Salt Lake City is weighing whether to unload the long-shuttered Northwest Pipeline Building and roughly 2.4 acres of surrounding land for $1 million to a development team that wants to turn the site into a mixed-income housing project dubbed "The Grove." The catch: a recent city appraisal pegs the property at about $18 million. City staff walked the council through the proposal at a Tuesday work session and recommended setting a public hearing so residents can weigh in.
According to a staff report filed with the council, the deal would transfer the 2.42-acre parcel at a below-market price of $1 million, to be paid over a 55-year term. Staff describe the markdown as a trade for public benefits, including long-term affordable housing and preservation of the historic structure. Salt Lake City also outlines a tentative construction schedule and asks the council to formally set a hearing later this month.
What The Grove Would Include
According to Building Salt Lake, the plan would reuse the existing Northwest Pipeline Building for about 63 apartments and add a second structure with roughly 133 more, for a total of about 196 units. Staff materials sketch out a tentative mix of 87 one-bedrooms, 80 two-bedrooms, and 29 three-plus-bedroom units.
The project would target households earning below 80% of the area median income, with 21 units reserved at each of 30%, 40%, and 50% AMI. Affordability covenants would lock in those income restrictions for 50 years, turning the discounted land price into a long-haul affordability play rather than a quick one-off subsidy.
Who’s Behind The Proposal
The city's redevelopment page and a 2024 city press release list the development team as Housing Assistance Management Enterprise (HAME) - an affiliate of the Housing Authority of Salt Lake City - working with Xylem Projects and the Common Ground Institute. Axios notes that the Common Ground Institute is led by former U.S. Rep. Ben McAdams, who has launched a 2026 congressional campaign.
Council Reaction and Timeline
Council members largely welcomed the concept, especially the number of family-sized affordable units, but pushed the development team to clarify how ground-floor commercial space will actually be used instead of sitting dark. Building Salt Lake quotes Council Chair Alejandro Puy calling the proposal “one of the most ideal projects I’ve seen in a long time,” while Councilmembers Eva López Chávez and Dan Dugan pressed for more detail on how the retail component would stay active and not just be window dressing.
City materials say that if the deal is approved, construction could begin in phases before December 2028, with a target of wrapping up the full project by the end of 2031.
Next Steps for Public Input
The council has been asked to schedule a public hearing on the proposed cut-rate sale, with staff listing the hearing for Tuesday, Feb. 17, at 7 p.m. and tentative council action in March, according to a public notice and the city's briefing packet. Salt Lake City and the state's public-notice site outline the proposed timeline along with the public-benefits analysis the council will use to weigh whether the $1 million price tag pencils out for residents.
