Developer scraps plans for Marmalade project in Salt Lake City

SALT LAKE CITY — After five years of wrangling and revising, Rick Howa is washing his hands of plans for a mixed-use development in the budding Marmalade neighborhood.

Howa Construction failed to submit a new design plan for the 300 West property before a deadline earlier this year, and Salt Lake City Redevelopment Agency officials have denied the company's request for a one-year extension.

"I just can't have eight people trying to design my project," Howa said. "This has been the most frustrating experience I've ever had."

Howa's original plan for the property between 500 North and 600 North included nearly 90 condominium units and townhouses, 39,000 square feet of commercial space and a public pavilion.

But as credit markets tightened, Howa backed away from the development's residential component and focused instead on a grocery store.

Howa met with a three-person RDA subcommittee, but a consensus on the project's direction could not be reached.

"They couldn't decide amongst themselves, much less give me direction," Howa said. "They have no concept of what things cost and what the markets are doing, and I don't think they care. That's when I decided not to resubmit."

Howa still owns three retail buildings on the west side of the street, and he plans to lease them. Housing became a sticking point for some RDA members, he said, but "condos, you're just not going to move them."

"Certainly the market has changed," said City Councilman Stan Penfold. "There was a lot of housing that was going in there. The condos fit perfectly for that neighborhood. … The financing just wasn't coming together."

So now the RDA is starting from scratch, looking for new developers and new uses for the site.

"A door closes, and another one opens," Councilman Van Turner said during the RDA's meeting earlier this week.

City officials have turned their attention to the possibilities of turning the site into a temporary community garden and eventually building a library branch there.

The RDA could even decide to break the property up into smaller parcels before seeking bids from new developers, Penfold said. After recently receiving a wealth of proposals to redevelop a lot on Wilmington Avenue in Sugar House, Penfold said he believes the Marmalade area will generate plenty of interest.

"I think there are people who are out there that are still interested," he said.

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