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SALT LAKE CITY — Utahns aren't hip on raising the sales tax rate in Salt Lake City as part of an ambitious plan to reimagine the city center and renovate the Delta Center to accommodate both the Utah Jazz and the new Utah Hockey Club.
A new Deseret News/Hinckley Institute of Politics poll posed this question to 800 registered Utah voters: "Salt Lake City is considering raising its sales tax by 0.5% to generate revenue to establish a downtown sports entertainment, cultural, and convention zone, including renovations to the Delta Center. Do you support or oppose this proposal?"
The survey found 54% of residents oppose the proposed tax increase for the plan, while 38% favor it. Another 8% don't know.
Harris X conducted the poll Aug. 2-9 for the Deseret News and Hinckley Institute. It has a margin of error of plus or minus 3.5 percentage points.
"I think it's disappointing to see a poll like that, but I also think this is the nature of a growth trajectory. There very rarely are easy answers. There are very rarely overwhelming positive answers. They're called growing pains for a reason," said Salt Lake City Council chair Victoria Petro.
"That's kind of where we find ourselves, trying to make the best of opportunities without stressing out our average constituent too much as we move through what's likely to be a tough period of growth."
What's in the downtown revitalization plan
Smith Entertainment Group, which owns the NBA and NHL teams, intends to put $3 billion into redeveloping a three-block area east of the Delta Center, which includes reconfiguring the arena entrance to face east, pedestrian plazas, taking 300 West underground between 100 South and South Temple, and building a residential tower and a hotel. The plans, which aim to better connect the east and west sides of downtown, would impact the Salt Palace Convention Center, Abravanel Hall, Utah Museum of Contemporary Art and Japantown.
Earlier this year, the Legislature, with Salt Lake City and Salt Lake County support, passed legislation allowing the creation of a downtown district. Under the law, the city could raise its current 7.75% sales tax rate by one-half of a percent — pushing it to 8.25% over no more than 30 years. The tax doesn't apply to groceries and major purchases like vehicles.
In July, the seven-member Salt Lake City Council unanimously endorsed a participation agreement with Smith Entertainment Group. The tax hike is anticipated to generate $1.2 billion over the 30-year life of the agreement, $900 million of which would go to the group. The company estimates it will spend $525 million to remodel the 33-year-old Delta Center and $375 million on the other district improvements. The agreement awaits approval from the Utah Legislature's newly established Revitalization Zone Committee.
The agreement includes the creation of a community benefit fund from fees the group would attach to ticket sales for basketball, hockey and other events, ranging from $1 to $3 per ticket depending on the ticket price, starting in July 2025. The city would use the money for affordable and family-sized housing, a Japantown streetscape project and public art, the latter two getting $5 million each.
In a statement this week, the City Council said it's continuing to work with the legislative committee to finalize the timing of formally submitting the agreement, which is due by Sept. 1. The committee has 30 days after receiving the agreement to accept or reject it. If approved, it would go back to the City Council for a final vote, including the tax increase, before Dec. 31. The sales tax rate would go up sometime in 2025.
Salt Lake City Mayor Erin Mendenhall supports the project and the accompanying tax hike.
"Increasing taxes is rarely something an elected official wants to do, and no one ever wants to pay more taxes," Andrew Wittenberg, the mayor's spokesperson, told the Deseret News in a statement Wednesday.
"However, Mayor Mendenhall's priorities remain with Salt Lake City residents and small business owners, who want to see a safe, vibrant downtown that continues to serve as an economic driver for the entire region. Keeping the Utah Jazz and Utah Hockey Club in downtown Salt Lake City benefits the city and has positive economic ripple effects throughout the state."
