Hefty new ‘Beehive Development Agency' bill advances despite government overreach concerns

Yahoo

05-03-2025

SALT LAKE CITY () — A controversial economic development bill introduced a week before the end of the 45-day Utah Legislative Session passed the committee Monday before being paused on the Senate floor.
sets out to create a powerful new state entity called the Beehive Development Agency (BDA), which would work to expedite and coordinate economic development projects, like housing or energy projects, funded through property tax differentials. The agency would have planning, bonding, land use, and taxing authority.
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The bill has the backing of some of the state's heavy hitters, like Governor Spencer Cox's office. Sponsor Sen. Kirk Cullimore (R – Draper) said it would be 'a limited tool for the Governor's Office of Economic Opportunity' to create and attract big-impact, generational projects, such as nuclear power plants, large manufacturing areas, and coordinate housing projects under a single housing office.
'There's a demand for (development) out there, we would just like to see it more strategically coordinated,' Cullimore told reporters, specifying that the agency would be for projects that benefit the state, not a 'new subdivision and a Walmart,' he said.
An original version of the bill had a provision that local cities and counties would not have a say in any of the development, but a substitute version removed that to allow for local buy-in via a city or county's legislative body. Even still, critics say this agency is an expansive use of state power.
The bill sets up an Economic Opportunity Coordinating Council — comprised of state leaders and city stakeholders — to council the BDA.
'Utah needs to enhance its ability to respond quickly and efficiently to significant economic development opportunities,' Cullimore said to the committee.
While the bill passed the committee, several residents expressed concerns about transferring power from elected officials to a private entity, saying it would be a shadow organization controlled by the governor with little public oversight. Others expressed concerns about having such a broad bill fast-tracked near the end of the session.
'A lot of people have just had it with the legislature. They just feel like you guys up here are not responsive. They don't want statewide control, they want local control. They don't want a new entity with taxing authority. They don't want coordinated efforts, they want freedom from their government,' said Maryann Christensen, the executive director of Utah Legislature Watch.
Sen. John Johnson voted against the bill, citing similar concerns, saying, 'As a legislature, we're losing credibility with the public that thinks we rush into things and we don't listen.'
Johnson continued: 'I have a hard time supporting it because I worry about the perception. We a lot of times lose the battle because we don't communicate effectively what we are trying to do.'
Other lawmakers approved of the bill, but felt there was still work that needed to be done. Sen. Ann Millner (R – Ogden) said it's time to centralize and coordinate development better, and while the bill still 'needs some work,' she said Cullimore showed he was willing to make changes.
'I feel like we need to have the opportunity to keep it moving and get it in the right place because I really do feel like it's important for the future of Utah,' Millner said.
The Utah Rivers Council is one of the groups most ardently opposed to the bill, claiming the bill would 'hijack' local tax revenue and could lead to projects that greatly increase water rates and dry up the Great Salt Lake.
The council, along with the Great Salt Lake Waterkeeper, said the bill could pave the way for previously proposed water projects to move forward, potentially diverting water from the Great Salt Lake.
'The BDA is tasked with and given all the powers to get those projects done by forcing them on local communities since they will be exempt from local land use controls. To add insult to injury, the community can have its current tax collections hijacked to pay for the project,' the press release read.
The bill was circled on the Senate floor Monday, just days before the end of the 2025 Legislative Session. It is unclear at this time if it will have enough time to go through both the Utah Senate and House before Friday.
'I think there is some positives in the bill that need to be refined and we probably need to keep it moving through the process so we can at least have a discussion,' Senate President Adams said.
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