A legislative committee unanimously endorsed a request Wednesday by the Utah Athletic Foundation (UAF) for a resolution that will allow it to sell up to 10 percent of the land within the Utah Olympic Park complex of ski jumps, a bobsled/luge track and a freestyle aerials pool outside of Park City.
The resolution would allow the UAF to pursue negotiations that could result in the sale of part of its Olympic Park land to a private developer for, most likely, a hotel or some other housing facility. Or, if the financial considerations were better, the foundation could enter into a joint venture or partnership with a developer.
Proceeds from the sale of up to 38 of the park's 389 acres would be added to the now $80 million endowment left by the Salt Lake Organizing Committee from 2002 Winter Olympic profits to run that complex and the Utah Olympic Oval speedskating facility in Kearns.
Another provision of the resolution, which will be introduced as a committee bill at next January's legislative session, would give the UAF's investment committee greater flexibility to put endowment funds into stock market portfolios capable of yielding bigger returns.
"I want to compliment these [UAF] gentlemen for their stewardship in maintaining these facilities. This only enhances your ability to do the job you need to do," said Sen. Peter Knudsen, R-Brigham City, a member of the Workforce Services and Community and Economic Development Interim Committee. Knudsen was referring to UAF President Colin Hilton and board chairman Gordon Strachan.
Prospects of a hotel being built on the property were discussed earlier this year, but that type of development is only one of several possibilities that could unfold, Hilton said Wednesday.
A commercial venture such as a hotel could generate a large financial return for the UAF, which runs a $4 million deficit annually. Although that deficit has been covered with interest from the endowment and user fees, the foundation has not been able to build a capital improvement budget. And maintaining ski jumps, bobsled tracks and mountain swimming pools to a standard suitable for international sporting competitions is expensive.
In addition, Hilton noted, the U.S. Olympic Committee and the national governing bodies for the athletes who use the facility would like to see some housing there for their training periods. So it may be more advantageous for the UAF to pursue another kind of lodging development that satisfies the desire for athlete housing while yielding a good financial return.
The resolution's wording would allow the UAF to strike the best deal it can - with written approval of the governor.
Hilton said he needs an additional $5.5 million annually to wipe out the red ink and build the replacement fund. He assured committee members that any development would be small, located near the ski jumps, and would not tarnish the large open space area leading to the complex from Kimball Junction.
mikeg@sltrib.com
