The board of governors of the Salt Lake Area Chamber of Commerce supports formation of the Downtown Alliance.

The alliance will consolidate several organizations involved with economic development in downtown Salt Lake City.Support comes in a resolution which says the chamber has been assured its president will be on the DA board and the funding mechanism will not compete for chamber membership income.

John Schumann, a Salt Lake businessman and alliance chairman, said that earlier this year the Legislature amended state law governing special service districts to include districts for economic development. Previously, the districts, which operate on assessments based on property taxes, were used chiefly for public works projects.

Schumann said the assessment will raise more than $500,000 and the law requires cities to collect the assessment, which is why the City Council has created the district.

Fred S. Ball, chamber president, said the alliance will avoid fragmentation and consolidate several entities including the Central Business Improvement District, the Re-gional/Urban Design Assistance Team and others although the Downtown Retail Merchants Association will continue to function.