Salt Lake City approves agreements with Miller Company of Utah for major Fairpark growth

SALT LAKE CITY — Leaders in Utah’s capital city pushed for the fences Tuesday, approving three agreements that will complete a new Fairpark district that could one day host an MLB team.

The Salt Lake City Council voted unanimously to approve a proposed rezoning of 93 acres owned by the Larry H. Miller Company from the Jordan River to Redwood Road and North Temple to I-80, as well as a development agreement with the company.

The vote included a provision that the city must enter into a development agreement outlining the terms of future growth plans, including affordable housing goals. The city also plans to conduct an annual audit of city costs and sales taxes associated with the project to provide transparency.

“I’m grateful that we found an agreement,” Salt Lake City Councilman Alejandro Puy said shortly before the vote. “We are here together to sign an agreement to hopefully welcome (an MLB) baseball team to Salt Lake City. I will be pleased if that happens.”

City leaders also agreed to authorize Salt Lake City Mayor Erin Mendenhall to negotiate terms with the new Utah Fairpark Area Investment and Restoration District for services in the Fairpark area — to a certain extent. The latter agreement essentially confirms that both sides agree to cooperate in future arrangements for services that Salt Lake City will provide to the territory.

Final Terms

The rezoning opens the door for buildings up to 400 feet tall in the Fairpark area, as projects of that height receive additional approval from the Federal Aviation Administration. Buildings over 200 feet would also undergo a design process with the city.

No minimum lot sizes, widths or backlogs are required. However, after weeks of public negotiations, Salt Lake City and the Larry H. Miller Company have finalized language on a 40-year development agreement that adds additional terms for future growth plans.

According to the final agreement:

• The Miller Company’s land use applications will undergo “expedited review,” significantly speeding up development in the area.
• The district would be exempt from the Jordan River riparian corridors and airport overlay zones.
• The company also received the right to maintain “temporary parking spaces” within the property area for up to 15 years.

The deal includes an opt-out clause in the event Salt Lake City incentivizes a current MLB owner to relocate to Utah’s capital city during the first 10 years of the deal, as well as two five-year extensions to the clause.

In return, the Miller Company agreed to some of the city’s conditions:

• At least 10% of new housing projects over the next 40 years will be dedicated to affordable housing. All of these units would be reserved for residents earning 80% of the area’s median income.
• At least 20% of new homes would be considered “family housing,” with units with at least two or three bedrooms.
• All potential MLB games would have to be played at Fairpark Stadium, consistent with a home game agreement the city has with Smith Entertainment Group for Utah Jazz and Utah Hockey Club games.

Salt Lake City Council President Victoria Petro told KSL.com that affordable and family housing was the “first and last” consideration underlying negotiations.

“This is where we started the conversation, and we wouldn’t have moved forward if we didn’t understand it,” she said, adding that the discussions were not adversarial but required extensive work to find the right wording that would work all worked.

The two sides agreed to make joint efforts to address future problems in the zone. These include future public safety and transportation challenges, as well as future plans that could include tunnels or bridges to make it easier for people to cross the North Temple.

Tuesday’s vote fulfills a requirement outlined in HB562, a bill that lawmakers passed earlier this year. The bill called for several things, including a new Fairpark District and up to $900 million in state funding for a new MLB stadium, as well as requiring Salt Lake City to reach a development agreement by the end of the year.

Last year, the Miller Company formed Big League Utah, a coalition aimed at bringing an MLB expansion franchise to Utah. A stadium would be built in the Fairpark district along with a new mixed-use development. If a rezoning had not been approved, the city would have lost development control over the land as outlined in the bill.

Company officials called Tuesday night’s vote “an important step in the development process” for the district as it redevelops the old Rocky Mountain Power site.

“It is a historic investment in west Salt Lake City and will create a place where Utah’s families can gather and thrive,” the statement read in part. “We look forward to continuing to work with our community, city and state partners to ensure we develop a connection point for families, culture, business and recreation.”

An additional Fairpark agreement

Salt Lake City also authorized Mendenhall to enter into an agreement with the Utah Fairpark Area Investment and Restoration District for services such as water and public safety within the city limits, meeting another deadline set in HB562.

However, the agreement itself is tenuous. Petro said the two sides agreed that there had been no major developments since the bill was presented this year and there were no concrete plans for the size of the area. You should only commit to continuing to discuss services as future needs arise.

The original agreement contains some basic conditions. Salt Lake City agreed to provide “the same municipal services” to the Fairpark District because it serves other parts of the city “with similar levels of zoning and development.” In return, the city receives a quarter of the increased property taxes within the district boundaries.

Additionally, the city will receive additional reimbursement from the county board because the increase in property tax values ​​is unlikely to cover the cost of the services, at least initially.

Rachel Otto, Mendenhall’s chief of staff, said the city needs these “safeguards” to prevent service shortages or the need to increase citywide taxes, which is a major concern for the city related to the legislation.

Sen. Scott Sandall, R-Tremonton, chairman of the district board, celebrated the completion of both agreements to complete the Fairpark District. In a statement Tuesday, Sandall said the board looks forward to the next planning steps moving forward in 2025.

“We appreciate the months of negotiations that have helped secure a vibrant, catalytic future for this West Salt Lake City area,” he said in part. “We appreciate the collaborative process undertaken by the City and Larry H. Miller Company, as well as the good intentions of both parties throughout this process.”