Latest news with #SB26
Yahoo
29-04-2025
- Business
- Yahoo
Salt Lake County to vote whether to sell Salt Palace portion to Smith Entertainment Group
A portion of the Salt Palace Convention Center could soon belong to the Smith Entertainment Group, as the future of downtown continues to take shape. The Salt Lake County Council will vote Tuesday afternoon on a resolution to sell about 6.5 acres of county-owned land near 55 S. 300 West at an undisclosed price 'within a reasonable range of market value,' which will help the county fund a massive project to remodel and 'modernize' the convention center. Discussions over a key piece of the 'sports, entertainment, culture and convention district' plan occurred earlier this month. County Council members spent over an hour in a closed session tied to the sale a day after Gov. Spencer Cox met with Salt Lake County Mayor Jenny Wilson, Smith Entertainment Group representatives and state legislators over the 'Mid Block' portion of the district outside of the Delta Center, which could link the arena with the rest of the district. Those conversations picked up after Salt Lake City leaders and the Housing and Transit Reinvestment Zone Committee each passed measures created in this year's SB26, setting up a 'funding mechanism' for the projected $1.8 billion project. Projects tied to the county account for about $1.5 billion of the total cost of redevelopment. Smith Entertainment Group founder Ryan Smith unveiled the plans shortly after bringing an NHL team to Utah last year. It sparked a process that ended in Salt Lake City approving a 0.5% citywide sales tax to help repay up to $900 million in bonds Smith was permitted to seek toward construction costs. County officials say selling the land is a 'necessary condition' in plans to improve the Delta Center, which is now undergoing its first remodeling phase. However, it will also provide funding for the remodeling and reconstruction of the Salt Palace, while opening up nearly $5 million in annual county property tax revenue as the land switches over to nonexempt tax status. The sale would also help 'connect' the Delta Center, Salt Palace Convention Center, Abravanel Hall, Utah Museum of Contemporary Art and other downtown buildings, county officials add. 'Linking these assets for visitors and businesses prepares the county to host major national and international events more effectively and generate additional revenue from visitors,' the resolution states. When it remodels the convention center, the county plans to build a second Salt Palace ballroom and new convention event spaces. It is unclear when that will happen, but according to county projections, it should generate about $11.5 million in new annual state, county, and city tax revenue. Tuesday's meeting is set to start at 1:30 p.m. and will be streamed live on the County Council's Facebook page. This article will be updated.
Yahoo
09-04-2025
- Business
- Yahoo
Salt Lake City passes $1.8B downtown revitalization funding source amid new concerns
The stage is now set for a massive overhaul of downtown Salt Lake City — but not without a new set of frustrations. Salt Lake City Council members voted Tuesday evening to adopt the Convention Center Public Infrastructure District, which it views as a "funding mechanism" for the rest of the "sports, entertainment, culture and convention district" surrounding the Delta Center that city leaders approved last year. It serves as a centralized area where the 0.5% sales tax increase implemented this year and other tax sources, including sales/use and property tax increments within the Delta Center block and the other blocks tied to the Salt Palace east of the arena, will go to fund projects tied to the project area. The concept was crafted through the passage of SB26 this year. Smith Entertainment Group, which owns the Utah Jazz and Utah Hockey Club, can collect up to $900 million in funds through a state law passed last year. "It's not a perfect tool; it's the one that we've been given, and I think we need to make the best of it — and I think we are doing the best with it at this time," said Salt Lake City Councilman Dan Dugan before the vote. Tuesday's outcome was expected, but it took place after a 90-minute delay created by a closed session following a major development in downtown plans. The district only covers the Delta Center block, but it's part of and will help pay for projects within the much larger Capital City Convention Center Reinvestment Zone that the Housing and Transit Reinvestment Zone Committee approved on Friday. The committee — composed of local and state government representatives — debated whether or not to delay Friday's vote after close to 9 acres at "Block 67" were added to the zone in a late change to its boundaries. Salt Lake City officials requested an additional week to review the change, as it added $300 million to the total project cost, seeking additional time to review the impacts of the addition. The city only learned about the change hours before the vote. However, others on the committee approved it anyway, asserting