Thanks to the sluggish economy, you won't be seeing any new buildings at the $1 billion Gates Rubber redevelopment until 2011, a year later than planned.

In February, the Rocky Mountain News reported that the developer, an entity created by Chicago-based Joseph Freed, had split from the 50-acre project, which is owned and being cleaned up for contaminants by Cherokee Denver.

At that time, Cherokee President Ferd Belz said he was open to having the Joseph Freed group, called Santa Fe Denver 125 LLC, possibly play a smaller role at the Gates site, called Metropolitan Gardens.

But no more. "We have pretty much agreed to go our separate ways," Belz said.

Since the two groups have split, architects and general contractors are still owed $2.2 million, according to court records examined Monday. According to mechanic lien filings in U.S. District Court, among the prominent groups that have not been paid are PCL Construction and 4240 Architecture, headed by Denver architect Peter Dominick.

Mechanic liens are similar to involuntary mortgages slapped on property for unpaid bills. The liens may be foreclosed on to pay the amount owed.

4240 is owed $529,343 and PCL $299,650, according to documents. In addition, Design Workshop is owed $174,015, according to court documents.

Court documents say that Santa Fe Denver 125 contracted for more than $6 million in work, and has paid more than $4 million to subcontractors. It says Cherokee is responsible for half of the roughly $6.2 million. Cherokee's attorneys responded that is has "no duty" to Santa Fe Denver and said its claims are "frivolous, groundless and lack substantial justification."

The only announced retail tenant for the Gates project so far is Robert Redford's Sundance Cinema, and even that is in doubt.

"Technically, that LOI (letter of intent) was with Freed, and Freed is no longer here, so technically we no longer have a contract with Sundance," said Belz on Monday.

But he said he met recently with Sundance officials at the International Council of Shopping Centers in Las Vegas and he said Sundance is still open to coming to Metropolitan Gardens.

"They said they still like the site and to contact them when we're ready," Belz said.

Initially, Freed "was shooting" to have the first development open by the fall of 2010. Now it is likely to be the spring of 2011 before anything is built, Belz said. "We're looking at the next phase to be smaller, tighter and more office and less residential than Freed was planning."

Several retailers he met at ICSC said that in today's economic environment, they would not be ready to move forward until 2011, Belz said.

Former developer Freed planned a lot of residential, including condominiums, Belz said. Separately, Belz sold five acres to Trammell Crow Residential, which is building a luxury apartment complex on the south side of the property.

"Some people say we no longer even have a condo market," Belz said. "Two years ago, people wanted big projects. But now, there is no capital available to fund big, massive projects."

Belz said that while the starts of the building has "slipped a little," the project is not at a standstill. Cherokee still needs to clean pollution on the east side and has yet to start what could be a long process with the city of Denver on demolition of buildings.

"We don't even know yet if we're going to demolish all of the buildings," Belz said. "We would like to try to save the facades of some of them."

And Belz noted that the redevelopment of Gates has always been envisioned as a 10-year-plus project. Delays and setbacks are to be expected during various real estate and economic cycles.

"Because we're a little bit behind now doesn't mean that the whole thing won't be completed around the 10-year time frame," Belz said.

rebchookj@RockyMountainNews.com or 303-954-5207