First Taxes, and then development!

The city's remaining mum on the matter.

St. Catharines Mayor Brian McMullan said negotiations remain at the staff level and nothing has been finalized by city council.

He did, however, acknowledge the general elements of the swap described by Donatelli.

Merritton is in dire need of a new fire station and the old town hall is in play.

McMullan said council is still awaiting the city's fire master plan. The plan, expected to be in council's hands next month, will presumably set out fire service priorities and make recommendations.

But it's no secret Merritton's needs are at the top of the list. And a new building on a large site would allow some operations to be relocated from the cramped central fire hall on Geneva Street.

As for the old town hall, McMullan said language in any real estate deal must make it clear that the heritage building will be properly maintained and remain standing "in perpetuity."

For his part, Donatelli is eager to get his hands on the building.

Although he can't take ownership of the hall and attached fire station until the new home for smoke-eaters is built, Donatelli hopes he doesn't have to wait that long.

"I'm asking permission to let me get in there sooner to clean it up and restore it because it looks pretty ratty right now," he said.

"The entranceways need to be done, the doors need to be cleaned up, the windows are all flaking. It needs to be sand-blasted or acid-washed to look more like The Keg. It's the same stone."

Meantime, Donatelli said he's close to signing a deal that would see a restaurant, Johnny Rocco's Italian Grill, move into the ground floor of his Lybster Mill building.

As well, he said he's negotiating with Best Western about locating a 65-room hotel in the building.

"They're very interested, they like the location," said Donatelli, adding his family would run the hotel.

Giving impetus to the Lybster Mill plans is the apparent interest of Sobeys to move ahead with its project.

"Now that Sobeys has kicked in, it gives me more reason to go ahead and do my project. (Sobeys) will bring a lot more action and stimulate that whole corner," Donatelli said.

No one from Sobeys returned my call, but there's been some earth-moving action on their Glendale Avenue property for a few weeks now.

And Paul Chapman, the city's planning director, said a site plan for Sobeys' project, which at this point involves a grocery store, liquor store and bank, should be approved either late next month or early January.

He also confirmed a site plan is about to be finalized to allow a restaurant at the Lybster Mill.

The red tape out of the way, both projects could go ahead in the new year.

"So that's good news for the city," said Chapman.