Lehi City Council Meeting: June 9, 2026 - Budget Adoption, Mixed Use Standards, and RDA Participation Agreement Tabled

The Lehi City Council met on June 9, 2026, for a pre-council session at 4:34 PM and a regular council meeting at 7:00 PM. The council addressed a full agenda including adoption of the FY2026-2027 budget, discussion of mixed-use standards, a traffic safety concern, a neighborhood parking complaint, and multiple items related to the Thanksgiving Point Housing Transit Reinvestment Zone (HTRZ). Key decisions included approval of the budget without a tax increase, tabling of the NICE Health Care renewal, and tabling of the RDA participation agreements for the HTRZ.

Consent Calendar

• Approved the consent agenda (minus item 4.5) unanimously. Item 4.3 (relocation of fiber lines for hospital loop road) was explained.
• Approved resolution 2026-40 adopting the electric cost of service and rate design study and amending the fee schedule for power rates (unanimous).
• Approved resolution 2026-44 for purchase of two substation transformers from Prolec GE Waukesha (unanimous).
• Approved resolution 2026-41 for a development agreement on 7.1 acres at 2424 West 900 North, allowing 13 lots in the very low density residential agricultural designation (4-1, Councilmember Stallings dissenting due to desire to retain large lots).
• Approved ordinance 2026-26 adopting elected officials compensation for FY2027 with no increase (unanimous).
• Approved resolution 2026-42 amending the FY2025-2026 budget (unanimous).
• Approved resolution 2026-38 adopting the FY2026-2027 budget and consolidated fee schedule, with a certified tax rate meaning no tax increase, and excluding the Civic Center piano rental fees until further study (unanimous).

Public Comments & Testimony

• Jared Franklin (resident) described a traffic accident involving his 11-year-old son at 900 North and 300 West, near Bandwagon Park. He requested a four-way stop or flashing indicators, citing speeding and blind spots. He noted the car was going only 28 mph per police report. His son broke a collarbone but is recovering.
• Kirk Wright (neighbor) and several others (Ryan Hill, Tyler Anderson, Chris Ogden, Troy Sheffield, Chad Ogden) from the area near 3200 North and 1200 West complained about overflow parking from nearby businesses (especially the Fabian house) into their residential streets. They reported 39 non-residential cars parked on their street, illegal U-turns, and safety hazards. They requested enforcement of existing parking codes or establishment of a permit-only parking zone. Tyler Anderson noted the Fabian house has 7,000 sq ft but only 15 parking stalls, whereas code requires 24 stalls per 300 sq ft. The neighbors presented a petition signed by all affected residents.
• Terry Bishop (petitioner) spoke in support of the development agreement at 2424 West 900 North, noting that all requirements have been fulfilled.

Discussion Items

• Mixed Use Standards (Chapter 38): Community Development Director Kim presented updated mixed-use standards. Key changes: emphasizing commercial as primary use with residential secondary; requiring at least 30% of housing be for-sale (townhomes/condos); increasing retail requirement to 50% (up from 10%); requiring commercial certificate of occupancy before residential; designating city council as land use authority for mixed-use projects. Councilmember Lockhart noted the 30% figure differs from the 20% mentioned in the HTRZ application. Councilmember Newell raised concerns about the "interim occupancy" provision allowing residential use of commercial space, and suggested a 10-year time limit. The item was for discussion only; a revised draft will go to the Development Review Committee.
• NICE Health Care Annual Renewal (Item 4.5): Councilmember Freeman opposed renewal, arguing the concierge service is redundant with existing health benefits, misleading as preventive care, and expensive ($355 per visit based on 126 visits in Q1 and $179,000 annual cost). She stated it is "bad medicine" and not a good use of taxpayer money. Staff (Andy) noted the service saw 13% utilization in Q1 and that it saves the city approximately $288,000 annually in reduced PEHP premiums and avoided claims. Councilmember Lockhart and others preferred to table for more information. After a failed motion to deny (2-3), a motion to table passed (4-1) with direction to staff to ask for a 30-day extension and gather more information.
• HTRZ Participation Agreements (RDA Items 2.1, 2.2, 2.3): Ryan Thomas (Stack Real Estate) presented the agreements for the Thanksgiving Point HTRZ, noting that the project has been negotiated for six months and the constraints are at the limit of what the project can bear. Councilmember Newell expressed concerns about traffic on Triumph Boulevard, which is projected to fail by 2033, and the lack of a concrete solution beyond studying it. Councilmember Harrison requested additional terms, including a cap on HTRZ funds per project, a proportional allocation of tax increment, and incentives for non-residential development. He proposed tabling to hire outside counsel. Councilmember Lockhart opposed tabling, arguing it reflects bad faith negotiation. The motion to table the three RDA items passed (4-1, Lockhart dissenting). The interlocal agreement (item 5.5) was also tabled with the same vote.
• Budget Adoption (FY2026-2027): Extensive discussion on the fee schedule, specifically the piano rental fees. Councilmember Newell questioned the $250 fee to move the piano into the community room, stating that pianos do not need to be tuned every time they are moved and that the cost would be prohibitive for community use. Staff agreed to not charge the piano rental fees until the matter is further studied. The budget was adopted with an amendment to exclude those fees. The budget avoids a tax increase, includes a 4% employee wage increase, and funds additional positions including firefighters, police, and water leak detection staff.

Key Outcomes

• Consent Calendar approved (unanimous, minus 4.5).
• NICE Health Care Renewal tabled (4-1) to gather more information and seek a 30-day extension.
• Electric Rate Study adopted (unanimous).
• Substation Transformers purchase approved (unanimous).
• Development Agreement at 2424 West 900 North approved (4-1).
• Elected Officials Compensation set at no increase (unanimous).
• Budget Amendment for FY2025-2026 approved (unanimous).
• FY2026-2027 Budget adopted with certified tax rate (no tax increase) and exclusion of piano rental fees (unanimous).
• HTRZ Participation Agreements and Interlocal Agreement tabled (4-1) to allow the council to hire outside counsel and renegotiate terms.
• Mixed Use Standards will be revised and sent to DRC for formal action after further input.