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Residents hoping to see the demolition of Oakdale's eyesore mall property this month will have to wait until the middle of next year.

After a dispute over title issues landed the city and the mall owner in Washington County District Court last month, city officials said a new sale date has been negotiated for March 31.

California-based property owner Joseph Kashani had agreed to sell the property to the city with an expected closing date in July 2010. But then the city received a notice of cancellation on the purchase agreement, according to Bob Streetar, the city's community development director.

The city asked a Washington County judge for a temporary restraining order against the owner to stop the cancellation. Streetar said the city and Kashani were able to renegotiate the terms of the purchase agreement in late November, and the new closing date is set for March 31.

Kashani confirmed the new closing date but declined to comment further. He said he does not own any other properties in the Twin Cities.

"We got it resolved and we're going to move forward," Streetar said.

As part of the renegotiations, the city will resolve the issues with the property title, he said, and will plat the property with Washington County and the Minnesota Department of Transportation.

The city has received multiple state grants to update the infrastructure around the mall property. It plans to resell the site to private developers.

Once the sale of the property closes, the city will start construction on the infrastructure projects. Demolition is tentatively scheduled for May or June.

Emma L. Carew • 651-735-9749