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Parking lot money move could mean refinancing bond
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated.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.

If Real Salt Lake wants to snatch any part of Salt Lake County's parking money for a soccer stadium in Sandy, officials must refinance the $80 million bond.

Otherwise, if the money goes toward shared parking for the county-owned South Towne Expo Center and soccer, RSL would be limited to just 10 percent exclusive use of the terrace under federal tax law.

That's the word Tuesday from Blake Wade, an attorney and official bond counsel for the county who outlined the restrictions on the taxpayer cash for the County Council.

But with no official proposal from RSL, more questions than answers remain about the soccer site near 9400 S. State Street.

Wade said the $18 million for parking approved by the Legislature - it was part of the $80 million slated for Salt Palace and South Towne improvements - would become taxable if it goes toward "preferential use" for a private party such as RSL. Federal rules require the public have access to anything financed with public money, he said.

That may mean the county and RSL could build a joint parking structure as long as it remained open to the public and the county collected the revenue. But game nights would be counted against the 10 percent mark, Wade explained.

Doug Willmore, chief administrative officer for the county, wonders how that 10 percent would be measured. Would it be by revenue, number of nights or something else? And what about concerts and other events at a stadium, Councilman Marv Hendrickson asks.

"The standard is unclear," Willmore said.

Councilman Jim Bradley says the county must get details from the team now more than ever - given the tax implications.

"It's a big question to us," he said.

RSL executives have been mostly mum on a financing plan, except to say it would not put a burden on taxpayers. Team President Dave Checketts says specifics would be presented by early next year.

In January, the county is preparing to break ground in Sandy for some form of Expo Center parking, according to Chris Crowley, county community services director. After sending out a bid request earlier this year, the county already has selected an architect for the construction.

Provided a plan doesn't violate tax laws, County Mayor Peter Corroon says one building that satisfies two uses is "OK with me."

Councilman Cort Ashton, who represents the Sandy area, encouraged his colleagues to "not be so bureaucratic" that they don't consider such a plan.

But that olive branch seemed to infuriate fellow Councilman Mark Crockett, who stormed out of the conference room seconds after it was suggested. The two later were seen talking quietly.

"We have to legitimately solve the parking problem," noted Council Chairman Michael Jensen.

Meantime, a new RSL estimate of up to $75 million for the stadium - $10 million higher than previously stated - has Councilman Joe Hatch firmly "in the skeptic column."

djensen@sltrib.com

Other S.L. County news

* Months after tweaking campaign-finance rules, the County Council unanimously approved a reform package that, among other things, reduces overall individual contributions to $6,000 per election cycle and bans donations from county contractors with contracts above $10,000.

* After settling on a workable boundary with residents in Draper's Suncrest development, the Salt Lake County Council and Utah County Commission agreed to a new county line that traverses the ridgetop above Draper. While the new line still divides the subdivision, it falls mostly along streets and does not cut through homes as it did before. It also falls along the existing water break, which served as a natural border, officials said. The new boundary becomes official Dec. 31.

* Members of the White City Community Council say new estimates - pegging their population at more than 21,000 - make their unincorporated island in the Sandy area eligible for township status. County Council members will review the proposal next month.

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