Four years ago — when times were good — a proposal was made to build a downtown retail and condominium tower as many as 27 stories tall.

There was one hitch. The city would have to do the environmental cleanup of the former gas station site.

Then Rick Gray became mayor. Sure, the city would do the environmental cleanup, the new mayor decided. And when it was done, there should be much more interest, instead of just the one bid.

But that was four years ago. Now — when times are bad — the city will try again to sell the property for development.

On Wednesday, Gray got word from the state Department of Environmental Protection that the site at West Chestnut and North Prince streets had been cleared for development.

A new "request for proposals," in which the city asks developers to submit plans for the site, likely will be issued by the end of February, said Randy Patterson, the city's Economic Development & Neighborhood Revitalization director.

"It's been a four-year process," Gray said of receiving the Act 2 environmental clearance from the state. "It will be interesting to see what happens now that we have that."

It was Gray's predecessor, Mayor Charlie Smithgall, who had requested proposals for the city-owned site at the close of his administration. The one proposal received was from architect John deVitry.

DeVitry was among the partners who built the Lancaster Arts Hotel, which opened in 2006, and has proposed a smaller boutique hotel in Columbia in recent years.

His proposal for the Arts Plaza Lancaster called for an oval building of as many as 27 stories at the corner location. The building would have street-level retail space and 32 upper-level condominiums. Each unit would be between 1,500 and 3,800 square feet and sell for $350,000 to $1 million.

DeVitry did not immediately return phone calls about whether he would dust off those plans.

Gray said no decision has been made about how the city will proceed with the property.

"Whether the economic conditions would bear that right now or whether it would be wise to just sit and wait, there are a lot of options," Gray said of the former tower condominium proposal.

"But the fact that this is completed, it will make it much more inviting in the future," Gray said of the environmental clearance.

The city acquired the site in 1999 after it had purchased an adjacent parking lot for the construction of a new police station. On the site was a gas station, and traces of leaked unleaded fuel were found in the soil. A later study found traces of chemical compounds consistent with leaded gasoline.

Monitoring wells determined that the contamination was very limited and within safe ranges, particularly because the city does not allow private wells, the DEP letter states.

The letter indicates the site meets statewide health standards and that the city or previous owners are not liable for further contamination.

Patterson said the city has few preconceptions about potential uses for the site. It would encourage retail or commercial space on the street-level, such as a restaurant or art gallery, and office, commercial or housing on upper floors, he said.

Because the site is in the central business district, there is a height restriction of 120 feet, or about 10 stories. Patterson said developers should not consider that a major obstacle. Variances can be sought to relax that rule, he said.

bharris@lnpnews.com