"We're in the hunt right now," said Bruce Bingham, with Hamilton Partners, who predicts the loss of Wasatch Property Management should only delay the groundbreaking of the office tower at 222 S. Main St., originally scheduled for July 1, by one month.

"We look to effect a successful and graceful replacement. We've had encouraging levels of interest so far."

Meanwhile, Hansen was alternately contrite and combative Wednesday, telling KSL radio his physical confrontation Tuesday with the mayor at City Hall "was more of an emotional tilt than it needed to be," and "not appropriate." Later, he insisted Anderson was the aggressor, that he threatened to sue, and that it was "political theater."

Hansen did not return calls Wednesday seeking comment.

But Anderson, through his spokesman, rejects any notion that he instigated the skirmish, calling the accusation "totally false."

At the same time, the director and deputy director for the city's redevelopment agency remain adamant that Hansen violated the terms of a 2003 loan and cost the RDA more than $1 million.

In 2003, the RDA loaned Wasatch $2.8 million to help move KUTV from its West Valley City location to the Wells Fargo tower on Main Street. Part of the deal, a loan for $1.3 million, came with a 3 percent interest rate and a condition that half the money must immediately be reimbursed should Wasatch refinance for a term longer than three years.

"Two years ago, they got a five-year loan and didn't disclose that," explained D.J. Baxter, the city's RDA director. "We are really trying to ensure the letter and the spirit of this deal is honored."

Hansen, who calls the new financial note a "bridge loan," disputes that Wasatch tried to defraud the city.

But during the same period, deputy RDA director Valda Tarbet notes, Hansen's company submitted claims for more than a half-million dollars to collect interest breaks for bringing new employees into the Wells Fargo tower. The hitch is that most of the employees did not come from outside the city limits, as the contract stipulates.

Anderson explains the city did not notice this oversight because the RDA switched directors. Longtime former director Dave Oka recently left for a job in North Las Vegas, Nev. Once the oversight was discovered, the mayor, in a June 1 letter to the RDA, called on the board to reconsider a $1 million bump on a $5 million loan for a parking garage at the 222 S. Main St. property.

Anderson wrote that dealing with Wasatch was "challenging and disappointing" and suggested the developer had succeeded "to circumvent the clear requirements of the [loan]."

For his part, Hansen says he has never had a vendetta against Anderson - he speculates the mayor took issue with pro-Bush signs hanging on Hansen's downtown buildings during the anti-war protests - and that he, Hansen, only got involved one week ago.

But Bingham backs Anderson's account that Hansen had decided to pull out of the project prior to the mayor's salvo.

''I can confirm that Dell Loy's indication of terminating our partnership was prior to the receipt of Rocky's June 1 letter,'' Bingham said Wednesday. "He had angst with the RDA before that."

The feud turned public Tuesday evening. Seconds after an intense exchange with the mayor in an RDA meeting, Hansen confronted Anderson in the hallway, bumping him and later grabbing his arm. For several minutes emotions boiled as the two men walked the length of the hallway, exchanging barbs.

When Hansen barked that Anderson didn't have the "guts" to meet with him - he then chest-bumped the mayor - Anderson reacted. "Don't touch me," he protested. "I'll kick your ass."

Hansen, who insists the interest dispute tally is just $36,000, told KSL on Wednesday his decision to walk away is "irrevocable." And he suggested the political climate under Anderson makes it impossible to get development done in the capital.

But Bingham remains optimistic for the new 21-story building, saying that "we can absorb this 30-day delay."

He notes the main-floor tenants, including a bank, a financial-services company and possibly a restaurant, are still in the plan.

"We will find a replacement financial partner," he pledged. "I just want to get the thing built."

Anderson showed little remorse about the departure of the downtown heavyweight, saying Hamilton Partners may actually be better off without Hansen.

"They'll be happy in the end," the mayor said.

djensen@sltrib.com