Sunday, March 3, 2024

Utah Legislature approves 'milestone' bill creating Fairpark district, MLB stadium framework



(ksl.com 2-28-23)

Sen. Luz Escamilla, D-Salt Lake City, appeared to fight back tears as it became her turn to cast her vote on HB562 on the Senate floor Wednesday.

The bill sets up a new Utah Fairpark Area Investment and Restoration District that will help oversee major redevelopment planned for the Fairpark neighborhood and forthcoming Power District in Salt Lake City. It also sets up the framework for state funding of a possible Major League Baseball stadium, in a move that ramps up the state's bid for an expansion team.

"This is going to change completely my community and many lives," she said, before voting in favor of the measure.

Escamilla, along with many of her colleagues, believe it's a home run. The Utah Senate voted 25-4 on Wednesday to approve second substitute HB562, less than 24 hours after the House of Representatives voted 51-21 to advance the bill to the Senate. The bill now heads to Gov. Spencer Cox's desk for final approval.

It follows a resolution that the Legislature passed last month, supporting Utah's efforts to bring in MLB.


What the bill does

HB562 sets up a few things. Once signed, it would create a new investment district this year, including a board that oversees it. The area is slated for major redevelopment with the creation of the Power District, which was boosted earlier this month by the Larry H. Miller Company's announcement that it will invest at least $3.5 billion in the area.

Both votes took place after Rep. Ryan Wilcox, R-Ogden, the bill's sponsor, unveiled final tweaks to the measure, giving a member of the Westside Coalition a seat on a board overseeing the district. The governor will also appoint two members to the board, as will the Fairpark Authority Board and Utah leaders.

However, most of the interest in the bill has been tied to baseball. Salt Lake City is one of multiple cities vying to bring in an MLB expansion team; ESPN reported last week that it appears Utah's capital and Nashville, Tennessee are currently at the top of the expansion leaderboard.

The bill would provide up to $900 million in state funds toward a possible MLB stadium, should Utah land an MLB team by mid-2032. A prospective MLB owner, most likely the Miller Company, would cover the rest of the estimated $1.8 billion project, oversee construction and upkeep, and pay the state a $150,000 per month lease to play in the stadium that the state would own.

This part of the bill generated most of the debate on the Senate floor Wednesday. Sen. Nate Blouin, D-Salt Lake City, said he doesn't like the "optics of cutting taxes" for a wealthy business while homelessness, child funding, affordable housing and other key issues remain underfunded.

Others have voiced their concerns about the value that a stadium could bring since the bill was introduced. Sports economic experts have produced several studies that show stadiums don't create much of an economic impact on a community.

But Sen. Lincoln Fillmore, R-South Jordan, the bill's Senate sponsor, argues that HB562 isn't much of a baseball bill. It looks at completely revamping Salt Lake City's Fairpark neighborhood and west side.

He asserts state funds directed toward the district would essentially be covered by any redevelopment, capturing new sales tax and the increments of property values in an area. The area, he said, doesn't produce much of either right now since there are many abandoned businesses or state entities in the area. On top of that, the state could generate more from the income tax coming out of any MLB player's salary, which could go toward repaying the cost of the stadium and district if the state chooses.

The only major statewide tax is a 1.5% increase in car rental taxes that would be triggered if Utah lands an MLB team; however, Fillmore said in-state residents are exempt from this tax as long as they fill out a form proving their residency. Wilcox altered the bill this week, removing a 1.5% statewide increase to the transient room tax that would go toward the project after negative feedback from the hotel industry and lawmakers.

The bill also guarantees that "Utah" will be included in a future team's name.


One final vote

It appeared that Utah senators were slightly more welcoming of HB562 than a similar bill setting up a new arena for the Utah Jazz and a possible National Hockey League team in downtown Salt Lake City — even if the body approved both.

