Source: The Salt Lake Tribune —
It’s no secret that real estate developers dominate the Utah Legislature.
The House speaker, Senate president, House majority leader and nearly one out of every five lawmakers in the body are, in one way or another, involved in real estate development. So when developers want something from the Legislature, they get it.
Even with that context, though, a bill that popped out Friday evening — SB295, sponsored by Sen. Dan McCay, a real estate lawyer in his daily life — is a true jaw-dropper.
In essence, the bill would let a developer or group of developers become their own government, issuing bonds to pay for infrastructure projects — like sewer lines or roads — and then levying taxes on residents to pay them off.
Furthermore, it would give developers the power of eminent domain — letting them force property owners to relinquish land in exchange for compensation.
The developers like it, obviously, because it would be far, far cheaper way to finance their projects than getting more traditional financing from a bank.
Initially, these new entities were referred to as “Developer-led Infrastructure Districts,” but apparently putting “Developer” in the name was a little too on-the-nose, so they have been rebranded as Dedicated Infrastructure Districts.
