SLC Council gives final approval to sales tax increase for a sports and entertainment district. 

• wikicommons

At a packed meeting on Tuesday, the Salt Lake City Council officially gave Smith Entertainment Group the stamp of approval to develop a new Sports, Entertainment, Culture and Convention District downtown. The approval came after nearly 40 public commentators expressed mixed opinions on the project.

The Council also passed a joint ceremonial resolution with Mayor Erin Mendenhall recognizing the second Monday in October as Indigenous Peoples Day in Salt Lake. They also adopted a zoning change that would facilitate the construction of an urban hospital on State Street and adopted more adjustments to the Fiscal Year 2024-25 budget.

Entertainment District Approval
After listening to more than 90 minutes of public comment, the Council unanimously voted to approve the participation agreement between Salt Lake City and Smith Entertainment Group (SEG), giving SEG the green light to start developing a new Sports, Entertainment, Culture and Convention District downtown. The project comes at the cost of a 0.5% sales tax increase in Salt Lake City which will be in effect for up to 30 years.

Before the vote, the Council held a public hearing where they heard from nearly 40 constituents and stakeholders. Commenters expressed mixed opinions on the project.

Some speakers, like Natalie Gochnour, an economist and associate dean of the University of Utah’s business school, expressed her support of the project.

“City building is a relay race. Don't drop the baton,” Gochnour said. “Let's stay focused and unified and invest in this incredible city.”

• Smith Entertainment Group
• Conceptual renderings show a redesigned Delta Center and plaza, which would anchor a proposed sports and entertainment district in west downtown Salt Lake City.

Other downtown stakeholders, including representatives from the Downtown Alliance, University of Utah, Utah Symphony and Utah Restaurant Association, also expressed their support and excitement for the project.

“We support the district, knowing that our organization will be a cultural cornerstone,” said Steve Brosvik, president of the Utah Symphony. “We all agree that the foundational presence of the arts makes this district unique from others across the country.”

However, Brosvik, as well as a handful of other speakers, emphasized the importance of investing in Abravanel Hall and ensuring it receives funding for improvements and maintenance.

The participation agreement between the city and SEG does not include financing for Abravanel Hall. This is because the hall is owned by Salt Lake County, not Salt Lake City. However, County Mayor Jenny Wilson has publicly expressed her commitment to preserving Abravanel. Additionally, the state’s Revitalization Zone Committee recommended the city and SEG “prioritize an Abravanel Hall renovation that preserves it in its current location.”

Jani Iwamoto—a former state senator and member of the Japanese Community Preservation Committee—thanked Mayor Erin Mendenhall, the Council, SEG and others for including and listening to Japantown stakeholders in the development of this project. Meanwhile, Brent Koga, board member of the Salt Lake Buddhist Temple, said he hopes Japantown is continuously considered throughout the development of this district.

“We've always wanted a seat at the table. We don't want a seat at the kid's table,” Koga said. “We want to actively participate in what's going on on Japantown Street, not be told six months later what's been done to us.”

But other commenters said the implementation of a sales tax increase to fund the project was unfair to Salt Lake residents and could have unintended consequences. Some thought the sales tax increase should have been put to a public vote.

Scott Johnson described his concern that the sales tax could cause tax elasticity, or the idea that increased taxes within Salt Lake City would prompt consumers to spend more of their money outside the city limits.

“The rushed timeline created by the Legislature and Smith Entertainment clearly didn't allow enough time for these concepts and risks to crystallize and be analyzed, and that's a major problem,” Johnson said.

Former Salt Lake City Mayor Rocky Anderson passionately opposed the agreement. His statement was met with scattered applause after its conclusion.

“If you can't say ‘no’ to the suppressing deal, then we the people will do it for you,” Anderson said. “If you pass this heinous ordinance tonight, we, the people, will run a referendum. We will get enough petition signatures to get the matter on the ballot. Then we will overturn your ordinance.”

Later in the evening, the project was officially put to a vote. Each councilmember expressed their support for the project and belief in its benefits. Councilmember Darin Mano, however, was absent.

“Today's vote marks a new age for our city,” Councilmember Eva Lopez Chavez, who represents downtown, said. “It's something that has been carefully crafted by the support of endless hours dedicated by city staff and the thousands of hours of public comment, emails, texts, letters and conversations with constituents and business input.”

Councilmember Alejandro Puy made a point to emphasize that the sales tax increase will not apply to groceries. It doesn’t apply to gas or large purchases, like cars, either.

“The success of our city is intrinsically attached to our downtown,” Puy said. “A dying downtown will mean a shrinking tax base, a lack of an anchor, a failure to ensure safety, not enough resources to pay for our growing population—our downtown dying means the death of all of our dreams, really.”

Council chairperson Victoria Petro also shared her belief in the project and emphasized the work put behind it.

“No detail has gone unexamined,” Petro said. “I can look my constituents in the eyes and say in good faith that this investment—because it is not a subsidy, it is an investment—in ourselves, is worth it.”

Indigenous Peoples Day
The Council, alongside Mayor Mendenhall, unanimously adopted a joint ceremonial resolution declaring the second Monday in October (Oct. 7) as Indigenous Peoples Day.

“Salt Lake City recognizes the city is built upon the homelands of the indigenous peoples of this region, whose histories are intertwined with the settlement of Salt Lake City,” Lopez Chavez read from the resolution. “The Salt Lake City council and Mayor of Salt Lake City strongly support that Indigenous Peoples Day shall be an opportunity to celebrate the thriving cultures and values of the Indigenous peoples of our region.”

Shelby Chapoose, executive director for Indigenous Health and Wellness Connections, accepted the resolution.

“The city of Salt Lake is on what will forever be Indigenous land,” Chapoose said. “I thank you for taking this step forward and acknowledging that. I look forward to assisting in the continuation of the progress that this motion will have for my communities.”

State Street Hospital
The Council approved a rezone that will facilitate the construction of a hospital by Intermountain Healthcare at 754 S. State Street. The property was previously home to the Sears department store, which was demolished in 2022.

At a previous council meeting, constituents expressed concern that the construction of a hospital on this lot wouldn’t align with community needs in the area, including ground-level street activation and economic development.

The rezone requires Intermountain Healthcare to enter into a development agreement with Salt Lake City. The agreement, according to a staff report on the item, will require the hospital to implement ground-level activation in its design and include a minimum of one acre of open space with vegetation and trees.

“Intermountain Healthcare is going to create its urban hospital here in Salt Lake City, and has chosen that intentionally,” Lopez Chavez said. “District Four is one of the greatest users of intakes or outbound services for mental health and other resources that the nonprofit hospital provides. So I’m very excited to work alongside all of you in ensuring the success of this project.”

Sugar House Promotion
The Council also adopted two of the remaining line items in Budget Amendment No. 1. One of these items includes $50,000 for economic promotion in Sugar House. This is intended to mitigate the effect that construction on 2100 South has had on businesses in the area.

“This ask today is a product of the Sugar House Chamber, the Sugar House Community Council, the mayor's administration and the construction project teams coming together to create that solution as a community,” Councilmember Sarah Young, who represents Sugarhouse, said. “If I can just encourage every single one of you to shop in Sugar House, that is how I'd like to end my comment.”

Lopez Chavez also thanked Young for her commitment to the Sugar House area.

“Just to remind my colleagues, we have many capital improvements and construction projects ahead of us,” she said. “We need to consider policies and funding and mechanisms to help the distress and the revival of these small businesses.”

The other item provided one-time funding of $450,000 for governmental immunity claims.