Salt Lake Tribune
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Sandy ready to wrap up RSL deal with $35m bond
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated.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.

Real Salt Lake's two-year quest for public funding to help build a soccer stadium is expected to be wrapped up tonight. The Sandy City Council is poised to ink a development agreement that sets the terms for the team to receive $35 million in Salt Lake County hotel taxes.

If all goes according to plan, Sandy will issue bonds for the $35 million next Tuesday. About $20 million would then be used to buy RSL's 23 acres where the $110 million stadium will sit. The remaining $15 million would pay for parking and public infrastructure.

The controversial deal has been touted as a boon for economic development, kicked to the curb as a poor public investment, salvaged by Gov. Jon Huntsman Jr. and the Legislature, and targeted by a grassroots group that sought - but failed - to overturn the state-approved funding through a voter referendum.

"We've been taking this one step at a time and [tonight] is a very big step," said RSL spokesman Eric Gelfand. "We're in the process of building something we think is going to be a great benefit to the community."

The 20,000-seat stadium has been under construction at 9256 S. State St. since May and is expected to open in fall 2008.

There remain critics of the public funding deal - which also will include up to $10 million of tax-increment financing from Sandy's Redevelopment Agency.

"I still think it stinks. I don't think [the stadium is] the best investment that we can make with these [hotel] tax dollars," said Gary Forbush, one of the leaders of the failed campaign to get a stadium referendum on the November ballot. "There are better [public investments] that could give us a bigger return in a shorter time frame."

To seal the deal, the Sandy City Council, which also serves as the city's Redevelopment Agency Board, will be considering a number of agreements tonight:

* A development agreement with RSL that requires the team to build a $110 million stadium and play in it for 25 years or cover the remaining bond payments.

* A property purchase contract for Real's stadium land.

* Real's 50-year ground lease at a rate of $1 per year. The lease has an optional 10-year extension.

* A resolution that authorizes the sale of $35 million in bonds.

* A contribution agreement that would obligate Sandy to allocate money if there's not enough transient-room taxes collected in a given year to make the bond payments.

rwinters@sltrib.com

Public meeting

* What: Sandy City Council is expected to approve a number of documents cementing Real Salt Lake's $35 million public funding deal for its $110 million soccer stadium.

* When: Tonight at 7

* Where: Sandy City Hall, 10000 S. Centennial Parkway

* Download the agenda: http://www.sandy.utah.gov

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