RAPID CITY - Hani Shafai says he slept well Monday night after releasing some built-up frustration over the criticism his proposed multi-use downtown building project has received.

Shafai, president of Dream Design, told the Rapid City Council at the start of Monday's council meeting that he refused to put up with further disparaging remarks about himself and his company so he decided to withdraw his proposal.

But after having some time to cool off, Shafai indicated Tuesday morning that stopping the project is not as cut and dried as he indicated the night before.

"We're not actually pulling out completely," he said.

Shafai said he still might walk away from the project, but first, he wants to have a public hearing after the June 5 city election.

Shafai wants to use the public hearing to fully explain the goals of the project, how it is being funded and to address questions. By having it after the election, he hopes it will eliminate some political posturing.

"If there is community support, we will proceed to the next phase. If there is no community support, we will stop there and shelve the plans, and hopefully someday, somebody will come along and want to do it," he said.

Shafai is frustrated that the project, a 15-story, mixed-use building of condominiums, offices, specialty retail shops and multiple levels of parking on a city-owned lot on St. Joseph Street, has become a political football during this year's municipal election campaign.

"It's actually been the coverage that it's been getting. It became more personal attacks," Shafai said. "I'm not running for public office, I'm just trying to help. If I was running for public office, everybody has a right to criticize me."

Criticism of any project is expected, Shafai said, but not to the extent he has had on this one. Particularly galling are claims that he is just a rich developer trying to get even richer, he said.

"The goal of the project is not to hurt the community or take advantage of the community; it's to help the community. It's turning into a project that has been the focus of the entire political campaign, even though there are more pressing issues for the city," he said.

But it's not worth doing if there is no community support, Shafai said.

Shafai said one of the best designers of mixed-use facilities in the world has been hired to design the building. Complete design of the project could cost about $2.1 million, but it will be done in phases.

The first two design phases will focus on blending the project's goals with downtown. A $150,000 contract has been signed for that phase, which will proceed.

"That phase will give us ideas about how the building will fit with the downtown," Shafai said. "My goal is, after the election, to go through a public-hearing process in which we can get input from people in the community, regardless if it is positive or negative."

Shafai said he has been shocked over the tone of some columns and letters to newspapers about the project, especially because most of those who have written negative things have not called to ask questions.

Alderman Bill Okrepkie hopes Shafai can be persuaded to change his mind. He also wants critics to come forward with their plan to move the city forward.

"What's your plan? What's your vision for the community?" Okrepkie asked. "We had a beautiful project going, one that would have been very beneficial for the downtown area, and now, we have a strong potential to lose it."

The project was one of four proposals received by the city at the end of 2006 and was the top project reviewed by members of the parking subcommittee of the City Center Revitalization Task Force.

Last year, city officials asked for proposals to build more parking, retail and living spaces downtown. Instead of using $2.8 million in 2012 money designated for a parking ramp, city officials wanted to create a public-private partnership that would combine public and private dollars to build something grander on a city-owned lot downtown.

The city would provide up to $2.8 million from 2012 funds for the project, and officials have been discussing the possibility of selling the land on St. Joseph Street between Fifth and Sixth streets to Shafai.

The city council earlier approved a tax increment financing district to pay for nearly $12 million in public improvements associated with the project, including public parking, burying power lines in the alley and removing contaminated soil from underground fuel tanks.

The TIF would be used to get a loan for the improvements, and to pay back the loan plus interest over the next 20 years.

The rest of the financing for the $48 million project would come from private investors.

Shafai said financing for the project is solid. Even after his comments Monday, Shafai said his investors still want the project to proceed.

"You tell people what it is, and they get excited about it. The funding is secure. Financing is not an issue," he said.

Mayor Jim Shaw said Monday night that ending the project "just takes the wind out of our sails" for downtown revitalization. He said the project has been explained, yet people continue to use "mistruths and half truths" to derail it.

"He's trying to do something good for the community that essentially we asked him to do, and he's being bashed for it, over and over," Shaw said. "Why? Apparently for political gain. I can't think of any other reason."

Contact Scott Aust at 394-8415, or scott.aust@rapidcityjournal.com