The Mandan City Commission on Tuesday agreed to extend the agreements of understanding with two developers for city-owned parcels.

The two sites were obtained by the city during recovery efforts of a Burlington Northern Railway diesel spill.

Earlier this year, the city entered into letters of understanding with the two developers.

Both may obtain the damaged lots from the city for $1 on the condition they invest into the locations, making the properties a blend of both commercial and residential.

The city commission must approve the development plans before it turns the property over. Deadline for the plans was originally Dec. 31.

Western Edge Developments LLP's project on Collins Avenue and Main Street was given a six-month extension.

The developer wants to recreate the facade of the former Hotel Mandan, most recently the Crescent Printing building, and create both a retail area and condominiums.

Geris Hopfauf, managing partner of Western Edge Developments, said they aim to reconstruct the historic building with an early 1900s feel, with brick and architectural features as close to original as possible.

Hopfauf cited changes in design, a search for a restaurant tenant and financing as reasons for the delay. A Bennigan's restaurant was to be located there, but due to the poor national economy, that has not panned out.

"We are in the process of reworking this plan," Hopfauf said. "Instead of a two-story building and a three-story building, it's all going to be three-story with underground parking."

She said for the underground parking, a ramp would come in from the alley and provide 27 parking spaces for condo owners in the building.

"We felt it would be a strong selling point to get this project off the ground," Hopfauf told the commission.

The State Health Department will require adequate drain tile to capture the water and the diesel.

"We have to have pumps. We have to have good ventilation for any possible fumes that would come about because of the diesel underneath this particular area," Hopfauf said. "We have to remove and dispose of all the contaminated soil. We have planned on commercial development on the main floor."

She said the second and third levels will consist of 18 condos of various sizes, tailored to the wishes of inhabitants. Three people have expressed interest in the condos.

Prices will start at $165,000 and up.

"I think the Hopfaufs have done everything in good faith," Mayor Tim Helbling said. "The economy has changed drastically in the past few months, as far as requirements from the banks and lending institutes."

Dakota Commercial and Development Co. was granted a two-month extension for its project at the 200 Block of West Main, the former Furniture First lot. It intends on investing more than $4 million in a commercial/condo development.

"It became apparent that underground parking was not feasible under the former Furniture First lot, due to the underground boring and status of the remediation in that area," said Ellen Huber, business development director for Mandan.

She said they are planning a four-story building with 6,000 square feet of commercial lease space at street level, and 30 one- and two-bedrooms on the second through fourth stories.

Dakota Commercial and Development Co. hopes to break ground in the spring of 2009.

Huber said both developers may seek renaissance zone and tax increment incentives to help them with the projects.

(Reach reporter LeAnn Eckroth at 250-8264 or leann.eckroth@;bismarcktribune.com.)