Monarchs rescind $18M Fairpark stadium agreement

Monarchs rescind $18M Fairpark stadium agreement

(Trey Fitz-Gerald/Real Salt Lake)


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SALT LAKE CITY — An agreement for the proposed development of a new soccer facility in Salt Lake City has apparently been lost.

On Wednesday, Real Salt Lake owner Dell Loy Hansen notified Utah State Fairpark administrators that the club has rescinded its January proposal for the stadium development at the fairgrounds.

Last month, Hansen announced his intention to build an $18 million, 8,000-seat stadium at the Utah State Fairpark, with the stadium to serve as the future home of the Real Monarchs soccer team. In an effort to expedite the stadium's development, Hansen agreed to pay the entire cost of construction, signing a term sheet contingent on the state of Utah extending the Fairpark Corporation's lease on the fairgrounds for an additional 40 years (the current lease expires in 2017).

But legislative wrangling has caused the Logan-born businessman to reconsider his proposal.

"Unfortunately, the timing and process involved with this project no longer make the venue a viable option for the business plans regarding the Monarchs and ancillary properties," Hansen said in a prepared statement.

Upon hearing the news of Hansen’s offer being rescinded, project supporter Sen. Kevin Van Tassell, R-Vernal, expressed disappointment.

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“It’s unfortunate,” he said. “When one party decides to withdraw, then it’s a loss to us. So now we go to Plan B and look for other deals that we can make the Fairpark more viable.”

He said that he wanted “to see the deal done in the worst way,” but with one side now out of the picture, he is unsure the deal can be saved at this point.

“I hope that we can patch it together, but we won’t know until we have (more) discussions,” Van Tassell said.

The new team is slated to begin play in March. Hansen formed the Monarchs as an elite lower-division professional to play in the USL PRO league. For the inaugural 2015 Monarchs season, the club will play a 28-game regular-season sharing Rio Tinto Stadium with Real Salt Lake while continuing to seek opportunities locally for a permanent home.

Under the initial provisions of the short-term arrangement, the Monarchs would have paid a guaranteed $3.3 million over 20 years for lease of the space at the Utah State Fairpark and split half the net parking revenues with the venue. In addition, the fairpark would be allowed to use the stadium for three weeks each year as well as guarantee a certain number of parking slots. The deal was due to expire on April 23, but Hansen pulled his offer citing problems with the agreement process.

At the time the deal was announced, Lowell Peterson, the fairpark's vice chairman of the board, said the only major hurdle to construction of the new stadium is the extension of the lease for 40 years. The current lease is set to expire in 2017, which fairgrounds executive director Michael Steele said is already interfering with his ability to book events.


We have a convention that wants to book. We have a motorcycle group that wants to book a rally in July 2017, but we can't sign an agreement with them. Everything is shrouded in a cloud of uncertainty.

–Michael Steele, fairgrounds executive


"We have a convention that wants to book. We have a motorcycle group that wants to book a rally in July 2017, but we can't sign an agreement with them," Steele said. "Everything is shrouded in a cloud of uncertainty."

The Utah Legislature has been struggling with what to do with the Utah State Fairpark site. Although the 11-day fair makes money, it is not enough to keep the entire facility operationally viable. A planned rodeo stadium was never completed, and buildings have fallen into disrepair because of decades of neglected maintenance.

A land use study looked at a variety of possible "best" uses for the site, reaching out to a number of stakeholder groups that include west-side neighborhoods, potential developers, the Utah Farm Bureau and others.

The report concluded that relocating the fair and replacing the buildings at a comparable level would cost up to $160 million. To hang on to the facility would require an investment of $47 million long-term.

The State Fairpark Corporation is an independent nonprofit public corporation created in the 2011 legislative session as an entity outside of state government so it could pursue profitable ventures for the site.

Despite the bad news, Steele said, he has not given up on possibly salvaging the stadium deal, though he is not especially optimistic about a favorable resolution and fears that a "golden opportunity" may be lost with no viable alternative on the horizon.

“No one has ever shown up with their own checkbook willing to cover the costs (of development),” Steele said. “This was a first, and it seems like this opportunity has been squandered.”

He added that he has requested a meeting with Hansen to see whether the situation can be rectified, but has yet to receive a reply.

“I was very hopeful and we had a lot of support on (Capitol) Hill,” Steele said. “We’re going to keep pushing. I hope this isn’t the end.”

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