Provo MSA Development Thread

[delts145]

Work stops on $100M Orem project

http://www.deseretnews.com/article/1,5143,695258135,00.html

"People can't get funding, sales have slowed down," said Larry Myler, project owner. "People are waiting for the market to hit bottom before they do anything. I think we're in the same boat as every other project waiting for sales to start up again. That's pretty much our revenue."

[SLC Projects]

Originally Posted by delts145

Work stops on $100M Orem project

http://www.deseretnews.com/article/1,5143,695258135,00.html

"People can't get funding, sales have slowed down," said Larry Myler, project owner. "People are waiting for the market to hit bottom before they do anything. I think we're in the same boat as every other project waiting for sales to start up again. That's pretty much our revenue."

Just a thought, But what is this going to do with the Lehi Grahy project? I can see that project getting delay or downsize.

[AlexanderJ]

It's interesting to watch Myler blame current market conditions when this project has been on a bumpy road from day one. I'm just not buying a lot of what he's selling.

[Wasatch_One]

Originally Posted by AlexanderJ

It's interesting to watch Myler blame current market conditions when this project has been on a bumpy road from day one. I'm just not buying a lot of what he's selling.

I agree AlexanderJ, if this guy had his ducks in a row back in 2002 when this was proposed, he would have sold all of them long ago and this thing wouldnt become an eyesore.....

If this thing doesnt get finished..... wow.

[i-215]

Originally Posted by AlexanderJ

It's interesting to watch Myler blame current market conditions . . . I'm just not buying a lot of what he's selling.

Nor is anyone else. Dun dun ching!

[Orlando]

Work stops on $100M Orem project


Well, hello? Didn't he realize that huge thing was on non-luxurious state street or whatever that street is????? That might have worked if it were in a nicere area like Riverwoods or downtown Provo.

[delts145]

We all want to see Orem develop a sense of Urbanity, such as a core downtown, but you're right Orlando. This project is a first for that area, and as a first, it's going to take it some time to catch on. It reminds me of the South Towne Mall in Sandy, which was a little ahead of it's time. Eventually it went belly up and someone stepped in and purchased it for a bargain basement price. Eventually, reality caught up with the developers vision, and now it's one of the best locations in the metro. This area of State in Orem will eventually become highly prized. But, there are a lot of surrounding developements which need to take place first. Either the developer should have built in a different area as suggested, where the surrounding support would warrant such a project, or at least he should have first lined up a larger island of similar development, much like Boyer typically will do with it's similar projects. Right now we will probably see prices on these units take a sharp decrease and the developer will be lucky to get out of this intact.

.

[Northernlad]

Originally Posted by SLC Projects

Just a thought, But what is this going to do with the Lehi Grahy project? I can see that project getting delay or downsize.

I fear that we may hear more delays or downsizing taking place this year as the economy slows and moreso considering that Utahs housing market has crashed, and has crashed hard. We are not going to be as bad off as places like San Diego, Phoenix, Las Vegas, but according to a few humans I now who are real estate agents here in the valley, the current market is not pretty.

[Wasatch_One]

The problem with Orem, is that even WITH this project, they arent developing an urban environment moving forward. They need to zone an area and require building up to the sidewalk (a la SLC, Ogden and Provo downtowns.) But there really isnt any land to creat a downtown on.

I recently noticed some empty lots along Center St in Orem, buuuut, true to their form, theyre just building big parking lots with the buildings set back some distance from the road...

There is no hope for urbanity in Orem in my honest opinion. This entire mid-town project was a good idea but truly the wrong place...

[Future Mayor]

Originally Posted by Northernlad

I fear that we may hear more delays or downsizing taking place this year as the economy slows and moreso considering that Utahs housing market has crashed, and has crashed hard. We are not going to be as bad off as places like San Diego, Phoenix, Las Vegas, but according to a few humans I now who are real estate agents here in the valley, the current market is not pretty.

