A California-based retail development company may be on the verge of purchasing the Totem Lake Malls property in Kirkland and begin a long-talked-about redevelopment put on hold by economic problems and legal troubles.

In anticipation of the purchase, the Kirkland City Council voted on Tuesday to extend the redevelopment agreement it approved in 2006. Centercal Properties, LLC requested the city do so in order to assure that it will retain the same development standards once the purchase is completed as well as the city’s commitment of $15 million for public improvements associated with redevelopment. The redevelopment agreement was set to expire this month.

While Centercal Properties was unavailable for comment, Planning Director Eric Shields said it is close to acquiring the property.

“My sense is that they are raring to go,” he said.

Though Centercal hoped to have acquired the property by February, the King County Tax Accessor still lists co-owners Coventry Real Estate Advisors and Developers Diversified Realty as the owners. Neither company has returned the Reporter’s request for comment.

Shields said once the property is purchased they will still have to go through a design review process for the project, and that the city has already approved an amendment to their conceptional development plan. Shields also said that the city is expected to make other amendments as part of the design review process.

Once the design review board approves the project, they will be able to obtain building permits.

At the council’s Jan. 6 meeting, Centercal President Jean Paul Wardy gave a presentation describing their vision for redeveloping Totem Lake Malls, which has remained relatively empty for years due to the economic downturn and litigation between the property owners. Their master plan would include creating pedestrian friendly areas along the street by 120th Avenue Northeast.

Wardy emphasized the importance of gathering spaces for shoppers, outdoor dining and a variety of unique tenants, which Wardy said is crucial for the project.

“It really boils down to tenants,” he said.

The amended conceptual master plan under Centercal envisions a redevelopment after demolishing and rebuilding most of the mall to include a public plaza featuring public art, benches and landscaping.

“The overall objective is to create a community center with a defined sense of place,” the master plan reads. Retail space would be leased to fast food, coffee shops, taverns, banks, fitness centers, hotels and a cinema in the upper mall. The existing Totem Lake Cinema features Bollywood films but recently added second-run films.

As for parking, the master plan calls for surface parking and other parking structures, with vehicle entrances to the mall from Totem Lake Boulevard, 120th Avenue Northeast and Northeast Totem Way. The master plan anticipates Metro Transit will add a bus stop along 120th Avenue Northeast, the location of a joint effort between the city and Centercal as part of a redesign in order to make it more friendly to pedestrians that could include more sidewalks and walkways.

In all, the mall is expected to include one million square feet of space.

Coventry Real Estate Advisors and Developers Diversified Realty purchased the Totem Lake Malls in 2004 from the California Public Employees’ Retirement System for $37 million, intending to redevelop the site. Instead, the site became entangled in a $500 million fraud lawsuit filed in New York state.

Wardy told the council Centercal is hoping to have their design approved this year and start construction in 2016, with an opening in 2017.

“Now I know you’ve heard these kinds of things before, but we’re hoping this time it’ll be different,” he said.

It is a sentiment that City Manager Kurt Triplett seemed to share with Wardy at the Jan. 6 meeting: “They have a great vision for what they want to do with the mall.”

According to figures provided by Centercal published in a Feb. 27 memo reviewing the fiscal analysis of the agreement, the first phase of their redevelopment is estimated to bring in roughly 1.4 million in sales tax revenue and a total tax revenue of $2.4 million, though BERK Consulting which contributed to the report had a smaller projection.

Economic Development Director Ellen-Miller Wolfe said the proposed project is a relief not just for the city but for the Totem Lake neighborhood.

“We’ve been waiting for a new developer to step up and purchase the property,” she said. “I would say we’re very excited about this. We’ve been waiting for a long time.”

Wolfe said they hope the redevelopment of the mall, a long-time eyesore for the community, will boost the hyperlocal economy for the neighborhood, as well as providing access to the nearby Cross Kirkland Corridor.

“Downtown is amenity rich, right down on the water,” she said. “Totem Lake is really relying on this development to bring amenities that are currently not available. In this case there would be space set aside for parks. There would be connectivity to the Totem Lake and ultimately to the Cross Kirkland Corridor. That’s the kind of desirable environment for development, and here we have that in this proposed mall.”

Businesses like My Home Furniture & Décor, which anchors the West Mall, is among those that hope to benefit from the redevelopment and increase in traffic. Barbara Jelly, the manager at My Home Furniture, said since they’ve moved to the mall three years ago they have been well received, but they rely primarily on foot traffic from their back doors, as the main entrance to the West Mall is mostly empty. She added she has met with Centercal and is impressed with other developments they’ve done.

“They’re seasoned developers,” she said. “They’re doing exactly what we want them to do. They seem to be a very savvy group. And I’m sure they will do whatever makes sense.”

Calls to Developers Diversified Realty seeking comment were not returned by deadline.