- Sugar House Chamber seeks a special assessment area to boost neighborhood's business district.
- The proposal aims to generate new funds for events, signage and holiday lighting.
- Salt Lake City Council will likely consider the proposal next year after a complex approval process.
SALT LAKE CITY — The heart of Sugar House has already grown significantly over the past few decades and is primed for more growth now that a major project to update its key roads and infrastructure is in the rearview mirror.
That's why business leaders in the area are now exploring a new way to draw people to the area. Salt Lake City received a request from the Sugar House Chamber of Commerce to form a new special assessment area surrounding its business district, which calls for a small tax-like collection from commercial properties to fund new events, signage and holiday lighting.
"We just think it will solve a whole lot of problems, including dealing with a growing number of people who are in the neighborhood, patronizing the different stores, shops, bars and restaurants, along with creating a heightened sense of vibrancy," said James Roberts, co-chairman of the Sugar House Chamber of Commerce.
Salt Lake City leaders were briefed on the proposal on Thursday, but there's a lengthy process at hand before they formally weigh in on the request next year.
Creating an economic tool
Special assessment areas are an economic tool in which a majority of property owners or a community group agree to pay a fee that goes into an account to help pay for improvements or services in their area. The fee is generally based on property values, lot sizes or a mix of other variables.
Property owners who represent at least 60% of the area's total property value must agree to join, which increases the available capital budget for the designated area.
The city isn't a stranger to them. A downtown business improvement district was established in 1991, creating and funding the Salt Lake City Downtown Alliance that still represents approximately 2,500 businesses and property owners in and around downtown today.
The Downtown Alliance founded the hugely popular Downtown Farmers Market and helped launch the Downtown Street Ambassador Program, but it also assists in holiday lighting downtown every winter and oversees or promotes many downtown events.
Sugar House business leaders first approached Salt Lake City about establishing something similar in 2022, but with a smaller footprint and budget. The idea was paused amid a multiyear project focused on rebuilding 1100 East/Highland Drive and 2100 South and replacing all the infrastructure beneath the roads.
The last of the projects wrapped up last year, which is when the chamber also updated its request.
Roberts envisions something similar to the Downtown Alliance, which could oversee a growing number of events in the area. These include the return of Sugar Fest, which was created last year as a celebration at the end of the construction projects, and potential new events, like its own farmers' market or food festivals.
"There's a lot of things in the works, and we're hoping that the (assessment area) would just be added to it," he told KSL, adding that signage and holiday lights would likely focus on promoting events or placemaking in the district.
If approved, two assessments would be collected, one for economic promotion and another for signage and holiday lighting, said Liz Ward, a project manager for the Salt Lake City Department of Economic Development.
The district would span from 700 East to 1300 East, and as far north as some sections of Ramona Avenue and as far south as I-80, with lighting and signage targeting most of the 1100 East/Highland Drive and 2100 South segments.
After various fees and contingencies, it's estimated to generate approximately $1.4 million for the area over three years through a small tax levy base rate, which would only apply to commercial buildings in the area.
The assessment would remain active through 2030, unless renewed that year. Larger apartment complexes located within the zone could qualify for the tax, but the chamber opted against that over concerns about housing prices, Ward said. She noted those could be added with any renewals, which could expand the money pool.
The next steps
Thursday's briefing was over a potential resolution that the City Council could pass as early as next month, which would declare the intent to designate the Sugar House Business District 2027 special assessment area. It's at the beginning of a complex, 48-step process to designate a district.
I see this as an investment by the landowners and neighbors in the area to keep the vitality, the economic resilience and long-term vision for the area.
–Salt Lake City Council Chairman Alejandro Puy
The City Council would have to sign off on it at the end of the process, but that's not expected to happen until next year because of all the other requirements in the process, such as receiving support from at least 60% of the property value.
Most of the area's property value is owned by a few owners, and many who have been approached by the concept have endorsed it thus far, Roberts said.
City leaders appeared willing to approve the idea if the business community ultimately signs off on it.
"I see this as an investment by the landowners and neighbors in the area to keep the vitality, the economic resilience and long-term vision for the area," said Salt Lake City Council Chairman Alejandro Puy. "It highlights the identity of the neighborhood and keeps this neighborhood as one of the top commercial neighborhoods in the city."
