Downtown Theatre Would Cost $81.5 Million, Study Finds

Jul 14, 2008 by Jeff Robinson

(KCPW News) Building a 2,400-seat, Broadway-class theatre in downtown Salt Lake City would cost $81.5 million, according to a draft report just prepared by the city's Downtown Theatre Action Group, led by Broadway producer Bill Becker. But despite the price tag, Becker says it could be publicly financed through a mix of tax credits, money from the city, county, and state, as well as sales tax revenue.

"City Creek is coming online; there will be an estimated $18 million in new sales tax revenues that are presently not being collected from that area," said Becker. "The cultural and entertainment district encompassing a larger area will be collecting additional incremental sales tax revenues. This theatre, when it's constructed, will generate additional incremental sales tax revenues."

The Bureau of Economic and Business Research at the University of Utah estimates the theatre would create more than $13 million in economic activity per year and more than 500 jobs, while selling $11 million worth of tickets.

But don't expect the theatre to be an architectural marvel. Salt Lake City Economic Development Director Bob Farrington said the inside of the theatre is more important.

"In some respects, a big theatre is almost a big, black box. What you're really focused on is more of the patrons' amenities inside the theatre, and it could be surrounded by retail space or housing or some other use that cloaks the exterior, certainly having a nice street presence, but I think the feeling is anything else is costly and really unnecessary," said Farrington.

Becker recommends the city pursue negotiations for a theatre site immediately. The four leading candidates are the Utah Theatre, the old NAC building, and two parcels close to the Rose Wagner Performing Arts Center on Broadway. Becker said it should be only a matter of months before the city acquires the property.

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW