47 of 2024 - Interlocal Agreement between Salt Lake City and the Utah Fairpark Area Investment and Restoration Di1
SALT LAKE CITY RESOLUTION
RESOLUTION NO. __________ of 2024
(Authorizing the execution of an interlocal agreement with the
Utah Fairpark Area Investment and Restoration District for municipal services)
WHEREAS, during the 2024 general legislative session, the Utah State Legislature passed
House Bill 562, the Utah Fairpark Area Investment and Restoration District (the Act) and created
the Utah Fairpark Area Investment and Restoration District (Fairpark District).
WHEREAS, as set forth in the Act, the purpose of the Fairpark District is to encourage and
facilitate development within the fairpark district boundary, which is described and depicted in the
Act.
WHEREAS, among other things, the Act establishes that certain taxes, including but not
limited to enhanced property tax, that would have otherwise been received by the City for the City
to provide municipal services, largely be redirected to the Fairpark District.
WHEREAS, the Act requires the City to provide the same municipal services to the
fairpark district boundary as the City provides other areas of the City with similar zoning and
development levels.
WHEREAS, the Act provides that the City shall receive 25% of the enhanced property tax
from the fairpark district boundary, which alone does not cover the City’s costs for services. For
example, in 2023, the City’s cost for municipal services in the fairpark district boundary was $1.2
million but the property taxes were approximately $45,000.
WHEREAS, in order to help address this difference in costs, the Act further provides that
the City and Fairpark District enter into an agreement providing for the Fairpark District to
reimburse the City for the cost of services the City is obligated to provide the growing development
within the fairpark district boundary.
WHEREAS, with the City receiving a percentage of the City’s enhanced property taxes,
the City will not be fully reimbursed for the cost for municipal services, and as such, the City
depends on the reimbursement from the Fairpark District to help offset the cost of providing the
necessary municipal services, including but not limited to police, fire, transportation, public lands,
and homelessness assistance.
WHEREAS, the City and Fairpark District desire to execute the attached interlocal
agreement in which the Fairpark District agrees to provide the City funds for the cost of the
municipal services.
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
1. It does hereby approve the execution and delivery of an interlocal cooperation agreement
between the Utah Fairpark Area Investment and Restoration District and Salt Lake City
Corporation regarding the payment for municipal services. Such agreement, upon both the
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City and Fairpark District approving the agreement, shall become effective January 1, 2025. The
interlocal agreement does not create an interlocal entity.
2. Erin Mendenhall, Mayor of Salt Lake City or her designee is hereby authorized to approve,
execute, and deliver said agreement on behalf of Salt Lake City Corporation, in
substantially the same form as now before the City Council and attached hereto as Exhibit
A, subject to such minor changes that do not materially affect the rights and obligations of
the City thereunder and as shall be approved by the Mayor, her execution thereof to
constitute conclusive evidence of such approval.
3. This resolution shall take effect upon adoption.
Passed by the City Council of Salt Lake City, Utah this day of , 2024.
SALT LAKE CITY COUNCIL
Chairperson
Attest:
City Recorder
10th December
Senior City Attorney
Dec 17, 2024
ictori etro җDec 20, 2024 1фѷт7 SҘ
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3
EXHIBIT A
[Attach Form Interlocal Agreement]
MUNICIPAL SERVICES INTERLOCAL AGREEMENT
This Municipal Services Interlocal Agreement (Agreement) is entered into between Salt
Lake City Corporation, a Utah municipal corporation (City), and the Utah Fairpark Area
Investment and Restoration District, a political subdivision of the State of Utah (Fairpark
District), to be effective as of January 1, 2025 (Effective Date).
A.In 2024, the Utah State Legislature passed House Bill 562, the Utah Fairpark Area
Investment and Restoration District (the Act) and created the Fairpark District.
B.As set forth in the Act, the purpose of the Fairpark District is to encourage and
facilitate development within the Fairpark district boundary in Salt Lake City, described and
depicted on Exhibit A (Fairpark District Boundary). The Fairpark District Boundary shall also
mean any land included in the Fairpark District Boundary as permitted by the Act.
C.Among other things, the Act establishes that certain taxes, including but not
limited to Enhanced Property Tax (defined below) that would have otherwise been received by the
City for the City to provide municipal services, largely be redirected to the Fairpark District.
