Construction on phase one of the $1-billion mega-project has been put off until February 2009, with completion now set for 2012 instead of 2011. The reason is the credit crunch. Related Cos., developer of the project, has been unable to secure construction financing (work already has been put off a couple of times). From the Downtown News, which broke the story on its Web site this afternoon:

The developer plans to finalize construction documents for the Bunker Hill complex, which will include design details and help determine building costs, by the end of the year. Related will then move forward with demolishing a multi-level parking structure at Grand Avenue and First Street, probably in November, Witte said. Related previously intended to demolish the structure this past March, but decided to wait in lieu of the current fiscal situation. He said the parking structure, currently closed, could reopen in the interim.

Phase one of the Frank Gehry-designed project includes a 48-story Mandarin Oriental Hotel, a 19-story residential tower, retail space and a 16-acre Civic Park. Construction on the park will proceed as scheduled.