City eases up on assessment for North Temple property owners

SALT LAKE CITY — The cost of transforming North Temple into a grand entrance to the capital city will have to fall, in part, on property owners on that street.

But after hearing complaints that a proposed taxing district might break the bank for businesses along the strip, city officials are easing up a bit.

Mayor Ralph Becker's administration is looking to reduce the burden that will be placed on property owners, as city officials try to pay for the lights, trees and art installations that will run along the future TRAX line to the airport.

A proposed one-time fee of $185 for lighting has been reduced to $140. Meanwhile, an annual maintenance fee of $17.50 per foot of frontage over the next 30 years has been reduced to about $3 per foot.

"It's a slightly scaled-back approach," said John Naser, the project manager for the city's engineering division. "We've been able to design the street-lighting system so the cost has come down."

To cut maintenance costs, snow removal and sidewalk repair have been removed from the services the city would provide, according to city documents.

That's fine with Pete Funaro, who owns Diamond Lil's Steakhouse at 1528 W. North Temple.

"There's going to be an assessment," he said. "That's common. Some of the money has to be compensated by the property owners. This one, at least, they've come down quite a bit. It's something that's a lot more doable.

"The North Temple grand boulevard, when it gets done, it's going to be a beautiful thing. It will improve the district, bring people here, and it will help everybody out."

Funaro was one of a handful of property owners who expressed concerns about the city's original plan for the special assessment area.

During a City Council meeting earlier this year, property owners protested the city's taxing plan, calling it unfair and poorly timed.

"This is really not the time for us," said Gary Sandberg, who owns land across from the Utah State Fairpark. "We are struggling right now to take care of our tax obligations."

The special assessment area would run along North Temple from 400 West to 2400 West. With property from 1260 West to 1400 West, Menlove Properties would have been forced to pony up more than $300,000 over the next 10 years, Preston Menlove said in February.

"This will not be a walkable street if you tax all these properties out of business," Menlove told the Salt Lake City Council on Tuesday.

The state of Utah is the largest property holder on North Temple, with 3,192 feet of frontage. While the state would not be responsible for paying the annual maintenance costs, it would pay the one-time lighting fees.

Rocky Mountain Power, with 2,743 feet of frontage, would participate in the special assessment area just like other property owners.

Landowners will have more chances to speak their minds, with one public hearing scheduled for Tuesday and another slated for early May.

If the owners of more than 50 percent of North Temple's frontage protest the taxing district, it will fail.

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