Salt Lake City Council members have known for more than a year they need to find a solution to the two dilapidated single-room occupancy hotels (SROs) on State Street in the downtown area. On Thursday, they took a minor step toward a fix. The problem: The buildings are owned by the city's Redevelopment Agency and, because of their dilapidated state, make the city look like a slumlord. But they offer a much-needed home to the city's down-and-out, providing weekly rents and no criminal background checks. Council members want to tear down the Cambridge and Regis SROs, between 241 South and 255 South, and replace them with higher-rent housing or office space or both. First, they need to find a replacement for the 116 units. Council members agreed Thursday to seek developers who could both provide new SROs elsewhere - but near public transportation, social services and shopping - and redevelop the State Street properties into a higher class project. RDA staff say at least three such developers have already shown interest. "Every time I drive by there, my heart kind of sinks thinking of people staying there," said Councilman Van Turner. - Heather May