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Orem » For the time being, Midtown Village is off the auction block.
The city was poised to foreclose on this Utah County city's version of The Gateway after Midtown Village LLC missed a loan payment to the city. But Mayor Jerry Washburn said the project's lenders stepped forward recently and paid off the $434,023 annual assessment. Washburn said the banks even compensated the city for its legal expenses.
That and the decision by an Orem technology company to rent space in the project's finished south tower has given Washburn and others confidence that the project will succeed -- eventually.
"If we can just be patient as [the recession] goes through, this project will be a gem," Washburn said at Equinox IT Services' opening at the development.
Midtown Village was planned as a mixed-use project similar to Salt Lake City's Gateway, putting shops, offices and upscale condominiums together in a walkable community.
Envision Utah had given the city an award for working with the project. The city created a special service district to finance parking at the site. Developer Larry Myler was to pay off the $3.6 million loan when the project was completed.
So far, only the south building and the development's central office are completed. The north building stands partially finished, a combination of gaping holes where windows were supposed to be, insulation and bare framing. A chain
Construction came to a halt because of credit problems. Midtown Village is also being sued by Big D Construction of Salt Lake City over unpaid bills.
Attempts to contact Myler were not successful. He did not return a call to his home, and his office number at Midtown Village has been disconnected.
The project also became an issue during the just-completed Orem mayoral race. Challenger Philip Hornberger criticized the project for its high density and use of public money to support a private venture.
But Washburn said the project will reach its potential, once the economy improves and construction gets back on track.
"It is always what we have hoped it would be, a multiple-use walkable project," Washburn said.
Norm Chambers, Equinox's chief operating officer, said moving to Midtown Village, even with its reputation and an unfinished building across the way from his office, was a good move for the company.
First, it was a chance to get Equinox affordable space that was accessible to Interstate 15, Chambers said. And it provides room for the company, which writes business management software, to expand.
Chamber said he's confident that the project will succeed, once the economy improves.
"As a tenant, we feel we are well-protected," Chambers said. "[The foreclosure threat] was never an issue to us. The city has kept us in the loop."
