The city of Seattle’s battle with the owner of the Showbox theater property appears to be over for now — with an agreement that would allow redevelopment of the site.

The city said Tuesday that it had settled a lawsuit over the property for $915,000. The owners, called 1426 First Avenue LLC, wanted to sell the property for redevelopment. But a popular movement to “Save the Showbox” sprang up, and the city put restrictions on the property by extending the boundaries of the Pike Place Market Historical District. The owners then sued for more than $40 million. They argued that the building hasn’t always been a music venue and has had a number of alterations over its 80 years. The city said the deal will pay the owners $915,000 and allow a third party to buy the property and rights to the “Showbox” name for $41.4 million.

But the draft agreement says the Landmarks Preservation Board must act by Dec. 18 to recommend to the City Council that no controls be placed on the property. And the current owners retain an option for redevelopment. “The focus of this situation is now appropriately with the Landmarks Preservation Board,” Seattle City Attorney Pete Holmes said in a statement. A third party isn’t named in the agreement. But last year a Vancouver, B.C.- based developer called Onni Group filed plans to build an apartment tower on the First Avenue site.

