City Creek Center, Numerous Other Commercial Developments Help Buffer Economic Distress

While the world economy roils in financial upheaval, Utah’s economy is being buffered to some degree by commercial construction activity. Numerous commercial developments are moving forward around the state.

Indeed, major development projects are underway in many locations, including the new Hamilton Partners skyscraper taking shape at 222 S. Main in Salt Lake City, City Creek Center in downtown Salt Lake City, Fashion Place Mall’s redevelopment in Murray, the Valley Fair Mall redevelopment in West Valley City, the Cottonwood Mall redevelopment, Station Park in Farmington, the Junction in Ogden, The District in South Jordan, Trolley Square’s redevelopment, the redevelopment of the Sugarhouse district, the Quarry Bend development in Sandy and the recent completion of the Real Salt Lake stadium, also in Sandy. These are only a handful of the numerous developments under significant construction or recent completion around the state. Nonetheless, they typify the important commercial construction activity that is helping to buoy the Utah economy.

EDCUtah will feature additional coverage of some of these commercial projects in coming issues of the Economic Review. This week, however, our attention is focused on City Creek Center, a sustainably designed, walkable urban community of residences, offices and retail stores that will rise over the next four years on approximately 20 acres across three blocks in the heart of downtown Salt Lake City.

Developed by City Creek Reserve, Inc., an affiliate of The Church of Jesus Christ of Latter-day Saints, City Creek Center includes strategic partners Taubman Centers, Inc., a leading developer and operator of innovative retail environments, Harmons Grocery Stores, a Utah company, and Cowboy Partners, a Utah-based residential developer.

Development at City Creek Center achieved a milestone recently when construction reached ground level at the corner of South Temple and West Temple. When completed, City Creek’s underground parking structure will offer four levels of parking with 5,000 stalls. Convenient entrances will be high enough to accommodate large SUVs, even with ski racks attached to their roofs.

Mark Gibbons, president of City Creek Reserve, Inc., says various elements of City Creek Center will open up incrementally between now and 2012, when construction is expected to be complete. City Creek Center will feature approximately 700 residential units to be built over the next four years. A residential sales center is expected to open soon, where urban homes will be offered across a broad range of pricing opportunities.

A new food court will open in the summer of 2009. Eating areas will be located at street level inside the new KeyBank Tower, 36 S. State Street, and under a sky-lit dining area between the KeyBank and Eagle Gate Towers.

Gibbons says the residential portion of the project will also open up incrementally. First to open will be twin condominium towers at 44 and 55 W. South Temple. Occupancy is slated for late 2009 or early 2010. A 20-story residential tower with a glass-curtain-wall exterior will follow at 100 South across from Regent Street. The tallest building in the project will be a 30-story residential tower at 99 W. South Temple, the former location of the Inn at Temple Square. Penthouses at the top of the building will feature panoramic views of the city and surrounding valley. The final residential piece, slated to open sometime in 2012, will be located at 44 W. 100 S., east of the Marriott Hotel.

City Creek Center already includes four office towers, offering approximately 1.4 million square feet of office space. Retail anchors are Nordstrom and Macy’s. Nordstrom will occupy a two-story, 124,000 square-foot store located mid-block on West Temple, while Macy's will locate on the east side of Main Street with a three-story, 150,000 square-foot store near South Temple on the north end of the block.

Approximately 600,000 additional square feet of nationally recognized merchants and restaurants will line the pedestrian walkways and link the two anchor stores. Some retail areas will be open-air while others will have a retractable roof. Gibbons says other retail tenants will be announced by Taubman Centers, Inc., a City Creek strategic partner and owner/operator of the development’s retail portion. The development will also feature a full-service Harmons Grocery Store on the south side of Social Hall Avenue, east of State Street.

As a pedestrian-friendly development, City Creek Center will welcome residents, office workers, visitors and shoppers with green space, water features and open walkways. Gibbons says fountains and streams of re-circulated water will represent the historic south fork of City Creek that ran through the downtown area when pioneering settlers first arrived in 1847. Plans call for approximately six acres of gardens and beautifully landscaped open space.

With all of the construction underway, residents have a tendency to avoid downtown. Gibbons says to “come on down.”

“We invite people downtown to see what we are doing,” he adds. “Clearly there are occasional minor interruptions, but it’s exciting to see the project move ahead.”

City Creek Center has been recognized nationally for its sustainable, green design. For example, more than 50 percent of demolition debris is being recycled. City Creek Center is a LEED for Neighborhood Development (LEED ND) pilot project. It is one of 60 pilot projects in the country selected to participate in a focus group that is helping the U.S. Green Building Council finalize its new LEED ND certification process. In addition, City Creek’s residential towers are expected to qualify for some level of LEED NC (New Construction) certification.