South S.L. urged not to obtain loan

SOUTH SALT LAKE (Deseret News) — A third-party study commissioned by the City Council recommends against borrowing almost $10 million on behalf of the developers of Market Station.

If the city were to push forward with bonding, only about $2 million would be available, according to the study by David Wilcox Market & Feasibility Advisors. If borrowed, the money would be used to purchase land underlying the proposed development.

"Do not issue a bond or take a loan," the 19-page report reads. "The consultant does not believe adequate amortization funds are actually available to the city or agency."

The draft report has not been released to the public but it was openly considered Oct. 14 by the South Salt Lake City Council. Since that time, the Deseret News has received a copy of the findings.

The analysis points out that South Salt Lake has already invested heavily in the project. In addition to creating a tax-increment funding zone, elected officials have pledged to spend $2.5 million for the Sugarhouse Trolley Line planned to run through Market Station's center.

The initial funding for Market Station dried up when the credit market crashed about a year ago, according to developer Steve Aste. Since then, the aging buildings and worn parking lots in the project area have been untouched.

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