Nearly two years after the corner shops were torn down, there are no signs of construction on the vacant lot in the heart of Sugar House.

The developer, Mecham Management, has seen its plan to turn the kitschy shops into a mix of high-level offices and apartments stalled by the recent credit crunch.

Now, some Salt Lake leaders are working to add teeth to the city's demolition ordinance in hopes of avoiding similar problems in the future.

The proposal, nicknamed the "Sugar Hole ordinance" by some, would allow demolition only after a building permit has been obtained — or if a building is determined to be a safety risk.

"This will not prevent demolitions," said Councilman Soren Simonsen, who represents the Sugar House area. "It changes the timing for when a demolition might occur."

The discussion surrounding the ordinance is in its early stages, and plenty of policy questions remain, officials said.

Community and Economic Development Director Frank Gray said the draft proposal is "more clear and more deliberate" than the current law but said a developer could still conceivably obtain a permit, demolish a building and change building plans, leaving the neighborhood and city with an empty lot.

Council members expressed concerns about how demolition and landscaping requirements would apply differently to residential and commercial properties. Some worried making the demolition process more difficult would lead to boarding up buildings or letting them fall into disrepair.

"I'm concerned we could create a secondary market for arsonists," Council Chairman Carlton Christensen said, "that it becomes so onerous … we cause people to do something irrational."

Councilman JT Martin said an increased number of teardowns, specifically in the historic Yalecrest neighborhood, urgently require attention for lawmakers.

"We've got to get on this," he said. "The fabric of the community is being destroyed."

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