I wouldn't by any stretch of the imagination consider that the UT housing market has crashed. I would say it has slowed down but for the most part homes have not lost value in UT, the appreciation has simply slowed.

Phoenix, Vegas, San Diego, and Florida, now those are markets I would consider as having crashed. There hyper appreciation over the past ten years led their markets to this, while UT for the most part has had a steady appreciation.

Then you have the markets like the midwest rust belt regions that have crashed. The crash hasn't been due to huge appreciations but due to the forclosure crisis. The City of Cleveland Ohio alone has had over 10,000 homes go into foreclosure in the past year. Yes over 10,000, with an estimate of nearly that many in the next year. That is devistating to an already stagnant housing market.

While UT may seem to be hurting, I think it is all relative to if we compare it to UT over the past few years or view it on a more broad basis.

[SLC Projects]

Originally Posted by delts145

We all want to see Orem develop a sense of Urbanity, such as a core downtown, but you're right Orlando. This project is a first for that area, and as a first, it's going to take it some time to catch on. It reminds me of the South Towne Mall in Sandy, which was a little ahead of it's time. Eventually it went belly up and someone stepped in and purchased it for a bargain basement price. Eventually, reality caught up with the developers vision, and now it's one of the best locations in the metro. This area of State in Orem will eventually become highly prized. But, there are a lot of surrounding developements which need to take place first. Either the developer should have built in a different area as suggested, where the surrounding support would warrant such a project, or at least he should have first lined up a larger island of similar development, much like Boyer typically will do with it's similar projects. Right now we will probably see prices on these units take a sharp decrease and the developer will be lucky to get out of this intact.

.

I agree on both sides here. If Orem can set up a City Core then Midtown Village wouldn't look so out of place. The thing is we have all these one story store on state street and the BOOM!...There's a 7/8 story mega building that just kind of pops out of nowhere. I do agree with Wasatch_One that having it on State Street that is six lanes wide and that the buildings does not go up to the sidewalks doesn't help. I have kept eye on this project now for a few years and have been taking pics of it from time to time. I am happy that it has underground parking. That's a plus. If we can get some other developers come in and built more midrise projects around that area that would help. But that won't be enough. I do like urbanboy's idea of having a light rail run up around that area. Maybe having light rail tht runs up to Midtown would help. ( Crazy I'm agreeing with urbanboy on something ) LOL. But it's a good idea I think.
However I see Orem as being the "Sandy" of Utah County. They can built all the mid-highrise they want, but it won't ever be a "Downtown"
Just my two cents.

[Orlando]

Originally Posted by Northernlad

I fear that we may hear more delays or downsizing taking place this year as the economy slows and moreso considering that Utahs housing market has crashed, and has crashed hard. We are not going to be as bad off as places like San Diego, Phoenix, Las Vegas, but according to a few humans I now who are real estate agents here in the valley, the current market is not pretty.

This goes back to my first comments about the Gehry/Brandt Anderson project. Brandt Anderson is a naieve kid with a lot of money. There is no way that the market has a demand for anything that size. Come on, who was he kidding? A 40 story 5 star hotel in Lehi!????

I think he should keep the project with Gehry, but scale it down say 1/2 of the original size.

[SLC Projects]

Originally Posted by Orlando

This goes back to my first comments about the Gehry/Brandt Anderson project. Brandt Anderson is a naieve kid with a lot of money. There is no way that the market has a demand for anything that size. Come on, who was he kidding? A 40 story 5 star hotel in Lehi!????

I think he should keep the project with Gehry, but scale it down say 1/2 of the original size.

The way the housing Market is right now he might just have to scale it down to 1/2. But I hope the hotel stays at 45-stories.

