COLONIE — Boston developers proposed Tuesday to replace Latham Circle Mall with an open-air shopping center.

Grossman Development Group representatives told the town Planning Board they were close to signing new tenants in their effort to revive the moribund retail location.

Plans include demolishing most of the mall by December to make way for the Shoppes at Latham Circle at 790 and 800 Loudon Road.

Construction would start by the spring on a new 372,646-square-foot retail area and two retail out-parcels totaling 16,000 square feet.

Board Chairman Peter Stuto said town officials wanted to work with the group.

"We're very, very excited about this," Stuto said. He asked developers to speak with mall neighbors to find out their concerns.

The proposal calls for retaining Lowe's and J.C. Penney as anchors, and keeping Regal theaters for at least two years.

The plan totals 631,759 square feet, or about 110,000 square feet less than the existing mall. The site would be redesigned with new facades and 339 more parking spaces. Total green space would be cut by nearly an acre.

A spokesman for the commercial development group said they wanted a mix of shops — a grocery component, restaurants, entertainment — at the site.

Developers told town planners they were negotiating contracts for two new tenants and had shown the site to a national family-style restaurant chain from Texas that would be new to upstate. They would not reveal names.

"We do not have anyone signed," said Mark Hebert, vice president of development for GDG. "But we've made significant progress."

GDG representatives told the board they wished to expedite the project and timing was very important.

They said prospective tenants had asked that all the curb cuts on the property remain. They are also seeking waivers for a few building requirements.

dyusko@timesunion.com • 518-454-5353 • @DAYusko