Salt Lake Tribune
Weekly Ad Specials
Retailers wooed, but now the real work has to begin
This is an archived article that was published on sltrib.com in 2004, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Just 12 hours after winning the Outdoor Retailer show for the next five years, Salt Lake County officials Thursday offered details and floor plans of the Salt Palace expansion that made it possible.

But where the $52 million to pay for nearly doubling the convention space is going to come from remains hazy.

Salt Lake County Mayor Nancy Workman gushed about the twice yearly retailer show's $150 million to $180 million five-year economic impact on the state. The convention, which showcases new recreational equipment, is Salt Lake's biggest convention client and only agreed to remain in the city if the Salt Palace Convention Center is expanded by 40 percent. A secondary requirement was that the state keep a dialog open with the retailers on protecting Utah's backcountry "recreational gems."

Workman said by next August an underground parking garage and a concrete pad, on which the 2005 summer conventioneers will pitch their overflow tent for the last time, must be completed.

The $10 million needed for this first construction phase, Workman said, will be covered through a bond that the county and Salt Lake City will pay off at $500,000 a year and $250,000 a year, respectively.

"We don't have to raise taxes," Workman said, explaining the county's share of the $10 million will come from an existing travel and recreation fund. The city will tap money from the Salt Lake Redevelopment Agency, officials said.

But for the $52 million needed to finish the 140,000-square-foot expansion, the county will turn for help to the Legislature, Workman said. "That's nothing for them," she said. "For us it's a challenge."

The Legislature may authorize the counties to increase taxes on hotel rooms and, possibly, restaurant meals to fund a 12-20 year bond, county officials said.

"I don't think we are wedded to a particular source of revenue," said County Chief Administrative Officer David Marshall. "We are willing to sit down with the Legislature and examine all the options."

But local officials hope the state also might be willing to directly bear a large part of the burden because it reaps a windfall in sales and gas tax revenues from conventions.

Workman said she would like to see a state financing package include funds to expand parking at the county's South Towne Expo Center in Sandy.

"I think it's going to be an easy sell-what a return on the money!" Workman said.

Last year, however, a bill to increase the sales tax on restaurants and hotels to fund tourism promotion died in the Legislature.

"That was a bill that had a lot of projects in it," Workman explained. "This is a whole different proposal. The economic impact to businesses around here is real."

The Mayor would not speculate on how the Legislature could raise the needed $52 million or if it would require increased restaurant and hotel taxes. "We don't know," she said. "There are options - whatever the options are."

What's ahead

l Salt Lake officials labored mightily to win the twice yearly Outdoor Retailer trade shows. But more work - and money will be needed to seal the deal.

l In the next 11 months the county will have to build a $10 million concrete pad and underground parking garage behind the Salt Palace Convention Center. The pad will be the site of an overflow exhibition tent in summer 2005.

l The Utah Legislature has to sign on to Salt Lake County's expansion project and pass legislation to allow the county to hike taxes, probably on hotel rooms, to pay for the the $45 million to $52 million bond needed to pay for it.

l Immediately after the 2005 summer trade show, the county will begin construction to increase Salt Palace exhibition space by 40 percent.

l By August 2006, the additional exhibition space should be completed and ready for the Summer Outdoor Retailers show.

Funding: A huge expansion of the Salt Palace has been promised, but how will it be paid for?
Article Tools

 
Affiliates and Partners