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S.L. City, County pondering how to pay their share of Salt Palace tab
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

With the Salt Lake CIty skyline in the background work continues on the Salt Palace Convention Center expansion project Feb. 24, 2005. Griffin/photo

Outdoor Retailer aficionados may be swinging from their carabiners over the latest Salt Palace expansion - a must to keep that annual convention - but paying for the upgrade could leave Salt Lake City leaders buried in bills.

"There's not a chance on this green Earth we can do it," Councilman Eric Jergensen said Thursday about the capital city's share, increased in the waning hours of the legislative session from $11.4 million to $19 million. "It just isn't there."

Jergensen says extending the city's financial commitment from six to 10 years is unacceptable and could "severely affect what we can do as a city."

But the funding mechanism - a boosted innkeeper tax - for the city in Senate Bill 211, could change if Salt Lake County Mayor Peter Corroon gets his wish.

He says city and county leaders will huddle as early as next week to hash out a "fair" payment plan for the $82 million overhaul that survived the Legislature despite a late scare.

"That was the whole idea of putting that intent language [allowing such negotiations] in there," Corroon said.

Just hours before adjourning, lawmakers amended SB211 to strip language that would have required officials to rebid the construction project. That alone, could have doomed the contract for Outdoor Retailer, and its $32 million annual windfall.

The state also raised the county's hotel tax by an additional quarter percent for six years - a key cog in securing the necessary money.

"They have all the hotels," said Rep. Brad Dee, R-Washington Terrace, who introduced the surprise amendment. "We're giving them the vehicle to pay for it."

Gone is a provision to steer car-rental tax from other parts of the state into Salt Lake County. And Sandy will pay nothing despite getting a $22 million parking garage for the South Towne Expo Center.

"They've got to step up," Jergensen lamented. "And so does the state."

He worries that a successful Salt Palace actually would pinch the city's general fund when guests file in. That's because as hotel bookings increase, so does the amount of tax going toward the expansion.

"We can have all this fantastic success, but because we participated, we get hurt," Jergensen said.

Establishing a finite cost for the city - rather than a percentage - has bipartisan support from the county.

"I wouldn't say this is over," said Michael Jensen, Republican chairman of the County Council. "We still have a process to work through."

Democratic County Councilwoman Jenny Wilson says the city's burden needs to be lowered.

Salt Lake City Mayor Rocky Anderson wants to return to the state in a special session to rejigger the funding package. He would like to pursue a "painless" tax on downtown retailers, excluding automobile dealers.

Under any move involving the state, a coalition of city and county leaders would be wise to watch their words. Profanity from some county politicians and several salvos comparing legislators to children nearly torpedoed the bill this week.

It survived after Sen. Michael Waddoups, R-Taylorsville, read an apology from the County Council on the Senate floor 90 minutes before adjournment.

"If we all act like adults," Jergensen added, "we can get it done."

djensen@sltrib.com

Tribune reporter Heather May contributed to this story.

Big chunk: The project survived a scare in the Legislature, but paying for it remains a dilemma
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