Salt Lake City eyes ordinance banning new parking lots if it wipes out housing

Developers may soon be unable to pave paradise and put up a parking lot in Salt Lake City if paradise is the city’s vital housing stock.

Salt Lake City is inching closer to a new ordinance that would prohibit the demolition of any housing unit for a new commercial parking lot, park-and-ride lot, parking structure, or off-site parking facilities unless the net housing loss is recovered in the project's plan. Existing housing could be removed, as long as it's replaced during the construction of any parking area.

The same applies to the expansion or modification of existing parking lots.

The city currently requires a housing loss mitigation plan for similar plans but the proposed amendment is among a few recommendations from Salt Lake City's Thriving in Place plan the Salt Lake City Council adopted last year. It outlines options that seek to reduce replacement and curb the rising cost of housing in the city.

"This would stop the expansion of parking areas, but not newer residential (or) commercial uses from being developed that provide the required parking," said Kelsey Lindquist, a planning manager with Salt Lake City's planning division.

Salt Lake City continues to battle high housing costs as its population grows . According to Zillow, the average Salt Lake City home is now valued at just over $556,000, while the mean sale price was more than $586,000, as of June.

The average monthly rent for an 820 square-foot apartment is also up to $1,630 amid the state's massive housing shortage. The state estimated earlier this yea r a statewide deficit of about 36,000 units — which is a key reason for rising home prices across the Wasatch Front.

Salt Lake City planning director Nick Norris previously said ordinances like the proposed change are one of the few options cities have to try and combat rising housing costs. That's because housing typically knocked over is considered "naturally occurring affordable housing" and its loss also reduces the available housing options in the city.

"This actually increases our ability to reduce (housing) demolitions when there's not a replacement," he said at the time. "It's narrow, but right now someone could simply demolish ... a house and expand parking or do whatever because there's not a limitation on doing that outside of a historic district and stuff like that."

The planning commission voted unanimously on Feb. 28 to give the rule a positive recommendation.

Salt Lake City Council members also appeared to be generally receptive to the idea when they were briefed about it during a meeting on Tuesday, but they also had concerns about potential loopholes — such as if a developer changes plans in the middle of construction.

Lindquist said a permit won't be issued if the developer can't deliver on housing or their permit would be void in that scenario. There could also be fines if a project drags on. If the project is scrapped after demolition, the required housing need would be carried over in the property title.

It’s up to the Salt Lake City Council to ultimately adopt or reject the measure. The council is tentatively slated to hold a public hearing about the proposal during its Sept. 17 meeting before a potential vote likely on Oct. 1.