Special Assessment Areas

What is a Special Assessment Area (SAA)?

A Special Assessment Area (SAA) finances improvements, operations and maintenance, or economic promotion – above and beyond what the City can do.

The City manages the administrative process, but the SAA creation process is initiated by property owners or a community group. To set up an SAA, most property owners, representing at least 60% of the total property value in the area, need to agree to pay a fee to pay to fund improvements or services in their area, called a ’Self-Assessment.’

Property types eligible for assessment:

• Commercial
• Industrial
• Multifamily housing with 4 or more units

An SAA can last up to five years, but most property owners choose three years so they can adjust more often as the area changes and property values go up.

Calculating the Assessment

Property owners who propose the assessment create an estimated budget for the improvements or services. The City then offers different ways to calculate the assessment—such as by property value, lot size, frontage, or a mix of these. No more than 30% of the budget can go toward administrative costs.

What can special assessment funds be used for?

Special assessment funds can be used for one of three categories:

• Economic Promotion
  • Sponsoring festivals and markets
  • Promoting business investment or activities
  • Helping to coordinate public and private actions
  • Developing and issuing publications designed to improve economic well-being
• Improvements
  • Enhancing public infrastructure, facilities, or systems
  • Environmental remediation activities
• Operations and Maintenance
  • Any costs the city has for operating and maintaining improvements in an area
  • Includes service charges, administrative costs, and ongoing maintenance charges

Steps to Creating a Special Assessment Area

1. Letter of Interest
   • Property owners and/or community organizations submit a letter of interest to Salt Lake City’s Department of Economic Development. Letter must include a proposal for:
     • Boundaries
     • Budget
     • Services
2. Intent to Designate
   • City mails letter of intent to designate to property owners
   • Commercial property owners have 60 days to protest the creation of the area
   • City Council holds protest hearing and votes on Resolution to Designate the SAA
3. Board of Equalization
   • City mails assessment estimates and notice of Board of Equalization hearings
   • City holds three Board of Equalization hearings for property owners to request adjustments to their assessment amounts, based on the benefits they receive from the area
4. Area Approval
   • City Council adopts Assessment Ordinance
   • City mails assessment notices and invoices to property owners

Central Business Improvement Area

Salt Lake City’s oldest SAA is the Central Business Improvement Area (CBIA), established in 1991. This SAA is for economic promotion and operates in the City’s downtown core.

Services include, but are not limited to, advertising and marketing, special events and festivals, transportation, banners, holiday lighting, homeless services, security, housing, town meetings, government policy, cultural promotion, and trash pickup.