SALT LAKE CITY (KUTV) — A demolition crew began tearing down a steel structure at the site of a failed development on State Street in downtown Salt Lake City Wednesday.
The city’s Redevelopment Agency (RDA) says the demolishment at 255 South State Street is the first step in a plan to replace it with a 14-story mixed use development.
“We’re happy to turn it around and get moving on this block,” RDA communications manager Amanda Holty told 2News.
The steel structure and concrete will be torn down and recycled over the coming weeks, according to the RDA.
255 South State has been an ongoing pain for the RDA for years.
In 2012, the RDA-owned site was sold to Tannach Properties, which proposed a mixed-use development known as “Plaza at State Street.”
Construction made incremental progress until 2015 when the RDA learned that Tannach had defaulted on the loan for the project and work at the site ceased. At that point, a foundation was built with a four-story steel structure above ground.
Initially efforts were made to salvage the progress Tannach had made on the site, but a study determined the steel structure would have to be torn down and construction would need to start from scratch.
In October 2017, the RDA bought back the property at auction for $4-million, a price tag that was $2-million more than what it was sold to Tannach for in 2012.
Earlier this year, the RDA selected Illinois-based Brinshore Development to receive city incentives for a plan to build 76 units of affordable-rate and perhaps hundreds of market-rate apartments along with ground floor commercial space.
“[Brinshore] is solid and very well versed in this kind of development,” Holty said.
Brinshore was also selected as the developer for the RDA’s Overnighter Hotel development site on North Temple.
The city says the next steps for 255 South State are to complete demolition, commission an appraisal, refine development concept with Brinshore and secure project financing.
Holty said construction on the project could begin sometime next year.