Salt Lake:Official development news thread

[arkhitektor]

Originally Posted by SLCforme

My guess is that it won't be built at all. they really expect donated land and to raise, what was it $34 million, from private donations. I doubt it. with all the scandle that is going on, I doubt any investors will have enough confidence in them to invest. Maybe I'm wrong. If it does get built it almost certainly will be in the suburbs and wont happen for years.

I don't think that it will ever find a permanent location either, unless we can get Earl Holding or Larry Miller to do like Bernie Marcus did for Atlanta and donate $250 Million to finance it.

More likely, the aquarium will stay at its current location until people are no longer willing to visit an aquarium that is housed in a derelict strip mall in Sandy. For something like this to really be succesful, it needs to be downtown with the rest of Salt Lake's tourist attractions. Unfortunately, I am now less hopeful than ever that it will actually happen.

[Scraperdude801]

Originally Posted by delts145

I very much agree with your line of thinking Makid. I was surprised to learn that the American Plaza I building was only 20% occupied. It's a very attractive building from the exterior, and was when first built a Class A structure. Its definately a smart move to bring it up to Class A code and shouldn't be much of a stretch. Once completed, it should help to generate to the over-all snowball effect.
This is an easy to bring to the table, Class A structure, and should come on line quickly. Otherwise, that Class A business will go out to the metro.

My girlfriends Dad and his company used to be in that building but left last summer. I really have to disagree on the attractiveness of that building. Dont get me wrong it isn't hideous, but for a corner lot on 200 south and west temple I've always desired something bigger and better than a 5 story rather normal brick building. Now that they are rennovating it we will be seeing that building there for quite sometime. .. Oh well.. whatever it takes to bring more people downtown. I agree with you Makid that when these companies expand they will want to be close to their other offices. It just means these towers we are all dreaming of are a little farther down the road then I had hoped.

... My personal thoughts are this: If I was a company in need of office space and a business park offered me a nice brand new building next to restaraunts , freeway access, abundance of parking, and my home(like the cottonwood heights business park does). Then downtown offered me rather similar class A office space in a rennovated 5 story building downtown that is away from my home, might be a little farther for my employees, obviously less parking, and costed the same or most likely more because of its downtown location I would probably go for the business park with all of its ammenities. ... Now if it was a nice tower downtown versus the suburban business park I would most likely try to be int he tower if at all possible because of the appeal. ... haha plus my employees would work harder so they could get an office or cubicle closer to a window. lol.

I dunno tthose are just my thoughts.

[SLC Projects]

Originally Posted by Comrade Reynolds

Yet another development that spurns downtown for the suburbs.

What a joke.

My guess, it'll be built in Sandy.

That is my guess too. I know ever since the Living Planet Aquarium left the Gateway mall last year to move to a old grocery store in sandy that they would never return to the downtown area.

This is sooooooooo lame.

[i-215]

Well, Sandy is doing it's job fulfilling that ad campaign a few years back ... "The New Downtown: Sandy"

Unfortunately they don't have the correct road and rail infrastructure to be a downtown.

[SLC Projects]

Here is a petition I can agree with...


Larry H. Miller Joins Petition Drive Against Commercial Development at Park
April 3rd, 2007 @ 12:00pm

Gene Kennedy Reporting

Larry H. Miller has joined a petition drive against commercial development at This is the Place Heritage Park.

Miller is especially opposed to a proposed office building on park land. He feels the park should be open space, not office space.

He has said in published reports, "Building an office building clearly goes away from the established mission of the park. I know [saving the park] is a big job, but they crossed a line to say, 'We are going to sell our future to save our present.' What you can't do is sell or lease the land and then 20 years later decide it didn't work."

The park is in financial trouble. Its board says it could bring in $400,000 a year if it leases 12 acres of land to the nearby blood clinic for commercial development.

There's now a petition drive against that.

Bryan Jensen of the Sunnyside East Neighborhood Association said, "We're concerned that leasing space for an office building that will raise $400,000 will not necessarily ensure the viability of the park."

Petitioners are trying to collect half a million signatures to persuade the state to take ownership of the park. They're asking for support. You can find a link in the box on this page.

