Developer presses South S.L. on bond

SOUTH SALT LAKE (Deseret News) — The City Council here has until mid-October to decide whether it will borrow $9.5 million on behalf of Market Station developer Steve Aste.

The developer has told the council that he is under financial pressure to secure funding for the proposed $500 million project between Main Street and State Street near 2100 South. But contrary to statements by city officials, the developer denies that his project is in foreclosure.

The proposed $9.5 million bonding would go toward purchase of the underlying property.

Private funding for the 16-acre mixed-use project fell away with the housing crash and resulting economic recession, Aste said.

If built, Market Station will include a 27-story condominium building, prime office space and about 18,000 feet of retail capacity. It would center around the planned Sugar House trolley line, which would connect this industrial suburb to Salt Lake City.

"Long-term, this is a great thing for the city economically and otherwise," Aste said. "We think this goes a long way to solving a lot of issues within the city."

The City Council wants to save the project, but it is waiting on an independent analysis from Market and Feasibility Advisors before it makes a decision on the $9.5 million bond.

Original Article