D.The Act requires the City to provide the same municipal services to the Fairpark
District Boundary as the City provides other areas of the City with similar zoning and development
levels.
E.The Act provides that the City shall receive 25% of the Enhanced Property Tax
(defined below) from the Fairpark District Boundary, which alone does not currently cover the
City’s costs for services.
F.The Act further provides that the City and Fairpark District enter into this
Agreement providing for the Fairpark District to reimburse the City for the cost of services the
City is obligated to provide to the growing development within the Fairpark District Boundary.
G.With the City receiving a percentage of the City’s property taxes, the City will not
currently be reimbursed for the cost for municipal services, and as such, the City depends on this
reimbursement from the Fairpark District to help offset the cost of providing the necessary
municipal services for the Fairpark District Boundary as it develops.
H.The parties desire to enter into this Agreement setting forth the terms of the Fairpark
District’s reimbursement to the City for municipal services.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:
1.Reimbursement. Pursuant to Section 11-70-206, the Act, in addition to the amount
generated by the City’s property tax rate applied to the Base Property Taxable Value and the 25%
of the Enhanced Property Tax, the City and Fairpark District shall contract for the cost of municipal
services the City provides. The term “Base Taxable Value” means the taxable value of the land
within the Fairpark District Boundary as of January 1, 2024, determined by the Fairpark District
Board and the Salt Lake County Assessor. The Base Taxable Value adopted by the Fairpark
District Board on December 9, 2024 is $296,554,669.00. The Base Taxable Value shall not change
unless agreed to by the parties in an amendment to this Agreement based on a change in the
assessed value by the Salt Lake County Assessor and approved by the Fairpark Board. The term
“Enhanced Property Tax” means the difference between: i) the amount of property tax revenues
generated in a tax year by the City from privately owned land, using the current assessed value of
the property; and ii) the amount of property tax revenues that would be generated in the same tax
year by the City from that same area using the Base Taxable Value of the property. Beginning
January 1, 2025 to December 31, 2025, in addition to the 25% required under the Act, the Fairpark
District shall pay the City no additional amount of the Enhanced Property Tax to reimburse the
City for municipal services. The percentage of the Enhanced Property Tax that the Fairpark District
pays the City, in addition to the 25% required under the Act, shall be referred to herein as the
“Additional Enhanced Property Tax Payment.” The parties acknowledge and agree that the
Additional Enhanced Property Tax Payment may increase if the City expends more on the cost for
services than what the City receives from the City’s portion of the Base Taxable Value and the
25% of the Enhanced Property Tax.
2. Adjustment.
a. The City and Fairpark District acknowledge that an Additional Enhanced
Property Tax Payment of 0% does not currently cover the City’s cost for services and has
not prior to the creation of the Fairpark District. As such, the parties will reevaluate the
City’s cost for municipal services for the Fairpark District Boundary by December 31,
2025, and not less than every 5 years thereafter, and determine the appropriate adjustment
to the Additional Enhanced Property Tax Payment, if applicable.
b. The Fairpark District understands and agrees that under the Act, the City is
entitled to be reimbursed for municipal services it provides to the Fairpark District
Boundary. As such, prior to 2028, the Fairpark District shall not pledge, bond against,
encumber, leverage, allocate, earmark, or in any other way make the future Enhanced
Property Tax unavailable such that the Fairpark District will not be able to increase the
Additional Enhanced Property Tax Payment, or an equivalent amount from another source,
that the City will receive after December 31, 2025, unless the parties enter into an amended
Municipal Services Agreement. The parties expect that the Enhanced Property Tax
Payment and any Additional Enhanced Property Tax Payment that the City will receive,
pursuant to statute, after December 31, 2025, will reimburse the City for the cost of
municipal services during the term of this Agreement. Sufficient documentation
substantiating the costs of municipal services provided to the Fairpark District shall be
provided by the City to the Fairpark District for the period May 1, 2023 to May 1, 2025 no
later than October 31, 2025. Upon the City’s completion of this documentation, the
Fairpark District shall receive this report at a public meeting to discuss the reimbursement
of the City for these municipal services. The Fairpark District’s ability to reimburse the
City through the Additional Enhanced Property Tax Payment, as agreed to by the parties
and approved by the Fairpark board and Salt Lake City Council, is a material inducement
to the City in agreeing to the terms of this Agreement, and as such, should the Fairpark
District somehow become unable to commit to an Additional Enhanced Property Tax
Payment as the result of the Fairpark District pledging, bonding against, encumbering,
leveraging, allocating, earmarking, or in any other way making the future Enhanced
Property Tax unavailable prior to 2028, this shall be deemed a “Material Default” and the
City will be entitled to extraordinary remedies.
