New Sugar House plan: Hel-condo-retail project wins approval
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Judi Short, who lives in a 110-year-old Sugar House bungalow, is old school.

She likes the neighborhood's small scale and eclectic charm. So when she saw a California builder's blueprint to cram the Granite Block with a six-story hotel and a health club, along with 320 condominiums above national chain stores, restaurants and boutiques, it was "kind of a shock."

Then came the epiphany. After all, with the economy foundering, and developer Craig Mecham's makeover for 2100 South-Highland Drive suspended, perhaps the 5 1/2-acre project farther west is the surest way to resuscitate a once-buzzing Sugar House.

"We need something to bring the place back," said Short, the land-use point person for the Sugar House Community Council. "We're trying to do a mini-downtown with a 24/7 population. Over time, it will be."

Despite some concern over the size and traffic congestion, the Planning Commission agreed -- approving Red Mountain Retail Group's plan last week.

And unlike many developments hamstrung by the credit crunch, Red Mountain insists it has financing in place. Indeed, vice president Eric Nelson says he is "shovel-ready" -- with tenants and a hotel operator on board -- ready to dig in this summer.

"We certainly believe in Sugar House," Nelson said. "We believe we can reenergize the street and bring activity further south."

Instead of new construction, most of the work focuses on reuse.

Red Mountain intends to renovate the Granite Furniture warehouse, part of the Granite Furniture showroom, and the Leisure Living building. The plan also calls for new buildings on McClelland Street and Sugarmont Avenue.

"The buildings themselves and the bones of the buildings are in good shape," said Nelson who "absolutely" will pursue some level of "green" Leadership in Energy and Environmental Design certification.

The large-scale restoration also includes little touches, such as preserving the Granite Furniture "star" sign. And the builder revised the original outline to create space for the Parley's Trail alignment.

Philip Carlson, a Sugar House resident and community council member, is excited. He says the hotel and high-density housing make sense, especially since capital planners have targeted the area for a streetcar link to mass transit.

"And I like the reuse of so many things," Carlson said. "I wish the other half of the block would have taken this approach."

The city hoped Red Mountain and Mecham would coordinate their development plans. But Mecham's 4.5-acre retail, office and residential project -- approved in August -- hit the skids when the economy stalled. Mecham, who says he has financing with "dangling participles," now has until the end of the month to fill the hole on the iconic Sugar House corner just south of the monument marking the neighborhood's history. The builder has been heavily criticized for bulldozing his row of kitschy shops along with the old Blue Boutique.

City Councilman Soren Simonsen says there are many "favorable" elements to Red Mountain's plan, including the hotel. But it only works, he argues, if the streetcar eventually is built. Simonsen notes the surrounding streets are too often clogged with cars and cannot afford more congestion.

"We've got to have additional systems in place to accommodate it," he said.

Nelson agrees, and both men note the streetcar is Mayor Ralph Becker's top transit priority. Once finished, Nelson predicts both projects will blend as that urban-planning buzzword: a transit-oriented development.

"The city recognized that to be a real mixed use, urban core it had to be dense," Nelson said. "And it had to be the whole block. One thing to remember is we're not ripping buildings down where we don't have to."

If Red Mountain meets its goal, the renovated buildings could be occupied by the end of this year. Nelson says he has commitments from commercial and residential tenants, but would not reveal any of the merchants.

"There's a ton of interest for the Sugar House area, especially for this block," he insisted. "Finding tenants is a lot harder than it's ever been, but it's not impossible."

Short says she'd love to see the independents come back, but with the likelihood of raised rents, "they can't pay it." She also worries about the recessionary cloud that shows little sign of lifting.

"Eric says he has funding, but that's today. Who knows what will happen when he starts working on it."

"But if he can restore the first two buildings and get that going," Short added, "that's a good start."

Nelson is realistic about the economic climate. Asked directly if he has bank funding in place, the developer responded, "I do today."

djensen@sltrib.com

Granite Block » California developer hopes to revitalize gutted business district.
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