State government leaders plan to build a $13.6 million office building in downtown Salt Lake City under terms of an agreement between the city's Redevelopment Agency and a local developer.

Crews likely will break ground in July on a new, five-story Employment Security building on Block 53, bound by State Street and Second East and Third and Fourth South, state facilities manager Neal Stowe said.Stowe said last month he was considering moving the building, considered an important catalyst for downtown growth, to the site on Redwood Road, because the RDA and Price-Prowswood Partnership couldn't agree on the amount of available parking on Block 53.

But at a Thursday RDA meeting, officials announced an agreement that no longer requires the state to restrict parking space and enables state office workers to use surface parking until a parking garage is built.

The state is already designing the new building and "we would anticipate breaking ground in July," Stowe said. Excavation would continue through the summer and actual construction would begin in the fall, he said.

Stowe said the agreement will allow workers to complete the building by June 1991, corresponding with the end of leases on several buildings where about 420 state workers are now housed.

Salt Lake Mayor Palmer DePaulis often points to the Employment Security facility as a crucial building block for bolstering development in southern downtown, which he and others envision as a government district.

So there was concern when Stowe suggested moving from the downtown location west of the state-owned Heber Wells building because the RDA was "taking way too long" to reach an agreement with Price-Prowswood.

Price wanted to increase the block's development, boosting the need for parking stalls and restricting the number available to the state.

But Price-Prowswood is no longer requiring the state to build a parking exit ramp onto Third South.