SALT LAKE CITY — The Church of Jesus Christ of Latter-day
Saints has purchased 13 acres of prime downtown Salt Lake City real estate from
The Sinclair Companies, formerly known as Sinclair Oil Corp., the hotel and oil
corporation owned by Utah billionaire Earl Holding.
The property is located on two city blocks between 400 South
and 500 South and between West Temple and the Matheson Courthouse.
The LDS Church confirmed the sale Thursday afternoon.
The sales price was not disclosed by either party nor on the
special warranty deed filed with the Salt Lake County Recorder's Office.
"The land was purchased as a long-term investment with
no immediate plans for development," said LDS Church spokesman Scott
Trotter.
Trotter said Property Reserve Inc. — a development arm of
the LDS Church currently building the City Creek Center, a $3 billion office,
retail and residential development in the space formerly occupied by the ZCMI
Center and Crossroads Mall — obtained the property.
The deed to the property was signed Dec. 14, according to
property records.
"It's the block north of Little America, the entire
10-acre block," Sinclair spokesman Clint Ensign said. "I believe that's
Block 40. And then it is three acres directly east of Block 40. It's the block
where the state courthouse is."
The property had been a surface parking lot.
"There's a number of different tenants downtown who we
have that parked with us," Ensign said.
Over the past decade, numerous prospective buyers had
approached Sinclair about buying the parking lot.
Sinclair never sold, but last June, Holding offered the
property to Salt Lake County for no cost if the county would consider building
a new convention center there instead of partnering in a hotel project near the
Salt Palace.
But the idea never got off the ground, Salt Lake County
Councilman Joe Hatch said, because the Salt Palace has been functioning as a
convention center for years.
"There was never really any thought of blowing up our
convention center and building one down there," Hatch said. "I think
we kind of viewed it as an interesting argument."
Holding offered the property as the county was discussing
building a new hotel near the Salt Palace to accommodate tourists. An advisory
committee had been assembled to address the issue and Sinclair representatives
are participating on the committee, said Jim Braden, spokesman for Salt Lake
County Mayor Peter Corroon.
"We were told awhile back it's being sold," Braden
said.
According to deed paperwork at the recorder's office,
Property Reserve is nonprofit, and there is no loan associated with the
property purchase.
With the deed, Property Reserve had to agree to some
conditions, including not selling the land without first offering to sell it
back to Sinclair. The company's right of first refusal is good for 25 years,
unless Sinclair sells both the Little America and Grand America hotels before
then.
Property Reserve can lease or transfer all or a portion of
the property without triggering Sinclair's right of first refusal to an "affiliated
entity," which the deed defines as a corporation with at least 80 percent
of outstanding stock owned by Sinclair, Property Reserve or another LDS Church
entity.
Contributing: Scott Taylor
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