Developer asks city to get $9.5M in bonds

SOUTH SALT LAKE — A developer unable to find financing for the $500 million Market Station project has asked the South Salt Lake City Council to take out $9.5 million in tax-exempt bonds.

The money would be used to purchase nine lots in the next five years for the project slated to include 27-story condominiums, offices and retail space. The 18-acre development would be built on either side of a planned streetcar project that would connect the suburban city with Salt Lake City's Sugar House neighborhood to the east.

Z Partner's Market Station is planned for the 2100 South area between Main and State streets.

Developer Steve Aste's presentation to the city Wednesday was a tour de force of local business leaders, government bureaucrats and attorneys, many of whom spoke publicly in support of the project.

"I would support the bonding and believe the city should support it as well," said Jim Hinckley, owner of a major car dealership in the city. "I'm just as sure as I'm standing here that this project will increase our revenue 20 (percent) or 25 percent a year."

Aste wants to bring major film studios to his project, he told the City Council. The developer is already working with the Utah Film commission, a representative from that office told the council.

According to Aste's projections, Market Station will increase the value of the property from $12.2 million to $326.6 million.

South Salt Lake officials are already planning on about $25 million in tax-increment funding for the project.

Aste wants the city to hire a third party to review his bond proposal. The council could vote on the issue as early as Sept. 23.

South Salt Lake Mayor Bob Gray said at the end of Wednesday's meeting that his office was already behind Aste.

"We're exploring just about anything we can do to come up with some kind of financing," Gray said.

e-mail: rpalmer@desnews.com