The head of the park foundation, developer Ellis Ivory, doesn't think the state wants take over ownership of the park.

People have a wide variety of opinions about what the park should do.

Mindy Brown who is against the development said, "That doesn't work for me, cause Brigham Young wouldn't be there saying "this is the place" with a latte in his hand, it doesn't work."

Kim Flora who supports some development said, "I can understand the office building being built by ARUP but preserving this open space is crucial." When asked if she thought the office building would compromise the open space, she said, "No, as long as they're clear where they're building it."

Another supporter of some development, Alan Roberts, said, "For me, it's not a problem if they develop if it benefits the maintenance of the park and the upkeep and that's what it's gonna take to save it."

LeeAnn Burnett who is against development said, "I feel it's gonna commercialize a piece of Utah history and I don't know if that's a very good idea."

Ultimately, the board for the Division of State Parks and Recreation has the final say. Board members will vote April 19.



Save the park and go to save the place.net and sign the petition.
( KSL has the link )

[delts145]

Nice digs are scarce

Office space vacancy rates lowest in almost 7 years in S.L. County

By Dave Anderton
Deseret Morning News
Finding office space in Salt Lake County became much harder in the first quarter as vacancy rates dropped to their lowest levels in nearly seven years, according to a report released Tuesday by Commerce CRG.


Deseret Morning News Graphic

The office vacancy rate in Salt Lake County fell to 9.69 percent for the first three months of the year, down from 10.28 percent in the previous quarter and 10.81 percent in the first quarter of 2006.
The report noted that premium office space in downtown Salt Lake City is nearly nonexistent, as the vacancy rate for class A properties in the central business district fell to 0.70 percent in the first quarter, down from a 1.35 percent average in 2006.
"In downtown, I think a lot of the competition comes from law firms," said Chris Kirk, office specialist with Commerce CRG. "Law firms are committed to downtown, and they are being very competitive right now for premier space."
Kirk noted that Salt Lake City is on the verge of an urban renewal, as more people choose to live and work in the city, which in turn drives commercial development.
"Urban is cool," he said. "You also have this great alternative for housing now. More and more people are looking at downtown as where they want to be."
Lease rates for premium class A office space in downtown Salt Lake City averaged $22.92 to $25.01 a square foot in the first quarter.
The search for office space will be eased somewhat when Fidelity Investments vacates its 175,000 square feet of downtown office space and moves into a new, eight-story office tower encompassing 230,000 square feet at The Gateway shopping center this fall. The next class A office building to be completed in downtown also will be this fall, as a 63,000-square-foot building known as Gateway 5 is completed at The Gateway.
In addition, the 20-story Walker Tower at 175 S. Main is undergoing a $10 million renovation that will restore the building to its original high-end status. The building is expected to be finished by this summer.
While the downtown market continued to be defined by a lack of quality office space, the real action was in the southern part of the county, where suburban office parks continued to fill with tenants and new buildings were added to the skyline.
The Commerce report noted that 1.5 million square feet of new office space, most of it in the outlying suburbs, will be added to the Salt Lake County market by the end of this year. Nearly half of that space is pre-leased.
"We're seeing not only record new construction in the suburban market, but we're also seeing a continuation of record positive absorption," said Brandon Fugal, vice president at Coldwell Banker Commercial NRT. "The hottest suburbs are centered in the South Towne area and the Cottonwood submarkets."
Jeff Edwards, president and chief executive of the Economic Development Corp. of Utah, an agency contracted by the state to bring new jobs and capital to the state, said consistent job growth is fueling the demand for space.
"Most notably in the office and industrial sectors," Edwards said. "At times, demand can limit opportunities for growth, but we haven't seen that yet. We are fortunate that Salt Lake City's future is bright with the reopening of the Walker Center, plans for the City Creek development and Downtown Rising."
The Commerce report noted that the industrial vacancy rate dropped to 6.42 percent, down from 7.40 percent in the previous quarter and 7.14 percent a year earlier.
The report said the industrial market could be regarded as "unhealthy" because no new buildings have been built except in the big box market.
"Every segment had a decline, and the big box sector had the largest drop," according to the report. "This has been a normal trend for the last three years."

