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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Jon Larsen, Chief Capital Services Officer |
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PRESENTER(S): |
Jared Scarbrough, Director of Capital Design and Construction |
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Paul Drake, Director of Real Estate and TOD |
TITLE:
title
R2026-02-05 - Resolution Accepting the Conveyance of Real Property Interests Associated with the Sharp/Tintic Connection Project
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2026-02-05 to accept ownership of property acquired by the Utah Department of Transportation (UDOT) for the Sharp/Tintic Connection Project, subject to certain parameters.
BACKGROUND:
The Sharp/Tintic Connection project will construct a section of the future FrontRunner alignment to connect the Sharp Subdivision to the Tintic Industrial Lead. This will connect property owned by UTA in the Sharp alignment and the Tintic alignment. The work includes new track within the cities of Springville and Spanish Fork. This connection allows over two miles of active freight traffic on the Tintic line to be closed. The project will eliminate seven existing crossings and simplify construction of a grade-separated crossing of the Sharp Line, to be built by the Springville/Spanish Fork Interchange project. Additionally, the project connects UTA-owned rail corridors, enabling FrontRunner to be extended to Payson in the future.
UDOT and UTA have assigned the following identifiers to the project:
• Sharp/Tintic Connection: (UDOT) PIN 14988_Project No. F-LC49(169); (UTA) MSP215
Pursuant to the agreement approved by the Board of Trustees on May 22, 2024 titled HB 322 Fund Transfers and Work Designation Agreement Between Utah Department of Transportation and Utah Transit Authority (UTA Contract 24-P00350), the management of the Sharp/Tintic Connection project was transferred to UDOT. The project is advancing through design, and the environmental documentation was recently completed. UDOT is preparing to acquire the needed right of way.
DISCUSSION:
UTA and UDOT recommend that parcels for the Sharp/Tintic Connection be purchased directly in UTA’s name to avoid duplicating cost, time, effort, and documentation. It also ensures that UTA receives the properties in a timely manner and is covered under title insurance. That process also simplifies ownership, access rights, and maintenance responsibilities.
Consolidating the corridor properties in UTA’s name enhances property management efficiency and streamlines environmental and reporting responsibilities.
In accordance with UTA Board of Trustees Policy No. 5.2 (III.A.1.a), Board approval is required for all real property transactions with an aggregate value of $250,000 or more. Additionally, under the recently enacted Utah Code § 57-1-48, a public entity must sign an affidavit accepting ownership at the time the property is recorded in its name.
To satisfy these requirements and authorize UTA staff to accept ownership of the Sharp/Tintic properties purchased on behalf of UTA, we are seeking UTA Board approval of the attached resolution, subject to the following parameters:
1. The Resolution will have an expiration date of December 31, 2030.
2. UTA staff will confirm that UDOT has performed the necessary environmental testing and clearances on each parcel before acceptance.
3. Individual parcels valued at $1,000,000 or greater will still require separate UTA Board approval.
4. UTA staff will provide a quarterly written report to the Board of Trustees in a public meeting detailing the number, land size, location, and value of properties accepted under UTA ownership during the previous quarter.
ALTERNATIVES:
UDOT could purchase the property in its name and then transfer it to UTA later. However, this would be a more cumbersome process.
FISCAL IMPACT:
UDOT is acquiring the right-of-way for the Sharp/Tintic Connection on UTA’s behalf using UDOT project funds, and as such UTA will not contribute any capital funding toward the purchase of the property. Following the construction of the new rail connection, UTA will assume the maintenance obligations, which are expected to be minimal and will be incorporated into the maintenance support team’s annual operating budget.
ATTACHMENTS:
• Resolution R2026-02-05 including Exhibit - Sample Deed to UTA and Sample Affidavit Accepting Land Ownership