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The developer of the University of Utah's proposed Universe Project has backed out, placing plans for the transit-oriented project on hold indefinitely.

Inland American Communities Group had signed a nonbinding letter of intent to lease and develop land west of Rice Eccles Stadium into a vibrant commercial center. Plans called for university offices, 150 rental apartments and retail shops anchored by the University Campus Bookstore, a grocery and a cinema.

But on Nov. 13, after a year of planning and receiving public input, Inland American pulled out, citing unfavorable economic conditions.

Inland American is a wholly owned subsidiary of Inland American Real Estate Trust of Oak Brook, Ill. Company executives could not immediately be reached late Wednesday.

U. officials expressed gratitude for Inland's "professional, creative and honest approach" to the project during a time of unprecedented financial upheaval.

"They were great partners," said Michael G. Perez, U. associate vice president for facilities. "At a point where conditions are better, we'll probably regroup and could still partner with Inland."

No money had changed hands.

"It wasn't a deal until we actually signed a ground lease," said Perez. "We never signed one, but were working toward that."

Concerns about the project's feasibility materialized over the past several months, said Perez. The lending environment and expectation of financial returns have changed, he said.

Other points of concern cited by the U.:

» Rental markets have softened resulting in less demand for on-campus housing.

» Commercial retailers are struggling.

» Inland's plan may not have provided the U. with enough parking for weekend and evening events.

» Today's low construction costs weren't enough to offset other factors.

Universe Project would have tied into the Stadium TRAX stop, which sees 15,000 riders a day, and was a key part of the U.'s vision to get students to spend more time on campus.

Perez said the U. remains committed to that goal. "We think the project had value, not only to the university, but to the city and the valley," he said.

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