Move to use transportation funds for Salt Palace rebuild sparks concern

SALT LAKE CITY — City and county leaders are speaking out against the proposal to use transportation funds to rebuild the Salt Palace, a project that could cost more than $1 billion. 

Last week, the Salt Lake County Council voted, 7-2, in favor of holding millions of dollars from its Fourth Quarter Transportation Fund to explore their use on a redesign and rebuild of the Salt Palace Convention Center, part of the revitalization project in downtown Salt Lake City with Smith Entertainment Group.  

During the Tuesday meeting, the council approved allocating $8 million worth of projects from its yearly revenues, leaving $10 million untapped. The fourth quarter transportation funds are generated from a .25% local option sales tax intended for city transportation projects. The fund has grown to $58 million of unused cash over the years. 

“The opportunity around the Salt Palace is one that I wanted us to be able to consider. No decisions have been made but we are looking at creative funding sources,” Salt Lake County Mayor Jenny Wilson said during the county council meeting. 

According to Wilson, tapping into the fund is a feasible option because the county has a “diminishing role” in providing transportation services as funding has grown from state and federal agencies. 

“We no longer are in the traditional transportation business. There are a lot of cities that have roads, state roads, as well as federal rights,” Wilson said. “When you look at the revenue that is rolling through, that is the one fund that I would argue is somewhat, I don’t want to use the word unutilized. It’s not really the core part of what we do at Salt Lake County at this stage.” 

However, the councilmen who represent the County’s southwest region, Sheldon Stewart, District 5, and David Alvord, District 2, are against the move. 

“What that $58 million is, is that’s money that could be delegated to different cities and should be delegated through a review of the fourth quarter and that’s what these funds are for,” Stewart said. “So, the claim that they’re not used, they may have been withheld but those funds can be used and the cities would be willing to take those funds and use them.” 

Riverton mayor also opposes the move

Riverton Mayor Trent Staggs also opposed diverting the funds. 

“We need transportation dollars to be used for transportation and not for the construction of buildings or demolition of buildings and so I really want to encourage the county to reconsider this,” Staggs said. 

Stewart and Staggs said the funds should go toward their intended purpose, arguing there are several needs in Riverton, Herriman, Bluffdale, and West Jordan that are not being met. 

“We have a great need for the fastest growing area of Salt Lake County,” Stewart said. 

“We have more than half of the undeveloped property left in the county,” Staggs said. 

“The southwest part of the county is going to double in size in the next 20 to 30 years we think,” Staggs said. “I’d say number one issue is growth and we need to be able to address it with transportation.” 

Staggs said he would like to see better “east-west connectivity” in his city and improvements along Bangerter Highway to reduce congestion and travel times with more “freeway style interchanges.” 

To divert the funds, the county will need the legislature to modify the law to allow their use for a rebuild of the Salt Palace.  

“I have a hard time. Right now, it’s not allowed to be used for those purposes unless you were to use it for road widening, but that area has already got it’s widening to where it is,” Stewart said.  

A county spokesperson reiterated the 7-2 council support of holding the funds to explore additional uses and said the southwest districts remain a priority. The spokesperson pointed to Fourth Quarter Fund Projects approved for 2025, including the Bluffdale-Riverton Jordan River Trail, $500,000, and $2.9 allocated for the Midas Creek Bridge in Herriman, as well as previous projects on the Butterfield Trailhead Regional Park.