Developer and city say moving forward isn’t possible until economy improves

In 2006, Salt Lake City developer Kevin Peterson announced dramatic plans to change the face of Tooele’s Newtown district on Broadway Avenue. Peterson talked about restoring the old Broadway Heritage Hotel and building three other apartment buildings. Affordable housing and retail shops were part of the plan and Tooele City got on board with plans to assist in infrastructure. A price tag as high as $10 million was mentioned for the total investment in the restoration project, which was to be financed by tax-credit purchases, tax-exempt bonds and investor equity.

Four years later, however, the Broadway Heritage Hotel sits boarded up, a target for graffiti artists, and life in the dilapidated neighborhood remains largely unchanged.

Peterson claims he’s been a victim of a burst housing market bubble and the recession that followed, making financing plans for the project impossible to put together. Still, neither the developer or city officials have given up hope that the project can come to fruition when the economy improves.

“We are still working with Mr. Peterson,” said Tooele City Mayor Patrick Dunlavy. “His plans were kind of put on hold as the recession started — as well as changes in the housing market — and financing was difficult to put together.”

Dunlavy believes that Peterson is close to having a finance package put together and will soon have a presentation ready for the city to consider.

The Newtown area has a colorful history tied to the fabric of Tooele’s social, industrial and commercial past. It was once home to a diverse group of people that immigrated to America and settled in Tooele to work in nearby mines and at the old international smelter. Newtown had its own business district along Broadway north of Vine Street with a bustling bank, grocery store, hardware store, furniture shop, pool hall and several bars.

But in 1972 the Tooele Valley Railroad dropped its final load of smelter workers at Vine and Broadway as the smelter shut off its furnaces for the last time. After the closure, a way of life for many Tooeleans changed and the Broadway business district over the years slowly withered to its present empty state.

Still, many residents and business owners that remain dream of bringing the neighborhood’s glory years back to life.

“I think if the area was cleaned up some neighborhood shops could come back into the area and revitalize it,” said Dorothy Manusakis, owner of Hometown Bakery and Grocery. Her father used to sell fresh loaves of bread from his brick oven out of the store at 99 N. Broadway.

Manusakis said a homeless shelter in the city would be helpful, as many of the homeless have found their way into the boarded-up empty buildings in the neighborhood.

Jim Busico, a Tooele real estate agent, was born and raised in Newtown. “I would love to see the area revitalized,” said Busico. “As late as the ‘60s, Broadway was a bustling area with a 7-11 store, a gas station, a Laundromat, a barbershop, and other stores. There is still potential here.”

Ignacio Lazalde, from West Valley City, remodeled and opened the Broadway Bar and Grill on the corner of Broadway and Date streets this May. Open on Thursday, Friday, and Saturday nights, the bar and grill offers beer, music and dancing.

“I had hoped to add a restaurant but will have to wait until we can get more money,” Lazalde said.

The fact that the building was in good shape and had a kitchen was part of the attraction that drew Lazalde to Broadway.

Lazalde said he is concerned that the street remains too quiet, however, with not enough traffic to bring people into his establishment.

“We would love to see that area develop,” said Scott Wardle, Tooele City Council Chairman. “In our original master plan, we designated that area as a multiple-use area, a place for retail and residential to work together to create a walkable, sustainable community. That is still what I would like to see there.”

Tooele City indicated initial interest in participating in Peterson’s plan, and developed plans to create a community development area similar to a redevelopment agency (RDA) that would use tax dollars for infrastructure improvements.

A community development block grant for $150,000 was awarded to Tooele City in 2008 to help with curb, gutter, and sidewalk in the area, but when the project stalled and work was not started, the money had to be returned, since the grant was tied to the Broadway development project, according to Dunlavy.

As the city does not own the property on Broadway, there is little officials can do to speed up the project, Dunlavy said. However, the city can enforce current city ordinances.

“Many of the property owners have either moved away or those properties are now in the hands of new generations of the original Newtown settlers,” Dunlavy said. “Most do not live in Tooele and the buildings are empty. We had a fire recently in one of them to the south of the old Broadway Hotel. We will look at that building and others in the area to see if they are in such a condition that they are a health and safety hazard to the point that they meet the requirements for condemnation.”

Owners of commended buildings are required to either bring the buildings up to code or tear them down, according to Dunlavy.

“Unfortunately, if the building owners don’t comply, the city does not have the resources to tear the buildings down,” Dunlavy said. “Once again our current financial condition hampers what we can do.”

Dunlavy said Peterson’s development is still the area’s best present hope for revitalization

“I really hope the that the city can work with Mr. Peterson to make his project in the area happen.” Dunlavy said. “It can be a real turning point for the area and attract other developers to rebuild the area.”

Tim Gillie: tgillie@tooeletranscript.com