SALT LAKE CITY — A billion dollar piece of legislation that would create an "entertainment and sports" district in Salt Lake City has been filed in the Utah State Legislature.
It is the pathway for a National Hockey League arena. Senate Bill 272, sponsored by Sen. Dan McCay, R-Riverton, would allow Salt Lake City to raise sales taxes to help fund it through a bond.
"One thing I love about a consumptive tax is you get to choose how much you pay, right?" Sen. McCay told FOX 13 News in an interview Thursday. "The initial revenue estimates show this is a billion dollars. Salt Lake City still has to meet and impose the tax. This is an opportunity. The state is working with the city to create and really try and make a positive influence downtown."
Utah Jazz owners Ryan and Ashley Smith have been working to lure a professional hockey team to the state. During a hearing on Thursday before the Senate Revenue & Taxation Committee, Ryan Smith urged support.
"The idea of professional sports in a city in a downtown is the greatest anchor tenant that a city could have, hands down," he said. "The opportunity to have multiple professional sports downtown can transform and revitalize a city is almost irreplaceable."
Salt Lake City Mayor Erin Mendenhall was also supportive.
"What this bill enables will be truly transformative for Salt Lake City, Salt Lake County and the state of Utah," the mayor said during the hearing. "Changing not only our arts and entertainment offerings but reconnecting our city from east to west side in the downtown core, elevating our convention industry and welcoming the world."
But political leaders have been opposed to using taxpayer dollars to directly fund a stadium. The sales tax mechanism for a bond is believed to be a way around that. Similarly, a bill to build a Major League Baseball stadium in Salt Lake City would raise hotel taxes and rental car fees which are largely paid for by visitors.
The Utah Taxpayers Association said it was neutral on the bill, but supported the MLB bill tax proposal.
Where would an NHL arena go? There is the potential that the Delta Center gets remodeled to accommodate the Jazz and any potential team. But testimony also signaled an area behind the Salt Palace Convention Center known as "Japantown." Mayor Mendenhall vowed the Japanese-American community would be involved in any negotiations that impact that area.
SB 272 passed unanimously and now goes to the full Senate for a vote.
