17C-6-203. Allowable uses of zone revenue.
(1) An agency that is assigned to manage a zone shall use zone revenue within:
(a) the zone; and
(b) an impacted primary area, if the agency finds that the use of the zone revenue will:
(i) directly benefit the zone; and
(ii) promote the objectives of the zone, as outlined in the proposal.
(2) An agency that receives zone revenue shall, subject to any requirement to remit revenue to the State Reinvestment Restricted Account as described in Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development Zones, allocate zone revenue to:
(a) development in the zone, including, as applicable:
(i) income targeted housing costs;
(ii) structured parking;
(iii) enhanced development costs;
(iv) horizontal construction costs;
(v) vertical construction costs;
(vi) property acquisition costs;
(vii) public infrastructure and improvements; and
(viii) realigning public infrastructure;
(b) public infrastructure and improvements in an impacted primary area, if any; and
(c) make the annual payment of principal, interest, premiums, and necessary reserves for any of the aggregate of bonds authorized under Subsection (3).
(3) An agency may issue bonds, or cause bonds to be issued, as permitted by law, to pay all or part of the costs incurred for the purposes described in Subsection (2), including the cost to issue and repay the bonds including interest and reserves.
(4) An agency may create one or more financing districts within the boundaries of the zone, and pledge and utilize zone funds to secure the payment of bonds issued by the created financing district.
(5) In addition to the purposes described in Subsection (2), an agency may use zone revenue to cover the costs of the agency to administer the zone, not to exceed:
(a) 3% of the total annual zone revenue; or
(b) if the agency provides zone revenue to an entity through a participation agreement, 3% of the total annual zone revenue retained by the agency after providing zone revenue pursuant to the terms of the participation agreement.
(6) At the request of a creating entity, an agency shall reimburse the creating entity the cost of conducting the pro forma analysis required for the proposal, as described in Section 63N-3a-202.
(7) An agency may provide zone revenue to a person according to the terms of a participation agreement or an agreement described in Section 17C-6-301.
Enacted by Chapter 373, 2026 General Session