that it was too early in the project planning for the change to make a difference, plus any delays now could impact Smith Entertainment Group's tight window to complete the bonds needed to begin remodeling the arena. The first phase of construction could begin as early as next week, according to Mike Maughan, an executive of the company. It's expected to be carried out in phases over the next three summers as renovations are made during the teams' offseasons. The team announced last year that it planned to demolish and rebuild the north end of the Delta Center's seating bowl structure, while also adding new retractable fixed seating in the area on top of completing foundational work and other construction in its first phase. The full arena project — desired to accommodate both teams downtown — remains on track to be completed just in time for the 2027-2028 NBA and NHL seasons. City leaders still had a bone to pick about the last-second change on Tuesday, using the closed session to catch up on all the new details learned from new reviews of the plan. Salt Lake City Councilwoman Victoria Petro said "very wealthy developers" bypassed the city, county and Smith Entertainment Group by going to state leaders to get their block added to the zone, with little the city could do to have a say in it. "I'm still concerned that it undermines public trust and exposes the city to long-term financial risk," added Councilwoman Eva Lopez Chavez, whose district includes downtown. "This is not public sound finance nor is it reflective of the deal we made with constituents." It's unclear yet when the rest of the downtown construction will begin, but Salt Lake County officials said Block 67 — primarily owned by the Ritchie Group — was added to help add revenue to the district that will help finances when the county begins exploring the bond market in the future. Salt Lake County Mayor Jenny Wilson added that the county will oversee all expenditures to make sure they're used wisely, adding there's still "much more work to come." Despite their new concerns, Salt Lake City leaders say they're "hopeful" about the future. They want to make sure that the new additions don't affect the overall goal the city settled on last year, which includes improving downtown connectivity and repairing what's left of historic Japantown as the city grows. They also hope there aren't more sudden surprises along the way. 'We are much better if we collaborate and work together and communicate together — and not just bring things up at the last moment,' Dugan said. 'If we come together early and we have these good robust discussions, we can actually move forward quicker and in a more positive direction. ... I want to make sure we're still at the table and the city is working with other players in making sure this goes right.'
Yahoo
02-04-2025
- Business
- Yahoo
Salt Lake City nears 'financing mechanism' for massive Delta Center district plans
SALT LAKE CITY — Utah's capital city is inching closer to reaching an agreement that would help finance the culture and convention component of a proposed 'sports, entertainment, culture and convention district' surrounding the Delta Center downtown. Salt Lake City Council members are expected to vote next week to approve a new Convention Center Public Infrastructure District, following a public hearing held Tuesday night. It will mark one of the last steps the city is required to take in setting up the legwork for the entire project. 'If you think of (last year's) participation agreement as a roadmap of where we were going, this kind of completes that map, and it adds more detail to, I guess, the route," Salt Lake City Council Chairman Chris Wharton told Allison Parks, Salt Lake City's deputy city attorney, explained to the council Tuesday that it essentially allows for public infrastructure districts, which are joint ventures between local governments and private developers, to 'help fund the construction of public improvements.' County officials estimate the cost of the projects could exceed $1 billion. Allison Parks, Salt Lake City's deputy city attorney, explained to the City Council Tuesday that it essentially allows for public infrastructure districts, which are joint ventures between local governments and private developers, to 'help fund the construction of public improvements.' Salt Lake City's proposed Convention Center Public Infrastructure District would act 'a little different' from other such districts, she said. It only covers the Delta Center block, but it would serve as the 'financing mechanism' for Smith Entertainment Group's plan to redevelop the arena and the blocks east of it included in the 'sports, entertainment, culture and convention district.' Jennifer Bruno, the City Council's executive director, clarified that even though the district would only cover the arena block, funds could still be spent on the buildings east of the arena, included in a separate Capital City Revitalization Zone. 