Sales brochures for the mixed-use development on State Street invite prospective residents to "Live, Shop, Work, Play" at the million-square-foot development that boasts a mix of condominiums and shops in two high-rise buildings.

Yet developer Larry Myler's vision of a Gateway-like complex remains in limbo.

The north building is empty, its unfinished walls covered with insulation and scaffolding, and a chain-link fence and warning signs keep people away. The south building is finished, but only five of its 79 condominiums are rented. And just two businesses, a pizza restaurant and a title company, have signed on. A sign proclaims that Kneaders' deli is on the way.

Myler categorizes the project as not dead, but on hold.

It is awaiting a break in the economic storm so Myler can get the financing he needs to finish what he started. Another Myler project, this one a hotel pegged for downtown Ogden, is similarly stalled until the economy improves enough to attract investors.

But his third major project - Midtown Village at Legend Hills in Clearfield - is set to break ground in June.

Regarding the first two, Myler said the question is, "How long will it last? Markets tend to cycle and eventually even out. Now there is talk of a recession [and] that is not helping us."

Yet officials in both Orem and Ogden are confident that the projects will eventually be built.

Midtown Village was touted by Orem as a centerpiece project. It was seen as a way to rehabilitate a blighted part of State Street, as well as enhance the local economy. There are plans to move the nearby Hale Centre Theatre to Midtown Village, creating a community where shops and cultural arts are within walking distance.

Myler said the project's target markets are retirees, empty nesters, couples and some singles. Among the amenities the project offers are a rooftop swimming pool, room service and a security detail that includes off-duty police officers.

But then, thanks to the subprime lending crisis, the real-estate market went soft, causing problems for Midtown Village and developments across the state and nation.

First, Myler said, prospective residents couldn't sell their old homes to buy the condominiums. Then lenders started backing away from mixed-use projects and luxury condominiums.

The project is on hold while Myler works out a survival strategy. His first priority is paying the contractors who have put liens on his property, then securing new financing.

Myler recently met with Orem's City Council to discuss his financial situation and assure it that the project is not dead - just on hold until people start buying luxury condos again.

City officials remain upbeat.

"We're confident that the developer will continue with the project and bring it to completion," City Manager Jim Reams said. "The challenges he's facing are the result of market conditions."

Orem has a stake in Myler's success, and it's not just polishing civic pride or shaking off author Norman Mailer's declaration that State Street is the ugliest street in America. In 2004, the city created a special-service district to help pay for parking at the site. The district's $7 million loan won't be paid off until Myler finishes the project.

But even if it isn't completed, Orem shouldn't lose any money, Reams said. The city has a lien on the property that stipulates its debt must be paid before that of any other creditors - including the banks.

Orem is not the only city waiting for the economy to improve so a Myler project can move forward. Dave Harmer, Ogden's economic-development director, said Myler's Midtown Village at the Junction hotel has been sidelined for funding reasons.

"We put together the basics of the project, but they said they're trying to finance it," Harmer said. He added that the credit crunch has hit the real estate market for condominiums particularly hard.

Myler said construction has not begun on that project, but he has not given up on it. "We have to wait before we go forward."

Adam Lenhard, Clearfield's community-development director, said developers are working out a feasibility study for Midtown Village at Legend Hills, but things look like they are moving forward.

"We're optimistic," he said.

dmeyers@sltrib.com