SLC is hours away from a key vote on Ryan Smith’s downtown sports district. Watch it here.

The Salt Lake City Council is poised to cast a key vote Tuesday evening on Utah Jazz owner Ryan Smith’s proposal to transform three downtown blocks into a new sports, entertainment, culture and convention district that will be home to his NBA and NHL franchises.

The multibillion-dollar project, on the fast track to gaining approval under a timeline set by the Utah Legislature, needs the council’s endorsement of an agreement between the city and Smith Entertainment Group to move forward.

The council is slated to cast its first vote on the pact at its 7 p.m. meeting. You can stream the meeting here:

Approval of the agreement is one of the final steps before the council considers a half-a-percentage-point sales tax increase that would funnel $900 million of taxpayer money into the district.

What is in the agreement?

Salt Lake City officials released the full 136-page document Friday after revealing an abridged version earlier last week.

The accord, known within City Hall as the “participation agreement,” includes details about funding timelines, public benefits, cost estimates, and plans for dealing with public safety and homeless camps.

The agreement calls for around $525 million of the city’s $900 million contribution from the tax hike to go toward renovations for the Delta Center. The remaining $375 million would go toward investment within the district but outside of the arena.

While work on the Delta Center is scheduled to begin in April and wrap up in 2027, the rest of the entertainment district isn’t expected to be completed until 2033. The agreement sets a deadline of 2034 for all projects that would use city funds.

The district would include the block that is home to the arena and two blocks to the east.

In exchange for the nearly $1 billion in public funds, SEG’s NBA and NHL franchises must play all home games at the Delta Center for the next 30 years — or face steep penalties. The agreement stipulates that SEG would have to pay up to $125 million if either team leaves the arena in the first 15 years, or $250 million if both leave, with the penalties decreasing by about $16 million a year after that.

And if both teams leave, SEG could be required to repay whatever part of the $900 million it had received up to that point.

The agreement would create a public benefit fund through a fee on tickets sold at the Delta Center beginning July 1, 2025. This fund would pay for the restoration of Japantown, public art installations, affordable housing and other city initiatives.

What comes next for SLC’s sports district?

If the council approves the agreement, the document will head to the Legislature’s Revitalization Zone Committee — made up of four state legislators and one member appointed by the governor — which can either approve the pact or send it back to the city for further negotiations.

If that panel approves the agreement, the city could move forward with a vote on the sales tax hike.

The agreement must be approved by Sept. 1 for the council to move forward with the tax vote. Council members would then have until year’s end to approve the tax boost.

Smith’s group has pledged at least $3 billion of its own money to the project.

— This story will be updated.