[SLC Projects]

Time to build some Office Highrise Towers.....................................or lowrise Office Business parks what ever comes first.

[jedikermit]

Originally Posted by SLC Projects

Time to build some Office Highrise Towers.....................................or lowrise Office Business parks what ever comes first.

And you KNOW it'll be more lowrise business parks.

[SLC Projects]

Originally Posted by jedikermit

And you KNOW it'll be more lowrise business parks.

And that is what I fear it will be.

[urbanboy]

Originally Posted by SLC Projects

Here is a petition I can agree with...


Larry H. Miller Joins Petition Drive Against Commercial Development at Park
April 3rd, 2007 @ 12:00pm

Gene Kennedy Reporting

Larry H. Miller has joined a petition drive against commercial development at This is the Place Heritage Park.

Miller is especially opposed to a proposed office building on park land. He feels the park should be open space, not office space.

He has said in published reports, "Building an office building clearly goes away from the established mission of the park. I know [saving the park] is a big job, but they crossed a line to say, 'We are going to sell our future to save our present.' What you can't do is sell or lease the land and then 20 years later decide it didn't work."

The park is in financial trouble. Its board says it could bring in $400,000 a year if it leases 12 acres of land to the nearby blood clinic for commercial development.

There's now a petition drive against that.

Bryan Jensen of the Sunnyside East Neighborhood Association said, "We're concerned that leasing space for an office building that will raise $400,000 will not necessarily ensure the viability of the park."

Petitioners are trying to collect half a million signatures to persuade the state to take ownership of the park. They're asking for support. You can find a link in the box on this page.

The head of the park foundation, developer Ellis Ivory, doesn't think the state wants take over ownership of the park.

People have a wide variety of opinions about what the park should do.

Mindy Brown who is against the development said, "That doesn't work for me, cause Brigham Young wouldn't be there saying "this is the place" with a latte in his hand, it doesn't work."

Kim Flora who supports some development said, "I can understand the office building being built by ARUP but preserving this open space is crucial." When asked if she thought the office building would compromise the open space, she said, "No, as long as they're clear where they're building it."

Another supporter of some development, Alan Roberts, said, "For me, it's not a problem if they develop if it benefits the maintenance of the park and the upkeep and that's what it's gonna take to save it."

LeeAnn Burnett who is against development said, "I feel it's gonna commercialize a piece of Utah history and I don't know if that's a very good idea."

Ultimately, the board for the Division of State Parks and Recreation has the final say. Board members will vote April 19.



Save the park and go to save the place.net and sign the petition.
( KSL has the link )

Why doesn't the L.D.S. church buy it? Although they might not have an interest in history--demolishing the Inn at Temple Square, AND proposing to demolish the First security Bank building--,they sure do have an interest in real estate!

[delts145]

This is great news! We should see a continued healthy demand for more unit's in core area's such as downtown.

Apartments hard to find

Vacancy rates plunging in the S.L.-Ogden region

By Dave Anderton
Deseret Morning News
Looking to rent an apartment unit? You may have to wait a couple of months.


