Salt Lake Tribune
Weekly Ad Specials
Compromise set on hotel tax
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Mayor Peter Corroon says he is ready to sign an agreement with Sandy and the state that will ensure $35 million of Salt Lake County's hotel taxes go toward Real Salt Lake's soccer stadium - as long as there is no mention of the stadium in the document.

"We didn't want to be part of any other agreement between Sandy, the state and Real," said the county mayor, who rejected a similar stadium-funding deal in January only to see it revived by the governor and the Legislature. "Somehow we got put into one with which we didn't feel comfortable."

Corroon balked last week when Sandy provided a draft accord that named purposes for which the transient-room tax (TRT) would be used. He worried the language was too vague and left room for public money to be spent on the stadium itself or on surrounding commercial developments - including a hotel and broadcast studio - which RSL plans for 9256 S. State St.

The mayor proposed revisions to confine RSL to spending the money exclusively on land, parking and infrastructure - a condition that was advertised to legislators before they voted for the stadium funding. But Sandy said that was impossible.

The compromise?

Slash the document to the bare minimum: Salt Lake County agrees to continue levying the full 4.25 percent TRT for at least 20 years.

"We would have no intention of doing otherwise," Corroon said Wednesday. "We use [TRT revenue] for tourism," recreation and arts projects.

Sandy Economic Development Director Randy Sant said state code and the Legislature's bill establishing the funding mechanism don't require the $35 million to be spent on land, parking and infrastructure alone. Although, it's Sandy's intent to do that - mostly.

"In this kind of deal, there could be a cost that comes up that makes a lot of sense," Sant said. "Sandy spent a lot of money for outside consultants [and] attorney fees [to complete the deal]. Maybe we would like to have that reimbursed."

Or, for example, mitigating traffic at the stadium - a task Sandy has been charged with - could include hiring a traffic engineer or paying police officers to direct cars on game nights, not just infrastructure improvements, Sant added.

But Sant wasn't sure if, legally, the money could help finance RSL's hotel or broadcast studio.

Sandy doesn't need the county's agreement to issue bonds for the $35 million, Sant said, but it does lower insurance costs. He plans to circulate a revised draft Friday that meets Corroon's satisfaction.

The County Council could vote on the document as soon as Tuesday.

Sant is not worried about resolving the disagreement with Corroon.

"There's no battle between us and the county on this," Sant said. "This is not a duel."

rwinters@sltrib.com

S.L. County mayor will sign agreement with Sandy to levy tax as long as the wording doesn't refer to Real stadium
Article Tools

 
Affiliates and Partners