New state law enables a Convention Center public infrastructure district; petition filed to fund Delta Center and Salt Palace improvements

Salt Lake City staff briefed councilors on April 1 about a petition filed under the new state law (SB 26) to create a Convention Center public infrastructure district (PID) that would finance Delta Center/entertainment‑district work and Salt Palace‑adjacent improvements.

Under the statute, a Convention Center PID differs from a traditional development PID: instead of relying only on a special property tax inside a PID boundary, the new PID structure can receive a mix of designated revenue streams — notably a 0.5 cent sales‑and‑use tax authorized under the Capital City Revitalization Zone (CCRZ)/participation agreement and revenues from a Convention Center Revitalization Zone (CCRZ) statute passed during the recent legislative session. Those CCRZ funds may include state, city and county sales‑and‑use tax increment and (when available under statute) a portion of property tax increment from specified project areas once other CRA project area obligations expire.

The petition received a complete filing on March 17 and triggers a time‑limited process: the city certified the petition and must hold the public hearing required by the PID statute (the informational session was held at the April 1 work session and a formal hearing will follow that evening). Within the statutory period the council may adopt the governing documents and an interlocal capital‑pledge agreement; these documents set the PID bylaws and identify pledged revenues that bondholders rely on. The PID governing board will be five members: three petition‑associated representatives (petitioners/Jazz Arena Investors/Smith Entertainment Group), one city representative appointed by the mayor (city staff noted the mayor will appoint a city member) and one county appointee chosen by the county mayor.

City staff emphasized that CCRZ funds are only available from the specific proposed revitalization area and that the statute requires county review and approval for uses tied to the Salt Palace. Staff also explained the PID boundary petition covers only the Delta Center block; the law permits expansion later, but any addition of property would require 100% consent of affected property owners and council approval.

Ending: The city will transmit the required notices, receive the lieutenant governor’s certificate of incorporation once the council acts, and record the PID with the county recorder; council members and staff reiterated the public hearing is required by state law and the city’s discretion in this process is constrained by the statute and the petition’s compliance.