Salt Lake Tribune
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Ogden turns down office space funding
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

OGDEN - The City Council may be optimistic about downtown Ogden's future, but it refused Tuesday night to gamble with taxpayer money on future demand for office space.

The administration of Mayor Matthew Godfrey wanted to add two more floors to the office building The Boyer Co. plans to build in the new outdoor mall, The Junction, at the corner of Washington Boulevard and 24th Street. The city, which owns the land, is a partner in the project.

Boyer had already declined to increase the building from four stories to six, and the council voted 4-3 not to build bigger either.

"I did not like the risk of it," said Councilman Rick Safsten, who cast the deciding vote.

Councilman Brandon Stephenson, however, said the vote sends a risk to potential investors in Ogden's renaissance. "We've sent a signal . . . that even we are not optimistic about what is happening in Ogden City."

Dave Harmer, the city's community development director, said the administration wanted more of a "landmark" building for the "landmark" corner at the center of downtown. Already, the corner has an eight-story and a 12-story building.

Under the resolution rejected by the council, the city would have leased the extra 31,500 square feet of office space at a cost of nearly $400,000 a year.

The idea was for the city to secure tenants for that space, and the city - not Boyer - would have pocketed that lease money until it had recouped all the money it spent leasing from Boyer.

After recovering its costs, the lease revenue from all of the office building - like the others Boyer is developing in The Junction - would be shared 50-50 between Boyer and the city.

More office space would mean more money for the city, Harmer said.

"It's worth the city taking a little bit of exposure," Harmer said. "This would also benefit the city financially in that our agreement . . . has us sharing in the revenues with Boyer for many, many years into the future."

The majority of the council, however, did not want to commit to spending revenue from the Business Depot Ogden to cover the lease payments until office tenants are found.

Council Chairman Jesse Garcia said the council had committed that revenue for improving the city's aging sewer, water and street systems. And the council already agreed to tap that revenue to help pay for the high adventure recreation center in The Junction.

One factor in Boyer's refusal to build a six-story building was competition from Property Reserve Inc., the real estate arm of the LDS Church, which bought the northern two corners of The Junction from the city

PRI announced a class-A office building of its own in The Junction earlier this spring and has begun construction.

"If PRI had not announced at time they did, Boyer would have moved forward with a six-story building," Harmer said.

Mixed signal? The issue focused on two extra floors in a new 'landmark' building
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