The Highlands is a community of hundreds of homes planned near the Utah Valley University Wasatch campus, north of downtown Heber.
Construction began in fall 2024, and developers hope to finish building by spring 2028.
To help the project along, developers are asking Heber City leaders to allow them to create three public infrastructure districts, or PIDs. The PIDs would be able to issue bonds to pay for things like roads, utilities, parks and 67 affordable housing units.
At a meeting June 16, they estimated infrastructure costs will be $40 million.
If approved, the PIDs’ debt would be repaid by property owners who buy homes within the Highlands.
Councilmember Yvonne Barney saidif the PIDs aren’t allowed, the developers estimate each home will be tens of thousands of dollars more expensive. With the PIDs, the base price of the home could be lower, but buyers would need to pay extra fees.
“They feel that with the PID, it will decrease the overall amount for each of those units by $40,000,” she said on KPCW’s “Local News Hour” June 17. “Their presentation was that in using the PID, it will help them to keep those homes attainable and also enable them to put in strong infrastructure for their community.”
Barney said she’s aware of some of the concerns about using PIDs to spur development in Utah.
“There’s been the concern with the failed community in Coalville, and we also know that the Utah State Auditor’s Office has been extremely loud, if you will, when it comes to their disapproval of the PID system,” she said.
Barney said PIDs don’t allow for good government oversight and, in the case of Summit County’s Wohali, the project’s failure has led to lengthy legal battles.
Barney is encouraging caution with the Highlands application.
“For me, I just am not sure that this is a good way to go,” she said.
Other councilmembers were more supportive, like Sid Ostergaard.
“We have already two that we’ve approved,” he said at the meeting June 16. “Most [recently] is Harvest Village, or the Slope, so I’m for it. It adds benefit, and it adds value to be able to get stuff, and this missing middle, affordable housing product out there sooner than later.”
The PIDs don’t have council approval yet, but another discussion is set for July 7.
Mayor Heidi Franco asked the developers to come back with more detailed cost estimates. She worried the lower home prices might not outweigh the added PID fees.
“We need real numbers,” she said. “Even the discount that they get up front is not going to last through their mortgage, and it is going to be very expensive for median range income, or even our affordable units that you're talking about, to be able to pay those property taxes.”
Councilmembers also asked to see park and trail designs and other potential public benefits.
The city annexed the land for the Highlands in December 2021.
Heber City is a financial supporter of KPCW.
