SEG details entertainment district proposal near Delta Center in Salt Lake application

SALT LAKE CITY (KUTV) — Utah’s NHL and NBA ownership group is looking to revitalize up to 100 acres in and around the Delta Center in downtown Salt Lake City.

The plans came as the Smith Entertainment Group recently welcomed members of Utah’s new NHL franchise to the Delta Center in front of more than 12,000 fans.

While the revitalization zone has been previously reported due to legislative approval, 2News obtained a copy of the application submitted to Salt Lake City regarding the creation of a ‘project area’ and ‘revitalization zone’.

“SEG’s initial proposed project area (the “Project Area”) will consist of approximately 100 acres located contiguous with and around the City block upon which the Delta Center is presently located,” states the application written to Mayor Erin Mendenhall. “The Project Area will not exceed 100 acres in size.”

The application showed a map of the Delta Center area and surrounding properties in “Exhibit A”, and described in “Exhibit B” the public funding currently being used through a property tax reimbursement agreement with the Salt Lake City Redevelopment Agency.

According to the application, SEG can receive over $22.7 million with the program beginning in 2019 and running through 2040.

“SEG has received to date $3,448,684,” the application said.

In “Exhibit C”, which is the application “For Creation of a Project Area”, it’s outlined that this application is “premised upon SEG’s efforts to keep the Utah Jazz within the City, requiring the remodel of the Delta Center to accommodate a National Hockey League franchise and create an enhanced entertainment district in the Project Area for the benefit of Salt Lake City’s downtown area.”

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The application discussed the intent to conduct significant remodeling to accommodate a dual fan base and an NHL franchise.

As discussed by SEG’s Ryan Smith and NHL Commissioner Gary Bettman, the application eludes to the complete renovation taking place over several off-seasons, which would result in accommodations for the Utah Jazz and an NHL franchise team when completed.

“SEG proposes to develop the Project Area as a sports and entertainment district with a variety of commercial uses, including but not limited to retail uses, restaurants, hospitality, multi-family residential, and other entertainment and cultural uses and parking,” the application said.

Exhibit C is written as such:

“SEG presently leases the block on which the Delta Center is located from the Redevelopment Agency of Salt Lake City. SEG proposes a new 99-year lease for that block upon substantially the same rental terms. SEG also proposes to lease the two additional blocks to the east of the Delta Center from Salt Lake County. SEG anticipates that its lease with Salt Lake County will be on substantially the same financial terms as the existing lease with the Redevelopment Agency of Salt Lake City for the Delta Center property. Development of the Project Area, including the Delta Center remodel will require substantial redevelopment, urban renewal and reconstruction, which will likely include the re-routing, permanent closure and/or bridging of certain surrounding streets.”

The application described the use of public financing to offset private investment and maximize the “overall positive impact of the project to the surrounding community”.

It said, “For that reason, SEG is requesting the City’s creation and endorsement of the Project Area and corresponding participation agreement. Upon approval of the Project Area by the Revitalization Zone Committee contemplated by Section 63N-3-1306 of the Revitalization Zone Act, SEG is also requesting the City’s final approval of the Project Area and participation agreement and the imposition of the full .5% sales and use tax authorized by Section 59-12-402.5 of the Revitalization Zone Act (the “Revitalization Sales Tax”) for a period of thirty (30) years.”

Citing long-lasting positive impacts, including job growth, increased property value in surrounding areas and a tourism increase, the application said, “SEG may require tax increment financing and the creation of a public infrastructure district.”

“SEG believes the Project Area and the surrounding areas will become a desired destination where both Utah residents and tourists will want to regularly visit, shop, recreate, gather, work and live,” the application said. “Finally, SEG is proposing revisions to the City’s existing zoning ordinances applicable to the Project Area, including the elimination of a maximum height limitation and the identification of “arenas,” “stadiums,” “heliports,” “parking, commercial” and “parking, off-site” as permitted uses in the applicable zone or zones.”

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