11-42-205 - Unimproved property.
11-42-205. Unimproved property.
(1) (a) Before a local entity may designate an assessment area in which more than 75% ofthe property proposed to be assessed consists of unimproved property, the local entity shallobtain:
(i) an appraisal:
(A) of the unimproved property;
(B) from an appraiser who is a member of the Appraisal Institute;
(C) addressed to the local entity or a financial institution; and
(D) verifying that the market value of the property, after completion of the proposedimprovements, is at least three times the amount of the assessments proposed to be levied againstthe unimproved property; or
(ii) the most recent taxable value of the unimproved property from the assessor of thecounty in which the unimproved property is located, verifying that the taxable value of theproperty, after completion of the proposed improvements, is at least three times the amount of theassessments proposed to be levied against the unimproved property.
(b) If the owner of the unimproved property has entered into a construction loanacceptable to the local entity to finance the facilities to be constructed or installed on theunimproved property, the market value of the unimproved property, as determined underSubsection (1)(a)(i), may include, at the local entity's option:
(i) the principal amount of the construction loan; or
(ii) the value of the unimproved property with the facilities to be financed by theconstruction loan, as determined by an appraisal of:
(A) the unimproved property; and
(B) the facilities proposed to be constructed.
(2) With respect to the designation of an assessment area described in Subsection (1)(a),the local entity may require:
(a) financial information acceptable to the governing body with respect to the owner'sability to pay the proposed assessments;
(b) a financial institution's commitment securing, to the governing body's satisfaction, theowners' obligation to pay the proposed assessments; or
(c) a development plan, approved by a qualified, independent third party, describing theplan of development and the financial feasibility of the plan, taking into account growth trends,absorption studies, and other demographic information applicable to the unimproved property.
(3) Information that an owner provides to a local entity under Subsection (2)(a) is not arecord for purposes of Title 63G, Chapter 2, Government Records Access and Management Act.
Amended by Chapter 246, 2009 General Session