City Council members, acting as the Redevelopment Agency, have approved a $1.6 million loan to the Summit Group, a Salt Lake City-based marketing firm that has plans to restore, and then move into, the United Electric building at 117 W. 400 South.

That group wants to create its own neon sign in the historic style of the old United Electric sign.

In another action, the council also approved a $2 million loan to Vectra Management Group, which hopes to upgrade the offices at the Walker Center, 200 S. Main St.

William Paulos said United Electric's neon sign overhanging on the sidewalk on 400 South was a main factor in the Summit Group's decision to move its offices from 136 E. South Temple - even though United Electric moved earlier this decade to 751 S. 200 West. The sign has a long history. Years ago, it generated controversy when the city removed all overhanging sidewalk signs from the downtown area.

Officials eventually allowed United Electric's to remain because of its landmark quality.

"We are hoping to keep the sign up to reflect our name," Paulos said. "If not over the sidewalk, then hopefully on the building somewhere."

The group will be using the money to "replace everything but the outside walls," Paulos said. The firm also plans to remove the loading dock from the building. The dock was a problem for United Electric owners when 400 South became an artery leading to Interstate 15.

On Main Street, the 94-year-old Walker Center - noted for its large, blinking rooftop sign that alerts residents to get out their snow shovels anytime the light changes from blue to flashing red - also will be renovated.

Vectra did not name prospective tenants, but its spokesman said the management company hopes to attract businesses by reconfiguring office space so companies can occupy a single floor.

"We won't be reconfiguring any current tenants, but we believe that class A office space will allow us to do more," said Jim Tozer.

The company plans to use the money to replace the building's aging mechanical systems and its parking lot.

As council members inquired about the possibility that the plans might include retail on the first floor, Tozer said the renovation would be "flexible enough to allow for that if the opportunity arises."

lorib@sltrib.com