Tough times in the financial market have made an impact on a proposed high-end condominium project in Mt. Lebanon, said developers.

Zamagias Properties was granted a 12-month extension on its construction deadline by municipal commissioners last week, citing poor sales prospects.

"Until there is a market that is there for us, we're going to hold off," said Michael Heins, Zamagias chief financial office and Washington Park project manager.

"There's not much we can do right now, other than let time take its course and let people get comfortable again [with the real estate market]."

The company told commissioners that recent stock market plunges, as well as a weak market for housing sales, have resulted in dwindling public interest.

"There are several people who still believe the proposal can be a major development for the municipality, and of course we all still want that to happen," said Commissioner Dan Miller.

The project is located in his ward.

Although the commission voted unanimously to extend the deadline, it did so with reservations.

"But we have to balance what can happen and what is likely to happen. To that end, what we're kind of hedging the bet on is the economy [improving]," Mr. Miller said.

Most recent plans for Washington Park included two, eight-story towers that would include condominiums ranging from $300,000 to almost $1 million, plus businesses and green space, built in two phases.

Given recent events, plans might be scaled down.

"Other than maintain the property as it is right now, we don't plan [construction in the near future]," Mr. Heins said.

Although there have been reservations on some of the units, he said, none have been sold.

"The overall condominium market in the region has virtually dried up," he said.

This particular project has been the subject of controversy in the past. In 2007, the previous Mt. Lebanon school board and commissioners voted to approve a tax-increment financing program that would divert revenues of $10 million over 20 years.

Not everyone in the community agreed that a TIF was appropriate.

At the time, the developers set a construction starting date for autumn of 2007.

Mr. Miller, who has had discussions with Mr. Heins, said, "The reality is, he wants to build that project, he wants it to be successful. He does not want to sit on that property."