Washington State University has halted ground-lease negotiations with a development company that had planned to redevelop the historic Jensen-Byrd building and surrounding properties on the WSU Spokane campus east of downtown.

Stacy Pearson, WSU’s Pullman-based vice president of finance and administration, said in a press release that the university is going back to the drawing board to develop a new master plan for the WSU Spokane campus to support fully the university’s recently accredited Elson S. Floyd College of Medicine.

The college will enroll its charter class of medical students in August.

“Growth necessitates we reconsider the best ways to use our limited resources to support our mission,” Pearson said.

The Jensen-Byrd complex, located on the south end of the WSU Spokane Campus, includes the six-story Jensen-Byrd building and attached structures on three parcels totaling 4.1 acres of land.

WSU last year selected Seattle-based Jensen Byrd Development LLC to redevelop the complex.

A Jensen Byrd Development representative couldn’t be reached for comment.

The company is headed by Dean Allen, CEO of McKinstry Spokane LLC, and Wally Trace, of Seattle-based Trace Real Estate Services.

A few months ago, McKinstry spokeswoman Kim Pearman-Gillman told the Journal that Jensen Byrd Development planned to begin construction this year on a $45 million, 300,000-square-foot, mixed-use development.

In the latest development plans, the Jensen-Byrd building was to have 40,000 square feet of main-floor retail space, a 14,400-square-foot rooftop conference center, and 60,000 square feet of indoor conference space.

As part of the development, a new four-story, 83,000-square-foot office building was proposed west of the Jensen-Byrd building, at the northeast corner of Main Avenue and Pine Street.

A 55,000-square-foot athletic wellness center with 3,000 square feet of retail space was planned on the east side of the Jensen-Byrd building.

The developers through an affiliated company last year bought for $1.1 million the 9,200-square-foot former Pacific Fruit & Produce warehouse building at the southeast corner of Main and Pine, on the block just south of the Jensen-Byrd building, where they had planned to develop a destination restaurant, retail center, and entertainment venue.

The Jensen-Byrd building originally was built for Duluth, Minn.-based Marshall-Wells Hardware Co.

Spokane hardware distributor Jensen Byrd Co. bought the building in 1958. The nonprofit WSU Foundation bought the property in 2001 and transferred it to WSU in 2004.

The long-vacant Jensen-Byrd building, which at one time was slated for demolition, has been at the center of at least two earlier failed attempts at private development.

WSU had briefly explored selling the property in 2011.