A rewrite of state law governing redevelopment agencies, as well as a revised version of a bill drafted in response to Ogden's high-adventure recreation center deal, unanimously passed a Senate committee on Friday.
Both measures are sponsored by Sen. Curt Bramble, R-Provo, and now go to the full Senate.
The rewrite of the RDA law was developed by a task force over the course of the last year in response to perceived abuses of the economic development tool by municipalities. Under the bill, RDAs would become community development and renewal agencies, and the areas they govern would be divided into three categories: economic development, renewal and community development.
The bill tightens rules for declaring areas blighted and using tax-increment funds.
It would not affect redevelopment areas established before February 2005, when the Legislature placed a moratorium on new redevelopment areas and revoked governmental agencies' ability to use eminent domain. The new bill would not allow eminent domain for redevelopment.
Bramble said the bill represents a compromise between the public education system, the Utah Association of Counties, the Utah League of Cities and Towns, and the Utah Taxpayers Association.
Representatives from each of the four groups spoke in favor of it.
The bill drafted in response to Ogden's rec center, initially sponsored by Rep. Neil Hansen, D-Ogden, died in a House committee last week before being revived by Bramble.
That bill would require annual independent financial assessments, using audited statements, of companies that enter public-private partnerships involving lease revenue bonds issued by government entities. It also would require assessments before government enters partnerships.
"I think requiring proof of financial viability is certainly important," Bramble said.
In December, Ogden issued $8.9 million in bonds, to be repaid using lease revenue from tenants Gold's Gym and Fat Cats, to help fund construction of the $18.5 million rec center at the site of the former downtown mall.
Bramble's bill would apply only to public-private partnerships entered into before July 1, which excludes the rec center. Also, unlike Hansen, Bramble said he will remove a provision that allows government entities to rescind partnerships when assessments show companies are unable to meet their financial obligations.
Officials from Ogden, who testified against Hansen's bill, were not in attendance Friday.
John Wright can be reached at jwright@standard.net.
This story appeared in The Daily Herald on page A2.
Posted in Local on Friday, February 10, 2006 11:00 pm
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