Utah bill would help county finance downtown SLC overhaul, potentially transfer road to city

SALT LAKE CITY — Salt Lake County could be drawing from a new revenue source to pay for major renovations to the Salt Palace Convention Center as negotiations continue over a massive overhaul of downtown Salt Lake City surrounding the Delta Center.

The Utah Senate Revenue and Taxation Committee voted 3-1 Monday to advance SB306. The bill wouldn’t add any new taxes; rather, it authorizes the county to use the revenue it already collects from transportation taxes to be used for an overhaul of the convention center.

“Salt Lake County has now asked that we prepare a method to help finance their ability to replace parts of the convention center, and that’s the purpose of this bill,” said Sen. Dan McCay, R-Riverton, the bill’s sponsor.

The bill also opens the door for ownership change of 300 West downtown, but McCay said that section would likely go through revisions.

Funding a costly project

SB306 follows legislation McCay sponsored last year. A 2024 bill created the downtown revitalization zone and a process for Salt Lake City and Smith Entertainment Group to enter into a partnership while the company was in the middle of its pursuit of an NHL franchise.

Smith acquired and relocated the Arizona Coyotes to Utah shortly after the Legislature convened, sparking intense negotiations between the entities before a strict deadline outlined in the code. The two sides finalized a partnership and a 0.5% sales tax increase in October 2024, shortly before Utah Hockey Club’s inaugural regular season began.

However, its deal was also contingent on agreements between Smith Entertainment Group and Salt Lake County, as the group’s plans included an overhaul of the two blocks east of the arena.

Renderings show that Smith wants to cut the Salt Palace in half, reopening a section of 100 South that is buried underneath the massive building. It would allow for a pedestrian plaza and building heights would be increased on both sides.

County officials have been supportive of the plans but said late last year they’d seek additional help from the Utah Legislature to overcome the cost burden associated with the project, which could exceed $1 billion.

Salt Lake County Mayor Jenny Wilson, who attended Monday’s meeting in support of SB306, said the county wants to use its “fourth quarter” transportation dollars toward the project.

She contends it wouldn’t impact county transportation much because the state and cities maintain the majority of roads and other transportation systems across the county.

After the meeting, Wilson said the county is still working on a design for walkability between City Creek Center and the Delta Center. She said it would be a “win for the community,” making it easier to navigate in areas currently blocked by the convention center.

The bill, she says, would cover a “fairly minimal amount” of the estimated cost without any tax increases. Yet, it’s an “important piece” in a “shared investment” between the city, county and state. She said the county is looking at other options, but those are yet to be determined.

None of the money would be used toward Delta Center renovations. The county is also not exploring a public bond.

Wilson also sees it as an “investment,” as a second ballroom could potentially double revenue. The county is also looking at ways to complete construction without impacting conventions from taking place.

“Downtown will be under construction once we get all the revenue streams identified,” she said. “We’re working to support a plan that will mitigate some of the construction phase, and allow us to continue sections of the Salt Palace.”

Handling 300 West

Another section of SB306 tweaks the U.S. 89 route language, transferring ownership of 300 West by the Delta Center from the state to Salt Lake City.

McCay explained the road, which is the busiest downtown, continues to be an active challenge in revitalization plans. The biggest financial impact of the measure could be to Salt Lake City, which would oversee future road maintenance.

“The city hasn’t expressed any concerns thus far in maintaining that road,” he said.

Current renderings call for 300 West to be tunneled underneath a plaza, but that also has raised questions about the impact it would have on the highway. SB195, which the Senate passed last week, also calls on the Utah Department of Transportation to study the issue. That bill garnered backlash from Salt Lake City because of concerns that it could pause safety plans from being enacted across other roads.

There’s also a bit of a rift between the two bills. Sen. Wayne Harper, R-Taylorsville, and sponsor of SB195, was the lone vote against SB306 in Monday’s meeting. While he voted against it, he acknowledged that a substitute is in the works.

Salt Lake City officials told KSL.com that nothing is set in stone. The city remains in discussion with legislators, county officials, Smith Entertainment Group and UDOT on project details.

As for SB195, Rep. Angela Romero, D-Salt Lake City, filed a proposed amendment that would clear up the city’s concerns.

All bills must be approved by the Senate and House of Representatives by March 7. McCay indicated that 300 West could also be an issue that trickles into 2026.

“We don’t have a great answer yet,” he said. “What I think we’ll end up seeing … a change to the language here that will give UDOT and the city some options to consider and then come back to (the Legislative Management Committee) or to us in the next session with a final solution.”

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