Salt Lake's biggest trade show is staying put.

On Wednesday, officials from the twice-yearly Outdoor Retailer show announced it would remain in Salt Lake City for another five years — contingent on the expansion of the Salt Palace Convention Center and a state commitment to protecting recreational areas.

Outdoor Retailer, which opens today at the Salt Palace and has been in Salt Lake continuously since 1996, is worth an estimated $32 million in annual direct spending to the city and draws roughly 20,000 visitors to its summer show and 15,000 visitors to its winter show.

"We are so excited to be here," said Peter Devin, director of Outdoor Retailer, which is owned and managed by Virginia-based VNU Expositions Inc. "At the present time the industry is very happy with Salt Lake City. We're all on the same page."

But city and county officials still have work to do, as they prepare to expand the Salt Palace and sell the Legislature on a plan to pay for it.

Within weeks, work will begin on a $10 million to $12 million underground parking facility and expanded plaza area that will eventually be converted to exhibit space. The expansion will add 40 percent more space in the main hall and by 2006 will do away with the trade show's outdoor tent exhibit — a 60,000-square-foot pavilion that is full, with a waiting list of 100 exhibitors.

The total expansion project, which will add 145,000 square feet of exhibit space and 70,000 square feet of multiuse space, will cost $45 million to $55 million.

"When you think about $32 million a year coming into Salt Lake City specifically, it's a small price to pay," said Eric Jergensen, Salt Lake City councilman and chairman of the city's Redevelopment Agency. "There's no way they would have stayed without the expansion.

"The nice thing about the convention center, once completed, is that we'll be competing with the likes of San Francisco, Philadelphia and New York."

Salt Lake County Mayor Nancy Workman said the community embraces the values of Outdoor Retailer.

"We've got a partnership with these people," Workman said. "They understand what we love. We love our outdoors. This is a huge project. We've got to get busy right now getting this thing built. We're going to go to work tonight."

Salt Lake City Mayor Rocky Anderson said he was "thrilled" by the decision. "I was expecting this," he said.

Anderson said he knew the deal would be worked out, because Salt Lake City was the best choice. "We've all put a lot into this. This great show twice a year stays in the state."

County bonds and an increase in the transient room tax will be used to finance the project. Ultimately, the Legislature will be asked to raise hotel and restaurant taxes to fund the project and pay back city and county commitments.