The city and the Laborers' International Union of North America have beat a provincial deadline to save the Lister Block.

With the Ontario government threatening to pull its $7 million in funding, city officials announced late on June 30 that a deal had been signed with LIUNA for the city to purchase the 84-year-old Lister Block for $25 million.

"We knew the $7 million was going to go away if we didn't do this," said Joe Rinaldo, acting city manager. "Nobody wanted to pass it up. The city was not going to walk away from the table."

Mr. Rinaldo said the deal includes a $1 million guarantee and a requirement that the city receive $600,000 in property taxes annually.

"This is an opportunity for us to work together," he said.

He said the agreement is the same one council approved at its June 25 council meeting. Mr. Rinaldo said the city sent the agreement to LIUNA the following day.

Over the weekend, discussions involving Mayor Fred Eisenberger, LIUNA officials and Warren Green of Hi-Rise Development took place. The agreement was signed late afternoon on June 30.

"The discussions involved general things," said Mr. Rinaldo.

Joe Mancinelli, vice-president of LIUNA's central and eastern regions, blasted council's decision last week, calling the guarantee a "deal breaker" and threatened to walk away from the table. He was even more pessimistic after councillors rejected a LIUNA compromise.

Mr. Mancinelli could not be reached for comment.

Ancaster-Dundas-Flamborough-Westdale Liberal MPP Ted McMeekin confirmed if the city failed to reach a deal with LIUNA the province would withdraw its funding.

"There will be no extensions," said Mr. McMeekin. "We already gave them one extension, and we also changed the conditions.

"If $25 million can't happen with provincial help, how in heaven will it happen?" added Mr. McMeekin. "You can only do so much."

Mr. McMeekin confirmed Mayor Fred Eisenberger contacted the premier soon after council's decision last week.

"There will be no extension of time," said Mr. McMeekin.

His advice to councillors and LIUNA officials to restore the Lister Block? "Suck it up. Make it happen."The money had been announced by Mr. McGuinty in June 2007, with the condition the city agreed to a 20-year lease with LIUNA instead of the original 15 years.

He also said the province will not provide the $7 million to LIUNA as part of its development plans.

"It would set a dangerous precedent," he said.

Councillors last week approved a deal that would force LIUNA to provide a $1 million guarantee and establish a $600,000 property taxes to the municipality as compensation for the city to purchase the 84-year-old historical building for $25 million.

Joe Mancinelli, vice-president of LIUNA's central and eastern regions, proposed a counter offer to the city on the day of the council vote. But councillors rejected the offer.

Mr. Mancinelli said based upon LIUNA's track record in developments and community reputation, it shouldn't have to put up a guarantee.

But last month councillors discovered the development had been scaled back to one tower from two, and it was unclear whether Kingsway Arms was going to be involved.

Mr. McMeekin confirmed The money had been announced by Mr. McGuinty in June 2007, with the condition the city agreed to a 20-year lease with LIUNA instead of the original 15 years.

Under the deal a city heritage consultant will be required to complete a heritage survey. By Oct. 15, LIUNA is required to provide to the city a site plan application, a heritage conservation strategy, heating and cooling plans, and various other issues. Both parties are scheduled to meet to resolve any difficulties.

By next June, a heritage and building permit will have to be obtain, and by July 2008 construction is expected to begin.Construction is expected to take until March, 2012.