CenterCal Properties LLC sent its request to Farmington City’s Redevelopment Agency in mid-September for an extension of the project, specifically delaying the increment tax. That increment tax would typically increase once construction begins, and CenterCal’s original due date for beginning construction was Dec. 31, 2009.
“It’s the market that’s really messed things up,” said Farmington City Manager Max Forbush.
Forbush cited a Jan. 18, 2007, agreement with the city’s RDA and Station Park that said $80 million worth of the construction project would need to begin by Dec. 31, 2009. That same agreement asked that any postponements be requested by Oct. 15, 2009.
“I believe they have the chance to make two or three postponements all together,” said Forbush. No further postponements are planned or expected at this time.
The provision to make this first postponement is written in the RDA agreement. As it stands currently, the project won’t incur the tax increase until Jan. 1, 2011.
“CenterCal has a lot invested in this project,” said Forbush. The city believes CenterCal will not be going anywhere, but will simply delay the project.
Although CenterCal has said retailers have committed to rent space at Station Park, no official announcement of which retailers those are has been made. The 1 million square feet of development could include a six-story hotel, 10-15 restaurants, a 16-screen Cinemark complex, Barnes & Noble, Best Buy, JCPenny and more.
Station Park is situated in an area of meeting highways and freeways, with 67 acres of land.
The project currently has a sewer and other minor systems installed in the area.