3. Term. The term of this Agreement shall be from January 1, 2025, until the earlier
of when: i) the Parties enter into an amended Municipal Services Agreement; (ii) the Fairpark
District terminates the collection of all taxes (including Enhanced Property Tax), that, if collected
by the Fairpark District, preempts the City’s collection of the same tax; or iii) the Fairpark District
dissolves.
4. Reporting. No less than annually, the Fairpark District shall provide the City with
a written report outlining a summary of the projects that are currently underway or planned in
relation to the use of the Enhanced Property Tax, an accounting of all Enhanced Property Tax
received by the Fairpark District, the current status and estimated construction schedule for the
development within the Fairpark District Boundary, and any other updates requested by the City
related to the Enhanced Property Tax.
5. Default. Neither party shall be in default under this Agreement unless such party
fails to perform an obligation required under this Agreement within 30 days after written notice is
given to the defaulting party by the other party, reasonably setting forth the reasons in which the
defaulting party has failed to perform such obligation. If the nature of the defaulting party’s
obligation is such that more than 30 days are reasonably required for performance or cure, the
defaulting party shall not be in default if such party commences performance within such 30-day
period and after such commencement diligently pursues such cure to completion, provided that
the maximum additional time to complete such cure is 90 days (or, 120 days in total). In the event
a default under this Agreement remains uncured after the above-described cure period, the non-
defaulting party retains all rights under law and equity. In the event the Fairpark District default is
deemed a Material Default as defined in Paragraph 2.b., the City shall be entitled to receive an
Additional Enhanced Property Tax Payment, or an equivalent amount, that reimburses the City for
its costs for municipal services provided to the Fairpark District Boundary that are not otherwise
covered by the City’s share of the Base Taxable Value and the 25% of the Enhanced Property Tax.
6. Miscellaneous
a. Entire Agreement. This Agreement constitutes the entire understanding
between the parties regarding the subject matter of this Agreement. There are no terms,
obligations, covenants, statements, representations, warranties or conditions relating to
the subject matters other than those specifically contained in this Agreement. This
Agreement supersedes all prior oral or written negotiations, agreements and covenants
relative to the subject matters of this Agreement.
b. Notices. All notices, demands, requests, and other communications
required or permitted hereunder shall be in writing and shall be deemed to be delivered,
whether received or not, three (3) days after deposit by United States mail, registered or
certified (or another commercially acceptable means requiring a return receipt), postage
prepaid, addressed as follows:
If to Fairpark District: Fairpark District
Attn: Benn Buys
60 E. South Temple, Suite 600
Email: bbuys@utah.gov
If to City: Salt Lake City Corporation
Attn: Rachel Otto
Room 306, City & County Building
451 South State Street
Salt Lake City, UT 84111
Email: Rachel.Otto@slc.gov
With a copy to: Salt Lake City Attorney’s Office
Attn: City Attorney
451 South State Street, Suite 505A
Salt Lake City, UT 84111
Email: slcattorney@slc.gov
Such communications may also be given by email, provided any such communication is
concurrently given by one of the above methods. Notices shall be deemed effective upon
the receipt, or upon attempted delivery if the delivery is refused by the intended recipient
or if delivery is impossible because the intended recipient has failed to provide a reasonable
means of accomplishing delivery.
c. Governing Law. This Agreement is intended to be performed in the State
of Utah, and the laws of Utah shall govern the validity, construction, enforcement and
interpretation of this Agreement.
d. Amendments. This Agreement may be amended or supplemented only by
an instrument in writing executed by both parties and pursuant to the Interlocal Cooperation
Act.
e. Waiver. No waiver of any of the provisions of this Agreement shall be
deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor
shall any waiver constitute a continuing waiver. No waiver of any of the terms of this
Agreement shall be binding unless reduced to writing and signed by the party or parties
sought to be charged with such waiver.
