TRAVERSE CITY -- The curtain has effectively closed for Federated Properties' mixed-use project and parking structure on West Front Street.
The developer announced Tuesday it would not seek an extension of the special land-use permit for 145 W. Front St.
"I guess we're turning the page and we're on to a new chapter," city Commissioner Chris Bzdok said. "That project was not acceptable to the community, (that's) the lesson from the last couple years."
The permit expires this month for an eight-story, 100-foot tall building with a public parking deck, retail and residential space.
Voters in August 2006 shot down a bond proposal of up to $16 million to fund public parking and other related improvements at the site.
Federated had previously asked for an extension, but added that the project had been significantly scaled down due to economic troubles.
City Manager Richard Lewis said they'd need major amendments or a new land-use permit since project plans changed.
The developer still hopes to build commercial business space across the road at 124 W. Front St., but would-be tenants haven't committed to the property.
Federated wanted to develop the 124 site first, in order to collect tax increment dollars that would help fund both projects.
"Also, very unfortunately, strong Traverse City local opposition to Federated's 145 Project has hurt that project's ability to move forward on a timely and budget-conscious basis," Federated attorney Richard Roble wrote in the Feb. 19 letter. "We hope market conditions will change in the future so that Federated can move ahead with its plans in Traverse City."
Commissioner Barbara Budros said she doesn't see that happening right away.
"It's just not the market for it," she said. "As far as I'm concerned, until something else comes before it, it's kind of a dead deal."
Bzdok hopes to continue discussions on public parking in the area.
"If we want West Front Street to revitalize and pick up, we have to provide parking," he said.