CW Urban plans to purchase a property in the heart of downtown and build a new tower of owner-occupied condominiums.
The project is the first downtown project to be put up for sale in years. This would happen if the city agrees to sell its shares to the developer and implements restrictions that ensure the use of the ground floor space and ownership in the building.
CW Urban wanted to buy a site from development company Dakota Pacific, which had pieced together land near 200 S. Regent St. with vague plans to build a future tower. Instead, the company has decided to sell its land to Centerville-based CW Urban.
The Salt Lake City Redevelopment Agency is also currently deciding whether to sell its 0.13 acres to CW Urban for $1.13 million. This price represents market value and is based on a current appraisal. The RDA properties are located in the middle of the Dakota Pacific properties, making it critical for any developer seeking to take advantage of the D-1 zoning to work with the city.
A new memo from the RDA outlines what the city would receive in exchange for the potential sale and development.
In exchange for the sale of its property, CW Urban would build a 16- to 17-story residential tower with ground-floor retail space.
The sale of the city-owned property would be subject to a use restriction agreement. Under the agreement, CW Urban would agree to:
- The majority of the building must consist permanently of individual condominiums and no individual may own more than five units at any given time.
- At least 50 percent of the condominiums must be occupied by the owner and may not be used for short-term rentals.
- CW Urban would be willing to build higher than 100 feet, which is the minimum height within the D-1 zone, and cannot apply for an exemption.
- None of the new tower’s background activities – such as garbage collection – could be directed to 200 South or Regent Street.
- The ground floor spaces could include a lobby, but must also include tax-generating retail space or other uses that serve the neighborhood.
CW Urban, an advertiser for Building Salt Lake, could ask the city to remove the requirement that the units be for sale and that at least 50 percent of the units be owner-occupied if it pays the city $3 million. That spare money, in that case, would be used for other RDA affordable housing projects.
In a sign that the city has changed its approach since the failed sale of the Utah Theater, it announced that it would not finalize the agreement with CW Urban until the developer secured financing.
The RDA agreed to sell the Utah Theater to the Hines development group for $0. In return, Hines was required to provide public amenities, including a small number of middle-income housing units and a privately owned, publicly accessible green space above a three-story parking garage.
Hines was blocked by legal objections to the agreement and ultimately missed the opportunity for easy financing and low interest rates. The historic theater was demolished, but the project remains stalled and shows little progress. (The city offered to give the county the site to relocate Abravanel Hall and make room for a new sports and entertainment district.)
CW Urban is expected to complete the purchase of the Dakota Pacific properties next month. The option to purchase the RDA property expires on September 10, 2025, giving the company just over a year to obtain financing and permits for the project.
The RDA board (city council) will be informed about the possible new development at its meeting on Tuesday.
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