UPDATE: At 9:11 p.m. Tuesday, the mayor's office issued a clarification to its earlier press release by stating private development on the 110 S. Mall Avenue could take place in the future.

The city of Sioux Falls pulled the plug Tuesday on what was supposed to be the largest private/public development in city history.

The city issued a press release saying the agreement with Village River Group had been terminated. That followed an April 1 letter to the developer notifying them that they were in default of their contract.

The project, called Village on the River, was supposed to be a 15-story building, which included two hotels, retail space, bars and restaurants. The city agreed to build a $21 million parking ramp to support the development.

"Consistent with protecting taxpayer interests, the City has reserved any and all of its legal remedies available to it under the terms of the development agreement," the city's release said.

Village River Group did not immediately respond to an email seeking comment.

More:With $70M Village on the River project in limbo, Sioux Falls officials dodge questions

The city paid a premium for the parking ramp because it was engineered and built to support the 15-story building.

The public portion of the 500-stall ramp broke ground last year. But as the ramp neared completion, the Village River Group had failed to meet contractual obligations, including a $350,000 payment to the city – part of a $1 million total payment – and proof of a performance bond to guarantee the project's completion.

Earlier this month the city said it was reviewing a request to scale back the project. But officials said as recently as last week they expected Village River Group to fulfill the terms of the original agreement.

More:City Hall doubles legal budget for Village on the River project in downtown Sioux Falls

City officials declined to comment.

The project was controversial from the start. It had the full backing of former Mayor Mike Huether, and in December 2017, the City Council approved the development agreement.

But there were questions about the players involved. Originally the project was awarded to Legacy Developments. But after criticism about that company's involvement in the Copper Lounge collapse, which killed a worker on Dec. 2, 2016 and prompted a federal criminal investigation, Aberdeen-based Lamont Cos. joined the group.

It's unclear what the city will do next.

Mayor Paul TenHaken's deputy chief of staff, T.J. Nelson said in a clarification to the earlier press release the possibility of a private development at the parking ramp could eventually happen.

"The city of Sioux Falls has not ruled out private development at this site in the future. At this time, we are focused on the completion of the parking ramp portion of the project."

Jeff Lamont of Lamont Cos., which operates hotels around the country, was one of four guarantors listed in the development agreement. The other three were Paul Cink, Norm Drake and Larry Canfield, all executives of Legacy Developments.

In the lead up to the project's approval, former community development director and now Legacy Developments executive Daren Ketcham, assured city councilors that the four guarantors would be financially obligated to see the project through.

The project's implosion could end up in court. Last week the City Council doubled its legal budget for the project.