[delts145]

Remember, the Gehry project is not CCC. This is a project which will be built in phases, not all at once. How quickly the phases progress will depend on the market conditions for the area. Anderson has no need to push this project on a fast-track. From what I understand, the whole project can be strectched out for many years. Stretching a project like this over a space of 10 or even twenty years use to be the norm. We've gotten too use to the hyper-growth of the past few years. Anderson has no need to over-extend himself on this piece of property, which Imo he purchased at a bargain. He can afford to sit and phase the project in at whatever pace he can comfortably afford to risk, according to market.

[i-215]

Originally Posted by SLC Projects

The way the housing Market is right now he might just have to scale it down to 1/2. But I hope the hotel stays at 45-stories.

Ditto. I don't want to end up with a fancy-looking mini-mall and a Travelodge.

[Wasatch_One]

http://deseretnews.com/article/1,5143,695259617,00.html

Backers cheer I-15 expansion
By Catherine Smith
Deseret Morning News
Published: Friday, March 7, 2008 12:19 a.m. MST
1 comment
E-MAIL | PRINT | FONT + -

PROVO — The wait for congestion to lighten up on Interstate 15 in Utah County just got a little bit shorter.

Members of the Mountainland Association of Governments heard the new plans from the Utah Department of Transportation for the I-15 expansion project.

Merrell Jolley, a UDOT representative who helped spearhead the I-15 project, said even though the project was scaled back by the Legislature, he's still excited that the project can begin.

"Today is a banner day, one of the most exciting days," he said.

UDOT will now look for a design and construction company to begin the process immediately and actual construction on the project will begin in the spring of 2010 and construction is expected to take about five years, Jolley said.

The original reconstruction plan included widening the freeway and improving and creating new interchanges from 12300 South in Salt Lake County to Payson Main Street. Although the project was dramatically scaled down, it will still cost $2.6 billion, which the state will fund entirely.

The estimated price of the original I-15 reconstruction plan would have cost about $5 billion. Legislators decided to decrease the project to preserve the state's bonding capacity. Reconstruction will now take place from American Fork Main Street to Spanish Fork Main Street.

Story continues below
Congestion also snarls traffic from Lehi to the Point of the Mountain, which is no longer part of the expansion. However, some northern county officials aren't upset about the scale-back.

Eagle Mountain City Councilman David Lifferth said it would have been nice if the Legislature had approved an expansion for the entire proposed project, but he's pleased that at least some major needs are being met.

"We know we need greater capacity on I-15," he said.

Orem Mayor Jerry Washburn said the congestion from Lehi to the Salt Lake County line needs to be addressed at some point because of the high volume of traffic.

"We can't last long without improvements to the north of Lehi. ... That's one of the heaviest traffic problems that we have," he said.

Darrell Cook, MAG executive director, said the legislators placed specific language in the bill to allow UDOT to go before the Legislature in next year's general session and pursue more funding for a larger expansion.

He said legislators passed the smaller expansion to get the process started with the possibility of a larger project in the future.

Although the project was reduced, all the county officials were excited for the project to begin to move forward.

"This is a red letter day, when you think about how long you've been lobbying," Washburn said.

E-mail: [email protected]

[SLC Projects]

That's good news, However I think the reconstruction of I-15 should start at 10600 South, by South Towne Mall where it ended with the first I-15 reconstruction back in 1999. UDOT still needs to place on/off ramps at 11400 South.

[delts145]

UDOT nixes 4800 North as path for Lehi road

http://www.deseretnews.com/article/1,5143,695259869,00.html

The Utah Department of Transportation told members of the Mountainland Association of Governments Thursday that the option proposed by Lehi isn't reasonable.

.

[delts145]

Midtown Village - Economic woes throw Orem project in limbo - Ogden hotel stalled too, but Clearfield development on track


http://www.sltrib.com/business/ci_8503799

The north building is empty, its unfinished walls covered with insulation and scaffolding, and a chain-link fence and warning signs keep people away. The south building is finished, but only five of its 79 condominiums are rented. And just two businesses, a pizza restaurant and a title company, have signed on. A sign proclaims that Kneaders' deli is on the way.


