Downtown steps up after a decade of economic development.

• Author: Hengesbaugh, Mark Gerard
• Position: Regional Report: Downtown Salt Lake City

IT'S REMARKABLE. By all measures but one, the economy of Salt Lake's central business district grew at an unprecedented pace from 1990 through 2002. Downtown office space doubled, employment expanded, sophisticated cultural and convention facilities opened, hotels increased in number and quality affluent residents moved in, and rebuilt freeways and light rail brought easier access. For public and private investment, no other period in Salt Lake City's history compares with the score of years leading up to the 2002 Winter Olympics.

Yet, reading the local newspapers, you'd think downtown is dying. Most front-page ink focuses on the one component of downtown's economy that's declined--retail. "A dozen boarded storefronts on Main Street leaves an incorrect impression about the city's health to the casual observer," points out Robert Farrington, executive director of the Downtown Alliance.

A closer look is revealing. While only non-food retail--such as department store sales--has declined downtown, this small, highly visible sector is the traditional barometer of central business district vitality.

But non-food retail is no longer an accurate measure of urban health as cities reinvent themselves for the new millennium, say urban planners. Here's the national trend: Because of increased suburban mall competition, downtown areas are no longer the focus of regional retail sales. However, cities increasingly develop their downtown regions as centers of entertainment and commerce.

So downtown Salt Lake City is growing more robust even as its nonfood retail sector appears to ebb. "We made a list of 50 new businesses that moved into downtown Salt Lake since February 2002," and these companies have done their market research before locating here, says Farrington. "For example, Urban Barber, which recently moved into a beautifully renovated space in the Judge Building, has a new concept and a unique product. If it works in Salt Lake, they'll go national with it."

For new businesses like Urban Barber, offering services to the growing army of downtown office employees is a strong bet. The commercial office sector dominates Salt Lake's central business district economy today, providing 85 percent of its employment. Downtown office employment has grown to 61,000 workers in the past dozen years, and payroll totals $2 billion annually, making the central business district one of the largest economies in the state, according to "Economic Benchmarks 1990-2001,"...