Estimated read time: 4-5 minutes
- Salt Lake County froze $10 million from a transportation fund as it prepares for its role in potential downtown plans.
- The funds may support a future bond to help pay for a convention center overhaul, now estimated to cost $1.1 billion or more.
- One councilman questioned the legality, urging funds go toward transportation uses.
SALT LAKE CITY — Salt Lake County leaders agreed to hold a little over $10 million from a transportation fund that could ultimately go toward a massive overhaul of the Salt Palace Convention Center, but not before a somewhat heated debate on whether it was an appropriate use of the funds.
The vote took place during Tuesday's Salt Lake County Council meeting, where members reviewed uses for the fourth-quarter transportation revenue in the county's possession. The fund is based on a sliver of money the county receives in sales tax.
About $58 million remains in the county's hands, which it can allocate to various transportation projects. Salt Lake County Mayor Jenny Wilson requested holding a little more than half of that for "possible dedication or future revenue uncertainty," but it could be some of the initial funds the county allocates to the downtown revitalization project following a partnership agreement between Salt Lake City and Smith Entertainment Group.
The agreement those sides made includes a 0.5% citywide sales tax increase to help repay a $900 million bond, as well as a provision that Smith Entertainment Group — the owner of the Utah Jazz and Utah Hockey Club — secure a lease with Salt Lake County over two blocks east of the Delta Center. The whole project outlines a downtown "sports, entertainment, culture and convention district."
It's clear through conceptual designs and project descriptions outlined over the past few months that Smith wants to drastically modify the convention center to reopen the section of 100 South buried beneath it so it could be turned into a plaza. The convention center would be built more vertically on each side, while 300 West is tunneled between it and the arena.
How this would be done remains to be seen. Wilson said there are no "direct plans" because it's still in a conceptual phase, but county officials say the building would be knocked down and rebuilt.
Doing so wouldn't be cheap. Andrew Roberts, chief of staff for the mayor's office, said Friday that such a plan is now estimated to cost $1.1 billion or more, which could be funded from different sources.
One of those options could be a county bond that would repaid over a 20- or 30-year period.
"What we do know is that it will be a pretty extensive project and one that will be somewhat costly over the course of 20-some-odd years," Wilson said. "That's how we'd probably look at the window of financing."
She requested that the $10 million head to a lockbox, where it's temporarily frozen, while the county continues to discuss details with Smith and state leaders, including more concrete plans and funding sources. The county plans to meet with state lawmakers over the next few months to receive funding help, while private funding is also anticipated.
The locked money could go toward repaying the bond, signaling the county is serious about its role in bringing money to the project that ultimately addresses buildings that it manages. At the same time, she argued that since cities and the state oversee roads, the fund essentially goes toward big-picture projects.
However, her request struck a nerve with Salt Lake County Councilman Dave Alvord, who questioned the legality of the measure. He lauded the mayor for what he called a "good faith effort" to be creative in saving taxpayers, but questioned if it was a good use of money directed to transportation projects.
"I am a little concerned that maybe we put the cart before the horse on this, meaning we have not yet (received) the legislation done to say, 'Oh yeah, you can use transportation dollars for conventions,'" he said. "Without that, I think we ought to allocate this money for transportation, the way the Legislature gave it to us."
Some "elements" of the plan follow the intent, but using the money for the project could require additional legislative adjustments, Wilson countered. Roberts confirmed Friday that the county will ask lawmakers if it's an "appropriate use."
Wilson requested a hold on the money while it's reviewed. It could go to other transportation projects should a deal fall apart by a July 2025 lease deadline.
Alvord told KSL-TV on Friday that he'd like to see that money go toward other uses, such as cleaning up litter and debris building up on freeways and highways.
While there were questions on whether doing this left regular transportation requests unfunded, Catherine Kanter, the county's deputy mayor of regional operations, jumped in on Tuesday to say that some requests were partially funded, but every request the county received got some funding.
Trail maintenance, active transportation, bridges and transit programs across the county were among the projects selected.
"There is no place for that money to hit right now," she said. "I don't think we're stockpiling it at the expense of other projects that need it. We're holding it back because we don't have other needs currently."
The council ultimately opted to freeze the $10 million while negotiations play out.
Wilson previously told KSL.com that she didn't expect county negotiations with Smith Entertainment Group to be finalized until after the next legislative session, which ends on March 7, 2025. If a lease is secured, many of the elements of the agreement will begin on July 1, 2025.
Contributing: Garna Mejia
