Kanab City Council reviews Old Fort Ranch proposal, adopts tentative 2027 budget

KANAB — Kanab City officials have begun reviewing a proposed resort and residential development in the city’s municipal expansion area while also approving a tentative budget for fiscal year 2027. During its May 12 meeting, the Kanab City Council discussed the proposed Old Fort Ranch development after receiving notice from Kane County on May 4. Because the property lies within Kanab’s expansion area, state law provides the city an opportunity to review the proposal and submit comments to the county.

“We appreciate Kane County giving the city the opportunity to review and comment on the Old Fort development,” City Manager Kyler Ludwig said. “The city is currently preparing its response to the proposed development agreement. The agreement is broad in scope and does not include many of the details needed to fully understand how the project may affect surrounding neighborhoods, city infrastructure and municipal services. We are using this review period to better evaluate those potential impacts.”

According to information presented to the council, the proposal includes a hotel and resort project, short-term rental residences, employee housing and related amenities.

Mayor Colten Johnson said he would like to create a committee of city staff, council members and planning commissioners to help evaluate the project and prepare the city’s response to Kane County.

Council members discussed potential impacts on transportation, emergency services, water resources, wastewater infrastructure, stormwater management and surrounding neighborhoods. Ludwig said the developer has expressed interest in providing water service through private wells, but city staff has indicated Kanab would likely oppose additional groundwater wells in the area because of concerns about long-term water availability.

The council also unanimously approved a tentative fiscal year 2027 budget.

Ludwig said the proposed spending plan focuses on core city services, public safety, infrastructure improvements and employee retention. The budget does not include a property tax increase and is available for public review at Kanab City offices and through the Utah Public Notice website.