Gardner Group wants to swap out the Zions Bank branch on Highland Drive for a 16-story mixed-use tower that would dramatically change one of Sugar House’s busiest corners. The project, labeled "GEM" in planning documents, would rise to about 183 feet and pack in roughly 196 apartments, ground-floor commercial space, and a rebuilt bank branch with a drive-thru. The plans hit city planners’ desks late Wednesday, officially starting the public review process for a site that has attracted heavy development interest for years.
What developers are proposing
Drawings show the GEM tower on a 0.68-acre lot, with a mix of studios plus one-, two-, and three-bedroom apartments stacked above podium parking and residential amenities. According to Building Salt Lake, the ground floor would house a new Zions Bank with drive-thru service and a bike-focused café fronting Parley’s Trail. Levels two through four would hold roughly 155 parking stalls, and level five would be devoted to resident amenities, including a fitness center, pool deck, and coworking space.
Height, variances and the "open space" trade
To rise two stories above the MU-11 height baseline, the development team is leaning on incentive programs tied to affordable housing and other public benefits. "Due to site constraints, sidewalk widening, and land dedication to the city, the project proposes to include the dedicated land area as part of the required 10% open space calculation," the project narrative states, as reported by Building Salt Lake.
The application also asks for variances, including a waiver from the usual stepback requirement along Highland Drive and permission for extra vehicle access to serve the bank drive-thru. The developers warn that if those requests are denied, the building’s design could need a major rethink.
How the city will review the pitch
The site is zoned MU-11, a mixed-use district that allows taller buildings in Sugar House’s core but comes with strings attached on stepbacks, active ground floors, and open space. The MU information sheet spells out those standards and lays the groundwork for the height bonuses the GEM proposal is seeking.
Large projects like this, especially those involving design review, typically go first to the Planning Commission for a public hearing and recommendation, then on to the City Council for a final call. City planning records show how similar projects are listed on commission agendas and in staff reports when they are scheduled for hearings.
Where this fits in Sugar House's growth
Sugar House has become a lightning rod for mid-rise construction, frequent rezones, and heated debates over what kind of neighborhood it should be. Taller projects in particular have triggered spirited testimony about shadows, traffic, and whether the area is starting to feel more like downtown than a historic retail district.
As reported by The Salt Lake Tribune, earlier high-profile proposals have drawn both strong business support and equally strong residential pushback. That tug-of-war later got a mega-tower-shrunk-to-size recap, as per Hoodline, underscoring how closely locals watch anything tall in this neighborhood.
GEM is still in the early stages, and no Planning Commission hearing date has been set. For now, nearby residents, trail users, and Highland Drive businesses will be watching upcoming agendas and staff reports to see when the tower makes its first public appearance at City Hall.