Fillmore said HB562 focuses on "meaningful" upgrades to three big state assets: the Utah State Fairpark, the Jordan River and Salt Lake City's west side, three pieces he believes have been "historically neglected" over time. He noted it only builds on what the Miller Company pledged to invest in the area.

"The economic, social and cultural impact of this investment cannot be overstated," he said. "As a state and as a capital city, we've been looking at ways that we can invest, restore and revitalize these areas."

Escamilla added that the bill could serve as a "catalyst" for Salt Lake City's west side communities, something that has never really happened in the area's history.

Meanwhile, Salt Lake City Mayor Erin Mendenhall, who spoke in favor of the bill when it went through a committee hearing last week, celebrated the bill's passage. She called it a "major milestone" toward the city's MLB efforts, in a social media post Wednesday.

"Regardless, what the Millers are going to build will transform the Fairpark and Power District on our City's Westside," she wrote. "I'm grateful for our dedicated partners with the (Larry H. Miller Company) and proud of our city's key seat at the table for the work ahead."

Cox has until March 21 to sign or veto any bills from this year's session.

https://www.ksl.com/article/50933256/utah-legislature-approves-milestone-bill-creating-fairpark-district-mlb-stadium-framework

NBA/NHL arena bill as they seek 'vibrant' capital


(ksl.com 3-1-24)

Utah lawmakers have approved a bill that paves the way for a new arena in downtown Salt Lake City that could be the home of the Utah Jazz and a potential National Hockey League team.

Utah senators voted 22-4 Friday to concur with changes that the House of Representatives made to SB272 Thursday night before the House voted 50-20 to approve the measure. The bill now heads to Gov. Spencer Cox's desk for final approval.

Rep. Jon Hawkins, R-Pleasant Grove, the bill's House sponsor, introduced a substitution on Thursday that tweaked the name from a "reinvestment" to a "revitalization" zone. It also adds new language tied to downtown safety concerns, including new public safety, homelessness mitigation, transportation and parking plans for the zone.

However, Hawkins said changes don't alter the essence of the bill. It still sets up the framework for an NBA or NHL owner — such as Ryan Smith and the Smith Entertainment Group — to approach Salt Lake City and the state and agree to a plan to revitalize the area, including a new arena for the Utah Jazz and an NHL franchise.

Updates to venues like the Salt Palace Convention Center or Abravanel Hall could also be included. All government-related funds would be covered through bonds issued either by the city, county or state, on top of any private funds directed toward investment.

Those entities will now work together to produce a master plan for those changes, which would be approved by both the Salt Lake City Council and a zone committee that would be formed.

"With the Olympics coming in 10 years or so, we want our capital city to be vibrant, to be a great place for families to come and enjoy what we have to offer — not only as a city, but as a state," Hawkins said. "It brings our capital to life again."

Sen. Dan McCay, R-Riverton, the bill's Senate sponsor, previously adjusted the bill to allow for Salt Lake City to opt into a 0.5% sales tax increase that would be dedicated to the zone if it so chooses. That's estimated to generate $54 million to $83 million annually, depending on if it's imposed just in Salt Lake City or across three qualifying cities, according to state legislative financial analysts.

He didn't debate the changes and there was very little discussion of the bill before Friday's vote. The Senate had voted 21-7 on Tuesday to advance the bill to the House before it was amended, requiring a Senate revote.


Reaction to the Bill

Smith, Salt Lake City Mayor Erin Mendenhall and Salt Lake County Mayor Jenny Wilson celebrated the bill's passage after endorsing it throughout the legislative process.

In a joint statement, the three said they believe the state needs a "thriving downtown in its capital city" so it can continue to blossom.

"With today's passage of the Capital City Reinvestment Zone bill, we are poised to invest deeply in Salt Lake City's downtown experience," the statement reads, in part. "There's a lot of work ahead of us, and we're thrilled to have this seminal opportunity to partner together to reimagine the downtown experience — to create a comprehensive, visionary plan that generates a vibrant, safe, and fully activated downtown."