Deseret Morning News Graphic

In 2006, record job growth and soaring home prices sent apartment vacancy rates plunging in the Salt Lake-Ogden region, pushing rents higher and eliminating landlord concessions, according to a new report by Hendricks & Partners.
For the three months ended Dec. 31, apartment vacancies in the Salt Lake City-Ogden region fell to 4.8 percent, down from 6.2 percent in the fourth quarter of 2005.
As of today, the apartment vacancy rate for the Salt Lake-Ogden region is closer to 3 percent, according to Kent Nelson, associate partner for Hendricks & Partners' Salt Lake office.
"I made three calls today in a survey, and the soonest that I could rent an apartment was the middle of May or the first of June," Nelson said. "The rents are going up and the leases are shortening so that they can raise rents quicker."
And it appears new apartment complexes under construction may not satisfy current demand.
The report estimated that more than 1,000 new apartment units would be available in the Salt Lake market by 2008. More than 3,000 apartment units were absorbed in 2006, the best annual total in six years and roughly double that of 2005.
But Nelson said the increase in new units coming online this year will not even come close to satisfying current demand.
Zane Morris, co-owner of Triton, a Salt Lake-based company that owns 2,300 apartment units in Utah and Idaho, said vacancy rates for his Salt Lake units are running at about 1 percent to 1.5 percent.
"It's definitely as good as it has been in a long, long time from an apartment owner's perspective," Morris said. "I wouldn't be surprised to see a 7 to 8 percent increase in rents over the year for 2007."
In 2006, the average rent for apartments in the Salt Lake-Ogden region rose 5.3 percent to $692, up from $657 in 2005.
L. Paul Smith, executive director of the Utah Apartment Association, said that even though vacancies are low and rents are rising, many choices remain for renters.
"I don't think we are in crisis mode yet," Smith said. "We need to keep in perspective that the rise in prices for single-family houses has just been tremendous. It's still cheaper to be a renter than ever before. We haven't seen 40 to 50 percent increases in rents like we've seen in prices of homes."

[delts145]

Massive IKEA Development won't be for the faint of heart

By Jenifer K. Nii
Deseret Morning News
Just to walk the aisles, briskly, without stopping to look at the goodies beginning to line the shelves, takes half an hour.


Laura Seitz, Deseret Morning News
The Draper IKEA is slowly taking shape for its May 23 opening day.

When the doors open at the Draper IKEA store on May 23, customers likely will spend much more time than that.
The new IKEA, located off I-15 and Bangerter Highway, is the popular Swedish furnishing retailer's first store in the Intermountain West and its 30th in the United States.
"The average shopping trip to IKEA is two to three hours," IKEA spokesman Joseph Roth said Wednesday during a tour of the store. "If you're browsing, but not buying, it's closer to 1.5 hours."
Here's why: The store, which was abuzz Wednesday with workers busy with everything from laying concrete to assembling display rooms, spans 310,000 square feet and will carry 10,000 items — from flooring to appliances, power strips to complete kitchens.
IKEA's ground floor features the store's marketplace, which houses the thousands of items to accessorize a living or work space, in addition to a Swedish food market and bistro, and the store's massive self-serve warehouse. The second-floor showroom will feature 50 different room settings and three complete model homes in addition to the 300-seat restaurant and children's play area.
Work on the store is proceeding as planned, IKEA Draper manager Paul Janzen said. By the end of the month, the store will have a finished, landscaped exterior. Inside, construction of the store's showroom, marketplace and offices are complete and awaiting finish work.
"We are putting the finishing touches on, construction-wise," Roth said. "From here on out, the rest is just buildup."
Inventory began arriving this week, and sales associates are already getting practice assembling the furniture in their respective sections, Janzen said.


Laura Seitz, Deseret Morning News
Colorful ice-cube trays wait to be stocked on shelves on Wednesday.

"It's a great way to build some training into the experience," Janzen said. "It's important for us to be the home furnishing experts and to show that through every single thing in the store."
The Draper IKEA will employ upwards of 350 people, and Janzen said that as of Wednesday, the hiring process had progressed ahead of schedule. About 250 people are already at work, Janzen said, and about 50 more jobs have been filled. The remaining positions offer a "mix" of opportunities, Janzen said, from cashier and food service to sales and logistics.
While the quantity of applications has reflected the market size — which is smaller than, say, Dallas — Roth said the Utah applicants have IKEA smiling.
"The quality of applicants has actually stood out here," he said. "Because of the low unemployment rate, many of the people applying already have jobs and are looking to leave those jobs to work at IKEA as opposed to people who are unemployed and looking for work."
"The applicants seem more focused about what they want," Janzen added.

[delts145]

More info. on the American Plaza I Renovation.

