Orem council rezones Geneva Road site with development agreement and sets direction on impact fees at 58% to 75% of maximum
January 27, 2026, 3:00 p.m. · 56 North State Street, Orem
The Orem City Council unanimously rezoned 4.43 acres on Geneva Road from OS-5 to C-2 with a development agreement limiting uses. After a public hearing with no comment, it told staff to draft impact fees starting at 58% of the calculated maximum and rising to 75% over five years. At the work session, members discussed short-term rental rules and a downtown 'HeArt of Orem' design plan.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
| Item | Result |
|---|---|
| Short-term rentals discussion | Discussed |
| HeArt of Downtown plan presentation | Discussed |
| Boards and commissions appointment process | Discussed |
| Consent: advisory commission appointments | Approved · 6-0 |
| Rezone approximately 4.43 acres at 1738 South Geneva Road from OS-5 to C-2 with development agreement (Johnson Farm) | Approved · 6-0 |
| Public hearing: impact fees | No action |
Agenda, item by item
City code
Short-term rentals discussion
Discussed
Deputy City Manager Jacob Summers said short-term rentals are not a permitted use in Orem's residential zones, though recent state law (House Bill 256) lets cities license and regulate them. A working draft would create two tiers favoring owner-occupied units, ban large events, and set maintenance standards. The Neighborhood Advisory Commission was split: a majority recommended keeping the prohibition (71% strongly opposed allowing rentals, 64% favored the ban) while a minority urged legalization and regulation, noting 10 to 15 complaints against about 250 active rentals in two years. Staff said the city collects about $220,000 in transient room tax, 65-70% from Airbnb and VRBO. Council Members Millett and Lambson favored deciding on existing information rather than a new poll; Gale wanted to hear from Orem resident operators who obtained licenses in good faith; Muhlestein asked about enforcement costs and housing prices; Mecham asked for early feedback to gauge agreement. Staff will assemble prior emails and testimony.
General plan
HeArt of Downtown plan presentation
Discussed
Design Local presented a 15-to-20-year plan for the central district with a year-round 'Ice Ribbon' skating path, a two-story community lodge with a 250-person event space, a 15-foot build-to line on State Street, a festival street on 720 South, two parking garages with a net gain of 547 spaces, and projected revenue of $38 million over 20 years from ticketing, concessions and rentals. Funding would draw on property and sales tax, ground leases and naming rights. The council asked for a drop-off court near the SCERA Shell, evaluation of moving a small stage farther north, and a merry-go-round.
- Budget$38.0 million
Other
Boards and commissions appointment process
Discussed
Mayor McCandless asked for a transition policy for pending reappointments after confusion over Transportation Advisory Commission terms. Council members suggested a hand-off between outgoing and new liaisons, strict enforcement of two-term limits, and training on the new board portal. The city manager acknowledged data errors on the commissions website.
Item 9 · Appointment
Consent: advisory commission appointments
Approved · 6-0
The council approved the Library Advisory Commission reappointment of Katrina Brittner, appointments of Todd Covington and Tonia Doussett and reappointments of Jay Przybyla, Laura Reford and CJ Mecham to the Transportation Advisory Commission, and the Events Advisory Commission appointment of Madisen MacArthur, along with minutes.
Zoning
Rezone approximately 4.43 acres at 1738 South Geneva Road from OS-5 to C-2 with development agreement (Johnson Farm)
Approved · 6-0
Planning Manager Jared Hall said the Planning Commission recommended approval tied to a development agreement that prohibits 17 C-2 uses and bars operations before 5:00 a.m.; existing noise rules still apply. The applicant's representative said the 'Johnson Farm' flex retail project will have farm-themed architecture and limited access from old Geneva Road, coordinated with UDOT. A Utah County resident raised drainage, Lake Bottom Irrigation Company and Taylor Drain concerns and urged a master plan instead of spot zoning. Hall said the rezone is a first step and drainage is reviewed at site plan; the future land use map already designates the site commercial. Council Member Millett confirmed the developer bears drainage costs and that the agreement bars uses such as auto sales.
- Acres: about 4.43
- Current zone to proposed: OS-5 to C-2 with development agreement
- Applicant representative: Mr. Dudley
Taxes and fees
Public hearing: impact fees
No action
Assistant City Manager Ryan Clark and consultant Fred Philpot outlined options: the calculated maximum, about 58% of the maximum (regional average), or a 'surgical' approach reducing parks fees and removing buy-in components. No one spoke at the hearing. Council Members Mecham and Lambson favored at least the regional average with periodic escalation; Millett and Killpack said fees should not exceed 75% of the maximum; Muhlestein preferred the simpler percentage approach; Gale supported the lower option given the city is largely built out. Consensus direction to staff: start at 58% of the maximum and escalate to a ceiling of 75% over five years, roughly 7% a year compounding. Staff will draft an ordinance with year-by-year schedules.
What residents said
Short-term rental legality and enforcementDrainage at Geneva Road siteImpact fees and housing affordabilityParking in downtown plan
Several short-term rental operators and a former city official said they had acted in good faith on city permits and fees, objected to being called illegal operators and urged regulation rather than a ban. A resident asked the council to advocate for student free speech at Utah Valley University. A theater spoke about a spotlight week for Orem and a resident discount code. Another resident asked the council to revive the 'big clock' naming contest. One resident criticized the administration's direction and urged a focus on taxes and public safety. At the Geneva Road hearing, a nearby Utah County resident raised drainage and master planning concerns; no one spoke on impact fees.