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No Comments [ Add Comment ]Ogden's Midtown blues
By SCOTT SCHWEBKEFaltering economy has put a damper on Junction project
OGDEN -- It may be several months before Midtown Development presents a formal proposal to the city's Redevelopment Agency for a possible $115 million downtown hotel and waterpark, Mayor Matthew Godfrey said Monday.
A downturn in the national economy is making it more difficult for projects like the proposed Midtown Village at The Junction development to obtain financing, Godfrey said.
"It's made them (lenders) very conservative," he said.
As a result, it could be months until economic conditions improve, allowing the Midtown Village project to move forward, Godfrey said.
Rob Storey, a business development manager for Midtown Development, said the company remains committed to the project and is working with city officials to resolve several issues, including adequate parking.
"We are trying to get all the pieces put together," he said Monday.
Midtown officials learned last month that 275 parking spaces initially promised by the city in a garage at Grant Avenue and 23rd Street that serves The Junction aren't available.
It could cost the company an additional $4 million if it has to redesign the 14-story Midtown Village hotel and waterpark complex to accommodate additional parking, Storey has said.
The hotel would be built on the northwest corner of 23rd Street and Washington Boulevard, while the waterpark would be built on 1.6 acres across the street.
Midtown Development had planned to purchase 1.7 acres for the hotel from the RDA for the appraised value of $1.7 million.
The company had also hoped to receive a $1.2 million, interest-free loan from the RDA to help cover construction costs.
The hotel would have parking within the first three levels of the building. The exact location for a parking garage on the east side of Washington Boulevard that would serve the waterpark has not been determined. Both of those parking venues are in addition to 275 spaces.
A slump in the economy has also temporarily halted construction on a $100 million luxury condominium project that Midtown Development is building in Orem, said Midtown President Larry Myler.
Several subcontractors have filed liens against the property to receive payment.
Myler said Monday he is hopeful that work will resume on the project within the next several months.
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