Salt Lake City's latest mixed-use project blends historic silos with distinctive rooflines

Silo Park ' makes you feel like you're in a different kind of place, ' the architect says

According to Andy Peters at CoStar News, "The latest mixed-use development in downtown Salt Lake City pays homage to the city's past with the preservation of historic grain silos and the addition of distinctive rooflines on new apartment buildings.

MVE & Partners created a design for Silo Park that echoes motifs at the Post District apartments across the street, a project the architecture firm also designed. At Silo Park, mid-rise multifamily buildings are clad with a special type of brick crafted to look like textured concrete, rooftops are steeply pitched in a sawtooth pattern and windows are distributed across the facade in asymmetric patterns.

The silos are a relic of Utah's history and current status as a major source of wheat, corn and barley, according to federal agriculture statistics. The white concrete silos were used by Cereal Food Processors, a company that operated a wheat mill on the site, and stand out among a collection of otherwise generic industrial buildings, a convenience store and a self-storage facility.

The underlying point that MVE and the developer wanted to make is that Silo Park's distinctive design creates long-term value for a property, said Pieter Berger, a principal and architect at the Irvine, California-based firm.

“We established this precedent at Post House,” two of the residential buildings at Post District, Berger told CoStar News. “We said this is a neighborhood that values architecture differently. It makes you feel like you’re in a different kind of place.”

Lowe Property Group, Blaser Ventures and Catalyst Opportunity Funds are partnering to develop the $300 million Silo Park. Plans call for the construction of two buildings and the conversion of two existing buildings. Construction began last month with the first phase estimated for completion by the end of next year. The entire project is scheduled to wrap up at the end of 2027.

It’s located in the Granary District of Salt Lake City, a former industrial area now experiencing a commercial renaissance.

“People want to be in the Granary District because they like its character,” Berger said.

The Salt Lake City area's population is projected to grow 8.2% from 2023 to 2028, up to about 1.4 million people, according to Site Selection Group, an economic development consulting firm. That's the seventh-fastest rate among large U.S. metropolitan areas.

In anticipation of that growth, Salt Lake City is rerouting one line of its mass-transit rail system and plans to add a stop in the Granary District near Silo Park. The Salt Lake City passenger rail network also includes stops at Salt Lake City International Airport, the University of Utah and a major hospital.

Silo Park is a short walk to Delta Center, home arena of the NBA's Utah Jazz and the newest team in the National Hockey League, the Utah Hockey Club. Some groups in Salt Lake City have discussed replacing the 33-year-old Delta Center, though no plans have been finalized, Berger said.

If a new arena is developed, Berger hopes it will be located downtown. That’s not guaranteed, however. The Salt Lake Bees, a minor league baseball team affiliated with the Los Angeles Angels, are building a stadium in Daybreak, about 20 miles south of downtown.

The Salt Lake City Council in July approved a participation agreement with Smith Entertainment Group to spearhead a renovation of the Delta Center and the creation of a new entertainment and commercial district surrounding the arena, according to the Deseret News. The proposal would be funded through an increase in local sales taxes to generate about $1.2 billion.

New apartments

But downtown Salt Lake City has enough new commercial developments to help the district compete with other rapidly growing areas throughout the booming Salt Lake Valley, Berger said. A recent spurt of new apartment construction has flooded the downtown Salt Lake City market with units, leading to a current vacancy rate of 14.5%, according to CoStar data. That's higher than its historic average of 9.3%.

Luxury apartment development has also surged with about 1,700 units in the pipeline after 2,000 units were completed over the past 12 months, according to CoStar data. That's one of the most aggressive rates of luxury apartment development in the country.

Some recently completed downtown projects include Brinshore Development's The Aster and Ritchie Group's The Charles.

The residential component of Silo Park is slated for a mix of affordable units and residences priced at market rates for a total of 741 apartments. The project is also set to include 58,750 square feet of commercial space that could be adapted for retail, entertainment venues or other uses.

Long-term plans call for a possible hotel, though the hospitality element has not been finalized, Berger said.

The 100-year-old concrete silo structure has been vacant for years. While the developers and MVE discussed converting the silos into a boutique hotel, Berger said it would be “incredibly expensive” to retrofit for modern safety standards.

For the record

MVE & Partners created the master plan for Silo Park and is the project’s design architect, architect of record, interior designer and creator of branding and signage. Wasatch Commercial Builders is the general contractor for the project’s first two buildings."

The development of Silo Park in Salt Lake City is likely to have significant implications for property taxes both locally and in other parts of the nation as mixed-use developments become more common. Here's an analysis based on the article:

Impact on Property Taxes in Salt Lake City

Increased Property Valuations: The preservation of historical silos and the addition of high-quality architecture can elevate the aesthetic and economic appeal of the Granary District. Projects like Silo Park often increase surrounding property values, as they attract more affluent residents, businesses, and visitors. Higher property valuations typically lead to higher property taxes for local landowners.

Commercial Activity Boost: The 58,750 square feet of planned commercial space, along with the potential addition of a hotel, could significantly increase revenue-generating activities in the area. As commercial spaces thrive, their property tax contributions rise, benefiting local government budgets.

Affordable Housing and Mixed Use: Silo Park’s mix of affordable and market-rate units ensures diverse demographic appeal, potentially stabilizing the property tax base. Affordable housing typically offers tax incentives or reduced rates, which could mitigate immediate revenue gains but ensure longer-term community stability.

Mass Transit Improvements: The addition of a mass-transit rail stop nearby will likely further boost property values, encouraging urban densification. Areas with strong transit connections often experience a “transit premium,” leading to higher taxable values for both residential and commercial properties.

Implications for Property Taxes Nationwide

Economic Spillover Effects: Mixed-use developments create hubs of activity that attract ancillary businesses such as cafes, retail stores, and services. These activities increase the commercial tax base, which in turn funds infrastructure improvements and public services.

Urban Revitalization: Across the U.S., cities have used mixed-use developments to transform underutilized or industrial areas. Such projects can lead to higher property taxes, helping municipalities close budget gaps or fund public projects. However, they can also exacerbate concerns about gentrification, displacing longtime residents or businesses unable to afford the increased tax burden.

Variable Tax Policy Impacts: Some cities provide tax incentives for developers of mixed-use projects, which may delay property tax increases. Over the long term, however, these developments often pay for themselves through increased economic activity and higher tax revenues.

Infrastructure Costs: Mixed-use projects typically necessitate infrastructure upgrades (e.g., roads, utilities, and public transit), which may initially strain municipal budgets. Over time, the tax revenues from such developments usually offset these costs, but this depends on thoughtful urban planning.

Potential Challenges

Displacement Concerns: Higher property taxes resulting from increased valuations may disproportionately impact low- and middle-income residents, potentially driving them out of newly revitalized areas.

Tax Revenue Reliance: Cities may become overly reliant on property taxes from mixed-use developments, making them vulnerable to economic downturns or market saturation.

Conclusion

Silo Park represents a forward-looking approach to urban design, blending historical preservation with modern needs. While it is poised to generate significant property tax revenue and spur economic activity in Salt Lake City, the broader impacts—positive and negative—offer lessons for cities nationwide. Strategic planning and equitable tax policies will be crucial to ensuring that mixed-use developments contribute to sustainable and inclusive urban growth.