Transportation Commission

Administration

Rule 10: Guidelines for Department Participation in Transportation Reinvestment Zones

Effective Date: 11/21/2023

Admin. Code Reference: R940-10

Rule Type: Current Rule

R940. Transportation Commission, Administration.

R940-10. Guidelines for Department Participation in Transportation Reinvestment Zones.

R940-10-1. Purpose and Authority.

(1) The purpose of this rule is to establish a process for state participation in a transportation reinvestment zone created under Section 11-13-227. The objective of state participation in a TRZ is to enhance the state transportation system by accelerating projects that are likely to stimulate increased local tax revenue that can be used to offset the cost of constructing those projects.

(2) The commission and department will only consider participating in a TRZ, as described in this rule, if the TRZ includes:

(a) a state highway project;

(b) a project on a local highway that is eligible for federal funds; or

(3) This rule is enacted under the authority of Title 63G, Chapter 3, Utah Administrative Rulemaking Act and Section 72-1-201.

R940-10-2. Definitions.

(1) "Commission" means the Transportation Commission created in Section 72-1-301.

(2) "Department" means the Department of Transportation created in Section 72-1-201.

(3) "Eligible transit project" means a public transit capital development project that adds new capacity and for which the commission may prioritize money from the Transit Transportation Infrastructure Fund created in Section 72-2-124.

(4) "Long-Range Transportation Plan" means any one of the five plans developed by the department and the state's four MPOs that forecast the state's transportation needs for the next 20-plus years and may also be known as a regional transportation plan.

(5) "Public agency" has the same meaning as defined in Section 11-13-103.

(6) "Requesting public agency" means the public agency seeking state participation in a TRZ.

(7) "Transportation reinvestment zone" or "TRZ" has the same meaning as defined in Section 11-13-103.

(8) "TRZ agreement" means the agreement described in Section 11-13-227.

R940-10-3. Reviewing Requests for State Participation in a TRZ.

(1)(a) If a public agency is seeking state participation in a TRZ, the public agency shall notify the department, in writing, at the earliest available opportunity and provide the information listed in Subsection (2).

(b) The requesting public agency is encouraged to work with the department in formulating and developing the necessary information.

(2) When making the notification described in Subsection (1)(a), the requesting public agency shall provide the following information:

(a) a written description of the project, along with any engineering or technical information that may have been prepared;

(b) a statement indicating whether the project has already been programmed into the Statewide Transportation Improvement Program (STIP) or Transportation Improvement Program (TIP) and, if not, whether it is in a long-range transportation plan and the phase of the long-range plan;

(d) a statement indicating whether any environmental or other federal clearances or permits will be necessary and, if so, the status of any federal applications;

(e) a draft TRZ agreement;

(f) a written description of additional ways not mentioned in the TRZ agreement the requesting public agency will use to bring about the proposed project;

(g) a written description of why the project is needed and the benefit that the project will bring to the state transportation system and the requesting public agencies, including tax revenue projections;

(h) a map identifying the boundaries of the TRZ and the affected property owners;

(i) a map showing the project area of the project under consideration;

(j) an economic impact analysis that includes estimates of the economic benefit and increased tax revenue that will likely occur if the project is completed;

(k) cost estimates and a proposed schedule for the various phases of the proposed project; and

(l) a statement describing any conflict of interest related to the project of which the requesting public agency is aware.

(3)(a) Upon receiving a request for state participation in a TRZ, the department shall evaluate the request and all accompanying information to determine whether it complies with this rule, is complete, and is feasible.

(b) The department shall also calculate an independent cost estimate for the proposed project.

(i) the request complies with this rule, is complete, and is feasible;

(ii) environmental clearances are completed or highly probable; and

(iii)(A) the project is a state highway or eligible transit project that is already programmed in the Statewide Transportation Improvement Program (STIP) or the Transportation Improvement Program (TIP);

(B) the project is a state highway or eligible transit project that is part of a long-range transportation plan and the department determines that advancing the project will not defer other projects that are already prioritized and programmed in the Statewide Transportation Improvement Program (STIP) or Transportation Improvement Program (TIP); or

(4) The department shall review the proposal and make a recommendation to the commission at a public meeting, including whether the commission should approve state participation in the TRZ and the justification for the department's recommendation.

(5) At any time in this process, the department may contact a requesting public agency for additional information and may incorporate amendments suggested by the requesting public agency in its evaluation.

(6)(a) The department shall notify a requesting public agency of the date, time, and location of the meeting at which the commission will hear the proposal.

(b) The department shall provide the requesting public agency with at least 30 days written notice.

R940-10-4. Factors Used to Consider Proposals.

(1) Any request for state participation in a TRZ made under this rule must be approved by the commission before the department may enter into an agreement described under Section R940-10-5.

(2) In deciding whether to approve a request for state participation in a TRZ, the commission shall take into account the following factors:

(a) whether the requested project is part of the Statewide Transportation Improvement Program (STIP), the Transportation Improvement Program (TIP), or a long-range transportation plan and, if part of a long-range transportation plan, will not delay any of the projects already included in the STIP;

(b) the benefits of the project to the state transportation system and the requesting public agencies;

(d) the estimated costs and proposed schedule of the project;

(e) level of local commitment included as part of the request, based on the amount or percentage of funding proposed by the requesting public agency;

(f) whether the proposed project is subject to a local planning initiative;

(g) whether the project will alleviate significant existing or future congestion or hazards to the traveling public or provide other substantial improvements to the transportation system;

(h) whether the request has the potential to extend department resources to other needs; and

(i) whether the proposed project fulfills a need widely recognized by the public, elected officials, and transportation planners; and

(j) land use considerations.

(3)(a) For a request that includes improvements to a surface street that approaches an interchange or ramp or for a new interchange or ramp, the requesting public agency shall commit to providing at least 50% of the costs of the project over the life of the TRZ agreement.

(b) The 50% described in Subsection (2)(a) may include the value of any additional ways not mentioned in the TRZ agreement the requesting public agency will use to bring about the proposed project.

R940-10-5. Record of Request and TRZ Agreements.

(1)(a) The department shall maintain a record on each TRZ participation request.

(b) Except for individual records in the file that may be classified private or protected, the contents of the file shall otherwise be public.

(2)(a) If the commission approves state participation in a TRZ, the department may enter into a TRZ agreement with the requesting public agency that will set forth the proposed project, the method of financing the project, the work that will be done, and projected timelines.

(b) Notwithstanding Subsection (2)(a), the department may not enter into a TRZ agreement until the agreement is approved and a public hearing is held in accordance with Section 11-13-227.

(3) A TRZ agreement shall include:

(a) adequate security to UDOT of receiving payment after the project is done;

(b) a statement indicating that parties of the agreement are not relieved of any state permitting requirements, including encroachment and access permits;

(c) a statement indicating that the TRZ agreement does not preclude UDOT requiring other agreements related to the proposed project;

(d) provisions to address conflicts of interest related to the proposed project;

(e) a statement indicating that the TRZ agreement does not include the work terms for the project;

(f) any indemnification clause determined necessary by the Department; and

(g) a statement that incorporates the project proposal that was approved by the Transportation Commission.

KEY: transportation reinvestment zone, public agency, TRZ, land use

Date of Last Change: November 21, 2023

Authorizing, and Implemented or Interpreted Law: 11-13-227