The decision could delay the scheduled June 1, 2002 start of the development as the other partners scramble to find another residential developer. Cencor Urban, a division of Dallas-based Cencor Realty Services Inc., is leasing the retail part of the project and the Texas Department of Mental Health and Retardation is the property owner. "We're all going to be involved in finding a replacement," Tom Terkel, president of Cencor Urban, tells GlobeSt.com. He adds that "conversations are ongoing" with other multifamily developers.

Post was to have developed the 835 apartment units on the 22-acre project, which also includes 150,000 sf of retail and 65,000 sf of office space. The project finally received a green light earlier this year after several years of negotiations between developers, city and state officials and neighborhood groups.

The Triangle is situated on a triangular-shaped parcel at 45th Street and Lamar Boulevard just north of the Central Market development, which also is on state-owned land. The Triangle has qualified for $7.5 million from the city of Austin's Smart Growth incentive program. The mental health agency is to receive rental income from the development.