Sandy officials have found a way to make financing work for a soccer stadium, county and team sources told the Deseret Morning News on Monday.
Real Salt Lake officials have been lobbying the city and county for months to find a way to come up with $45 million to buy land and build sewers, curbs and other infrastructure for the stadium.
Salt Lake County Mayor Peter Corroon rejected the team's funding plan last month, saying the financial burden was too much for the county to bear. That plan hinged on the fact that Real needs $35 million from the county.
The team wanted the county to raise that money through hotel room taxes. But those taxes are currently funding an expansion of the Salt Palace.
The county and team sources said Monday that Sandy officials have found a way to give Real $6 million now, until revenue from the county's hotel room tax is available. The sources also said that the city will float the bond to finance the stadium, instead of risking the county's financial credibility.
Corroon and his advisers poured over nearly 20 different funding plans with hotel room taxes, but weren't satisfied with any of them.
Corroon said Monday that if someone else can find a plan that works, he's open to ideas. That same mentality goes toward the Sandy plan, he said.
"I've always said the door is not closed," Corroon said. "My philosophy is, If it's a good deal for the citizens, then we're willing to look at it."
The mayor will be able to take a look at Sandy's plan soon, the county and team sources said. Everything needs to be worked out fast, as Real officials still plan on breaking ground in August.
The new funding plan is tailored to meet Corroon's criteria, the sources said. The mayor has said the project must benefit all county residents, as well as promote youth soccer in the community. In addition, the funding must primarily come from non-Utah residents, as well as protect the county's triple-A bond rating.
Under the new plan, most of the funding for the $145 million stadium would still come from tourists through the hotel room taxes. The county would enter into an agreement with Sandy to funnel $35 million in county hotel room taxes to the city. Sandy would come up with the other $10 million through the city's redevelopment-agency funds. Remaining costs would be covered by Real Soccer through private investors.
With Sandy taking on all financial responsibility for the public funds, the new plan likely wouldn't affect the county's coveted bond rating. In general, city bonds have a "negligible" effect on the county's triple-A bond rating, county auditor Sean Thomas said Monday.
Meanwhile, Real Salt Lake officials have pledged $7.5 million to build a 30-field soccer complex off of I-215 — a pledge team owner Dave Checketts has said should satisfy Corroon's desire for the support of youth soccer.
Still up for debate is whether the project will benefit all county residents.
"We certainly heard from the citizens overall that they are not very enthusiastic about a lot of public funding for the stadium," Corroon said of opinion polls about the last funding plan. He said he would have to "wait and see" the details of this latest plan before deciding whether it serves the public interest or not.
Salt Lake County Councilman Michael Jensen agreed, and said Monday that he has always been supportive of using a hotel tax to pay for amenities that could build tourism and economic development.
"The devil is clearly in the details, and with any proposal you've got to see what the details are," Jensen said. He said he was "intrigued" with the idea of Sandy filling the $6 million funding gap and taking on the bonding responsibility. "I'd be willing to listen to what it is and the details of it."
Sandy Mayor Tom Dolan did not return multiple phone calls Monday from the Deseret Morning News.
Trina Klinger, the city's public information officer, said Monday that "until there's a formal presentation, we can't say there's a go on anything. Right now were just trying to get our heads together and do our homework."
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