Council Provided Information - 8/23/2021CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM:Sam Owen, Policy Analyst
DATE:August 24, 2021
RE:Public Benefits Analysis – USO Lounge at the Airport
ISSUE AT-A-GLANCE
United Service Organizations (USO) provides support to active US military service members,
including the guard and reserve. The Administration has proposed the City provide space at the new
airport to USO, who will prepare and staff the area with support for traveling active service members
and their families. Amenities provided by USO will include entertainment, libations, snacks and
wireless internet. The public benefits analysis is related to the space that would be provided without
lease fees, and costs for other services (trash and utilities) rendered to the facility would be absorbed
by the airport.
Utah law requires the proposal to pass through the form of a resolution with a public hearing, in this
case legislative functions of Salt Lake City with its jurisdiction over the airport.
ADDITIONAL BACKGROUND
- The airport indicates that at 933 square feet, the space is too small to be used commercially,
and to boot, it’s on the same floor as the other commercial uses. The annual value of the lease
waiver to the airport is $23,000. (See Appendix C for details on the cost estimate.)
- The lease is written for a term of five years, with two options for additional terms each of the
same length. Renewal is at the city’s discretion.
- The transmittal states the USO does not receive revenues from its services rendered at such a
facility as the one being considered.
- Costs for development and operation will be covered by USO.
- Fees proposed for waiver include utility fees; the room is not metered separately from the
airport.
- For waivers to for-profit private entities, Utah law requires the following factors be considered.
For waivers to non-profit entities, the practice of reviewing the factors is seen as a useful, but
legally required, support (the following is paraphrased from the statutory reference on page 4
of the transmittal):
Item Schedule:
Briefing: August 24, 2021
Public Hearing: Sept. 7, 2021
Potential Action: Sept. 21, 2021
Page | 2
o Specific benefits, including intangible ones, to be received by the City in
return for the arrangement;
o The City’s purpose in making the resources available at no cost, including
an analysis of how the health, stability and comfort of the community will
be enhanced;
o Whether the assistance from the City to the other entity accomplishes goals
such as economic development, job creation, or any other public purpose.
POLICY QUESTIONS
1. The transmittal indicates that community support is a component to the proposal
gaining momentum. Council Members might wish to learn more about the local
advocates, and the social history of the issue.
2. The Council might wish to ask about other USO Lounges in other airports, and how this
proposal compares.
3. The Council might wish to discuss cost to the airport for providing the lease and other
services in more detail.
APPENDIX A
Entering into the Facility Lease for the Lounge with USO at the Airport will benefit the
residents of Salt Lake City and surrounding communities by demonstrating Salt Lake City’s
support of all military service members and their families around the country who will fly
through Salt Lake City for many years to come. (Transmittal, page 2)
APPENDIX B
Though space at the new Airport is still very limited, the limited space available best accommodates
a use such as the Lounge at the Airport, which permits the City to respond to interest from the local
community and meet a long-term goal for the City. (Transmittal, page 2)