What will $3 Billion do to SLC?
December 29, 2009
The City Creek Center is the biggest thing to happen in Salt Lake ever, but many questions are still unanswered
by Jacob Hodgen
Whether or not someone on the BYU soccer team is getting her clock cleaned on national TV. . .
Whether on not David Archuleta is indeed the most adorable thing since the invention of kittens. . .
Whether or not local ecclesiastic leaders have decided to attack or defend gay rights for the day. . .
. . .one Utah issue looms larger than them all.
And there are $3 billion dollars that agree.
Salt Lake City is abuzz with wonder, curiosity, and, in some cases, resentment at the emerging City Creek Center. Love it or hate it, construction on the colossal project is in full swing, and in few short years, the public face of downtown Salt Lake City will be forever changed.
Funded by the newly renamed Property Reserve, Inc.--a corporate arm of the LDS Church--the multi-billion dollar City Creek Center is a 20 acre renovation at the heart of the city that will include a shopping center with foliage-lined walkways, a 35 story luxury condominium tower, and high end office space. The project is located on the same site as the aged Crossroads Plaza Mall, the previous cityscaping project of the Zions Securities Corporation.
However, what many people are still wondering is not merely how the project will change how people live and shop in Salt Lake City, but who will live and shop there. Will the ultra high end condos drive the non-believers from the heart of city and usher in a new dawn for the nouveau righteous elite?
Here at Utah Stories, we wanted to compile a list of some of the tough questions Utahns have been asking about the City Creek Center that Property Reserve has not yet sought fit to address. And after they declined our interview, we decided to take our questions to another local expert.
Babs De Lay is the founder and principal broker of Urban Utah Homes and Estates, and she has been working in real estate in Salt Lake City for nearly 25 years. A renaissance woman, a truncated list of her accomplishments includes four degrees, including a Ph.D in Philosophy of Religion, radio host, membership on the Advisory Board of UCASA, and mother of two.
She was kind enough to weigh in on some of the toughest questions currently going unanswered.
The following questions were drawn from local blogs, websites, and news outlets by Utah residents of various backgrounds and beliefs.
Utah Stories: There has been some concern voiced that the price tag and nature of the complex will alter the current demographic so that the downtown area will see a major influx of LDS residents, while "non-members" will have little choice but to flee. Do you think there is any truth to this? Conversely, considering Utah history, should we be more surprised this has not happened sooner?
De Lay: I don't believe the Church is marketing to LDS residents but to people who can afford to live at City Creek--hopefully business people who like to ski and want high end accommodations. Families with 8 kids won't be able to live there--the space is wrong. Downtown condos are not generally a demographic for families, but for singles and empty nesters.
Utah Stories: A few months ago, KSL reported that the LDS church owned Beneficial Life Insurance company had lost $600 million and was going to be shut down. With such a recent a track record of financial failure, why should Utahns believe the LDS Church can succeed with this plan?
De Lay: I believe that the Church is in very good financial condition. That may represent one loss, but it doesn't reflect all of their prophets (pun intended).
Utah Stories: The latest cost analysis for the project is $3 billion, that's the equivalent of more than $300 per member of the LDS Church. Tell me about the ethics of this kind of commerical venture.
De Lay: The point of the project is to make money, so my guess of $300 per member will be a profit later on of $30,000+ per member from the income of rents on the commercial side of the project, and through sales of the units. This business arm of the Church is not interested in losing money.
Utah Stories: The Utah government has been notoriously stubborn with liquor licenses in the past, but some people are already speculating that the Church will ensure a Marriott-esque model of business and embrace alcohol and Sunday sales, as it is a highly profitable method of hospitality. What are your thoughts?
De Lay: I believe they have a plan to get around liquor, like Larry Miller did by owning the Jazz/selling beer in the Delta Center, or The Gateway open on Sundays with all restaurants selling liquor (also owned by a business made up of LDS members).
Utah Stories: How does this project change the face of Salt Lake from the perspective of real estate, and how specifically does it affect you?
De Lay: It will hopefully increase demand for other downtown condos, because A) there will be a huge amount of employees working at the Mall who will want to live close to work and B) those units will draw more interest to downtown living and people will want to shop for all the available housing options available to them.
Utah Stories: What do you feel are some of the most significant positive aspects of the project?
De Lay: It is the largest green-certified project ever to be built in Utah.
Utah Stories: Any thing else you would like to say about the City Creek Center?
De Lay: Get R Done!
Thanks to Babs De Lay for her willingness to tackle questions no one else dared!
Official Website for the City Creek Center
http://www.downtownrising.com/city_creek/
Have questions about the City Creek Center? Want to offer you own response to one of these? Join in the dialogue via the forum below.
