Lawsuit seeks to reverse actions by Utah Inland Port Authority

The Utah Inland Port Authority (UIPA) is the target of a lawsuit filed by environmental groups seeking to reverse decisions by its board since state lawmakers restructured its leadership in 2022 after the agency’s only bond issuance.

The litigation, filed in Salt Lake County District Court Thursday against the authority, as well as Utah Gov. Spencer Cox and legislative leaders, claims that while the authority functions as an executive agency, it is directly controlled by Utah lawmakers in violation of the state’s constitutionally mandated separation of powers.

A state law that took effect in March 2022 shrank the port authority board’s voting members from 11 to five, eliminating appointments by local officials and allowing two appointments by the governor, one each by the state House and Senate, and one jointly by the two chambers.   

“The end result of this unconstitutional law has been the Utah Inland Port Authority flouting their statutory obligations to prioritize environmental and public health protection,” Dr. Brian Moench, president of plaintiff Utah Physicians for a Healthy Environment, said in a statement.

Deeda Seed, a senior campaigner at the Center for Biological Diversity, also a plaintiff, said the lawsuit aims to reverse the authority’s “disastrous record of using public money to fast-track massive industrial development that’s accelerating the collapse of the Great Salt Lake ecosystem.”

The board “unconstitutionally” formed 10 project areas since 2022 that jeopardize “sensitive ecosystems, public health and safety, public recreational and aesthetic enjoyment, and the property values and quality of life for local homeowners,” according to the lawsuit.

Board actions targeted by the lawsuit do not involve any bond issuances, UIPA Executive Director Ben Hart told The Bond Buyer Friday. 

Its only outstanding debt issue — $150 million of unrated UIPA Crossroads Public Infrastructure District tax differential revenue bonds — was sold in December 2021 to finance an intermodal transportation center in Salt Lake City despite environmental protests and a since-settled lawsuit by the city that raised constitutional concerns related to the authority’s use of tax increment financing.

Hart said UIPA, which retooled its image and approach to economic development last year, will be reviewing the latest litigation.

“About the environmental aspect, we believe strongly we’ve got a very good record when it comes to protecting the Great Salt Lake and the wetlands, so I think we can absolutely demonstrate that with policy, money, other decisions that have been made to proactively protect wetlands,” he said. 

Hart added the lawsuit will not deter UIPA from moving forward with port developments, noting that project areas in Tooele County and Spanish Fork could lead to bond issuance in 12 to 18 months. 

Spokespersons for the governor and legislative leaders did not immediately respond to requests for comment on the lawsuit.