The sale of 6.5 acres and part of the Congress Center of the owner of Utah Jazz Seg is ahead of the County Council of Salt Lake on Tuesday.
(Francisco Kjolseth | The Salt Lake Tribune) The Delta Center is represented on Friday May 10, 2024.
The County Council of Salt Lake will plan to sell a large part of the Salt Palace Convention Center and the land below the Smith Entertainment Group this week.
The 12 terrestrial plots and parts of the Congress Center envisaged for sale, located at 55 S. 300 West, are on the city’s block directly east of the Delta Center. This part of the Palais de Sel houses its largest exhibition hall, as well as a small exhibition hall and a connected parking.
The exhibition halls to be included in the sale of land represent nearly 195,000 square feet – around 20% – from the total capacity of the Congress Center, while the land under these structures extends over about 6.5 acres.
The potential sale is the last decision to emerge while the representatives of the government and the leaders of SEG strive to create a new sports, entertainment, culture and convention district, now covering five houses in the city center below and around the Delta Center.
The county and the seg, owners of Utah Jazz and Utah Hockey Club, negotiated a purchase agreement for the Salt Palace property, the price for “market value”, According to a resolution on the sale for the consideration of the council on Tuesday.
But this potential price was not included in the part of the waiting resolution made public On the county website before Tuesday’s meeting.
A public hearing on potential sale is scheduled for Tuesday at 3 p.m. before the council consideration and potential vote on resolution, which is scheduled for 3:05 p.m.
The council determined that the sale is a “necessary condition” for the improvement of the Delta Center, according to the resolution, because additional events at the revised center should increase the value of its taxable sales to “more than $ 400 million per year” by 2034.
Once sold, the resolution indicates that the property will allow a “redevelopment that will link the first Downtown Spaces”, such as the Delta Center, the Salt Palace, Abravanel Hall, Temple Square, City Creek Center, The Eccles Theatre, The Utah Museum of Contemporary Art and “Future 2034 Olympic Games.”
“The sale will revitalize the city center of Salt Lake City, will preserve the current value of the properties and the sales tax collections, and increase the value of the properties and the collection of sales taxes”, indicates the resolution. “The sale will guarantee the future income of the sales tax and the property tax of continuous operations of Utah Jazz and Utah Hockey Club at the Delta Center.”
In addition, the sale will change by 6.5 acres of an exempt set of package belonging to the county and exempt from tax to non -exempt goods, which will bring in additional $ 4.9 million per year of land tax revenue once the area is redeveloped, depending on the resolution.
The product product will also renovate the County of the Salt Palace, which, according to resolution, would cost around 1.5 billion dollars.
About 80% of the funding for renovation will come from additional future sales and land taxes generated by the redevelopment, indicates resolution.
“The reshaping, reconstruction and modernization of the Congress Center will add a second ball and upgrade room and a space exhibition, which will allow the Congress Center to organize several major events simultaneously,” said the resolution. “This additional capacity will generate additional annual tax revenue of $ 6.3 million in state sales tax, $ 4.2 million in county sales tax and $ 1 million in Salt Lake City sales tax.”
The sale of the property comes in the heels of a last minute effort to extend a new tax district Designed to channel public funds in parts of the downtown, entertainment, culture and congress district of the Jazz Ryan Smith Jazz.
On April 4, a panel in the Governor’s office of economic opportunities Approved the inclusion of the “Block 67” in this special tax district. Located at around 100 south and 300 west, the block includes two luxury hotels and apartments just south of the property that the county council will plan to sell on Tuesday.