Formerly known as the Kane Creek development, Echo Canyon has gained temporary zoning authority — short of full municipal authority — under a new state law as it moves closer to potential …
The Echo Canyon development west of Moab — recently renamed from Kane Springs Preservation and Development — has become the first project in Utah to be certified as a preliminary municipality with limited self-governance under a new state law.
The Utah Lieutenant Governor’s Office approved the certification June 9, granting developers temporary zoning and land-use authority through a legal status known as a “preliminary municipality.” Created under Senate Bill 258, the designation allows landowners to govern land use, approve infrastructure plans and begin development without local government oversight.
The authority lasts for up to six years — or four years after the first certificate of occupancy is issued — and is intended as a transitional phase before potential full incorporation. To become a town, the area must reach 100 permanent residents and win approval in a local incorporation election. If those conditions are not met, governance reverts to Grand County.
At the same time, developers are continuing to pursue traditional county approval. Grand County conditionally approved a preliminary plat for the project in March, triggering a 12-month deadline to submit a final plat that meets all county requirements. The dual-track strategy gives the developers flexibility to move forward even if delays or challenges arise in the county process.
The developers first filed for certification in March under the name Echo Canyon. State officials rejected the petition in May after determining that the legal boundary descriptions did not match those used in the required feasibility study.
The mismatch occurred because the developers had updated their maps based on a more detailed survey completed during the county’s plat review. Because state law requires the petition to match the original feasibility study boundaries exactly, they resubmitted the petition May 20 using the original coordinates.
On June 17, the Grand County Commission appointed Commission Vice Chair Melodie McCandless as the fifth and final member of Echo Canyon’s new governing board. The other four members, listed in the certified petition, are developers Craig Weston, Thomas Gottlieb, Trent Arnold and Jonathan Hoffman.
Commissioner Mary McGann, who made the nomination during the June 17 meeting, said McCandless was well suited for the role because of her balanced approach and strong work ethic.
“Melodie, probably [more than] all of us sitting around this board, has shown to be more middle of the road, looking at things different ways,” McGann said.
McCandless, whose district encompasses the development, acknowledged the position’s sensitivity given the community’s strong feelings about the project but said she was willing to step into the role.
“It’s a hard spot to fill with all the controversy in our community around it,” she said. “I am kind of the middle of the road person and I would do it. It’s a little scary but I’ll learn a lot, just like I have been.”
The certification is just the first of four applications in Utah pursuing approval as preliminary municipalities under SB 258, according to the Lt. Governor’s Office.
A state-commissioned feasibility study released in January found the proposed 176‑acre development could support essential municipal services through projected tax revenue and population growth. A public hearing held March 5 at Star Hall drew more than 230 attendees and over 30 public comments — most of them opposing the project. Speakers raised concerns about flood risk, infrastructure demands, housing affordability and financial impacts on Grand County.
Under SB258, feasibility studies must assume the development will be built as proposed and do not evaluate whether it is viable, appropriate or likely to succeed. Preliminary municipalities also lack taxing authority and must rely on private funding until incorporation is finalized.
To counteract the law’s impact, Rep. Mike Kohler, R-Midway, introduced HB540 during the last legislative session to stop the creation of any additional preliminary municipalities. The bill passed the House but died without a vote in the Senate.
The Echo Canyon project spans 176 acres along Kane Creek Boulevard southwest of Moab. Current plans include 478 residential units, 102 overnight accommodations and 67,000 square feet of commercial space. At least 10% of the housing units are required to be designated as affordable under SB258, though critics have questioned the enforceability of that requirement.
Developers have previously said they are pursuing both state and county approval to determine which path allows the project to move forward.
The county-level process has faced delays over several years. Developers first submitted a preliminary plat application in 2021, but it was delayed by zoning appeals, multiple rounds of revisions and infrastructure planning issues. In 2024, the county approved a conditional use permit for the project’s wastewater system after developers appealed a prior denial.
Echo Canyon has also faced criticism due to its location in a floodplain. Developers obtained a FEMA Letter of Map Revision after elevating portions of the site by four to 12 feet, but opponents argue that it does not ensure long-term flood protection. Many residents and advocacy groups, including Kane Creek Development Watch, have raised concerns about the project’s environmental impacts, infrastructure burden and housing affordability.
Source: Utah News