Salt Lake City approves Smith plan for Delta Center and entertainment district

SALT LAKE CITY — A plan that would drastically change downtown Salt Lake City with a “sports, entertainment, culture and convention district” surrounding a remodeled Delta Center has cleared its first major hurdle.

The Salt Lake City Council voted unanimously on Tuesday to endorse a partnership agreement with Smith Entertainment Group — the parent owner of the Utah Jazz and Utah Hockey Club — on a downtown revitalization plan on Tuesday. The vote sends the proposed 136-page document to a state committee for approval before the agreement can be finalized.

The vote wasn’t much of a surprise as any suspense leading up to it was quashed in the City Council’s work session before Tuesday’s formal meeting. Salt Lake City Council Chairwoman Victoria Petro said the City Council would vote to endorse the measure during a rousing speech in front of her colleagues.

“This is a good agreement that brings good things to the city,” she said. “As we move forward with this, I’m sorry for the people who feel against and the fear, but I’ve moved from fear to determination. … It is scary and big, but it’s in the best interest.”

The City Council’s vote included a lengthy “legislative intent” notice, which outlines goals that the City Council would like the agreement to include but aren’t binding conditions. This may dictate future conversations about the agreement.

In this case, the City Council requests city staff to set up “financing options” for Japantown infrastructure upgrades. It also would like to set up construction mitigation and planning processes for the whole district, as well as prioritize transit development in the district by possibly setting up a “tickets as fare” program with the Utah Transit Authority.

If the agreement is finalized, the City Council will vote later this year on whether to approve a 0.5% sales tax increase and proposed zoning changes to accommodate the plan’s development.

The vote marks the first big step for the project since Smith Entertainment Group applied for a partnership with Salt Lake City on April 4, shortly before Ryan and Ashley Smith acquired the Arizona Coyotes in a deal that relocated the team to Utah. The partnership opportunity was set up by a bill passed by the Utah Legislature in March.

The two sides have negotiated since then, leading to a final agreement document that emerged on Friday. Under the deal, Smith Entertainment Group can seek up to $900 million in bonds toward Delta Center remodeling and other projects within the districts. It would receive most of the proposed sales tax increase to cover the cost of the bonds over the next 30 years.

There are a few other concessions, but the company would also create a new ticket fee that would go toward a city account that pays for affordable housing projects across the city. Other city benefits include new internships, shadowing and apprenticeship programs for high school and college students, as well as more youth programming and free/subsidized tickets for Salt Lake City-based community organizations.

The Smith Entertainment Group plan would focus primarily around the Delta Center and the two blocks east of it, which is where a proposed plaza, hotel and residential high-rises would be located.

Salt Lake County properties including Abravanel Hall, Utah Museum of Contemporary Art and the Salt Palace Convention Center are not included in the agreement. The fate of those properties will be determined from separate agreements between the county and Smith Entertainment Group.

But the plan also generated all sorts of reactions for and against it at a pair of public hearings in May and June that drew over 100 comments. While several downtown business leaders spoke in favor of the plan — saying it could provide a “shot in the arm” for business in the district — many residents also spoke out in opposition.

Some called it a “boondoggle,” while others questioned why a billionaire needs taxpayer money to complete the project. Even on Tuesday, a group called Americans for Prosperity-Utah staged a small protest outside of the Salt Lake City-County Building before the Tuesday meeting.

“This is not the role of government to raise the taxes on (Salt Lake City) taxpayers to then subsidize the expensive hobbies of someone else,” said Kevin Greene, who helped organize the protest.

Petro referenced the backlash that the City Council has received toward the end of her speech. She said she will accept any political impact the City Council’s vote may have on her tenure in office.

“I’d rather be short-tenured and effective than long-tenured and waffling,” she said. “If I lose reelection because I’ve done something bold in the best interest of the city … I will happily retire.”

Contributing: Mike Headrick