RESPONSIBLE CITY AGENCY: Purchasing & Property Management Division
KEYWORDS: Encroachment, right-of-way, street, highway, sidewalk, fee, interest rate, public property.
1. General
1.1 All requests for public Right-Of-Way encroachment shall be initiated with the Department of Community and Economic Development and will be reviewed by the Property Management section for appropriate action.
1.2 The City will review proposed encroachments on the public right-of-way to ensure they would be consistent with the City’s zoning requirements and master plan, and that they would not interfere with the operation and maintenance of the City’s transportation corridors, public utilities, or other current or future uses of the right-of-way.
1.3 The City will seek the highest economic return, based on fair market value, for all commercial encroachments on the public right-of-way.
1.4 Definitions
A. Public right-of-way: Land or property, usually in a strip, including all land up to and abutting privately owned land on either side of the transportation corridor. Unless otherwise determined, the City has appropriate legal interests in the public right-of-way to grant or permit encroachment and issue appropriate documents for private or other public use of such land.
B. Encroachment: A physical improvement located under, upon, or above a street, highway, or other public right-of-way.
C. Commercial encroachment: An encroachment within the public right-of-way which contributes to or supports a commercial venture. Encroachments by properties with five or more units and/or which require a business license for normal operation are considered commercial encroachments.
2. Annual Fees
2.1 The Purchasing and Property Management Division will determine reasonable and necessary fees for encroachments on the public right-of-way. Such fees will reflect the size of the encroachment, surface, subsurface, or aerial use, as well as market interest rates.
2.2 The market value for the area of encroachment shall be determined by using the appraised value of the abutting property. The right-of-way shall have the same utility value as that of the abutting property.
2.3 The City may waive the appraisal requirement when the value of the encroachment area has been determined to be less than the cost of appraising the property. In such cases the Salt Lake County assessment or other comparable values may be applied, if the values are within the market value for the general geographic area.
2.4 The market rate of interest will be established annually by the Purchasing and Property Management Division.
2.5 The City reserves the right to increase or decrease the annual fee for encroachments on the public right-of-way. Fee increases or decreases will be applied to new encroachment permits and existing permits as they are renewed.
2.6 If an encroachment is made under, on, or over a public right-of-way without first having obtained a written agreement, an assessment equal to the first year’s lease payment shall be required in addition to the annual payment, prior to the issuance of a subsequent written agreement.
3. Franchises
3.1 Any company paying franchise taxes to the City shall not be required to pay additional annual fees for encroachments within the parameters of the franchise agreement.
3.2 Encroachments by such companies outsde of franchise agreements shall be handled in separate written agreements and shall be subject to:
A. The provisions of Section 2 of this policy; or,
B. Fees based on a percentage of gross receipts.
CURRENT REFERENCES: Property Management procedures
PRE-1995 REFERENCES: City policy 3.10.200
3.10.200-1
3.10.300
EFFECTIVE DATE: October 1, 1995
DATE APPROVED BY CABINET: September 6, 1995