PORTLAND — A City Council committee has approved the sale of seven lots in Bayside to a private development company, which is planning a large parking garage and retail, office and housing developments.

The Community Development Committee on Wednesday night backed the purchase-and-sale agreement for 3.25 acres of land for $2.3 million to The Federated Companies. Six of the lots are on Somerset Street and the seventh can be accessed by Elm Street.

City officials said the sale and development will extend the revitalization of Bayside. Most of the development in the past four years has been on Marginal Way, which runs parallel to Somerset Street.

The sale agreement carries several provisions intended to make sure The Federated Companies develop the lots relatively quickly. The city retained the right to buy back the property at the same price if The Federated Companies fails to start construction within two years of getting city permits.

The deal also mandates that a 500-car garage be built first. Officials of The Federated Companies said the mixed use development will probably consist of first-floor retail space, second-floor parking and housing or office units above that.

The purchase-and-sale agreement will now go to the full council for a vote, most likely at the next meeting on June 6.