SALT LAKE CITY — 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.”
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