S.L. County seeks to save money on Real bonds

By Leigh Dethman
Deseret Morning News
Published: Wednesday, June 6, 2007 12:47 a.m. MDT
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Salt Lake County leaders have already said "no" to at least two funding deals for a Real soccer stadium, and now that the state is forcing them to be involved, they say they want to save taxpayers as much money as possible.

The Salt Lake County Council on Tuesday approved an interlocal agreement that will secure the state or the city of Sandy a better interest rate on the bonds to finance a stadium for Real.

Councilman Jim Bradley said the interlocal agreement is "meaningless," since the state is forcing the county to give up a share of its hotel taxes to help pay for the soccer stadium.

"This fight ended with the state Legislature saying, 'We're taking your money, too bad,"' Bradley said. "Whatever we do now doesn't matter."

By a 7-2 vote Tuesday, the council promised to collect hotel taxes for the next 20 years. The state can then skim 15 percent off the top to help pay for a stadium for Real in Sandy.

The county didn't have to agree to the accord. The state will carry out the deal with or without the county's cooperation.

But with the council's signing of the agreement, Sandy city officials can reduce costs on securing a bond to finance the stadium, Mayor Peter Corroon said.

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The agreement is one of the loose ends the state is trying to tie up on the $35 million deal that the Utah Legislature approved in February for land and infrastructure for a soccer stadium in Sandy.

Corroon had all but killed the stadium deal in January, saying it was an "unsafe investment" of taxpayer dollars because the team could easily default on bills with only minor shortfalls in ticket sales.

Weeks later, the state came to the rescue, using the county's $35 million in hotel-room tax revenue.

Now that the state has stepped in, ignored Corroon's advice and effectively told the county what to do with its money, Corroon said he signed the interlocal agreement last week because it will at least save the taxpayers some money on the interest rates on the bonds.

"What's done is done," Corroon said. With the interlocal agreement, "more public money would go for the actual value of land and infrastructure."

The agreement is a bare-bones version of one that Sandy city officials tried to get the county to agree to in May. Corroon flatly refused to sign that agreement, saying the language of the document was too vague and left open the possibility that the county's hotel-room tax dollars could be used for a hotel, broadcast studio or other Real projects on stadium property.

E-mail: ldethman@desnews.com

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