SALT LAKE CITY — A bill introduced in the Utah State Legislature would earmark $900 million for a new state-owned baseball stadium in Salt Lake City, but local taxpayers will not be left on base holding the bill.
Instead, Rep. Ryan Wilcox, R-Ogden, is proposing that House Bill 562 increase hotel, resort and car rental taxes.
"We're talking over a $4 billion dollar project," he told FOX 13 News on Wednesday. "It’s $2 billion alone just in franchise fees. Just to get the team here. The stadium itself is another $1.8 billion, we’re talking about. The state side is including a 1.5 percent increase in the [transient room] tax. That primarily applies to people coming in and staying in hotels from out of state often. It includes a small portion for car rentals."
The mechanism would ease the burden on Utah taxpayers. State political leaders have told FOX 13 News they do not favor taxpayer money directly going to fund stadiums. But these types of tax increment financing deals are a way to avoid that.
HB 562 also offers support for rural Utahns. A portion of that hotel and resort tax increase would be earmarked for rural communities that have seen a surge in tourism.
"As we’ve invited the world here with the Mighty 5 and everything else, we’ve also put a large strain on rural EMS on search and rescue teams throughout the state that have frankly hampered our ability to function and take care of our own people," Rep. Wilcox said. "So this provides a funding mechanism as well for them. That goes into effect immediately on bill passage."
As Utah ramps up its efforts to land a Major League Baseball expansion team, the stadium would be the centerpiece of a mixed-use development project in the Power District just west of downtown Salt Lake City, across from the Utah State Fairpark. Gail Miller's family has already pledged $3.5 billion of private money towards the project.
Salt Lake City is seen as one of the favorites to land an expansion franchise whenever Major League Baseball decides to add two new teams, although that decision is not expected to be made for another 4-5 years.
But another unique aspect of HB 562 is that the stadium would be owned by the state of Utah. Rocky Mountain Power is selling the land to the Larry H. Miller Company, which will turn around and sell a small portion of the stadium land to the state to run. Rep. Wilcox acknowledged it is unusual, but he argued it is a good thing for the state.
"It will be a state asset that we will pay less than half of the cost to build," he said.
On Wednesday, representatives of the Larry H. Miller Company met with House Democrats to sell them on the idea.
"We are excited about this historic investment and catalytic development on Salt Lake City’s west side. We have continued to learn from residents and leaders about their ideas for the project and you’ll see those incorporated into our plans. We have widespread support and have been meeting regularly with leaders. We look forward to building this new gateway to our Capital City together," the company said in a statement to FOX 13 News afterward.
Rep. Sandra Hollins, D-Salt Lake City, whose district includes the new stadium grounds, co-sponsored a resolution to support an MLB team in Salt Lake City. She told FOX 13 News she was still reviewing the bill, but was supportive of the concept as were her constituents.
"They’re excited about the ability of this coming to the west side," she said. "Of course, they want to make sure everything, the neighborhood and community members are taken care of and the community is preserved. That’s a conversation we’ve had, we’ve been in conversation with the Larry H. Miller group and they’ve been open to listen to our concerns and meeting with community members about what their wants and their vision is."
Salt Lake City government is also reviewing the bill.
"While we are excited about and supportive of the possibility of bringing Major League Baseball to Salt Lake City, this bill creates immediate concerns about the apparent diversion of tax revenue and land use away from city services, regardless of whether we ever see a MLB team in Utah. We will defer substantive comment until the city's attorneys have fully reviewed the legislation and its impacts on Salt Lake City," said a spokesperson for Mayor Erin Mendenhall and the City Council.
It is not the only major sports bill to emerge in the Utah State Legislature. Late Wednesday, Senate Bill 272 was introduced by Sen. Dan McCay, R-Riverton. The bill would create a "sports and entertainment district" in Salt Lake City for a National Hockey League team.
A hearing on that bill was scheduled for Thursday evening in the Senate Revenue & Taxation Committee.
