Citing the softening economy, Salt Lake City's planning boss will no longer require developer Craig Mecham to fill the hole on the corner of 2100 S. Highland Drive.

Instead, Frank Gray now wants to see a building plan by Jan. 1 and he is calling for construction to begin on the controversial project by next June.

"There's no logic to running 300 truckloads of dirt through the community," Gray told the City Council, suggesting it could ruin the Christmas shopping season. "But they have to show real, honest progress."

Gray is crafting a letter to Mecham that evidently will supersede a previous missive calling for the landscaping to be completed by Oct. 31.

The latest reprieve infuriated Councilman J.T. Martin.

"It's really a mess. We keep moving these goal posts back further and further and we keep getting less and less," he said. "My patience and my constituents' patience . . .. We're done."

Martin pledged to push for more, including a sign on the property that highlights the development plan and, perhaps, another round of public comment. The rest of the council was mum.

Mecham says the sour economy has hindered his financing options for the retail-residential blueprint, and he blames the city for dragging its feet on an approval.

"They're like everybody else, caught in this financial pinch," said Gray.

As a result, the residential component appears on hold. Gray said banks want a pre-sale commitment of 40 percent to 60 percent before lending, which poses challenges to developers. So, phase 1 will focus on the parking structure and retail space for the two seven-story buildings, along with a model unit to market the condos.

Council Chairwoman Jill Remington Love later suggested Mecham look to the Redevelopment Agency for help. But, if there is no residential partner or lender by June, Gray said Mecham must then fill the hole. As security, Gray will increase the developer's bond in case the city has to clean up the mess itself.

djensen@sltrib.com