Utah in 2025 will look very different...Aug 28, 2019
Look at how far we've come in the last decade. Yes, I15 is still under construction... but hey! think of all the big changes we've seen here in Utah. Since 2010, Forbes has listed Utah as "the best state for business" 6 TIMES! While the economy has evolved into something great, we can't help but be curious for what's in store moving forward.
For both Utah and Salt Lake Counties, there are 3 Big Projects that come to mind when looking at what's going to shape Utah's future over the next 5-10 years.
Project 1 - Utah's Inland Port
Have you ever noticed how much land is available by the Salt Lake Airport? You'd think that North America's 23rd busiest airport would be surrounded by thriving business and suburbs. What does Utah have planned for the 16,000 acres (11,000 of which are developable) that surround the airport?
“The development of the Northwest Quadrant of Salt Lake City is one of the most noteworthy events to take place in the local industrial market in the area’s history,” said Jeff Richards, senior vice president with CBRE in a statement. “Given the market’s current size of approximately 130 million square feet, the addition of SLC Port Global Logistics Center has the potential to increase the total market size by nearly 39 percent."
In 2018, the Utah State Legislature passed legislation creating the Inland Port Authority, placing the developable land in the city’s northwest quadrant, under its jurisdiction. The Authority has spent the last year organizing, identifying, and honing the vision for the project. - utahbusiness.com
While we're likely to see shifts in planning, the overall vision for the area is to facilitate international transportation of goods via easier access to transportation, customs clearance, etc. This gives manufacturing businesses the incentive to locate in or near the port in order to tap into better distribution services.
Two Major Employers Coming to the Inland Port
In a FIG Market Report on Magna, UT -- we saw that the Inland port has already nailed down two major employers that will be leading the way in terms of expansion. The first, Amazon will be opening a distribution center expected to bring 1,500 new full-time jobs. Second, UPS is opening a packaging center that could position Salt Lake City as one of the top distribution locales in the western United States.
What Does This Mean for Investors?
"Another large advantage for the Port is its location inside a Federal Opportunity Zone, meaning many projects inside the Port will be eligible for investment from tax-advantaged Opportunity Funds. It’s conceivable that tens, if not hundreds of millions of private dollars could flow into Salt Lake Valley’s northwest quadrant to help stimulate and facilitate growth in the area." - UtahBusiness
You can find more info on opportunity zones here: Federal Opportunity Zones
We've been keeping tabs on the North Salt Lake Valley for some time now. With the expectation of major growth, we started laying foundation for fourplex developments right away!
Here's a look at what we've got going on in Magna, as we capitalize on the growth we've seen over the past 40 years.
Project 2 - New Salt Lake City Airport
Airport Director, Bill Wyatt says "most Utahns don’t seem to realize that an entirely new airport is rising next door to the existing one—which will be torn down in a few years. It’s sort of a well-kept secret,” he says...“This is the largest construction project in the history of the state.”
Starting next year, the SLC airport's $3.6 billion reconstruction will be opening state-of-the-art terminals over the next four years. The Salt Lake International airport currently transports more than 25 million passengers a year on 50 yr old facilities designed for half the amount of travelers. SLC Corp
Below I'll list some of the roll-out plans, but here's an art rendition of what's coming:
Those white "canyon-like" fins along the walls are not going to be white. They plan on seasonally changing the LED lights between each fin to bring color throughout the airport that matches Utah's natural beaty (ie. red rock red/orange in the summer, icy blues in the winter).
Construction Goals for New Airport
- The unveiling of Gateway Center, Parking Garage, Terminal, North and South Concourses-west
- Begin demolition of former parking garage, Terminals 1 and 2, and Concourses A and E
- Build North and South Concourses-east
- Demolition of Concourses B, C, and D
- Demolition of International Terminal
After completion—the new airport is going to bring in more than 24,000 jobs and become the country's most modern and technologically advanced airport. Among these jobs are 23 popular local restaurants. In a press release, it was announced that all concessions will be matching outside local prices. All travelers will be able to enjoy typical pricing experiences as if they were in the city.
Who's paying for it?
"The airport reconstruction is being funded without taxpayer funds. The Airport Board set aside money for many years to help pay for the airport updates and renovation. It’s remarkable and noteworthy that the Salt Lake City International Airport has operated in the black, without debt for many years. Other funding sources include bonds, passenger facility charges, federal grants, rental car facility charges, and airport cash." - UtahBusiness
Project 3 - Point of the Mountain
In the early 1950's the Utah State Penitentiary was moved from Sugar House over to Draper because of the encroachment of population growth in the area. We've been seeing this same growth all over Draper and surrounding areas... and will be seeing the prison move yet again, this time to Salt Lake City's northwest quadrant.
Imagine the attractive real estate soon to open up, as we've seen so many business begin to surround the prison in recent years. According to the Salt Lake Board of Realtors, Draper has one of the highest average home sale prices in the state.
"Legislature created the Point of the Mountain Commission and charged it with conducting a study of the area surrounding the prison site. Envision Utah gathered public feedback to assist with the process. Thousands of Utahns weighed in on the future of the Point of the Mountain via community meetings and online surveys. The Authority is co-chaired by Lt. Gov. Spencer Cox and Rep. Lowry Snow. Efforts are underway to hire the Authority’s first executive director, who will manage the day-to-day efforts of the project." - UtahBusiness
The moving of the prison will be opening up 700 acres of developable space. Envision Utah has mentioned that the key to a strong infrastructure will be to focus on developing the land with a strong emphasis on structuring transportation that can meet the growth of the area.