Potential Changes in Downtown Zoning for Salt Lake City Sport Entertainment District

The Salt Lake City Council is scheduled to convene to deliberate on proposed zoning adjustments for the downtown area, particularly in the vicinity of the Delta Center, with the aim of permitting the construction of skyscrapers reaching heights of up to 600 feet. This proposal is a result of a request put forth by Smith Entertainment Group (SEG), which seeks to transform a seven-block expanse around the arena into a vibrant sports entertainment district.

If sanctioned, the new skyscrapers would surpass the Wells Fargo Center and Temple Square’s Church Office Building in height by more than 150 feet. However, opposition has been voiced by the city’s planning commission, which rejected the proposal on the basis that the development is being rushed and should not be given preferential treatment in light of legislative priorities.

The council’s determination on the zoning adjustments is slated for discussion during an upcoming meeting this Tuesday, which will be broadcasted live from 2 p.m. onward. Members of the public will have the opportunity to offer their input during the general comment section of the formal meeting at 7 p.m. Interested parties can submit their remarks via various online platforms, including email and a 24-hour phone line.

It is anticipated that the council will arrange for a public hearing on the zoning changes to take place on August 13, during which no time limit will be imposed on public commentary. In addition to the zoning alterations, the council will also be briefed on a substantial proposal delineating SEG’s plans to utilise $900 million of public funding to enhance the Delta Center and its surroundings.

According to Mayor Erin Mendenhall’s office, the proposed “participation agreement” is presently under negotiation, with a draft set to be concluded early this week. Upon finalisation, the agreement will be subject to review and approval by the Capital City Revitalization Commission, a legislative oversight body, before it can be presented to the council for ultimate endorsement.

Should the arrangement receive the council’s approval, the city intends to elevate the citywide sales tax rate by half a percentage point. This increase is projected to yield approximately $54 million annually, which will be allocated towards settling the project’s debt. Projections from the University of Utah’s Kem C. Gardner Policy Institute suggest that a substantial portion of the sales tax hike, up to 80%, will be borne by commuters, tourists, and businesses beyond the bounds of Salt Lake City. Furthermore, it is estimated that the average household tax hike for city residents will hover around $150.

In accordance with the legislation governing the sports district negotiations, the participation agreement must detail the project area, plans for the revamp of the Delta Center, and a 30-year master plan for the region’s development. It should also address existing building modifications and plans for addressing homelessness, public safety, transportation, and parking in the area.

In conjunction with the public financing, SEG has committed to injecting at least $3 billion of their own capital into the area, indicating a noteworthy partnership in the city’s development.

The council will persist in reviewing and deliberating on the proposed changes, with further updates anticipated in the near future.