Last month, Utah Governor Spencer Cox’s senior housing adviser, Steve Waldrip, indicated that state funding for Wasatch County was at risk during a Heber City Council meeting. Waldrip delivered a message, which he stated was intended for a “target audience” beyond the council, after Wasatch County leaders reportedly rejected a proposal for 144 homes on Utah Trust Lands Administration property, located about six miles east of the heart of Heber.
Waldrip’s message came as state leaders, including the governor, have urged for increased housing construction across Utah to address the state's yearslong housing shortage and high prices. Waldrip characterized Wasatch County's rejection of the 144-unit development as sending a message of not caring. He further stated that news reports had highlighted Wasatch County working with Summit County to oppose state law regarding development, which he saw as an attempt to deny preliminary municipalities allowed under a new state law.
The state law, SB258, approved in 2024, created a “preliminary municipality” pilot program, allowing up to three landowners to apply to create their own municipality. Philo Development, the developer of the 144-lot proposal, has also been pursuing the creation of a new town, Wasatch Highlands, on approximately 3,500 acres of privately owned land near the trust lands property under SB258.
Philo partner Greg Whitehead expressed frustration after the rejection of their 144-lot proposal, which would have included five-acre lots. Whitehead told KPCW that he perceived the rejection as retaliation for considering a preliminary municipality under SB258, stating that it sounded as if they were unwelcome to develop in Wasatch County for doing so.
Wasatch County leaders have openly opposed SB258, characterizing it as a problematic development practice that allows developers to bypass local land use authority. Wasatch County Manager Dustin Grabau told KPCW that county leaders were planning a resolution to ask the Legislature to repeal or change SB258 and were seeking support from other counties, including Summit, Morgan, and Grand.
During the August 18 Heber City Council meeting, Waldrip conveyed a message from the governor, stating that Wasatch County’s “funding as a county is now at risk.” He warned that state funds, including the approximately $2.1 million in annual B and C road funds, could be suspended for counties that aggressively oppose the state on growth issues without thoughtful discussion. Waldrip asserted that he would use anything within his power to stop such funding.
The message was not well received by Heber City Council members or residents across Wasatch County. Heber City Council member Yvonne Barney told Waldrip that using the tactic of threats to the community does not go over well, urging for more dialogue and acknowledging that citizens felt they had no say. Residents reportedly sent emails to Utah News Dispatch expressing frustration and demanding answers.
In the weeks following Waldrip's comments, Wasatch County leaders and the governor’s office engaged in discussions. Wasatch County officials posted on social media on August 28 that Wasatch County Council Chair Erik Rowland and County Manager Grabau met with governor’s office staff, including Waldrip. The county's post described the conversation as “productive,” stating that both parties wanted the same outcomes. The county officials reported that the governor's office acknowledged that their initial approach in response to the county's decisions was not the most constructive, and confirmed there would be no negative impacts to state funding in Wasatch County.
In a prepared statement, Waldrip affirmed a commitment to partnership, saying he was grateful they were moving forward in partnership with Wasatch County to find the right solution for the Trust Lands Administration property. He emphasized the importance of building more housing choices to address affordability. The governor’s office declined interview requests regarding Waldrip's comments and whether the governor directed them.
County Manager Grabau later told Utah News Dispatch that Waldrip’s initial comments seemed to be a reaction to an “untrue rumor” that Wasatch County intended to collaborate with other counties to defy state law related to preliminary municipalities. Grabau noted that the follow-up meeting was cordial, and they were able to correct this, averting any real consequences regarding state funding.
Grabau confirmed that Wasatch County would continue to lobby for the repeal of the preliminary municipality bill. Earlier this month, the council approved a resolution calling on the Legislature to repeal SB258. The resolution includes a report detailing concerns that the law enables developers to entitle large-scale projects while bypassing the infrastructure, housing, oversight, and accountability standards required of other communities in Utah.
Grabau also addressed what he called “misconceptions” that the Philo Development project would help increase affordable housing. He stated that the proposed 144 five-acre lots would not be affordable housing and that the County Council felt the proposed private, gated community did not align with their general plan or their general community values, leading to its rejection. Grabau maintained that Wasatch County leaders are committed to helping solve the state’s housing issues and are open to “creative solutions” for the Trust Land Administration property, such as a land swap for more suitable affordable housing development.
Wasatch County officials reacted to Waldrip’s comments with “confusion,” understanding the full context of their stance, while residents reacted with “outrage,” viewing it as an inappropriate pressure tactic.
