LONGMONT — The clock is ticking for Twin Peaks Mall developer Allen Ginsborg.

By March 1, Ginsborg's company, Fort Collins-based NewMark Merrill Mountain States, must sign an agreement with department store chain Dillard's Inc. on a redevelopment plan, according to a schedule laid out by the city of Longmont.

Dillard's can prohibit any new development on the mall site, based on an agreement between the retailer and mall owners that was signed several decades ago, Ginsborg said. The good news, according to Ginsborg, is that Dillard's representatives have said the company wants to continue to operate at the site.

Dillard's spokeswoman Julie Bull in Little Rock, Ark., offered only a "no comment" when asked about negotiations.

Ginsborg hopes to demolish the 550,000-square-foot mall at 1250 S. Hover St. and create an outdoor shopping village that will include a new movie theater, a natural-foods grocery store, a separate 100,000-square-foot retail store and other stores and amenities.

“We have worked hard on it for a year,” Ginsborg said of negotiations. “To deliver the project for Christmas of 2014, it's important that we come to some understanding with Dillard's.