The $66 million toe in the water

A new poll shows Utahns are split on a sales tax increase funding a planned sports and entertainment district. The 0.5% tax hike has collected nearly $66 million for the $3 billion project aimed at revitalizing downtown Salt Lake City ahead of the 2034 Winter Olympics.

According to a Deseret News/Hinckley Institute of Politics poll, 44% of Utahns support the increase, while 48% oppose it, and 9% remain undecided.

A tale of two cities: urban vs rural

The survey found a stark divide between urban and rural Utahns, with 60% of city dwellers expressing support for the tax hike, compared to 35% among suburban and rural residents.

Broken down by age group, the poll revealed that 52% of 18- to 34-year-olds favor the increase, compared to 38% among those 65 and older.

The $1.2 billion question

The tax hike, which brings the sales tax rate to 8.25% from 7.75%,is anticipated to generate $1.2 billion over the 30-year life of the participation agreement,with $900 million going to SEG, the owner of the Utah Jazz and Utah Hockey Club.

The company estimates it will spend $525 million to remodel the 35-year-old Delta Center and $375 million on other district improvements.

Who's footing the bill?

The tax increase does not apply to groceries or big-ticket items such as cars, and the city has collected nearly $66 million in revenue since the tax hike was implemented nearly 18 months ago.

As the city continues to weigh in on the proposal, Salt Lake County intends to share details about the convention center renovation in the next few weeks.

What's next?

Demolition and reconstruction of buildings in the district won't begin until SEG takes possession of the western wing of the Salt Palace Convention Center in February 2027.

The participation agreement between Salt Lake City and SEG includes a community benefit fund from fees attached to ticket sales for basketball, hockey, and other events, which will support affordable and family-sized housing, a Japantown streetscape project, and public art.

The city recently received its first payment from SEG for that fund, totaling just over $1 million.

Open questions

Who is the unnamed buyer behind SEG, and what are their true intentions for the downtown Salt Lake City project?

What specific details will Salt Lake County share about the convention center renovation in the coming weeks?

Will the tax increase ultimately prove to be a boon or a burden for Utahns?

Broader context

The planned sports and entertainment district is part of a larger trend of urban revitalization efforts in the United States, with cities like Los Angeles and Chicago investing heavily in similar projects.

The $3 billion price tag for the Salt Lake City projecct is a significant investment, but one that could potentially bring in millions of dollars in revenue through increased tourism and economic activity.