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SOMERVILLE, MA-A proposed land swap that could end a seven-year stalemate and bring a new Ikea store and a mixed-use development project to the city’s Assembly Square neighborhood is being ironed out between the Swedish furniture giant and another landowner, a city official tells GlobeSt.com.

Mark Horan, communication director for the City of Somerville, tells GlobeSt.com that the proposed swap between Ikea and Federal Realty Investment Trust would move the future Ikea store away from the banks of the Mystic River and allow Federal Realty to build more than 3,000 residential units, offices and ground-floor retail space on about17 acres Ikea currently owns along the river’s waterfront. In exchange, Ikea would get a similar-sized parcel in the Assembly Square area behind Circuit City and Home Depot, adjacent to Route 95.

A spokesman for the furniture retailer declined to confirm the proposed land swap, telling GlobeSt.com that “we have the land, we have the approvals and we no longer have an urgent need to open the store. We can wait it out. We are confident our position will prevail.” He says last week’s opening of the first Ikea store in the Boston area, located in Stoughton, has lessened the pressure on the firm to respond from pressure by several community groups in Somerville. He did, however, say that Ikea was “in discussions with some land brokers about opportunities.”

City officials and residents have been opposed the Swedish furniture chain’s plans to build on the waterfront land, arguing that the site should be saved for denser uses. Opponents to the project have filed three lawsuits against the Swedish furniture maker, holding up construction on the project for the past three years–ever since Ikea won city approval of the concept. One of those cases filed by a group called the Mystic View Task Force appealed the city’s decision to issue a building permit but the state’s land court recently dismissed that case. Two other lawsuits opposing the Ikea project on environmental grounds are still pending but could be dismissed if the land swap occurs.

“This is not about answering the Mystic View Task Force,” Horan says of the land swap proposal. “It has more to do with Federal Realty coming in, buying the property, taking a fresh look at it and talking to Ikea about making a shift.”

Maryland-based Federal Realty Investment Trust declined comment on the land swap proposal.

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