Gateway is poised for next phase

The Gateway is 95 percent leased, reports strong year-over-year growth and is poised to begin "Phase Two" of its development, The Boyer Co. reported this week.

"We knew this project was going to take some time to mature, for people to understand where to park, what restaurants and stores are here," said Gateway managing partner, Jake Boyer. "The momentum we're experiencing is exciting. None of the months have been down over the previous year."

Same-store sales increased 23 percent in June 2004 compared to the same month of 2003, Boyer said. Going back as far as April 2003, The Gateway has not reported negative year-over, same-store sales — and the mall reported double-digit year-over, same-store sales growth in all but three months since April 2003.

"We have had increases every single month as high as 300 percent," said Dale Grant, owner of upscale men's retailer D. Grant Ltd. "We are thrilled with our new location due to the volume of shopper traffic from both locals and from guests at the hotels."

Boyer declined to discuss specific sales numbers, but he did say The Gateway is operating in the black.

"It has taken a lot of work, but yes, I think we are at that point now," he said. "I don't want anyone thinking we're rolling in the dough. It is still a fragile project."

However, Boyer said, the mixed-use development is on schedule to begin the second phase of its growth. Phase Two, which will include additional retail west of Olympic Legacy Plaza, is scheduled to begin construction by January 2005, with completion of the first buildings by summer. The remainder, which is likely to include space for a Target store, is scheduled to be completed in the fall. Negotiations with Target Corp. are ongoing, Boyer said.

Jim Wood, director of the University of Utah's Bureau of Economic and Business Research, wrote in a December 2003 report that retail sales in Salt Lake City's central business district increased by 19 percent in 2002-'03. Wood attributed much of that growth to The Gateway.

"In December 2003, we were still working with 2002 numbers, which included those two weeks of Olympic activity," Wood said. "The Olympics added a bit of a bump. But most of that increase, I think, given that it occurred in the ZIP code to the west, is at The Gateway."

Where it isn't is on Main Street, Wood said.