Ogden may seek federal bond funds to spur downtown hotel, parking structure

OGDEN — City officials may turn to federal stimulus bond funds as they work on some of the final facets of Ogden's downtown revitalization gem, The Junction.

The Ogden Redevelopment Agency may apply for $12 million in tax-exempt bonds, part of the American Recovery and Reinvestment Act, for a proposed hotel and a 250-stall public parking structure under the hotel.

The $3 million for the parking structure and $9 million toward the hotel's construction would come from bond funds previously allocated to other entities that will not be used. The parking structure bonds would be repaid by the city through a special assessment, while the developer would repay the hotel bonds.

Terrance Bride, senior project coordinator for the city, is seeking a letter from the RDA board chairman supporting the city's reallocation application, which will be considered by the state Housing and Community Development Division. The board discussed the matter at a Tuesday work session and may decide about the letter at a meeting next week.

"We're optimistic that the state's going to support us," Bride told the board. "And they're going to support us because there is such a dramatic need for Ogden's core central business district, and because Ogden is deserving of what we're asking for.

"Ogden has made tremendous commitment to The Junction and its central business district, and why would they not want to support a community and reward a community that's made a decade of commitment to that kind of approach? So we're confident that they will support us."

City officials believe a hotel along Washington Boulevard, east of the Salomon Center, would add at least 40 direct and 36 indirect jobs to the economy. The parking structure would result in 500 direct and 770 indirect jobs.

Sequoia Development Inc. of Sandy has proposed a national-brand, high-end, extended-stay hotel at The Junction, Bride said.

"It will be one of the things that gives us the critical mass that keeps our core central business district growing, not just for a year or two and not just (during) this recession. … It'll keep us going for decades beyond this bump in the road that we're at right now," he said.

As for parking, The Junction is "maxed out," Bride said. In addition to the underground structure at the hotel that would help serve The Junction's office and retail needs, the southwest corner of Grant Avenue and 22nd Street, currently empty, eventually could house operations with about 500 jobs and perhaps 150 parking stalls, he said.

During a City Council work session, Mayor Matthew Godfrey said several retailers are considering The Junction for stores. One national-brand company is considering an outlet store, and an outdoor retailer wants an outlet that would occupy most of the remaining space. Other smaller retailers are interested but want to see the anchor-type stores come in first, Godfrey said.

e-mail: bwallace@desnews.com