The Utah state legislature, in the final days of its session on Thursday night and Friday, passed bills to pay for both $900 million in construction costs for an MLB stadium and $500 million in construction costs for an NHL arena, if Salt Lake City can land teams in both those sports. The bills now go to Gov. Spencer Cox, who is expected to sign them.
As for how the sports venue subsidies will be paid for, that’s still a little bit up in the air:
- The $900 million in baseball money will start with the kickback of state sales taxes within a 200-acre “entertainment district” around the stadium; property taxes from the district would also be used to pay for potentially $500 million in infrastructure and other non-stadium construction. (The stadium itself wouldn’t pay property taxes, since it would be owned by the state.) The bill’s “sponsors concede other revenue may be needed,” reports the Salt Lake Tribune, to cover half of a planned $1.8 billion stadium construction tab.
- The $500 million in hockey money — which according to the legislation can be used for either a new arena, renovations to the Jazz‘ arena, or both — will come from both a 0.5% citywide sales tax hike and the kickback of all sales taxes from a “10-block revitalization area” around the arena or arenas, as the case may be. There’s also talk of “reorienting” the Salt Palace convention center by rebuilding parts of it, which would come with an unknown price tag.
This is being widely reported as $2 billion in subsidies, which isn’t quite right because that’s the number you get from adding up all the future tax payments over time, but that’s just how the state would pay for $1.4 billion in spending right now. On the other hand, it also overlooks things like all the future property tax breaks the two venues would get, not to mention any additional costs like maintenance and upgrade funds that might be approved as part of leases with these so-far-hypothetical teams — so “around $2 billion” is probably a fair assessment.
That’s a staggering amount of money for two sports venues of any kind, but the two bills passed with little opposition once it was decided to focus entirely on future sales tax money (and, in the case of the MLB stadium, future we’ll-get-back-to-you-on-that money). Besides, who could say no when former Atlanta Braves star and Utah resident Dale Murphy turned up to sign baseballs for legislators:
There are 75 state representatives in Utah and 29 state senators, making that $19.2 million per autograph, handily breaking Babe Ruth’s record. Guess Dale Murphy really does deserve to be in the Hall of Fame for something!