Updated Smith Entertainment Group proposal includes tax hike, new Delta Center ticket fees

SALT LAKE CITY — Smith Entertainment Group’s adjusted agreement with Salt Lake City over a revitalization district includes a proposed tax increase and new ticket fees for Delta Center events.

The Salt Lake City Mayor’s Office unveiled the latest proposed agreement during an update to the Salt Lake City Council on Tuesday. It outlines funding sources, some timelines and other terms that the two sides have agreed to over the past few months.

The agreement includes language that Smith Entertainment Group can receive up to $900 million from a possible 0.5% tax increase that will be voted on sometime this year after an agreement is secured. Salt Lake City would also receive up to 1% of the revenue that the tax generates.

Smith Entertainment Group would also impose a new ticket fee for events at the Delta Center beginning on July 1, 2025, which would go toward investing in the district. There would be a $1 fee per ticket under $25, a $2 fee for tickets $25-200 in cost and $3 for tickets greater than $200.

Of the tax revenue collection, $525 million would go toward remodeling the Delta Center so that it can host both the Utah Jazz and Utah Hockey Club. The remaining $375 million would go toward other district improvements. Projects that receive sales tax funding are to be completed by the 10th anniversary of the agreement, setting up a potential 2034 deadline.

Smith Entertainment Group would also be allowed to plan, build and maintain gathering and event spaces within the district, but they would be required to offer some time for city events. Some space for police and security guards will also be required, according to the agreement.

The agreement would also generate several benefits back to Salt Lake City. The new Delta Center ticket fees would go toward a city-managed account that would be spent on “family-sized and affordable housing and other public benefit initiatives as determined by the city.”

Other 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 NBA and NHL teams would also have to conduct at least four speaking engagements with student groups and schools.

The deal also requires Smith Entertainment Group to coordinate with the Japanese Church of Christ and Buddhist Temple over the handling of historic Japantown in the area over the next three years. The company will look to “activate” the north side of 100 South in the historic district, matching Salt Lake City’s plans for the area.

The future of Abravanel Hall and other Salt Lake County buildings were not included in what Salt Lake City released Tuesday. The fate of those buildings will be determined by Salt Lake County.

The document notes that Smith Entertainment Group agrees that it will continue to negotiate a lease with Salt Lake County for land east of the Delta Center, which is a major condition for the project to move forward. It has until July 1, 2025, to secure a lease as “a condition precedent to the effectiveness of the agreement.”

Salt Lake City would also receive “a variety of remedies, including specific performance or payment of damages” should either the Jazz or Hockey Club cease “to play its home games at Delta Center.”

The Salt Lake City Council is expected to vote on the agreement next week, but Salt Lake City attorney Katie Lewis said there could be some final tweaks to the agreement by the potential July 9 vote.

This story will be updated.