The Salt Lake City Council unanimously approved a 0.5% sales tax increase to fund the downtown sports, entertainment, cultural and convention district, giving final approval to the project.
“I can look my constituents in the eye and say in good faith that this investment is worth it, because this is not a subsidy, this is our It’s an investment in yourself,” said Parliament Speaker Victoria Petro. meeting.
Petro emphasized that sales tax does not apply to big-ticket purchases such as groceries and cars.
Smith Entertainment Group, the company of billionaire Ryan Smith, who owns the Utah Jazz and Utah Hockey Club, will use the money to renovate the Delta Center and “revitalize” the city block around it. , applied for a consumption tax increase in April.
Tuesday’s vote came after the city agreed to a deal with Smith Entertainment Group to create and renovate a downtown district. State lawmakers also celebrated the proposal. The process was established earlier this year during the 2024 Congress. In addition to the sales tax, Congress also gave final approval to the Participation Agreement.
The project area is approximately 500 meters west of West Temple and 200 meters south of South Temple. The city estimates the sales tax increase will generate $1.2 billion, with up to $900 million earmarked for revitalization projects.
At least 37 people registered for the final chance to speak on the issue during the hearing. Several individuals and local groups spoke in favor of the sales tax increase, viewing it as an investment in the city’s future.
“We believe these ambitious public investments will enhance the social, cultural, and economic health of our region. Conventions, sports, and arts entertainment are key drivers of the downtown economy.” said Jessica Sessing of the Alliance and Salt Lake Chamber of Commerce.
โLosing our sports culture and convention audience would be devastating to our downtown economy and weaken the core of our local economy.โ
Support also came from University of Utah President Taylor Randall, Kem C. Gardner Policy Institute Director Natalie Goshner, and executives from the Utah Symphony Orchestra and Utah Opera. The City Council vote also included language to continue working with stakeholders to develop a plan to preserve Abravanel Hall.
Those in favor of the bill generally focused their comments on revitalization projects rather than the consumption tax.
However, this proposal was not without criticism.
Opponents generally said they spoke as private citizens, not as representatives of an organization. “We, the citizens of Salt Lake City, are already overtaxed,” one resident declared.
With the Olympics coming back in 2034, resident Jeff Novak told the City Council there is no need to put public money into the project as other funding sources will come to the city.
Some pointed to economic research showing that spending public funds on sports stadiums is generally not a worthwhile public investment.
In explaining why they voted in favor of the project, City Council members focused on the public interest in the participation agreement with Smith Entertainment Group. This includes funding affordable housing, improving historic Japantown, developing the workforce, investing in the arts, and improving the walkability of our neighborhoods.
Council members also said they intend to hold Smith Entertainment Group accountable. Petro said he was proud of the result.
“This is a difficult thing and a big thing, but I’m not going to confuse the magnitude of it with anything other than the greatness that we’ve squeezed out of this lemon. For us, for Ryan Smith, for hockey players. Very much. But we owe a lot to this city where hockey player Ryan Smith lives. This is a good thing.”
The state tax commission plans to implement the new sales tax in early 2025.