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OGDEN, Utah (AP) -- The 60-acre Ogden River Redevelopment Project has been dormant since being created four years ago, and now option-to-purchase agreement are about to begin expiring.
The city's plans for 600 residential units and 155,000 square feet of retail space suffered a setback last year when the Legislature revoked its ability to use eminent domain for redevelopment.
However, officials say they have negotiated option-to-purchase agreements with all property owners in the five acres that would be Phase I of the project.
New Mexico-based Ernest Health Inc. is interested in building a 40-bed, long-term acute care facility, called the Ogden Specialty Hospital, on most of the site.
Under a proposed development agreement, the city would purchase the property for about $3.6 million, demolish the structures and resell it to Ernest Health for $1.5 million.
Chief Administrative Officer John Patterson said time is of the essence, because the option-to-purchase agreements will begin expiring Feb. 3.
"If we can't get this parcel under construction prior to the expiration of the options, then we may never see the river project move forward," Patterson said.
The development agreement would mark the first major decision for the new City Council, after four members are sworn in on Tuesday.
Last week, two of the three new council members agreed during a work session to put the development agreement on the agenda. But they also expressed a desire to obtain more of a commitment from Ernest Health, which has not signed the agreement.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
