Salt Lake City hopes to improve and expedite its service for building permits and business licensing by moving the department of community and economic development out of City Hall.

The City Council voted unanimously Tuesday night to approve a budget amendment that opens the door for the city to purchase the Barnes Bank building at 431 S. 300 East.

A public hearing has been scheduled for Jan. 6 on the proposed use of up to $8.2 million in sales-tax revenue bonds to purchase the building and renovate it to meet the city's needs and energy-efficiency standards.

If the city purchases the property, it would house the divisions of building services, business licensing, housing and neighborhood development, planning and zoning, and transportation.

A lack of space in the Salt Lake City-County Building makes it difficult for planners and other city personnel to get together at one time to review applications, said Mayor Ralph Becker.

"This is a way for us to get everybody together who needs to be together to enable that function to work well," Becker said.

The Barnes Bank building also is more accessible and provides better parking for customers, he said.

"(The City-County Building) is not the easiest building to get in and out of," Becker said.

The purchase would open the door for possible transit-oriented development on a portion of the property, he said.

The building is set back from 400 South by about 100 feet. City leaders envision that portion of the property being split off for development of street-level retail, topped with office or residential space.

In September, Wyndham Worldwide Corp. met with the City Council about turning the building into a downtown timeshare. Wyndham officials decided to scrap the project amid criticism from council members and the mayor's office that it did not meet the city's goals of being more transit- and pedestrian-friendly.

According to city documents, the city would purchase the Barnes Bank building for $3.5 million, with another $4.7 million needed for tenant and energy-efficiency improvements.

Councilman JT Martin expressed concern with the purchase, though he ultimately voted in favor of the budget amendment.

"It seems like we're rushing through this to meet a seller's needs," Martin said. "I see this thing as a huge money pit."

If the city goes forward with the purchase, it would decrease the money available for other capital improvement projects, such as upgrades to city parks.

"I will vote for this tonight knowing that we're trading something for it," said Jill Remington Love, City Council chairwoman.

The Barnes Bank building also was considered as a new home for police and fire administrators, the fire marshal and code-enforcement staff, police detectives and the city's homeland security unit, though it was determined to be too small, Becker said.

A new public safety building remains a top priority for the city, the mayor said.

"We're still moving ahead with that," he said.

A new public safety building was included in the $192 million bond initiative narrowly shot down by voters in 2007. About $100 million would have gone toward a building to replace the 50-year-old structure at 315 E. 200 South, which public safety officials have called dilapidated and unsafe.

---

E-mail: jpage@desnews.com