property tax increment capture from each taxing entity and proposed expenditures of revenue derived from the housing and transit reinvestment zone;
(1)(a)(xi) includes an analysis of other applicable or eligible incentives, grants, or sources of revenue that can be used to reduce the finance gap;
(1)(a)(xii) estimates budgets and evaluates possible benefits to active and public transportation availability and impacts on air quality;
(1)(a)(xiii) proposes a finance schedule to align expected revenue with required financing costs and payments;
(1)(a)(xiv) provides a pro-forma for the planned development that:
(1)(a)(xiv)(A) satisfies the requirements described in Subsections 63N-3-603(2), (3), and (4);
(1)(a)(xiv)(B) includes data showing the cost difference between what type of development could feasibly be developed absent the housing and transit reinvestment zone property tax increment and the type of development that is proposed to be developed with the housing and transit reinvestment zone property tax increment; and
(1)(a)(xiv)(C) provides estimated budgets and construction costs, anticipated revenue, financing, expenses, and other sources and uses of funds for the project area; and
(1)(a)(xv) for a housing and transit reinvestment zone at a commuter rail station, light rail station, or bus rapid transit station that is proposed and not in public transit service operation as of the date of submission of the proposal, demonstrates that the proposed station is:
(1)(a)(xv)(A) included as needed in phase one of a metropolitan planning organization's adopted long-range transportation plan and in phase one of the relevant public transit district's adopted long-range plan; and
(1)(a)(xv)(B) reasonably anticipated to be constructed in the near future; and
(1)(b) submit the housing and transit reinvestment zone proposal to the Governor's Office of Economic Opportunity.
(2) As part of the proposal described in Subsection (1), a municipality or public transit county shall study and evaluate possible impacts of a proposed housing and transit reinvestment zone on parking within the city and housing and transit reinvestment zone.
(3) (3)(a) After receiving the proposal as described in Subsection (1)(b), the Governor's Office of Economic Opportunity shall:
(3)(a)(i) within 14 days after the date on which the Governor's Office of Economic Opportunity receives the proposal described in Subsection (1)(b), provide notice of the proposal to all affected taxing entities, including the Tax Commission, cities, counties, school districts, metropolitan planning organizations, and the county assessor and county auditor of the county in which the housing and transit reinvestment zone is located; and
(3)(a)(ii) at the expense of the proposing municipality or public transit county as described in Subsection (5), contract with an independent entity to perform the financial gap analysis described in Subsection (3)(b).
(3)(b) The gap analysis required in Subsection (3)(a)(ii) shall include:
(3)(b)(i) a description of the planned development;
(3)(b)(ii) a market analysis relative to other comparable project developments included in or adjacent to the municipality or public transit county absent the proposed housing and transit reinvestment zone;
(3)(b)(iii) an evaluation of the proposal to and a determination of the adequacy and efficiency of the proposal;
(3)(b)(iv) an evaluation of the proposed increment capture needed to cover the enhanced development costs associated with the housing and transit reinvestment zone proposal and enable the proposed development to occur; and
(3)(b)(v) based on the market analysis and other findings, an opinion relative to the appropriate amount of potential public financing reasonably determined to be necessary to achieve the objectives described in Subsection 63N-3-603(1).
(3)(c) After receiving notice from the Governor's Office of Economic Opportunity of a proposed housing and transit reinvestment zone as described in Subsection (3)(a)(i), the State Tax Commission shall:
(3)(c)(i) evaluate the feasibility of administering the tax implications of the proposal; and
(3)(c)(ii) provide a letter to the Governor's Office of Economic Opportunity describing any challenges in the administration of the proposal, or indicating that the Tax Commission can feasibly administer the proposal.
(4) After receiving the results from the analysis described in Subsection (3)(b), the municipality or public transit county proposing the housing and transit reinvestment zone may:
(4)(a) amend the housing and transit reinvestment zone proposal based on the findings of the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic Opportunity submit the amended housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee; or
(4)(b) request that the Governor's Office of Economic Opportunity submit the original housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee.
(5) (5)(a) The Governor's Office of Economic Opportunity may accept, as a dedicated credit, up to $20,000 from a municipality or public transit county for the costs of the gap analysis described in Subsection (3)(b).
(5)(b) The Governor's Office of Economic Opportunity may expend funds received from a municipality or public transit county as dedicated credits to pay for the costs associated with the gap analysis described in Subsection (3)(b).