Utah Transit Authority and Salt Lake City remain optimistic about extending streetcar service to a key property in the heart of the Sugar House neighborhood. However, uncertainty about what that future looks like beyond that led to a state commission to press pause on funding that plan — for now.
Members of the Utah Transportation Commission agreed late last month to postpone a vote on whether to award an additional $9 million toward UTA’s S-Line expansion project, asking project leaders to return with more clarity and detail before deciding whether to grant the request.
“As we understand it, it was just a matter that the proposal to the (committee) just was not as clear as it needed to be,” said UTA spokesman Gavin Gustafson.
UTA and Salt Lake City have discussed expanding the service area for the streetcar, commonly referred to as the S-Line, for years. The line currently runs from Central Pointe Station in South Salt Lake to Fairmont Station, across the street from Fairmont Park in Sugar House. But, city transportation officials revealed a plan last year that called for extending the line by moving its terminus southeast to Simpson Avenue just before it reaches Highland Drive.
State leaders previously allocated $12 million toward the project in 2021, but it also received $9.9 million from the state’s Transit Transportation Investment Fund and another $6 million from local sources.
The two sides had hoped to begin construction as early as 2024, but the project has since grown. A developer offered up land to extend the S-Line’s easternmost point to about 2265 S. Highland Drive, which is at the western end of the Sugar House Shopping Center and would fit into plans to redevelop parts of the area, said Josh Van Jura, director of trails and transit for the Utah Department of Transportation, during the June 27 commission meeting.
Project leaders jumped at the opportunity, largely because it would move the terminus to a more “prominent location” that’s closer to the neighborhood businesses and health clinic, said Lynn Jacobs, a transportation engineer for Salt Lake City. He added that it also sets UTA and Salt Lake City up for an even larger service extension sometime in the future.
“I think (Salt Lake City Mayor Erin Mendenhall’s) perspective on this is it’s putting the head on the body,” he said, explaining that it could add to the S-Line’s economic development for the city, which has already been impressive.
The two sides asked for another $9 million from the investment fund that would be paired with $6.2 million in local funding, increasing the project cost to about $43.2 million.
Yet, it’s unclear where the S-Line will go next once it reaches Highland Drive. Jacobs points out that the city’s master plan calls for it to move north along Highland Drive and 1100 East in the heart of the Sugar House Business District. Another option, published in 2022, calls for it to travel south along Highland Drive, potentially linking it to Millcreek and Holladay.
That uncertainty prompted greater discussion about the cost of the project.
“That really throws me off,” said Natalie Gochnour, director of the University of Utah Kem C. Gardner Policy Institute, and a transportation commissioner. “That’s kind of like doing I-15 to the (Point of the Mountain) and not knowing how it connects to the I-15 core. We have to know the long-term vision for these things, especially if we’re spending that much money for 100 yards.”
The commission voted to approve other transit funding requests, such as $4 million for an environmental study of UTA’s proposed TRAX expansion in the city, but ultimately decided to hold off on the S-Line vote. A special meeting could be convened; otherwise, it will likely be voted on in mid-August, which will determine how far the extension goes.
It’s unclear how much the snag will impact the project or the construction timeline for a neighborhood that has already dealt with multiple construction impacts.
UTA is still finalizing the project design within its existing budget but is also working with UDOT to have a more detailed presentation as it seeks to extend the line beyond Highland Drive, Gustafson told KSL.com on Monday.
Both he and Salt Lake City officials believe the extension will add to the economic success of the line since it debuted in 2013.
While the S-Line normally averages between 1,200 and 1,600 average weekday boardings, UTA says the S-Line has already spurred $2 billion in new investment. It has helped turn around empty parts of South Salt Lake and Sugar House, as well, after it was constructed with a $26 million federal grant.
The agency also published a report that found that every dollar invested in transit generated $5.11 in economic returns.
“Extending the S-Line to the heart of the Sugar House Business District would build on that success,” said Blake Thomas, senior adviser of real estate and capital projects for Salt Lake City. “(It would) make Sugar House a truly connected neighborhood — and bring new and old residents straight to one of the city’s key commercial hubs.”