Rocky is wary of Palace funding

Mayor Rocky Anderson has formally asked the Salt Lake City Council to reconsider its financial support of the planned Salt Palace Convention Center expansion.

In deference to Anderson's request, the council, acting as the city's Redevelopment Agency Board of Directors, may hold a special meeting tonight to reconsider. RDA board chairman Eric Jergensen and executive director Dave Oka have issued an RDA agenda for tonight. However, both say the meeting is not certain.

"We're looking at the mayor's request," Jergensen said.

Last week, the RDA board approved a plan to spend $170,000 for engineering and designs of a new Salt Palace parking structure where temporary exhibit space could be installed. The board also voted to spend $250,000 a year for 10 years to help pay the $10 million parking structure's brick and mortar costs. The other $7.5 million would be paid for with state and county funds.

Those $250,000 payments would be contingent on the county's supporting the extension of downtown as an RDA district until 2014 and on VNU Expositions, the group that puts on the semiannual Outdoor Retailer shows, committing to coming to Salt Lake City for five years beyond its current commitment, which runs through winter 2005.

VNU has threatened to take its shows elsewhere, citing the Salt Palace's cramped quarters. Salt Lake Convention & Visitors Bureau leaders are meeting with VNU Friday to present the expansion proposal in an attempt to persuade VNU to stay.

The RDA's $2.5 million would only pay for the parking structure. An increase to the state hotel and restaurant tax would be needed to fund the estimated $35 million expansion.

Council members expect the tax increase, which would require approval by the state Legislature, would pay back the city and county's costs for the $10 million parking garage. Anderson, however, notes such payback is not mentioned in the RDA's resolution.

"The RDA board has committed to the expenditure of $2.67 million, without any mention of reimbursement," Anderson wrote in a memo to board members.

Convention & Visitors Bureau president Dianne Binger, however, has said she would not go forward with the $10 million parking structure if a tax increase cannot be secured for the $35 million expansion.