SALT LAKE CITY — The Smith Entertainment Group has formally submitted an application to Salt Lake City for the downtown reinvestment district, which is the procedure that must take place to both lure a team to Utah and to start things going for a new arena.
As soon as Thursday, the NHL is expected to announce that the Arizona Coyotes will officially relocate to Salt Lake City. While it's expected that the team will play in the Delta Center for a few seasons, Ryan Smith is eager to build a new arena to house both the NHL team and the Utah Jazz.
At Tuesday night’s city council meeting, council members discussed plans and timelines around the arena proposal and outlined the next steps for the process of revitalizing parts of downtown.
“This is a massive generational opportunity to do some good, and also is a massive opportunity to do this right,” said Council Chairwoman Victoria Petro.
The council discussed a proposed 0.5% sales tax increase citywide to see how that money would be used, learning from city attorney Katie Lewis about the stipulations for those public funds under SB 272.
The application by the Smith Entertainment Group is part of the process laid out by a bill that passed the state legislature earlier this year. Now, city staff are reviewing the proposal to make sure it follows the guidelines in the law – that the applicant needs to already be in contract with an NBA or NHL franchise, and proposes a project area of up to 100 acres around their home stadium.
"The application is the kick-off, sort of the initial concept, and checking the box that they meet the basic terms of SB 272,” said Lewis. “The next step, which is the negotiation of the participation agreement, is really where the specific concepts and plans are required."
Through the negotiation process, the city and applicant enter into an up to 30-year contract where both parties decide how they would use the public funds from the sales tax increase, under the stipulations in the law – and how they would develop the project area.
The participation agreement also has to explain master plans for either building a new stadium or remodeling the current one, as well as operating that stadium, transit plans, infrastructure improvements, tackling homelessness, parking proposals and public safety initiatives around the stadium — with many aspects for council members to consider.
It was just an informational meeting to help inform the public about what's going on. The council plans to have a hearing in May with the Smith Entertainment Group, and final action proposed in July.
Mayor Erin Mendenhall and the City Council issued a joint statement Tuesday evening:
Tonight, the Salt Lake City Council was updated on the progress of SB 272, the Capital City Revitalization Zone Bill, passed earlier this year by the State Legislature and signed by Governor Cox. The Salt Lake City Attorney briefed Council Members on what the legislation does and the city’s role.
Salt Lake City Corporation received an application from Smith Entertainment Group on April 4 to create a Capital City Revitalization Zone, which could facilitate redevelopment around the Delta Center. Below is a proposed timeline for the potential development agreement and potential sales tax increase.
Future dates of action:
May 7 — Salt Lake City Council follow-up briefing. Smith Entertainment Group and Salt Lake City officials will discuss proposed participation in the agreement draft.
May 21 — Public hearing on the Capital City Revitalization Zone (SB 272) agreement.
July 2 — Possible City Council vote to approve agreement.
