From Deseret News archives:

Palace work may be taxing

Expansion could lead to increase for residents and businesses in S.L.

Published: Tuesday, Feb. 15, 2005 11:50 p.m. MST
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Whatever the reason, the scenario isn't fair, city leaders say, because latest projections show the state will earn an additional $2.2 million in extra yearly tax revenue from the expansion, yet state leaders aren't willing to pay for any of the expansion costs. Salt Lake City, on the other hand, would only gain $600,000 a year in extra revenue, with Salt Lake County getting a $1.2 million boost.

City leaders say they shouldn't have to pay for more than the projected increased tax benefit they would receive.

"The important thing is that Salt Lake City should contribute to it, and I think we'd be willing to do anything up to $600,000 a year," Buhler said.

Moreover, city leaders say the Legislature should allow them some flexibility in deciding how to pay for the expansion. Instead of mandating that general-fund money be used, city leaders should have to freedom to come up with the cash in less painful ways.

"You take $1.5 million out of the general fund, and that's going to affect services to the people of Salt Lake City," Deputy Mayor Rocky Fluhart said. "We would like to see an alternative revenue source for that purpose. We certainly do not want that coming out of our general fund."

Meanwhile Waddoups says he is worried about how late his bill is entering the session, which ends March 3. He asked drafting attorneys for the bill Friday but still hadn't received it Tuesday.

"We're running out of time and this is not a simple issue," he said. "I'm getting concerned."

Story continues below
Salt Lake County has already ponied up $15 million for the $82 million expansion project — $60 million for the Salt Palace and $22 million for Sandy's South Towne Expo Center parking structure. Waddoups' bill offers another $45 million through a 1 percent hike to the county's hotel tax.


E-mail: bsnyder@desnews.com

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