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Developer presents mixed‑use amendment for Teton Commercial site; council cautious about losing commercial acreage
Summary
Teton Commercial representatives pitched a mixed‑use concept with small‑business flex spaces and residences to generate daytime activity rather than a large grocery anchor; council praised the innovation but raised concerns about zoning, loss of commercial land, density and the economics of attracting retail anchors.
Representatives for Teton Commercial described a proposed amendment for an 10.28‑acre site at 118 South 6000 West and asked the council for direction on whether to pursue changes to the Master Development Agreement (MDA) adopted in October 2022.
John Gust, speaking for the developer, said market conditions have changed since the MDA and the company is proposing a mixed‑use concept with small business 'flex' space and stacked residential above or behind retail to create daytime traffic for adjacent retailers. "I think in the long run, it'll be best for the city and any other users that we would put in there," Gust said when summarizing the proposal.
Council members praised the idea as a potentially useful product for small businesses but several raised objections: the site is zoned C‑2, the city has limited remaining commercial acreage, and converting commercial land to residential or mixed uses could dilute the market and make it harder to recruit large anchors. Councilors asked for more economic details, including pro forma analyses, incentive terms and the developer’s assumptions about parking and phasing.
Staff and council emphasized the city’s role at this stage is typically zoning and negotiation rather than underwriting a project's economics; one council member noted the city usually becomes more involved on large anchors that request financial incentives. Several members asked the developer to continue exploring alternatives that preserve commercial tax base while supporting small business space.
Next steps: council did not direct immediate code changes or approvals; staff and the developer will continue discussions and return with more detailed economic information if the council indicates interest.
