The Gardner Co., which developed The Portico in Meridian, says it has signed a contract to buy the vacant site at 8th and Main streets in Downtown Boise known as "the hole."

Chief Operating Officer Tommy Ahlquist said Wednesday that Gardner has signed a contract to acquire the site at from Capps Holdings LLC. Capps, a Lake Tahoe, Calif. developer, acquired the property in 2009 in a foreclosure auction.

Ahlquist said a deal still depends upon successfully resolving numerous issues, including entitlements, whether the abandoned foundation must be replaced, and what type of development would be pursued.

“We wouldn’t be this far along if we weren’t optimistic,” Ahlquist said. “But we want to be realistic. It’s a fantastic location. We think Downtown Boise has a lot of upside.”

He said a final agreement is still several months away.

The company is conducting a feasibility study to determine what type of project it would pursue if an agreement is struck.

The Gardner Co. recently merged with Ahlquist Development. The two companies had previously worked as joint venture partners on several commercial development projects in the Treasure Valley.

Once home to the Eastman Building, the site has been vacant since 1987. For years, it as been no more than a hollowed-out pit with rebar, hidden from nearby streets by temporary walls decorated with murals. Former developer Rick Peterson had planned to build a 25-story tower there, but financial problems and litigation ended those hopes.