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Sandy City Council discusses leasing Justice Court building to the state

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The Sandy City Council met on Tuesday, October 20, 2026, to discuss a proposal to lease the Justice Court building to the Utah State Judiciary. The potential agreement could provide the city with steady lease revenue starting in July 2027.

Key takeaways

  • The Utah State Judiciary proposed leasing the Sandy Justice Court building for a District Court starting July 2027.
  • The proposed lease features a $25 per square foot full service rate with a 2.5% annual escalation.
  • Estimated gross lease revenue over 20 years is approximately $20 million.
  • The City Council will consider voting on the lease agreement in mid-November or early December.

The Sandy City Council met on Tuesday, October 20, 2026, to discuss a proposal regarding the potential lease of the Justice Court building to the Utah State Judiciary. The proposal, which was introduced in May, involves the state utilizing all or part of the facility for a District Court beginning in July 2027.

Sandy Real Estate Manager Dan Nelson provided an overview of the proposed lease terms, which include a rate of $25 per square foot for full service and a 2.5% annual escalation on the base rent. If the agreement is approved, the lease term would begin on July 1, 2027. Administrative Services Director Brian Kelley reviewed a lease pro forma, estimating that the gross lease revenue over a 20-year period would be approximately $20 million.

The potential lease would require the relocation of city staff currently housed in the Justice Court to other office space. Administration discussed the possibility of the city maintaining continued use of the courtroom to handle Justice Court matters, noting the state would be responsible for the build-out and improvements required for its use. The city noted that leasing the building could provide steady income, better utilize an underutilized building, and offer savings from the potential closure of the Justice Court.

During the meeting, council members raised questions regarding the ability to utilize the building for Sandy Justice Court hearings, the relocation plan for current employees, and any associated upfront costs. Administration committed to providing additional information to the council to assist in an informed decision.

The Council is scheduled to consider action on the lease agreement in mid-November or early December. If approved, the City would execute the lease agreement with the State in December.

The meeting was led by Council Vice Chair Brooke Christensen and included attendance from Mayor Zoltanski and various city administration members, including Martin Jensen, CAO, and Ryan Mecham, Deputy CAO.

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