SALT LAKE CITY, Utah, Feb. 28, 2023 (Gephardt Daily) — Construction got underway Tuesday on a $96 million mixed-use, mixed-income development on North Temple that officials say will help address Salt Lake City’s affordable housing problem.
Spark, a transit-oriented development at 1490 W. North Temple, will replace the former Overniter Motel site with 200 studio to four-bedroom residential units, including 100 designated for lower income families, city officials said.
The mixed-use development along Utah Transit Authority TRAX line also will include a 5,000-square-foot childcare center and outdoor play yard on the ground floor, as well as a a public courtyard and commercial spaces, according to plans for the project.
“Spark will help to fill a critical gap in family-sized affordable housing units, with 63 units ranging from two to four bedrooms in size,” Salt Lake City Mayor Erin Mendenhall said. “Combined with the ground-floor childcare center, public courtyard, mid-block walkway, neighborhood-serving commercial spaces and its location right across from a TRAX station, this project will serve the North Temple neighborhood and the community at large like no other development in the area.”
Of the 200 residential units at Spark, 100 will be available at rates affordable to families between 20% and 60% of the area median income, with the other 100 priced between 70% and 80% of the AMI, city officials said.
The 2-acre property was purchased by the Redevelopment Agency of Salt Lake City in 2017. The project’s developer, Brinshore Development, was selected by the RDA through a request for proposals.
Brinshore received $15.5 million from Salt Lake City for the $96 million project, including $14.5 million from the RDA and $1 million from the Housing Stability Division, city officials said.
“Because of the RDA’s acquisition of the property and $14.5 million in financing, Spark is able to deliver elevated public benefits,” said Salt Lake City Councilman Alejandro Puy, who also serves as chairman of the RDA Board of Directors.
“As representatives of the west side of Salt Lake City, [Councilwoman Victoria] Petro and I applaud this unique project and are excited to see its construction begin,” Puy said.
Brinshore Development also received public financing from the Utah Housing Corp., through 4% low-income housing tax credits; state and federal tax credits; the Olene Walker Housing Loan Fund; and Salt Lake County funds. Private partners involved in the project include Goldman Sachs and Citi Community Capital, city officials said.
Seems like way too much money for 200 units, even considering the extra 5,000-ft. daycare center and other features. Were these contracts to build put to a legitimate bidding process? If the units averaged 1,500 sq. ft. and cost per sq. ft was $200 we have $300,000 cost per unit which is quite generous, especially when many are studio apartments. Times 200 equals about $60 million, and that seems to allow for some excess building costs. The article says that 63 units are 2- to 4-bedroom units. So over 100 (137??) are smaller than a 2-bedroom unit, costing $300,000 each? I wish the article had included some info on costs of streets, sidewalks, and paved parking. A better assessment of living-unit cost could be estimated. My qualifications for the above assessment. I’m a former CA RE broker, investor and also was a former USGAO auditor for over 8 years.