Residents in Wasatch County, Utah, are voicing frustration after the governor's housing adviser warned that a rejected development could put millions of dollars in county road money in jeopardy.
Here's what to know
According to Utah News Dispatch, the dispute between Wasatch County and Utah Governor Spencer Cox's administration began at an August 18 Heber City Council meeting after the county rejected a proposed 144-lot housing development on state-owned land near Heber City.
In August, Steve Waldrip, Cox's senior adviser for housing strategy, told the Heber City Council that the county's state funding was at risk because of its development decisions and its opposition to a state law creating new municipalities. Waldrip said the governor could stop state funding to counties that, in his words, were "working against the state on growth issues."
During the meeting, Heber City Council member Yvonne Barney told Waldrip that "citizens are scared and concerned and looking at the situation … as 'Wow, we have no say.'"
Wasatch County receives approximately $2.1 million annually in state B and C road funds, which are distributed to counties for transportation needs.
The comments sparked concern among county officials and residents, who questioned whether state funding was being used to pressure the county over local development decisions.
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More background
County leaders said the rejected project was not the kind of affordable or workforce housing Utah most needs. Wasatch County Manager Dustin Grabau said, "There was a private, gated community proposed that the County Council felt like this did not align with our general plan or our general community values."
Philo Development is also pursuing development of roughly 3,500 acres of privately owned land nearby. The company has applied to create a new community called Wasatch Highlands under Senate Bill 258 — a 2024 law that established a pilot program allowing up to three landowners in certain rural areas to apply to create a preliminary municipality.
Wasatch County officials oppose SB 258 and argue the law could allow developers to bypass some local land-use authority. The county has been working with other counties, including Summit County, to seek changes or repeal of the law.
State officials, meanwhile, have emphasized Utah's need for more housing. The state has faced rising housing costs and a shortage of available homes, and the Cox administration has pushed local governments to increase housing development.
County officials say they support efforts to address housing needs but want local communities to have a meaningful role in deciding where and how development occurs. They have also questioned whether the rejected 144-lot proposal would have provided the type of affordable housing Utah needs, since each proposed lot was five acres.
What's being done?
The situation has since cooled. State and county leaders tried to ease tensions after the public outcry.
In a social media post following an August 28 meeting, county officials said, "They acknowledged their initial approach in response to our decisions was not the most constructive path forward and confirmed there will be no negative impacts to state funding in Wasatch County."
County officials also met with representatives from the governor's office, and both sides said they want to work together on housing and development issues.
According to Utah News Dispatch, Grabau said Wasatch County still wants to be part of the solution to Utah's housing shortage but with options that better fit local circumstances. He said officials are open to alternatives for the Utah Trust Lands Administration-owned property, including a land swap for a location better suited to affordable housing.
Residents are still seeking an explanation for how the funding threat arose, even as county leaders approved a resolution urging repeal of SB 258 because they say it lets developers bypass normal oversight.
Where can I learn more?
For more stories on similar disputes, here are a few that follow clashes over local control, land use, and transportation.
• Residents in Alaska warned a controversial road project could upend subsistence and community life.
• In Colorado, officials adopted a controversial rule that made highway expansion much harder statewide.
• In Arkansas, a new housing development stirred outrage as neighbors questioned local priorities.
• In Wisconsin, a developer retreated after locals opposed a data center they said threatened Greenleaf.
• In Indonesia, residents warned millions of protected forest acres could be converted under government plans.
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