NORTH CHARLESTON, S.C. - Despite a disagreement over loans, the ambitious $1 billion Noisette project to revitalize 3,000 acres in the core of North Charleston remains on track, developer John Knott and Mayor Keith Summey assured reporters on Thursday.

"There are no blueprints for the unique public-private partnership we have developed between the city and the Noisette Co.," said Knott, the company's chief executive officer. "We are breaking new ground here and our success depends on trust."

"What we have had here is a failure to communicate," Summey said, alluding to a line from the movie "Cool Hand Luke."

The Noisette project is "a wonderful opportunity - but every opportunity you have is going to have bumps in the road," the mayor said. "The city is committed to making this area of North Charleston a landmark development for the entire world to look at."

The controversy arose when Noisette, without the city's knowledge, recently borrowed $3 million on two of the most valuable office buildings at the old Charleston Naval Base. The city then demanded the company reimburse it $839,837.

The company later agreed to place $500,000 in an escrow account and open its books for review by outside auditors.

"Whether our contract required us to inform the city of these loans is something that our lawyers are working through," said Knott, who said the money was used for renovations on the two buildings.

"I do agree I should have kept the mayor and the council better informed of our efforts. I take full responsibility for that and I'll work harder to improve our communication," said Knott, known for his environmentally sensitive development of Dewees Island on the coast near Charleston.

Knott noted that Noisette has had a partnership with the city for four years.

"This is a highly complicated, multilayered endeavor and through it all a strong relationship with the community, city leadership and staff has been forged," Knott said.

Both men said a riverfront park on the Cooper River, one of the first major new developments of Noisette Project, should be finished on schedule by the Fourth of July.

The Noisette renewal project will reflect the concept of smart growth and encourage energy-efficient, environmentally sensitive homes in mixed-use neighborhoods.

The plan, named for noted local botanist Phillip Noisette, envisions building 3,000 homes at the north end of the old Charleston Naval Base.