Utah's capital city is one step closer to having a new hotel adjacent to the Salt Palace Convention Center.
On Tuesday, the Senate Economic Development and Workforce Services Committee passed SB267, which establishes a tax credit for the proposed hotel.
Many community members testified to the enormous economic impact the hotel could have on the city and state.
Bill sponsor and Senate Majority Whip Stuart Adams, R-Layton, said the hotel would give more validity to the convention center.
Under the proposal, a private developer would finance the construction of the convention center hotel, while public funds would be used to purchase the land for the property and to build a parking structure, costing taxpayers $99.5 million up front.
The projected public investment would be paid back in 7½ years and would yield a 14.6 percent return on the investment, according to Jeff Sachs, of Strategic Advisory Group, the consultant hired by Salt Lake County to assess the economic impact of the project.
Once built, the hotel would receive a 20-year sales tax rebate from the state, contingent upon its success.
But some lawmakers and local business leaders say the plan would create an uneven playing field. Clint Ensign of Sinclair Industries, representing the Grand and Little America hotels, said Grand America could not compete with the convention hotel if it received the proposed $20,000 per day tax subsidy.
Gov. Gary Herbert said he'll look at the proposal for a convention hotel but isn't convinced government needs to be involved in the project. Deseret News
