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FAIR is a non-profit organization dedicated to providing well-documented answers to criticisms of the doctrine, practice, and history of The Church of Jesus Christ of Latter-day Saints.
A number of criticisms are put forth regarding the City Creek Center Mall in Salt Lake City.
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.(Clique aqui para obter o artigo completo (Inglês))
Approximately 1.5 billion was spent developing the mall. 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 motivation for the Church's involvement in the City Creek Center project is described in an extensive interview with Presiding Bishop H. David Burton: "Mormon leaders and Salt Lake City work together to transform land," Deseret News (7 March 2010). Deseret News has more information on the construction and financing (see here).
In the 19th-century, funds for church and state, church and business, etc., were all intermingled during a good portion of the Great Basin period leading up to statehood. This was because when the Saints arrived in Utah there was no pre-existing community. There was no infrastructure nor corporate entities providing for even the bare essentials of life. Everything had to come from the church and its members. And for the first few decades, none of the church's members were really in a position to invest large capital on projects like roads, bridges, canals, mills, and other necessities. Therefore, the church stepped in and was not only a source of spiritual aid but physical aid as well. Most of the "investment" made by members came in the form of goods and labor, not money deposited into a bank or brokerage account.
It is simply a cop-out for critics of the Church to simply go back in time until they can equate everything that the Church has to a tithing or offering donation. This does not make President Hinckley a liar.
The City Creek Center cost is approximately $1.5 billion, not $5 billion. (The $5 billion figure is popularly used on ex-Mormon message boards)
From the Wikipedia article "City Creek Center": "The City Creek Center is part of an estimated $5 billion sustainable design project to revitalize downtown Salt Lake City. The City Creek Center project itself has been estimated to cost around $1.5 billion." off-site
The "$5 billion" dollar figure refers to the cost of the entire Salt Lake City downtown redevelopment project, referred to as "Downtown Rising." The City Creek Center cost $1.5 Billion. Details about these projects may be viewed at Downtown Rising. Other projects include the following:
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:
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:
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]
As for July 2013, the redevelopment seems to be improving matters as hoped. The New York Times reported:
The mall also has, as of July 2013, a 98% occupancy rate, and data suggest that there was a demand for retail space that the mall helped to fill, shifting spending from on-line realtors to the local economy:
Some have wondered whether tithing funds (even from long ago) aren't the "ultimate" source of the funds used in the redevelopment. A review of the history of such funds and Church involvement in business suggests that this is not the case.
In the first place, it should be remembered that to mix tithing (tax-deductible) funds with taxable funds from other sources would cause major issues with the IRS, something which the Church would be unlikely to risk--both because to do so would be dishonest, and because the legal and public-relations consequences would be severe, even if they were inclined to do so.
The church has a number of for-profit businesses including real estate, ranching and agriculture, media, mercantile, etc. They have carefully invested for over a century in order to have a good financial cushion in order not to be severely in debt as they were in the late 1890s-early 1900s, nor to be on the verge of financial distress as they were in the late 1950s-early 1960s from over-spending building church meeting houses and other church-related ventures and expenditures.
As for where the money came from, obviously some of it would be considered sacred funds like tithing but we need to keep in mind that church and state, church and business, etc., were all intermingled during a good portion of the Great Basin period leading up to statehood. This was because when the Saints arrived in Utah there was no pre-existing community. There was no infrastructure nor corporate entities providing for even the bare essentials of life. Everything had to come from the church and its members. And for the first few decades, none of the church's members were really in a position to invest large capital on projects like roads, bridges, canals, mills, and other necessities. Therefore, the church stepped in and was not only a source of spiritual aid but physical aid as well.
The church used what precious funds it could to build infrastructure and provide for the needs of the people. In the process, the church and its leading members created companies like Deseret Bank and Zion's Bank, Deseret Produce Company, Deseret Salt Company, Deseret Telegraph, Deseret Manufacturing Society, Deseret Iron Company, Jordan River Canal Company, Davis Canal and Irrigation Company, Utah Central Railroad, Utah Southern Railroad, Utah Northern Railroad and a host of other companies. Some companies were successful and others were complete failures.
Members donated time to build buildings, help build railroads, canals and other projects. Those with money "invested" knowing they would probably see only a partial return. Often, the stocks held by these investors earned pennies to the dollars invested and quite often were eventually turned over to the church as a gift. They were all doing what they could to build up the kingdom. Heber J. Grant, for example, had an insurance company that was sold for a very low price to the church and then combined with another insurance company to create Beneficial Life. Deseret Telegraph was later sold to Western Union. Even the hospitals and universities were originally church-owned and run ventures because they had to be.
So, that is where the original money came from that was then used to invest in more profitable business ventures and later used for projects like City Creek Mall. Some of these ventures became profitable and were sold as the church divested itself of businesses they felt other companies could run. The banks were sold, the hospitals were sold. The Church had originally been given an enormous amount of Union Pacific stock shares as well as rails and rolling stock to pay Brigham Young and other investors, including the Church, for labor building the road beds, etc., in Utah. Eventually the church sold its railroads, built from materials and money that came from Union Pacific, back to Union Pacific and made a good amount of money. That money was, in turn, reinvested in other ventures for later use.
Ultimately, the church goes to great length not to mix sacred money with church investments but is constantly trying to use its investments to further the goals of the Church. City Creek Mall was made not to make money (although that has turned out to be a wonderful side-benefit thus far) but to create a place that would draw people back to downtown Salt Lake City. Church leaders were very concerned that downtown Salt Lake City was slowly dying. Stores were closing and the downtown was becoming blighted and unattractive. Church leaders did not want Temple Square and other church buildings to be surrounded by rundown blocks that few people were going to. Therefore, they felt it was worth the investment to build something beautiful and productive that would draw other businesses, restaurants, etc. and keep the blocks surrounding Temple Square vibrant. They seem to have succeeded, and also have provided an economic boon to the region.
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