It's expected Sarnia council will approve selling the Bayside Mall land Monday.
Seasons Retirement Communities owns the building and has offered the city $1-million for the land.
Mayor Mike Bradley says the transaction would really help the Oakville-based company.
"It helps the purchaser put together their financing and move forward," says Bradley. "The deal also protects the city interests though. If they were not to act on the redevelopment within a certain period of time, the city would have the right to repurchase."
He says there are a few other conditions in the sale agreement, like moving forward with the County of Lambton and their shared services facilities there.
Seasons is planning a $40-million development that would be done in two phases.
The first would see the complete renovation of the southern block, at Cromwell and Vidal Streets, start this fall with tenants -- including Lambton Shared Services -- relocating there by Christmas 2019.
The second phase see a 12-storey tower built on the north-west part of the property at George and Vidal Streets.