July 26, 2012

On April 18, 2012, the Utah Valley Homebuilders Association filed a class action lawsuit against the City of Cedar Hills regarding the collection and use of recreation and other impact fees. The lawsuit alleges, among other things, that impact fees collected from developers were not expended or encumbered within six years as required by Utah Code, that the recreation center built is not the specific facility type for which the fee was collected, and that impact fees should not have been collected for a recreation center, as the City did not previously have a recreation center, and impact fees cannot be used to raise the level of service that a community enjoys. The Association is seeking a refund of certain impact fees paid by developers and an injunction preventing the City from assessing any additional impact fees in the future.

This type of lawsuit is not unique to the City of Cedar Hills. The Utah Valley Homebuilders Association has filed class action lawsuits against several other Utah cities for similar complaints with regards to the collection and use of impact fees.

Because this is an open lawsuit the City cannot provide additional information at this time. However, the City Council is working with legal counsel and will provide residents an update when feasible. Questions or concerns regarding the lawsuit can be addressed to Mayor Gygi at ggygi@cedarhills.org, to Councilmember Jenney Rees at jrees@cedarhills.org, or to Acting City Manager David Bunker at dbunker@cedarhills.org.