SLC RDA Wants Interest Payment From Developer

None by Eric Ray

(KCPW News) The Salt Lake City Redevelopment Agency feels it is owed nearly $120,000 in interest from a loan it made to Wasatch Property Management in 2003.

The RDA says Wasatch Property Management was required to immediately reimburse the agency half the amount should they refinance the 2003 loan for longer than a 3-year term. While the loan was refinanced, the city was not informed. Developer Dell Loy Hansen of Wasatch Property Management gave the RDA a check for $586,000 last night. RDA Director D.J. Baxter says that check covers the principal of the loan, but not the interest. The RDA could sue Wasatch Property Management for the money, but for now the agency hopes to reach an amicable solution to the disagreement.

Hansen nearly came to blows with Salt Lake City Mayor Rocky Anderson at last night's RDA board meeting. The mayor requested the RDA Board take away $1 million in parking-garage money to be used for construction of an office tower on Main Street. As a result of last night's events, Wasatch Property Management has pulled out of a financing deal for a planned office tower on Main Street.

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