GARDEN GROVE – The 90-foot steel structure known as the “rusty skeleton,” which has spent a decade going through several failed development projects, may be nearing its end.

The City Council on Tuesday evening set Dec. 8 as a hard deadline for the three parties collaborating on a potential development, now known as the Lotus Plaza Project, to come back to the table. The rusty skeleton has not been touched since 2009. Many residents and council members have called the structure – which can be seen from the 22 freeway – an eyesore.

The project has long been mired in financial troubles, years-long litigation and a revolving door of development plans.

“We’ve given a lot of time,” said Mayor Bao Nguyen. “But we should give some more time. We’re going into the holiday season. Hopefully that does something for us.”

Cathay Bank, the money lender for the project, and developer Brooks Street say they want a mixed-use development to rise up on Garden Grove Boulevard and Brookhurst Street. But the Hoag Foundation, the property owner and a nonprofit supporting the Boys & Girls Clubs of Garden Grove, says it wants to pull out of the project and demolish the structure.

The City Council, though, does not want to see the development, first approved a decade ago as the Garden Grove Galleria, go to waste. It decided Tuesday to have the Hoag Foundation’s board reconvene before Dec. 8 and reconsider pulling out. If it does not, each council member said he will vote to enforce a demolition order that has been in place since 2013.

But officials for Hoag seemed reluctant to change positions.

William Grant, the president of the Hoag Foundation board of directors, said there are many reasons why the board no longer wants to work with Cathay or Brooks – but refused to mention any – apart from the more than $550,000 Cathay owes in legal fees.

Grant did agree to reconvene his board, but did not say whether that would change anything.

“It’s not just about the legal costs,”Grant said. “The Hoag board has wrestled with this. But we’ve run into nothing but road blocks.”

Once the council opts to enforce the demolition order, it would be at least six months until demolition could begin, acting City Attorney Omar Sandoval said.

Contact the writer: 714-741-3707 or chaire@ocregister.com