Salt Lake City eyes major zoning changes to handle Smith Entertainment Group’s request

SALT LAKE CITY — Utah’s capital city is exploring downtown zoning amendments as it continues its negotiations with Smith Entertainment Group over a proposed “sports, entertainment, cultural and convention district” around the Delta Center.

Salt Lake City’s proposed changes to the D4-Secondary Central Business District zone requirements would allow for building heights to be closer to those at the heart of downtown and make way for an expansion to the Delta Center building’s current size, among other things.

The proposal, initiated by the Salt Lake City Mayor’s Office in late April, would:

• Remove a cap limiting buildings to 125 feet in height. There would no longer be a building cap within the zone, but anything over 75 feet must be approved through a design review process.
• Allow for additions to existing buildings “even if the addition does not comply with the maximum setback of the zoning district.” This is specifically designed to allow for the Delta Center to expand within its block without dealing with the existing setback regulation as Smith Entertainment Group prepares for a multiyear renovation.
• Shift stadiums, heliports and commercial parking from conditional to permitted uses; however, the latter has some limitations. A building would not be allowed to be demolished and replaced with a stand-alone parking lot or structure. Any commercial parking lot or structure would also have to be a part of a larger development.
• Amend sign overlay regulations to allow “flexibility in the size of signs and types of signs that can be catered to different events” at the Delta Center, Salt Palace Convention Center, Abravanel Hall and Utah Museum of Contemporary Arts. All four are currently only allowed to advertise events happening at their respective venues.

The proposed changes are similar to what Smith Entertainment Group requested in its application to Salt Lake City on April 4, which launched the city’s involvement in a basketball/hockey arena bill that the Utah Legislature approved this year. Officials asked the city to eliminate maximum height limitations within the project area while making “arenas,” “stadiums,” “heliports,” “parking, commercial” and “parking, off-site” permitted uses in the area.

If approved, it would apply to the Delta Center and Salt Palace, as well as the blocks directly north and south of the arena, and Quarter Row directly southeast of it. Salt Lake City planning director Nick Norris said provisions would still be put in place even if certain uses are immediately permitted. There would likely be regular operating hours for heliports in nonemergency situations, for instance.

The proposal is scheduled to be presented during the Salt Lake City Planning Commission meeting on May 22, but it may be pushed back to June 12 as Smith Entertainment Group reviews concerns brought up with the signage portion.

Overall, what the company proposed isn’t far off from what is accepted or planned for the area. Norris explained that building heights of up to 375 feet are already permitted in parts of the D4 zone. The company’s vision for the area is similar to the Downtown Plan that the city adopted in 2016, which he said essentially describes “more of an entertainment district around the Delta Center.”

“While some of the code changes are big, they’re not widespread code changes,” he told KSL.com.

The Salt Lake City Council will vote on the measure sometime after it makes it past the planning commission.

Smith Entertainment Group recommended the changes about two weeks before Utah Jazz owner Ryan Smith acquired the Arizona Coyotes in a deal that relocated the National Hockey League franchise to Utah. He said his NHL plan shifted from building a new arena “south” of Salt Lake City, to renovating the arena and creating an entertainment district around it — something that SB272 set up.

The City Council listened to a presentation from the company, Salt Lake City Mayor Erin Mendenhall and Salt Lake County Mayor Jenny Wilson last week. Salt Lake County has been involved in the discussions because the company’s plans involve the Salt Palace and other county-owned properties east of the arena.

A public hearing on the negotiations is slated for May 21 before the City Council is tentatively scheduled to vote in July on whether to approve the partnership. The sides have until Sept. 1 to reach an agreement, as outlined in the bill. The City Council has until the end of the year to approve up to a 0.5% sales tax increase that would also go toward projects in the area.

Smith Entertainment Group estimates that the tax will generate up to $1.2 billion over its 30-year lifespan, of which it could collect up to $900 million.

That’s prompted concerns from residents who argue that the city and state shouldn’t offer public funds to wealthy team owners, but Mendenhall said on Monday that she believes the proposal goes beyond sports. She contends that the changes will bolster the convention industry and downtown’s success on days when the Delta Center is active, which she says are two of the city’s larger economic drivers.

“What is being proposed isn’t really about NHL as much as it’s about next-leveling and making sure these two economic engines keep going,” she said. “It’s really not about (hockey) as much as it’s about making sure that downtown stays strong.”