Salt Lake City agrees to purchase shuttered Utah Theater

SALT LAKE CITY — Members of Salt Lake City's Redevelopment Agency squeezed in some last-minute shopping Wednesday, agreeing to purchase the shuttered Utah Theater for $5.5 million.

"We have an active and successful cultural district already," said D.J. Baxter, the agency's executive director. "We want to augment that. I think this purchase represents a tangible step toward shoring up our cultural district."

Officials expect to finalize the deal during the first week of January, Baxter said.

An ornate vaudeville theater when it was built in 1918, the Utah Theater has been out of operation since the 1980s and needs major renovations — to the tune of $25 million by the most recent estimates — before it could again be operational.

Funding for renovations could come from a mix of organizations, including Salt Lake County and the Utah Legislature. In past years, Baxter said, legislators have toured the Utah Theater and expressed interest in its restoration.

"It will take some time for sure," he acknowledged.

The SLC Film Center is among a handful of parties said to be interested in operating the theater.

Downtown Alliance executive director Jason Mathis lauded the purchase.

"It is clearly a project that is going to benefit Main Street and the larger downtown area," Mathis said. "Having a prominent anchor in this space can help to bring people out of City Creek and down Main. It helps the rest of the street thrive."

Salt Lake City leaders still have plans to build a 2,500-seat theater across the street from the Utah Theater, and Baxter said owning the old theater could help "influence" development across the street.

"The resurgence of Main Street is happening before our eyes," RDA Chairman Eric Jergensen said in a statement Wednesday, pointing to investments from the city, county and the LDS Church's City Creek Center development. "Together, we are focused on and committed to a renaissance of downtown Salt Lake City."

The RDA set aside $7 million earlier this year to purchase the theater but saw the price drop by $1.5 million as negotiations with developer Rick Howa carried on.

The theater property, 144 and 156 S. Main, includes a number of retail spaces, which will be the RDA's focus in the short term, Baxter said.

e-mail: afalk@desnews.com