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Holladay • The owners of Cowboy Partners didn't expect to rake in big bucks after winning the bid for the Village Center project. Their motivation, they say, was to create a development that would turn this east-side community's downtown into a lively gathering place.

"It was never a big part of our business plan," said Dan Lofgren, the company's president and CEO. "It was just a really cool thing to do."

But after years of tweaking and re-tweaking its design to overcome objections by residents — who said the development had too few parking spaces, too many apartments and too little retail — Cowboy Partners could lose the project. The Holladay City Council appears ready to dump its plan for a different proposal.

The vote, scheduled for Thursday, is a choice between two concepts for the $15 million project.

The Cowboy Partners plan that was approved in February by the council features two- or three-story buildings with ground-level shops topped by apartments. The recently proposed alternative has only two-story buildings, with retail space topped by offices.

"We definitely feel that office-over-retail has a market," said Tom Henriod, manager of Rockworth Companies, a Sandy-based development and property management company.

Cowboy Partners is just as adamant about residential-over-retail. "I am not putting away our plans yet because I'm absolutely convinced what we've proposed is the right way to go," Lofgren said.

The residential debate • The city selected Cowboy Partners, along with local businessman and property owner Ken Melby and others, in late 2005 to develop the Village Center on an approximately 2-acre site at the intersection of Holladay Boulevard and Murray-Holladay Road. City leaders envisioned a quaint village that would be a place "for people to gather, shop, recreate and enjoy the views of surrounding mountains and environs."

But after council members approved the apartments-over-shops plan, the Melby Group approached Rockworth Companies to discuss a different approach.

"We told them what we would do if it were our project," Henriod said — a development with restaurants, boutiques, salons and offices, but no apartments.

That alternative was presented to city leaders in the spring. Councilman Lynn Pace announced in July that Holladay was considering it and the city began taking public comment.

Many of the dozens of residents who attended a City Council meeting on Aug. 4 raised their hands when asked if they supported the newer proposal. Henriod said that a residential component would hurt retail because of the amount of parking space that would be taken by apartment dwellers.

The three partners of Cowboy Partners, which is headquartered in Holladay, disagree. "As a resident of Holladay, our first desire was to have the right thing done," Mark Cornelius said. "We have a lot of experience doing this."

Partner Scot Safford pointed out that the City Creek development in downtown Salt Lake includes condominiums.

At an Aug. 11 council meeting, Safford said downtown residents go to area stores and restaurants, bringing life to a city center and encouraging others to also shop and eat there after dark.

"Every city in the country is clamoring for people to live downtown," said Safford, who stressed he was speaking for himself as a Holladay resident, not for Cowboy Partners.

Choosing the center • Dozens of Holladay residents attended an open house last week to see the office-retail version. Gloria Jean Cottam said she likes it but would prefer a one-story development.

"This is better than the other [plan]," she said. "Residential doesn't make sense."

Barry Miller also said he opposed having apartments in a commercial project because there are already plenty of them in the area. But Ron Hilton doesn't see the alternate plan as an improvement.

"The design seems like a boxy kind of building you'd see anywhere in suburbia rather than something distinctive," Hilton said.

Lofgren admits to being a little heartbroken and "horribly disappointed" by the turn of events. However, he said Cowboy Partners is willing to step aside if the city doesn't want its project.

If the switch is made, the city would reimburse the direct costs paid by Cowboy Partners, which is not asking to be paid for the thousands of hours it put into the project. Lofgren declines to say how much money is involved; Mayor Dennis Webb said the amount will be made public if there is a payout.

No matter what happens with the Village Center, Cowboy Partners is still a Holladay booster, Lofgren said. "If the city's convinced they've got a better plan," he said, "we'll do our best to support it."

Holladay Village Center history

Kickoff • The City Council selected Cowboy Partners in November 2005 to develop the spot where now-razed Video Vern's building stood, at the intersection of Holladay Boulevard and Murray-Holladay Road. Planning commissioners in August 2006 approved a plan with two- and three-story buildings with stores, office space and apartments.

First appeal • Some residents asserted there was too much residential, not enough parking and too little retail. The City Council disagreed, but Cowboy Partners cut the number of apartments from 80 to 75.

Second appeal • The council sought advice in response to a second appeal by residents. An advisory committee said the number of apartments would threaten the viability of commercial tenants; Valda Tarbet, deputy director of the Salt Lake City Redevelopment Agency, said residential units would boost the chances of success.

Decision • On Feb. 17, the City Council on a 4-2 vote denied the second appeal and approved a Cowboy Partners plan with 58 apartments and up to 15,000 square feet of office space.

New pitch • This spring, the Melby Group and Rockworth Companies proposed two-story buildings of office space over shops but no apartments. —

What's next

P The Holladay City Council, sitting as the Redevelopment Agency Board, will take public comment on two development proposals for the Village Center beginning at 6:15 p.m. Thursday at City Hall, 4580 S. 2300 East. The board expects to pick a plan that evening. For details, visit http://bit.ly/pd6oeX. To send a comment to the city, go to http://bit.ly/p2nBa1.