The Downtown Redevelopment Authority is keeping its options open but is hoping to lease most of 601 State St. to the master developer of the downtown redevelopment district.

“They would be looking to do some office space and some restaurant space,” said DRA Director Cheryl Blaine. “And my understanding is that they would use the (taxing incremental financing) money for the renovations.”

Blaine said the DRA still would move its offices there, relocating from above Vitrage on College Street.

When that move occurs, however, will depend completely on negotiations with the developer, Blaine said, and how quickly such a deal would materialize is still being worked out.

City Commissioner Bruce Wilkerson, who is on the DRA board but has not been directly involved in the negotiations, is hopeful that a deal can be worked out.

“That was the purpose of the city giving the DRA the building,” Wilkerson said. “So they could have office space and ability to earn income on their own. So it’s important they find a good tenant.”

Even if that plan doesn’t work out, Blaine said, there are still other options.

“We still have a ‘for lease’ sign in the window,” she said.

Heather Age, the DRA deputy director, is still working with a company to potentially open a broad-based farmer’s market.

“We have several irons in the fire,” she said.

The company has just submitted a second revised application for grant funding to USDA.

“They wanted a feasibility study with the application,” Age said. “We are thinking that in September, we should get some word of funding.”

And if the deal is worked out with the downtown redeveloper, it still might be possible to have a farmer’s market space outside.

The building is about 20,000 square feet, with the intention of reserving about 3,000 square feet for DRA offices, Wilkerson said.

Several years ago, a grant of about $250,000 was received to stabilize the building and clean out the interior. But the space - built initially for Galloway Motor Company and then Quick Lincoln-Mercury - would need work for whatever it would be used for.

Even if none of the current plans work out, Blaine said she is confident that the space will find a tenant.

“With the baseball stadium under construction and everything else going on downtown, everyone is going to want to be downtown,” she said.

The building is adjacent to Circus Square Park, which opened this year and has hosted several successful concerts. It’s opening, however, has not been without hitches. City electricians are reworking some wiring at the park that has not been adequate to support all the vendors that wanted to operate during the concerts. That work is supposed to be complete before the International Festival, which is set for Sept. 27.

Meanwhile, work began this week on the filing station that also adjoins Circus Square. Mayor Elaine Walker said the contractor has 90 days to convert the historic station into restrooms for the park.