Politics & Government
Lehi tightens oversight as it approves two major development changes
Megan Wallgren | Lehi Free Press
The Lehi City Council approved two development-related actions during its recent meeting. These moves advanced long-planned projects, while adding conditions to balance residential growth, infrastructure capacity, and accountability for promised commercial elements.
The council approved the Water’s Edge Development Agreement near 1350 East Interstate Plaza Drive, focusing discussion on hotel construction timing, residential phasing, and housing mix. The project allows for 330 equivalent residential units and a planned hotel, with the hotel remaining a central, revenue-generating component.
Council debate centered on the timing of residential versus hotel construction. Developers noted that hotel projects involve more complex, longer processes, with significant investment already made by the building permit stage, thereby reducing the risk of project stoppage.
Economic development staff advised that linking new residential phases to a hotel building permit is a strong safeguard, as it requires significant developer investment and takes 18 months to two years.
Council members cautioned against micromanaging complex development timelines, noting that financing, lending, and hotel brand negotiations lie outside the city’s expertise. Still, they stressed the city must ensure the long-promised hotel is ultimately built. The agreement allows residential phases to proceed, but ties the full buildout to specific hotel milestones.
The council approved a rule requiring at least 30 percent of residential units to be for sale rather than exclusively for rent. Members noted that while the city cannot control if owners later rent their homes, the requirement preserves homeownership options and helps prevent a complete rental project. Developers said site plans with up to 100 percent more for-sale townhomes remain under consideration.
Additional conditions added to the Water’s Edge agreement include a requirement that the project return to the council, if necessary, access agreements with American Fork cannot be secured, removal of a fixed parking requirement in favor of an independent parking study subject to council approval, and inclusion of Development Review Committee and Planning Commission comments in final approvals. Following approval of the development agreement, the council denied a related general plan amendment, stating the agreement made the amendment unnecessary. Council members described the final version as an improvement over earlier proposals, better protecting the city’s long-term interests.
Later in the meeting, the council approved an amendment to the West Project Development Agreement, adding 30 residential units at 2146 West and 2198 West Stockton Lane, increasing the total from 125 to 155 units.
City staff explained the site’s history, noting that the West Project Development Agreement, approved in March 2022, has no expiration date. They stated that the agreement remains valid because it was not abandoned and that the current request is a modification to the existing deal, so no zone change or general plan amendment is required.
Staff confirmed the request is capped at 30 more units, with infrastructure now supporting up to 155 units. Future requests for higher density have been denied and will continue to be rejected.
Council noted that the property is zoned commercial but permits residential use under the agreement. Planning staff explained that the approach was to avoid nonconformity and that, after project completion, rezoning to residential use will be required.
Additional conditions are preserving trail connectivity as specified in the original agreement; allocating new units from the village overlay to maintain the unit cap; and addressing Development Review Committee and Planning Commission feedback in final approvals.
Staff highlighted the interdependence of the East-West agreements, which involve property and infrastructure exchanges. The approved amendment reduces earlier conceptual plans and was passed by majority vote.
