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SALT LAKE CITY (AP) -- A $28 million Latino-themed shopping mall employing up to 500 people could be coming to Salt Lake City, backed by a city loan to get it off the ground.
California-based Legaspi Co. plans a 160,000-square-foot "neighborhood lifestyle retail center" on the city's west side, where about 30 percent of residents are Latino. It also plans to build in Ogden and elsewhere in Salt Lake County, according to a company spokesman.
Salt Lake City Mayor Rocky Anderson's office is suggesting the city loan Legaspi $2.25 million for the project. It would be the largest-ever loan from the city's revolving loan fund, and would nearly gut the account.
A new tool created by the Legislature this year could provide an added incentive by allowing sales taxes from the project to be funneled back into the development, said Alison McFarlane, Anderson's economic adviser. The city isn't disclosing the amount of the potential incentive.
The company projects annual sales of $56.5 million, generating $3.7 million in sales taxes.
"We have had two or three other developers come try to put together a project, and we haven't been able to make it work. (Legaspi) is seeing the potential where other developers have not," McFarlane said.
Legaspi President JosDe de Jesus Legaspi said he needs the loan to make the Latino-themed shopping center work. He noted his company is taking the risk, not the city.
"We see a great potential over there," Legaspi said. "Unless we're able to get the specific economic-viability factors, it's very difficult for us to do it. We're not asking them to give us anything for free. We never take that attitude."
The Salt Lake City center would be anchored by a 50,000-square-foot Mexican grocery store called Gigante, according to the city, and would be surrounded by about 10 other shops.
Legaspi wouldn't confirm Gigante's interest. In its other projects, Legaspi typically includes bilingual medical and dental services and a multipurpose center.
There is $3.2 million in the city's revolving loan fund. Counting other pending loans, the Legaspi loan would reduce the balance to $118,000. Such loans can be used for building and property improvements and acquisition. A typical loan amount is $100,000 or less.
The City Council will discuss the Legaspi loan Tuesday.
"In the long term, the city benefits from it," said Councilman Carlton Christensen, whose District 1 includes the project.
Councilman Van Turner, whose District 2 borders the property, said he will be lobbying council members to support the loan. He and Christensen visited other Legaspi projects in California last year.
Kenneth Neal, chairman of the Rose Park Community Council, said neighbors have wanted commercial development at North Temple and Redwood Road for years.
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Information from: The Salt Lake Tribune, http://www.sltrib.com
(Copyright 2006 by The Associated Press. All Rights Reserved.)
