The Provo Municipal Council approved several ordinances on Oct. 20, 2026, that rezone property near the Provo Towne Centre from commercial and residential uses to an interim transit-oriented development zone. The decision, which affects the Franklin South and East Bay neighborhoods, marks a significant shift in land use for the area near 1095 South 500 West and 1200 South Towne Centre Boulevard.
Zoning and Land Use Changes
The ordinances passed by the council on Oct. 20, 2026, include Ordinance 2026-36 and Ordinance 2026-38. These measures amend the general plan map designation and the zone map classification for real property located at 1095 South 500 West and 1200 South Towne Centre Boulevard. Specifically, the property is being transitioned from its previous designations of commercial (C), residential manufactured home park (RM), and regional shopping center (SC3) to the interim transit-oriented development (ITOD) zone.
New Development Standards
According to the Provo Municipal Council, the new ITOD zone designation applies citywide regarding permitted uses and development standards. In addition to the rezoning, the council approved Ordinance 2026-35, which prohibits the use of property that has been officially declared unfit or unsafe. The council also approved Ordinance 2026-37, which amends the Provo City Code to address development standards and permitted uses specifically within the interim transit-oriented development zone.
Provo Towne Centre Context
The rezoning area encompasses the Provo Towne Centre, a 664,597 square-foot mall. The facility, which was acquired by Brixton Capital Properties in Jan. 2016, is anchored by several major retailers, including Target, JC Penney, Cinemark, and Dillards. The mall is located within the "Silicon Slopes" region, an area characterized by a high concentration of software development, hardware manufacturing, and information technology firms along the Wasatch Front.
Regional Demographics and Traffic
The Provo Towne Centre is situated in a high-traffic area near Interstate 15. Traffic data shows an average daily traffic count of 6,808 at the intersection of W 1200 S and S University Ave E, and 5,277 at the intersection of Towne Centre Blvd and W 1200 S N. The mall is located in Provo, which is the third largest city in Utah, with a population of 112,488 and an area of 44 square miles.
State Transit Reinvestment Programs
The shift toward transit-oriented development in Provo aligns with state-level initiatives such as the Housing and Transit Reinvestment Zone (HTRZ) Act. Adopted during the 2021 General Legislative Session via SB 217, the HTRZ program allows municipalities or public transit counties to propose zones around strategic transit stations along the Wasatch Front. These zones are designed to capture a portion of incremental tax revenue growth over time to help support the costs of development.
Legislative Framework
The HTRZ program has undergone various amendments by the Utah Legislature to expand eligibility and clarify requirements. During the 2025 legislative session, changes were made to HTRZ provisions, including the relocation of these provisions to the Housing Investment and Opportunity Act under the Governor's Office of Economic Development (GOED). Additionally, the 2025 session introduced the Statewide Tax Administration and Technology Solutions (STATS) program, which mandates that TIF entities intending to use tax increments must complete pre-increment disclosure and reporting.
Program Outlook
The HTRZ program is currently set to expire on Dec. 31, 2027, according to state guidelines. The program remains an ongoing initiative intended to facilitate development near transit hubs, utilizing incremental tax revenue to incentivize strategic growth in urban and suburban corridors.
