Main Street Tower’s future remains a mystery 2 years after historic theater was demolished

As the sun began to rise on the mild spring day two years ago, a yellow excavator slowly rolled up to Utah Pantages Theater and delivered the first blow to a parking garage next to the century-old building.

That moment, on April 19, 2022 , launched a lengthy process to dismantle the once-prominent theater and other associated structures after a brief but intense legal fight over the fate of the building . The development company, Hines, ordered the demolition to make way for a 31-story tower poised to add 400 residential units to downtown Salt Lake City.

But, two years later, there's no sign of any imminent construction.

A large wooden board painted with all the colors of the rainbow and topped with various shapes and some graffiti shields the dirt plot from Main Street. A pair of tiny plastic windows that once offered a view of the vacant lot has since been boarded up.

Hines was originally supposed to begin construction by March 2023, under an agreement with the Redevelopment Agency of Salt Lake City; however, the two sides agreed to an extension when it was clear the developer would miss the deadline. A spokesman for the company told KSL.com last year that it had run into “unprecedented market changes” such as record inflation. It made it difficult to get the financing for a project off the ground.

More than a year after that initial extension, it appears there hasn't been much progress made. Salt Lake City Councilman Alejandro Puy, who also serves as chairman of the RDA Board, told KSL.com on Tuesday that the city understood the constraints, which is why it offered the extension. He added that the agency is "still at the table," but it hasn't heard much about the project in recent months.

"We're still not certain about what's happening. We're still poking and asking questions," he said. "When those projects don't happen, there are remedies on their contract about what the city can do (with) the land."

The project is not mentioned on its primary website, but county records show that Main Street Tower, LLC — an affiliate of Hines — remains the land's owner. A spokesman for Hines did not respond to KSL.com's multiple requests for comment about the project's status.

Hines acquired the property in a $0 deal approved by Salt Lake City leaders in 2019 . City leaders wrote off the building's $4 million asking price in exchange for project concessions, such as a certain percentage of affordable housing units, the reuse of the theater's historic elements and a midblock walkway. The deal angered some residents, who said the theater — a building that opened in 1920 — was "irreplaceable."

Michael Valentine, one of the residents who tried to prevent the demolition of Utah Pantages Theater, formed Friends of the Utah Pantages Theater after the deal was signed off on. He helped organize an effort to put the deal up for a referendum that ultimately failed to land on the city ballot before he sued Salt Lake City and Hines over the deal , arguing that it violated multiple Utah laws.

Crews started tearing down the building a day after a 3rd District judge ruled against an injunction that would have delayed the demolition.

Valentine told KSL.com on Thursday that he's frustrated by the lack of progress, saying he believes it affirms his concerns from over two years ago that the theater's demolition was being rushed. He said he's upset that the company argued in court that it would build right away when it hasn't happened yet.

"They have missed deadlines after deadlines that they were supposed to meet. I think the RDA needs to take back this property, needs to take back the historic artifacts, and this deal needs to be canceled for all these different reasons," he said, adding that he's reviewing options, including through courts, to get the historic theater rebuilt.

Puy said he understands the frustration, but he said he also understands the situation developers were put in when the building financing market hit a snag.

The councilman wants to see the building fulfill the promise of padding on downtown housing units — especially affordable units — as the city tries to curb costs. It's a vision that requires the financing and construction structure to line up, which hasn't happened yet.

While Puy said he thinks there's "no one to blame" for the empty lot, he said progress will have to pick up at some point or the city will have to step in.

“There is a deadline ... where some of this needs to happen or not,” he said. “Eventually, soon, we’re going to have to ask those questions again if we don’t see that project come online. There’s a lot of hopes and dreams for this piece of land and, certainly, we want to see something happen.”