American Plaza
BH buys tower, plans to doll it up
'Turnaround specialist' will spend at least $1M on renovating building

By Lesley Mitchell
The Salt Lake Tribune
Article Last Updated: 04/04/2007 11:41:54 PM MDT


Privately held real estate investment company BH Properties has acquired the American Plaza I office building at 77 W. 200 South in Salt Lake City for about $6.5 million.
Puget of Texas Inc. sold the nearly 68,000-square-foot building, which BH Properties plans to upgrade. The five-story building, which is nearly 80 percent vacant due in part to its condition, and BH focuses on buying buildings that are at least 50 percent vacant.
"We're turnaround specialists and this building needs turning around," said Phil Dunn, director of real estate for BH Properties, which is based in Los Angeles. "We're going to doll it up as much as we can."
The company is planning on putting in a new lobby, new elevators and new bathrooms among other improvements to the building. Dunn said it will spend at least $1 million on the renovation of the 30-year-old building.
Ground floor restaurant tenant Olive Garden, which has a long-term lease, will remain, Dunn said.
Vacancies in Class A office buildings are very low right now, according to a report by Commerce CRG, a commercial brokerage in Salt Lake City. Less than 10 percent of downtown office space is vacant, with most of the empty space being in the less desirable and older Class B and Class C buildings. Vacancies in newer Class A buildings are nearly zero.
Some companies only want top of the line Class A space or Class B space that has been extensively renovated.
The low vacancies are spurring both redevelopment of older buildings and the construction of new ones.
The historic Walker Center at 175 S. Main St. in downtown Salt Lake City, for example, is being upgraded from Class B to Class A status to appeal to a wider range of tenants.
In terms of new construction, Boyer Co. will complete this summer a large office building in The Gateway development in downtown Salt Lake City. The building is completely committed to Fidelity, which plans to move about 1,600 people now working in leased offices at 175 E. 400 South and 201 S. Main St. to The Gateway.
Hamilton Partners, in partnership with Wasatch Property Management, is preparing to start construction on a new high-rise office building on Main and 200 South streets.
For BH Properties, the American Plaza I building is the company's 12th acquisition in Utah over the past four years. The most recent purchase was a Class A-status 118,000-square-foot corporate office building in Provo valued at $12.5 million. Commercial brokerage NAI Utah will handle the marketing of the American Plaza I building.
l

[delts145]

Western Salt Lake Metro

Stansbury edging out Grantsville in race to get big fast

Tooele Transcript Bulletin
Written by Mark Watson


photo: Residential construction and home prices continue to climb in Stansbury Park, most new homes are priced near $200,000 /photo by Troy Boman

Stansbury Park and Grantsville seem to be in a race to see which community will hit the 10,000 population mark the quickest. According to census reports in 2004, both communities hovered around 7,000 in population. Three years later, however, it appears that Stansbury Park is at 8,400 and Grantsville at about 8,000, according to estimates from Tooele County and Grantsville City.

"I think Stansbury Park is growing a bit faster than Grantsville," said Barry Formo, chief building inspector for Tooele County.

According to local real estate agents, one engine driving that growth is people fleeing the congestion of Salt Lake Valley for rural suburbia in Tooele Valley. Most of those people continue to work in Salt Lake City even after they make the move.

"There are a lot of professional people who have moved here and still work in Salt Lake," said Steve Goodsell of ReMax Lakeside Realty.

Richmond American Homes is developing a massive community west of Benson Grist Mill where they will end up building 140 single-family houses selling for $198,000 and up.

"We've sold 15 of the first phase. A lot of these buyers work in downtown Salt Lake," said K.C. Gee, representing Richmond American Homes at the development.

The first phase of the project will includes 40 lots and two subsequent phases will add another 100 lots.

On the east side of Benson Grist Mill is an Ivory Homes development. Realtors say that project will include 150 townhomes and 150 single-family houses.

Stansbury Park is spreading out in every direction except east of SR-36 where large gravel pits are located. Several homes are being built in and around the new Stansbury Park High School, which is currently under construction south of the main population base in Stansbury Park on Bates Canyon Road. The new high school seems to have spawned development on the south side of the community.

Gee said his company has built hundreds of homes the past few years in Stansbury Park, as has Ivory Homes.

Houses in Grantsville are also spreading out in every direction, especially south and west. A massive residential development is planned for the west side of Grantsville which would include 699 lots in the first phase with plans for another 1,400 houses at some point in the future.

