you have 3 choices
#1 - $$$ stay up in the canyon at either snowbird or alta loding, convenient. limited dining and no real nightlife or ski town ambience
#2 - $ stay down in Sandy, (20min's or SLC 30mins) - Lots of cheap places, better to hit PCMResorts or Snowbasin, cheap varied eats, city/suburb atmospyhere, also you will sleep better down lower
#3 - Park City - nice ski town atmosphere, shopping and strolling at night 3 good resorts right there. an hr to snowbird/alta(some might say less but give it an hour-worth the drive). more $$ than sandy/slc.
I've done all 3, but we just are in the habit of staying at La Quinta in Sandy, lots of restaraunts close, $65/nt for room with nice ski breakfast. about 25 min's to snowbird/atla.