RALEIGH - The City Plaza planned for the south end of Fayetteville Street won't open until at least the first quarter of 2009, months after the new convention center opens.

City Manager Russell Allen said Raleigh still does not have the required easements to begin constructing the plaza, which has been touted as a high-tech gathering place that can be closed to cars and reconfigured to accommodate parades, markets or concerts.

Allen said the city is negotiating with The Simpson Organization, which owns the Bank of America building and the underground parking garage directly under Fayetteville Street. Raleigh has an existing agreement with Simpson, but it needs to be changed to allow for the creation of the plaza.

The cost of building the plaza is estimated at $21 million. Raleigh plans to run power lines, phone lines and water pipes under the plaza floor so merchants can set up shop temporarily.

Allen estimated it will take six to nine months to build the plaza.

Gil Hearn, an asset manager with Simpson, said his company hopes an agreement can be given to the City Council for approval next month. Hearn said Simpson is as eager as the city to make the agreement. The Atlanta-based company has agreed to build, own and lease four 1,000-square-foot glass retail pavilions on the plaza.

City officials had hoped to complete the plaza by September, when the new convention center is scheduled to open.