Hotel/Wading Pool Project Put on "Temporary" Hold

Midtown Village developer battens down the hatches in hope of riding out the recession

This morning's Standard-Examiner has the latest update on the Midtown Village at The Junction hotel/waterpark project, which Orem developer Larry Myler has now reportedly put on "temporary" hold, due to currently unfavorable conditions in the financial and real estate markets, which essentially means the developer has run out of money. From Ace Reporter Schwebke's story, buried on the Business Page at the back of today's newspaper:

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.

And here we'd believed all along the main problem was those 275 missing parking spaces for which Dave Harmer has been searching during these past few weeks. Oh my.

And there's more. At the foot of the article the Std-Ex's Ace Reporter ever-so-gently gently mentions another Larry Myler project which has been likewise put on hold, this one apparently in mid-construction:

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. [Emphasis added]

The Deseret News also had a story on Myler's Orem project in yesterday's edition, from which we glean a sampling of the several interesting reader remarks from the comments section beneath the D-News article:

Concerned Citizen: Does anybody remember that the CITY paid for the parking garage to be built? Does anyone remember that the developer got that for FREE? Now we pay the bond with taxes so the developer can continue to build a building that doesn't make economic sense, because he has connections at OREM City. Who is going to organize a movement to hold them accountable?

Orem is not Alone!!!: This is the same developer that wants to build the same project in Clearfield, and the same builder that wants to build the 14 story hotel in downtown Ogden. Can you imagine the people of Ogden having a 14 story downtown hotel stop construction half way through the process. It will be Ogden City mall all over again. Good luck Clearfield and Ogden, Mylers coming North.

Another Orem Resident: The big question is? Who on the city council approved this disaster - and WHY?

So many questions... so few answers.

And is it just us, or are there others among our readership who think the Emerald City taxpayers may have inadvertently dodged a bullet in re this project?