UTAH - Salt Lake City's new-urbanism epiphany -- fervently backed by Mayor Ralph Becker and the City Council -- appears to be catching static from an unlikely source.

Transit-oriented development isn't stymied by outdated zoning, unwilling developers or a lack of space. It turns out, banks, wedded to old-fashioned lending standards that stress parking, may pose the biggest blockade by denying financing.

The reason: Lenders operate from a tried-and-true principle that maintains more parking means less risk and a higher return on their investment. But ditching cars is the whole point of urban developers looking to create 24-hour live, work and play environments that hug light-rail hubs.

Take the capital's gateway district, which soon could be further revived by a North Temple TRAX train, a new viaduct and millions in streetscape upgrades. City leaders envision a walkable, vibrant mix of housing, retail, restaurants and offices that one day will bridge the FrontRunner hub and a new North Temple transit station along downtown's western rim.

But commercial investors, including one with a $100 million blueprint, complain banks cannot grasp the concept and instead slam their doors.

"It's an interesting dilemma," says Council Chairman Carlton Christensen. "In Portland [Ore.] they admitted it and said it took a number of years. For the first few projects, lenders had to have their hands held. The educational part is critical. We can help facilitate that."