Salt Lake City Council approves downtown district and sales tax hike
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The Salt Lake City Council on Tuesday approved a final participation agreement and a sales tax hike that would allow the Utah Jazz and Utah Hockey Club to stay downtown.
Why it matters: The council's vote marks a critical step towards making Smith Entertainment Group (SEG) and the city's proposed entertainment and sports district a reality.
Follow the money: SEG will receive up to $900 million in bonds that the city will regain through a .5% sales tax hike over the next 30 years to help pay for the district and upgrades to the Delta Center to hold both professional sports franchises.
- The increase will take effect Jan. 1, 2025.
- The agreement imposes penalties on SEG if they move either team away from downtown.
Catch up quick: In April, the NHL approved the sale of the Arizona Coyotes to SEG, an investment group led by professional sports tycoon and billionaire Ryan Smith, for a reported $1.2 billion.
- A legislative committee last month unanimously voted in favor of Salt Lake City and SEG's project area and participation agreement.
What they're saying: "This is a vote for the city's future, unlocking investments in workforce development and many new career opportunities for our residents. These were important, hard-fought gains," Salt Lake City Council Member Chris Wharton, who represents District 3, said before the vote.
- The Salt Lake Area Restaurant Association and the University of Utah expressed support for the downtown district during Tuesday's meeting.
The other side: During public comment, former Salt Lake City Mayor Rocky Anderson, who lost his re-election bid to Salt Lake City Mayor Erin Mendenhall last year, called the agreement "oppressive" and said he planned to launch a referendum campaign.
- "Are you going to allow a billionaire sports team owner to threaten to pick up his marbles and go elsewhere unless he gets to essentially pick all of our pockets?" Anderson said.
What's next: The agreement will now head to Mendenhall to administer.
Editor's note: This story has been updated to show Mayor Erin Mendenhall now has to execute the plan.