'This new PID, like traditional PIDs, would be a separate legal entity. It will be a governmental entity and, importantly, the debts will not be liabilities for the city,' Parks added. The district would be funded by a few different sources, including the 0.5% sales and use tax that Salt Lake City implemented as part of its partnership agreement with Smith Entertainment Group last year. It would also pull in money from other tax sources, such as sales/use and property tax increments within the Delta Center block and the three blocks tied to the Salt Palace east of the arena. Parks said there would also be a 'small tax' within just the Delta Center block for 'administrative costs.' City officials held Tuesday's public hearing as it was required by law, but they acknowledge that SB26 gives them very little wiggle room to work with. Salt Lake City Councilwoman Victoria Petro, who was chairwoman of the council during last year's process, called it a 'weird, wonky state-ordained' process that the city has to abide by. As such, it essentially turned Tuesday's hearing into what she called a 'public therapy session' rather than anything substantive that could be used to improve the legislation. 'There is a path that we have to walk, as long as things are legally sound (and) as long as things are in accordance with the statute,' she said. 'There is a predetermined outcome here … and I'm kind of frustrated that it gives the illusion that we can receive feedback.' Tuesday's hearing was much less boisterous than last year's hourslong meetings during the partnership agreement process. Resident Lori Wike was the only person to speak on the measure, voicing concerns about several issues, such as using public funds in private development. She also asked the City Council to potentially hold a second hearing on the matter before voting. But that's something the city doesn't have time to consider. Although the bill officially goes into law next month, it states that the city has until April 15 to submit its proposal to the Utah Governor's Office of Economic Opportunity. It would then go to the Utah Lieutenant Governor's Office to be certified and go into record. Wharton said the City Council will hold a 'special' formal meeting on April 8 to vote on the measure to avoid hiccups in meeting the deadline. 'There were problems waiting until the 15th, and so (this was) our only option,' he said. Despite the new agreements being proposed, Wharton said provisions from last year's agreements are in place. For instance, there's still a $900 million cap on money being used for private development, and anything more generated over the next 30 years would go toward public projects. And while the public hearing likely won't change anything in front of the City Council next week, he said it still provides residents vital information about what's happening downtown. That's important because there are still more steps to go. Smith has until July 1 to reach a lease agreement with Salt Lake County, per last year's agreement. There are a few other state approvals needed before the full framework of the partnership agreement is complete. Once that's over, Salt Lake City's next big step would be design standards on future development within the district. 'The comments still help us on all of the future decisions and all of the related decisions of the district, so I really hope that people continue to reach out and share their thoughts,' he said.
Yahoo
13-03-2025
- Business
- Yahoo
Downtown district gets financial tools for remodel while Fairpark will be kept to one stadium
An aerial view shows the Delta Center, right, and Salt Palace Convention Center, left, on 300 West between South Temple and 100 South in Salt Lake City on Monday, July 29, 2024. (Photo by Spenser Heaps for Utah News Dispatch) The plans for the districts supporting professional hockey and, potentially, baseball are keeping their momentum in Utah after the Legislature considered a series of bills to draw essential financial paths for an area in downtown Salt Lake City, or to allow multiple stadiums on a west-side district. Last year was big for special districts and funding arenas at the Utah Legislature. Lawmakers voted to approve a Capital City Revitalization Zone to host the state's new National Hockey League team, and a Fairpark Area Investment and Restoration District to help with the bid to attract a Major League Baseball franchise — both projects with funding mechanisms to capture almost $1 billion each. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The fate of all 2025 legislation addressing the districts were ultimately decided on the last day of the general session, some undergoing major makeovers before approval and one of them failing to get any House hearings to advance it. Here are some of the highlights. Senators voted on day one to approve SB26, sponsored by Sen. Wayne Harper, R-Taylorsville, which was initially a technical cleanup bill. But, after it stalled for weeks, the legislation received a committee hearing with big changes, including a funding mechanism for renovations at the Salt Palace Convention Center, which is located within the downtown revitalization district's boundaries and owned by Salt Lake County. 