"We're not opposed to these kinds of things," he said of the homeless housing project. "It's just that, come on, we just had to raise property taxes 134 percent. When is enough, enough? I don't care what it is, if it's another public purpose of any kind (coming into the city), I'm going to be opposed to it."

Gordon Walker, director of housing and community development for the state, says they are working with the city to mitigate concerns. The state is not actively looking for other properties to move the project to, he said, but wants to work with the city.

"We don't want to overburden any community," he said. "We just appreciate their willingness."

Gordon adds that the homeless veteran project is part of the state's 10-year plan to end chronic homelessness. Currently, he said, estimates put the number of homeless veterans in the state at about 1,600.

"It's a big deal," he said. "What we're really trying to do with this property is land-bank it to preserve the cost so when the developers are ready, they can work with the city and create some housing for veterans."

He adds there are no set plans, but the facility would have about 250-300 beds.

South Salt Lake officials, however, say they have their share of public projects. The Salt Lake County Jail, Oxbow Jail, Salt Lake Valley Detention Center, Valley Mental Health, Utah Transit Authority bus garages and numerous large Granite School District properties are some of the bigger public facilities in the city. City officials also point to another homeless housing project under way, the Grace Mary Manor Apartments at 57 W. Gregson Ave.

South Salt Lake continues to try to attract economic development. The city's redevelopment agency recently gave $1.5 million toward the retail and housing Market Station project and it's working with developers from China to create South Salt Lake's own Chinatown.

But Gray said with the addition of the veteran housing project, "We're really concerned. We kind of feel like we're in the critical stage now. We've got to somehow find a way to stop this problem."

Gray hopes Huntsman, who has placed economic development as a high priority on his platform, will understand and come up with his own suggestions or "just some outright help" to fix the problem.

Anderson does, too, but says the situation is even more dire.

"When we enacted that 134 percent property tax increase, it put us near the top of all property tax rates in the valley. And we are the poorest community along the Wasatch Front," Anderson said. "If we cannot find a way to get ourselves back in better economic shape, and I think the only way we can do that is with economic development, then I seriously think we need to question whether we can afford to stay a city."

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E-mail: astowell@desnews.com