Salt Lake City Senator hails $1 billion of taxpayers' dollars as "important investment" for new NHL arena: Reports

Last month, Smith Entertainment Group, the parent company of the NBA's Utah Jazz, requested the NHL to initiate an expansion process to bring a National Hockey League team to Utah.

According to a report from Robert Gehrke of The Salt Lake Tribune, the Utah Legislature has revealed a $1 billion plan to create a new National Hockey League arena in downtown.

This plan is sponsored by Utah State Senator Dean McCay. It would give Salt Lake City the power to create a sports and entertainment project of up to 50 acres.

They could issue bonds to build the arena and other infrastructure within that area. To pay off those bonds, there's a proposal to impose a 0.5% point sales tax increase citywide, which would raise the city's sales tax from 7.75% to 8.25% if approved.

Moreover, the proposed tax increase would be used to build a stadium that could potentially serve as a new home for the Utah Jazz or a future venue for the professional hockey team, as Ryan's Entertainment Group has discussed bringing a team to Salt Lake with the NHL.

It is worth noting that the bill doesn't specify the exact amount, Senator McCay mentioned that the projections indicate the tax hike could generate around $1 billion over a period of 30 years.

“This is an important investment that protects the capital city and preserves downtown as a vibrant cultural, entertainment, and economic hub for the entire state,’ McCay said.

Along with the arena, the funds could also be used for other entertainment and recreational purposes within the designated projected area, meaning there could be even more attractions and activities for people to enjoy.

Dean McCay's bill is set for a hearing before the Senate and Taxation Committee on Thursday.

NHL responds to SEG's request to expand in Utah

Both the MLB and National Hockey League have expressed interest in expanding to the city. However, the reports suggest that MLB is in no mood to announce any expansion plans for the next two years.

Meanwhile, Utah is one of the few states that is a preferred destination for an NHL expansion team. Following the SEG's request, the National Hockey League responded with a statement:

The NHL appreciates the interest expressed by Smith Entertainment Group to bring NHL hockey to Utah. During conversations over the course of the past two years, we have been impressed by Ryan and Ashley Smith's commitment to their community and their passion and vision for Utah, not only as a hockey market, but as a preeminent sports and entertainment destination.

Utah is a promising market, and we look forward to continuing our discussions."