Real Salt Lake’s sale, valued at $900 million, is a crucial component of a broader redevelopment project spearheaded by the Smith Entertainment Group (SEG). This deal is part of an extensive plan to rejuvenate downtown Salt Lake City, transforming it into a vibrant hub of sports, entertainment, culture, and conventions. The redevelopment centers around the Delta Center, which will undergo significant renovations to accommodate both the NBA’s Utah Jazz and a new NHL team.
The project includes constructing new hotels, housing towers, and a large outdoor plaza equipped with a jumbotron for broadcasting games. This plaza, situated east of the Delta Center, will feature food and beverage vendors, retail spaces, and gathering areas, aiming to create a lively and engaging environment for residents and visitors (KSL News) (KSL News).
To finance this ambitious project, SEG plans to secure up to $900 million in bonds. Approximately $525 million of these funds will be allocated to the Delta Center renovations, while the remaining $375 million will support the development of the surrounding entertainment district. The bonds will be repaid through a proposed 0.5% sales tax increase, which the Salt Lake City Council must approve. This tax is expected to generate $1.2 billion in revenue over 30 years, highlighting the long-term financial strategy underpinning the project (KSL News) (KSL News).
In addition to the physical infrastructure, the project includes several community-oriented initiatives. SEG plans to implement programs for internships, apprenticeships, and youth engagement, along with free or subsidized tickets for local community organizations. The group is also committed to addressing homelessness in the district, collaborating with various organizations to provide consistent area coverage and support for individuals in need (KSL News) (KSL News).
The project has garnered mixed reactions from the public and city officials. While many see it as a transformative opportunity for downtown Salt Lake City, some residents express skepticism, particularly regarding the use of public funds for a project led by wealthy sports team owners. Critics argue that the focus should instead be on pressing issues such as affordable housing and homelessness. SEG, however, maintains that the public investment is essential for creating a district that benefits the entire community, not just sports fans (KSL News) (KSL News).
The Salt Lake City Council is expected to vote on the sales tax increase and other necessary approvals later this year. If approved, the project will move forward, promising to reshape the urban core of Salt Lake City by 2027 (KSL News) (KSL News).
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