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Capitol snub of Salt Palace could be deal breaker
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated.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.

Scratching Senate Bill 211 from this month's special legislative session could be a "deal breaker" for the Salt Palace makeover.

That was the sentiment Thursday from Salt Lake City and Salt Lake County leaders suddenly worried the $82 million project is in peril.

"What's at stake here, very possibly, is Salt Palace expansion," said City Council Chairman Dale Lambert. "It would be a serious blow to the state of Utah, Salt Lake County and Salt Lake City."

Reaction came a day after a list of potential agenda items surfaced for the April 20 special session. It includes a No Child Left Behind education measure, and a smattering of other bills, but nothing on funding Utah's premier convention center.

Officials have less than three weeks to persuade Gov. Jon Huntsman Jr. to ensure expansion gets on the agenda. If they fail, "that means we're back to the blackboard again," said County Mayor Peter Corroon.

"Salt Lake County is once again trying to figure out how to pay for the Salt Palace."

Part of the problem, Corroon acknowledged, is that no formal request for inclusion at the special session has been taken to the state.

"It was both of our assumptions that the other was going to do it," he said, referring to city and county leaders.

A meeting with the governor has been scheduled for late next week.

Deadlines set by the Outdoor Retailer convention compound the urgency, Lambert says. Bids have to go out. Bonding has to be obtained.

But keeping the current funding mechanism - an increase in the innkeeper tax - could cripple the city's general fund.

For that reason, intent language was added to SB211 to amend the bill if the city and county agree on an alternative. To that end, preliminary plans call for a special taxing district around the downtown convention center that would boost sales tax a penny on every $10.

"I realize we're not the only issue in town, but this has to be resolved," Lambert said.

Failing that, County Councilman David Wilde vows the county will not be left holding the bag and footing the bulk of the bill.

"Depending on how Salt Lake City reacts," he said, "that could be a deal breaker."

As the machinations continue and construction rolls on at the Salt Palace, city and county leaders agree Sandy should help. More than $20 million of the expansion cash is slated for a new parking terrace at Sandy's South Towne Expo Center, though the city is paying zero. A meeting with Sandy Mayor Tom Dolan is pending.

Short of support from the southeast suburb, Salt Lake City and county officials could turn to the state.

One idea includes a sales-tax break on the supplies needed for construction, which could yield $2 million. Another is asking the state to let the county bump its hotel tax beyond the current 1 percent.

Doug Willmore, chief administrative officer for the county, is frustrated the state isn't kicking in some cash. "It continues to boggle our mind why we would want to tax our own residents for these things as opposed to tourists."

Willmore says such a plan is "basically just robbing one government to pay another."

But without a united front among the cities, county and state, which one feels the theft is clearly up in the air.

djensen@sltrib.com

Expansion funding: Some city and county officials say Legislature's failure to act on the matter cou
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