Salt Lake City, Smith Entertainment Group share full details of proposed Participation Agreement focused on the reimagination of downtown SLC – Utah Business

Salt Lake City — Salt Lake City Corporation and Smith Entertainment Group (SEG) have unveiled full details of their proposed Participation Agreement – a critical milestone toward creating a community-centered sports, entertainment, culture, and convention district and keeping professional sports in downtown Salt Lake City.

The Agreement marks the first of several steps in a process laid out by the Utah State Legislature earlier this year in S.B. 272. 

“At the center of this Participation Agreement is a commitment to delivering valuable community benefits and opportunities that uplift our quality of life by activating the full potential of our downtown,” said Salt Lake City Mayor Erin Mendenhall. “This is an exciting step toward executing a vision to transform our urban core by centering walkability, affordability, and the needs of families, residents, and visitors.”

The Participation Agreement includes the creation of a Community Benefit Fund, which the City will use towards public benefits like affordable and family-sized housing investment, a Japantown streetscape project, public art, and more. Other public benefits that SEG would provide as part of this project include workforce training and development, a college internship program, a high school mentor program, youth athletics programming in Salt Lake City, and free or subsidized tickets to both NHL and NBA games for residents and organizations within the Salt Lake City community.

In addition, the district will include a public safety/police substation, as well as gathering spaces and connectivity throughout the three blocks. 

Should the district be approved and agreements made with Salt Lake County on the additional blocks, the Agreement also identifies that Delta Center will be the home arena for both the Utah Jazz (NBA) and Utah Hockey Club (NHL). It further outlines that SEG would execute a binding lease with Salt Lake County for the city blocks that are currently occupied by the Salt Palace Convention Center by July 1, 2025, which are critical to the development of the district.

“SEG is committed to the creation of a vibrant sports, entertainment, culture, and convention district that would be an active and welcoming space for individuals and families to gather in Salt Lake City’s downtown core,” said Mike Maughan, an executive with Smith Entertainment Group and the project principal. “Reimagining downtown Salt Lake is a mission-driven initiative that will involve everybody and have a lasting, positive impact for generations to come. This Participation Agreement is an important step in the journey toward a reimagined downtown core.”

“This proposed agreement is the product of tireless negotiations aiming to ensure the best opportunities for current and future Salt Lakers,” said Salt Lake City Council Chair Victoria Petro. “Our next few days will be spent in sober reflection as we prepare to vote on what is merely the first of many steps required to see this vision become a reality.”

The Agreement is on the City Council’s agenda for a possible vote to endorse on Tuesday, July 9.

If endorsed by the City Council, the City will deliver the Agreement to the Capital City Revitalization Committee, which is a legislative committee tasked with considering the agreement in a public meeting within 30 days of receiving it from the City. If the Committee approves, the Agreement will be returned to the City Council for final approval. Upon approval of the final Agreement, the Council has until Dec. 31, 2024, to adopt the sales tax adjustment for the project and authorize the Mayor to sign the Agreement. 

This would generate revenues of approximately $1.2 billion over the 30-year life of the agreement, $900 million of which will be dedicated to SEG for its commitment to renovate Delta Center, the surrounding plazas, and the sports, entertainment, culture, and convention district.

On April 4, 2024, SEG filed an application with Salt Lake City to create a Capital City Revitalization Zone to facilitate redevelopment around the Delta Center. Since then, a number of events have transpired, including:

• The announcement of a new NHL team being awarded to SEG, to play in Utah beginning with the 2024-25 season;
• SEG briefing Salt Lake City Council three times on their vision for a Sports, Entertainment, Culture, and Convention District and the initial terms;
• Two public hearings and feedback fielded during City Council’s general public comment;
• Meetings with stakeholders in Japantown, Utah Symphony, UMOCA, Downtown Alliance, and Salt Lake Chamber of Commerce, along with dozens of other community leaders and organizations

After the City Council’s final vote on the Participation Agreement, the City will also negotiate a development agreement with SEG, which will outline the design guidelines for the district, and will negotiate a new lease for Delta Center for the hockey and basketball teams. 

The Participation Agreement is publicly available and attached. For more information, visit http://tinyurl.com/SLCRevitalizationZone.