A Downtown Salt Lake revitalization could be beneficial. How could it come to life?

SALT LAKE CITY – Smith Entertainment Group’s proposed Downtown Salt Lake revitalization of the area near the Delta Center has the potential for a big impact on Salt Lake. 

According to Keven Rowe, a member of Buchalter Law Firm’s real estate practice group, the impact “depends on how much they actually do.” 

Specifically, Rowe said that revitalizing the area east of the Delta Center could bring more traffic to surrounding areas. Specifically, he mentioned The Gateway. 

“I think it [has] suffered from being a bit isolated from the main downtown core area,” said Rowe. 

In the early 2000s, The Gateway was a bustling entertainment destination filled with stores and restaurants. However, its popularity eventually declined as City Creek was developed. According to a post on the Kem C. Gardner Policy Institute’s blog, Vestar, the current owner of the property, has been working to make it a “social hub.”

The Gateway is yet to be mentioned in any of Smith Entertainment Group’s proposals to revitalize the area near the Delta Center. However, the center is nearby. 

Securing funding for Downtown Salt Lake revitalization

According to Rowe, there are a couple of ways that Smith Entertainment Group could fund the Salt Lake revitalization.

Firstly, the company could get money from a bill that passed during the 2024 legislative session. According to Rowe, it is contingent upon successful negotiation between SEG and Salt Lake City. 

“[The] Utah State Legislature passed a bill that provides them sales tax incentive to use for their development,” said Rowe. 

S.B. 272 opened up the opportunity. It established a revitalization zone in Downtown Salt Lake City. Since the legislation passed, KSL.com reported that SEG has applied to lease the two blocks east of the Delta Center. The company currently owns the Delta Center. 

Related: Utah lawmaker asks for $1 billion for an NHL stadium in Salt Lake City

“It provides for [a] half percent sales tax increase for Salt Lake City residents. All of the money would go to the project area,” said Rowe. 

The company has asked the Salt Lake City council to approve the sales tax increase. They are still waiting for approval.

“Beyond that, they would have to come up with private funds,” said Rowe. 

Who gives the green light?

Rowe said that the public will not have an opportunity to vote on the proposal. 

“The way I understand the legislation is that the public wouldn’t have a vote, with respect to that agreement and the bill that was passed,” said Rowe. 

According to Rowe, the agreement would need to be approved by the Salt Lake City council, the mayor, and a three-person committee appointed by the legislature.