The market for building lots is rising fast throughout the valley and property owners are now seeking more cash for their land. According to prices listed on the Wasatch Front Multiple Listing Service, lot prices in Tooele Valley have nearly doubled in only two years.

As part of development agreements, many of these subdivisions include open space and parks. A new 28-acre park will be nestled among the subdivisions sprouting up west of SR-138 and the Benson Grist Mill. The park would double Stansbury Park's green space over the next five years.

"Stansbury Park is certainly an active area of development," said Tooele County planner Nicole Cline. "There are some good things and some challenges that come from growth."

Cline said there is actually no physical boundary for Stansbury Park. Decisions concerning residential growth in the area come through the Tooele County Planning Commission.

"The planning commission is a recommending and permitting body for the Stansbury Park area," she said. "A Stansbury Park Service District and an Improvement District also tackle issues confronting the unincorporated area."

A nascent township movement in Stansbury Park appears to have stalled recently.

"There are a number of people who have actually spoken out in favor of incorporation for the Stansbury area," Cline said.

She mentioned that the increase in population also create a need for more commercial development in the area. "Retail would provide a tax base which could help lead to incorporation," she said.

The biggest residential building trend in Tooele City is pushing more building to the west and north of the city. Tooele City land technician indicated there are plans for massive development in the Overlake area on the northwest, but said that it could take several years for that area to develop. He said little is happening on the south end of Tooele.

[wrendog]

so, Boise to get another tower... What the hell is wrong with SLC? if boyzee can get all these towers, SLC certainly should too..

[delts145]

Wren, I'm going to smack you up-side the head. How many billions are being pored into Downtown Salt Lake over the next four years? And we're not talking pipe-dreams or proposals,but actual construction. And at least several of these projects will be towers. However, that said bud I'm as anxious as you to hear of that new tallest convention hotel etc. C'mon already convention hotel, world trade center......................

[Comrade]

The problem with your point delts is that the only towers we'll see are because of the LDS Church. If it weren't for that development, we'd have one proposed downtown tower right now, one that's 22 stories tall.

Wow!

All these other cities are getting proposed OFFICE towers and then there is Salt Lake, with only one proposed office tower and a bunch of "what ifs..." and even then, the LDS Church will only build one major tower and then, if the market dictates, build the others. In the end, most are pipe-dreams too if you think about it.

Wake me up when we actually have another company proposing a tower downtown...and not something that could happen in the next few years (like the WTC).

[delts145]

I hear ya Comrade, and I don't disagree.I was just kidding Wren. However, the multi-billion total figure is correct, and I do think that the other city creek towers and HP even stand a much better chance than some of these others I'm reading about in the other threads.
Of course,as we all have been commenting the building boom of mid-rises in our urban metro will probably continue to drain high-rise projects from the downtown core.

[SLC Projects]

I agree guys that Salt Lake is long past due for a new highrise tower ( Office or Condos ) But we got projects in the works....

City Creek Center Project.
1. City Creek Condo Tower 1.................26 stories
2. City Creek Condo Tower 2................32 stories ( that's one of those IFs )
3 City Creek Condo Tower 3................10 stories
4. City Creek Condo Tower 4/5..............Both 8 stories


social Hall Block
1. Cowboy Partner Tower 1 ( Mix use ) on corner of State and 100 South......around 30+ stories
2. Cowboy Partner Tower 2 on corner of 200 East and 100 South..............around 17 stories.
3. Apartments on top of Harman's on 100 South between both those other towers.


State Street
1. WTCU Tower North end.............15 stories
2. WTCU Tower South end.............around 25 stories
3. Wasatch Partner Tower(s) on state and 400 south......Both around 20-30 stories.


Main Street
1. 222 South Main..............22 stories now? Who knows they keep changing it.
2. Courthouse Tower..........10 stories



So as you can see Salt Lake does have a few proposed Towers. But it would be nice to see some of these towers breakground. LOL

Sure Salt Lake needs alot more Towers office and housing, but just be glad it's not 2002 or 2003 when Salt Lake had NOTHING going for it. Remember those days?

[wrendog]

unfortunately, most of those buildings you listed are pipe dreams and haven't even been truly proposed yet! the only one that is certain is tower one at ccc