Utah Gov. Spencer Cox has signed Senate Bill 26 (SB26), creating a path to reinvest tax revenue from within the downtown sports district into funding for a renovation of the Salt Palace Convention Center and other downtown revitalizations. The project, expected to cost a combined $1 billion, will receive most of its funds through enabling tax increment financing.
Over a 30-year period, $900 million from state, county and city taxes will be funneled to the project through existing property, sales, use and other tax authorizations. This includes 100% of local sales tax and half of the state’s sales tax generated from revenue within the downtown district. The revitalization will not raise taxes for any city, county or state.
Additionally, any future tax revenue growth created by the enhancement of the zone, which includes the Delta Center and two blocks immediately to the east, will be used to pay off the project. The money raised through the tax initiatives can only go toward the Salt Palace renovations and other public infrastructure projects within the designated area, such as preserving county-owned Abravanel Hall and upgrading the Utah Museum of Contemporary Art, not to the Delta Center or any other private properties.
Salt Lake City Mayor Jenny Wilson said depending on the future financial circumstances to come over the 30-year collection period and specific cost estimates for the convention center renovations, the tax funding could pay for the entirety of the projects. If not, the remaining $100 million would come from other sources found by Salt Lake City and the county, per the bill’s sponsor Sen. Wayne Harper.
Wilson calls the project a good investment, not only because of the revenue Salt Palace Convention Center generates, but also as it helps to continue supporting the arts and culture in the area. Rep. Jim Dunnigan said the Salt Palace is a “top tourism asset,” and a study from the University of Utah Kem C. Gardner Policy Institute found it is a major driver of the $4 billion in direct visitor spending to Salt Lake County in 2023.
The current building sees activity about 65% of the year, but estimates bring that value closer to 90% with the right changes. The renovations will increase capacity and revenue, enhance the downtown experience and strengthen preparations for the 2034 Olympics.
Some of SB26 is scheduled to go into effect May 7, however the Governor’s Office of Economic Opportunity may be ready by April 15. Portions of the bill, largely tied to property tax, will go into effect on Jan. 1, 2026.
Photo Courtesy
Ben P L from Provo, USA via Wikimedia Commons
Creative Commons Attribution-Share Alike 2.0
The post New Utah law creates financing path for $1B Salt Palace renovation appeared first on Government Market News.