Senators unanimously approve measure to overhaul RDAs

Senators gave unanimous approval on Friday to Sen. Curt Bramble's long-awaited RDA overhaul bill, SB196.

A second bill allowing cities to divert tax increment to abandoned industrial sites also received approval. The measure, SB245, could assist with redevelopment of the abandoned Geneva Steel site in Orem, said Bramble.

"This is an important issue for the state that when you have a site like that you have a mechanism for cities to employ to develop the site," said Bramble. "This came forward as a result of Geneva Steel, but there are several properties around the state that would potentially qualify."

For the past year, lawmakers and several interest groups have been working to overhaul current RDA laws. SB196 is the "consensus" product of that work, said Bramble. It tightens current law and allows municipalities to undertake three types of RDA projects: economic development, urban renewal and community development.

With a community development project, groups like a school district or county can choose whether to have their tax increment put into an RDA project. With economic development and urban renewal, a super-majority of impacted groups must agree to shift tax increment.

Both bills will now move to the House for a vote.