Site work for Tivoli Village began four years ago. Three years ago, a major subterranean garage had been built and the project was ready to go vertical and slated to be built in a single phase that would open in late 2008. Two years ago, it became a phased project, with the 700,000-square-foot first phase to be completed in 2009, consisting of 500,000 square feet of retail and restaurant space in 18 buildings topped by 200,000 square feet of office space and 41 condominiums. A second phase called for an additional 300 condominiums in three buildings overlooking Angel Park Golf Course at the north end of the property.

Late last year, several months after the developer, locally based EHB, sold an additional stake in the project to equity partner IDB, Israel's leading holding company, they slowed construction in light of the souring economy so the partnership could review its options. Done told GlobeSt.com earlier this month that the new plan is for a 370,000-square-foot first phase to be ready for a soft opening in late 2010. The new first phase, rising at the southern end of the site, essentially consists of the amount of space for which the partnership had firm lease commitments, he said, and is being built without any financing.

"There were a number of tenants still interested and there were others who said they didn't have the capital or were no longer interested in expansion so we had to respond to that," said Done, explaining that all of the leases had to be renegotiated because of the scope changes. "If this thing plays out as we see it we should be able to start on the remainder [of the original first phase] very close to when we open the first phase, ideally opening in time for the 2011 holiday season."

Done is hopeful about being able to roll right into the second phase is based in part on ongoing conversations with retailers and the close tracking of sales data. "Sales are anticipated to be flat, maybe one- to two percent up for some, depending on the retail category. When comparable sales hit this point, we understand where the market low is," he said. "There's really only one way for retailers to grow earnings on consistent basis, and that's by adding stores. Reducing expenses works in the short run but to show consistent growth, you need to expand. We're expecting to see demand next year as the capital markets loosen up."