The Salt Lake City Council unanimously endorsed a participation agreement between Salt Lake City and Smith Entertainment Group on Tuesday, launching one of the first steps in realizing the Capital City Revitalization Zone planned around a revamped Delta Center and entertainment district. They also heard public comments on Capital Improvement Projects and passed a ceremonial resolution acknowledging the Home Depot and their contributions to the city.
Capital City Revitalization Zone
The Council unanimously approved a preliminary agreement between the city and Smith Entertainment Group—which owns the Utah Jazz and Utah’s new NHL team—to develop a sports, entertainment, culture and convention district in west downtown.
If finalized, the development will be funded in part by a 0.5% sales tax increase. This increase could last for up to 30 years, but it will not apply to groceries, motorhomes or cars.
“Many of my neighbors will still, you know, argue that the impacts on them will be big, and many will wonder why sports arenas over all the other things that we have in our city as challenges,” Councilmember Alejandro Puy said regarding the sales tax increase. “I want to talk to them about [how] our downtown is all of us. The success of downtown is the success of every district in the city.”
The Council endorsed the participation agreement with a handful of stipulations. These include a commitment to improving public transportation and ridership, a planning process including outreach with an emphasis on connectivity and walkability and a construction mitigation hotline to address construction issues.
Now that the participation agreement has been endorsed, the agreement will be sent to the state Revitalization Zone Committee. The Committee will have 30 days to approve or reject the agreement. If it is approved, the agreement will be sent back to the City Council for a final vote.
“This is not a decision that anyone takes lightly,” Council Chairperson Victoria Petro said. “This is the result of months of tireless negotiations with Smith Entertainment Group to ensure the potential project benefits Salt Lake City as a whole.”
The endorsed agreement also includes several public benefit items. This includes a ticket fee for events at the Delta Center which will fund affordable housing developments. It also includes a commitment to redevelop and revitalize Japantown.
“I need to share some gratitude—first, for council chair Petro and my other Council colleagues, to Mayor [Erin] Mendenhall, for understanding how important this is and backing me up on the city's asks related to Japantown,” Councilmember Darin Mano said. “Thank you to Mike Maughan and the Smith Entertainment Group for listening honestly and engaging, acknowledging that Japantown is an asset to your project and not a detriment.”
Later in the evening, several constituents shared their thoughts on the revitalization zone during the general comments portion of the meeting.
“I'm just here to say ‘thank you so much,’” Jan Aramaki told the Council. “I never thought I'd be a Salt Lake resident to reap the benefits of your hard work, but my heart is in Japantown. So, thank you for keeping that on the forefront.”
Several members of Salt Lake’s Japanese-American community shared similar sentiments with the Council. Other constituents, however, were more critical of the plan.
“Salt Lake can ill afford to invest a billion tax dollars in such a high-risk, low-return project that hasn't come close to being clearly defined,” Andrew Marwick said. “There are much higher priorities for Salt Lake City to invest in.”
The Council will hold a public hearing on proposed zoning changes that will support the revitalization plan on Aug. 13. More information on the project and its next steps can be found at tinyurl.com/SLCRevitalizationZone.
CIP Projects
The Council held its first of two public hearings on funding for the Capital Improvement Project (CIP) program. Their second hearing will take place on Aug. 13.
Policy analyst Ben Ludke told the Council that more than $90 million in CIP requests are under review, which is more than double the amount of available funding.
CIP projects can be submitted for consideration by city residents and by city departments. Projects generally require a minimum cost of $50,000 and must have a useful lifespan of at least five years. The Mayor and a citizen advisory board have already given recommended funding for CIP projects as part of the FY2025 budget process. The Council will have the final say in choosing projects for funding.
CIP projects under consideration this year include an array of infrastructure repair projects, park improvements and art installations.
Helen Reynolds advocated for a project to install shading structures at city parks.
“It's one of the things that is accessible to everybody, despite their socioeconomic background or where they live,” she said. “I would love to see them covered so that anybody all over the city and every district gets to have a park that is shaded all day.”
A couple of commentators also spoke on a city-wide restroom study and conceptual restroom design for Fairmont Park. The project is intended to test new restaurant configurations for parks and other public spaces.
Richard Layman, a co-author of the restroom study, cautioned against expecting a one-size-fits-all solution for restrooms.
“I think looking at the city comprehensively, in terms of restroom needs, is excellent,” Layman said. “But I want to make clear that the appropriateness of differentiated solutions should be at the top of that consideration.”
Mayor Erin Mendenhall recommended $100,000 in funding for this project.
Home Depot Resolution
The Council voted 5-1—with Councilmember Chris Wharton opposed—to adopt a ceremonial resolution with Mayor Erin Mendenhall recognizing Home Depot’s service to the city.
“The Home Depot, a national leader in home improvement and construction supplies, has been a steadfast partner in supporting Salt Lake City through service throughout the city, demonstrating an unwavering commitment to the betterment of our communities,” Puy read from the resolution.
Following the resolution’s adoption, Home Depot Store Manager George Preciado thanked the Council.
"There's an old quote that I kind of live by where it goes 'a man plants a tree knowing that he may never sit under the shade of it,’” Preciado said. “I think we do that every day and I think we need to find ways to do that within our communities, and you guys do that very well."
Puy also took another moment to thank Preciado for his support. “I'm humbled by your commitment to our city and to our residents,” Puy said.