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SALT LAKE CITY — The downtown area’s west side will take a decidedly different look over the next few years as one of its top retail centers undergoes a major renovation.
Arizona-based shopping center company Vestar has announced a $100 million investment in The Gateway that it says will “bring it back to first-class condition.”
The new plan was announced following an initial proposal to make $30 million in upgrades, said Jenny Cushing, vice president of leasing with Vestar. But the strategy changed when the company decided to include new features that would raise the profile of the once-bustling shopping and entertainment property.
“We’re bringing in a world-class boutique hotel at (a cost) of around $60 million,” she said.
“We came to the overwhelming conclusion that we needed to create this eclectic, urban district that is heavy on food and beverage, open seven days a week with trendy chef-driven restaurants, entertainment venues, unique boutique retailers, coupled with art and culture.”
Cushing said the planned overhaul was originally scheduled to take place over five years, but the timeline has been condensed to less than three years.
When completed, the center will include large, blocklong murals created by nationally renowned artists, as well as statues and a culture component that will be “an urban playground” with several parklike settings with lighted seesaws, musical swings and a permanent stargazing exhibit. In the winter, an ice-skating rink will be constructed over the Olympic Fountain plaza, she noted.
“It’s going to ensure that The Gateway is some place that people associate with hip, social fun,” Cushing said.
Many of the upgrades are being made in an effort to make the property more attractive to a younger demographic as well as the families that currently frequent the center, she said.
“With so many millennials coming into the market because of the (burgeoning) tech sector and all of the businesses that are calling Utah home, there is a large insurgence of that population that we feel is underserved,” Cushing explained. “Our goal is not to compete with the (existing) retail environment, but in order to differentiate ourselves, we need to take this to the next level and create something that is very targeted and very unique.”
Headquartered in Phoenix, Arizona, Vestar owns and manages 52 retail shopping centers in Arizona, California, Colorado, Nevada, Texas, Utah and Washington. The company took over the 623,000-square-foot property in February and has spent the ensuing months analyzing the market and deciding on a suitable long-term growth strategy, she said.
In that time, Vestar has conducted meetings with numerous potential retail clients and announcements of new tenants are expected to begin in the coming weeks, she said. While the company will be adding new retailers, some established tenants will not be retained, including long-time anchor Dick’s Sporting Goods.
Despite the shakeup, Cushing said plans are already in place to fill vacancies with new tenants that will fit better into the long-term vision of the shopping and entertainment center.
“The first big announcement will be right before Christmas with a first-to-the-state retailer that will be coming in,” she teased. “Then, right after the first of the (new) year, we’ll be making another large announcement.”
She noted that the center would maintain its ownership of The Depot entertainment venue, which will be located next to the yet-to-be-named boutique hotel. The center will also offer regularly scheduled free concerts and other cultural events, such as free yoga and a gospel brunch, she said.
“Anything that is going to ensure that the project is ‘always on’ and people are going to resonate The Gateway with 'the place to be’ that’s hip, social fun.”
Among the issues faced by the previous owners as the center lost some of its economic vitality was the growing concern posed by the homeless population concentrated in the Rio Grande District. Cushing said the company is well aware of the matter and has taken steps to improve safety on its property.
“When we acquired the shopping center, The Gateway was not a safe place to be,” she said. “Since then we have implemented our security measures and (it) no longer has a safety issue.”
She added that the company is also confident that local city leaders are tackling the matter appropriately.
“We have all the faith and assurance in (Mayor Jackie Biskupski’s) administration that they are going to address it,” she said. “We consider it to be a temporary issue.”
