Quote:
Originally Posted by airhero
My guess is the city council approves the tax hike and at that point there is no way the arena moves. It would be beyond stupid to pass up a billion dollar incentive. It does sound like the city/county is attempting to leverage their ownership of nearby parcels to come to an agreement of how some of the money is spent in exchange for the land being used for SEG’s entertainment district. If that ends up with too many demands of SEG from the city/county it could open the door for a move, but from the outset it really seems the agreements are tentatively in place. If the city/county is perceived to have given up too much, or if the plans aren’t to the public’s satisfaction, there could be substantial opposition that could lead to the tax hike being killed. I suppose we will have a better idea of the plan and response to it tomorrow. I’m curious how detailed and set these plans will be.
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It's no stupid if the downtown project costs more than a billion more to build there and presents a lot of complexity which means risk. New arenas proposed all over North America now exceed $1B ranging from the Clippers to the Thunder, rebuilding existing ones can be even more costly. Think about how much tear down and rebuild is proposed just on this site. Burying streets, uncovering other streets, tearing down symphony hall, rebuilding it maybe, fixing Japan Town, reorienting/possibly rebuilding the convention center. Getting land ready alone could exceed a billion, easily. This is very complex, requires many parcels of land with buildings already on them, which all translates into a ton more money. On top of all that, you still have to renovate the existing Delta Center to make it work for Hockey and the NBA, while still playing there. This is incredibly expensive because the format of the building is not ideal for hockey, this isn't as simple and removing and replacing suites, changing out seats, you're talking about rebuilding possibly from the foundation up. All while still trying host games there each season, a deep playoff run by either league could completely screw up the schedule.
One other point to make, those demographics near the south site may be a little too hard to pass up...some quick math below, that is almost 450K population base with median HH incomes over 100K. There is no doubt in my mind that is a factor they will be thinking about in all this.
Median HH Incomes/Population
Lehi- $117K/85K
Draper- $126K/50K
American Fork- $90K/37K
South Jordan- $120K/85K
Herriman- $115K/50K
Riverton- $115K/45K
Sandy- $108K/93K
Whereas downtown-
SLC- $77K/220K
South Salt Lake- $57K/26K
North Salt Lake- $94K/22K
Millcreek- $88K/63K
Murray- $82K/50K
West Valley City- $82K/136K