NEW YORK CITY-City officials are nearing a decision to select a developer for a rundown swath in Willets Point, but significant changes to the redevelopment plan for the neighborhood are also afoot, according to people familiar with the matter. Sources told the Wall Street Journal that developers the Related Cos. and Sterling Equities, a real estate firm affiliated with the New York Mets owned by Fred Wilpon, are in discussions with the Bloomberg administration to develop a new shopping mall and residential space for the 62-acre site along the Flushing River.

But the developers, the article said, are pushing for more revisions to the city’s ambitious $3 billion, 5,000 unit plan, requesting a reduction in the amount of apartments in favor of more retail space for phase I of the project, which involves the redevelopment of the initial 12.7-acre parcel adjacent to Citi Field. However, a spokeswoman for Related declined to comment to GlobeSt.com about the issue, and a spokesman for Sterling referred all inquires to the New York Mets corporate communications department.

If an agreement is reached, Related would need to gain approval through the City Council, which would most likely occur after Bloomberg’s term is complete in 2013. At the same time, the neighborhood, known for its scrap yards and auto repair shops, presents land use and environmental challenges. Formerly utilized as an ash dump for passing railroad cars, Willets Point—which contains no underground sewer system—was rezoned by the council in 2008 to allow mixed-use development.