T 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)
A legislative committee may make a decision to pave the way for a potential Salt Lake City sales tax hike to create a Downtown Revitalization Zone as soon as Tuesday.
The Revitalization Zone Committee, created by SB272, a bill that sought to use the tax revenue for the project to attract a National Hockey League team in Utah, is scheduled to meet for the first time on Tuesday at 11:30 a.m.
Representatives from Salt Lake City and Smith Entertainment Group, which owns the Utah Hockey Club, will present details on the participation agreement they collaboratively drafted and the Salt Lake City Council unanimously endorsed in July.
Sen. Dan McCay, R-Riverton, who sponsored SB272, was not available to comment on the proposed agreement on Monday, as he was still reviewing it. However, during a team presentation at the Delta Center in April, he spoke about his priorities for the agreement.
“We have all the tools we need to be successful,” he said. “And the No. 1 thing we want to do is make sure that we’re successful, not just for the NHL, not just for the Olympics, but for the community that surrounds this area.”
SLC Council votes unanimously to endorse revitalization zone deal with Smith Entertainment Group
This is one of many steps the state and the city have to take to authorize a 0.5% sales tax hike to generate about $900 million to fund renovations to the Delta Center to host professional hockey and other redevelopment projects in three downtown blocks.
The agreement contains construction mitigation plans and public benefits, such as a special account from a new ticket fee to fund family-sized and affordable housing. It also includes penalties for Smith Entertainment Group if either the NHL or NBA team leave within 15 years of the agreement.
The committee may send the deal back to the city with feedback. But, if the group approves it, the agreement goes back to the city for a final vote to potentially approve the sales tax increase.
The City Council has until Dec. 31 to finalize its sales tax increase decision, according to the bill.
The bill’s two sponsors, McCay and Jon Hawkins, R-Pleasant Grove, are part of the committee, in addition to House Majority Leader, Jefferson Moss, R-Saratoga Springs; Majority Assistant Whip, Kirk Cullimore, R-Sandy and Jon Pierpont, Chief of Staff to Republican Gov. Spencer Cox.
SUPPORT NEWS YOU TRUST.