The Grand Avenue project, the massive mixed-use development near Walt Disney Concert Hall, is being delayed again as a result of the tight credit markets, developer Related Cos. announced late Monday.

The New York City-based company said construction is now expected to begin Feb. 15, which would result in the development’s first phase not being completed until 2012.

Related cited the need to complete construction drawings before it can secure a construction loan, noting that its previous intent to secure the loan with partial drawing was not viable in the current credit market.

“Construction documents and pricing are currently essential to seek a construction loan,” Related stated in the release. Those documents are now expected to be completed by fall, allowing construction of the project’s first phase to begin in February.

The 3.6 million-square-foot project has been delayed several times since fall 2007. However, Related appeared to clear a significant hurdle earlier this year when it secured $100 million in equity financing from Istithmar, the investment vehicle of Dubai’s royal family.

The $1 billion first phase will include a Mandarin Oriental Hotel, retail space and apartments and condos. It also includes a 16-acre civic park, which is expected to break ground in spring 2009. The park is still slated for completion in 2011.