The owners of the Cannon Knitting Mills are looking for buyers after years of failed attempts to land tenants in the vacant factory through a city partnership.

"He's testing the market waters right now," Coun. Jason Farr said over the weekend.

An Ambitious Realty sign went up on the historic 134 Mary St. building Saturday.

Forum Equity Partners, through a subsidiary, bought the knitting mills in 2011.

The Toronto-based developer also owns Hamilton Realty Capital Corporation (HRCC), a joint partnership with the city formed in 2006.

Under the agreement, Forum bought the Cannon Knitting Mills for $200,000, with the city loaning the developer half of that.

Glen Norton, the city's manager of urban renewal, said he's spoken with Forum to ask if it has plans for the 110,000-square-foot space at the corner of Cannon and Mary streets.

Forum agreed it's best to put the property on the market.

"I think it's the right thing to do," Norton said.

If the property sells, the city pays Forum 15 per cent in annual interest for the developer's share of money put toward the project under the 50/50 expense agreement.

Forum receives a full return of its principal while the city recoups its share. Anything left over after the sale, however, goes to the developer.

"The assumption is there will be something left over," Norton said.

Forum didn't respond to a request for comment over the weekend.

On Twitter, broker Derek Doyle said details of the listing will be available Monday.

Forum pays taxes on the property, but the city lends the developer half of that, Norton noted.

The city has dedicated about $185,000 for the Cannon Knitting Mills venture.

The city's 10-year agreement with Forum for the HRCC, a model that was meant to spur investment in the downtown area, expires in July.

The HRCC has touted the Cannon Knitting Mills for its adaptive reuse potential, with tours for potential tenants held there over the years.

The developer was looking for a couple of large tenants to occupy the sprawling space, Norton said.

"When you've got 110,000 square feet, it takes a lot of small tenants to fill up," he added.

The plant, which is made up of five buildings built between 1854 and 1950, has heritage and architectural value, Farr said.

"There's definitely interest right now in that building," the Ward 2 councillor said.

But as is, the derelict, old plant has stuck out "like a sore thumb" in Beasley, where a $2.5-million neighbourhood park revamp is in the works.

"It's a blight right now."

John Neary, who lives across Mary Street from the old plant, welcomes new ownership, given the lack of progress so far on the contaminated property.

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"The new owner could only be better."

Neary would like to see some kind of mixed use for the space.

Tearing it down would be a "wasted opportunity."

Farr said he'd be "very surprised" if a buyer purchases the building only to tear it down.

The city spent nearly $300,000 to create the HRCC, a cost that included a business plan and analysis of potential properties for redevelopment.

Council will have to decide whether to renew the HRCC partnership, Farr said, but suggested if the Cannon Knitting Mills is its sole asset, there's not much point.

"It's certainly something we'll debate, for sure."

Not much was happening downtown when the HRCC was created, Norton noted.

"However, there's a whole lot happening in the downtown without it."

It makes sense to "wrap up" the partnership, Norton said.

Neary says public dollars shouldn't be wasted subsidizing such a private enterprise.

"I think it was a very bad piece of municipal governance."

Farr, however, said the HRCC was a "prudent" move at the time of its creation.

"Let's put it this way: it was also good intentions. It just didn't come to fruition."

Coun. Chad Collins agreed, adding other city programs have been more successful in encouraging downtown development.

Norton expects to report to city councillors on the HRCC in early March.