With construction set to begin on the first phase of an ambitious office park, developers and city officials said Friday that the long-predicted "downtown at South Towne" is becoming a reality.
"The suburbs is where it's at," said Jim Morse, one of four partners involved in the development of The Towers at South Towne.Having secured financing from a New York lender last week, The Towers' partners announced that work on a $4.5 million, six-story office building will begin immediately.
Additional towers ranging in height from nine to 15 stories could be added later, bringing the total cost to an estimated $50 million, according to Dan Christensen, Towers partner and president of the San Francisco-based Commercial Lending Corp.
Located on 33 acres near I-15 at 10600 South, the project is one of a growing number of large commercial developments in what is being called the Salt Lake Valley's southern hub.
Across I-15 in Sandy is the South Towne Mall, a new Hampton Inn and several other commercial and retail establishments. A new circuit court complex is planned. Soon to be announced is construction of another inn in South Jordan. And a golf course has been proposed for the area as well.
The 10600 South corridor is midway between downtown Salt Lake City and Orem-Provo, and it is in the path of the valley's population growth. Currently, the population center is at about 8000 South and I-15 and moving south.
"There is no doubt that the 106th South area will become a commercial hub in the valley," said South Jordan Mayor Theron B. Hutchings. He called The Towers "a pioneering effort" and said it will be an asset to the city's tax base. "We're thrilled about it."
South Jordan, which bills itself as the community that offers "life just off the fast lane," has set aside the freeway frontage for commercial-industrial development. Hutchings said the project - the largest in the city's history - will not detract from the country atmosphere of the residential areas to the west.
"From our standpoint, it is an appropriate location for development," the mayor said, adding that the community is comfortable with the idea of having the valley's southern hub at its east gateway.
Noting that 80 percent of the 70,000-square-feet in the first building at The Towers already is leased, Morse insists a market for quality office space exists outside downtown Salt Lake City.
"Maybe downtown is inundated with office space, but more and more businesses are looking for a better location," Morse said. "I think we can attract companies like Wang and Digital out here because of the freeway access, the availability of quality housing and the proximity to the Provo-Orem area."
He rejects the contention that development at South Towne is premature. "With our extensive pre-leasing and the stability of the mall, I don't see that as a problem," Morse said. Also, there is little competition in the area, he added.
Christensen cited a real estate agent's proverbial three rules for success - "location, location and location" - and said the 10600 South site is ideal.
He said, "We really believe that there will eventually be two major office centers in the Salt Lake Valley. One downtown, one at South Towne."
Morse doesn't believe that suburban office parks will compete with downtown Salt Lake office space because "we serve a different market."
The other two partners in The Towers project are Paul Feldman and Gary Jardine. MHT Architects Inc. designed the structure, and Layton Construction will build it. A groundbreaking ceremony is scheduled for Friday, Sept. 6, at 4 p.m.