SALT LAKE CITY — A plan that would keep the Utah Jazz and the Utah Hockey Club in downtown Salt Lake City is another step closer to becoming a reality.

Members of the Revitalization Zone Committee voted unanimously Tuesday to approve a participation agreement and project area that Salt Lake City and Smith Entertainment Group agreed to in July, which sets up a "sports, entertainment, culture and convention district" surrounding a remodeled Delta Center.

The committee also agreed to send feedback for the entities to consider moving forward, including the preservation of the 45-year-old concert venue Abravanel Hall.

"I'm grateful to the committee for its unanimous support of the agreement that the city and (Smith Entertainment Group) negotiated, which not only creates a path for a transformative downtown sports, entertainment, culture and convention district, but also benefits Japantown, public art and every city resident," said Salt Lake City Mayor Erin Mendenhall in a statement to KSL.com after the vote.

Tuesday's vote isn't the final say on the measure. It sends the agreement back to Salt Lake City leaders for final approval and a potential sales tax increase tied to the agreement.

Under the terms the two sides agreed to, Smith Entertainment Group can collect up to $900 million in bonds for projects to remodel the Delta Center to accommodate professional basketball and hockey teams, which can be repaid through a 0.5% sales tax increase in Salt Lake City over the next 30 years.

Salt Lake City would receive funds from a new ticket fee to help pay for new affordable housing, public art within the district, and improvements to historic Japantown, which borders the project zone.

A state review

The Salt Lake City Council voted on July 9 to accept a participation agreement with Smith Entertainment Group, but that agreement required state approval from a special committee as outlined in a bill legislators approved in March that set up the process to help Smith Entertainment Group make improvements to the Delta Center.

A lot changed after the vote. While Jazz owner Ryan Smith had been vocal about bringing the National Hockey League to Utah, too, his effort to purchase and relocate the Arizona Coyotes picked up after the legislative session ended, culminating with an official purchase in April that created the Utah Hockey Club.

Participation agreement conversations with Salt Lake City leaders also started heating up in April. Details of Smith's plans emerged in May, which have centered on a remodeled Delta Center to accommodate both the Jazz and Hockey Club. The plans also requested drastic changes to two blocks east of the arena in a potential agreement with Salt Lake County.

The proposed agreement outlined other key details, including that Delta Center renovations would account for about $525 million, and the rest of the $900 million would go toward other projects within the district, such as a new plaza east of the arena.

Yet, most of Tuesday's meeting centered on an item not included in the agreement — mirroring previous public meetings. The future of Abravanel Hall accounted for a large chunk of the committee discussion and public comment period.

When pressed by the committee, Salt Lake County Mayor Jenny Wilson said both the county—the building's owner—and Smith Entertainment Group still intend to preserve the building as their negotiations continue. That wasn't always the case, but its future changed after concerns brought up by residents and fans of the Utah Symphony.

The county estimates that preserving the concert venue will cost about $200 million, but she said the agreement could open up an avenue to pay for those costs that otherwise may not exist.

"This opportunity ... I believe has captured the public's imagination for the preservation of the hall," she said. "That means — with hopefully the state's help and other partners — can come up with that bill."

Others voiced outright opposition to the deal, questioning why tax money was needed to help a billionaire owner or why the tax burden of a state bill falls entirely on Salt Lake City. Some also asked to include more projects in the funding zone, such as the Rio Grande Plan that would bury railroad tracks west of the arena.

Members of the committee appeared more concerned about the entities sticking to public safety and homelessness within the district. However, the possible benefits were too good to pass up, said Sen. Dan McCay, R-Riverton, the committee's chairman, after the vote.

He explained state leaders want to ensure that the state's political and business center continues to thrive, which could benefit the state as a whole.

The vote does come with some notes. The committee requested that Abravanel Hall remain preserved, as well as a few other elements. It wants Salt Lake City and Smith Entertainment Group to bring future development and land use plans to the committee, as well as any other major updates, as it keeps tabs on what's happening downtown.

"It was clear in talking with (Mendenhall and Wilson) that this was a local need and of local importance," McCay said. "This desire to keep (the Jazz and the Utah Hockey Club) downtown was truly a legislative and municipal desire," he added. "I think you see this type of investment only because the local effort wanted to keep the teams downtown and keep the downtown core vibrant."

What happens next?

The committee's approval is a major step for the plan, but it's not the last step in the process. The Salt Lake City Council, which voted to approve zoning changes tied to the future of the district last month, still has to vote to finalize the agreement.

Related:

Salt Lake City OKs major zoning changes tied to Smith's Delta Center plans

A zoning change approved by Salt Lake City paves the way for Smith Entertainment Group's plans for a "sports, entertainment, culture and convention" district surrounding a remodeled Delta Center.

A spokesperson for the city said there's no time line yet for finalizing the deal or considering the tax increase, but the city has until Dec. 31 to vote on whether to adopt any associated sales tax increases. The deal also hinges on agreements between Smith and Salt Lake County, which remain a work in progress.

If everything comes together, most of the Delta Center remodeling will begin in 2025 and continue in phases through October 2027, according to the agreement. Many of the pieces tied to any bonds would have to be completed within 10 years.

Wilson said she believes the agreement sets up a situation that will benefit Smith Entertainment Group and the community as a whole.

"I think in this deal, everyone can win," she said. "It is a game-changing initiative for us all."

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