From Deseret News archives:

Mexico's Gigante may build in Salt Lake

A loan could bring grocery superstore to northwest sector

Published: Tuesday, March 14, 2006 11:03 p.m. MST
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Salt Lake City's west-side residents have long wanted a grocery superstore for the northwest quadrant of the neighborhood. And if the City Council approves a loan from city coffers, those residents will get their wish — possibly from Mexican retailer Gigante.

The deal is far from final, however. City Council members heard Tuesday night from Alison McFarlane, an economic development adviser to Mayor Rocky Anderson, who is recommending that the city loan a developer $2.25 million to build a shopping center on the northwest corner of Redwood Road and North Temple.

Council members want McFarlane to take the proposal to the city's business advisory board for a recommendation and come back with more numbers about the cost to the city versus the expected benefit in sales tax money and new jobs. She will present more information at the council's Thursday meeting.

Carlton Christensen, who represents the northwest neighborhoods, said seeing plans for the development would help residents and other council members feel better about loaning the city's money.

But Dave Spatafore, a lobbyist who represents an offshoot of the Legaspi Company, said his clients had no plans because they are not sure whether they will be able to build the center without public money.

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"We are prepared to go to every community council and prepared to explain to them what the development is going to look like," Spatafore said. "But today, there's no project, and unless there's a project, there's no reason to go and do the education process."

Spatafore also said rising land costs at the site have made it difficult for Legaspi to keep its profit.

As McFarlane pushed for the deal, some residents from the neighborhood condemned the proposal, saying it's unfair to offer one business money when not offering it to another.

"I cannot envision that the city would be willing to donate a little over $2 million to this kind of a project when we are facing balkanization in our area as it is," said Jena Burt, a Poplar Grove resident. "I don't know how to express this, but it seems that from our president on down, politicians seem to think they know what citizens want more than the citizens do."

The city would not be donating the money to the Legaspi Company, which has been courting Gigante for the Redwood Road site; McFarlane wants to offer a $2.25 million loan at 3 percent over 10 years. The money for the loan comes

from a revolving fund — as businesses repay loans, that cash finances new projects — and that fund is open to all Salt Lake City businesses.

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