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As the developers of the proposed $185 million, urban renewal-backed Cove development in Oregon City reach the end of their one-year extension with the city to nail down final project details, they’re asking for nine more months.

After proposing major changes to the phasing of the project in July, the developers 鈥� Ed Darrow and Randy Tyler 鈥� now want more time to meet the city’s requirements included in the original agreement. But the city says it is wary of granting another extension without fully examining the developers’ new plan first.

Oregon City’s urban renewal commission is set to learn more details about the revised project plan 鈥� which includes new phasing and a new financing partner 鈥� at a meeting on Wednesday. The extension the city gave the developers ends Saturday.

鈥淥ur staff needs additional time to study the changes in the proposal,鈥� said David Frasher, city manager for Oregon City. 鈥淭here have been quite a few significant changes to the project, and we haven’t had enough time to do our due diligence on our end. Anytime you make changes of this magnitude there needs to be time to review them on both ends.鈥�

After the developers received a one-year extension last October to meet the initial requirements of the project, they announced in July that they wanted to change the phasing that they had first proposed nearly four years ago.

On Sept. 7, they presented a plan in which they introduced to the urban renewal commission and city staffers the idea of delaying the project’s first phase, which called for construction of a 210-unit apartment complex on private property adjacent to city-owned waterfront property. Instead, the developers said, they want to first construct 180 units of condominiums on the city-owned property; this work was originally proposed as the second phase of construction.

According to Tyler, the first-phase units would be built with condominium finishes but initially be rented out as apartments. The units would become condominiums after the market improved. Following construction of the condominiums, the developers would begin building the 210-unit apartment complex, he said.

But Stephen Janik, the attorney city officials have on retainer for matters related to urban renewal, said the changes in phasing would significantly affect the $10 million in urban renewal money the city had allocated for the project.

While $3 million of urban renewal money was given already, the remaining $7 million was earmarked for site work for the condominiums and wasn’t going to be given until the developers were ready to work on that part of the development.

But with the new phasing, the city would need to hand over the $7 million before anything is built at all.

鈥淭he greatest risk is that the URA is being asked to spend $7 million before the (apartment site) apartments are being built or any other taxable project in that site,鈥� Janik wrote in a legal opinion for the city. 鈥淭hat 鈥� increases the financial risk for the URA.鈥�

Janik has recommended the urban renewal commission table the matter and first decide whether it wants to move forward with the project under the new proposal.

If the city was to decide to move forward with the project, Janik said, a greater depth of tax increment analysis would need to be done and a Disposition and Development Agreement with more details would need to be drawn up.

Tony Konkol, community development director for Oregon City, said that financing could be the most difficult issue to work out for a re-phased project.

鈥淭he land use and grading issues seem fine, and I think we can work through them,鈥� Konkol said. 鈥淏ut we really need to get down to the numbers.鈥�

The developers said they will present an update on financing at the Wednesday meeting. Tyler said it has been difficult to nail down financing in the past couple of years.

Rumors had circulated last week that the project may be dead. But several city officials, and even city commissioners skeptical of the project in the past, made it clear that no decision has been made yet.

鈥淭he rumors about it already being dead I don’t think are true,鈥� said Jim Nicita, a city commissioner focused on shoring up urban renewal spending. 鈥淚’m taking it one step at a time. Once they present their proposal I will look at it, analyze it and then I will make my decision.鈥�

Konkol confirmed that the project wasn’t dead yet, but said there are definitely some issues that need to be worked out before the 10-member urban renewal commission would support the changes.

Mayor Doug Neeley acknowledged that several project rumors exist.

鈥淚’ve heard that someone else is coming up with a new proposal for the site,鈥� he said. 鈥淏ut that’s also just through rumors, so I can’t really speak on it more.鈥