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South Salt Lake » Creating a vibrant, urban village around the planned Sugar House Streetcar could require a financial assist from city officials here.
Steve Aste, developer of Market Station, asked the South Salt Lake City Council Wednesday to consider issuing a $10 million bond to acquire land needed for the $500 million housing, shopping and office center.
"It really boils down to their belief in the project, whether it's going to happen or not," Aste said in an interview.
The council directed staff to work with Aste's Z Partners and an independent consultant to study bonding options and make a recommendation at a Sept. 23 meeting.
"We need to think in those terms of how do we make [Market Station] work because it will be a great boon to this city," said Councilman Boyd Marshall.
At the meeting, Aste hinted the project could include a film studio. Ricky Flores of the Utah Film Commission spoke in favor of such an amenity, noting it would help draw Hollywood productions to Utah.
Market Station has been slowed a couple of years by the economic downturn, but could take shape in the next five to seven years, Aste said. A $10 million bond would be used to acquire 10.7 acres at the site, which sits between 2100 and 2300 South and Main and State streets.
Already, South Salt Lake's Redevelopment Agency has agreed to pitch in $24.4 million of the new property taxes that Market Station would generate in its first 15 years. The money could fund public improvements, such as utilities, parking, open space and curbs, at the development. Additionally, the city has pledged up to $1.6 million of sales tax from Market Station businesses.
In an interview, Aste said a $10 million bond could be structured so that South Salt Lake has "no out of pocket expense." The debt would be repaid with the income generated by commercial leases and condo sales.
"The
At the council meeting, Councilman Roy Turner raised the issue of who holds the debt if Market Station falls short in its bond payments.
"A very important piece of this," he said, "would be the city's risk."
» $500 million
» 900 condos
» 350,000 square feet of offices
» 85,000 square feet of retail
» 12 to 18 acres between Main and State streets, from 2100 to 2300 South.
With Granite High shuttered, South Salt Lake and Salt Lake County are interested in using the 35-acre property for park and community space.
On Wednesday, South Salt Lake received a preliminary study from a consultant. Gerry Tully of planning firm Psomas, suggesting the city could turn the historic high school into a new City Hall and transform out buildings into a black-box theater and art center.
The study also envisions a large, recreational area that would upgrade existing athletic fields and tennis courts. A large outdoor pool could be placed next to the school's indoor one. Tully suggested the park area could be an opportunity for the city to partner with Salt Lake County.
South Salt Lake and the county have first and second rights of refusal, respectively, if Granite School District decides to sell the 100-year-old school.
