For decades, the City Redevelopment Authority has been assembling properties at the northeast corner of 300 West and 800 South, finally assembling nearly two acres for an area it hopes will become a signature mixed-use project for the Central 9th ​​and Granary neighborhoods.

The development site in the FB-UN-2 zone at 765 South 300 West also includes Montrose Avenue, an east-west street in the neighborhood that was severed prior to redevelopment by the increasing proliferation of light industry in the area.

In a briefing to the RDA board this week, staff outlined the general terms of the city’s sale of the property. The sale will be conducted through an RFP that will be released soon, likely in the third quarter of this year.

One of the non-negotiable issues is the reconnection of Montrose Avenue as a publicly accessible sidewalk in the middle of the block.

Let’s take a look at what the city has to offer and what requirements it is likely to place on successful developer proposals.

The location

Just northeast of the city’s 9-acre Fleet Block development, the 1.89-acre RDA site is currently occupied by warehouse tenants on short-term leases, according to staff.

It is just steps from local businesses on 800 South and 300 West, including the recently expanded Fisher Brewing.

However, the RDA lacks control over what is arguably the most important area – the corner.

The auto repair shop at 775 South 300 West, which sits on the 0.29-acre corner lot, has been owned by disgraced local developer TAG SLC since 2021. The landmarked Fifth Ward Chapel, which TAG ordered demolished on Easter Sunday of this year, is just up the street.

The auto repair shop on the corner of TAG SLC is valued by Salt Lake County at $919,000.

According to the Salt Lake County Recorder, it was initially sold to developers in 2017 and emerged from a family trust.

There is no reference to the privately owned corner property in the RDA staff report.

Jordan Atkin of TAG SLC told us earlier this year that he would be exiting residential property development to focus on other niches in the real estate market.

If that’s the case, he’s less likely to make a proposal to the city than to offer the property to the winning bidder. This is another complication that any interested development team must deal with when signing a contract with the RDA.

Nevertheless, the RDA parcels have a strategic significance: they serve less as development catalysts (neither neighborhood needs a development boost) and more as a way to provide an essential urban element in Montrose’s mid-block.

What other aspects is the city likely to consider in a successful development proposal?

What does the RDA require?

RDA staff provided the Board with a brief description of the plan elements, including:

• a mixed-use, mixed-income residential complex
• Excellent design in site plan and building design to promote active street life, pedestrian connections and creative integration of the project into the neighborhood
• a wealth building component for low- to moderate-income residents living in the new development. The wealth building component may include models such as home ownership, supplemental income opportunities, scholarships for renters, cooperative housing, etc.

The 2020 RFP also included the following project objectives, which are likely to be reflected in the new RFP:

• Mandatory Montrose Ave Connection: “Street improvement, maintenance and public accessibility,” including the creation of a short NS connection listed in the Mid-Block section of the Downtown Master Plan.
• Compliance with the City’s design guidelines for West Temple Gateway and the Granary Districts
• Affordability: At least 20% of units must be affordable to individuals earning 60% of AMI or less.
• Sustainability: energy efficient design or programs
• A significant art installation

As part of the construction and operations pro formas to be submitted by interested developers, the 2020 RFP stated that discounted land rates would be considered. This time, agency staff told the board that they were also interested in proposals for a long-term land lease, which is a trend in recent RDA contracts with developers.

Why wasn’t a developer hired straight away?

Staff found that the section of Montrose Avenue that cuts through the RDA’s property is privately owned and ownership has not been transferred to the RDA or previous owners, “so the right of way may have remained with the original owners and not been transferred to subsequent property owners.”

But this time, uncertainty won’t stop the selection process, staff say. The RDA will “work out the issues with the road until a developer is selected and contracts signed” by seeking quiet title to the road during the RFP process.

Hopefully the affordability and mixed-use requirements, multiple design reviews, and now the requirement to offer housing units for sale to income-eligible individuals will not deter applicants.

Not to mention the almost necessary takeover of the corner property from TAG SLC.

Timeline

The RDA hopes to issue an updated RFP by the end of the third quarter of 2024. Proposals are expected to be submitted by the end of the year.

The plan calls for a developer to be selected by the end of March 2025 and for completion and groundbreaking to take place in the first quarter of 2026.

Email Luke Garrott

Want to see where developers are planning and building in Salt Lake, or just want to support a local news source on what’s happening in your neighborhood? Subscribe to Building Salt Lake.