Filler up: ‘Sugar Hole’ development project gets renewed energy

A project to develop the empty lot on Highland Drive and 2100 South received support from the Salt Lake City Council, Dec. 13.

The council, acting as the Salt Lake City Redevelopment Agency Board, voted 5-1 to loan $5 million to pay for underground parking at the site. The approval was given after Wells Fargo issued a letter of intent to provide $36 million for construction of a $50 million residential and retail project on the property.

Salt Lake City Councilmember Charlie Luke, representative for the Sugar House area, said he was pleased that the local property would be developed.

Although Luke officially began his term as a council member in January and did not cast a vote to approve the loan, he said he would be taking a special interest in the local project.

“The project looks good. I think it’s going to be of great benefit to residents,” he said.

The property, commonly referred to as the “Sugar Hole” by local residents, was the site of a strip of local businesses in the heart of the Sugar House commercial district until four years ago.

At that time, owner Craig Mecham had the existing buildings demolished to make way for the construction of new office buildings and condominiums.

But the project failed to take shape due to lack of funding and the vacant property turned into a muddy hole with a fence around it.

According to current site plans, Mecham is planning development on the property that could include more than 200 apartments set atop 44,000 square feet of restaurant and retail space with a complex for underground parking.

To make use of the $5 million loan from Salt Lake City, developers will be required to pay fees to help fund the Sugar House streetcar project.

In addition, Mecham agreed to make the project energy-efficient and to provide a public easement to the city.

Although early in the planning process, the project could also eliminate the additional right-side traffic lane along eastbound 2100 South between Monument Plaza and the property.

If the traffic lane were closed a pedestrian plaza could be constructed in its place.

City officials must approve all final design plans for the project before construction may begin, but current timelines indicate that construction could begin as early as fall 2012.

Luke said that the original demolition permits should have been withheld until the project was “shovel-ready” to avoid the long-term vacancy at the site.

“It’s something I’m going to be watching closely,” Luke said.