A barren, 33-acre tract along East Route 66 astride Fourth Street will not be developed in the near future after all.

The Boise, Idaho-based Hawkins Companies, which had planned to build a hotel, offices, a drug store and more than a dozen retail outlets on the site, has backed out of the $9 million deal with the city of Flagstaff.

The Flagstaff City Council agreed to terminate the project, saying it understood the poor market conditions made it difficult to the develop the site.

No information was available Monday on when the parcel would be put back up for sale by the city.

Hawkins had entered into the development agreement with the city in mid-2008.

The bid placed by Hawkins exceeded the city's minimum asking price by roughly $3 million. Several other companies, including local developer AZNorth, also bid on the city-owned parcel.

With a retail portfolio of more than 9.2 million square feet in 22 states, the Hawkins Companies is among the top 100 retail property holders in the country.

Officials with the city note that no tax dollars were spent or exchanged as part of this development agreement.

Hawkins did invest some of its money on the site in soil studies, renderings and traffic analysis.

At one point, one of the commercial components was likely to include a Sportsman's Warehouse, a national retailer catering to hunters and outdoor enthusiasts.

The frontage property along East Route 66 was freed up when the city moved the railroad tracks south as part of the Fourth Street overpass project. Proceeds from the sale of the land were to be used to offset some of the costs of the $37.5 million overpass, which was funded primarily by a sales tax hike approved by voters.

A spokesperson for the Hawkins Companies could not be immediately reached for comment.

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