SALT LAKE CITY — Salt Lake County may be tapping into a new revenue stream to fund significant renovations at the Salt Palace Convention Center as discussions progress regarding a comprehensive redevelopment of downtown Salt Lake City near the Delta Center.
The Utah Senate Revenue and Taxation Committee voted 3-1 on Monday to move forward with SB306. This bill does not impose any new taxes; instead, it allows the county to allocate funds it already collects from transportation taxes specifically for the renovation of the convention center.
“Salt Lake County has now requested assistance in financing their ability to update certain portions of the convention center, and that is the intent of this bill,” stated Sen. Dan McCay, R-Riverton, the bill’s sponsor.
The proposed legislation also paves the way for a potential transfer of ownership of 300 West downtown, although McCay noted that part of the bill might undergo amendments.
Funding an expensive venture
SB306 is a continuation of legislation McCay introduced last year, which established a downtown revitalization zone and a framework for Salt Lake City to partner with Smith Entertainment Group while the company pursued an NHL franchise.
Smith Entertainment acquired the Arizona Coyotes and relocated them to Utah shortly after the Legislature began session, prompting intense negotiations before a stringent deadline set in the law. The partnership was finalized, along with a 0.5% sales tax increase, in October 2024, just before the Utah Hockey Club’s first regular season commenced.
However, this agreement was contingent upon further negotiations between Smith Entertainment Group and Salt Lake County, as their plans included significant upgrades to the two blocks located east of the arena.
Renderings reveal Smith’s intention to bisect the Salt Palace, reopening a section of 100 South that is currently covered by the large structure. This change would create a pedestrian plaza, with increased building heights on each side.
County officials have expressed their support for the plans, but they indicated late last year their intention to seek additional assistance from the Utah Legislature to address the financial challenges of the project, which could exceed $1 billion.
Salt Lake County Mayor Jenny Wilson, who was present at Monday’s meeting in favor of SB306, stated that the county aims to utilize its “fourth quarter” transportation funds for the initiative.
She argued that this would not significantly affect county transportation, as the state and municipalities control most roads and transportation systems within the county.
Following the meeting, Wilson mentioned that the county is still developing plans for improved walkability between City Creek Center and the Delta Center. She emphasized that this would be a “win for the community,” enhancing navigation in areas currently obstructed by the convention center.
According to Wilson, the bill would cover a “fairly minimal amount” of the total anticipated costs without raising taxes, but she termed it an “important element” in a wider “shared investment” among the city, county, and state. She also indicated that the county is exploring other funding avenues, although these are not yet finalized.
None of the funding would be allocated for renovations to the Delta Center, and the county is not pursuing any public bond options.
Wilson views this as an “investment,” as the addition of a second ballroom could potentially double revenue. The county is also considering strategies to complete construction without disrupting ongoing conventions.
“Downtown will undergo construction once we identify all revenue streams,” she stated. “We’re working on a plan that will minimize the impact of the construction phase and enable sections of the Salt Palace to remain operational.”
Managing 300 West
An additional aspect of SB306 modifies the language regarding the U.S. 89 route, transferring the ownership of 300 West adjacent to the Delta Center from the state to Salt Lake City.
McCay elaborated that this busy downtown road continues to pose challenges in revitalization efforts. The most significant financial ramifications of this change could fall on Salt Lake City, which will be responsible for future maintenance of the road.
“The city hasn’t expressed any concerns so far regarding the maintenance of that road,” he noted.
Current designs indicate that 300 West will be tunneled below a plaza, yet this has raised concerns about potential effects on the highway. SB195, which the Senate passed last week, also calls for the Utah Department of Transportation to investigate this matter. Concerns have arisen from Salt Lake City regarding this bill, which might delay safety initiatives for other roads.
There appears to be a divergence between the two bills. Sen. Wayne Harper, R-Taylorsville, who sponsors SB195, was the only dissenting vote for SB306 during Monday’s discussion. Despite his opposition, he acknowledged that a revised version is under consideration.
Salt Lake City officials have informed KSL.com that nothing is finalized. The city is actively communicating with legislators, county officials, Smith Entertainment Group, and UDOT concerning project specifics.
Regarding SB195, Rep. Angela Romero, D-Salt Lake City, has proposed an amendment aimed at addressing the city’s concerns.
All legislative proposals must receive approval from the Senate and House of Representatives by March 7. McCay suggested that the matter of 300 West could extend into 2026.
“We don’t have a definitive solution yet,” he admitted. “What I believe we will see … is a revision that provides UDOT and the city with options to consider, leading to a comprehensive resolution in the next session.”
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