HOLLADAY — Construction of a shopping center in place of the old Cottonwood Mall is on schedule to begin next spring, but its developer has confirmed that project completion could be delayed by the slowing economy.

Demolition at the site has been completed, Kris Longson with General Growth Properties told the Holladay City Council on Tuesday.

Structures in the core of the project will be built next summer, Longson said, but further construction will be contingent upon tenants signing contracts for the space.

"The market is going to dictate how fast this thing goes," Longson said. "The last thing we want and the city wants is us to go build a vacant development."

In addition to the Cottonwood Mall, General Growth Properties is redevloping the Fashion Place mall in Murray. Both projects are moving forward but could be affected if General Growth is unable to refinance significant amounts of debt, Longson said.

The Cottonwood Mall project is using tax-increment funding, which allows the developer to defer city, school and county property taxes. The city has also pledged to defer some of the sales taxes garnered by the project.

That arrangement isn't likely to change, said Holladay City Manager Randy Fitts, explaining that the funding process will only kick in when development begins.

"I feel very confident about the presentation tonight," he said.