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(KSL News/AP/Deseret Morning News) Calling it an "unsafe investment," the mayor of Salt Lake County said Monday that he won't support $30 million in taxes for a professional soccer stadium, a fatal blow to Real Salt Lake's plan to move to the suburbs.
Michael Hutchings, co-owner of Anderson Geneva, said his company has interest in buying the team and building a stadium in Lindon at the old Geneva Steel site.
Michael Hutchings: "We've got the money and financial backing to do it."
Anderson Geneva is an affiliate of Sandy-based Anderson Development LLC.
Michael Hutchings: "The worst case scenario would be if the team left Utah. We don't want to see that happen."
Before making an offer to buy the team, Hutchings will once again offer 30 acres of free land at the Geneva site for the stadium. He tried to lure the team to Utah County in July after the Salt Lake County Council rejected a funding deal for the stadium.
If that doesn't work, and Real Salt Lake owner Dave Checketts still decides to sell the team, Hutchings said he'll be the first in line.
KSL Newsradio's Doug Wright spoke with Checketts Monday morning. Checketts told him the team will likely stay in Utah for one more year, then it will probably be sold.
On Friday, the Salt Lake County Debt Review Committee voted against spending $30 million in hotel taxes on the $110 million project.
Monday morning Mayor Corroon held a press conference announcing his decision not to give the 30-million dollars of taxpayer money to help Real Salt Lake build the stadium in Sandy.
Salt Lake County Mayor Peter Corroon: "I have spent several days since the Debt Review Committee's recommendation looking at facts and figures, trying to decide whether it is in the best interests of the citizens of Salt Lake County residents and our county government to purchase the land associated with the Real soccer stadium."
Salt Lake County Mayor Peter Corroon: "Part of the proposal was that we do our due diligence and make sure the deal makes sense. Ultimately the deal didn't make sense."
Corroon's concerns: That even with optimistic but realistic revenue projections, the team would lose money and was an unsafe investment. Also, with just a minor drop in ticket sales, the amount of debt required for the project would put RSL in default.
Salt Lake County Mayor Peter Corroon: "The proposal we actually had was a proposal that made sense, unfortunately the viability of the team and the project didn't make sense."
He said that Salt Lake County wasn't averse to helping, but that the risk became too much of a gamble.
Salt Lake County Mayor Peter Corroon: "While I am a soccer fan and believe Real has shown that it is a great addition to the community, I believe and have decided that Salt Lake County should NOT use hotel tax dollars to purchase the land and provide the infrastructure for the stadium."
He concluded the press conference by thanking Real for the contributions made to the community and encouraged them to pursue alternative financing.
This decision came as no surprise for Salt Lake County Councilman David Wilde. He has spoken out against public funding for the stadium for months, urging caution.
David Wilde, Salt Lake County Councilman: "The only people who are angry about this are the people who wanted a foreordained outcome, and said ‘We don't want to hear anything anyone has to say. We just want the deal done.'"
Mayor Rocky Anderson, Salt Lake City: "Where was the leadership at the state level, out in Sandy, or the county? Everybody involved seemed to do everything they could to just screw it up royally. This is gonna be a black eye for our community for a long time if we aren't able to bail it out."
Mayor Tom Dolan, Sandy City: "I have to admit I'm really not surprised…I'm not discounting what Real has proposed as their numbers, but even if you came more conservative it still works."
Most are still hoping something can be worked out, so that Real will stay here.
Up on Capitol Hill, Sandy's mayor suggests Corroon reneged.
Mayor Tom Dolan, Sandy City: "Everyone gets accused of making behind the scenes deals and backroom deals. But this was an agreement that was sat down and discussed, yes privately, with the mayor, his council members and legislators. And we came to an agreement."
Before Mayor Corroon's press conference this morning, he appeared in the Senate committee to fight Senate bill 64. The bill would take the county-wide restaurant tax and distribute it to cities instead. That would leave about a 15-million dollar hole in the county's budget.
Some say that was a 'slap' to Salt Lake County for the way the soccer stadium deal has gone. Officially, lawmakers deny such ‘slap' Salt Lake County bills exist. But behind the scenes, others say there's no other way to look at them.
County officials are worried about a cause-and-affect between the bill and the stadium deal. But lawmakers deny it.
David Wilde, Salt Lake County Council: "I haven't personally heard that from any legislators. I've heard from people at the county, a lot of concern expressed that ‘oh, they're out to get us.' I hope that's not true. And I hope it doesn't happen."
Sen. Michael Waddoups (R) West Jordan: "I'm stunned that people are even making that connection. This has nothing do to with RSL stadium. This is something we've been working on since last summer, trying to find a way to get these other entities additional funds."
Rep. Greg Curtis, House Speaker: "Is it desirable to make the mayor scramble? No, that's not what these bills are about. This is simply about the distribution and how that works."
House Speaker Greg Curtis and other lawmakers say there is a legitimate 'fairness issue' with the restaurant tax. There are other bills that could affect the county's budget to the tune of tens of millions of dollars. But the issues behind them are also legitimate, they say.
As far as some sort of legislation to save the stadium from here on, most legislators say it's not going to happen. As far as they're concerned, the soccer stadium is just not going to be built.
Rep. Greg Curtis, House Speaker: "I kind of feel like the lone legislator. This soccer stadium is out in Sandy City and I've probably been the most vocal legislative champion, but I'm one out of 104."
Corroon says team owner Dave Checketts told him that he could have a buyer for the team by Friday.
Meantime, soccer fans say they'll be sorry if the team leaves.
Jim Sciumbato, Owner, Soccer Plus: "I think it's now up to Real to come back to the table with something they can accept."
Corroon says the county would still be open to negotiating with the team regarding the parking it is building across the street from the stadium site. He says he supports the county spending 7.5 million dollars toward the purchase of youth soccer fields that was part of the original deal.
(The Associated Press and Deseret Morning News contributed to this report.)