Downtown Salt Lake City's population is projected to double in the coming years as it becomes increasingly residential again. At the same time, the trio said they believe there's an opportunity to build on existing experiences.

That includes keeping the Utah Jazz downtown and potentially bringing in an NHL team on top of other arts, culture and entertainment opportunities, including the latest Broadway shows, "world-renowned concerts," and global events like the 2034 Winter Olympics, Smith, Mendenhall and Wilson said.

"This is a great day for all Utahns and we look forward to continued collaboration toward our goal of creating an unrivaled experience in downtown Salt Lake City," they wrote.

The bill also received another major endorsement on the penultimate day of the legislative session, before the two chambers voted. Doug Andersen, a spokesman for The Church of Jesus Christ of Latter-day Saints, said the church supported any efforts that ensure Utah's capital city "remains vibrant and attractive, both for those who live and work here as well as those who visit."

The church's headquarters, Temple Square and other properties are all near the arena and revitalization district.

"We're pleased with the potential this has to refresh and revitalize downtown Salt Lake City while presenting a safe and family-friendly gathering place for generations to come," Andersen told KSL in a statement.

SB272 was passed two days after HB562 cleared the Utah Legislature, setting up a similar structure for Salt Lake City's Fairpark neighborhood and the framework for a potential Major League Baseball stadium.

Critics of both bills, as well as scholars, are more skeptical of the bills' impact. Some residents and groups argued the bills appeared to be rushed and benefitted wealthy owners who don't need government help.

J.C. Bradbury, a professor of economics at Kennesaw State in Georgia, questioned Smith's claims about a new arena on social media earlier this week, too. Bradbury authored a study in 2022 that found little evidence to show that the stadiums provided much economic benefit based on analysis of what happened when the Atlanta Braves moved to Truist Park.

"There is little evidence that sports venues promote the type of commerce that downtowns need to prosper, and there are good reasons to think associated congestion and crime created by events hurt the area," he wrote, in response to Smith.

Other studies have shown that adding a stadium doesn't add to what people are willing to spend on entertainment, David Berri, a professor of economics at Southern Utah University and former president of the North American Association of Sports Economists, explained to KSL.com last year. He added that they can also pull people from spending time and money in another part of a city, state or region.

It appears that the governor is leaning toward signing both bills, though.

Cox told KSL.com on Friday that he yet to read SB272, but he believes it and HB562 offer much more than just stadiums. He believes both will focus on major improvements to areas the stadiums would be located in.

"This isn't about building stadiums. This is about transforming downtown Salt Lake City in a way that only happens once every 100 years-plus, and transforming the west side," he said. "Even if we never built a hockey arena or a baseball ballpark, these projects on their own would be worth the attention and the investment. ... This is big stuff and transformational in a good way."

He has until March 21 to sign or veto either bill.

https://www.ksl.com/article/50936222/utah-lawmakers-approve-downtown-nbanhl-arena-bill-as-they-seek-vibrant-capital-

How times have changed


Funny how 20 years ago hardly anyone wanted to help Dave Checketts get a soccer stadium built in Salt Lake City proper. His promises of a soccer stadium revitalizing downtown fell on deaf ears.

We soccer faithful dreamed of riding the TRAX train downtown and having a bite to eat before the game. Then after RSL had won another match we would take TRAX back home and sing songs of victory while we made plans to return and spend more money downtown the next week.

But instead the best Mr. Checketts could get was a stadium in Sandy with little or nothing to do around there. You can take TRAX if you want but what's the point when you might as well drive your car.

Now our Salt Lake politicians can't make commitments or throw money fast enough at new stadiums and arenas for downtown Salt Lake in hopes of luring a NHL and/or MLB team to Utah. (see above articles)

Yeah, RSL has made a home for itself there and many of the games sell out, good for them. 

But a sell out in Sandy isn't the same as a sell out in Salt Lake. 

But I don't even go to the games anymore so what do I care?