The Phoenix Center parking deck and rooftop amphitheater was built in the 1980s and touted then as the beginning of the city's comeback. Now in need of costly renovations, it has been more of a burden to the city than an asset.

Waterman has supported selling the Phoenix Center to BoonEx. The company has also struck a deal to purchase the Ottawa Towers in a related deal.

The city has been tied up for several years in lawsuits with the owners of Ottawa Towers — Michigan-based Ottawa Tower II LLC and North Bay Drywall Inc. Profit Sharing Plan and Trust. The lawsuits center on the city's bid to demolish the Phoenix Center.

The deal would offer several benefits for a city trying to emerge from troubled times, Waterman said. BoonEx would pay the city $3 million for the structure, Waterman said, putting an end to the city's ongoing litigation. Pontiac would also save $2 million in demolition costs, she said. Finally, BoonEx would help breath new life into the city and help establish it as an up-and-coming tech hub, Waterman said.

Birmingham-based technology-investment company Mad Dog Technology, founded by Compuware Corp. co-founder Peter Karmanos Jr., recently took 15,000 square feet of space in the historic Riker Building in downtown Pontiac for three of its companies.

Oakland County Treasurer Andy Meisner said Thursday before the council meeting that he agreed the deal could be huge for the city as it would resolve the paralysis of the Phoenix Center cause by "ill-fated decisions to triple down on legal action."

Going into Thursday night's meeting, the deal would give the city 25 percent of parking revenue from the center as well as access to the rooftop amphitheater and parking 12 times a year free of charge, Waterman said. Because the city uses it less than that now and has been losing money on it for years, the mayor said, it only makes sense to sell.

At the same time, Meisner said he encouraged a cautious approach. Fire sale deals done by the city — most infamously with the Silverdome, purchased for $583,000 in 2009 by Triple Investment Group — have resulted in blight, an outcome to be avoided this time around.

"I would urge the use of a development agreement to set mutual milestones and binding agreements and ensure transparency and accountability," Meisner said, adding that assurances of local hiring would be a plus.

"Based on what I know, I'd take the deal as long as there is due diligence in making sure all interests are aligned."