The authority wanted to redevelop the downtown area, and had agreed to pay for a three-level, 250-space parking garage on the site, Morehouse said. The authority is responsible for all parking in the city's downtown area.

Morehouse told GlobeSt.com that the deal was put off after numerous disagreements. "We couldn't reach an agreement with the developer," Morehouse said. "The authority board voted that the details of the project were not satisfactory."

The project began in May 2001, and had at first included almost 400 parking spaces, 50,000-sf of retail and a nine-story condominium building. The price tag was initially estimated to cost $50 million, but the developer later said the costs were probably lower than that amount.

A development agreement was agreed upon by the City Council in August. The DDA said it gave the developer 60 days to inspect the property, but that deadline was extended over and over, said authority officials.

The developer delivered a letter to the authority on Dec. 30, 2002, which contained new conditions and demands that would result in a change to the agreement, which the DDA was unwilling to accept, Morehouse said.

He refused to detail those changes. The developer did not return phone calls.

Morehouse said the contract was terminated, and the site plan and planned unit development costs were returned up to $20,000, after the developer did not indicate it would continue the project with the authority's specifications.

Instant Insights /

Downtown Project Canceled After Extensions

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