Citing the weak economy, a Tennessee-based developer has chosen to put off a large-scale apartment and retail project in downtown Plano.
The decision by Southern Land Co. comes as city officials are increasing their public commitment to the project. They have agreed to pay the firm as much as $1.7 million in incentives to build – up from $1.1 million initially.
The project was supposed to break ground last fall and finish later this year. Now, the project will probably not start construction until sometime in 2010.
A spokesman said the company's plans to build in Plano have not changed. City officials also expressed confidence in the effort.
The delay represents the latest setback for a project expected to anchor the continued revitalization of Plano's quaint downtown.
Located just south of 15th Street near Haggard Park, the complex will be several stories high and include shops, more than 200 apartments and a parking garage for city police. The endeavor is expected to add some $25 million to Plano's tax rolls.
All told, the city has pumped more than $20 million in taxpayer funds into downtown to help jump-start the area. Downtown got a big lift in late 2002 with the arrival of DART's Red Line train.
Yet progress has come in fits and starts ever since.
New bars, restaurants and apartments have brought some new energy to 15th Street, Plano's main drag. At the same time, a few businesses have struggled or closed, while some residential projects in the area have had sluggish sales.
The down economy has made matters worse. The original firm in charge, Seattle-based Pinnacle Development, turned the project over to Southern Land late last year amid the downturn.
The city's share of the money will come from a pool of East Plano tax dollars meant specifically for downtown projects.
City officials said they expect to recoup some of the investment through a program administered by the North Central Texas Council of Governments.
Jim Cheney, a spokesman for Southern Land, said he believes the project will begin soon.
"Our commitment level hasn't changed," he said. "We're not going anywhere."
Frank Turner, assistant city manager in charge of development for Plano, said delays are to be expected given the economy.
"With the financial markets changing – all of it has required some rethinking of the project," he said.
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