Utah House Speaker Mike Schultz, who represents Hooper, has indicated he is open to repealing or significantly altering a state law that allows landowners to create new preliminary municipalities. Schultz, a Republican, told Utah News Dispatch on Monday that he supports addressing issues with Senate Bill 258 (SB258), which passed in 2024, and anticipates discussions on its repeal or substantial changes during the legislative session set to begin in January.
“A full repeal should be part of the conversation,” Schultz stated, noting that he has worked in residential and commercial real estate and owned development companies. He added that lawmakers will be open to all options, including a complete repeal.
Governor Spencer Cox, responding to inquiries, issued a prepared statement Monday expressing his openness to changes in SB258. Cox stated his commitment to ensuring housing affordability for future generations in Utah and exploring all options to achieve this goal.
SB258 created a pilot program allowing up to three landowners in mostly undeveloped, unincorporated areas to petition to establish a “preliminary municipality.” Wasatch County leaders described this as a step toward eventual full incorporation. However, Wasatch County leaders formally approved a resolution last month calling for the law's repeal, asserting that it enables developers to "entitle large-scale projects while sidestepping the infrastructure, housing, oversight and accountability standards every other community in Utah must meet.” They further criticized the law for setting a comparatively low bar for feasibility studies and granting substantial development authority well before a community has residents, a tax base, or the capacity to deliver services.
Outcry over SB258 has been particularly strong in Wasatch and Summit counties. The controversy intensified recently after Steve Waldrip, Governor Cox’s senior housing adviser, reportedly threatened to withhold state road funding from Wasatch County. This occurred following the county’s rejection of a 144-lot proposal approximately six miles east of Heber. Philo Development partner Greg Whitehead told local radio station KPCW that it “sounds like we’re getting some retaliation” for considering a preliminary municipality under SB258, feeling punished and unwelcome in Wasatch County.
Wasatch County Manager Dustin Grabau told Utah News Dispatch last month that Waldrip’s comments appeared to be a reaction to an "untrue rumor" that the county might collude with others to defy state law regarding preliminary municipalities. While the threat to withhold state funding has since been dropped after meetings with Wasatch County leaders, and state and local officials now report working together, some Wasatch Back residents remain frustrated with the governor’s initial tactics. Local leaders continue to push for the law’s repeal.
The law has also become a prominent campaign issue in the House District 59 race, with both Democrat Celeste Johnson and Republican Luke Searle opposing the measure, as reported by The Park Record earlier this month.
Speaker Schultz noted that the Utah House had unanimously approved HB510 earlier this year, a bill intended to impose more requirements on preliminary municipalities. However, that bill failed in the Senate on a narrow 14-12 vote during the final night of the 45-day session. Schultz stated he has been speaking with candidates like Searle and listening to growing concerns, which he believes became more widespread after Waldrip’s comments.
Schultz indicated that the House had previously supported modifications, believing the proper balance hadn't been struck. Now, with the issue having "blown up to the extent that it has," he questions whether a full repeal and a fresh start are necessary. These options are currently on the table. Schultz added that, until recently, lawmakers didn't fully grasp the extent of the pushback within Wasatch County on this specific issue.
While the next Senate Republican leadership is unknown following the primary loss of longtime Senate President Stuart Adams (R-Layton), Schultz has been in discussions with senators who hold various positions on the matter. Some senators are open to a full repeal, while others favor modifications. Schultz believes most recognize the need for changes, with the question remaining whether that means a full repeal or adjustments.
Lawmakers have aimed to balance local planning authority with the need to increase affordable housing across Utah. However, Schultz observed that the Philo Development proposal and the preliminary municipality law did not seem to advance the goal of affordable housing, given the “very large lots, very expensive homes” involved, which have upset residents.
Regarding Waldrip’s comments and the funding threat, Schultz commented that "everybody makes mistakes" and appreciated Waldrip and the governor acknowledging a different approach might have yielded a better outcome. Waldrip himself acknowledged on ABC4’s Inside Utah Politics that they took the wrong approach, but stated that productive conversations are now underway. The issue has also spurred a broader debate about top-down development pressures from state leaders and the role of entities like the Military Installation Development Authority (MIDA), which has been involved in projects like the Stratos data center in Box Elder County and a major Deer Valley resort development in Summit County. Schultz stressed that local authorities must approve MIDA project areas and emphasized the need for state and local officials to collaborate in providing housing opportunities, rather than taking a "top-down, heavy-handed approach."
Utah's housing market remains one of the most expensive in the U.S., with 91% of renters reportedly priced out.
