SALT LAKE CITY — A tweaked agreement between Smith Entertainment Group and Salt Lake City’s redevelopment district includes proposed tax increases and new ticket fees for Delta Center events, but will fund new affordable housing and other provisions that will benefit Salt Lake City.
The Salt Lake City mayor’s office released an outline of the latest proposed agreement during a report to the Salt Lake City City Council on Tuesday, and a full version is expected to be released by Friday, before the City Council votes on the measure, possibly next week, according to Salt Lake City Mayor Erin Mendenhall.
“I feel great about the public interest, the safety of our team and the revitalization of not just the Delta Center but so much more,” the mayor said after the presentation. “We have partners across the district who share the same vision of supporting Salt Lake for the next 30 years.”
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Salt Lake City, Smith Entertainment Group and Salt Lake County have already released many details about the “sports, entertainment, cultural and convention district” that will be built around a renovated Delta Center, which will be home to the NBA’s Utah Jazz and the NHL’s Utah Hockey Club.
Tuesday’s announcement outlined funding sources, some timelines and other terms agreed to by the two sides over the past few months.
The updated agreement includes language that would allow Smith Entertainment Group to receive up to $900 million from a 0.5% tax increase that could be voted on later this year after the deal is passed. Salt Lake City would receive up to 1% of the revenue generated by the tax increase.
Smith Entertainment Group will implement new ticket fees for events at Delta Center starting July 1, 2025, to help fund investments in the district: a $1 fee for tickets under $25, a $2 fee for tickets between $25 and $200, and a $3 fee for tickets over $200.
Of the tax revenue, $525 million would help pay for renovations to the Delta Center to host games for both the Utah Jazz and the Utah Hockey Club. The remaining $375 million would go toward other neighborhood improvements. The projects funded by the sales tax are to be completed by the 10th anniversary of the agreement, which could be as late as 2034.
![A rough rendering shows what the plaza outside the Delta Center in downtown Salt Lake City could look like.](https://img.ksl.com/slc/2997/299727/29972708.jpeg?filter=kslv2/inline_lg)
Smith Entertainment Group will also be permitted to plan, build and maintain meeting and event spaces within the district, but will be required to provide a set number of hours for city events. Space will also be required for police and security, according to details released Tuesday.
The agreement would also provide some benefits to Salt Lake City: Admission fees for the new Delta Center would be deposited into a city-controlled account and used for “family and affordable housing and other public benefit programs as determined by the City,” according to the document.
Other perks include new internship, shadowing and apprenticeship programs for high school and college students, increased youth programming for Salt Lake City-based community organizations, and free or subsidized tickets. NBA and NHL teams will be required to hold at least four speaking engagements per year with student organizations and schools.
“Our goal is to do this out of a sense of mission to enhance downtown,” said Mike Morgan, project director for Smith Entertainment Group, “because we’re investing in Salt Lake City, we’re investing in the region and we’re investing in the state of Utah.”
The agreement also calls for Smith Entertainment Group to coordinate with the United Church of Christ in Japan and the Buddhist temple over the operation of the area’s historic Japantown for the next three years. The company aims to “revitalize” the area north of 100 South in the historic district, which will include similar plans Salt Lake City has in mind for the area.
Jani Iwamoto, a former state senator and founding member of the Japanese Community Preservation Committee, sat in on the work session to hear what the local agreement would include, and she left feeling positive about the direction the negotiations are heading.
“There’s no way to replace what was lost, but we want to preserve what we can and continue to protect our history because the history of the Japanese in the late 1800s is an important story that needs to be preserved, just like any other community,” she said. “I felt that responsibility on the city council.”
Still, many residents were not impressed.
Dozens of residents attended or were called to a formal City Council meeting Tuesday evening to slam the plan and its new details, with some residents suggesting the plan requires more public involvement.
“Frankly, I’m sick of the suggestion of putting a fee on tickets because it somehow creates a slush fund for the city,” resident Jen Colby said. “(Ryan Smith) could pay it directly with his billion dollar fund, or if he doesn’t want to do that, he could just charge a fee and pay it back.”
More details about the agreement are expected to be released by Friday, including public safety, homelessness and parking plans that state law requires be included in the agreement. Mendenhall said those reports have been compiled by Salt Lake City staff.
Tuesday’s summary explained that if either the Jazz or hockey clubs cancel games at the Delta Center, Salt Lake City would be subject to “various remedies, including specific performance or the payment of damages.” Details of those penalties are expected to be revealed in the final agreement.
What’s yet to be decided
The Salt Lake City City Council is scheduled to vote on the agreement next week, but Salt Lake City attorney Katie Lewis said final revisions could be made to the agreement before the vote on July 9.
Even if the City Council approves the agreement, there’s still a lot to be decided: The agreement must be approved by the state before the city council can vote on whether to approve the proposed 0.5 percent sales tax increase and zoning change request that was presented to the city council on Tuesday.
It remains to be seen how the City Council will vote, but after the information session, council members appear to be leaning in favor.
“There’s still a lot of room for incredible things to happen and for mistakes to be made,” Salt Lake City Councilman Darin Mano said. “It’s a big responsibility.”
If it doesn’t work for everyone, it doesn’t work for anyone.
– Mike Morgan, Project Principal at Smith Entertainment Group
Mendenhall is confident the plan would receive state approval if passed, arguing it would be a significant investment in the city and state’s economies.
But the outline released Tuesday also noted that Smith Entertainment Group will continue to negotiate a lease with Salt Lake County for land east of Delta Center that is outside of Salt Lake City’s control — a major condition for the project to move forward.
The document states that Smith Entertainment Group must secure the lease by July 1, 2025 as a “condition precedent to the effective date of the agreement.”
Morgan said Smith Entertainment Group is “working very closely” with the county as it considers options for Abravanel Hall, the Utah Museum of Contemporary Art and the Salt Palace Convention Center. The future of those Salt Lake County buildings was not included in Tuesday’s announcement.
Salt Lake County Mayor Jenny Wilson said she would prefer that Abravanel Hall, built 45 years ago, be preserved, but officials with the Utah Museum of Contemporary Art said last week that the museum would be demolished and rebuilt in the proposed area, a move they support.
“If it doesn’t work for everybody, it doesn’t work for anybody,” Morgan said. “Discussions are progressing well, and I’m very grateful for the collaboration with Mr. Wilson and Mayor Mendenhall.”