"We are optimistic that a deal will be reached," says Mark Matthews, principal at locally based Argent Group. "There appears to be a congruence of interests between the parties." Matthews would not comment on speculation that TrizecHahn might be taking up to a half interest in the proposal.

There has been a delay in getting the necessary TIF financing for the Clybourn Tech Center, according to Matthews. In an interview with Globest.com last month, Matthews said that he anticipated having between $10 million and $12 million in TIF financing in place by now. Matthews is now saying that he doesn't expect to have TIF financing in place for at least another 60 days. Matthews also said at that time that he expected work to begin this week or next on the project. Matthews said Friday that Argent, which wants to redevelop the Artmark Building in partnership with the technology subsidiary of area landowner Finkel Steel, has yet to close on the purchase of the Artmark Building.

If TrizecHahn goes ahead with the investment in Clybourn Tech Center, it would be among the first investments made by the Canadian developer following the firm's decision to recycle $1 billion of properties in order to target investment in booming telecom hotel development. Evan Borris, an executive here with TrizecHahn, refused to comment on the negotiations with Argent Group.