The Council approved a resolution of intention to create a Special Assessment Area (SAA) to fund economic promotion activities for the Sugar House commercial area. This resolution will not create the SAA, only declares the City’s intention to create one. This one of the first steps of a lengthy and complex process to create a Special Assessment Area (SAA).
What is a Special Assessment Area?
A Special Assessment Area (SAA) is a financing tool that allows property owners in a defined area to collectively pay for improvements, operations and maintenance, or economic promotion that benefits the area.
The Proposed Sugar House SAA
In 2021, the Sugar House Chamber & Community Alliance (SHC) requested the creation of a special assessment area for the Sugar House Area. The city’s Department of Economic Development developed three assessment scenarios, all with the same boundary.
The SHC reviewed each and preferred Scenario 3 as the most sufficient to operate the area while remaining acceptable to property owners. The proposed SAA is projected to raise $1,697,640 over the area’s proposed three-year period.
The proposal also includes a second assessment that would apply to properties with frontage on certain streets for specialty lighting and signage. $13/linear foot along 2100 South, Highland Drive, and 1100 East for year-round specialty lighting. If future road construction disrupts lighting, funds may also support temporary business signage.
What else should I know?
- If owners representing 40% or more of the total assessed value object, the SAA cannot be created.
- Residential, ecclesiastical, government-owned properties, and any property valued under $20,000 are exempt (unless the owner volunteers to participate).
- No more than 30% of funds can be spent on administrative costs.
- Properties left out at the start cannot be added later without owner consent.
- Multifamily housing with five or more units is eligible to be assessed and included in an SAA. However, it was decided not to include these properties due to sensitivity to housing costs. They could be considered in future assessment authorizations after the initial three-year term.
Timeline
Creating an SAA is governed by Utah’s Assessment Area Act and involves multiple Council actions, public notices, and hearings. Below are the key milestones. Read the full detailed timeline here.
| Council Briefing | May 28, 2026 |
| Council Vote on the on the Resolution of Intent to Designate the assessment area. | June 9, 2026 Council approved a resolution declaring intent to create the SHBD-27. This does not create the SAA but starts the process. |
| Protest Hearing | August 18, 2026 Property owners may appear and file written objections. Learn how to participate at this meeting by visiting our meeting page. |
| Council Announces Protest tally | ~Mid-October 2026 Council reports the outcome of the protest period and determines whether the process can continue. If owners representing 40% or more of assessed valuation protest, the SAA cannot move forward. |
| Council Votes on the Resolution to Designate the assessment area. | ~Mid-October, 2026 If the 40% is not reached, the Council votes on the resolution to formally designate the assessment area. The Council will also appoint a Board of Equalization. |
| Council Votes on the Assessment ordinance | ~February 2027 The Council votes to adopt the final assessment ordinance. The SHBD-27 is created and the SAA becomes active through 2030. |
Meeting Recap
June 9: Council Approves Resolution of Intention
The Council approved a resolution of intention to designate an assessment area for economic promotion activities in Sugar House over a three-year period. This resolution will not create the SAA, only declares the City’s intention to create one.
May 28: Briefing
Economic Development staff presented the Council with an overview of the proposal. They discussed similarities to the Downtown SAA and future possibility of including multifamily housing to SAAs.
Resources
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