'This bill allows Salt Lake County and Salt Lake City to invest in the redevelopment of the convention center, Abravanel Hall and the Utah Museum of Contemporary Art,' SB26's House floor sponsor James Dunnigan, R-Taylorsville said, 'because who doesn't think downtown needs a little revitalization?' The legislation doesn't require Salt Lake City, Salt Lake County or the state to raise taxes, it allows the city and county to use existing tax authorizations to finance rebuilding the convention center, and revitalization of its surrounding areas. Fifty percent of any growth that happens in state sales tax within the four-block area downtown will go to the project, Dunnigan said. 'The current base of all the sales tax that's coming in on the base level, that will continue to come to the state,' Dunnigan said. 'All that this captures is if new development goes in and then sales tax increases, then it captures some of that growth.' Under the policy, the county will oversee the convention center's remodel while adhering to a budget established by the Governor's Office of Economic Opportunity. None of the funds would be used for private development, Dunnigan reiterated. The city, the county and the Smith Entertainment Group — which owns the Utah Jazz and the state's NHL team — are working 'to align development goals, to help clean up downtown, promote economic development and reconnect the east and west side of downtown,' Dunnigan said on Friday. SB306, another proposal to fund the convention center renovations from Sen. Dan McCay, R-Riverton, didn't get a hearing in the House. The bill would have allowed repurposing a portion of the county's sales and use tax for highways and public transit for the revitalization of the convention center and other surrounding projects. Salt Lake County Mayor Jenny Wilson spoke in support of McCay's bill during a committee presentation, describing its potential to be 'a win for the community,' as Salt Lake prepares to host the 2034 Olympic Games. 'We're no longer in the road business. If you're from Salt Lake County or watching you'll see that we're almost wall-to-wall cities. Other than our canyons, we're generally almost built out with city state roads primarily,' Wilson said. While the bill would have still allowed the county to have some spending on transportation with the funds, redirecting a portion of them for the cause made sense, she added. When Sen. Scott Sandall, R-Tremonton, first introduced a cleanup bill addressing the Fairpark district, a single letter drew much attention because of its big implications; stadiums, in plural, would be allowed, the bill said then. They would also be smaller stadiums, with the minimum capacity of hosting 18,000 spectators and not the 30,000 contemplated for the potential MLB team. But, that ended up being removed. 'As we got further into the master plan across the stadium, (and) Fairpark, it was just pretty much determined that the best use of the area would be just one individual stadium, as far as when we planned it out,' Sandall said. 'So we figured there was no reason in the bill file to leave the option hanging out there.' The concept of this bill dates back to the last weeks of the 2024 session, Sandall added, with some factors still needing to be cleared up in code, including the potential need for a second stadium. What was the stadium for? That remains a mystery. 'We never did find out, quite honestly, what it was for,' Sandall said. A provision that would have brought forward a proposed October start date for when the district's authority could start collecting a car rental tax also died after Sandall learned about a verbal commitment to not levy the tax until an MLB team was announced. The bill was then left with a cleaner explanation of how much of the tax increment will go to fund a municipal service agreement with Salt Lake City. As for now, a year after the Legislature passed the first plans for the district, an authority was set up and plans have already started running, Sandall said. 'My biggest enthusiasm right now is around the safety and security in the district, now, as quite honestly, we begin to lay all of the underground work before we start to go vertical with projects,' he said. 'I'm pretty excited. We also have a really, really nice master plan coming together.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
11-03-2025
- Business
- Yahoo
Legislature passes bill to pave way for Salt Lake City to fund $1B downtown revitalization plan
