SALT LAKE CITY — A $900 million bill crafted to revitalize the west side of the city and help build a Major League Baseball stadium is advancing.
The House Government Operations Committee voted 8-2 to support House Bill 562, which would raise hotel and car rental taxes statewide to help fund what would ultimately be a state-owned stadium across from the Utah State Fairpark.
"It creates the district, the mechanism by which these things can be accomplished," Rep. Ryan Wilcox, R-Ogden, told the committee.
At Friday's hearing, the bill had support from Salt Lake City's mayor, City Council chair and west side community leaders who viewed it as a massive economic boost for a long-neglected portion of the city.
"We’re confident at this point, people are saying all the right things, and it’ll be catalytic, something to really maximize the potential for that area. We do want to make sure our voices are at the table," said Dan Strong, the president of the Westside Coalition.
Hoteliers raised concerns about the tax hike disproportionately impacting them and warned that not all of the tax increase would be absorbed by out-of-state visitors.
"We support Major League Baseball, I want to be clear, coming to the market," said Jordan Garn with the Utah Hotel & Lodging Association. "It will enhance our brand, it will enhance our market as a destination. The only thing I’m concerned about is that hotels share a disproportionate share of the cost without a disproportionate share of the benefit."
Salt Lake City Mayor Erin Mendenhall spoke in support of the bill, but added the city was still negotiating with lawmakers about city land use authority.
"There are some critical issues that are in the first draft of the bill that we are collaboratively working through and I have great confidence we will be able to resolve those critical issues," she said.
Rep. Sandra Hollins, D-Salt Lake City, told FOX 13 News she did not share those concerns but said she was willing to work with the mayor on it.
"I have been receiving lots of positive feedback from my constituents in that area. They have been wanting development in the area, economic development in the area," she said.
The bill won support from rural county commissioners who appreciated a .01% earmark in the tax increase for rural emergency medical/search and rescue operations as they deal with a boost in visitation and their support for revitalizing the Fairpark area.
"The majority of rural commissioners are going to be very supportive of this and we all love baseball," Beaver County Commissioner Tammy Pearson told FOX 13 News.
The Larry H. Miller Company is purchasing land from Rocky Mountain Power across from the Utah State Fairpark for a massive development called "The Power District" as they also seek to lure a professional baseball team to Salt Lake City. The company said it was investing $3.5 billion in the area, separate from the MLB expansion. The state would purchase the land for a stadium and invest roughly $840 million through the hotel tax increase, which is a way around having taxpayers directly funding a stadium (as Utah political leaders have said they do not favor).
The state would then own the stadium. A portion of the bill earmarks income tax generated from visiting pro baseball players to a fund for at-risk children.
In a brief interview with FOX 13 News after the hearing, Steve Starks, the CEO of the Larry H. Miller Company, said he was feeling confident about Salt Lake City landing a team.
"We don’t want to be presumptuous in any way, but we’re really confident based on the way the state’s growing, our support, our economy that we’re the ideal location for a Major League Baseball team," he said.
Salt Lake City Council Chair Victoria Petro joked she looked forward "to cheering on the Salt Lake City brine shrimp?"
