Union Walking Dead?
Published On: October 9, 2023 Posted by: Jeremy Peterson
Big development continues across Ogden and the Wasatch Front but not all is happy in the land of apartment monoliths. KSL recently reported on the Union Walk project underway on Historic 25th Street in Ogden. This unique (and controversial) mixed use project has promised to bring 55 apartments to 25th Street while its design and imposing mass have irked many locals for its lack of parking and unhistoric aesthetic.
Now, to add injury to insult, it has been revealed that the developer’s contractor, Makers Line, unilaterally swapped out fire treated lumber which was specified in the project design for regular lumber (a.k.a. firewood). This was discovered of course by city inspectors as framing was nearing completion. Since the stop work order in March, the project has sat idle while the developer scrambles to find a solution to the problem.
Here is KSL’s report on the issue:
Will the developer ever be able to recover from this tragic unforced error? With six months of interest burned on their construction loan, looming remediation costs, and interest rates now sky high, the developer faces massive project overages just to end up refinancing the project into punishingly high interest rates. If I were a gambler in a basement speakeasy on 25th Street (which I am not by the way) I would wager this project ends up in the hands of the bank. If the project is syndicated, the unlucky investors can expect a 0% return for the foreseeable future while time and inflation heal the financial head trauma. Time will tell. At this point it’s all about the money. Money can’t buy you happiness but it can buy a lot of fire resistant building materials and labor. Let’s watch and see what Summa Terra does.
