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The city council has already halted any additional funding past what has already been approved (18 million) towards the theater to consider what is obviously the better alternative across the street. The site preparation (which the city will be paying for) will cost substantially less across the street since the site is already mostly cleared.
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You might want to check on this part. The Council hasn't stopped any funding. They have put up money for architectural work, demolition and to start with the foundation work. The next installment won't occur until the existing amount has been used.
I know that the owners of the parking lots want to sell. They are land bankers. They are interested in anything that makes them money.
The problem with moving the theater is that the City, County and LDS Church have all agreed on the given location.
Now, here is something that most might not want to hear: Everyone might remember the "Glass Tower" on the original CCC wooden model, that was slated to go on the SE corner of 1st and Main. This tower was going to have underground parking entered from the new mid street ramps on 1st South between Main and State. The parking structure was going to stretch to the Tribune building. Above the structure they were going to have some smaller retail space at ground level and a mix of office and residential spaces above. The initial heights were 430' for the "Glass Tower" and 85' for the remaining space down to the Tribune building.
Once the city started looking for locations for the theater, the LDS Church approached the city with the land. It wasn't the city that approached the Church. The Church approached the city because they wanted to be good neighbors and didn't want to come across as wanting to own downtown.
Something else that might be interesting for a few, the LDS Church as tried to buy the parking lots around the Zions Bank. This way they can do what they can to have the land developed in a way that will benefit the community and surrounding businesses. They have been trying to purchase them for nearly a decade now. They don't want to piecemeal it, they want all at once. This removes the single land banker driving up the costs. This is also why they haven't been able to purchase them in over a decade.
My understanding is that if the theater goes elsewhere, the same buildings will be demolished and the original plan will be constructed once market conditions meet their requirements.
None of the buildings would be saved. The cost to rehabilitate and remodel for reuse is just to great. They won't survive an earthquake without substantial retrofitting. The community as a whole just doesn't care about the building the same way as the Deseret building.
The only thing that happens if the theater is moved is that the Prudential building stays another couple of years, maybe.