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'Grand Boulevard' could put squeeze on businesses
This is an archived article that was published on sltrib.com in 2010, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

In a first-of-its-kind move, Salt Lake City is poised to create a new taxing district along North Temple between downtown and the airport that, for decades, would tap property owners to help fashion a "Grand Boulevard."

If adopted, owners from about 400 West to 2400 West would pay more than $200 per foot for both one-time construction costs and ongoing maintenance, including trash and snow removal.

The street beautification, intended to blend with the planned airport TRAX line, would include new lighting, landscaping, multipurpose sidewalks, decorative walkways, bicycle paths and public art.

A coalition of area property owners estimates the two fees, which would generate nearly $4.5 million, would apply to more than 130 owners.

Property owners could finance over 10 years the one-time $185 per foot capital-project fee. The operating and maintenance fee -- $17.50 per foot after year one -- would be assessed for 30 years.

Mayor Ralph Becker's team repeatedly has said area businesses are supportive. But some owners, including a group that meets regularly, have concerns.

"To have the burden of another tax or another fee might put some people out of business," says Pete Funaro, owner of Diamond Lil's restaurant at 1528 W. North Temple.

Funaro complains the proposed $185 construction tab already has been increased twice and says he is confused about the total package.

"I want to see it in writing, and I want to study it."

What's more, Funaro says, his "beautiful" log cabin restaurant made of Montana pines already has its own landscaping. If the district is created, he would be charged about $40,000. "That's a big chunk of dough in these times."

Tonight, the City Council is expected to adopt a "notice of intention" and to schedule an April 13 protest hearing. A vote tentatively is set for June 1.

North Temple's largest property owners are on board. The state, which owns 3,192 feet of frontage, would kick in $591,000 to pay for lighting on their property. Rocky Mountain Power (2,743 feet of frontage), would participate in the $185 per-foot assessment, city officials note.

By way of comparison, the lighting upgrades across the much smaller 9th & 9th retail district cost property owners $245 per foot.

City leaders say the North Temple taxing district represents a "new strategy."

"The city has frequently established lighting-maintenance districts, but has never before established a general maintenance district," a city document reads. "North Temple will be the first."

The 30-year term could eventually need to be extended, the report continues, "since it is not likely the city will replace these improvements sooner than 50 years."

Appearing before the City Council last year, Darren Menlove, who helps run North Temple's sprawling KOA campground, suggested the fee could be crippling. "It's a real hit to us," he told the council. "And it really serves no purpose."

Many property owners say new lights, landscaped park strips, wide sidewalks and a canopy of trees are good ideas -- unless they bear the bulk of the cost.

"I'm not so sure they can't come up with a different way," Funaro says.

Most of the North Temple budget already is allocated to embed the light-rail tracks in colored concrete. West-siders cheered the decision, but it also created the funding gap that led to the taxing-district idea.

Overall, Becker expects the North Temple makeover -- complete with a new viaduct -- to create a welcoming city gateway. The city has $25 million from Utah Transit Authority, $20 million from the state, and $5 million from Wasatch Front Regional Council to help pay for the viaduct.

Salt Lake County and Salt Lake City School District also have agreed to a Community Development Area, which would divert a portion of future tax revenues to the viaduct as property values in the area spike. Most of that land is owned by Gastronomy, whose future mixed-use development, just north of North Temple between 400 West and 500 West, is expected to generate at least $13 million toward the venture.

Still, the mayor's team argues, the overall vision for the gateway won't be complete without the comprehensive tax district.

djensen@sltrib.com

In other city news:

» City Council members are expected tonight to approve a "betterment agreement" with Utah Transit Authority authorizing the agency to demolish and build a new North Temple viaduct.

» Mayor Ralph Becker is expected to sign an interlocal agreement with Salt Lake County to have an ownership interest in Hogle Zoo capital improvements funded by 2008's voter-approved $33 million bond.

» Red Iguana restaurant is requesting the city close and abandon a portion of right of way adjacent to properties at 866 West and 858 W. South Temple to make way for outdoor dining at a new Red Iguana location.

What's next

Tonight, the City Council is expected to schedule April 13 as the protest hearing date for the special taxing district. A formal vote tentatively is scheduled June 1.

Tax district » 'New strategy' would collect cash for lights, landscaping, sidewalks and snow removal along an upgraded North Temple.
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