The pricey print-out, paid for by a pro-development grass-roots group called Holladay Citizens United, carried the General Growth logo, along with the following quote from General Growth President Robert A. Michaels:

"If we are unable to reach an agreement on the infrastructure assistance, we will be unable to move forward with our proposed plan. We will be forced to invest our money elsewhere which will result in the property sitting vacant for potentially many years."

In a letter presented to the City Council on Thursday, Holladay resident Thomas Breitling blamed General Growth for the mailer, calling it "extortion," and a blackmail brochure.

"That village they want to build will be a mess for too many years," wrote Breitling. "Basically they just said give me money or I'll wreck your city."

According to Kris Longson, General Growth's vice-president of development, his company had nothing to do with the mass mailing.

"Our president is not writing threatening letters," Longson said. "Our company doesn't operate that way."

Longson acknowledged he had met with representatives of the citizens group.

"They had lots of questions. They have a vested interest in the mall project," Longson said. "It has huge ramifications on Holladay taxpayers if it can't move forward."

The quote was taken out of context - and used without permission, Longson added, noting that Holladay Mayor Dennis Webb sent a letter to General Growth asking what happens if tax increment financing gets voted down by members of the taxing entity committee.

"Our president responded to the mayor's letter, saying that General Growth can't afford to move forward without it," Longson said.

Included on the mailer was the Web site, www.newcotton woodmall.blogspot.com, which contains pro-redevelopment posts from the Holladay Chamber of Commerce. But chamber member Scott Kiser also said his organization had nothing to do with the mailer.

In late December, Kiser said he gathered more than 1,000 signatures from Holladay's business community supporting the use of tax dollars to help General Growth build the $550 million mixed-use project.

Much of the 57-acre mall property needs to be raised out of the floodplain, helping to drive basic infrastructure costs up to around $100 million. General Growth has asked the city to bond for $75 million, and then use 78 percent of new property tax revenues more than 20 years to pay off the bond.

Even that tax infusion would fall short. The city would also pledge 75 percent of its share of sales tax revenues generated by the project over the same period to complete the funding package.

To achieve single-digit profit margins, General Growth plans to build a creekside "town" with 534 residential units, 700,000 square feet of retail and 100,000 square feet of office space.

cmckitrick@sltrib.com