EPA Region 8 – Gateway/500 West Park Blocks Project, Salt Lake City, Utah

The Gateway/500 West Park Blocks redevelopment projects worked hand-in-glove to revitalize the Depot District of Salt Lake City. Comprised of a $300 million mixed-use, mixed income development, the Gateway Associates project includes the renovated historic Union Pacific Railroad Depot. The 40-acre site provides 2.5 million square feet of space for retail, entertainment, office, cultural facilities, a public plaza, underground and structured parking, 500-residential units, and a hotel. Immediately west of the Gateway development is the 500 West Park Blocks infrastructure and landscaping project. The Redevelopment Agency of Salt Lake City (RDA) and Salt Lake City redeveloped four blocks of 500 West by removing abandoned railroad tracks and replacing pavement with large landscaped strips in the center of the street. Infrastructure improvements consist of new curb, gutter, sidewalks, landscaping, artworks, and seating areas, as well as water, sewer, storm drainage upgrading, installation of new street lighting and traffic signals, and the burial of electrical distribution lines. These two projects naturally compliment one another and have significantly reduced blighting influences west of downtown Salt Lake City, opening the door to more redevelopment opportunities.

Area Before Redevelopment

Area Before Redevelopment

Retail Area - After Redevelopment

Residential Area - After Redevelopment

Residential Area - After Redevelopment

Since the early 1900s, the 650-acre area known as “Gateway” has been a major industrial, warehousing, and transportation area. The railroad tracks were installed in the late 1800s and the passenger and train depot was built about 1902. At that time, Salt Lake City was the only sizable settlement between Omaha and Sacramento. Over the years, land uses on portions of the property included a boarding house, police substation, tavern, local cab company office, machine shop, plumbing contractor, auto repair shop, jewelry shop, bakery, and Salt Lake City Corporation’s weights and measures operation. Historically, interstate viaducts, rail lines, perceived and real contamination, high crime, and the lack of open space limited the area. Existing infrastructure suffered from deferred maintenance of public streets and utilities. Water and sewer lines were inadequate to accommodate the population and business growth anticipated for this area. In the 1990s, as part of the reconstruction of Interstate 15, Salt Lake City worked with the Utah Department of Transportation to shorten the 500 and 600 South exit ramps and sever Union Pacific rail lines from 700 South to 300 North along the 500 West corridor.

Prior to acquisition of the property from Union Pacific Railroad, the RDA and Gateway Associates participated in an extensive Phase II Environmental Site Assessment funded by an EPA Targeted Brownfields Assessment grant. Test results indicated that the soil was contaminated with surface oil/gas and creosote along the existing rail lines. Soil remediation occurred while Gateway Associates excavated approximately 40 feet in depth to prepare for underground parking structures including 3 parking garages and over 2,500 underground parking stalls. The contaminated excavated soil and contaminated topsoil were removed to an approved offsite location. In March 2000, a preliminary environmental conditions report was conducted for the Redevelopment Agency, funded by an EPA Brownfields Showcase Community grant awarded to the RDA. The report indicated low levels of methylene chloride, arsenic, benzo(a)pyrene, barium, chromium, lead, and selenium were detected in initial sampling of the property. Contaminate levels were not significant enough to warrant full remediation, but were removed or diluted onsite. Remediation and testing costs in the amount of $50,000 were covered by the EPA Brownfields Showcase Community grant. Although the RDA paid approximately $8,000 for environmental insurance for the street portion of the project, the developer absorbed all environmental costs as part of the excavation for three levels of underground parking.

Since the RDA’s Depot District Redevelopment Project area was created in 1998, relatively little tax increment financing was available to assist in the construction of the project or in the construction of public infrastructure for the project. Realizing that once completed the project would create a larger tax increment, the RDA used future tax increments as incentives and assistance for the project. By signing a participation agreement with the RDA, Gateway Associates received reimbursements for parking stalls related to housing units; right-of-way improvements along 100 South, 200 South, 500 West, and Rio Grande Streets extension; construction of a public plaza and renovation of the historic Union Pacific Depot building. The agreement set a cap on reimbursements as well as receiving the assurance of disincentives added that discourage the leasing of retail space within the project to retail merchants already located on Main Street or leasing no more than 45,000 sq. ft. to any single retail facility.

The RDA received a $1.3 million grant from the Economic Development Administration for development of the park blocks between 50 North and 200 South and a $500,000 grant from the Department of Housing and Urban Development to assist in land acquisition for the second phase of the project. Property owners along 500 West Street also played an integral part by agreeing to participate in a Special Improvement District to help pay for curb, gutter, and new sidewalk. The eight property owners will pay a total of $1.6 million over the next ten years.

Managing the complex nature of this mixed-use project was the biggest challenge this project faced. This was not a project that could be built one building at a time, but instead required the establishment of a critical mass from the beginning to make it successful. Coordination of the entitlements, leasing, construction, and operations of retail and office space, apartment and condominium units, restoration of the historic depot, and construction of several streets and plaza areas was particularly challenging with a less than two-year timeline. Despite an ideal location just blocks from the city’s central business district, the area might have remained in this condition indefinitely had Salt Lake City not been selected to host the 2002 Olympic Winter Games. With a burgeoning local population and the plans to host the world in 2002, Salt Lake City seized the opportunity to revitalize the Gateway District.

This development, now known as The Gateway, is a two-phase mixed-use development of retail (650,000 sq. ft.) office (650,000 sq. ft.), residential and cultural space. The residential portion is comprised of 350 apartments and 150 condominium units, 135 of which will be Affordable Housing units. The development includes the 500 West infrastructure, entertainment and restaurant improvements with structured and underground parking, public plaza improvements, the Union Pacific Depot renovation, and right-of-way improvements. The Gateway is a pedestrian-oriented outdoor lifestyle project with restaurants, shops, and entertainment opportunities. It includes a state-of-the-art Planetarium with a new IMAX theater and a 12-screen multiplex theater. Home to the Olympic Legacy Plaza, the public plaza commemorates the Salt Lake City 2002 Winter Games with a $3 million Olympic fountain, the Wall of Honor, and the Olympic Pavers.

For further information about this project contact Valda Tarbet, Redevelopment Agency of Salt Lake City at (801) 535-7241 or via e-mail at valda.tarbet@cu.slc.ut.us

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