The city has extended the agreement to sell the 1.7-acre Rolfite property to developer John Guedes, who plans to pursue a mixed-use development with the adjoining 1-acre Spongex site.
Guedes will get the Rolfite land in return for building a new road to connect Canal Street with Bridge Street, close to the Housatonic River.
Spongex will be turned into 47 residential units and a retail/office building will be constructed on the Rolfite land.
Guedes has done remediation work and is dealing with new flood plain requirements involving elevations. He also must get zoning approval for his plans.