Update: On Oct. 1, 2024, after legislators approved the participation agreement, the Salt Lake City Council voted to give final approval to the deal and a 0.5% sales tax increase to fund the new Sports, Entertainment, Culture, and Convention district.
A committee of Utah legislators just received the participation agreement between Salt Lake City and Smith Entertainment Group (SEG) for the sports, entertainment, culture, and convention district around the Delta Center. This is easily the biggest project on downtown’s horizon, and it hinges on a citywide 0.5% sales tax increase, collected over 30 years. What’s on the table, and what happens next?
What Is the Participation Agreement?
This whopping 136-page document lays out the terms between SLC and SEG for the new district that’ll house the Utah Jazz and the Utah Hockey Club — in exchange for $900 million in tax dollars. State law requires this contract, and the Salt Lake City Council endorsed it in early July.
What’s in It?
A lot. Here are some highlights:
- Estimates that SEG will spend $525 million renovating the Delta Center and $375 million on the rest of the district
- Financial penalties if the Utah Hockey Club and/or Utah Jazz leave downtown before 30 years
- Requiring SEG to secure a land lease with Salt Lake County for the convention blocks (which includes Abravanel Hall)
- Delta Center ticket fees that put money into a public benefits account for things like affordable housing
- Assurances the city spends at least $5 million on restoring Japantown
What Happens Next?
Now that the state committee — which is made up of lawmakers from outside of SLC proper — has received the participation agreement, they have 30 days to either approve or reject it.
If it gets the greenlight from the committee, the agreement goes back to the SLC Council for a final vote. The council also needs to approve the 0.5% sales tax increase by the end of the year.
There are still a lot of lingering questions about the development of the district and what will happen with the county-owned property. Follow along with us; we’ll keep you in the loop.
