The former Borders building, located at Seventh and New Hampshire streets, in a file photo from 2012.

It has been clear for awhile now that a downtown grocery store at the former Borders site at Seventh and New Hampshire would be a big deal. After all, it would put a food bar that charges by the pound just feet away from my office. But now there are signs it could be an even bigger deal. It may bring a new grocery chain to town.

A member of the project’s development group has confirmed the large Kansas City-based chain of Price Chopper is interested in the downtown location. I’ve heard that for months now, but hadn’t gotten anyone to confirm it on the record. But Bill Fleming, an attorney with the development group that owns the former Borders site, has now confirmed that the group has been in discussions with Price Chopper.

We’ve also reported that the group has been in discussions with Lawrence-based Checkers to open a store on the site. There has been talk on the street that the development group — which is led by Lawrence businessmen Doug Compton and Mike Treanor — has made a decision to go with Price Chopper over Checkers.

“That is not accurate,” Fleming said. He said Checkers is still being considered for the location as well.

Fleming said the Price Chopper chain did present a different type of project to the group than what was being contemplated by Checkers. The Price Chopper group has proposed basically doubling the footprint of the old Borders building to about 40,000 square feet.

“They are the ones that came up with that initial idea,” Fleming said. “That doesn’t mean we couldn’t pursue something similar with Checkers, though. We’re looking at whether we could expand that footprint. There are advantages and disadvantages with that.”

Activity on this idea of a downtown grocery store is certainly heating up, but it is worth remembering that it is far from a done deal. I know that earlier this month the development group told commissioners that it was confident it would have a grocery store at the site. But there are still some significant issues to be worked out. Here’s a look at some:

• Neighbor approval. Fleming told me that in order to expand the footprint, individual owners of the Hobbs Taylor Lofts condo development next door to the site will have to approve of the idea. Covenants, or some such device, have been placed on the Borders property that give the Hobbs Taylor owners a say in whether that building will be expanded.

“Individual owners have to agree to that,” Fleming said. “They may or may not. We haven’t started to talk with them yet, so I don’t want to get the cart ahead of the horse.”

If the project were to stay at 20,000 square feet, owners of Hobbs Taylor would not have to approve. We have reported that there are covenants on the property prohibiting a grocery store use on the site, which would have to be waived by the Hobbs Taylor owners. Fleming said there is some such language, but it does not prohibit a gourmet food store. Depending on how you define a gourmet food store, that could be pretty similar to a grocery store.

“I don’t think it is an issue of whether a grocery store can go there,” Fleming said. “I think it could be about what type of grocery goes there.”

Fleming said getting that issue cleared up is an important matter because the development group very much favors a full-line grocery store with prices that would be attractive to the entire area.

• Height issues. Fleming confirmed that the development group is considering a plan that would build a multistory building at the corner so that apartments, in addition to the grocery, could be accommodated on the site. I didn’t get into the details with Fleming on these issues, but I’m assuming a larger building probably would involve an underground parking garage too. The height issue will be one to keep an eye on. Some of Compton and Treanor’s multistory buildings have proceeded pretty smoothly through the City Hall approval process. Others have faced opposition from neighbors.

• Financial incentives. Fleming confirmed that a downtown grocery store project is likely going to ask for some sort of financial incentives from City Hall, although he didn’t provide any details. Fleming said the group is seeking a New Markets Tax Credit, which is a federal program that invests in distressed areas. City Hall assistance, though, still may be needed.

“We are going to have to figure out what help we need from the city,” Fleming said. “We’re going to have to ask for their help, I suspect.”

As for the Price Chopper component to all of this, I do have a few details. The Price Choppers in Kansas City are owned by multiple families. Fleming confirmed the group has been talking with the Queen’s Price Chopper chain. That chain is run by Barry Queen. My understanding is Barry Queen grew up in Lawrence. I’m still working to get in touch with Queen. According to websites and media reports, Queen’s Price Chopper has been in business since 1974 and owns five Price Choppers in the Kansas City area, including in Overland Park, Bonner Springs, Paola and Spring Hill.

I’ve also got a call in to folks at Checkers to find out if they have any updates on their thoughts on the project.

Fleming said he expects the development group will make a decision on which grocery company to work with in the next couple of months.

• One housekeeping note: Town Talk will be off tomorrow. I’m talking with my banker about what line of credit I can get for a food bar that charges by the pound. I’ll be back on Monday.