Plans emerge for extensive downtown Murray development

By Shaun Delliskave | [email protected]

A bid has been selected and presented to the Redevelopment Agency (RDA) of Murray City to set up an exclusive negotiations agreement to develop the Murray City Center District (MCCD). The RDA, which essentially is the Murray City Council and Mayor, reviewed the MCCD bid committee’s recommendation to select real estate development firm Gerding Edlen’s proposal on Nov. 17.

On April 6, the RDA opened a Request for Proposals (RFP) to develop the RDA-owned property at 4800 South and State Street, and five proposals were received. Gerdling Edlen’s proposal rated the highest score and was recommended to enter into an agreement and develop the westside State Street property between 4800 South and 5th Avenue. 

Construction has already begun on the west side of this area where Hanauer Street will be extended southward, and the land for City Hall has been cleared. The city recently presented design guidelines for what it hopes to include in the redevelopment.

Before any construction begins, several buildings, some of which are over 100 years old, will need to be demolished. The most recent tenants of these buildings were Wright Costume, Murray Arts Centre, and Vine Street Antiques. Two other buildings, which are not owned by the RDA, will not be included in the development: the century-old, three-story Harker Building (4842 S. State Street) and the two-story Murray Mercantile Building (4836 S. State Street), built in 1898.

The demolition of the historical buildings has brought an outcry from preservationists. Also of controversy were initial design ideas for a skyscraper nearly as tall as the IMC tower to be constructed on the site.

Gerdling Edlen’s proposal includes a mix of retail and 273 housing units in two buildings encompassing the entire block. The north building will consist of 15,000 square feet of retail at the corner of 4800 South and State Street that has been designed to accommodate a grocery store. The intersection of 5th Avenue and State will have 11,000 square feet for shops and restaurants.

According to the proposal, “We are proposing to build the project in one phase, though the proposed design allows for flexibility to build in phases if market conditions do not favor a single phase. We estimate approximately 11 months to design the project. We would begin the design review process at the end of the schematic design and expect it will take approximately six months. We estimate approximately three months for construction permit review, 22-24 months for construction, and six months for lease-up.”

If all goes as planned, construction will not begin until Spring 2022. A full development and participation agreement will likely take several months to a year to fully negotiate. Public feedback sessions on the proposed designs will take place in early 2021. 

The proposal intends to make the buildings LEED-certified and includes large solar arrays on the rooftops. 

The developers will pay Murray City for the land, appraised at $2.56 million or $22 per square foot. Once developed, the project estimates that 71 retail and property management jobs will be created for the site and bring in revenue for the city.

“The project is estimated to create annual Sales Tax Revenue of $61,425 from increased population due to the increase in units and $52,769 from Retail Point-of-Sale revenue, for a total annual projected Sales Tax Revenue of $114,194,” the proposal states.

The bid committee included RDA Chair (City Councilor) Brett Hales, RDA Vice-Chair (City Councilor) Dale Cox, RDA Executive Director (Mayor) Blair Camp, RDA Deputy Executive Director Melinda Greenwood, Murray City Planning Division Manager Jared Hall, Public Works Director Danny Astill, City Engineer Trae Stokes, Chief Administrative Officer Doug Hill, and Communications Chief Jennifer Heaps.

The proposal is available online at https://www.murray.utah.gov/ArchiveCenter/ViewFile/Item/5284.