Salt Lake is trying to win back Sugar House buyers while “brutal” construction is paused

SALT LAKE CITY — Tim Hall remembers always wanting to open a business in Sugar House because of its “unique vibrant energy.”

When he co-founded Game Night Games in 2004, he was excited to open in the middle of the neighborhood’s growing commercial district.

“It seemed like the perfect place for fun,” he said as he stood next to a pair of gold foil balloons emblazoned with “20” to mark his company’s 20th anniversary this year.

However, the last few years haven’t always been fun.

The COVID-19 pandemic changed business operations and made it difficult for Hall to host gatherings and events, a function his company had always served as a third space for board game enthusiasts. Then, this year, construction along 2100 South and 1100 East changed consumer habits again, as many people skipped trips to Sugar House altogether to avoid traffic problems.

Hall said his company is still “hanging in there” because construction hasn’t been as severe as the pandemic, but others haven’t been as lucky. The owners of SugarHouse Barbeque Company said the construction was partly the reason they closed right next to Game Night Games. Their location is currently being converted into a new Chase Bank branch.

Some other businesses have also closed and others are “on the verge of collapse,” said Erika Wiggins, co-chair of the Sugar House Chamber of Commerce. She told KSL.com she knew the construction would be hard on businesses, but in the end it was “more brutal” than the chamber expected.

“We went in with cautious optimism. Towards the end, I could hardly sleep at night because I was worried about how many businesses we would lose,” she said. “It was more difficult than we ever expected.”

Construction is taking a break because of the holidays, and Salt Lake City officials are hoping to use the break to lure shoppers back to Sugar House this season.

Salt Lake City Mayor Erin Mendenhall celebrated Small Business Saturday by promoting small businesses throughout the city, but particularly at Sugar House. Sugar House Chamber officials have also developed the Sugar House Savings Pass, aimed at attracting customers back to the neighborhood. It unlocks deals and discounts at nearly two dozen companies for people who sign up.

“Please come here to the Sugar House,” Mendenhall said. “These companies have gone through a transformation. … (The project) is a positive investment, but it is difficult for companies.”

Supporting small businesses is critical, she explained, because small businesses make up about 95% of all businesses in Salt Lake City and employ about 60,000 people. About 60% of all money spent on small businesses stays in the local economy.

“Not only do they shape the character and identity of our city, but they are also the backbone of our economy,” she added. “That’s true across America.”

Overcome obstacles

It came at a crucial time this year for Sugar House’s businesses, many of which had weathered the pandemic and a major fire in 2022 that devastated the region and drained any savings and resources. Plans to improve roads and utilities were envisioned for residents through a bond passed in 2018, but some of the projects were pushed back because businesses were not struggling with the constraints of the pandemic at the time.

As deadlines were met overall, some projects clashed in 2024. This caused significant travel problems on both the 2100 South and 1100 East routes. Many businesses lost customers because people didn’t want to deal with the chaos.

“It’s been challenging,” said Becky Lyttle, co-owner of Tea Zaanti in Sugar House, adding that all the momentum her business had gained since the pandemic “just came to a halt” during this year’s construction.

Mendenhall said the city has distributed more than $1.9 million in grants and low-interest loans to local businesses across the city this year to help them overcome challenges. Tea Zaanti was one of the many Sugar House businesses that applied for help.

Lyttle told KSL.com that she used grant money to improve signage and online advertising to reach potential customers, particularly people in the neighborhood who would be more likely to endure the trip. That’s essentially why she also spent Saturday at neighborhood stores like Game Night Games.

“We all do our best to … support what everyone else is doing because we all know how much it means to all of us,” she said.

Hope on the horizon

Crews are still completing some work in the area. Some lane shifts that will prevent some left turns between 900 East and 700 East will be implemented starting Monday, city transportation officials said in their latest project update. Most of what remains to be completed east of 900 East will resume in January after the holiday season.

Meanwhile, the Utah Transit Authority’s Route 220 bus detour will end on Dec. 8 and buses will return to 1100 East in Sugar House.

Wiggins said December will be particularly important for Sugar House businesses this year because of how this year has unfolded and what’s on the horizon. It could make or break some businesses. The Sugar House Savings Pass was created as an incentive to attract people to shop, eat and drink in the area.

“Some of your favorites are still here and need you or they will be gone,” she said.

Next year’s construction will impact parts of 2100 South, but Wiggins said it shouldn’t be as severe as this year because the 1100 East project is nearly complete.

Local businesses in the region are confident about what lies ahead beyond 2025. Preliminary data from Highland Drive, where construction has already ended, shows people are returning after construction, according to the chamber.

“What keeps us going is that we got through this year, and that gives us hope that there can be no regression,” Lyttle said. “I hope the neighborhood will be more inviting for people to explore and stroll.”