The Salt Lake City Council voted unanimously Tuesday to support a partnership agreement with Smith Entertainment Group — the original owner of the Utah Jazz and Utah Hockey Club — on a downtown revitalization plan. The vote sends the proposed 136-page document to a state committee for approval before the agreement can be finalized.
If the agreement is finalized, the City Council will vote later this year on whether to approve a 0.5% sales tax increase and proposed zoning changes to accommodate the planned growth.
“This is a good agreement that brings good things to the city,” Salt Lake City Council President Victoria Petro said before the meeting. “As we move forward with this, I feel sorry for those who feel against it and afraid, but I’ve moved from fear to determination. … It’s scary and big, but it is in the best interest.”
The vote was not much of a surprise because any doubts about it were dismissed in a City Council work session before Tuesday’s formal meeting. Petro said during an emotional speech in front of his colleagues that the City Council would vote to support the measure.
The City Council vote included a lengthy “Legislative Intent” notice, which outlines goals the City Council would like included in the agreement but that are not binding terms. This could guide future negotiations regarding the agreement.
In this case, the City Council requests city staff to establish a “funding option” for Japantown infrastructure upgrades. It seeks to establish construction mitigation and planning processes for the entire district, as well as prioritize transit development in the district by possibly establishing a “ticket as fare” program with the Utah Transit Authority.
In a joint statement, Salt Lake City Mayor Erin Mendenhall and project principal Mike Maughan of Smith Entertainment Group called the vote “an important endorsement and positive step” for the project.
The vote marks the first major step for the project since Smith Entertainment Group applied for a partnership with Salt Lake City on April 4, shortly before Ryan and Ashley Smith acquired the Arizona Coyotes in a deal that moved the team to Utah. Was transferred in. The partnership opportunity was established by a bill passed by the Utah Legislature in March.
“We are grateful for (the City Council’s) support of this vision that will create a more active, connected and family-friendly future for Salt Lake City,” the statement said in part.
To decide
The two sides have been in talks since April, with a final agreement document revealed on Friday. Under the deal, Smith Entertainment Group could seek up to $900 million in bonds for Delta Center remodeling and other projects within the district.
Smith Entertainment Group’s plan will focus primarily on Delta Center and two blocks east of it, where a proposed plaza, hotel and residential high-rises will be located. A large area around those blocks, including the Gateway, will make up the rest of the revitalization area.
The company would receive the majority of the proposed sales tax increase to cover the cost of the bond over the next 30 years. Those projects are scheduled to be completed by approximately 2034.
In turn, this would create a new ticket fee that would go into a city account that pays for affordable housing projects across the city. Other benefits to the city include new internships, shadowing and apprenticeship programs for high school and college students, as well as more youth programming and free/subsidized tickets to Salt Lake City-based community organizations.
Some funds will also be set aside for the renovation of Historic Japantown.
If our city takes over… (it) reflects on our local economy in every way, in terms of attracting new businesses (and) high-paying jobs.
-Salt Lake City Councilman Alejandro Puy
But the plan generated all kinds of reactions for and against at two public hearings in May and June, with more than 100 comments. While many of the city’s business leaders spoke in favor of the plan – saying it could provide a “shot in the hand” for business in the district – several residents also spoke in opposition.
Some called it “good luck”, while others questioned why a billionaire needed taxpayers’ money to complete the project. Also on Tuesday, a group called Americans for Prosperity-Utah held a small protest outside the Salt Lake City-County Building ahead of the meeting.
“It’s not the role of government to raise taxes on (Salt Lake City) taxpayers and then subsidize someone else’s expensive hobby,” said Kevin Greene, who helped organize the protest.
City Council members recalled “countless hours” of meetings and debates over the terms of the agreement before Tuesday’s vote. Councilman Alejandro Puy said there were some tough negotiations during that time, including a measure exempting groceries from a potential sales tax increase.
Ultimately, Puy said his colleagues agreed that the idea of rebuilding downtown, including the potential to reopen 100 South, which is covered by the Salt Palace Convention Center, was such a good one. This could not be ignored. City officials believe these types of changes could help the city’s plan work when other stadium deals have fallen through.
“The success of downtown is the success of every district in the city,” he said. “If our downtown dies … (it) reflects on our local economy in all kinds of ways to attract new businesses (and) high-paying jobs.”
next steps
Even after Tuesday’s voting, the process in the district has not been completed.
Salt Lake County properties including the Salt Palace, Abravanel Hall and the Utah Museum of Contemporary Art are not included in the agreement. The fate of those properties will be determined by separate agreements between the county and Smith Entertainment Group. County leaders have said they would like to preserve Abravanel Hall, but it appears the museum may be torn down and rebuilt.
The agreement is partially contingent on Smith Entertainment Group securing a lease with the county through mid-2025.
Meanwhile, Mendenhall said he believes the agreement will be presented to the state’s Revitalization Zone Committee for review on Wednesday. That would trigger a 30-day period where the committee would vote to either accept it or reject it, providing Salt Lake City and Smith a note on what changes it wanted.
City leaders were informed that the committee was aware of the agreement document, but they did not know what direction the committee might be inclined.
As that happens, a few other items remain before the Salt Lake City Council. The council is scheduled to hold a public hearing Aug. 13 on proposed zoning amendments associated with the project, which could open the door to buildings taller than 600 feet. It’s unclear when it will vote on the proposal or the 0.5% sales tax increase.
“There’s still a lot of work to do,” Mendenhall said. “We will continue to work together.”
Contribution: mike hedrick