7. Interlocal Cooperation Act Requirements. In satisfaction of the requirements of the
Interlocal Cooperation Act, §§ 11-13-101 et seq., and in connection with this Agreement, the
parties agree as follows:
a. This Agreement shall be approved by each party pursuant to § 11-13-202.5;
b. This Agreement shall be reviewed as to the proper form and compliance with
applicable law by an authorized attorney on behalf of each party pursuant to § 11-
13-202.5;
c. An executed original counterpart shall be filed with the keeper of records for each
party pursuant to § 11-13-209;
d. The Term of this Agreement does not exceed fifty (50) years pursuant to § 11-13-
216 of the Interlocal Cooperation Act;
e. The joint and cooperative undertaking shall be administered by each party’s
respective executive administrators. No separate legal entity is created by the
terms of this Agreement. No real or personal property shall be acquired jointly by
the parties as a result of this Agreement. To the extent that a party acquires, holds,
or disposes of any real or personal property for use in the joint or cooperative
undertaking contemplated by this Agreement, such party shall do so in the same
manner that it deals with other property of such party; and
f. Except as otherwise specifically provided herein, each party shall be responsible
for its own costs of any action taken pursuant to this Agreement, and for any
financing of such costs.
IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of
the Effective Date.
Salt Lake City Corporation:
Erin Mendenhall, Mayor
Approved as to form:
Salt Lake City Attorney’s Office
Attest and countersign:
Salt Lake City Recorder
Utah Fairpark Area Investment and Restoration District:
Benjamin J. Buys, Executive Director
Approved as to form:
EXHIBIT A
TO
MUNICIPAL SERVICES INTERLOCAL AGREEMENT
As provided for in HB 562, the boundary information for the Fairpark District Boundary is
delineated in a shapefile that is enacted as part of the bill in electronic form and may be found at:
https://le.utah.gov/~2024/documents/HB0562_shapefile.zip and has the following electronic file
security code: cf4d4953297c3ea4c936028b7c89e3c0. The Fairpark District Boundary is also
depicted in a format that is intended to be more accessible to the general public and is provided
for informational purposes only, shows the boundary as delineated in the shapefile, but is not
enacted as part of this bill and may be found at
https://www.google.com/maps/d/edit?mid=140hCtPp_tbgfo4lm2PFBCipH5bJmFTs
Resolution 47 of 2024 Interlocal Agreement
between Salt Lake City and the Utah Fairpark
Area Investment and Restoration District
Final Audit Report 2024-12-20
Created:2024-12-17
By:Michelle Barney (Michelle.Barney@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAe3w1RM3KaDr5c9WOMj2O_HbZsRGKdkDM
"Resolution 47 of 2024 Interlocal Agreement between Salt Lake
City and the Utah Fairpark Area Investment and Restoration Dist
rict" History
Document created by Michelle Barney (Michelle.Barney@slc.gov)
2024-12-17 - 9:10:24 PM GMT
Document emailed to Allison Parks (allison.parks@slc.gov) for signature
2024-12-17 - 9:13:22 PM GMT
Email viewed by Allison Parks (allison.parks@slc.gov)
2024-12-17 - 9:13:37 PM GMT
Document e-signed by Allison Parks (allison.parks@slc.gov)
Signature Date: 2024-12-17 - 9:14:32 PM GMT - Time Source: server
Document emailed to victoria.petro@slc.gov for signature
2024-12-17 - 9:14:34 PM GMT
Email viewed by victoria.petro@slc.gov
2024-12-18 - 2:47:57 PM GMT
Email viewed by victoria.petro@slc.gov
2024-12-20 - 2:39:35 PM GMT
Signer victoria.petro@slc.gov entered name at signing as Victoria Petro
2024-12-20 - 10:37:28 PM GMT
Document e-signed by Victoria Petro (victoria.petro@slc.gov)
Signature Date: 2024-12-20 - 10:37:30 PM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slc.gov) for signature
2024-12-20 - 10:37:32 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slc.gov)
Signature Date: 2024-12-20 - 11:01:53 PM GMT - Time Source: server
Agreement completed.
2024-12-20 - 11:01:53 PM GMT