By JIMMY LAWTON

POTSDAM -- Omni Development Corp. has pulled out of a $26 million project to rehabilitate Clarkson’s Old Snell and Congdon Halls, but officials say they intend to move forward with the project.

The mixed-use project was set to bring to North Country residents a venue providing cultural arts and interactive learning experiences in one place.

It was also to feature residential units designed for graduate and post-doc students, and housing for professionals.

“That relationship has ended,” Clarkson Financial Officer Jim Fish said. “Now we need to take a pause and decide how to proceed.”

Fish said Clarkson fully intends to continue the project, and that it’s just a matter of determining the best approach. He said current discussions center around whether to find a new developer or do the project in-house. If Clarkson does the development, it could be performed by the non-profit set up for the project or through its for-profit branch, J.R. Weston.

J.R. Weston operates the Clarkson Inn, the University Bookstore and some of the school’s real estate.

Property owned by J.R. Weston pays taxes on its holdings.

Fish wouldn’t comment on why Omni Development Corp. pulled out of the project and attempts to reach a spokesperson at the company were unsuccessful.

In 2014 Onmi was awarded a North Country Regional Economic Development Council grant of $1.2 million.

In 2015 Omni unsuccessfully sought and additional $2.8 million from the NCREDC but was denied.

Fish said that it is his understanding the NCREDC funding could be transferred to Clarkson or potentially another developer. Fish said no construction work has been performed at the site.

The project was intended to provide housing for students, a venue for artists sales and performances and a permanent home for the children’s North Country Children’s Museum.

And Fish says that’s still the plan. The St. Lawrence Arts Council, which is also involved in the project, said it would not significantly impact their plans either.

“This announcement does not significantly impact any current St. Lawrence County Arts Council plans or our partnership with Clarkson. I met with George Giordano of Clarkson University yesterday to discuss my interest in expanding our administrative office space to potential locations on the first floor of Old Snell. I have always been a proponent of steady, incremental, organizational growth -- and this is an opportunity to take a step back and revisit our strategies for long-range expansion," SLC Arts Executive Director Suzy McBroom said.

The cost of the Congdon rehabilitation was estimated at $12 million. According to the plan it would consist of repurposing the building for graduate student housing. Once completed, a total of 72 apartment units will be available.

At the Snell building, the first floor was to be divided into a section for the St. Lawrence Arts Council and the North Country Children’s Museum. The museum will include a play space, innovation station, fun a fitness area, museum store and community room. The arts council section includes a large exhibit space and retail gallery. It also included plans for incubator space on the second floor and plans to retain the existing auditorium, which seats roughly 500 people.

The third floor was to be converted into apartments that would be open to students as well as the public.