SALEM — The Boston developer chosen three years ago to transform the old Salem Jail into residences, a restaurant and a jail exhibit has been given another extension by the Salem Redevelopment Authority.
The deadline for New Boston Ventures to close on the sale of the St. Peter Street site has been moved from this month to the end of February, with construction scheduled to start by the end of March.
The SRA has given the developer a series of extensions, due largely to the difficulty it has had securing financing during a period of economic turmoil and a real estate collapse.
"This development is experiencing what every other development is experiencing," said SRA Chairman Michael Brennan. "Times are tough, and banks are cautious."
Brennan said he still considers this a "great project."
New Boston Ventures changed course a few months ago in order to get financing. Instead of selling condominiums, it now plans to rent 23 apartments that will be built inside the nearly 200-year-old jail, the jailkeeper's house and an old barn.
The developer has had to get approvals from the National Park Service in order to obtain the federal historic tax credits it needs for financing. Under the terms of the tax credits, the residences must remain as apartments for at least five years.
The Park Service made several small changes to the project, including one inside the jail. It is requiring the developer to salvage two jail cells and a staircase to use as part of the planned jail exhibit.
The Old Salem Jail project will include a restaurant, but those plans won't be finalized until after the closing, officials said.
"It's been a roller coaster, but we're absolutely committed to getting this done," said Penn Lindsay, the project manager for New Boston Ventures.
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