SALT LAKE CITY — A plan that would keep the NBA’s Utah Jazz and the NHL’s Utah Hockey Club downtown is another step closer to becoming a reality.
Members of the Revitalization Zone Committee voted unanimously Tuesday to approve a participation agreement and project area that Salt Lake City and Smith Entertainment Group agreed to in July, with some feedback for the entities to consider moving forward, including the preservation of Abravanel Hall.
“It was clear in talking with (Salt Lake City Mayor Erin Mendenhall and Salt Lake County Mayor Jenny Wilson) that this was a local need and of local importance,” said Sen. Dan McCay, R-Riverton, the committee’s chairman, after the vote.
“This desire to keep (the Jazz and the Utah Hockey Club) downtown was truly a legislative and municipal desire,” he added. “I think you see this type of investment only because the local effort wanted to keep the teams downtown and keep the downtown core vibrant.”
Tuesday’s vote isn’t the final say on the measure. It sends the agreement back to Salt Lake City leaders for final approval and a potential sales tax increase tied to the agreement.
Under the terms the two sides agreed to, Smith Entertainment Group can collect up to $900 million in bonds for projects to remodel the Delta Center to accommodate professional basketball and hockey teams, which can be repaid through a 0.5% sales tax increase in Salt Lake City over the next 30 years.
Salt Lake City would receive funds from a new ticket fee that would help pay for new affordable housing and city-related projects.
A spokesperson for the city said there’s no timeline yet for the city to finalize the deal or consider the tax increase, but the city has until Dec. 31 to vote on whether to adopt the tax.
This story will be updated.
