City Creek Center in Salt Lake City

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City Creek Center Mall in Salt Lake City

Questions

What can you tell me about the Church's decision to develop the area of downtown Salt Lake City, including the large City Creek Center Mall project? Are tithing funds used for this project? Shouldn't the Church use the money instead to feed the poor and help the needy?

Ensign, "News of the Church"

The Church of Jesus Christ of Latter-day Saints,  Ensign, (December 2006)

The Church first announced three years ago it was planning to redevelop the downtown area to energize the economy of the city that houses its headquarters and to bolster the area near Temple Square. No tithing funds will be used in the redevelopment.

Answer

No tithing funds are invested in the City Creek project. However, those funds that are invested may well pay dividends in the future, as well as providing many benefits to the community and those who live in it.

The entire project was financed through the church's commercial real estate arm, Property Reserve, Inc.

Deseret News has more information on the construction and financing (see here).

For a detailed response, see: Mormonism and church finances/City Creek Center

How does the Church decide where to spend money?

Some have insisted that funds would be better if directed to charitable works such as feeding the poor. The Church does have an extensive humanitarian effort. Critics on this point often overlook the fact that Church funds are best managed not by sitting in a bank account, but through prudent investment. Investment in land and real estate development is often a wise and ultimately profitable investment approach.

It is entirely possible that the City Creek Center Mall will eventually become a money making venture, as the Church collects rent from mall merchants. This investment strategy would allow the Church to, over time, recoup its initial outlay or even make money that could be further dedicated to the Church's religious and humanitarian goals.

Critics also overlook the fact that if money is spent to feed the needy, that money is gone. On the other hand, if the Church reinvests in Salt Lake City's downtown core, this provides jobs and economic stimulus (for example, via construction and then the service-industry jobs which will fill the mall upon its completion). While providing fewer short term gains, this long term "teach a man to fish" strategy could ultimately benefit many more people, by allowing them to "help themselves." Presiding Bishop H. David Burton noted:

Reflecting on City Creek, Bishop Burton said that if he'd known seven or eight years ago that "we'd be facing the second-worst recessionary period in our history, I may have not suggested we proceed this quickly with the City Creek project. But knowing there would be on any given day upwards of 1,700 jobs in the community — and that could bless the lives of a lot of families," the church decided to move forward.

"And when you get the secondary impact of those 1,700 prime jobs and the multiplier effect, it is a substantial contribution to this state and this community and its tax base, Bishop Burton said. "Any parcel of property the church owns that is not used directly for ecclesiastical worship is fully taxed at its market value."^[1]

Further, property investment does not preclude the Church from continuing its service efforts with other monies. This is not an "either/or" question.

If Salt Lake can avoid the fate of so many other inner cities--a lapse into disrepair, poverty, and crime--this will likewise benefit all the city's inhabitants. The Church seems to be taking a longer view to preserve the city core for the future. One observer has noted economic and social benefits already:

Natalie Gochnour, the executive vice president of the Salt Lake Chamber, points out that the development will include 524 residential units and is already pumping life into downtown. Over the last two years, more than a dozen new restaurants have opened within a two-block radius of the development.^[2]

Will LDS standards be required by the mall?

Some have wondered if the mall will be required to adhere to LDS standards (e.g., no sale of alcohol, no Sunday openings). The City Creek development (which includes other establishments and housing in addition to the mall) is a joint venture between a real estate developer owned by the LDS church and another developer that is not affiliated with the church. It appears that alcohol will be served at some venues, and some venues will be open on Sundays, but that this will only be permitted at venues which are owned by the partner developer, NOT at the venues which are owned by the LDS church's development company.^[3]

== Notes ==

1. [note]  "Mormon leaders and Salt Lake City work together to transform land," Deseret News (7 March 2010).
2. [note]  Deseret News (7 March 2010).
3. [note]  Chris Vanocur, "Will alcohol be served on Sunday at LDS Church's new City Creek Center?" ABC4.com, Salt Lake City (19 May 2009).