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Put the theater across the street, or put the whole development down on 400 south (same property owners)?
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The problem with both locations is the parking. City Creek doesn't have any excess parking available. Most people won't walk 1.5 to 2 blocks from parking yet. 4th South is even worse for any excess parking availablility.
Would you rather have no project or lose a few buildings which neither is on the historic preservation list.
Developers will build where they will get the greatest benefit. Right now that is where they are planning. To get any developer to build on the 4th South parking lot, there will need to be a draw for developers, low cost is not always a draw. Tenants need something nearby.
I agree that there are a lot of empty lots that need to be filled. But if a city started to force developers to build on these lots first, we would see a lot of crappy single story buildings like the ones that were put up before the Olympics where 222 now sits. All that would do in a lot of places is mean more empty storefronts. That doesn't help the city, people nor developers.
Sadly or positively depending on how people look at things, we will see more buildings being razed before we see any large developments happening on parking lots downtown.