A plan to drastically alter downtown Salt Lake City took a major step toward becoming a reality on the final day of the legislative session. SB26 cleared the Utah Senate and House of Representatives on Friday, paving the way for a 'convention center reinvestment zone' by the Salt Palace Convention Center. It would also help Salt Lake County and Salt Lake City pay for the convention center's redevelopment along other buildings east of the Delta Center, a large chunk of the proposed 'sports, entertainment, culture and convention center.' Salt Lake County Mayor Jenny Wilson and Salt Lake City Mayor Erin Mendenhall said in statements to they're elated it passed. 'Salt Lake County is pleased with the passage of SB26,' Wilson said on Monday. SB26 is about a year in the making. Utah lawmakers approved another bill last year that opened the door for Salt Lake City and Smith Entertainment Group to partner on a 'revitalization zone' near the Delta Center as part of the company's plans to bring in an NHL team. With a team in hand, Smith proposed a plan in April 2024 that included a land lease with Salt Lake County over two blocks east of the arena. Since then, plans have called for the Salt Palace to be cut in half, as a plaza would exist where 100 South is currently covered up by the convention center. The center would then be rebuilt more vertically, per the renderings made public since. Getting there is expected to be costly, though. Wilson estimated last month that the cost of renovating the Salt Palace could exceed $1 billion, while the cost to preserve Abravanel Hall could be about $200 million. That's why the county lobbied the state for funding help during the legislative session. While another bill, SB306, fell by the wayside this year, SB26 aims to do help with funding. It allows for the city and county to pool 'existing tax authorizations' to help repay any bonds that finance the reconstruction of the convention center, along with upgrades to other buildings like Abravanel Hall and Utah Museum of Contemporary Art, said Rep. Jim Dunnigan, R-Taylorsville, on Friday, as he discussed the final substitute that he authored. These include property, sales, use and other tax increments, which allow for any increases to tax funds created by the enhancement of facilities within an established zone to be used to pay off any project bonds. The bill allows for 100% of local and county tax increments to go toward the project, as well as half of the state's sales tax increment over 30 years. 'This bill self-funds the project through existing taxes and creates an improvement district that will finance the project,' Dunnigan explained, adding that it wouldn't raise city, county or state taxes. Salt Lake County, which manages the Salt Palace, will be tasked with overseeing all project construction and expenditures but will also work with the Utah Governor's Office of Economic Opportunity. Dunnigan said the state office would offer additional oversight by creating an 'established budget.' All of the generated money can only go toward the Salt Palace and other public infrastructure within the zone, including a satellite police station, and not the Delta Center or other private properties. The bill also allows the city to maintain zoning control in the area. The convention center and other affected buildings are zoned D-4 by the city, which is a zone the city amended last year to fit revitalization plans. The bill won over legislators on Friday. 'We do want to make sure that we do put our best foot forward, but we don't want to have a hefty bill for it,' said Rep. Jon Hawkins, R-Pleasant Grove, before voting for it. 'I think this is a great solution to a great idea.' Barring a veto, some of the bill would go into effect on May 7, although it says the Governor's Office of Economic Opportunity 'shall propose' a zone of up to 50 acres by April 15. Some portions of the bill, largely tied to property tax, would begin on Jan. 1, 2026. While Salt Lake City clashed often during the session with the Utah Legislature, Mendenhall said she's thrilled SB26 passed. Salt Lake City reached an agreement with Smith Entertainment Group in October, which included a 0.5% sales tax increase toward $900 million in bonds Smith was allowed to seek. Those plans required help from the county that hinged on funding opportunities, which might now be settled. 'The renovation of the Salt Palace will unlock the potential of the downtown district,' Mendenhall said, adding that the bill should help ensure the Utah Jazz and Utah Hockey Club remain downtown as the 'anchor of our downtown sports, entertainment, culture and convention district.' County and state leaders also see the bill as a major investment in the Salt Palace, which Dunnigan called Utah's 'top tourism asset.' Conventions are a major driver for the $4 billion in direct visitor spending that Salt Lake County generated in 2023, according to the University of Utah Kem C. Gardner Policy Institute. He said the Salt Palace is active about 65% of the year, but some projections have it closer to 90% with the right changes. Wilson explained last month that adding a second ballroom could potentially double the revenue that the Salt Palace generates, something that could go toward the tax increment. 'The renovation of the Salt Palace is a top priority for Salt Lake County as it will increase our capacity to host more events and conventions, strengthen preparations for the 2034 Olympics, and enhance the downtown experience,' she said on Monday. '(It) generates significant tourism revenue, which is reinvested into local communities, parks, trails, recreation, arts and public spaces.'
