St. Michael Community Development Director Marc Weigle told the Tuesday a deal for the former Cinemagic Theater could be in the works, and a purchase agreement is possible.
"We don't have a lot of details at this time, but we do know the broker is working with a buyer, and he feels like something could happen," Weigle said.
The property has been vacant since Cinemagic walked away from the building in September of 2010, allowing more than a dozen creditors to come into the theater and claim collateral, from theater seats to screens and other materials.
St. Michael Fire inspected the building with city staff recently and said the building is still in good shape and up to code.
Weigle said there is a lender doing "due diligence" with the possible buyer at this time.