I disagree completely that the city has been pretty permissive. This just isn't true. I think downtown, they're a bit more open to development demands but downtown being the CBD. Everything beyond downtown, the city sets up ridiculous restrictions that have killed multiple major projects in the last few years.
There have been multiple SugarHouse projects that were nixed over height concerns, most notably the corner where Wells Fargo is located currently and of course, the hotel proposal that somehow doesn't fit into the area despite three similar-sized developments across 1300 East.
The city is also poised to reject this building:
The city has very restrictive zoning laws and it's a big reason SugarHouse looks like the same two developments copy and pasted throughout the neighborhood: because the restrictive zoning laws kills any opportunity for diverse development as it all starts to resemble the same 4/5 story buildings.
Salt Lake is the opposite of permissive. It's why whenever a major project actually gets built, it's a minor miracle, especially outside of the CBD.