The half-billion dollar project slated for west Mesquite is nearing an Aug. 26 deadline for making a $316,002.50 down payment on the land they negotiated to purchase back in February of this year.

Even that deadline appears to be steeped in controversy.

According to section 3.1 of the original Joint Development Agreement signed on Feb. 25 between the City of Mesquite and Desert Falls Properties, the Utah company was supposed to pay a 5% down payment on the property "within sixty (60) days of the approval of the Joint Development Agreement, but in no case sooner than the completion of the survey and recordation of the large lot map."

The 60-day deadline passed on April 26, but the survey wasn't ready.

However, according to the City's Economic Development Director Bryan Dangerfield, the 60 day clock didn't start until the land survey was completed.

That didn't occur until June 26.

By Dangerfield's estimate, the new deadline for Desert Falls to pony up the 5% down payment is Aug. 26.

"The land hadn't been surveyed," Dangerfield explained last Wednesday. "That didn't happen until June 26. That's when the clock started."

In addition to resetting the down payment clock, the survey also wound up reducing the acreage to be included in the deal, and the price.

Originally, the Joint Development Agreement called for Desert Falls to purchase 925 acres in between the city's Regional Park and Mesa View Regional Hospital.

Following completion of the survey, the size of the parcel was reduced to 864 acres.

The shrinkage occurred thanks to the removal of the detention basin, the well site, and the site of the Virgin Valley Water District's Arsenic Treatment Plant along Falcon Ridge Parkway, as well as dedicated streets within the plot of land.

This reduces the purchase price from $6,625,000 to $6,320,050.

The purchase price of the land, and the 5% down payment, do not include the $1.5 million Desert Falls will owe for their half of the Hardy Way extension which is mentioned in the agreement, or the $3,335,000 the group has agreed to pay for bringing a redundant Fiber Optic line into Mesquite.

At closing, Desert Falls must pay the full balance on the $7,820,050 total before they can take possession of the land.

The big question on that amount is "when."

According to section 2.2 of the agreement, Desert Falls is supposed to close on the property "within 60 days of the granting of the Future Entitlement, if it has not already closed on the Property."

Dangerfield explained that the "Future Entitlement" was the point at which the city rezoned the land.

That rezoning took place on May 26.

Based on that paragraph, it appears that Desert Falls is actually required to pay the full amount of the purchase on July 25, even before the down payment is due on Aug. 26.

The only remaining deadline after the down payment is Nov. 26, 2011.

By that date, the developers must complete Phase One of the project.

Phase One includes 24 soccer fields, a stadium soccer field, 20 softball fields, 16 tennis courts, a stadium tennis court, and 12 sand volleyball courts.

By that date, the Fiber Optic line must be installed, or the developer forfeits the $3.3 million in escrow.

While there is nothing in the agreement which sets a time for the balance to be paid for the land, road, and Fiber Optic escrow, Dangerfield believes it will happen sooner rather than later.

"It's in their best interest to purchase as soon as possible," Dangerfield said, pointing out that the group can't do anything on the property until the closing takes place.

"They want to get this project moving sooner than Aug. 26."

There is no deadline set for subsequent phases, which involve the most expensive aspects of the project.

Future phases include a proposed 15,000 seat baseball/softball stadium; a 10,000 seat indoor stadium for football, basketball, and volleyball; a track and field complex; indoor facilities for swimming, diving, basketball, volleyball, and racquetball; a golf course; a facility for sports medicine, rehabilitation, and nutrition; 100 acres of commercial development to include shopping and hotels; and 495 single family and multi family residential units.

While Dangerfield is confident that the deal will take place, that the proposed sports complex will be built, and that it will be a tremendous boon to the community, he conceded on Wednesday that it won't happen as quickly as people had hoped.

Originally, there was discussion of having parts of the sports complex completed in time for the huge softball tournament which is scheduled for Mesquite in March of 2010.

In 2009, that event drew more than 100 teams, injecting millions of dollars into the local economy.

Dangerfield admitted that the sports complex "probably won't be ready," and that some of the games for that tournament will have to be played in St. George.

"I don't think they'll have the fields up and running by that March tournament," Dangerfield said.

But that doesn't shake his belief in the complex.

"The reality of the project, the enormity of it, means that nothing ever happens as fast as you think," Dangerfield said.

While there has been a lot of speculation over whether the project will actually come to fruition, he pointed out that even if the worst happens, and the complex isn't built, the city won't get hurt.

"What's the downside?" Dangerfield said. "Nobody's buying land right now."

"They've got to perform. But even if it doesn't happen, what is the city out?"

When asked about the fact that the developers haven't paid even a token security deposit on the 864-acre parcel, Dangerfield responded by saying "What's the security at this point? A lot of good faith."

In the meantime, the Economic Development Director and other City officials continue to tout the proposed complex when speaking to potential investors and business owners thinking about coming to Mesquite, meaning the project is serving as a benefit to the community even before it's built.

To see a full PDF version of the Joint Development Agreement between Desert Falls and the City of Mesquite, go to http://records.mesquitenv.gov/sirepub/cache/8/ut2k5g55mqwf0gimpzp344f0/21593607202009073015897.PDF