The history of The Terrace goes way back to 1922 in Salt Lake City. The building at 464 South Main was originally the Covey-Ballard Motor Company’s dealership. It wasn’t until 1931 that it became the popular dance hall known as the Coconut Grove which was advertised as the largest ballroom in America. At some point, probably in the 1940s, the Coconut Grove became known as the Rainbow Ballroom. In 1946, the name changed again to the Rainbow Randevu when local musician Jerry Jones assumed ownership and began regular performances with his orchestra. The Randevu continued to feature a long list of top entertainers of the day. On 22 May 1948, the roof collapsed in a major fire, but damages were repaired within a matter of months.
Meanwhile in Farmington, Lagoon had been hosting popular musicians and performers at the Dancing Pavilion (and later the Patio Gardens) for most of its history. Lagoon became a favorite venue of bands who performed there and many of them returned several times. Perhaps because of this success the management at Lagoon felt they could handle a second venue. It’s still unclear what the circumstances were that led to the takeover of Rainbow Randevu, but Lagoon did just that in 1958. It was renamed Danceland for a short time before becoming known as The Terrace.
Through the ’60s, the names on the marquee changed from musicians such as Martin Denny, Helen Forrest, the Beach Boys and the Four Freshmen to bands like The Who, Jefferson Airplane, Steppenwolf and Led Zeppelin. This transition brought with it different audiences and – to the apparent dismay of the management – an audience that seemed to have an increasing disregard for the law. A big chunk of the ballroom’s revenue was going towards repairs to damaged property and hiring extra officers to maintain order. Several attempts were made for cooperation from the younger crowds. Even though the problems were caused by “a sizable minority” as manager Boyd Jensen acknowledged, the decision was made to end rock concerts at The Terrace. Similar actions were being taken by venue owners around the country as well as Lagoon where the same decision was made two years earlier. The Terrace continued to have “non-rock, traditional musical dancing” twice a week and after a few trial runs, rock bands were allowed to perform at the ballroom again starting in 1972.
At least toward the end of its existence, The Terrace was actually being leased from Little America Company. This lease ran out in 1978 and the Little America Corp. was thinking of using the property for either a new high-rise or a parking lot. Terrace managers were looking at possibly relocating to Prudential Federal Corner at 3300 South State, but before anything was set into motion, Little America reconsidered their plans and allowed the lease to be renewed for three years.
The Terrace closed for good after a New Year’s Eve party at the end of 1981 and sat empty until it was finally demolished. The Max Engman Orchestra, which had been playing at weekly dances at the Terrace for about 40 years, continued to play each Tuesday at the Salt Palace. Attendance decreased significantly and Lagoon Corp. sponsored its last dance on 3 May 1982.
In August 1987, a fire broke out during demolition of the Terrace and burned much of what remained. The entire block was turned into a parking lot for Little America hotel patrons and was recently sold to the LDS Church.