A downtown developer promising new shops and office space where a vacant McAlpin's store and two empty buildings now stand wants more time and possibly money to attract tenants.

        Contract changes approved by Cincinnati City Council's finance committee Monday also require the city to assume a $1.76 million risk if Madison Marquette's $27 million development fails. The city already agreed to pay $8.5 million for the project.

        “For me, it was a close call because we made a deal, and it seems to me that everyone should live up to that deal,” Mayor Charlie Luken said Monday.

        But he said there were “extenuating circumstances” — namely, the dip in the economy — that warranted a change in plans.

        Cincinnati City Council approval Wednesday would add another year to the contract, which expires Dec. 31.

        Madison Marquette's Development Director Rob Acker acknowledged that the recession and struggling downtown environment have made it difficult to attract businesses.

        No tenants have signed a lease or even a less-formal “letter of intent” for the Fourth Street project. Several retailers have “verbally committed interest,” and the revised contract would make

        it easier to snare some of them, Mr. Acker said.

        The new contract would allow Madison Marquette to develop the project in phases instead of completing 65,000 square feet of retail and 80,000 square feet of office at once.

        The project extends from the former Frisch's Restaurant at the southeast corner of Race and Fourth streets through the Newstedt-Loring-Andrews building and McAlpin's, vacant since 1996.

        The deal calls for Madison Marquette to buy all three buildings and sell them to the city, which will lease them for $1 a year plus 5 percent of gross rents exceed ing $3 million.

        The extra risk comes if the project isn't completed.

        Madison Marquette originally agreed to buy back the three buildings for $8.5 million if the project stumbled.

        Under the revised agreement, the developer would buy only the empty McAlpin's building for $4.5 million.

        The city would have to sell or develop the other two properties to recoup its remaining $4 million investment. Those buildings are appraised at $2.24 million —— $1.76 million less than the city agreed to pay for them.

        Gregory Korte contributed to this report.

        Demand for The Banks is mixed

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