TOPSHAM – A Massachusetts-based developer spoke with members of the Planning Board last week about building a new retail center near the Topsham Fair Mall.

The project would occupy the 25-acre site formerly earmarked for a new Wal-Mart. It’s being explored by Atlantic Development of Hingham, Mass., which recently entered into a long-term agreement to purchase the property.

“I can’t comment at all about which retailers we’re talking to,” said Atlantic President D.J. MacKinnon. “We’re talking to a number of them, and we’re under confidentiality agreements with them all. But I’m encouraged that within the next couple of months we’ll come forward with a proposal.”

Although MacKinnon is keeping mum, several other business people have said they’ve heard negotiations are under way with Target department store. A Target spokeswoman will only say that they explore between 200 and 300 sites per year for new stores, but will not confirm ongoing negotiations.

MacKinnon spoke informally with members of the Planning Board at the Aug. 17 meeting. He said he first learned of the site when he was contacted by Topsham economic development people last spring.

“They gave us a sense of available sites,” he said. The former Wal-Mart lot had its infrastructure ready and traffic plans approved. It also had good visibility from the highway.

The success of neighboring Home Depot also played a part in his decision, said MacKinnon.

“Home Depot’s done very well there,” he said. “They’re very pleased with the (Topsham) store. I believe they’re running ahead of projections.”

MacKinnon said he had not explored any options in Lewiston and Auburn, but would consider them in the future.

“It depends on the market and a number of factors, but we’d be happy to look at land in the L-A area,” said MacKinnon. “We’re always looking for potential development.”

The Topsham parcel is already zoned for commercial use and has nearly all the necessary permits for a retail center. Only an environmental permit has expired since Wal-Mart announced its decision last August to pull out of the Topsham site and invest in its Brunswick store instead.

The lot was approved for a 204,000-square-foot retail center.

It’s the first major development since the town approved a tax increment financing district for that area near Interstate 295 last spring. The district includes about 250 acres on both sides of Route 196, west of the highway.

At a May town meeting, voters approved a plan to take the tax revenue from that district and use it to extend and enhance the area’s infrastructure. David Fuller, executive director of Topsham Development Inc., said the town expects that $400,000 in tax revenues will be generated by the TIF district this year, to be used for continuing projects and future developments.

Ironically, there are no tax incentives involved with the Atlantic Development project, because the infrastructure already exists. But they could come into play with two large lots adjacent to the Atlantic property.

In June, a 17-acre lot and an 11-acre lot were sold by Bruce Allen of Harpswell to R.E. Management, which has offices in Brunswick and Freeport. Fuller said he believes the new owner is interested in retail development also, but the lots would need to have sewer, water and power extensions.

They would also need a traffic mitigation plan. Those are the sorts of things the TIF money could be used for, said Fuller, if town meeting approved.

“Our philosophy is to stay one step ahead of the developers,” said Fuller.

Although interest in the district so far has come from retailers primarily, Fuller said the town is looking for mixed use, including office buildings and light manufacturing. Other projects under way in the district include a self-storage facility next to Home Depot and a coffee franchise and bank near the Wendy’s and McDonald’s.