CAPITOL HILL—A bill to catalyze development around the Utah State Fairpark and pave the way for a Major League Baseball stadium in the west side's Power District is headed to the governor's desk after receiving final approval from the Legislature on Wednesday.
Bipartisan majorities in both the House and Senate signed off on HB562, which creates a new land-use district, overseen by a five-member board, with the power to leverage as much as $900 million in bonds and tax increment financing against a pledged $3.5 billion in private investment to transform what is currently a sprawling Rocky Mountain Power campus surrounded by highways, trails and light rail transit.
"Whether or not a baseball team comes to the state as a result of this, the redevelopment of that area is ongoing," said Sen. Lincoln Fillmore, R-South Jordan, the bill's Senate sponsor.
Earlier versions of the bill considered new statewide taxes, particularly involving hotels, to finance the effort. But the final language removed those elements, instead empowering the district's board to levy certain taxes within the footprint of the district itself and adding a 1.5% increase to the sales tax on vehicle rentals, but only in the event that Utah succeeds at landing an MLB expansion team.
Beyond the baseball stadium, the surrounding Power District is slated to welcome dense, mixed-use housing and retail amenities, while the State Fairpark is in need of significant maintenance and rejuvenation, all of which would be facilitated by HB562.
"There’s no new taxes in this bill, with the exception of a rental car tax," Fillmore said. "But that’s contingent some years down the road."
The provisions of HB562 also dictate that any potential stadium would be state-owned and operating on public land, with a hypothetical tenant paying to lease the property.
“If you don’t run to your position, someone else will," said bill sponsor Rep. Ryan Wilcox, R-Ogden. "We have a generational opportunity, right now, to communicate in the clearest terms possible that Utah is indeed ready for Major League Baseball. We’re excited for the opportunities HB562 brings to our capital city, our state, and of course, Utah’s families for generations to come.”
Senate President Stuart Adams, R-Layton, noted that rental car taxes are primarily paid by out-of-state visitors, which largely limits the impact on Utah taxpayers to economic activity that occurs directly within the district itself.
"Most of the Utah car rentals are exempt," Adams said. "It's pretty much only tourists."
Democrats in the Legislature who represent Salt Lake City's west side were supportive of the proposal. Senate Minority Leader Luz Escamilla said the increased investment will benefit areas that have struggled to thrive under current conditions, and noted that the final version of HB562 broadened the membership of the district board to include a member of the West Side Coalition, in addition to a member representing Salt Lake City's interest.
"We've been waiting for this for decades," Escamilla said. "There's excitement and there's [west side] representation on the board."
Rep. Angela Romero, the House Minority Leader, acknowledged that some Utahns might object to offering taxpayer support and incentives to the establishment of a private sports franchise. But she added that the aim of the bill goes beyond a potential stadium and includes necessary investments around the Jordan River and North Temple, where unsanctioned camping and open-air drug transactions are prevalent.
Romero said she was excited to see North Temple revitalized as the western gateway to Salt Lake City, and that she was willing to take whatever political hit might come from detractors of the proposal.
"[My constituents] wanted to see this happen because they feel like we need more help when it comes to the Jordan River Parkway," Romero said. "There are some parts of the Jordan River Parkway where I don't feel safe to walk any more."
Deliberations are ongoing on a second proposal to create a sports and entertainment district in downtown Salt Lake City, aimed at luring a National Hockey League team to a combined hub with the Utah Jazz. That proposal is likely to include similar tax increment financing and incentives, though final details are still pending.
Sen. Jerry Stevenson, R-Layton, noted that the state has many land-use districts of this nature, describing them as a mechanism to attract private investment.
"This is not a new thing for the state of Utah," Stevenson said. "We've created land use authorities and they've been very successful."