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April 14, 2008
$75 million mixed-use project planned in downtown Salt Lake
By Barbara Rattle
The Enterprise
A South Dakota hotel developer plans to break ground this summer on an approximately $75 million mixed-use project on roughly five acres between 500 and 600 South immediately east of 200 West in Salt Lake City.
Dubbed Salt City Plaza, the project will be anchored by four branded hotel properties totaling 542 rooms and suites in addition to spa facilities, restaurants, approximately 30,000 square feet of rentable commercial space and 90,000 square feet of Class A office space.
The developer of Salt City Plaza, which still requires entitlements from the city, is Salt City Plaza LLC, based in Aberdeen, S.D. Salt City Plaza is a sister company to Utah Hospitality LLC, which has constructed several hotels in the state and recently broke ground for a 94-unit Holiday Inn Express Hotel & Suites and a 97-unit Staybridge Suites complex immediately north of the E Center in West Valley City that should open in the first quarter of 2009 and include an 8,000 square foot family-style indoor water park and extensive meeting space.
"This is a very dynamic project in a very dynamic Salt Lake City downtown marketplace," said Jeff Stockert, president and CEO of Utah Hospitality LLC and Salt City Plaza LLC. "We've pursued this project for more than two years. Intercontinental Hotels Group, better known perhaps as the parent company of the Holiday Inn family of brands, has worked closely with us to help bring this deal together. We are in the right place at the right time with what we believe to be the right mix of hotel and office space."
Stockert said Phase One of Salt City Plaza will entail the demolition of a vacant convenience store on the corner of 200 West and 500 South to make way for stand-alone sites for a restaurant and bank. Concurrently, the two northernmost buildings of the existing Royal Garden Inn will be renovated, including a new lobby addition, providing a platform for a new 92-room limited service Best Western hotel. The remainder of the Royal Garden Inn, which presently contains 311 units, will be razed to make way for other development.
Phase Two will consist of the construction of three new branded hotels. The first two will be incorporated into an 11-story structure, the first six floors of which will be home to a 180-unit full-service Holiday Inn Hotel & Suites. Floors seven through 11 will become a 150-unit Hotel Indigo, billed as the industry's first "branded boutique" hotel. A terrace and lounge for Hotel Indigo guests will be located on the rooftop of an adjacent office building planned at the site.
Also in Phase Two, a seven-story, 120-unit extended stay Staybridge Suites hotel will be constructed. All three hotels will be served by a pool, day spa and fitness center facility that will also be an added amenity to the project's office tenants, Stockert said.
Attached and adjacent to the Phase Two hotel will be a six-story retail/office complex with 600 South frontage. The ground floor will include a 4,000 square foot restaurant; the remaining 7,000 square feet will be comprised of smaller retail spaces. Floors two through six will be Class A office space.
The third and final phase of Salt City Plaza will consist of a second retail and office structure, five stories in height with ground-level retail space, 7,000 square feet of meeting space on the second floor and 30,000 square feet of Class A office space above. The building, along with the other Phase Two structures, will be served by a sub-grade parking structure accessed via multiple elevators and stairways.
Salt City Plaza Central Park will be the final component of the project, consisting of articulated, decorative stone pathways, shade trees and benches.
Salt City Plaza LLC acquired the site in February. Utah Hospitality LLC will develop and manage the project for Salt City Plaza LLC. Phase One construction is expected to begin this summer. Phase Two will begin immediately thereafter and is expected to be complete in the third quarter of 2010, Stockert said.
Architect and general contractor agreements are currently being negotiated, he said.
Utah Hospitality recently completed construction of a 92-unit Holiday Inn Express Hotel & Suites just east of the Salt Lake City International Airport, a 111-unit Holiday Inn Hotel & Suites and Conference Center in the Salt Lake International Center and a 64-unit Holiday Inn Express Hotel & Suites in Tooele.
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