OREM — The banks involved in financing the Midtown Village will have an additional month to meet and consider their options on completion of the project.

After a unanimous vote Tuesday, the Orem City Council voted to give the consortium of 45 banks until Dec. 31 to address their current situation and develop strategies on moving forward. Specifically, the city is interested in recovering money it put into Midtown to fund the public parking portion of the project.

The council voted to exchange a current interim warrant, which would have expired on Dec. 1, for a warrant with a maturity date at the end of the month, buying the banks more time.

Orem City Manager Jim Reams said the warrant exchange will allow the banks who are the financial partners in the project time to meet and strategize in early December in Salt Lake City. He said the extra 30 days would give the banks time to figure out if they'll be able to pay off the interim warrant or if the city will need to look into long-term financing.

Reams said the city has already lined up a commitment for covering any long-term financing if the option becomes necessary. The party is committed to buying the bonds, even if it means buying them later rather than sooner. If the city is forced to seek long-term financing, the banks will be obligated to cover the annual assessment, Reams said. Failure to do so would result in an immediate foreclosure.

James Davis