The SLC Council approves a 0.5% tax adjustment to fund the downtown entertainment district

SALT LAKE CITY (ABC4) – The Salt Lake City Council voted Tuesday, Oct. 1, to approve a 0.5% tax adjustment to help fund Smith Entertainment Group’s proposed downtown revitalization project.

The council unanimously approved the tax increase, with one council member absent from the meeting.

PREVIOUS STORY: Downtown revitalization moves forward, unanimously approved by Utah committee

The City Council meeting began around 7:00 p.m. and did not end until after 10:00 p.m. as the City Council heard voices from the public supporting the plan and community members opposing the plan.

Following the City Council’s decision, Smith Entertainment Group released a statement thanking Salt Lake City Mayor Erin Mendenhall and the Salt Lake City City Council.

The statement from SEG Managing Director and Project Manager Mike Maughan read in part:

Here’s what the City Council’s final decision to support the plan could mean for the Salt Lakers.

What does the tax increase mean?

According to a July 2024 press release from Salt Lake City Mayor Erin Mendenhall’s officeThe above-mentioned sales tax adjustment – ​​called “revitalization tax” – may not exceed 0.5% Capital Revitalization Zone Law That was passed by the Utah legislature earlier this year.

Once the tax increase is imposed, it cannot remain in effect for more than 30 years, according to the Capital City Revitalization Zone Act.

“This would generate approximately $1.2 billion in revenue over the 30-year term of the agreement, of which $900 million would be for SEG for its commitment to the renovation of the Delta Center, surrounding courts and sports , entertainment, culture and congresses are planned for the district the mayor’s office said in July.

The Salt Lake City City Council now has until December 31, 2024 to pass the sales tax adjustment for the project and authorize Mayor Mendenhall to sign the agreement.

“We look forward to continuing the ongoing work to reshape the heart of Salt Lake City and create the best downtown experience,” SEG said in a statement late Tuesday evening.

Project approval schedule

The Salt Lake City Council provided a timeline for the project Agenda before the meeting on October 1st.

On July 9th the The council voted to support the proposed agreement and project. On Aug. 30, the council sent a notice of approval to the Revitalization Zone Committee.

On September 17th the The committee approved the project area and the participation agreement.

Copyright 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

For the latest news, weather, sports and streaming video, visit ABC4 Utah.