Holladay Village plan wins approval
48-acre center would cater to local businesses
"It was a very, very happy day for the city," Webb said. "It's really a statement about building a community. It really is about saving the relationships of small merchants and the city center that has been such a part of Holladay."
The heart of the center is the tangled intersection where three major streets — Murray-Holladay Road, 2300 East and Holladay Boulevard — converge. The RDA, approved by Holladay's Taxing Entity Committee, will use $23.5 million in tax increments to make improvements to the area.
Local governments use RDAs as a tool to cure blighted areas by diverting property taxes into city rejuvenation projects. The 48-acre Holladay Village Center will benefit from the tax increment for the next 15 years.
Developing a walkable community with a historic quality is a leading priority for the city. Plans include a mixed-use development with retail, office and residential space. And, in an unusual move, the city has pledged the retail space will not include national chains or big-box stores — only local businesses.
That's good news for local business owners like Gordon and Connie Hanks, owners of the Holladay Pharmacy. The husband-and-wife team spent $1.3 million on expansion and renovation of their Village Center pharmacy and, Gordon Hanks said, "We're staying right here."
"This pharmacy has been here 70 years," he said. "We're excited for a new mix of retailers to make it a new, vibrant city. . . . Upscale, a little bit funky — that's what Holladay is."
The city will be returning to its roots with the mixed-use development. Holladay was the second permanent settlement in the Salt Lake Valley when pioneers settled the state in 1847. The village center became a destination for settlers throughout the area — a center that could again provide services in a social atmosphere.
"We're very thrilled that we've finally gotten to this point. We've got a great plan in place. We just want to forge ahead and keep it going," Hanks said. "We'll be here for hopefully another 70 years."
Of the $23.5 million, $17.6 million will be used for infrastructure upgrades such as streets, sidewalks, power lines and traffic-calming devices. Business owners have been asking for such improvements for years. A $2 million grant from a federal highway funding bill also will help improve the infrastructure.
About 80 percent of the businesses currently located in the center will stay, City Manager Randy Fitts said.
"We have put some of that money in a program itself to help businesses who will not be moving," he said.
The developers will be in charge of relocating, keeping and adding businesses to the center.
The city purchased the land for $1.6 million and plans to contribute $6 million from its general fund to the project over the next few years. Developer Cowboy Properties, which built the condos at The Gateway, will start construction next year, Webb said.
City officials will discuss plans for affordable housing at Thursday's council meeting. State law requires that 20 percent of the RDA funds must finance affordable housing projects.
E-mail: astowell@desnews.com
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