Construction of Dickinson Hills Shopping Plaza and the city's expansion of Fairway Street have both been delayed until 2020.
The West Interstate-94 business loop property is owned by Draper, Utah, based Raddon Development, which has secured leases for four anchor stores: T.J. Maxx, Hobby Lobby, Dollar Tree and Shoe Depot.
As part of its development agreement with Raddon, the city of Dickinson committed $1.37 million for an expansion of Fairway Street to the shopping plaza.
"It also gave (Raddon) the opportunity to go out and market the opportunity to sell that development," City Administrator Joe Gaa explained.
In August, Raddon pursued a partnership with Timbers Development Group.
Timbers would have assumed ownership of the leases and the buildings, and provided the capital to construct the buildings.
"Several things had to happen," Gaa said. "We had to be involved, and the four leases had to be there."
Construction was expected to start this summer with Timbers' participation.
The city took bids on building the road. One bid came back at $1.7 million, with the developer obliged to pay the extra $400,000. The bid was thrown out.
Because of the high cost of hiring contractors in the region, the project's budget was being stressed at every level, Gaa said.
"The road came in more. Onsite developments came in more. The buildings came in more," he said. "Everything came in more to the point that Timbers, who would fill the rest of the spaces, said, 'I don't think in the end I'm going to get enough money.'"
One week before closing on the deal, Timbers dropped out.
Raddon is continuing forward as developer, though, getting financing in line, with the leasees still on board, and looking for retailers for its smaller spaces.
"Everything is being, I don't want to say renegotiated, but shifted back to (Raddon), so they're going to do it all now, and they weren't planning on doing that," Gaa said. "It looks to me like they're getting their final things dotted in this."
He added, "If you suddenly had to do a $10 million build out project you hadn't planned on, you're not going to start the next day."
With the shopping plaza delayed, the city is holding on the Fairway Street expansion.
The project will be re-bid, likely split as a utility project for fall and spring, with paving in late spring or early summer 2020.
"We're waiting to see what their schedule is," Gaa said of the developers. "If we're able to split it up and use a longer schedule, we should be able to save a little money."
A shopping plaza is still an exciting prospect for the city, Gaa said.
"We know the citizens want it. We're dedicated to working with the developer," he said. "The people want the stores, and we know it's part of our quality of life. We know these stores will bring other retail development as well. We want that."