Salt Lake City Council votes to move forward with theater

SALT LAKE CITY — Mayor Ralph Becker now has $18 million reasons to believe his bid to build a new performing arts center downtown will be successful.

The Salt Lake City Council voted 5-2 Tuesday night to issue up to $18 million in bonds to design the Utah Performing Arts Center, a planned 2,500-seat theater capable of hosting first-run touring Broadway shows.

City officials say it will cost $15 million to design the theater. In all, the theater's price tag is estimated at $110 million, though that figure hinges on moving forward now to take advantage of historically low interest rates and a favorable construction climate.

The council's action Tuesday allows the city to issue up to $18 million in short-term bonds, meaning the debt would be paid off in about a year — likely with a construction bond for the project.

Investing $15 million to $18 million in the project essentially commits the city to building the theater. If city officials were to decide not to move forward with the project in the future, it still would be on the hook for that $15 million to $18 million.

"I'm nervous," Councilman Carlton Christensen said. "$18 million is a lot of money. On the other hand, I'm optimistic. … The long-term benefits for us as a community are significant."

The theater, Chairwoman Jill Remington Love said, is 20-plus years in the making.

"The opportunity is here now," Love said. "The property exists. Interest rates are low. Construction rates are low. It's the right time to move forward with this theater."

Councilman Soren Simonsen, who along with Luke Garrott voted against issuing the bonds, expressed concern about moving forward with the project without knowing if or how much Salt Lake County will be involved.

City officials are hoping the county will operate the theater and contribute about 20 percent of the cost.

Ben McAdams, the mayor's senior adviser for intergovernmental affairs, said county leaders have indicated they support the project and want to participate. A vote of the County Council is expected early next year.

McAdams also said a backup financing plan is in place in the event the county opts not to participate.

Garrott proposed delaying a decision on the theater until next year, when the county's level of participation was more clear. That idea found no support on the council, however.

Garrott also took issue with what he said was a lack of detail provided by the mayor's office as to how the $18 million would be spent.