Negotiations are underway this week between local government officials and those who are overseeing the development of a military retreat and major commercial center in the Park City area.

The original terms of a memorandum of understanding with Summit County and Park City could allow the developer to build up to 1.5 million square feet of commercial space along U.S. 40 near The Home Depot. But critics of the project went on the offensive when blueprints for the development turned up recently on the Internet.

The website, which depicted a combination of stores, restaurants and entertainment options, has since been removed.

The Air Force for years has sought a location for a hotel in the Park City area to replace the former Hill Haus lodge at Snowbasin, which was removed before the 2002 Olympics. But the project has grown to include a separate commercial area to help offset the costs of providing room discounts to military men and women.

“What started as a replacement for Hill Haus has turned into [a rest and relaxation] facility for everyone who currently serves or has served in the past in the Department of Defense,” Park City Mayor Dana Williams said. “There is local opposition that has formed.”

The military, which offers lower-priced vacation rentals for service members around the world, wants a hotel in Utah. But when Air Force officials proposed building the hotel at Quinn’s Junction, local leaders resisted saying they would like the military to choose a more appropriate site, perhaps at one of the ski areas.

The military is exempt from zoning ordinances and local leaders are currently negotiating with the state Military Installation Development Authority, sometimes known as MIDA, an entity formed to make it easier for the military to develop the retail center.

“People need to understand that MIDA has the ability by state law to do this all on their own without the city or the county being at the table,” Williams said. “We felt it was important to stay at the table.”

The terms of the agreement Park City and Summit County reached with MIDA earlier this year allowed local officials to participate in the planning discussions. The city and county jointly own more than 100 acres near The Home Depot. The agreement envisions the government selling the land for the commercial development. Tax revenue generated at the commercial center would subsidize rates at a military hotel.

MIDA for about 25 years would receive roughly 80 percent of the property tax increment from the commercial project to help fund the hotel. MIDA would also receive a share of sales tax revenue the development generates.

A location for the military lodge has not been identified. However, officials have considered a site near the Jordanelle Reservoir in Wasatch County.

“What we believe was that before we would ever be selling the [land] that they would have identified a hotel site, completed the environmental analysis on it and created a project area. None of that has happened,” said Summit County Councilman Chris Robinson, one of the lead negotiators for the county.

Critics of the project have told him that city and county officials should refuse to sell the land near U.S. 40.

“I think that all options are still on the table,” Robinson said. “We’re doing the best we can to minimize or eliminate impacts.”

He said he does not regret supporting the memorandum of understanding with MIDA.

“We made the best call at the time and only time will tell whether it’s a good call,” Robinson said. “I hope that MIDA is getting the message as we are that there is a lot of concern about the impacts of this potential project to Summit County.”

Meanwhile, Williams stressed that without the memorandum of understanding, MIDA and the military could have already moved forward with plans for a major development at Quinn’s Junction.

“If we just say no, we get basically thrown from the negotiating table,” Williams said. “What we’re trying to do is figure out density, timing and the location of different things It has to correlate with what the demands are of the hotel. We’re trying to negotiate what is truly needed.”

MIDA officials have submitted an offer to purchase the land near U.S. 40, Williams said.

But MIDA has not shown how much commercial development is needed to offset room costs for soldiers, he said.

“We don’t know at this point how large the hotel is or what their lodging projections are,” Williams said. “We still have a ways to go in terms of understanding the economic effects on Summit County.”

The negotiations with MIDA that took place Monday afternoon are scheduled to continue at the state Capitol on Friday.

Robinson said MIDA officials do not stand to gain financially from a commercial development in Summit County.

“I think they are honorable people and are not enriching themselves,” Robinson said. “Developers are in it for a profit and they wouldn’t be here if they weren’t enriching themselves. But the MIDA officials are not, based on everything I know.”