Developers of Mill Cove Landing have secured financing for their upscale condominium project and expect to close soon on the purchase of the Ocean Street site, according to builder Paul Leddy.

Leddy, partner in Leddy Houser Associates, said this week that his company will work with Bar Harbor Bank and Trust, a Maine lender, to finance the 27-unit waterfront condo project, which also will feature retail and office space, at 72 Ocean St.

The project will take up almost a full city block. The 39,000-square-foot, multi-use development is considered critical by downtown merchants to the economic future of the Knightville and Mill Creek business areas, which contain small retail shops, restaurants and offices.

Leddy and his partner, Peter Houser, say they hope to break ground this spring. The project was delayed when negotiations stalled on the purchase of the land, which is the former site of an auto repair shop.

But landowner Gino Bruzzese Sr., who ran Ocean Street Auto for 15 years, said the sale will be completed soon. Bruzzese has moved his auto repair shop to 699 Broadway, across from Newick’s Seafood Restaurant.

“I was going to give up on the idea of selling the land and move back to Ocean Street. But now the deal is going through,” Bruzzese said last week. “We just got the call from our attorneys, and we are signing the papers.”

Leddy also is pleased with the new progress on negotiations. He said the delay occurred as Bruzzese decided whether to become an investment partner in Mill Cove Landing.

Bruzzese said he later agreed to sell the land outright, and will not be a partner in the project.

“This is all part of doing business,” said Leddy on Monday. He added that Leddy Houser already has four purchase-and-sale agreements in hand for the Mill Cove Landing Development. There are two for condo units and two for the retail shops. The agreements are contingent on the project moving forward.

The Mill Cove luxury brick condos will range in price from $400,000-$600,000. Most of the units will have views of Mill Cove and Portland Harbor, with water access for canoes and kayaks. The developers plan to improve green space along the waterfront, as well as make repairs to an existing boat launch at the site.

The subdivision and site plan for Mill Cove Landing originally were approved by the South Portland Planning Board on Sept. 12, 2006.

The hangup in negotiations has been a temporary setback to the developers, Leddy said. But under city rules, the developers need to go back to the planning board and apply for an extension to the site plan, said Steve Puleo, community planner.

He noted that the developers have not made a “substantial start” in six months, as required under the site plan. Puleo said making a substantial start includes putting in a building foundation.

“The applicants need to amend their approval by the planning board to provide for an extension period,” he said Monday. The developers also will need to show title and interest to the parcel before construction can start.

At Current press time, Leddy said he expected to go before the planning board this week to obtain the required extension.

“Pete and I are appreciative of the city’s support for the project,” he said. Puleo said the builders have had good communication with the city.

Leddy, who grew up in South Portland and on Great Diamond Island, has pledged to build a quality project that will be an asset to the city and the Knightville-Mill Creek neighborhood.

“This will set the standard for years to come,” Leddy said. “There will be lots of brick and glass. We meet or exceed the gold standard for energy-efficient design.”

Leddy has been sending curious residents and businesspeople to the Mill Cove Landing Web site (www.millcovelanding.net) to view a rendering of the project and get details on plans for the condos and commercial space.

The two-bedroom, two-bathroom condos will boast 9-foot ceilings, gourmet kitchens, gas fireplaces and balconies with water views.

“We envision Mill Cove Landing integrating into the existing close-knit community and dovetailing with the progressive direction that is ahead for Knightville/Mill Creek,” Leddy and Houser note on their Web site.

Ocean Street condos going forwardOcean Street condos going forwardPeter Houser