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Economic Development proposes transfer of Arts Council, trims construction-mitigation grants and seeks ongoing Open Streets funding
Summary
Salt Lake City’s Economic Development Department proposed a FY26 budget reduction of about $1.9 million, driven by an administrative transfer of the Arts Council and a proposed $250,000 cut to the construction mitigation grant pool, while asking to make Open Streets funding ongoing.
Salt Lake City’s Department of Economic Development presented a FY26 package that would reduce its budget by roughly $1.9 million (about a 39% decrease from FY25) largely because the administration proposes transferring the Arts Council and Arts Council Foundation to the Department of Community and Neighborhoods.
The department said the transfer would reduce personnel and other costs by approximately $1.3 million. Economic Development also proposed lowering the construction mitigation grant allocation from about $600,000 last year to roughly $350,000 in FY26, citing an expected decline in the size and duration of major construction projects. Finally, the department asked to make Open Streets funding an ongoing nondepartmental item to avoid annual RFPs and provide stable administration of the city’s pedestrianized events.
Why it matters: the construction mitigation program and Open Streets are high-touch tools for small-business support and downtown activation; changes to funding levels and administrative homes can affect outreach timing and program reach.
Construction mitigation grants and business outreach Staff said the construction mitigation program historically provided one-time payments (recently $3,000 per eligible business) to help small businesses through construction disruption. The department estimates that fully funding every affected business around identified construction projects could cost about $650,000; with a typical application rate of roughly 50% the department expects demand nearer $350,000. Staff emphasized they will carry over unused funds from the current year and coordinate with Engineering and other departments on outreach.
Open Streets and Arts Council transfer Economic Development asked to make Open Streets an ongoing expense to reduce administrative burden and give event contractors confidence to secure sponsors and plan multi-year activations. Separately, the administration’s transmittal proposes moving the Arts Council and its foundation to Community and Neighborhoods, a change staff said will shift approximately $1.3 million in budget responsibility between departments.
Council questions Council members voiced concern about whether the reduced construction-mitigation allocation would be sufficient in areas with concentrated construction and asked for clarity on how funds would be targeted. Staff indicated the amount is calibrated to projected need and said they will continue outreach and work with the CRA and other partners where gaps remain. Council members also raised the role of façade grants and other tenant-improvement tools, which are administered outside Economic Development.
Ending Staff said they will refine the construction-mitigation estimates, continue business outreach and coordinate with Community and Neighborhoods and the CRA as the transfer and open-streets funding are finalized.
