The troubled SunCrest development no longer has a new owner.
Zions Bank and MCO Properties announced Monday that they are calling off plans for the Arizona developer MCO to buy the Draper development.
In a statement released by Zions Bank, both parties said that despite 15 months of due diligence, negotiations with the city, and public forums on MCO's plans to complete the development, "MCO's new direction proved too difficult to balance with the interests of Draper City."
Jeremy Hall, MCO's president, declined Monday to elaborate on the conflicts between his plans and the city's interests.
"I'd love to comment, but I am working with a confidentiality agreement," Hall said. "I don't think I can go beyond what was in the [release]."
Attempts to contact Zions Bank spokesman Rob Brough were not successful.
Mayor Darrell Smith was not available for comment Monday. A message left at his home was not immediately returned.
Zions Bank's sale of the development to MCO in February 2011 was seen as a step toward nullifying a $25 million lawsuit the bank filed against the city. Zions Bank alleged in the lawsuit that the city forced the development into bankruptcy, which is when the bank acquired the property.
The settlement between Draper and Zions Bank called for the city to finish SunCrest Boulevard and build a pump station to provide water to the development.
About 1,000 homes a quarter of the total planned for the project have been built.
MCO had planned to complete the development.