A senior adviser for Governor Spencer Cox has threatened to withhold all state funding from Wasatch County, warning that any assistance within the governor's power will be stopped. Steve Waldrip, the governor's senior adviser for housing strategy, delivered the message during a Heber City Council meeting on Tuesday, August 18, following recent local decisions regarding land development and opposition to state legislation.
Development and Legislative Conflicts
The threat from the governor's office follows two specific actions taken by Wasatch County officials. First, the Wasatch County Council rejected a proposal for a legislative development agreement with Philo Development. The proposed agreement would have permitted the developer to build 144 lots on 740 acres of land owned by the Utah School and Institutional Trust Lands Administration, or SITLA. Under current zoning, the land is limited to one unit per 160 acres.
Second, Wasatch County has joined forces with Summit County to oppose Senate Bill 258. Passed in 2024, the law allows up to three landowners in unincorporated areas of rural counties to apply for a preliminary municipality. According to Waldrip, the counties' stance on these issues conveys a message of defiance. He stated that the counties have openly "declared war" on the state regarding growth issues and are working in concert to "thwart state law relative to development."
Governor's Warning to Local Leaders
Waldrip's comments at the Heber City Council meeting were directed toward Heber City Mayor Heidi Franco rather than Wasatch County officials directly. He told the council that the county's funding is now at risk, stating, "Your funding as a county is now at risk, meaning none. Anything within my power, I will stop."
Waldrip specifically mentioned that state funding, including B and C road funds, could be suspended for counties that he described as acting without being thoughtful or engaging in proper discussion. He characterized the efforts of Wasatch and Summit counties to resist the preliminary municipality program as "selfish," noting that most public comments focus on individual impact rather than the broader implications of development.
Wasatch County Response
Wasatch County Manager Dustin Grabau expressed confusion and bewilderment regarding the governor's combative approach. Grabau noted that the county has not been breaking the law, but rather is advocating for public policy that aligns with the wishes of constituents. He questioned why the governor's office chose to deliver such a bold message to Heber City instead of addressing Wasatch County directly.
Grabau stated that the county has been attempting to engage in a public conversation regarding Senate Bill 258, which they view as a pilot program that is not working for rural counties. He noted that the county's goal is to request a repeal of the program to better serve their constituents. Grabau added that the county has attempted to reach out to the Governor's Office to establish a dialogue, but so far, the interaction has been "one-sided."
Legislative Context and Concerns
The tension surrounding preliminary municipalities stems from concerns that the 2024 law allows developers to bypass traditional local land use controls. Summit County Manager Shayne Scott noted that both Summit and Wasatch counties are not alone in these concerns, as a number of other counties and cities across Utah have expressed apprehension that the tool could allow for the usurpation of local land use authority.
While the Wasatch Back has seen four applications for preliminary municipalities this year—with two in Wasatch County being accepted—legislative efforts to reform the process have faced setbacks. In the 2026 legislative session, Morgan County Representative Tiara Auxier sponsored a bill that would have granted counties a seat at the table during the incorporation process, but the bill died in the Senate. Previously, Wasatch County Representative Mike Kohler also unsuccessfully attempted to reform the pilot program.
Seeking Future Dialogue
As the dispute continues, local leaders from both Summit and Wasatch counties are seeking meetings with the governor's office to discuss the issues. Summit County Manager Shayne Scott emphasized that his community is "very pro-housing," particularly regarding affordable housing, and hopes for a productive conversation.
Heber City Councilor Yvonne Barney addressed the situation during the August 18 meeting, suggesting that the governor's use of threats may not be well-received by the community. Barney suggested the conflict might be exacerbated by media attention or a misunderstanding of the core issues, noting that the county is simply attempting to listen to its citizens regarding land use and development.
