The Murray City Council voted to declare the city-owned parking lot at 48 E. 4800 South as surplus, approving its conveyance for less than the appraised value. The decision advances a long-anticipated mixed-use development project but has sparked debate over parking availability, employee safety and the financial implications of the city’s involvement.

The 0.76-acre parking lot, appraised at $1.2 million, is being contributed to Rockworth Development Group for a project expected to include commercial and residential spaces, along with a 460-stall parking structure. However, concerns remain over the decision to transfer the land at below market value and the potential loss of parking for city employees and visitors.

City officials argue that the project is crucial to the city’s long-term vision for downtown revitalization. The plan is expected to generate $2.1 million annually in sales tax revenue and $105,000 per year in additional property tax revenue for Murray, according to a study conducted by Zion’s Public Finance. Other taxing entities could see an estimated $500,000 per year in increased property taxes.

“This has been a project that’s been worked on for years,” Murray City Community and Economic Development Director Chad Wilkinson said. “This is something that the city has been looking for for many, many years—a project that would activate, bring vibrancy to our downtown.”

Rockworth Development’s proposal includes 150 residential units and will be constructed below the maximum zoning density, a factor city officials see as a major benefit.

“This one is very important,” Wilkinson said. “Because this project is coming in at a lower density in a lot of different ways—lower density in terms of residential units per acre, in terms of heights of buildings that are being proposed—they are willing to do this to meet the city’s goals and objectives.”

While the development is intended to enhance downtown Murray, some city council members and residents raised concerns about the impact of losing a city-owned parking lot adjacent to the new City Hall.

Councilmember Diane Turner voiced skepticism over the city’s parking study, which was conducted on a Friday, Monday and Tuesday.

“I just wish you would have done it on a Wednesday and Thursday because typically people take Friday and Mondays off,” Turner said.

Councilmember Pam Cotter questioned whether enough consideration was given to future growth in city staff and services.

“Have we taken into account that the city is going to grow with residents and with businesses?” Cotter asked. “Are we looking into the future, or do we just look for today and not worry about the future?”

Wilkinson maintained that the city’s parking needs—including employee parking and visitor access to City Hall—were accounted for. He noted that, on average, between 50 and 64% of city-owned parking spaces remain vacant at any given time.

However, Turner raised additional concerns about employee safety, particularly for those working late hours who may have to park farther away.

“I have a problem for some of the employees that work extremely late at night at City Hall,” Turner said. “I know there’s a police department right there, but I have a problem for their security coming out of City Hall and walking over to the overflow or compact area late at night.”

The development’s financing also remains a topic of debate. Rockworth Development has requested city participation, including financial contributions for infrastructure improvements, such as relocating a large gas line and funding part of the underground parking structure.

“We are anticipating contributing towards the construction of that parking because, in order to get the number of parking spaces that they are proposing, they do need to go underground and create a structure,” Wilkinson said.

Critics argue that the city is giving away a valuable property at a reduced price while also committing taxpayer funds for improvements that would typically be a private developer’s responsibility.

Mayor Brett Hales, however, defended the decision, emphasizing his priority to ensure city employees’ well-being.

“I talk to the employees a lot more than you ever do—a lot more,” Hales said. “I promise you, if you know me, that is my number one priority.”

Despite opposition, the motion passed with a 4-1 vote, with Cotter being the lone dissenter.

Wilkinson clarified that the vote does not finalize the sale but allows city officials to continue negotiations. A development agreement is expected to be reviewed in April, at which time the council and the Redevelopment Agency will weigh in on the final details.

“This decision tonight does not bind you to a certain decision on the development agreement,” Wilkinson said. λ