"We are optimistic that a deal will be reached," says MarkMatthews, principal at locally based Argent Group. "There appearsto be a congruence of interests between the parties." Matthewswould not comment on speculation that TrizecHahn might be taking upto a half interest in the proposal.

There has been a delay in getting the necessary TIF financingfor the Clybourn Tech Center, according to Matthews. In aninterview with Globest.com last month, Matthews said that heanticipated having between $10 million and $12 million in TIFfinancing in place by now. Matthews is now saying that he doesn'texpect to have TIF financing in place for at least another 60 days.Matthews also said at that time that he expected work to begin thisweek or next on the project. Matthews said Friday that Argent,which wants to redevelop the Artmark Building in partnership withthe technology subsidiary of area landowner Finkel Steel, has yetto close on the purchase of the Artmark Building.

If TrizecHahn goes ahead with the investment in Clybourn TechCenter, it would be among the first investments made by theCanadian developer following the firm's decision to recycle $1billion of properties in order to target investment in boomingtelecom hotel development. Evan Borris, an executive here withTrizecHahn, refused to comment on the negotiations with ArgentGroup.