Acting county mayor pushes funding for Palace expansion

Published: Saturday, Dec. 11, 2004 11:22 p.m. MST
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The push for legislative funding for an expanded Salt Palace is on.

Salt Lake County Acting Mayor Alan Dayton made a pitch this past week to a combined lunch meeting of local elected officials — county, city mayors, city council members and others — for their support of an increased hotel and restaurant tax to fund the long-discussed expansion.

"We came within a cat's whisker of losing (the lucrative Outdoor Retailer convention) because we didn't have the space," Dayton said.

Dayton noted that Utah's hotel taxes, at 11 percent, are below the national average, and that raising them just 1 percentage point would raise $2.5 million while keeping them under the national average.

A one-eighth percentage point hike in the restaurant tax would raise about the same amount, Dayton said.

"Bottom line is, we've got to get this done. . .," he said. "If we can do this, all of us will benefit."

Dayton is also looking for funds to expand parking at Sandy's South Towne Exposition Center. With $43.8 million for the Salt Palace (on top of the $15 million the county already has committed) and $20 million for South Towne parking, the county is trying to find money to fund more than $63.8 million in bonds, including bond-issue costs.

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But, Dayton said, it will be worth it. Expansion will bring $214 million in annual economic impact plus $68 million in more convention business.

"We will get $282 million in economic benefit for a $60 million investment," he said.

While the audience may have been sympathetic, Dayton will face a much tougher crowd in the legislative session. County officials have been publicly optimistic about lawmakers deciding in their favor with regard to raising hotel and restaurant taxes. But some within the county say that — with a conservative, generally anti-tax majority on the hill — it may be a hard sell.

Other legislative priorities discussed included changes in human services delivery and expanding no-smoking facilities.


— Alan Edwards

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