CONSUMER

Former SLC mayor no longer running referendum to undo tax increase for Delta Center zone

Oct 4, 2024, 7:01 PM | Updated: 9:55 pm

Rocky Anderson annouced he is running for mayor again...

Former Salt Lake City Mayor Rocky Anderson speaks at a campaign event in Salt Lake City on Wednesday afternoon. Anderson, who last held office in 2008, announced he will run for mayor again in 2023. (Spenser Heaps, Deseret News)

(Spenser Heaps, Deseret News)

SALT LAKE CITY — Former Salt Lake City Mayor Rocky Anderson has reversed course on running a referendum to stop the Delta Center zone tax increase.

During Tuesday’s public comment period of the Salt Lake City Council meeting ahead of that vote, Anderson pled with the city council to vote against the increase. He then threatened to lead an effort to repeal the tax by running a referendum to put the issue on the ballot.

But in a lengthy statement on X Friday, Anderson changed his tune in what appears to be a compromise between him, other community advocates, and the Smith Entertainment Group.

Anderson admitted that a referendum could be a long shot and prevent collaboration and outlined that he had met with Smith Entertainment Group, which committed to meeting their concerns.

“We know many are disappointed that the issue of a new sales tax was never put to public vote. We share that frustration,” Anderson said in his statement. “However, efforts to pursue a referendum will distract time, effort, energy, and resources from the important work of addressing essential issues facing our city, and undermine the opportunities for working together with SEG on matters of mutual passion and concern.”

Anderson said he wants a “cooperative alliance” with Smith Entertainment Group and decided not to pursue a referendum for “the benefit of the entire community.”

Anderson said he and other community advocates met with Mike Maughan, a Smith Entertainment Group executive and principal on the downtown project, and outlined their concerns.

“Good job opportunities … truly affordable housing and other components of cost-of-living, creating a unique and exciting downtown environment while preserving existing landmarks like Abravanel Hall and Japantown, and providing essential leadership on … our homeless community and those at risk of homelessness,” he wrote. “SEG has committed to alignment in the mission to meaningfully address these issues and create a stronger, more healthy and just city.”

SEG cuts prices on select concessions as SLC tax vote on Delta Center zone looms

SEG’s vows to address concerns

Following Anderson’s post, Maughan responded in a written statement. He said he was grateful for the thousands of messages, conversations, meetings, and public forums where people have shared their concerns about the project.

“We have heard you and will continue to listen and engage,” Maughan stated.

He confirmed he’d met Anderson and Catherine Lukes, another Salt Lake City resident pushing to undo the tax.

Maughan also put in writing the following commitments that SEG has already publicly made:

  • Abravanel Hall will be preserved and investments made in UMOCA (Utah Museum of Contemporary Arts) and Japantown
  • The tax does not apply to groceries or large purchases like a car, and 70-80% of tax is paid for by visitors, according to Kem C. Gardiner Policy Institute analysis.
  • SEG committed to “invest deeply in providing economic opportunity and job training, including high school job shadowing, college internships and workforce training and development.”
  • The new district will provide “thousands” of new jobs both during construction and building and once complete.
  • Locally owned businesses will be “an integral part” of the district and also create jobs.

Additionally, Maughan addressed Anderson’s concern over homelessness — noting that businesses, residents, tourists and others all have expressed desire to develop “systemic solutions.”

“SEG is committed to the ambitious goal discussed between us of developing more sustainable homelessness solutions and will work collaboratively with city, county and state representatives as well as individual advocates and philanthropic and community-based organizations to provide leadership and investment that will bring our community significantly closer to the goal of alleviating homelessness in our community,” he stated.

Anderson’s statement noted that the contract between Smith Entertainment Group and the city requires a 30-year lease in downtown, which he said proves that the group is committed to long-term solutions.

“Given (SEG’s) commitment, investment, and shared principals we believe it is in the best interest of the community to unite together in working toward major solutions that serve us all,” Anderson said.

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Former SLC mayor no longer running referendum to undo tax increase for Delta Center zone