The Salt Lake Redevelopment Agency has agreed to give a local developer a $2 million discount on downtown Block 57 land to build a 20-story office tower.
H. Roger Boyer Co. must complete the $39 million office tower at 200 S. Main, site of the old J.C. Penney building, by Nov. 1, 1992, the RDA said at its Thursday meeting.However, Boyer can withdraw from the agreement upon 30 days notice before Nov. 1 of this year.
Under the contract, the RDA will buy the land on which the Penney building sits, plus the adjacent Woolworth Building, and sell most of it back to Boyer for roughly $3.7 million, less a $2 million "write down."
Boyer will then demolish the building and begin construction on the 350,000-square-foot high-rise to be used as office and retail space. Boyer will also buy the adjacent parking structure, which he will improve and expand.
Land purchase negotiations with current landowner Morris Pacific Associates must be finalized by Nov. 1 and Boyer must complete the project with 36 months of that date.
Additionally, the RDA will retain a $2 million letter of credit from Boyer to guarantee the project will be completed under the terms of the contract. If it isn't, the $2 million write-down is forfeited.
Boyer has called the new building "the substantial anchor building" needed to get development on Block 57, plagued by empty storefronts, off the ground.