Construction on the Midtown Village development in Orem has halted because of the soft housing market. (Trent Nelson/The Salt Lake Tribune )

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[Wasatch_One]

im going to copy and paste the entire article cause the sltrb articles arent accessible via the link after a month or so...

Midtown Village
Economic woes throw Orem project in limbo
Ogden hotel stalled too, but Clearfield development on track
By Donald W. Meyers
The Salt Lake Tribune
Article Last Updated: 03/08/2008 11:38:38 AM MST


OREM - Midtown Village is supposed to represent the best in upscale living.
Sales brochures for the mixed-use development on State Street invite prospective residents to "Live, Shop, Work, Play" at the million-square-foot development that boasts a mix of condominiums and shops in two high-rise buildings.
Yet developer Larry Myler's vision of a Gateway-like complex remains in limbo.
The north building is empty, its unfinished walls covered with insulation and scaffolding, and a chain-link fence and warning signs keep people away. The south building is finished, but only five of its 79 condominiums are rented. And just two businesses, a pizza restaurant and a title company, have signed on. A sign proclaims that Kneaders' deli is on the way.
Myler categorizes the project as not dead, but on hold.
It is awaiting a break in the economic storm so Myler can get the financing he needs to finish what he started. Another Myler project, this one a hotel pegged for downtown Ogden, is similarly stalled until the economy improves enough to attract investors.
But his third major project - Midtown Village at Legend Hills in Clearfield - is set to break ground in June.
Regarding the first two, Myler said the question is, "How long will it last? Markets tend to cycle and eventually even out. Now there is talk of a recession [and]

that is not helping us."
Yet officials in both Orem and Ogden are confident that the projects will eventually be built.
Midtown Village was touted by Orem as a centerpiece project. It was seen as a way to rehabilitate a blighted part of State Street, as well as enhance the local economy. There are plans to move the nearby Hale Centre Theatre to Midtown Village, creating a community where shops and cultural arts are within walking distance.
Myler said the project's target markets are retirees, empty nesters, couples and some singles. Among the amenities the project offers are a rooftop swimming pool, room service and a security detail that includes off-duty police officers.
But then, thanks to the subprime lending crisis, the real-estate market went soft, causing problems for Midtown Village and developments across the state and nation.
First, Myler said, prospective residents couldn't sell their old homes to buy the condominiums. Then lenders started backing away from mixed-use projects and luxury condominiums.
The project is on hold while Myler works out a survival strategy. His first priority is paying the contractors who have put liens on his property, then securing new financing.
Myler recently met with Orem's City Council to discuss his financial situation and assure it that the project is not dead - just on hold until people start buying luxury condos again.
City officials remain upbeat.
"We're confident that the developer will continue with the project and bring it to completion," City Manager Jim Reams said. "The challenges he's facing are the result of market conditions."
Orem has a stake in Myler's success, and it's not just polishing civic pride or shaking off author Norman Mailer's declaration that State Street is the ugliest street in America. In 2004, the city created a special-service district to help pay for parking at the site. The district's $7 million loan won't be paid off until Myler finishes the project.
But even if it isn't completed, Orem shouldn't lose any money, Reams said. The city has a lien on the property that stipulates its debt must be paid before that of any other creditors - including the banks.
Orem is not the only city waiting for the economy to improve so a Myler project can move forward. Dave Harmer, Ogden's economic-development director, said Myler's Midtown Village at the Junction hotel has been sidelined for funding reasons.
"We put together the basics of the project, but they said they're trying to finance it," Harmer said. He added that the credit crunch has hit the real estate market for condominiums particularly hard.
Myler said construction has not begun on that project, but he has not given up on it. "We have to wait before we go forward."
Adam Lenhard, Clearfield's community-development director, said developers are working out a feasibility study for Midtown Village at Legend Hills, but things look like they are moving forward.
"We're optimistic," he said.
[email protected]