When our mayor and Salt Lake City Council consummated the deal with Hines, a company worth an estimated $144 billion, we were promised a lot for the loss of our one-of-a-kind historic theater. But with recent news that Hines now desires to simply pave the site for what I can only assume is for their sole benefit to the Kerans building, I am scratching my head why Hines still owns the site at all.
We were promised a new residential tower with affordable units. We were promised a mid-block walkway. We were promised an open park space that the public would have access to. We were promised that historic artifacts from the theater would be saved and adorn the interior spaces of a new landmark tower. We were promised a lot in return for a zero-dollar deal that gave Hines millions of tax dollar value in return for all those promises.
But now Hines can’t pull it off. They are focusing on other things, like their revamp of the existing University Club building conversion to residential next to the historic Alta Club on South Temple. They seem to have the capital to do a lot, but not the capital to make good on their promises for the Utah Theater site.
There is a lot of talk right now in our city about the wealthiest getting advantages and deals that the rest of us could only hope for. I have speculated on real estate before and when I was wrong, when I didn’t perform on the deal I signed up for, I simply lost my earnest money or had to sell for less than I bought. Why doesn’t this apply to Hines?
Why hasn’t our mayor and City Council scrapped the now defunct deal, taken possession of the historic artifacts that include a stained-glass skylight estimated to be worth six figures. Why does a company worth so many billions of dollars get all the advantages and our city, and us as taxpayers, seem to get none.
Hines didn’t meet the terms of their development agreement. They speculated and lost. We now have a parcel of property worth more than it did when the deal was struck, and Hines gets all that value even though it seems the only real thing they have done is kick out the local businesses and tear down the theater.
It’s time for our mayor and City Council to call this one done and scrap the deal that failed so long ago. We can put out new requests for proposals. If Hines wants to submit a new one, please do so. But with a seemingly ever-increasing city budget, calls for new bonds at every election cycle, and ever-increasing property values, Hines missed their opportunity and it’s time for Salt Lake City to give someone else a try.
Casey McDonough, Salt Lake City